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HomeMy WebLinkAboutJune 2, 2009 Agenda AGENDA CITY OF DENTON CITY COUNCIL June 2, 2009 After determining that a quorum is present, the City Council of the City of Denton, Texas will convene in a Work Session on Tuesday, June 2, 2009 at 1:00 p.m. in the Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: 1. Receive a report, hold a discussion and give staff direction regarding the Five Year Financial Forecast. (1:00 p.m. - 3:00 p.m.) (Note: Should discussion on this item be completed before 3:00 p.m., Council will proceed to the next agenda items.) 2. Requests for clarification of agenda items listed on the agenda for June 2, 2009. 3. Receive a briefing, hold a discussion and give staff direction on the proposed amendments to Subchapters 6, 12 and 13 of the Denton Development Code (DDC) to clarify standards and regulations regarding Specific Use Permit (SUP) revocation, yard measurements, accessory buildings and structures general regulations, expansion applicability, preservation and mitigation requirements for in-fill lots, light and glare performance requirements, and site development requirements for residential buildings. This is a staff initiated Code amendment. (DCA08-0002) On September 24, 2008, the Planning and Zoning Commission conducted a public hearing and recommended approval of the proposed amendments (6-0). Following the completion of the Work Session, the City Council will convene in a Closed Meeting to consider specific items when these items are listed below under the Closed Meeting section of this agenda. When items for consideration are not listed under the Closed Meeting section of the agenda, the City Council will not conduct a Closed Meeting and will convene at the time listed below for its regular or special called meeting. 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, as set forth below. 1. Closed Meeting: A. Consultation with Attorneys - Under Texas Government Code Section 551.071. 1. Receive a legal briefing from the City's attorneys and discuss legal obligations and options facing the City, under a certain compromise settlement agreement and mutual release of claims, dated October 21, 2008, involving the City of Denton, Texas, INC Partners Denton, LLC, White Cake Denton, L.P., John Lau, and Campbell Road Holding Company as parties. 2. Receive information from and consult with the City's attorneys regarding amendments to the City of Denton Code of Ordinances, Ch. 26 relating to water and sewer service line extensions and costs associated therewith. A public discussion of these legal matters would conflict with the duty of the City's attorneys to the City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. City of Denton City Council Agenda June 2, 2009 Page 2 3. Receive information from and a consultation with the City's attorneys regarding the status of two of the pending TMPA-related cases which include: Texas Municipal Power Cily of Bryan, et all Cause No. 28,169, in the 506' Judicial District Court in and for Grimes County, Texas, and Ex Parte Texas Municipal Power Agency, Cause No. D-1-GN- 08-003426, in the 250th Judicial District Court in and for Travis County, Texas; discuss, deliberate, and provide direction to the attorneys and staff regarding such litigation. A public discussion of these legal matters would conflict with the duty of the City's Attorneys to the Public Utilities Board under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. (Michael Copeland) 4. Receive information from and consult with the City's attorneys on legal issues relating to appeals of costs assessed pursuant to the city's nuisance abatement procedures. A public discussion of these legal matters would conflict with the duty of the City's attorneys to the City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. B. Consultation with Attorneys - Under Texas Government Code Section 551.071; Discussion by representatives of the City regarding meet and confer negotiations - Under Local Government Code Section 142.063 1. Consultation with the City's Attorneys, and receipt of legal advice, regarding potential bargaining issues to be raised by management team representatives during Meet and Confer negotiations with the Denton Police Officers Association and Denton Fire Fighters Association, pursuant to Texas Local Government Code Sec. 142.051 and 142.101 et seq. A private caucus on this topic is specifically authorized by Texas Local Government Code 142.063(b) and 142.113(b), and public discussion would otherwise conflict with the duties of the City's attorneys to maintain confidential communications with the City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. C. Deliberations regarding Real Property - Under Texas Government Code Section 551.072; Consultation with Attorney - Under Texas Government Code Section 551.071. 1. Discuss, deliberate and receive information from staff and provide staff with direction pertaining to the grant of an easement for the construction, maintenance and operation of a rail line within the Denton Rail Corridor to the Denton County Transportation Authority (DCTA), the limits of said corridor being all that certain lot, tract or parcel of land described in that certain Quitclaim Deed from Missouri Pacific Railroad Company to the City of Denton, Texas dated August 9, 1993, and filed on August 24, 1993, as Clerk No 93-R0058485 in the Real Property Records of Denton County, Texas; and also being that same property described in that certain Correction Quitclaim Deed, dated June 1, 2001 and filed for record in the Real Property Records of Denton County, Texas as Volume 4857, Page City of Denton City Council Agenda June 2, 2009 Page 3 020211 where such deliberation in an open meeting would have a detrimental effect on the position of the City Council in negotiations with DCTA. Consultation with the City's attorneys regarding legal issues associated with the granting of said easement above described where a public discussion of these legal matters would clearly 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. ANY FINAL ACTION, DECISION, OR VOTE ON A MATTER DELIBERATED IN A CLOSED MEETING WILL ONLY BE TAKEN IN AN OPEN MEETING THAT IS HELD IN COMPLIANCE WITH TEXAS GOVERNMENT CODE, CHAPTER 551, EXCEPT TO THE EXTENT SUCH FINAL ACTION, DECISION, OR VOTE IS TAKEN IN THE CLOSED MEETING IN ACCORDANCE WITH THE PROVISIONS OF §551.086 OF THE TEXAS GOVERNMENT CODE (THE `PUBLIC POWER EXCEPTION'). THE CITY COUNCIL RESERVES THE RIGHT TO ADJOURN INTO A CLOSED MEETING OR EXECUTIVE SESSION AS AUTHORIZED BY TEX. GOV'T. CODE, §551.001, ET SE Q. (THE TEXAS OPEN MEETINGS ACT) ON ANY ITEM ON ITS OPEN MEETING AGENDA OR TO RECONVENE IN A CONTINUATION OF THE CLOSED MEETING ON THE CLOSED MEETING ITEMS NOTED ABOVE, IN ACCORDANCE WITH THE TEXAS OPEN MEETINGS ACT, INCLUDING, WITHOUT LIMITATION §551.071-551.086 OF THE TEXAS OPEN MEETINGS ACT. Regular Meeting of the City of Denton City Council on Tuesday, June 2, 2009 at 6:30 p.m. in the Council Chambers at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: 1. PLEDGE OF ALLEGIANCE A. U. S. Flag B. Texas Flag "Honor the Texas Flag - I pledge allegiance to thee, Texas, one state under God, one and indivisible." 2. PROCLAMATIONS/PRESENTATIONS A. Proclamations/Awards 3. CONSENT AGENDA Each of these items is recommended by the Staff and approval thereof will be strictly on the basis of the Staff recommendations. Approval of the Consent Agenda authorizes the City Manager or his designee to implement each item in accordance with the Staff recommendations. The City Council has received background information and has had an opportunity to raise questions regarding these items prior to consideration. Citizens may speak on items listed on the Consent Agenda. A Request to Speak Card should be completed and returned to the City Secretary before Council considers the Consent Agenda. Citizen comments on Consent Agenda items are limited to three minutes. Listed below are bids, purchase orders, contracts, and other items to be approved under the Consent Agenda (Agenda Items A - P). This listing is provided on the Consent Agenda to allow Council Members to discuss or withdraw an item prior to approval of the Consent Agenda. If no items are pulled, Consent Agenda Items A - P below will be approved with one motion. If items are pulled for separate discussion, they may be considered as the first items following approval of the Consent Agenda. City of Denton City Council Agenda June 2, 2009 Page 4 A. Consider a request for an exception to the Noise Ordinance for the purpose of performing live jazz music during the grand opening of the Sweet Y Cafe and Catering. The event will be held at 511 Robertson Street on Friday, June 20, 2009, beginning at 7:30 p.m. and concluding at 11:00 p.m. The request is to extend the hours of operation one hour, from 10:00 p.m. to 11:00 p.m., for the evening concert. There is not a request to increase the decibels. The amplified sound will remain at the allowable 65 decibels. B. Consider adoption of an ordinance accepting competitive bids and awarding an annual contract for the purchase of various sizes of traffic poles for the Traffic Control division; providing for the expenditure of funds therefor; and providing an effective date (Bid 4305-Annual Contract for Traffic Signal Poles awarded to Structural and Steel Products, Inc. in the annual estimated amount of $750,000). C. Consider adoption of an ordinance awarding a 36-month contract for the lease of production printing equipment for the Reprographics Division as approved by the State of Texas General Services Commission through a Texas Association of School Boards (TASB) catalogue; providing for the expenditure of funds therefor; and providing an effective date (File 4307-Lease of Production Printing Equipment to IKON Office Solutions, Inc. in the annual amount of $90,372 for a 36-month total amount of $271,116). D. Consider adoption of an ordinance accepting competitive bids and awarding a public works contract for the construction of the Mulkey Street Sanitary and Storm Sewer Replacement; providing for the expenditure of funds therefor; and providing an effective date (Bid 4281-awarded to the lowest responsible bidder meeting specification, Dowager Utility Construction, LTD in the amount of $226,920). The Public Utilities Board recommends approval (6-0). E. Consider adoption of an ordinance accepting competitive bids and awarding a public works contract for the construction of curb, gutter, and driveway structures and radiuses on La Paloma Drive; providing for the expenditure of funds therefor; and providing an effective date (Bid 3516-awarded to the lowest responsible bidder meeting specification, Floyd Smith Concrete, Inc. in the amount of $123,571.09). F. Consider adoption of an ordinance of the City of Denton, Texas providing for, authorizing, and approving the expenditure of funds for the repair of a Caterpillar Model 826G Compactor for the City of Denton Solid Waste department from Holt Cat which is available from only one source in accordance with the pertinent provisions of Chapter 252 of the Texas Local Government Code exempting such purchases from the requirements of competitive bidding; and providing an effective date (File 4321-Repair of Compactor at Landfill in an amount not to exceed $238,000). The Public Utilities Board recommends approval (6-0). G. Consider adoption of an ordinance of the City of Denton, Texas providing for, authorizing, and approving the expenditure of funds for the purchase of hazardous materials chemical detection equipment for the City of Denton Fire Department City of Denton City Council Agenda June 2, 2009 Page 5 from BST Technologies which is available from only one source in accordance with the pertinent provisions of Chapter 252 of the Texas Local Government Code exempting such purchases from the requirements of competitive bidding; and providing an effective date (File 4320-Purchase of Chemical Detection Equipment for Fire Department in the amount of $112,782.50). H. Consider approval of the minutes of: April 6, 2009 April 7, 2009 April 14, 2009 April 21, 2009 May 4, 2009 May 5, 2009 May 19, 2009 1. Consider adoption of an ordinance approving an Easement Abandonment Agreement between the City of Denton, and Holigan Land Development, Ltd., a Texas limited partnership; giving the City Manager the authority to execute the Easement Abandonment Agreement, and effectuate the terms of the Agreement, which will abandon of a portion of the City of Denton's interest in three sanitary sewer line easements, being obtained by the City from L.C. Dupree, and wife, Stella M. Dupree, Volume 464, Page 179, Thomas Cain, and wife, Clara Etta Cain, Volume 464, Page 172, and Andrew Corporation, an Illinois Corporation, Volume 1123, Page 407, all being recorded in the Denton County Real Property Records, Denton, Texas; provided however, that said abandonment shall only be effectual as to that certain tract of real property being legally described as Lot 3, Block A, of Flowers Food Addition, an addition to the City of Denton, Denton County, Texas, according to the conveyance plat thereof recorded in Cabinet W, Page 335 of the Plat Records of Denton County, Texas; and providing an effective date. The Public Utilities Board recommends approval (6-0). J. Consider adoption of an ordinance of the City Council of the City of Denton, Texas authorizing the City Manager to execute a Second Amendment to Agreement for Professional Legal Services with the law firm of Walker Sewell, LLC. For Professional Legal Services relating to litigation styled: Texas Municipal Power Agency vs. City of Bryan, Texas Cause No. 28,169 pending in the 506th Judicial District Court in and for Grimes County, Texas; Ex Parte Texas Municipal Power Agency, Cause No. D-1-GN-08-003426, now pending before the 250th Judicial District Court in and for Travis County, Texas; authorizing the expenditure of funds therefor; and providing an effective date. The Public Utilities Board recommends approval (6-0). K. Consider adoption of an ordinance of the City of Denton, Texas, abandoning and vacating those certain street right-of-way tracts of land being approximately 0.037 acre and 0.037 acre, respectively, and being portions of the right-of-way of Pacific Street, in the W. Loving Survey Abstract Number 759 in the City of Denton, Denton County, Texas; accepting a public access, fire lane and public utility easement grant; providing for quit claim assignments of the Pacific Street right-of-way tracts; and providing an effective date. City of Denton City Council Agenda June 2, 2009 Page 6 L. Consider adoption of an ordinance of the City of Denton, Texas approving a lease agreement between the City of Denton, Texas and ARG East Hickory Partners, LLC. for the lease of a portion of land located at the southwest corner of East Hickory and Industrial Streets, being situated within the H. Sisco Survey, Abstract Number 1184 and being described as a part of Lot 3, Block 20 of the original Town of Denton, for the construction, occupancy and maintenance of an outdoor patio; and providing an effective date. M. Consider adoption of an ordinance of the City of Denton, Texas delegating authority to the Municipal Court Judge or Assistant Judges in their capacity as magistrates to hear appeals under Section 17-113 of Chapter 17 "Property Maintenance Code" of the Code of Ordinances of the City of Denton regarding costs imposed for abatement of nuisances; and declaring an effective date. N. Consider adoption of an ordinance authorizing the City Manager to execute a contract for professional legal services with Denton, Navarro, Rocha & Bernal for legal services related to Meet and Confer bargaining issues, pursuant to Texas Local Government Code Sections 142.051 through 142.119; authorizing the expenditure of funds in an amount not to exceed $150,000; and establishing an effective date. 0. Consider adoption of an ordinance authorizing the City Manager, pursuant to his executive authority, to act upon options and obligations arising under a certain compromise settlement agreement and mutual release of claims, previously approved by Council on October 21, 2008, involving the City of Denton, Texas, INC Partners Denton, LLC, White Cake Denton, L.P., John Lau, and Campbell Road Holding Company as parties, and declaring an effective date. P. Consider adoption of an ordinance of the City of Denton, Texas, approving and authorizing the City Manager to execute a Second Amendment to a Development Agreement dated June 17, 2008, between the City of Denton, Texas and Allegiance Hillview, L.P., as well as an associated amendment to an Irrevocable Standby Letter of Credit, both of which are related to construction of improvements on U.S. Highway 380, in the vicinity of U.S. Highway 380, between Interstate Highway 35 and Bonnie Brae Street; and approving an effective date. 4. PUBLIC HEARINGS A. Hold a public hearing and consider adoption of an ordinance amending the Water Conservation and Drought Contingency Plan of the City of Denton previously enacted by the City Council in Ordinance No. 2005-121 on the 19th day of April, 2005; and as previously amended by the amended water conservation and drought contingency plan in Ordinance No. 2006-127 on the 2nd day of May, 2006; further amending the Water Conservation and Drought Contingency Plan in accordance with the requirements of the law; adding a section to the conservation plan addressing two best management practices recommended by the Texas Water Development Board, to include park and athletic field water conservation; City of Denton City Council Agenda June 2, 2009 Page 7 and providing penalties for violations thereof, providing a criminal penalty not to exceed $2,000 per violation; providing a civil penalty not to exceed $1,000 per day per violation and providing civil legal remedies for the City of Denton, Texas; providing a savings clause; providing a severability clause; and providing an effective date. The Public Utilities Board recommends approval (5-0). 5. ITEMS FOR INDIVIDUAL CONSIDERATION A. Tabled - Consider adoption of an ordinance of the City of Denton, Texas approving an interlocal cooperation agreement and granting an easement to the DCTA on the Denton Branch Rail Trail for the purpose of building a public commuter rail line; and declaring an effective date. The Mobility Committee recommends approval (3-0). (Tabled from March 3, 2009) B. Consider approval of a resolution by the City of Denton, Texas, authorizing the City Manager to sign and submit to the Department of Housing and Urban Development a 2009 Action Plan for Housing and Community Development with appropriate certifications, as authorized and required by the Housing and Community Development Act of 1974, as amended and the National Affordable Housing Act of 1990, as amended; and providing for an effective date. C. Consider adoption of an ordinance of the City of Denton, Texas amending the Fiscal Year 2008-09 Budget and Annual Program of Services of the City of Denton to allow for an adjustment to the Airport Gas Well Fund of one million three-hundred thousand dollars ($1,300,000) to provide for costs associated with runway construction, construction of a southeast taxiway, security fencing, drainage improvements, radar installation and improvements to Wolfe Road; declaring a municipal purpose, providing a severability clause; an open meetings clause; and an effective date. D. Consider adoption of an ordinance authorizing the City Manager to execute on behalf of the City of Denton an Airport Project Participation Agreement with the Texas Department of Transportation Aviation Division relating to certain runway improvements at the Denton Municipal Airport; authorizing and directing the City Manager or his designee to expend funds as provided for in said agreement and to implement the project; and declaring an effective date. The Airport Advisory Board recommends approval (7-0). E. Citizen Reports 1. Review of procedures for addressing the City Council. 2. Receive citizen reports from the following: a) Karen McCormick regarding the preservation of Ector Street. b) Jordan Hudspeth regarding concerns of Southeast Denton. c) Lanisha Hudspeth regarding concerns of Southeast Denton. d) Hagar Hudspeth regarding concerns of Southeast Denton. e) Willie Hudspeth regarding concerns of Southeast Denton. f) Gerald DeMarsh regarding Heritage Oaks Apartment complex. City of Denton City Council Agenda June 2, 2009 Page 8 F. 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. G. Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. H. Official Action on Closed Meeting Item(s) under Sections 551.071-551.086 of the Texas Open Meetings Act. CERTIFICATE I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of Denton, Texas, on the day of 2009 at o'clock (a.m.) (p.m.) CITY SECRETARY NOTE: THE CITY OF DENTON CITY COUNCIL CHAMBERS IS ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 349-8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1-800- RELAY-TX SO THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY'S OFFICE. AGENDA INFORMATION SHEET AGENDA DATE: June 2, 2009 DEPARTMENT: Finance ACM: Jon Fortune SUBJECT Receive a report, hold a discussion, and give staff direction regarding the Five Year Financial Forecast. BACKGROUND The attached PowerPoint presentation provides a preliminary version of the Five Year Financial Forecast for FY 2009-10. The financial planning process is still in the early stages, and as a result, the forecast should not be considered complete. Over the next few months, staff will work closely with the City Council and the Audit/Finance Committee to finalize the financial plan. The City Manager's recommended budget will be submitted to the City Council at the end of July 2009. In addition to the Five Year Financial Forecast, the presentation provides an overview of the following assumptions and key budget items. ➢ Lowering the appraised value growth assumptions to 0% in FY 2009-10, FY 2010-11, and 4% for each year thereafter. ➢ Reducing the sales tax growth assumption from 5% to 2% beginning in FY 2010-11. ➢ Incorporating a 1% increase (from 4% to 5%) in the franchise fee that is charged to our Denton Municipal Utilities. ➢ Reducing expected Building Permit and Inspection revenue for FY 2009-10 and FY 2010-11. ➢ Increasing fund balance projections due to higher than anticipated ending fund balance for FY 2007-08. ➢ Using the Pay as You Go funding approach for Governmental Accounting Standards Board (GASB) Statement Number 45. Due to the complexity of this issue, a White Paper has been attached for further clarification. ➢ Phasing in contributions to the Texas Municipal Retirement System (TMRS). ➢ Compensation adjustments for staff. ➢ Health insurance cost estimates. ➢ Property tax assumptions. ➢ Size and timing of future bond issuances. Agenda Information Sheet June 2, 2009 Page 2 I look forward to discussing this information in detail with you. If you have any questions, or need additional information, please let me know. EXHIBITS 1. PowerPoint presentation 2. 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V } ~ ~ ~ • - ~ ~ tip O i U LL O O O O Z O\ N w LO `O L O - Q Q O 0 o O Z 0 0 < CV w LO `O LO O LO 01 01 Q< Q ,o = O 0 0 O Z 0 N w `O `O L O LO 01 Q ,o = O 0 0 O Z o 0 0 O N w `O -O L Q - Q O 0 0 0 Z o 0 0 O CV w `O ~ -O - 11 Q Q .O N N LLL O N V > .0 s a X LO O O .O 3 N ~ cn ~ ~ N } N LL s a to D Q a Q O N X Q C~ cn C~ ~ V o = ~ ~ c O x O N > O a ~ a S L Q ~ N ~ V Q a ~ O 0 a Q \ 0 N 0 4- a O 0 \ •o .0 V 0 'V U O 0 ? ? y O •N 0 N ' N t ? ? 0 L D } V V N N ~ Q s O N a - } 0 0 > V m a N 0 _ N a N--~e m m O O E Q} 0 0 0-0 V V 0) 4- a~~ H 4- O 0L NU Vcn V V a 4- 4- O I N0) in V V Q I O ZF- -0 a~ ) -z-- a) O O V -0 m V " }I sl LO N a I V m I I I 00 CV sl }I } 00 N N a N N N rF .p N -0 -0 N -0 N - Q E 1 N E E} E} E- a a a i~ Q Q Q to to a to to Q ISSUE IDENTIFICATION DESCRIPTION In 2004, the Governmental Accounting Standards Board (GASB) issued Statement No. 45, Accounting and Financial Reporting by Employers for Postewploywent Benefits Other Than Pensions. While the statement was issued in 2004, the timeframe for implementation was based on the size of the reporting entity's budget. For the City of Denton, GASB 45 became effective with the financial report as of September 30, 2008. GASB 45 applies to governmental entities that offer retiree benefits such as medical, dental, vision, life and disability, collectively referred to by GASB as Other Post-Employment Benefits (OPEB). Public entities have typically funded these expenses on a cash or "pay as you go" basis. In other words, the cost for each year's benefits came from that year's revenues. GASB 45 requires public entities to calculate and disclose in their financial statements the unfunded actuarial accrued liability (UAAL) and the actuarial value of new benefits earned each year by active employees. This means that a government must account for the actuarial value of benefits that retirees are receiving at the current time, as well as the actuarial value of potential future benefits that active employees may receive when they retire. An additional component of the GASB liability calculation is the "implied subsidy." This subsidy represents the fact that retirees typically pay a lower premium/contribution by being part of the overall plan than if they were underwritten as a separate group. In other words, the fact that their lives are included with the lives of active employees, and the fact that their claims are "pooled" with the active employee's claims, yields a lower monthly premium/ contribution for them. Depending on the size of the retiree group, the level of retiree health coverage funding provided by the entity, the benefit structure and other factors, the UAAL for some entities can be staggering. Fortunately, GASB 45 does not require that the full UAAL be accrued as a liability on the balance sheet in the first year. Instead, governmental entities are required to calculate and record an "annual required contribution" (ARC). The ARC amount includes the present value of the future benefits earned during the year by active employees (referred to as the "normal costs") and a cost to amortize the UAAL over a 30 year time period. The difference between the ARC and the actual contribution paid is recorded as a net OPEB obligation over time. It should be noted that while GASB 45 requires governmental entities to account for the liabilities associated with OPEB, it does not require them to be funded. However, if the governmental entity funds the entire ARC amount each year, then there is no increase in the balance sheet liability for OPEB. Any amount of the ARC that is not funded must be recorded as a liability, a liability that continues to grow each year with interest. 1 RETIREE BENEFITS City of Denton employees who retire in accordance with the provisions of the Texas Municipal Retirement System (TMRS), or the Firefighter Relief and Retirement Fund, are eligible for health, vision and dental benefits under the City's program. At the time of retirement, retirees must make a one time, irrevocable decision regarding which benefits they wish to maintain. While retirees are able to drop coverage in the future, once coverage is cancelled, it cannot be regained. The plan does allow retirees to add or drop dependents in accordance with IRS rules regarding qualified events, such as birth, adoption, death, marriage or divorce. Retirees can continue to remain on the City's plan after they reach 65 years of age although the City's plan becomes secondary to Medicare at that time. Retirees are part of the City's self-funded health plan group, but they pay a significantly higher contribution than active employees do. The retiree contribution approximates the total fully insured equivalent premium amount, less a City paid subsidy based on years of service with the City at the time of retirement. The subsidy is $20 per month for each 5 years of service up to a maximum subsidy of $100 per month for 20+ years of service. Dental and vision benefits are provided on a fully insured basis and the retirees and active employees pay the actual amount charged by the insurance company. ISSUES Should the City of Denton fund the GASB 45 liability by setting aside the ARC amount each year or continue using the "pay as you go" approach? If the decision is made to fund the ARC amount, what mechanism should be used? GASB EVALUATION FOR CITY OF DENTON The first step in this process was to determine the amount of the City of Denton's OPEB liability. Milliman, Inc. performed our first GASB 45 valuation in 2006 and performed a second actuarial evaluation in May of 2008 (attached for your review as Exhibit 1) to update our GASB 45 liability. Table 1 illustrates the total GASB 45 UAAL for the City of Denton in the 2006 and 2008 studies. Table 1- Milliman UAAL Calculation 2006 2008 4% 7% 4% 7% Active Employees $ 11,073,045 $ 5,073,045 $ 15,045,686 $ 8,564,852 Retirees $ 489,901 $ 305,845 $ 1,162,461 $ 782,959 TOTAL UAAL $ 11,562,946 $ 6,052,249 $ 16,208,147 $ 9,347,811 While $16 million is certainly a significant number, it should be noted that many larger governmental entities in Texas have UAAL's in excess of $100 million. 2 As previously discussed, the UAAL is our total liability, but it is not the amount that must be accounted for on our financials. Table 2 shows the City's ARC amount from both the 2006 and 2008 actuarial reports. Table 2 - Milliman ARC Calculations 2006 2008 4% 7% 4% 7% Normal Costs $ 443,920 $ 237,145 $ 420,906 $ 268,446 Amortized Payments $ 299,361 $ 245,667 $ 458,374 $ 416,670 TOTAL ARC $ 743,281 $ 482,812 $ 879,280 $ 658,116 The figures in both Table 1 and Table 2 are shown based on two different interest calculations, 4% and 7%. This is because the discount rate used in calculating the UAAL and ARC liabilities is tied to the funding mechanism, if any, that is used by the governmental entity. GASB 45 requires the use of a discount rate that is related to the long-term yield on investments used to finance the payments of benefits. Therefore, an unfunded plan is required to use a discount rate that is equal to the rate the governmental entity earns on its other assets. Milliman, Inc. uses 4% in their calculations of liabilities for an unfunded plan and 7% for a funded plan. However, if we can show documentation that our general asset investment pool earns more than 4% on a historical basis, this number could be revised. Similarly, the actual rate of return earned on the investments in a funded plan would be used to make this calculation in that situation. One other item to note regarding interest rates is that in order for a plan to be considered "funded" GASB requires that the assets must be held in an irrevocable trust, that the assets must be dedicated solely to provide benefits under the plan to retirees and their beneficiaries, and that the assets are protected from creditors. In preparation for compliance with GASB 45, the City began setting aside funds in 2006. As of September 30, 2008, the City has $2,339,398 set aside (or approximately 3 years of ARC). GASB FUNDING OPTIONS There are several options available to the City in regard to how we choose to manage our GASB liability. Each option will be discussed in the following pages with "pros" and "cons" provided for each scenario, as well as a financial analysis. 1. CONTINUE "PAY AS YOU GO" METHOD The first option, and easiest one to implement, is to simply do nothing and continue to pay for benefits as they accrue on a year to year basis. In the early years of accounting for GASB the ARC payment will be much higher than the cost under the pay-as-you-go method. However, continuing to only pay the pay-as-you-go amount will result in a growing unfunded actuarial liability and net OPEB obligation. 3 PRO's • No increased cost to implement • Given the low amount of our UAAL and ARC in relation to the total budget it may not be deemed as "significant" to auditors and bond rating companies • City retains control of the funds as they are not transferred to a trust or other vehicle • No additional costs incurred to set up and maintain a trust CON's • Under GASB rules, the City's UAAL will continue to grow each year • The calculation of the UAAL and ARC will be based on a lower discount rate resulting in a higher liability than if funded • Possible scrutiny by auditors and bond rating agencies that could negatively impact the City's ability to issue debt FINANCIAL ANALYSIS If the City elects to continue to utilize the pay-as-you-go method of accounting for retiree OPEB benefits the City's estimated contributions according to the actuarial valuation are not expected to exceed the ARC until 2023 (see Figure # 1). A significant difference between the estimated contributions calculated on the actuarial valuation and actual cash outflows for FY 2008 existed. This is likely to be the case each year because of the retiree population that elects to remain part of the benefit program. Using the City's actual cash outflow during the fiscal year ended September 30, 2008 and the growth rate calculated in the actuarial valuation, it was noted that actual cash outflows are not expected to exceed the ARC until approximately 2031 (see Figure # 2). This represents an additional 8 years before retiree benefit costs exceed the ARC. Continuing to use this method would allow the City to reallocate the $2,339,396 reserved for OPEB in a special revenue fund to other projects. However, using the pay-as-you go method would result in an annually increasing OPEB liability until the actual contributions exceeded the ARC (see Figure # 3). 4 Figure # 1 Pay-as-You-Go (Milliman) Vs. ARC (4%) 1,400,000.00 Ile 1,200,000.00 1,000,000.00 800,000.00 ~y x 600,000.00 400,000.00 200,000.00 oa m o m a io n oa m o N m a QD I O O c-I O O O O 0 O ciO 10 O O NO O O NO N O O O O O O O O N N N N N N N N N N N N N N N N N N N N Estimated Contributions Milliman ARC (4%) Figure # 2 Pay-as-You-Go (Actual Contributions) Vs. ARC (4%) 1,200,000.00 4 .r 1, 000, 000.00 800,000.00 600,000.00 400,000.00 200,000.00 Actual Contributions - WT ARC(4%) 5 Figure # 3 OPEB Liability (Actual Payments) OPEB Liability Milliman Payments) Valuation Beginning OPEB Ending OPEB Beginning OPEB Ending OPEB Difference in Year Liability Liability Liability Liability Ending Liability 2008 - 809,584.00 - 730,100.00 79,484.00 2009 809,584.00 1,597,910.67 730,100.00 1,414,700.00 183,210.67 2010 1,597,910.67 2,371,229.21 1,414,700.00 2,067,176.00 304,053.21 2011 2,371,229.21 3,110,997.14 2,067,176.00 2,647,839.00 463,158.14 2012 3,110,997.14 3,836,586.20 2,647,839.00 3,198,153.00 638,433.20 2013 3,836,586.20 4,530,952.22 3,198,153.00 3,681,636.00 849,316.22 2014 4,530,952.22 5,196,411.07 3,681,636.00 4,103,245.00 1,093,166.07 2015 5,196,411.07 5,857,812.82 4,103,245.00 4,516,170.00 1,341,642.82 2016 5,857,812.82 6,479,938.97 4,516,170.00 4,845,028.00 1,634,910.97 2017 6,479,938.97 7,080,686.79 4,845,028.00 5,128,127.00 1,952,559.79 2018 7,080,686.79 7,665,652.32 5,128,127.00 5,377,445.00 2,288,207.32 2019 7,665,652.32 8,241,400.12 5,377,445.00 5,607,033.00 2,634,367.12 2020 8,241,400.12 8,812,485.33 5,607,033.00 5,826,641.00 2,985,844.33 2021 8,812,485.33 9,351,515.42 5,826,641.00 5,977,637.00 3,373,878.42 2022 9,351,515.42 9,853,087.29 5,977,637.00 6,048,456.00 3,804,631.29 2023 9,853,087.29 10,332,860.83 6,048,456.00 6,072,617.00 4,260,243.83 2024 10,332,860.83 10,778,762.34 6,072,617.00 6,024,277.00 4,754,485.34 2025 10,778,762.34 11,190,593.26 6,024,277.00 5,903,011.00 5,287,582.26 2026 11,190,593.26 11,508,882.13 5,903,011.00 5,581,524.00 5,927,358.13 2027 11,508,882.13 11,781,820.01 5,581,524.00 5,162,966.00 6,618,854.01 2. IRREVOCABLE TRUST OR EQUIVALENT The City could choose to establish an irrevocable trust, or equivalent, as a funding mechanism for the GASB liability. There are three main approaches: IRC ~ 401(h) medical benefit accounts in defined benefit pension plans; IRC ~ 501(c) (9) voluntary employees' beneficiary associations (VEBA's); and IRC ~ 115 trusts. In order to count as an irrevocable trust, or equivalent, all contributions (typically the ARC) to the "plan" must be such that the City no longer has ownership or control over the funds, the "plan" must effectively be a legally separate entity under the stewardship of a board of trustees, and the funds are dedicated to providing benefits to retirees and their dependents. The trust would accumulate assets out of which retiree benefit expenses would then be paid. PRO's • Enables the City to use a more favorable assumed rate of return on investments for the calculation of the UAAL • Provides retirees and active employees with confidence that the City has sufficient funds set aside to fulfill our OPEB commitment • Bond rating agencies and auditors should not have any issues with the City's method of funding 6 CON's • The City loses control over the funds placed in the trust (except for any reversionary rights once all benefits have been paid) • Time and expense involved in setting up and administering a trust • Very few public entities are choosing this option thus far • Dissolution of a trust would be difficult FINANCIAL ANALYSIS Establishing an irrevocable trust as the funding mechanism for the GASB 45 liability would allow the contributed funds to be invested in higher risk investments which would allow the funds to grow at a higher rate and allow the City to take advantage of a higher discount rate when calculating the OPEB liability and ARC. Using the increased discount rate (from 4% to 7%), would reduce the ARC by $194,164 per year. Estimated contributions as calculated in the actuarial valuation would not exceed the reduced ARC until approximately 2020 and actual outflows are not projected to cross the ARC until 2028 (see Figures # 4 and # 5 respectively). The transfer of funds to a separate trust would result in a loss of flexibility and control for the City. The analysis shows that full funding would only occur 3 years earlier. If the City elected to fully fund the OPEB liability using an irrevocable trust the $2.3 million currently reserved would be placed in trust along with the annual ARC. If the City elected to fully fund the ARC each year, there would be no increase in the OPEB liability. However, once the funds have been placed in trust they would be restricted unless there was a significant regulatory change that would allow the City to take advantage of any reversion clause built into the trust documents. 7 Figure # 4 Fully Fund ARC (7%) Vs. Pay-as-You-Go (Milliman) 1,400,000.00 1,200,000.00 1,000,000.00 800,000.00 600,000.00 400,000.00 200,000.00 o~ m o m a ut ~ n o~ m o m a ut ~ n 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Estimated Contributions -Milliman ARC(7%) Figure # 5 Fully Fund ARC (7%) Vs. Pay-as-You-Go (Actual) 900,000.00 800,000 00 700,000.00 600,000 00 500,000 00 400,000 00 300,000.00 200,000.00 .uv.xxx. 100,000 00 Actual Contributions-WT ARC (7%) 8 3. INTERNAL FUND The City could choose to set up a separate internal service fund into which the ARC would be placed each year. This method would be similar to the irrevocable trust method, except the City would still retain control of the funds. The monthly health plan contributions paid by the retirees would also be placed into this fund, which in turn, would pay for retiree health benefits. PRO's • The City retains access and control of the funds • No additional expenses to set up a trust • Ease of explanation to auditors and bond agencies CON's • Since the funds would not be in an irrevocable trust, the City would not be able to take advantage of the more advantageous investment interest rate and therefore, would not reduce our GASB liability. • Bond rating agencies and auditors may not acknowledge this as a legitimate funding mechanism and therefore, there is no benefit to the City • The City would essentially be administering two internal funds with similar purposes FINANCIAL ANALYSIS If the City elected to create an internal service fund specifically for OPEB, it would transfer the $2.3 million reserved for OPEB within the "All Other" special revenue fund to the newly created internal service fund and continue to fund the ARC each year into this newly created internal service fund. Using the City's current year contributions and the growth rate used in the actuarial report, it is estimated that selecting this method would restrict approximately $11.8 million of the City's funds over the next 20 years, which could be used elsewhere (see Figure # 6). Using the estimated contributions calculated in the actuarial evaluation, approximately $5.2 million of the City's funds would be restricted over the next 20 years (see Figure # 6). While these funds are restricted, the City would be able to reallocate these funds with approval from the City Council. Possibly, the City could reallocate the $2.3 million in funds already reserved from the "other" special revenue fund to the health insurance internal service fund. This would provide an overall fund for health benefits provided to City employees and allow the City more flexibility. 9 Figure # 6 Estimated Actual Diff. Between Diff. Between Valuation Contributions - Contributions - ARC and Actual ARC & Milliman Year Milliman WT ARC (4%) Contributions Contributions 2008 149,180.00 69,696.00 879,280.00 809,584.00 730,100.00 2009 194,680.00 90,953.33 879,280.00 788,326.67 684,600.00 2010 226,804.00 105,961.47 879,280.00 773,318.53 652,476.00 2011 298,617.00 139,512.07 879,280.00 739,767.93 580,663.00 2012 328,966.00 153,690.94 879,280.00 725,589.06 550,314.00 2013 395,797.00 184,913.98 879,280.00 694,366.02 483,483.00 2014 457,671.00 213,821.14 879,280.00 665,458.86 421,609.00 2015 466,355.00 217,878.25 879,280.00 661,401.75 412,925.00 2016 550,422.00 257,153.85 879,280.00 622,126.15 328,858.00 2017 596,181.00 278,532.18 879,280.00 600,747.82 283,099.00 2018 629,962.00 294,314.46 879,280.00 584,965.54 249,318.00 2019 649,692.00 303,532.20 879,280.00 575,747.80 229,588.00 2020 659,672.00 308,194.80 879,280.00 571,085.20 219,608.00 2021 728,284.00 340,249.91 879,280.00 539,030.09 150,996.00 2022 808,461.00 377,708.12 879,280.00 501,571.88 70,819.00 2023 855,119.00 399,506.46 879,280.00 479,773.54 24,161.00 2024 927,620.00 433,378.49 879,280.00 445,901.51 (48,340.00) 2025 1,000,546.00 467,449.08 879,280.00 411,830.92 (121,266.00) 2026 1,200,767.00 560,991.13 879,280.00 318,288.87 (321,487.00) 2027 1,297,838.00 606,342.12 879,280.00 272,937.88 (418,558.00) Total 11, 781,820.01 5,162,966.00 4. ELIMINATE RETIREE HEALTH BENEFITS If the City did not offer retiree health benefits, there would be essentially no GASB 45 liability. The decision to eliminate retiree benefits would have to be phased in as the current understanding is that some State laws would prohibit us from taking away retiree health benefits from current retirees. Even if benefits were only eliminated for future retirees, it would still significantly reduce our UAAL as the actuarial value of potential future benefits that active employees may receive when they retire is the majority of our GASB liability. PRO's • Reduces GASB liability significantly on an immediate basis and will eventually eliminate our GASB liability completely 10 CON's • The decision to eliminate retiree health benefits would be an extremely unpopular and controversial decision • The lack of retiree health benefits could impact the City's ability to attract and retain employees and place us at a competitive disadvantage 5. FULLY INSURE RETIREE HEALTH BENEFITS The City could choose to carve out the retirees and their dependents from the current self- funded health plan and secure a standalone plan for them. If this group of approximately 95 total lives (56 retirees and 39 dependents) were bid out and underwritten separately from the active employees, and as long as the retirees paid the full cost of the plan chosen for them, then the City would have no GASB 45 liability. The City could also further split the retiree group into those that are under 65 years of age and those that are over 65 years of age (Medicare eligible) and purchase a Medicare supplement plan for those that are eligible. PRO's • Would eliminate the City's GASB liability • Could actually lower the monthly cost for the Medicare eligible retirees CON's • Would most likely increase the monthly cost for the under 65 retiree group • Could result in lower benefit levels and higher copayments/deductibles than the retirees currently have as part of the active health plan • Increased staff time to administer two separate health plans CONCLUSION AND STAFF RECOMMENDATION Although the GASB 45 pronouncement was passed in 2004, with implementation just beginning in 2008, it is still a fairly recent standard. It appears that many public entities are adopting a "wait and see" approach to funding their GASB liabilities. At a recent public entity seminar on employee benefits, an informal poll of attendees at a "round table" discussion showed only one or two that had, or were going to, set up an irrevocable trust. At the current time, it is staffs recommendation that the City of Denton continue to fund GASB on a pay-as-you-go basis. This is essentially the easiest to implement, will cost no additional funds to implement, and will have the least impact on the employees and retirees of the City. This approach will not allow us to use the higher return on investment interest rate for our actuarial calculation. In addition, this approach will result in the City's financials showing an ever increasing UAAL. While II the UAAL will continue to increase, it should be noted that in the first few years the ARC is actually more expensive than the pay as you go method. In fact, it is not until approximately 2031 that the pay-as-you-go method becomes more expensive. Staff has discussed this issue with our financial advisors, First Southwest, and they have indicated that this approach should not have an adverse impact on our bond rating. If Council concurs with this recommendation, the $2,339,296 currently set aside for the City's GASB 45 liability will be moved into the Health Insurance Fund and used to offset future increases to the City-side and/or employee contributions for health benefits. The GASB 45 liability will be updated every two years, and staff will validate or revise the logic for our approach during this process. 12 EXHIBIT I I" City of Denton •:5 Actuarial Valuation Postretirement Benefits r E As of October Prepared By illirnan, c. 10000 North Central Expressway Suite 1500 Dallas, TX 77231 E 7 f~~ 3 10000 North Central Expressway Suite 1500 Dallas, TX 75231 Phone: (214) 863-5500 May 28, 2008 Fax: (214) 863-5501 www.milliman.com Scott Payne Risk Manager City of Denton 601 East Hickory, Suite A Denton, TX 76205 Re: Actuarial Valuation of ostretireet Benefits under GAS 5 for the City o Denton Dear Mr. Payne: Pursuant to your request, we have completed an actuarial valuation of the benefit cost and funded status relating to the future retiree medical benefits provided by the City as of October 1, 2007 for the fiscal year beginning October 1, 2007. The results of our calculations are set forth in the following report, as are the actuarial assumptions, methods and brief summary of the retiree eligibility and benefits upon which our calculations have been made. Our determinations reflect the procedures and methods as prescribed in Statement 45 of the Governmental Accounting Standards Board, "Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions" ("Statement"). Actuarial computations under the Statement are for purposes of fulfilling certain employer accounting requirements. The calculations reported herein have been made on a basis consistent with our understanding of the Statement. Determinations for purposes other than meeting the employer financial accounting requirements of the Statement may differ significantly from the results reported herein. In preparing our calculations for this report, we have relied without audit, on the employee data, plan provisions, and other plan financial information as provided by the City. The census data was collected as of October 1, 2007. If any of this information, as summarized in this report, is inaccurate or incomplete, the results shown could be materially affected and this report may need to be revised. If there are material defects in the data, it is possible that they would be uncovered by a detailed, systematic review and comparison of the data to search for data values that are questionable or for relationships that are materially inconsistent. Such a review was beyond the scope of our assignment. This report may not be used without illiman's prior written consent. If this report is distributed to other parties, it must be copied in its entirety including this section. We understand that the plan sponsor may distribute this report to its auditor in connection with its audit. We will consent to this distribution as long as the work is distributed in its entirety, and the auditor is advised to have an actuary review the work. Milliman does not intend to benefit any third party recipient of its work product, including the auditor, and does not intend to create any legal duty from Milliman to the auditor even if Milliman Offices in Principal Cities Worldwide ' !..,-dan Mr. Scott Payne May 28, 2008 Page 2 consents to the release of its work product. In the event that the auditor's audit reveals any error or inaccuracy in the data underlying the report, Milliman requests that the auditor or the plan sponsor notify Milliman as soon as possible. On the basis of the foregoing, we hereby certify that, to the best of our knowledge and belief, this report is complete and accurate and has been prepared in accordance with generally recognized and accepted actuarial principles and practices which are consistent with the applicable Actuarial Standards of Practice. We further certify that, in our opinion, each actuarial assumption, method and technique used is individually reasonable taking into account the experience of the Plan and reasonable expectations. Nevertheless, the emerging liabilities and costs of the plan will vary from those presented in this report to the extent that actual experience differs from that projected by the actuarial assumptions. Please contact us if you have questions about our report or would like additional information. I, Michael Morin, am a consulting actuary for Milliman, Inc. and am a Member of the American Academy of Actuaries and meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained herein. Respectfully submitted, -ell Michael Morin, ASA, MAAA Principal Offices in Principal Cities Worldwide Contents Introduction Purpose Exhibits Exhibit 1 - Summary of Participant Data 6 Exhibit 2 - Actuarial Present Value of Total Projected Benefits 7 Exhibit 3 - Actuarial Accrued Liability 8 Exhibit 4 - Annual Required Contribution 9 Exhibit 5 -Projected Benefit Payments 10 Exhibit 6 -Financial Statement Disclosures 11 Exhibit 7 - Schedule of Funding Progress 12 Appendices 13 Appendix A - Actuarial Cost Method 14 Appendix B - Actuarial Assumptions 15 Appendix C -Plan Provisions 19 Appendix D -Glossary 20 2 Actuarial Valuation of Postretirement Benefits Under GASB 45 This material assumes that the reader is familiar with the City of Denton's post-employment benefit programs, their benefits, eligibility, administration and other factors. The material was prepared solely to provide assistance to the City in reviewing the impact of GASB Statement 45 on the City's financial statements. It may not be appropriate for other purposes. Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work. This material should only be reviewed in its entirety. Introduction and Purpose Historically, governmental entities offering postretirement medical plans - especially those that are self-funded - have accounted for such plans on essentially a cash basis. Consequently, the cost for such plans is attributed to the period of time that an employee is retired and not performing substantial work for the employer. In 2004, the Governmental Accounting Standards Board issued Statement No. 45 entitled "Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than Pensions" ("GASB 45 to address the accounting of these plans. The major change under GASB 45 is to attribute the cost of postretirement benefits to the time during which the employee is working for the employer. Reasons provided by GASB for this change include: Recognize the cost of benefits in periods when the related services are received by the employer. Provide information about the actuarial liabilities for promised benefits associated with past services and to what extent those benefits are funded. • Provide information that is useful to assess potential demands on the employer's future cash flows. While GASB 45 allocates the costs of a postretirement benefit plan over the years of active employment (when the promise of future benefits is potentially motivating an employee), it does not require the funding of such benefits. There are two key points that need to be noted in this regard. First, the choice of the discount rate used in measuring the liabilities of the benefits is tied to the funding vehicle or lack thereof. GASB 45 requires the use of a discount rate that is related to the long-term investment yield on investments used to finance the payments of benefits. An unfunded plan must use a discount rate equal to what the sponsor earns on its general assets. Since a lower discount rate leads to higher liabilities, a funded plan will have lower liabilities than an unfunded plan with identical provisions and membership. While the discount rate issue provides some encouragement for funding plans, there is a second key point. GASB 45 requires that assets can only be considered if they are: (1) held in an irrevocable trust, (2) dedicated solely to provide benefits under the plan to retirees and their beneficiaries, and (3) are protected from creditors. This restriction may limit what can be funded, depending upon legal restraints and tax issues. 3 Actuarial Valuation of Postretirement Benefits Under GASB 45 This material assumes that the reader is familiar with the City of Denton's post-employment benefit programs, their benefits, eligibility, administration and other factors. The material was prepared solely to provide assistance to the City in reviewing the impact of GASB Statement 45 on the City's financial statements. It may not be appropriate for other purposes. Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work. This material should only be reviewed in its entirety. In order to illustrate how the results are impacted if the Plan is funded, results are shown using two different discount rates. If the Plan were funded, the entity may be able to invest in higher risk securities. For purposes of this report, we have determined the liabilities using a 7% discount rate, to reflect the potential effect of funding these liabilities using a trust fund. Without funding, the discount rate is assumed to be 4%, which represents a conservative estimate of short-term pooled funds. If the plan sponsor chooses to fund these liabilities, the actual discount rate will reflect the actual investments selected by the plan sponsor and the results in this report would need to be revised to reflect the final discount rate. These pages estimate the cost of the entity's current retiree health program and the potential impact of GASB 45. The intended purpose of this information is to provide actuarial cost information to the entity to help with financial and benefit planning. Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work. The report should only be used in its entirety to assure complete understanding of the estimates and the methodology and assumptions underlying the estimates. In preparing this report, we relied on the overall employee census information provided by the entity. We reviewed the information for reasonableness, but we did not audit the information. To the extent that any of this data or information is incorrect, the results of this report may need to be revised. Per capita claims were developed from our understanding of the plan and Milliman's Health Cost Guidelines. A number of assumptions have been made in projecting retiree health costs that should be reviewed prior to interpreting the results shown in this report. These assumptions, as well as the actuarial methodology, are described in this report. The projections in this report are estimates and, as such, the entity's actual liability will vary from these estimates. The actual liability will not be known until such time that all eligibility is exhausted and all benefits are paid. The projections and assumptions should be updated as actual costs under this program develop. The Medicare Modernization Act (MMA) provides for a federal subsidy to sponsors of a postretirement benefit plan that provides prescription drug coverage, provided the coverage is at least actuarially equivalent to the prescription drug benefits provided by Medicare Part D. GASB has released a Proposed Technical Bulletin that indicates this future subsidy should not be reflected in the GASB 45 calculations. 4 Actuarial Valuation of Postretirement Benefits Under GASB 45 This material assumes that the reader is familiar with the City of Denton's post-employment benefit programs, their benefits, eligibility, administration and other factors. The material was prepared solely to provide assistance to the City in reviewing the impact of GASB Statement 45 on the City's financial statements. It may not be appropriate for other purposes. Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work. This material should only be reviewed in its entirety. D 5 Actuarial Valuation of Postretirement Benefits Under GASB 45 This material assumes that the reader is familiar with the City of Denton's post-employment benefit programs, their benefits, eligibility, administration and other factors. The material was prepared solely to provide assistance to the City in reviewing the impact of GASB Statement 45 on the City's,financial statements. It may not be appropriate for other purposes. Milliman does not intend to benefit and assumes no duty or liability to other parties Who receive this t 6fL i%is material should tlhly be itvie*etl in its entirety. Exhibit - Summary of Participant Data' Years of Service Age 0-5 5-10 10-15 15-20 20-25 25-30 30-35 35 & L )p 0-24 53 2 - - - - - - 55 25-29 107 27 1 - - - - - 135 30-34 73 68 15 - - - - - 156 35-39 66 66 51 18 - - - - 201 40-44 40 53 28 29 17 1 - - 168 45-49 38 38 19 18 21 5 - - 139 50-54 39 30 21 13 14 17 6 - 140 55-59 17 15 11 15 14 10 10 1 93 60-64 4 8 4 7 1 3 2 4 33 65-69 3 4 4 - - - 1 1 10 70&U 0 1 1 1 - - - - 3 Total 440 312 152 101 67 36 19 6 1,133 Retirees S~p,.qusles Male Female Total Under 55 13 13 26 55-59 16 12 28 60-64 13 13 26 65-69 12 9 21 70-74 6 3 9 75-79 - 1 1 Over 80 - 1 1 Total 60 52 112 Male Female Total Under 5 - - - 5-9 3 - 3 10-14 1 2 3 15-19 1 4 5 Over 20 2 1 3 Total 7 7 14 ' The census data was provided as of January 1, 2008 and does not reflect new hires or status changes after that date. 6 Actuarial Valuation of Postretirement Benefits Under GASB 45 This material assumes that the reader is familiar with the City of Denton's post-employment benefit programs, their benefits, eligibility, administration and other factors. The material was prepared solely to provide assistance to the City in reviewing the impact of GASB Statement 45 on the City's financial statements. It may not be appropriate for other purposes. Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work. This material should only be reviewed in its entirety. Exhibit - 2 Actuarial Present Value of Total Projected Benefits Actives Retirees Total TMRS $13,571,279 $755,325 $14,326,604 Firemen 1,474,407 407.136 1,881,543 Total $15,045,686 $1,162,461 $16,208,147 " f Actives Retirees Total TMRS $7,603,279 $492,266 $8,095,545 Firemen 961,573 290,693 1,252,266 Total $8,564,852 $782,959 $9,347,811 7 Actuarial valuation of Postretirement Benefits Under GASB 45 This material assumes that the reader is familiar with the City of Denton's post-employment benefit programs, their benefits, eligibility, administration and other factors. The material was prepared solely to provide assistance to the City in reviewing the impact of GASB Statement 45 on the City's financial statements. It may not be appropriate for other purposes. N illiman does not intend to benefit and assumes no duty or liability to other parties who receive this work. This material should only be reviewed in its entirety. Exhibit - aril Accrued Liability Current Plan at 4.0% Actives Retirees Total TMRS $6,091,348 $755,325 $6,846,673 Firemen 672,393 407,136 1,079,529 Total $6,763,741 $1,162,461 $7,926,202 Current PIF Actives Retirees Total TMRS $3,811,864 $492,266 $4,304,130 Firemen 575,655 290,693 866,348 Total $4,387,519 $782,959 $5,170,478 8 Actuarial Valuation of Postretirement Benefits Under GASB 45 This material assumes that the reader is familiar with the City of Denton's post-employment benefit programs, their benefits, eligibility, administration and other factors. The material was prepared solely to provide assistance to the City in reviewing the impact of GASB Statement 45 on the City's financial statements. It may not be appropriate for other purposes. Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work. This material should only be reviewed in its entirety. Exhibit r_.°` 3ontributior. 4E' 7% A. Normal Costs (1) Current Year Normal Cost as of October 1, 2007 TMRS $ 330,319 $ 206,917 Firemen 74.398 43,967 Total Normal Cost as of October 1, 2007 404,717 250,884 (2) Assumed Interest to the End of the Fiscal Year $ 16,189 $ 17,562 (3) Current Year Normal Cost as of September 30, 2008 $ 420,906 $ 268,446 [(I) + (2)] B. Determination of Current Year Amortization Payment (1) Unfunded Actuarial Accrued Liability (see Exhibit 3) $ 7,926,202 $ 5,170,478 (2) Maximum Permissible Amortization Period 30 years 30 years (3) Level Dollar Amortization Factor 17.9837 13.2777 (4) Amortization Amount as of October 1, 2007 [(1) / (3)] $ 440,744 $ 389,411 (5) Assumed Interest to the End of the Fiscal Year 17.630 27.259 (6) Amortization Amount as of September 30, 2008 $ 458,374 $ 416,670 [(4) + (5)] C. Determination of Annual Required Contribution (1) Normal Cost for Benefits Attributable to Service in the $ 420,906 $ 268,446 Year (A.3.) (2) Amortization of Unfunded Actuarial Accrued Liability 458.374 416.670 (B.6.) (3) Annual Required Contribution (ARC) [(I) + (2)] $ 879,280 $ 685,116 The amortization of the Unfunded Actuarial Accrued Liability is calculated here assuming 30 level annual payments. GASB 45 allows for these payments to be calculated as a level percent of payroll. If this were done, the FYE 2008 ARC would be lower, but the ARC in future years would be higher as payroll increases. 9 Actuarial Valuation of Postretirement Benefits Under GASB 45 This material assumes that the reader is familiar with the City of Denton's post-employment benefit programs, their benefits, eligibility, administration and other factors. The material was prepared solely to provide assistance to the City in reviewing the impact of GASB Statement 45 on the City's financial statements. It may not be appropriate for other purposes. Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work. This material should only be reviewed in its entirety. i it - Projected Benefit Payments* Valuation Year Total Claims Total Contributions 't'otal 2008 615,658 (466,478) 149,180 2009 828,186 (633,506) 194,680 2010 1,068,018 (841,214) 226,804 2011 1,356,397 (1,057,780) 298,617 2012 1,582,600 (1,253,634) 328,966 2013 1,848,626 (1,452,829) 395,797 2014 2,119,337 (1,661,666) 457,671 2015 2,255,505 (1,789,150) 466,355 2016 2,521,196 (1,970,774) 550,422 2017 2,742,299 (2,146,118) 596,181 2018 2,957,185 (2,327,223) 629,962 2019 3,134,102 (2,484,410) 649,692 2020 3,325,160 (2,665,488) 659,672 2021 3,619,768 (2,891,484) 728,284 2022 3,994,065 (3,185,604) 808,461 2023 4,274,830 (3,419,711) 855,119 20244,664,905 (3,737,285) 927,620 2025 5,039,401 (4,038,855) 1,000,546 2026 5,594,952 (4,394,185) 1,200,767 2027 6,091,232 (4,792,394) 1,298,838 * This projection is based on the population used in this valuation and makes no provision for future hires. In addition, it will only be realized if all assumptions are met. 10 Actuarial Valuation of Postretirement Benefits Under GASB 45 This material assumes that the reader is familiar with the City of Denton's post-employment benefit programs, their benefits, eligibility, administration and other factors. The material was prepared solely to provide assistance to the City in reviewing the impact of GASB Statement 45 on the City's financial statements. It may not be appropriate for other purposes. Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work. This material should only be reviewed in its entirety. Exhibit Financial Disclosures The following table shows the calculation of the Annual Required Contribution and Net OPEB Obligation. The final ARC will be dependent on the discount rate selected and the end of year Net OPEB obligation will need to reflect actual contributions. Fiscal Year Ending September 30, 2008 4rc 7% Determination of Annual Required Contribution Normal Cost at fiscal year end $ 420,906 $ 268,446 Amortization of UAAL 458,374 416,670 Annual Required Contribution (ARC) $ 879,280 $ 685,116 Determination of Net OPEB Obligation Annual Required Contribution $ 879,280 $ 685,116 Interest on prior year Net OPEB Obligation 0 0 Adjustment to ARC 0 0 Annual OPEB Cost $ 879,280 $ 685,116 Assumed Contributions made (149,180) (685,116) Estimated Increase in Net OPEB Obligation $ 730,100 $ 0 Net OPEB Obligation - beginning of year $ 0 $ 0 Estimated Net OPEB Obligation - end of year $ 730,100 $ 0 The following table shows the annual OPEB cost and net OPEB obligation for the prior 3 years assuming the plan is not prefunded (4% discount): Percentage of Fiscal Discount Annual 01111 Cost Net OPEB 'czar Ended Rate OPEB Cost Contributed ~ Obligation 09/30/2006 N/A N/A N/A N/A 09/30/2007 N/A N/A N/A N/A 09/30/2008 4.0% $879,280 17,0% $730,100 11 Actuarial Valuation of Postretirement Benefits Under GASB 45 This material assumes that the reader is familiar with the City of Denton's post-employment benefit programs, their benefits, eligibility, administration and other factors. The material was prepared solely to provide assistance to the City in reviewing the impact of GASB Statement 45 on the City's financial statements. It may not be appropriate for other purposes. Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work. This material should only be reviewed in its entirety. Exhibit - Schedule of Funding Progress - - Unfunded Actuarial Actuarial Actuarial Actuarial Discount Accrued Accrued Valuation Value Liabilities Liabilities Funded Date of Assets [fate (AAL)"" (UAAI Ratio July 1, 2005 N/A N/A N/A N/A N/A July 1, 2006 N/A N/A N/A N/A N/A July 1, 2007 0 4.0% 7,926,202 7,926,202 0.0% (1) Actuarial Accrued Liability determined under the projected unit credit cost method. (2) Actuarial Accrued Liability less Actuarial Value of Assets. 12 Actuarial Valuation of Postretirement Benefits Under GASB 45 This material assumes that the reader is familiar with the City of Denton's post-employment benefit programs, their benefits, eligibility, administration and other factors. The material was prepared solely to provide assistance to the City in reviewing the impact of GASB Statement 45 on the City's financial statements. It may not be appropriate for other purposes. Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work. This material should only be reviewed in its entirety. 13 Actuarial Valuation of Postretirement Benefits Under GASB 45 This material assumes that the reader is familiar with the City of Denton's post-employment benefit programs, their benefits, eligibility, administration and other factors. The material was prepared solely to provide assistance to the City in reviewing the impact of GASB Statement 45 on the City's financial statements. It may not be appropriate for other purposes. Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work. This material should only be reviewed in its entirety. Appendix - Actuarial Cost Method i Credit Actuarial Cost Method The actuarial cost method determines, in a systematic way, the incidence of plan sponsor contributions required to provide plan benefits. It also determines how actuarial gains and losses are recognized in OPEB costs. These gains and losses result from the difference between the actual experience under the plan and what was anticipated by the actuarial assumptions. The cost of the Plan is derived by making certain specific assumptions as to rates of interest, mortality, turnover, etc. which are assumed to hold for many years into the future. Since actual experience may differ somewhat from the long term assumptions, the costs determined by the valuation must be regarded as estimates of the true costs of the Plan. Actuarial liabilities and comparative costs shown in this Report were computed using the Unit Credit Actuarial Cost Method, which consists of the following cost components: 1. The Normal Cost is the Actuarial Present Value of benefits allocated to the valuation year. 2. The Actuarial Accrued Liability is the Actuarial Present Value of benefits accrued as of the valuation date. 3. Valuation Assets are equal to the market value of assets as of the valuation date, if any. 4. Unfunded Actuarial Accrued Liability is the difference between the Actuarial Accrued Liability and the Valuation Assets. It is amortized over the maximum permissible period under GASB 45 of 30 years. It should be noted that GASB 45 allows a variety of cost methods to be used. We elected this method because it is generally easy to understand and is widely used for the valuation of postemployment benefits other than pensions. Other methods used do not change the ultimate liability, but do allocate it differently between what has been earned in the past and what will be earned in the future. If a different method was used, either the normal cost would decrease and the unfunded amortization would increase, or the normal cost would increase and the amortization decrease. Please note that the net effect of the change may result in an increase or decrease in the Annual Required Contribution (ARC). If desired, we can provide more details, 14 Actuarial Valuation of Postretirement Benefits Under GASB 45 This material assumes that the reader is familiar with the City of Denton's post-employment benefit programs, their benefits, eligibility, administration and other factors. The material was prepared solely to provide assistance to the City in reviewing the impact of GASB Statement 45 on the City's financial statements. It may not be appropriate for other purposes. Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work. This material should only be reviewed in its entirety. Appendix - Actuarial In addition to the actuarial method used, actuarial cost estimates depend to an important degree on the assumptions made relative to various occurrences, such as rate of expected investment earnings by the fund, rates of mortality among active and retired employees, rates of termination from employment, and retirement rates. In the current valuation, the actuarial assumptions used for the calculation of costs and liabilities are as follows: Measurement Date Benefit liabilities are valued as of July 1, 2007. Discount Rate for Valuing Liabilities Without pre-funding: 4.00% per annum, compounded annually With pre-funding: 7.00% per annum, compounded annually or ity Rates Healthy Lives: 1994 Group Annuity Table for Males and Females Withdrawal Rates Sample rates of employee withdrawal for TMRS members (exclusive of withdrawal by death or retirement) are illustrated below. Years of Male Female Service Age Rates Rates 0 .299 .308 3 .130 .166 6 .090 .104 9 .056 .058 12 .034 .038 15 .022 .023 18 .017 .013 20 or more 40 .018 .018 45 .013 .013 50 .008 .008 55 .003 .003 60 .008 .008 65 .013 .013 15 Actuarial Valuation of Postretirement Benefits Under GASB 45 This material assumes that the reader is familiar with the City of Denton's post-employment benefit programs, their benefits, eligibility, administration and other factors. The material was prepared solely to provide assistance to the City in reviewing the impact of GASB Statement 45 on the City's financial statements. It may not be appropriate for other purposes. Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work. This material should only be reviewed in its entirety. Sample rates of employee withdrawal for Firemen (exclusive of withdrawal by death or retirement) are illustrated below. Years A e of Service Rates All 0 8% 1 6% 2 4.5% 3 3.0% 4 2.0% 25 Over 4 1.0% 30 1.0% 35 1.0% 40 .9% 45 .8% 50 .7% 55 .6% Disability Rates None assumed Retirement Rates Sample rates of retirement for TMRS members are illustrated below. Rates are taken from the 2006 TNM Comprehensive Annual Financial Report. Male l cma~c Entry Age Grou s Enlr. Age Got ps Ages 20, 25, 30 35, 40, 45 50, 55, 60 20, 25, 30 35, 40, 45 50, 55, 60 40.44 .030 - - .023 - - 45-49 .060 .045 50-54 .080 - .075 55-59 .120 - - .100 - - 60 .200 .175 .150 .350 .300 .250 61 .240 .150 .120 .250 .140 .120 62 .500 .450 .400 .400 .350 .300 63 .280 .250 .250 .200 .200 .200 64 .350 .250 .250 .250 .160 .160 65 .750 .600 .550 .500 .450 .450 66-69 .550 .450 .350 .450 .330 .330 70-74 .500 .500 .500 .500 .500 .500 75 and over 1.000 1.000 1.000 1.000 1.000 1.000 16 Actuarial Valuation of Postretirement Benefits Under GASB 45 This material assumes that the reader is familiar with the City of Denton's post-employment benefit programs, their benefits, eligibility, administration and other factors. The material was prepared solely to provide assistance to the City, in reviewing the impact of GASB Statement 45 on the City's financial statements. It may not be appropriate for other purposes. Wl,liman does not intend to benefit and assumes no duty or liability to other parties who receive this work. This material should only be reviewed in its entirety. Sample rates of retirement for Firemen are illustrated below. Age Rates 50 20% 51 15% 52 10% 53 10% 54 10% 55 10% 56 10% 57 15% 58 25% 59 30% 60 100% Over 60 100% Marriage Assumption For Actives it is assumed that wives are three years younger than husbands. 40% of men and 40% of women are assumed to have spouses who will elect coverage. Price Inflation 3.5% per year. Participation All eligible members are assumed to elect coverage up to age 65. After age 65, members are assumed to opt out. 17 Actuarial Valuation of Postretirement Benefits Under GASB 45 This material assumes that the reader is familiar with the City of Denton's post-employment benefit programs, their benefits, eligibility, administration and other factors. The material was prepared solely to provide assistance to the City in reviewing the impact of GASB Statement 45 on the City's financial statements. It may not be appropriate for other purposes. Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work. This material should only be reviewed in its entirety. Per Capita Medical enefit Costs The assumed annual per capita cost of medical and pharmacy benefits for select ages are illustrated below. These are gross amounts prior to reduction for any retiree contributions. Age Medical/Rx - MedicallRx - Dental Male Female 45 $3,515 $4,501 $188 46 $3,702 $4,622 $188 47 $3,899 $4,746 $188 48 $4,129 $4,942 $188 49 $4,373 $5,145 $188 50 $4,632 $5,356 $188 51 $4,905 $5,577 $188 52 $5,195 $5,806 $188 53 $5,507 $6,020 $188 54 $5,838 $6,241 $188 55 $6,188 $6,470 $188 56 $6,560 $6,708 $188 57 $6,954 $6,954 $188 58 $7,331 $7,230 $188 59 $7,728 $7,517 $188 60 $8,147 $7,816 $188 61 $8,588 $8,127 $188 62 $9,054 $8,449 $188 63 $9,544 $8,785 $188 64 $10,062 $9,134 $188 65 $3,007 $2,978 $188 66$3,156 $3,086 $188 67 $3,312 $3,198 $188 68 $3,477 $3,314 $188 69 $3,649 $3,434 $188 70 $3,830 $3,558 $188 71 $4,020 $3,687 $188 72 $4,220 $3,821 $188 73 $4,366 $3,941 $188 74 $4,518 $4,064 $188 75 $4,675 $4,190 $188 76 $4,837 $4,321 $188 77 $5,005 $4,456 $188 78 $5,122 $4,547 $188 79 $5,241 $4,640 $188 80 $5,363 $4,735 $188 81 $5,488 $4,832 $188 82 $5,616 $4,931 $188 83 $5,749 $5,057 $188 $4 $5,885 $5,187 $188 85 $6,024 $5,319 $188 18 Actuarial Valuation of Postretirement Benefits Under GASB 45 This material assumes that the reader is familiar with the City of Denton's post-employment benefit programs, their benefits, eligibility, administration and other factors. The material was prepared solely to provide assistance to the City in reviewing the impact of GASB Statement 45 on the City's financial statements. It may not be appropriate for other purposes. Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work, This material should only be reviewed in its entirety. Medical Inflation (Trend Assumption) The trend assumptions for medical and pharmacy costs and retiree premiums are summarized below: Medical and Rx _ Year Pre 65 Post 65 Dental 2008 7.75% 9.75% 5.75% 2009 7.50% 9.25% 5.50% 2010 7.00% 8.75% 5.50% 2011 6.75% 8.25% 5.25% 2012 6.50% 8.00% 5.25% 2013 6.00% 7.50% 5.00% 2014 5.75% 7.00% 5.00% 2015 5.50% 6.75% 4.75% 2016 5.00% 6.25% 4.75% 2017 4.75% 5.75% 4.50% 2018 and ongoing 4.50% 5.50% 4.25% Employee Contributions Employee Contributions were averaged between the Gold Plan and the Silver Plan and trended with Health Care Cost Trend Rates. Years of Service L,::5:Y,_, 5 - Yrti 10 t_- - -17 19 Yrs T '0+ Yrs Retiree $491 $471 $451 $431 $411 Spouse $549 $549 $549 $549 $549 Retirees are paying the full premium for vision. Any implied subsidy is considered to be immaterial and is not valued in this report. Children Children are valued at 15 years of age up to 22 years of age. 19 Actuarial Valuation of Postretirement Benefits Under GASB 45 This material assumes that the reader is familiar with the City of Denton's post-employment benefit programs, their benefits, eligibility, administration and other factors. The material was prepared solely to provide assistance to the City in reviewing the impact of GASB Statement 45 on the City's financial statements. It may not be appropriate for other purposes. Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work. This material should only be reviewed in its entirety. Appendix Provisions Eligibility A TMRS employee is eligible to elect medical coverage upon retiring. Eligibility for retirement is based on the following table: Age Service 60 5 Any Age 20 An employee who is a fireman is eligible to elect medical coverage provided he or she has completed at least 10 years of service at termination, has reached at least age 50, and would have had at least 20 years of service had he or she not terminated employment. Medical Coverage of Dependents Coverage is also provided to spouses of retirees who are currently receiving benefits. If the retiree predeceases the spouse, coverage for the surviving spouse continues. Base Plan Summary 1. Calendar Year Deductible (sold a. PPO network: $500 deductible per person, with a limit of $1,000 per family. b. Out-of-network: $1,500 deductible per person, with a limit of $3,000 per family Silver a. PPO network: $1,000 deductible per person, with a limit of $2,000 per family. b. Out-of-network: $2,000 deductible per person, with a limit of $4,000 per family. 2. Coinsurance Percentage & Stop-Loss Point Gold a. PPO network: Coinsurance is 10% up to maximum out-of-pocket of $ 1000 per person, $2,000 per family. b, Out-of-network: Coinsurance is 30% up to maximum out-of-pocket of $3,000 per person, $6,000 per family. 20 Actuarial Valuation of Postretirement Benefits Under GASB 45 This material assumes that the reader is familiar with the City of Denton's post-employment benefit programs, their benefits, eligibility, administration and other factors. The material was prepared solely to provide assistance to the City in reviewing the impact of GASB Statement 45 on the City's financial statements. It may not be appropriate for other purposes. Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work. This material should only be reviewed in its entirety. Silver a. PPO network: Coinsurance is 20% up to maximum out-of-pocket of $3,000 deductible per person, with a limit of $6,000 per family. b. Out-of-network: Coinsurance is 40% up to maximum out-of-pocket of $6,000 per person, $12,000 per family. 3. Maximum Benefits Gold a. PPO Network: $2,000,000 per covered person. b. Out-of-network: $2,000,000 per covered person. Silver a. PPO Network: $2,000,000 per covered person. b. Out-of-network: $2,000,000 per covered person. 4. Prescription Drug Program 30 Day Supply 90 Day Supply Tier 1 - $8 Tier 1 - $16 Tier 2 - $30 Tier 2 - $75 Tier 3 - $50 Tier 3 - $125 21 Actuarial Valuation of Postretirement Benefits Under GASB 45 This material assumes that the reader is familiar with the City of Denton's post-employment benefit programs, their benefits, eligibility, administration and other factors. The material was prepared solely to provide assistance to the City in reviewing the impact of GASB Statement 45 on the City's financial statements. it may not be appropriate for other purposes. Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work. This material should only be reviewed in its entirety. Appendix Glossary The following is an explanation of many of the terms referenced by the Statement of the Governmental Accounting Standards Board, "Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions". 1. Actuarial Cost Method. This is a procedure for determining the Actuarial Present Value of Benefits and allocating it to time periods to produce the Actuarial Accrued Liability and the Normal Cost. The Statement assumes a closed group of employees and other participants unless otherwise stated; that is, no new entrants are assumed. Six methods are permitted - Unit Credit, Entry Age Normal, Attained Age, Aggregate, Frozen Entry Age, and Frozen Attained Age. 2. Actuarial Accrued Liability. This is the portion of the Actuarial Present Value of Benefits attributable to periods prior to the valuation date by the Actuarial Cost Method (i.e., that portion not provided by future Normal Costs). 3. Actuarial Present Value of enefits. This is the value, as of the applicable date, of future payments for benefits and expenses under the Plan, where each payment is: (a) Multiplied by the probability of the event occurring on which the payment is conditioned, such as the probability of survival, death, disability, termination of employment, etc.; and (b) Discounted at the assumed discount rate. . Actuarial Value o Assets. This is the value of cash, investments and other property belonging to the Plan, as used by the actuary for the purpose of an Actuarial Valuation. 5. Amortization Payment. This is the amount of the contribution required to pay interest on and to amortize over a given period the Unfunded Actuarial Accrued Liability or the Unfunded Frozen Actuarial Accrued Liability. A closed amortization period is a specific number of years counted from one date and reducing to zero with the passage of time; an open amortization period is one that begins again or is recalculated at each actuarial valuation date. 6® Annual Required Contributions ("ARC"). This is the employer's periodic required contribution to a defined benefit OPEB plan, calculated in accordance with the set of requirements for calculating actuarially determined OPEB information included in financial reports. 7® Attribution Period. The period of an employee's service to which the expected postretirement benefit obligation for that employee is assigned. The beginning of the attribution period is the employee's date of hire and costs are spread across all employment. Benefit Payments. The monetary or in-kind benefits or benefit coverage to which participants may be entitled under a post employment benefit plan, including health care benefits and life insurance not provided through a pension plan. 22 Actuarial Valuation of Postretirement Benefits Under GASB 45 This material assumes that the reader is familiar with the City of Denton's post-employment benefit programs, their benefits, eligibility, administration and other factors. The material was prepared solely to provide assistance to the City in reviewing the impact of GASB Statement 45 on the City's financial statements. It may not be appropriate for other purposes. Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work. This material should only be reviewed in its entirety. 9® Funding Excess. This is the excess of the Actuarial Value of Assets over the actuarial accrued liability. 10. Normal Cost. This is the portion of the Actuarial Present Value of Benefits allocated to a valuation year by the Actuarial Cost Method. 11. Net OPEB obligation. This is the cumulative difference since the effective date of this statement between annual OPEB cost and the employer's contributions to the plan, including the OPEB liability (asset) at transition, if any, and excluding (a) short-term differences and (b) unpaid contributions that have been converted to OPEB-related debt. 12® Other ostemployment Benefits ("OPEB"). This refers to postemployment benefits other than pension benefits, including healthcare benefits regardless of the type of plan that provides them, and all other postemployment benefits provided separately from a pension plan, excluding benefits defined as termination benefits or offers. 13. Return on Plan Assets. This is the actual investment return on plan assets during the fiscal year. 1. Substantive Plan. The terms of the postretirement benefit plan as understood by an employer that provides postretirement benefits and the employees who render services in exchange for those benefits. The substantive plan is the basis for the accounting for the plan. 15. Unfunded Actuarial Accrued Liability. This is the excess of the actuarial accrued liability over the Actuarial Value of Assets. 23 Actuarial Valuation of Postretirement Benefits Under GASB 45 This material assumes that the reader is familiar with the City of Denton's post-employment benefit programs, their benefits, eligibility, administration and other factors. The material was prepared solely to provide assistance to the City in reviewing the impact of GASB Statement 45 on the City's financial statements. It may not be appropriate for other purposes. Milliman does not intend to benefit and assumes no duty or liability to other parties who receive this work. This material should only be reviewed in its entirety. AGENDA INFORMATION SHEET AGENDA DATE: June 2, 2009 DEPARTMENT: Planning ACM: Fred Greene SUBJECT - DCA08-0002 (Development Code Amendments) Receive a briefing, hold a discussion and give staff direction on the proposed amendments to Subchapters 6, 12 and 13 of the Denton Development Code (DDC) to clarify standards and regulations regarding Specific Use Permit (SUP) revocation, yard measurements, accessory buildings and structures general regulations, expansion applicability, preservation and mitigation requirements for in-fill lots, light and glare performance requirements, and site development requirements for residential buildings. This is a staff initiated Code amendment. (DCA08-0002) On September 24, 2008, the Planning and Zoning Commission conducted a public hearing and recommended approval of the proposed amendments (6-0). BACKGROUND The intent of the following Code amendments is to provide clarity and consistency in interpretation and enforcement. Recommended text additions are shown in blue and underlined and recommended text deletions are shown in red with strikethrough. Item 1- SUP revocation Issue: Section 35.6.6.A of the DDC states that "a Specific Use Permit shall be revoked if the proposed use or phase does not possess an approved building permit within eighteen months from the date of approval." However, not all projects that require a SUP need an approved building permit. Some projects only need a Certificate of Occupancy and these projects would have their SUP revoked within eighteen months if they have not obtained an approved building permit. Staff is recommending an amendment to address this issue. In addition, staff determined that the time limit of eighteen (18) months is inconsistent with other time limits in the DDC. To provide consistency with the other time limits, staff is recommending that the time limit be extended from eighteen (18) months to twenty-four (24) months. This is similar to the time limits imposed in the platting processes. Recommendation: Amend Subchapter 35.6.6.A. of the DDC as follows: A Specific Use Permit shall expire if all required City permits for development are not obtained and construction, if applicable, has not commenced within twenty-four (24) months from date of approval. Item 2 - Yard measurements Issue: When reviewing Building Permit applications, staff verifies that architectural projections comply with the setback requirements as set forth in Section 35.12.2.C - Yard Measurements. The issue is that the Section lists some architectural projections, but it does not list all types. As such, when presented with architectural projections not listed, staff is unclear on how to measure the setback requirements. Staff is recommending adding architectural projections, as presented below, to clarify the setback requirements. Recommendation: Amend Subchapter 35.12.2.C. of the DDC as follows: Non-habitable, unenclosed architectural projections such as porches, stairs, stoops, and awnings shall not extend more than seven and a half (7 1/2) feet into a required front yard setback, or twenty-four (24) inches into a required side or rear yard setback. Architectural projections of window sills, bay or box windows, belt courses, cornices, and other projecting architectural features, except for roof overhangs and eaves, shall not extend more than twelve (12) inches into the required side or rear yard setback. Item 3 - Accessory buildings and structures general regulations Issue: The purpose of the following Code amendment is to clarify requirements related to accessory building or structures. As currently written, the relative section of the Code is ambiguous and lead to differences in interpretation. To rectify this situation, staff is proposing the following: Recommendation: Amend Subchapter 35.12.4.B. and Figure 1 of the DDC as follows: 1. The combined square footage of the principal structure and accessory structure(s) shall not exceed the zoning district maximum lot coverage specified in Subchapter 5. 2. Accessory structures, with the exception of detached carports, gas station canopies, gas station car wash facilities, and security/entry booths, are prohibited in front or side yards. 3. Accessory structures shall be setback a minimum of three (3) feet from all property lines associated with its permitted location. 4. No portion of an accessory structure may be located in, or encroach upon any easement. Page - 2 5. All accessory structures that require a building permit shall be architecturally compatible with its associated principal structure. In this context, the term "architectural compatibility" includes, but is not limited to, consistency in: roof pitch, exterior construction materials, exterior color, and architectural design and detail. 6. Accessory structures that require a building permit and are not architecturally compatible with the principal structure shall be screened from view from abutting properties and public rights-of-way. 7. Guest quarters shall be located on the same lot as an existing detached single- family use and may be attached to the principal building or be located within a detached accessory building. 8. No more than one (1) guest quarters per lot shall be allowed. 9. Guest quarters shall not be used as rental units or as a permanent secondary dwelling unit. 10. Guest quarters shall be served by the same utility meter as the primary dwelling. INTERIOR LOT CORNER LOT Property Line i i Accessory Rear Yard Accessory a Structure Structure ; v ~ 0 0 Rear Yard ' i i i ti Principle Structure "M "M Principle v Structure " v , v Front Yard Front Yard a C v P. 0 Property Line Street Page - 3 Item 4 - Expansion applicability Issue: The purpose of the following Code amendment is to set a cumulative threshold to the Expansion Applicability Table regarding non-residential expansions. According to Section 35.13.2.A "the expansion of existing buildings or site development, excepting single or two family dwellings, is subject to the provisions of Subchapter 35.13 in the Expansion Applicability Table." In the Expansion Applicability Table, non-residential expansions are subject to the provisions if the expansion is more than 1,000 square feet or 25%, whichever is greater. The issue is there is nothing limiting an applicant from expanding an existing building or site development up to the threshold one year and then coming back future years for additional expansions. Staff is recommending setting the cumulative threshold of up to 1,000 square feet or 25% whichever is greater based on the square footage of the original building as of February 20, 2002 when the DDC was adopted. Recommendation: Amend the Expansion Applicability Table as follows: Non-residential expansion All buildings shall be subject to the provisions of the Expansion Applicability Table when a building expands (based on floor area) 1,000 square feet or 25%, whichever is greater. The calculation shall be based on the square footage of the original building as of February 20, 2002. Item 5 - Preservation and mitigation requirements for in-fill lots Issue: On May 1, 2007, Subchapter 35.7 "Special Purpose and Overlay Districts" of the DDC was amended to add In-fill Special Purpose District. As part of the Code amendment, the definition of "in-fill" was also amended. The new definition refers to in-fill lots as lots no greater than two acres in size. As a result, this created an inconsistency between the definition for in-fill lots and Table 35.13.7.A. of the DDC. To eliminate this inconsistency, staff is recommending that Table 35.13.7.A. be amended by removing all references to in-fill lots greater than two acres. Page - 4 Recommendation: Amend Table 35.13.7.A. of the DDC as follows: Table 35.13.7.A Preservation & Mitigation Requirements for In-fill Lots Lot Size Historic Protected Quality Tree & Quality Large Secondary Secondary Trees ~ Trees. Trees Tree Stands Trec Less than 100% l/2 acre Preserved None None None None If removed, 1/2 acre to 100% mitigated at None If removed, mitigated None 1 acre a 1:0.5 at a 1:0.25 ratio. ratio. 1 acre to If removed, If removed, mitigated 2.0 100% mitigated at None None acres a 1:1 ratio. at a 1:0.5 ratio. A „F 1 n0/ „F ,.11 Quality Trees Tree Stands presefved in Single Developments! A minimum of 42.524 of ,.ll it ................7 -2.5 aeres tv~ a a--- 4:1.5 family and Nort r-esideritial at 4:n5 r-atio. ratio. developments t4p to 0 percentage required tmder the requirements a this Subsection. at~a 1:1 ratio. mirtiratim -o€ 100A- A miftiratim of z9°~e t,Duplex p 1 Be 4epmen-ts: ~eve~s of minimum of 2 and Noft-residential if removed, mitigated ffid Nan residential than 5 i00071; mitigated t 4. meats 4 n ratio tee- Up to o o pereentage r-equired to be I _ i ' -be mitigated tmder the under the requirements a req- flli"-Suub- eC-tivn-zr~u . L5 Subseetion. at a 4475 r-atio. Page - 5 Item 6 - Light and glare performance requirements Issue: Section 35.13.12 of the DDC states that "light may not measure more than one-half foot- candle of illumination at the property line." In the same Section, it states that "areas designated for pedestrian use shall provide a minimum of one foot-candle of illumination." As such, there are conflicting requirements when a pedestrian use such as a sidewalk is located along a property line. In this example, it is impossible to meet both lighting requirements. Therefore, staff is recommending that the requirement that lights may not measure more than one-half foot-candle of illumination at the property line be exempted when a pedestrian use such as a sidewalk or hiking trail is located along a property line. In addition, it was determined that the current requirement for light to not measure more than one-half foot-candle of illumination at the property line is difficult to achieve on non- residential developments comprised of multiple lots, such as commercial shopping centers where internal property lines adjoin each other. Staff is recommending that non-residential development comprising of multiple lots, be exempted from this requirement. Recommendation: Amend Subchapter 35.13.12 of the DDC as follows: All lighting within developments other than single-family developments, shall meet the following standards: A. Light may not measure more than one-half foot-candle of illumination at the property line, except as provided in 35.13.12.1) and when state and federal regulations apply. B. Non-residential developments comprising of multiple lots, such as a shopping center, are exempted from the requirement 35.13.12.A. C. Lights shall be shielded to prevent upward diffusion. D. Areas designated for pedestrian use shall provide a minimum of one foot-candle of illumination. Item 7 - Site development requirements for residential buildings Issue: Section 35.13.13.1.13 of the DDC states that "any garage may not extend beyond the house front." However, most side entry garages extend beyond the house front. As such, it is unclear if side entry garages are subject to this requirement. The purpose of the following Code amendment is to clarify that side entry garages are not subject to this requirement. Side entry garages do not directly face the street and therefore meet the intent of the Code to minimize the amount of area comprised by garage doors facing a street. Page - 6 Recommendation: Amend Subchapter 35.13.13.1.B. of the DDC as follows: Attached front entry garages of residential dwellings may not extend forward of the front building wall and the total width of the garage door(s) shall not occupy more than 40% of the total building frontage. This requirement does not apply to attached side entry garages. Front entry garages that are setback at least 30 feet behind the front building wall are exempted from the 40% maximum limitation. PRIOR ACTION/REVIEW August 27, 2008 Planning and Zoning Commission Work Session September 10, 2008 Planning and Zoning Commission Work Session September 24, 2008 Planning and Zoning Commission Public Hearing OPTIONS 1. Direct staff to proceed with the proposed amendments 2. Direct staff to proceed with the proposed amendments with changes 3. Direct staff to take another direction RECOMMENDATION On September 24, 2008, the Planning and Zoning Commission conducted a public hearing and recommended approval of the proposed amendments by a 6-0 vote. EXHIBITS 1. September 24, 2008 Planning and Zoning Commission Minutes Prepared by: Respectfully submitted: - . . - - - - - - - - - - Ron Menguita, AICP Mark Cunningham, AICP Planning Supervisor Director of Planning and Development Page - 7 EXHIBIT 1 17 19 1 CHAIRMAN WATKINS: The next item would be a public 1 inches into the side or rear yard." 2 hearing, 5A, hold a public hearing and consider making 2 Again, we are changing language to identify some 3 recommendation to the Denton City Council of the following 3 of the architectural features that were reviewed during our 4 Items: Hold a public hearing to consider making recommendation 4 building permit applications. 5 to City Council regarding amendments to Subchapter 6, 12, 13 of 5 Item 3, accessory buildings and structure, general 6 the Denton Development Code. Ron. 6 regulations. This is, again, to clarify some of the standards 7 MR. MENGUITA: Thank you, Mr. Chair, members of 7 and regulations that are currently in the Code that need some 8 the Commission. These amendments included are to clarify 8 more attention to the actual reference. For example, this 9 standards of regulations that pertain to the SUP revocation, 9 right here, the combined square footage of the house and 10 yard measurements, accessory buildings and structure, standards 10 accessory structure cannot exceed the zoning district maximum 11 and regulations, expansion, applicability, preservation and .11 lot coverage listed in Subchapter 5. Subchapter 5 was not 12 mitigation table, screening of right-of-way drive-through use 12 included in the existing Code. Therefore, we are adding that. 13 requirements, lighting and glare performance requirements, 13 And that's the Subchapter that lists the lot coverage by zoning 14 refuse container screening, and site development requirements 14 districts. 15 for residential buildings. They are what we call quick hits, 15 Still within accessory structure, we are adding 16 hopefully. They are to, again, to clarify some of the 16 that accessory structures are prohibited in the front or side 17 standards that are either vaguely stated or are conflicting 17 yard. Therefore, accessory structures will only be allowed in 18 with other subsections of the Denton Development Code. 18 the rear yard of the property that are looking to put an 19 The first item is regarding SUP revocation. The 19 accessory structure. Accessory structures shall be no closer 20 issue here is that the current Code requires that an approved 20 than three feet to the property line. And three feet is the 21 building permit be issued prior to the SUP expiring within 18 21 minimum setback I am sorry yes, the minimum setback that 22 months. Not every SUP or project requires a building permit. 22 is required for you to place an accessory structure. 23 So there was a case where one did not, and therefore would be 23 Encroachment into corner easement is not 24 not applicable. So what we are proposing is to and this is 24 permitted. In addition, we are adding language to read no 25 not included I am sorry, this right here is included in the 25 portion of this structure, including roof overhangs, may 18 20 1 backup, the word expire, which was mentioned at a work session, 1 project into an easement. 2 will be included when it does move forward. But it was not 2 The last thing under accessory structure, we are 3 included in your current Staff report. 3 adding language to clarify what is referred to as 4 The proposed recommended new standard, the way it 4 architecturally compatible. "As proposed or recommended, all 5 will read is, "A specific use permit shall expire if all needed 5 accessory structures that require building permits shall be 6 permits for development are not obtained and construction has 6 architecturally compatible with the principal structure. The 7 not commenced within 24 months from date of approval, approval 7 following are examples used to determine compatibility, 8 of the specific use permit, unless a longer period is approved 8 including, but not limited to, roof pitch, construction 9 by City Council." Again, the intent is to make sure that the 9 material, color, and architectural details." 10 approved permits are applied for and attained within 24 months 10 The exhibit shown here is also in the current 11 of the SUP. It doesn't necessarily have to be a building 11 Code. And what you have here is red line strike-throughs of 12 permit. It just has to be that every permit required for that 12 text that we are planning to remove to help clarify what is a 13 development is applied for and has been attained. 13 rear yard, a side yard, as well as a front yard. Again, it is 14 Yard measurement, Item 2. This is the issue 14 more to clarify those specific locations within a particular 15 regarding architectural features and how much they can project 15 lot. 16 into the side and rear. This is really more of a 16 Item 4, expansion applicability. Currently, the 17 clarification. The proposal recommendation by Staff is to add 17 Code allows a nonresidential use to expand 1,000 square feet or 18 the last sentence here, and I am going to read the entire 18 25 percent, whichever is greater. However, it does not 19 section or standard, "Nonhabitable unenclosed architectural 19 describe or let you know if you are limited to just that. So 20 projections, such as porches, stairs, stoops, and awnings, may 20 someone could come in one year and get an expansion of 25 21 extend 7.5 feet into the required front yard setback, or 24 21 percent of its square footage. The next following year, or two 22 inches into the required side or rear yard setbacks. 22 years later, they can come back and expand another 25. So what 23 Projections of window sills, bay, or box windows, belt 23 we are trying to do is set a cumulative amount based on when 24 harnesses, and other projected architectural features, except 24 this Code was adopted, February 20th of 2008 1 am sorry - 25 for roof overhangs and eaves, shall not extend more than 12 25 2002. PLANNING AND ZONING PUBLIC SESSION SEPTEMBER 24, 2008 21 23 1 So it will read, "Nonresidential expansion. All 1 citywide. However, are excepting the banks from this, 2 buildings shall be required to adhere to the requirements of 2 primarily because some banks are located in a particular lot or 3 Subchapter 13 when the building expands 1,000 square feet, or 3 location which can't allow or doesn't give them the flexibility 4 25 percent, whichever is greater, from the original square 4 to locate a drive-through, and therefore allow them the option, 5 footage as of February 20th." So the square footage at the 5 if they would prefer, to locate a drive-through facility 6 time of February 20th can only expand 25 percent or 1,000 6 separate from the main structure of the main bank. 7 square feet. And, after that, it cannot expand any more than 7 Item 8, light and glare performance requirements. 8 that. 8 This is a conflict within a subsection of the Code, Subchapter 9 Item 5, preservation and mitigation requirement 9 13. It states that no light can have one foot-candle of 10 for infill lots. On May 1st, 2007 we added a Subchapter, or 10 illumination at a property line. However, in the same 11 subsection to Subchapter 7, for infill and special purpose 11 subsection, it also states that areas designated for pedestrian 12 districts. It also added definition of infill. And within 12 use shall provide a minimum of one foot-candle light of 13 that definition, infill lots were categorized as two acres or 13 Illumination. It is kind of hard to see. But if you had a 14 less. So an infill lot would have to be only two acres. 14 sidewalk on a property line, what are you supposed to do? Are 15 Now, there was a conflict within Subchapter 13 15 you supposed to have a half-foot or one-foot candle 16 that lists infill lots greater than two acres. So what we are 16 illumination? 17 recommending is to strike through those language that refers 17 So what we are trying to do here is to allow that 18 to infill lots above two acres. And that's shown here on this 18 it be a one foot-candle throughout the property where there is 19 exhibit. 19 a pedestrian walkway. And that's why, as you can read here, 20 Item 6, screening of right-of-way. There's been 20 light may not measure more than one-half foot-candle of 21 some confusion between developers, as well as Staff, when it 21 illumination at the property line, except as provided in C. So 22 reads one or both of the following shall I am sorry let 22 we are accepting C, where it says that you must have one foot- 23 me read what is currently in the Code. The current Code reads, 23 candle. And that's the conflict that I was referring to. 24 "Any combination of the following may be used." The way it 24 We, further, state that it is also excepted from 25 reads is that the combination there is only two items that 25 when state and Federal regulations apply. The latter part 22 24 1 you can choose. So now when you say any combination, that 1 refers to the land uses or I am sorry the orientation of 2 means you are looking at implementing two, I mean, because it 2 uses. Light levels to one-half foot-candle only applies to 3 says combination. That was a little confusing. So what Staff 3 nonresidential developments. These are shopping centers and 4 is proposing to do is to add language to read as follows: "One 4 industrial centers, businesses, and so forth that are adjacent 5 or both of the following shall be used." You have the option 5 to single family or multi-family. 6 of using one of those standards and I apologize, it is not 6 So, again, what we are trying to do here is 7 on this screen, but it is in your backup which is a 7 protect the single family and multi-family. However, give the 8 three-foot high wall, or a minimum ten-foot wide landscape area 8 commercial industrial and all these nonresidential some 9 planted with a large tree every 40 linear feet. 9 flexibility to have light where they are within, like, a 10 The idea is to give the developer, the Applicant, 10 shopping center. So, for example, if a particular parcel is in 11 the option of the three-foot high wall. Or, if they would 11 a shopping center adjacent to another one, it doesn't 12 like, to have a three-foot high wall, as well as a landscape 12 necessarily have to dim its light at the property line and then 13 buffer. They don't need to do two, but they can certainly do 13 start another illumination. What we are trying to do is allow 14 two if they prefer. Again, it is just more clarification. It 14 them to light that area at a level that's compatible within the 15 is, more or less, a wordsmith of how it reads. 15 shopping center. 16 Item 7, drive-through use requirements. The 16 Now, if it is adjacent to a residential, single 17 current Code establishes that drive-through use requirements 17 family or multi-family, they would need to dim their lights at 18 only pertain to pedestrian districts. However, the Code 18 that property line. Again, giving more flexibility but trying 19 defined pedestrian district any property within neighborhood 19 to meet the intent of the Code, and that is to protect the 20 and residential zoning district, or central business district, 20 single family and multi-family. 21 which is located within our downtown extending north and south. 21 Refuse container screening, Item 9. This is an 22 Staff is recommending that the requirements for 22 amendment to address the conflict between two subsections. The 23 drive-through uses apply citywide. These standards are 23 subsection in Subchapter 13 refers to I am going.to read 24 included in your backup and also shown here, A, B, and C. We 24 that for you. "Refuse containers or disposal areas shall be 25 are going to or proposing to include these requirements 25 screened from view by placement of a solid wood fence or PLANNING AND ZONING PUBLIC SESSION SEPTEMBER 24, 2008 25 27 1 masonry wall as tall as the refuse container, but not less than 1 originally was to do a little bit of wall, some landscape, 2 five feet in height." That is a conflict in a different 2 wall, in order to break it up so it wasn't a monotonous 3 subsection, which is part of the solid waste Subchapter or 3 frontage or screening. I'm thinking if we did write it in a 4 subsection which does not allow solid waste but also allows 4 way that said something in addition to the street tree 5 metal materials. And the minimum is six feet. So, as you can 5 requirements, the following shall be used. We say A, you know, 6 tell, which do we follow? 6 everything that's listed in A. B, everything that's listed in 7 So what we are proposing is that it will read 7 B. And then C, any combination of A and B. And, obviously, 8 the Code will read, "Refuse containers or disposal areas shall 8 how that's written, I think the idea was to be able to use a 9 be screened from view by placement of masonry or metal 9 chunk of A and then a chunk of B and not have the fence inside 10 materials." I think I have removed wall, which I should have 10 the landscape buffer. 11 not. So it should read, "Metal materials wail as tall as the 11 COMMISSIONER THOMAS: Don't you think that one or 12 refuse containers, but not less than six feet." So we are 12 both basically covers that? 13 consistent between two subsections, where it refers to refuse 13 MR. REICHHART: Well, if I. decide to do both, I 14 containers and also with solid waste subsection. 14 don't want Staff saying you have to use both continuously along 15 Lastly, site development requirements. This 15 the entire frontage. I want and the way it is written, it 16 pertains to the 40 percent of total frontage of garages. We 16 could be interpreted that it is both along the entire frontage. 17 are looking at proposing ]-swing garages. It is not listed on 17 And that's my concern. 18 there. There is some interpretation that needs to be done. 18 Regarding Item 7, the drive-through. If we are 19 With ]-swing garages, they are located in the front. However, 19 going to except banks, if it is good enough for a bank why 20 they are not facing the front. So the view of the garage door 20 wouldn't it be good enough for some other type of drive-through 21 is to the side. So we feel that Staff feels that adding 21 use? If you get the visual site line and all you have is the 22 swing garages into the measurement that does not apply to 22 tubes, what's the difference between bank drive-through and 23 garage facing is a good one. And that's what we are 23 some other, drive maybe fast food is a little bit different. 24 recommending. 24 And I question if the bank goes out of business or moves, can 25 That concludes my presentation. I understand 25 another business go in there and use that drive-through, 26 28 1 there is a lot there. If you have any questions, I am able to 1 because it is not a bank drive-through? I just think if it is 2 answer them at this time. 2 good enough for a bank, it should be good enough for any 3 CHAIRMAN WATKINS: All right. Thank you, Ron. 3 drive-through. 4 MR. MENGUITA: Thank you. 4 Regarding Item 8, lighting. The way it is 5 CHAIRMAN WATKINS: This is a public hearing, and 5 written, I think, either it is abutting nonresidential to 6 so I have one card from Lary Reichhart. 6 residential, and I am wondering if it includes if it is across 7 MR. REICHHART: Larry Reichhart, 1608 Fast 7 the street. The I think it was Quick Trip or I think it 8 Windsor. I do have a few issues on more typos or wordsmithing, 8 was the Race Track on Dallas Drive. When they opened up, they 9 I think. 9 shined unmercifully across the street. And Staff had to work 10 Item 1, with a specific use permit, the words, 10 with those folks to try to get additional landscaping put in 11 let's see, "all needed permits" seems a little wide open. I 11 across the street and a bunch of other stuff. So if it is just 12 mean, is that city permits? Federal permits?. State permits? 12 adjacent to, I worry that is the right-of-way considered across 13 It says all needed permits. It seems a little wide open to me. 13 the street. 14 Item 3, accessory buildings. The first one, the 14 And, additionally, now that it is on the 15 lot coverage is determined by dividing square footage. That 15 nonresidential adjacent to residential, if my neighbor puts a 16 definition is different than the definition of how you figure 16 floodlight up in his back yard, do I have no recourse to say it 17 out lot coverage in Subchapter 23. They probably should 17 is over a half foot-candle at the property line by taking out 18 both I can't help it if it is loud they probably should 18 the residential component? 19 both be the same, or that definition should be referred to 23 19 And the final one regarding the refuse, Item 9, I 20 or something. The two definitions are different. 20 think the term wall has to be in there. Otherwise, they could 21 Issue 6, screening at the right-of-way. The idea, 21 stack up a bunch of metal material and it would be good. 22 I think, the way it is written, one or both, I question do I 22 So that was it for me. If you have any questions, 23 have to have a three-foot wall within the ten-foot wide 23 I think the intent for all these is good, 24 landscape area? Or can I do 40 foot of wall and 40 foot of 24 CHAIRMAN WATKINS: Questions? 23 landscape to try to break it up? And the intent, I believe, 25 COMMISSIONER SCHAAKE: Could we get some could PLANNING AND ZONING PUBLIC SESSION SEPTEMBER 24, 2008 29 31 1 we ask Staff to help us with some of the suggestions as to 1 MR. MENGUITA: Item 6 where it talks about one or 2 whether there could be additional clarity provided to some of 2 both of the following shall be used. 3 the concerns that have been raised? 3 MR. DRAKE: Hang on a minute. Okay. All right. 4 CHAIRMAN WATKINS: Yes. I think we could. 4 Now, what's the comment? 5 MR. MENGUITA: To address the comments received 5 MR. MENGUITA: The comment from Mr. Reichhart is 6 under Item 1, the SUP application. I think the intent there Is 6 does both mean that you were to have a wall and a landscape 7 for all city permits. I think we had city. Hopefully, that 7 buffer within the same area? Or can that be wall and then next 8 will address Mr. Reichhart's comments on that one. 8 to it be the landscape buffer and so on? 9 COMMISSIONER SCHAAKE: Add city into that one is 9 MR. DRAKE: The way it is written here, it says 10 the suggestion from Staff? 10 shall be used. You know, to tell you the truth, I think it was 11 MR. MENGUITA: Yes. Correct. 11 clearer before, in my opin€on, to say any combination may be 12 COMMISSIONER THOMAS: Only city permits. 12 used. I don't think that the change, in my mind, clarifies .13 MR. MENGUITA: Correct. Item 2. Larry just 13 anything. I don't know. I guess people can differ it their 14 pointed out that is a conflict. What I suggest is maybe 14 opinions on it. 15 striking the last sentence and then the lot coverage definition 15 COMMISSIONER LYKE: I have a comment, but when you 16 would be in Subchapter 23, and we won't have a conflict. So 16 get there. 17 the suggestion that I have is to strike where it reads, "Lot 17 MR. MENGUITA: On which one? 18 coverage is determined by dividing the square footage of 18 COMMISSIONER LYKE: On 9. So go ahead. 19 structures by the lot square footage." If somebody wanted to 19 COMMISSIONER SCHAAKE: So you have changed Item 6 .20 know a lot coverage, they can refer to Subchapter 23. And that 20 by making it a restriction. But if you say one or both, I 21 is what we probably would like. 21 guess, the question was they can be happening at the same time 22 COMMISSIONER EAGLETON: Would you then put that in 22 in combination. So maybe Jerry has a point about the clarity 23 that soon? 23 being a combination. 24 MR. MENGUITA: We can refer to Subchapter 23 for a 24 COMMISSIONER KING: Either one. 25 definition of lot coverage. 25 MR. DRAKE: I think the key is changing may to 30 32 1 COMMISSIONER SCHAAKE: So you said we would put a 1 shall is where I think it really is. If you have the may, 2 reference? 2 either one of them gets you there. You say any combination may 3 MR. MENGUITA: Yes. What I will do, rather than 3 be used, or one or both of the following may be used. What 4 strike that and leave it as it is, what I will add is refer to 4 that says is you are permitted to have one of these two, or you 5 Subchapter 23 for the definition of lot coverage. 5 are permitted to have both of them. 6 Regarding Item 6, one or both of the following 6 MR. MENGUITA: I think Staff will be fine if we 7 shall be used. That really is an interpretation I see one way. 7 just remove the term shall. 8 I don't have any suggestions, unless the Commission has 8 MR. DRAKE: But you can't have zero. You have got 9 something they would like to see to address Mr. Reichhart's 9 to have one or you have got to have both. 10 comments. I still feel that one or both would allow someone to 10 COMMISSIONER THOMAS: Unless you keep the former 11 do a wall, and then maybe landscaping adjacent to it, and so 11 language of may. 12 on. That's how I read it. Unless there is any other item, I 12 MR. DRAKE: One or both may be used. Or any 13 prefer we keep It as it is. 13 combination may be used. 14 COMMISSIONER EAGLETON: It seems to me that would 14 COMMISSIONER THOMAS: May is a choice word. Shall 15 not be a problem. unless you were talking about an MPC or 15 is a commandment. 16 something which would have Its own 16 MR. DRAKE: You can use either of the two. You 17 MR. MENGUITA: Standards. 17 just can't elect to choose neither. 18 COMMISSIONER EAGLETON: Yeah, standards and 18 MR. CUNNINGHAM: How about if we simply say one or 19 guidelines. So that just doesn't seem like It would bean 19 a combination of both may be used? 20 issue to me. 20 COMMISSIONER THOMAS: So we are striking shall and 21 CHAIRMAN WATKINS: Your turn, Jerry. 21 putting may? 22 MR. DRAKE: I am sorry. I was focusing on this 22 MR. CUNNINGHAM: One or a combination of both may 23 other issue. You guys are going too fast for me. Okay. Catch 23 be used. 24 me up with where you are. 24 MR. DRAKE: Or a combination of both. That's kind 25 COMMISSIONER SCHAAKE: Screening of right-of-way. 25 of redundant. PLANNING AND ZONING PUBLIC SESSION SEPTEMBER 24, 2008 33 35 1 MR. CUN NINGHAM: You can do all wall, or all 1 shall. 2 landscaping, or wall and landscaping. 2 MR. MENGUITA: So one of the following shalf be 3 COMMISSIONER THOMAS: So you have three choices? 3 used. 4 COMMISSIONER SCHAAKE: Which is where we were with 4 COMMISSIONER SCHAAKE: Right. And C will be a 5 any combination may be used. 5 combination. 6 COMMISSIONER KING: A combination makes it appear 6 MR. MENGUITA: A combination. 7 that they are both required. It is almost there that either 7 COMMISSIONER SCHAAKE: Of A and B. 8 one or a combination of both. 8 MR. MENGUITA: Okay. Item 7, where Mr. Reichhart 9 MR. MENGUITA: I think that clears that up. 9 referred to banks and how we are excepting them. It is Staff's 10 MR. DRAKE: Why don't we just say either or both 10 recommendation that we can remove that exception and leave it 11 of the following may be used? 11 as is. Because we really haven't looked at other land uses at 12 COMMISSIONER KING: Either/or. 12 this time, or other entities. So if we were only identifying 13 COMMISSIONER THOMAS: That's the same thing. 13 banks, then I think it is unfair to move that forward without 14 MR. CUN NINGHAM: Six of one, half a dozen of the 14 looking at the others. 15 other. The intent is that you can either use all landscaping, 15 COMMISSIONER THOMAS: But a bank structure is 16 all walls, or landscaping and walls. So one or a combination 16 completely different from anything else that requires a 17 of both. Or how Jerry said it. 17 drive-through. And use of a bank for a different type of 18 COMMISSIONER THOMAS: There you go. 18 drive-in purposes at a later time would be kind of hard. Not .19 MR. MENGUITA: So what it is going to read is, 19 to be cute, but it is really hard to get a burger or a shirt 20 "One or a combination of both of the following may be used." 20 through a bank drive-through. 21 MR. DRAKE: Again, combination of both is 21 MR. MENGUITA: I guess Staffs reason is we 22 redundant. If you are saying both, by definition that is a 22 haven't really explored that. So we are leaving it out at this 23 combination. I mean; so why would you ever say 23 time, is Staff's recommendation. However, that is just Staffs 24 MR. CUNNINGHAM; Not necessarily. If you say one 24 recommendation 25 or a combination, you are saying okay. I see what you are 25 COMMISSIONER THOMAS: Taking It out? 34 36 1 saying. Gotcha. You are right. 1 MR. MENGUITA: Taking out except for banks. But 2 MR. DRAKE: So if you say one or both, or either 2 it is the Commission's choice how you want to approach it. 3 or both 3 COMMISSIONER SCHAAKE: Isn't it also possible that 4. MR, CUN NINGHAM: At the same time, if we say may, 4 there are a few other components of this Subchapter that are 5 it is saying that you don't have to use it. 5 coming back, If Staff wants some time to think about this 6 COMMISSIONER LYKE: I think we need to say shall. 6 exception and other uses? 7 MR. DRAKE: I w€ll certainly defer to the will of 7 MR. MENGUITA: We can pull this. 8 the Commission. But I think when you say may, is that you are 8 COMMISSIONER SCHAAKE: We can pull this one piece 9 permitting either use of one or the use of both, you know, to 9 and bring it back with the others that are going to come at a 10 be used. But if you feel it is clearer to say shall, then 10 later time, so that we aren't quickly approving somebody and 11 COMMISSIONER EAGLETON: If you don't use shall, 11 then realizing that we should have considered it a little more 12 you leave it open to not using any. 12 in depth. 13 COMMISSIONER LYKE: You may or you may not. 13 MR. MENGUITA: And we can look into other uses, if 14 MR. DRAKE: Well, yeah. The may is your choice 14 there are any, that also qualify for this exception. 15 between either or both, the way it is written. But, you know, 1s COMMISSIONER SCHAAKE: I think that would be good. 16 certainly you can say shall. 16 MR. MENGUITA: Okay. 17 COMMISSIONER SCHAAKE: Well, I believe there is 17 COMMISSIONER SCHAAKE: So remove Item 7. 18 also a suggestion of A, B, and C. And C was a combination of 18 MR. MENGUITA: Item 8, the term adjacent. I think 19 both. And then you would say one of the following shall be 19 we can change that to abutting. So that now it only refers to 20 used. 20 lots that are abutting each other, rather than the example that 21 MR. DRAKE: I guess both A and B. 21 Mr. Reichhart had stated. If there is a street, I mean, across 22 COMMISSIONER SCHAAKE: So C is a combination. I 22 the street can be adjacent. But abutting would not qualify 23 think that would save us from the 23 across the street. It would be not the same. Does that make 24 MR. CUNNINGHAM: That's why you are a professor. 24 sense? We will change the term adjacent to abutting. Abutting 25 COMMISSIONER SCHAAKE: Then we can go back to 25 would mean a property that shares the same property line. PLANNING AND ZONING PUBLIC SESSION SEPTEMBER 24, 2008 37 39 1 MR. DRAKE: So when they abut is what you are 1 MR. DRAKE: Well, maybe what we could do is just 2 intending? 2 leave the adjacency language in there and add a sentence for 3 MR. MENGUITA: That's correct. 3 the purposes of this section that adjacent includes.lots that 4 COMMISSIONER SCHAAKE: Was that the concern that 4 are across a public street from, or something of that --would 5 Mr. Reichhart noted? 5 that suffice for now? It may not be the most elegant way of 6 MR. DRAKE: I don't think so. Yeah, I think he is 6 doing it, but it would at least advance the ball. 7 talking about the opposite case, where if there is a 7 COMMISSIONER SCHAAKE: In a forward direction. 8 residential neighborhood across the street from the 8 MR. DRAKE: And we can work on it some more. If 9 development, that the glare from that development can still be 9 there is a more elegant way to say the same thing. 10 disturbing to the neighborhood. And so I think, If I 10 COMMISSIONER THOMAS: Across the street from, 11 understand Mr. Reichha rt correctly, he was wanting to say if it 11 would that be flowery enough for 12 is not abutting, but merely across the street from, that you 12 MR. DRAKE: It is plenty flowery for me. 13 may have to be sensitive to these needs in that circumstance, 13 MR. MENGUITA: We will make that change and shore 14 as well. 14 it up with legal to also include the properties across the 15 MR. REICHHART: That's correct. 15 street, as well. 16 MR. DRAKE: I think was taking adjacent to mean 16 MR. DRAKE: Yeah. 17 the same as abutting in that context. 17 COMMISSIONER SCHAAKE: If you do that so it 18 COMMISSIONER SCHAAKE: And I agree. And I think 18 satisfies the intent and keep it within legal, that would be 19 that the example that was given, where you could have an 19 fine. 20 establishment go in across the street and cause a great deal of 20 MR. MENGUITA: The last item I commented on was 21 disruption to the residence. So I think that it would behoove 21 the term wall. It was inadvertently deleted or struck through. 22 us to think about this and state it a little differently to 22 We will keep that 23 prevent that from happening. 23 COMMISSIONER LYKE: I would like to make a 24 MR. DRAKE: Maybe one of the things that we could 24 different suggestion. Is that structure called something like 2.5 look at I noted this comes up in other contexts is that 25 revetment? I 38 40 1 we make huge effort in - actually, I am looking at some zoning 1 MR. MENGUITA: That's correct. 2 ordinances as we were working tonight. We make a big effort to 2 COMMISSIONER LYKE: Can we say replacement of a 3 say that we rezoned a particular lot, but the rezoning goes to 3 revetment consisting of masonry or metal materials as tall as a 4 the center of the street. So that even beneath the street, you 4 refuse container? Would that work? 5 could theoretically have two different zoning uses under the 5 MR. MENGUITA: Read it one more time. 6 street that are never used. 6 COMMISSIONER LYKE: It would be refuse containers 7 Maybe we could have something in the Code to look 7 or disposal areas shall be screened from view by placement of a 8 at in the future to describe adjacency and what standards 8 revetment consisting of masonry or metal materials, et cetera. 9 apply. And rather than focus too heavily on whether the word 9 Does that work? 10 abut or whether the word adjacent is the more correct one, we 10 COMMISSIONER SCHAAKE: Is that simply a word that 11 would have something more general that we could take a look at 11 means wall? 12 in the future. 12 COMMISSIONER LYKE: I think it is the official 13 COMMISSIONER THOMAS: What language did we look at 13 word for that thing. 14 in the infill development? Because we referred to a property 14 MR. MENGUITA: Referring to the enclosure. 15 across the street in that. So that's a similar type of 15 MR. DRAKE: It is not merely a wall, but It is the 16 verbiage, whatever words we used there should apply. 16 enclosure, itself. It is a walled enclosure that you typically 17 MR. DRAKE: Do you remember what context that was 17 see around these dumpsters. I am looking to see if.it may 18 in? I have got the standards here. 18 already be defined. 19 MR. MENGUITA: Subchapter 7. 19 MR. CUNNINGHAM: I don't appose to the word 20 MR. DRAKE: It says 14, but I don't know what 20 revetment. But if we are going to use it, we need to have a 21 section we are referring to. 21 definition for it in the definition section, so in the future 22 MR. MENGUITA: I think if you go to the 22 there won't be any discussion on ambiguity or argument on what 23 definitions, Subchapter 23 may have it. It is also, I believe, 23 Is a revetment and what is not a revetment. 24 defined in under Item 5 of the backup where we talk about 24 MR. DRAKE: That's not something that's Included 25 infill lots. Contiguous is the term. 25 In Subchapter 23, general definition section, so - PLANNING AND ZONING PUBLIC SESSION SEPTEMBER 24, 2008 41 43 1 MR. CUNNINGHAM: So we can use revetment, but add 1 to Subchapter 23 for definition. I mean, there is any number 2 a definition to it. 2 of different ways of doing it. A lot of the codifiers we 3 MR. DRAKE: Well, maybe what we can do is we can 3 are trying to get this Code codified by the Municipal Code 4 verify that the word revetment is uniquely defined as enclosure 4 Corporation. And we like to try to keep their editorial 5 around the dumpster, or something of that nature. If not, we 5 references for the whole Code in a consistent fashion. 6 will add one to mean that. 6 So I think there is a desire to not tie their 7 Actually, I need to go back a minute to, let's 7 hands in that regard by specifying particular verbiage for a 8 see, Item No. 3. And this goes back to something that I raised 8 reference that all we really mean to do was to refer the user 9 in the work session earlier, where we have the reference back 9 to Subchapter 23. We don't really care how they do it. But 10 to Subchapter 23 for the definitions and, you know, at some 10 what we really intend is for there to be an immediate reference 11 point some smart aleck may change Subchapter 23 to Subchapter 11 to it. 12 29, or something of that nature. And rather than having that 12 COMMISSIONER SCHAAKE: And that chapter is a 13 be a part of the ordinance, itself, if we could, you know, have 13 definitions chapter? 14 that be at least a parenthetical, or like an asterisk footnote 14 MR. DRAKE: Right. 15 that is sort of an editorial reference back to Subchapter 23 15 COMMISSIONER SCHAAKE: So I think you should say 16 for the appropriate definitions. 16 what it is so they know that you are sending somebody to 17 COMMISSIONER THOMAS: Were footnotes allowed in 17 definitions. 18 these? 18 MR. DRAKE: Okay. 19 MR. DRAKE: Sure. 19 COMMISSIONER SCHAAKE: Then it means that that's 20 COMMISSIONER SCHAAKE: It could be a footnote, but 20 what you are looking for, is the definition, as long as you are 21 couldn't it, also, be defined here? 21 writing the footnote. 22 MR. MENGUITA: Just put the definition. 22 MR. MENGUITA: So Staff is recommending that we i 23 COMMISSIONER SCHAAKE: Put the definition from 23 approve recommend approval for all Items except for Item 7. 24 Subchapter 23 so we don't have to keep floating back and forth. 24 COMMISSIONER THOMAS: With the necessary changes. 25 MR. DRAKE: If you do that, and somebody changes 25 MR. MENGUITA: With the necessary yes. 42 44 1 the definition in one spot, I can almost guarantee you that it 1 CHAIRMAN WATKINS: I would like to ask if there 2 won't be caught for the other one. And that's the danger. And 2 was anyone else that had anything on this public hearing for or 3 we see it happen all the time. I mean, I understand the 3 against? Anyone else that has to speak for or against? 4 concern. I understand the desire to do that. 4 Okay. I will close the public hearing and 5 But, honestly, it does happen where you start off 5 discussion. 6 with the same requirement, or the same definition be contained 6 COMMISSIONER THOMAS: In light of that, I would 7 in two different places. And then the next thing you know, it 7 recommend approval of these changes, with the exception of 8 is exactly as Larry pointed out. Somebody tried to change 8 omitting is it Item 7? 9 this definition here by putting in that second sentence. And, 9 COMMISSIONER SCHAAKE: Item 7. 10 fortunately, Larry was here to catch that it was inconsistent 10 COMMISSIONER THOMAS: For the time being. 11 with Subchapter 23. And if he weren't here, it would have 11 COMMISSIONER SCHAAKE: I second. 12 happened that we would have had two inconsistent definitions. 12 COMMISSIONER THOMAS: I feel I need to put that 13 So that's really illustrates very well why we really 13 extra little bit in there, with the discussed changes that we 14 shouldn't have, you know, hard call definitions in two 14 pontificated on for the last 15 minutes. 15 different locations, if we can avoid it. 15 COMMISSIONER SCHAAKE: I do second. 16 COMMISSIONER SCHAAKE: So we can avoid it by using 16 CHAIRMAN WATKINS: Second? I have a motion and a 17 a footnote? 17 second to approve, with the exception of Item 7 and the changes 18 MR. DRAKE: Yeah. Some kind of an editorial 18 that were made. Please vote on the board. Someone yours 19 footnote that's not a part of the Code, itself, But when it is 19 didn't take. 20 published, when it is printed, what have you, that we have an 20 COMMISSIONER SCHAAKE: It didn't catch? 21 editorial footnote so that the user of the ordinance will be 21 CHAIRMAN WATKINS: There it is. Six to zero. It 22 directed to Subchapter 23 for the definition. 22 passes. Thank you. 23 COMMISSIONER THOMAS: So the actual language you 23 I'm down to future agenda. Anyone have anything 24 want to say is for reference, see Subchapter 23? 24 for Staff? Staff have anything for us? I shall consider us 25 MR. DRAKE: That could be. It could be just refer 25 adjourned. Thank you for coming. PLANNING AND ZONING PUBLIC SESSION SEPTEMBER 24, 2008 45 1 (Adjourned at 7:47 p.m.) 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 10 19 20 21 22 23 24 25 PLANNING AND ZONING PUBLIC SESSION SEPTEMBER 24, 2008 AGENDA INFORMATION SHEET AGENDA DATE: June 2, 2009 DEPARTMENT: Parks and Recreation ACM: Fred Greene SUBJECT Consider a request for an exception to the Noise Ordinance for the purpose of performing live jazz music during the grand opening of the Sweet Y Cafe and Catering. The event will be held at 511 Robertson Street on Friday, June 20, 2009, beginning at 7:30 p.m. and concluding at 11:00 p.m. The request is to extend the hours of operation one hour, from 10:00 p.m. to 11:00 p.m., for the evening concert. There is not a request to increase the decibels. The amplified sound will remain at the allowable 65 decibels. BACKGROUND This is a first time request for Mr. Billy Redmon to have live jazz music playing during their restaurant's grand opening. The music will be performed in the outdoor patio area. Mr. Redmon was asked to secure approval from the neighboring area for the extended hours. RECOMMENDATION Staff recommends approving the noise exception request. EXHIBITS 1. Letter of Request 2. Map of Restaurant Setup 3. Aerial Map of Surrounding Neighborhood Respectfully submitted: Emerson Vorel, Director Parks and Recreation Department Prepared by: Community Events Coordinator t ~ ~ C'A~FE & ~ATERiN~ ~v ~ ~~~~~~~HI wu~`, 511 R+~bertsvn st. D~ntvn, Texas 7~~a5 day 1 ~~~Qg ~~a-~~~-~~ai [dear L~ayar and ~entan city cauncil members, we at the Sweet Y cafe and catering respectfully ask far a name exce~~ptian far our new business Saturday June ~0, Zaa9 from the hears of 7:3(l pm to iipm. we are planning a small autdaar gathering between .~a-lea peaple listening to dues and jazz music. we have a large concrete paved patio area where we will have chairs and tables setup far peaple to sit and listen to jazz music. we will net be playing any laud or offensive music ar language. Aber 11pm the band will step playing music and we will remove all tables and chairs and the gathering will be concluded. I have taken a phatagraph of our lacatian and where the band and peaple will be pasitianed. If you have any questions I will be rnare than happy to answer any ~questians. 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IablJr d - ~ r p.'~ N ~~~'~^T~ ~ L y i T~" ...i f i Y ~ ~ti~'~1+ Sweet Y Cafe & Catering e Noise Exception Request . ~I~~ May 15, 2009 0 155 310 620 930 1,2Feet , AGENDA INFORMATION SHEET AGENDA DATE: June 2, 2009 Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Curt Arndt 349-7342 ACM: Jon Fortune SUBJECT Consider adoption of an Ordinance accepting competitive bids and awarding an annual contract for the purchase of various sizes of traffic poles for the Traffic Control division for the City of Denton; providing for the expenditure of funds therefor; and providing an effective date (Bid 4305-Annual Contract for Traffic Signal Poles awarded to Structural and Steel Products, Inc. in the annual estimated amount of $750,000). BID INFORMATION The traffic signal poles and accessories will be ordered as needed for Capital Improvement Projects including the intersections of Carroll Boulevard and Oak Street and Carroll Boulevard and Congress Street. The poles will also be used to replace damaged poles when needed. Bids were solicited from 21 qualified traffic supply products providers including nine pole manufacturers. We received one bid, four no bids and the others were non responsive. Upon additional investigation, we determined two manufacturers are no longer in the traffic pole business, one is not producing due to litigation and one did not prepare a bid in time to respond. The others simply do not sell poles-only other traffic related supplies. Based upon last year's contract, the prices offered by Structural and Steel Products, Inc. are competitive. RECOMMENDATION Award to Structural and Steel Products, Inc. in the unit price amounts shown on Exhibit A of the ordinance for an annual estimated amount of $750,000. PRINCIPAL PLACE OF BUSINESS Structural and Steel Products, Inc. Fort Worth, TX ESTIMATED SCHEDULE OF PROJECT This price agreement will be in effect for a period of one year from the date of award and may be extended for additional one-year periods if agreed to by both parties with all pricing, terms and conditions remaining the same. Agenda Information sheet June 2, 2009 Page 2 FISCAL INFORMATION Replacement of damaged poles will be funded from account 352001.6520. Installation of new poles relating to Capital Improvement Projects will be funded from the appropriate project account at the time the installation occurs. EXHIBITS Exhibit 1: Bid Tabulation Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent 1-AIS-Bid 4305 EXHIBIT 1 BID #4305 DATE: May 7, 2009 Annual Contract for Traffic Signal Poles EST. ITEM ANN. UOM DESCRIPTION VENDOR QTY. Structural & Steel Products, Inc. Principle Place of Business: Fort Worth, TX SECTION A: ZINC COATING ONLY ITEMS 1 - 51 REPLACEMENT MAST ARM 1 4 EA VERTICAL POLE, COMBINATION $2,286.00 30' POLE, 17" BOLT CIRCLE, FOR A 30-A FOOTING 2 2 EA MAST ARM 10', RIGID MOUNTED $631.00 3 2 EA MAST ARM 15', RIGID MOUNTED $649.00 4 2 EA MAST ARM 20', RIGID MOUNTED $662.00 5 2 EA MAST ARM 25', RIGID MOUNTED $853.00 6 2 EA MAST ARM 30', RIGID MOUNTED $997.00 7 2 EA MAST ARM 32', RIGID MOUNTED $946.00 8 4 EA LUMINAIRE ARM FOR $269.00 REPLACEMENT POLE, ITEM 1 9 4 EA ILSN ARM FOR REPLACEMENT $888,00 POLE, ITEM 1 ABOVE 10 4 EA BASE COVER FOR REPLACEMENT $182.00 POLE, ITEM 1 ABOVE ANCHOR BOLTS, SET OF 4 WITH 11 4 EA HARDWARE AND TEMPLATES FOR $217.00 REPLACEMENT POLE, ITEM 1 ABOVE REPLACEMENT MAST ARM 12 4 EA VERTICAL POLE, COMBINATION $2,839.00 35' POLE, 19" BOLT CIRCLE, FOR A 36-A FOOTING 13 2 EA MAST ARM 35', RIGID MOUNTED $1,071.00 14 2 EA MAST ARM 40', RIGID MOUNTED $1,385.00 15 2 EA MAST ARM 45', RIGID MOUNTED $1,800.00 16 2 EA MAST ARM 48', RIGID MOUNTED $1,816.00 EXHIBIT 1 EST. ITEM ANN. UOM DESCRIPTION VENDOR QTY. Structural & Steel Products, Inc. Principle Place of Business: Fort Worth, TX 17 4 EA LUMINAIRE ARM FOR $269.00 REPLACEMENT POLE, ITEM 12 18 4 EA ILSN ARM FOR REPLACEMENT $888,00 POLE, ITEM 12 ABOVE 19 4 EA BASE COVER FOR REPLACEMENT 5185.00 POLE, ITEM 12 ABOVE ANCHOR BOLTS, SET OF 4 WITH 20 4 EA HARDWARE AND TEMPLATES FOR 5338.00 REPLACEMENT POLE, ITEM 12 ABOVE 21 4 EA ALTERNATE 1 MAST ARM 53,873.00 VERTICAL POLE 22 2 EA MAST ARM 10', RIGID MOUNTED 5554.00 23 2 EA MAST ARM 15', RIGID MOUNTED 5667.00 24 2 EA MAST ARM 20', RIGID MOUNTED 5771.00 25 2 EA MAST ARM 25', RIGID MOUNTED 5933.00 26 2 EA MAST ARM 30', RIGID MOUNTED 51,050.00 27 2 EA MAST ARM 35', RIGID MOUNTED 51,450.00 28 4 EA VERTICAL POLE LUMINAIRE 81,262.00 SECTION FOR ITEM 21 ABOVE 29 4 EA ILSN ARM FOR ITEM 21 ABOVE 5888.00 LUMINAIRE TRUSS FOR 30 4 EA ALTERNATE POLE, ITEM 21 5969.00 ABOVE 31 4 EA BASE COVER FOR ALTERNATE 5231.00 POLE, ITEM 21 ABOVE ANCHOR BOLTS, SET OF 4 WITH 32 4 EA HARDWARE AND TEMPLATES FOR 5460.00 ALTERNATE POLE, ITEM 21 ABOVE 33 8 EA STANDARD MAST ARM, VERTICAL $6,312.00 POLE 34 2 EA MAST ARM 10', FOR ITEM 33 5554.00 35 2 EA MAST ARM 15', FOR ITEM 33 5667.00 EXHIBIT 1 EST. ITEM ANN. UOM DESCRIPTION VENDOR QTY. Structural & Steel Products, Inc. Principle Place of Business: Fort Worth, TX 36 2 EA MAST ARM 20', FOR ITEM 33 5771.00 37 2 EA MAST ARM 25', FOR ITEM 33 5983.00 38 2 EA MAST ARM 30', FOR ITEM 33 SI,050.00 39 2 EA MAST ARM 35', FOR ITEM 33 53,427.00 40 2 EA OUTBOARD SECTION FOR ITEM 39 5758.00 TO EQUAL A 40' ARM 41 2 EA OUTBOARD SECTION FOR ITEM 39 $826.00 TO EQUAL A 45' ARM 42 2 EA OUTBOARD SECTION FOR ITEM 39 $875.00 TO EQUAL A 50' ARM 43 2 EA OUTBOARD SECTION FOR ITEM 39 5903.00 ITO EQUAL A 55' ARM 44 2 EA OUTBOARD SECTION FOR ITEM 39 5937.00 TO EQUAL A 60' ARM 45 2 EA OUTBOARD SECTION FOR ITEM 39 SI,073.00 TO EQUAL A 65' ARM 46 2 EA OUTBOARD SECTION FOR ITEM 39 51,089.00 TO EQUAL A 70' ARM 47 8 EA VERTICAL POLE LUMINAIRE SI,619.00 SECTION FOR ITEM 33 ABOVE 48 8 EA ILSN ARM FOR ITEM 33 ABOVE 5840.00 49 8 EA LUMINAIRE TRUSS FOR $880.00 STANDARD POLE, ITEM 33 ABOVE 50 8 EA BASE COVER FOR STANDARD 5424.00 POLE, ITEM 33 ABOVE ANCHOR BOLTS, SET OF 4 WITH 51 8 EA HARDWARE AND TEMPLATES FOR 5917.00 STANDARD POLE, ITEM 33 ABOVE SECTION B: POWDER COATING ONLY (ITEMS 52 - 102) EXHIBIT 1 EST. ITEM ANN. UOM DESCRIPTION VENDOR QTY. Structural & Steel Products, Inc. Principle Place of Business: Fort Worth, TX REPLACEMENT MAST ARM 52 4 EA VERTICAL POLE, COMBINATION $2,677.00 35' POLE, 17" BOLT CIRCLE, FOR A 30-A FOOTING 53 2 EA MAST ARM 10', RIGID MOUNTED 5783.00 54 2 EA MAST ARM 15', RIGID MOUNTED 5826.00 55 2 EA MAST ARM 20', RIGID MOUNTED 5865.00 56 2 EA MAST ARM 25', RIGID MOUNTED 51,125.00 57 2 EA MAST ARM 30', RIGID MOUNTED 51,332.00 58 2 EA MAST ARM 32', RIGID MOUNTED 51,455.00 LUMINAIRE ARM FOR 59 4 EA REPLACEMENT POLE, ITEM 52 5306.00 ABOVE 60 4 EA ILSN ARM FOR REPLACEMENT 5926.00 POLE, ITEM 52 ABOVE 61 4 EA BASE COVER FOR REPLACEMENT $229.00 POLE, ITEM 52 ABOVE ANCHOR BOLTS, SET OF 4 WITH 62 4 EA HARDWARE AND TEMPLATES FOR $217.00 REPLACEMENT POLE, ITEM 52 ABOVE REPLACEMENT MAST ARM 63 4 EA VERTICAL POLE, COMBINATION 53,320.00 35' POLE, 19" BOLT CIRCLE, FOR A 36-A FOOTING 64 2 EA MAST ARM 35', RIGID MOUNTED 51,455.00 65 2 EA MAST ARM 40', RIGID MOUNTED 51,789.00 66 2 EA MAST ARM 45', RIGID MOUNTED 52,387.00 67 2 EA MAST ARM 48', RIGID MOUNTED 52,417.00 LUMINAIRE ARM FOR 68 4 EA REPLACEMENT POLE, ITEM 63 5306.00 ABOVE EXHIBIT 1 EST. ITEM ANN. UOM DESCRIPTION VENDOR QTY. Structural & Steel Products, Inc. Principle Place of Business: Fort Worth, TX 69 4 EA ILSN ARM FOR REPLACEMENT $926.00 POLE, ITEM 63 ABOVE 70 4 EA BASE COVER FOR REPLACEMENT $233.00 POLE, ITEM 63 ABOVE ANCHOR BOLTS, SET OF 4 WITH 71 4 EA HARDWARE AND TEMPLATES FOR $338.00 REPLACEMENT POLE, ITEM 63 ABOVE 72 4 EA ALTERNATE 1 MAST ARM $4,357.00 VERTICAL POLE 73 2 EA MAST ARM 10', RIGID MOUNTED $700.00 74 2 EA MAST ARM 15', RIGID MOUNTED $856.00 75 2 EA MAST ARM 20', RIGID MOUNTED $1,002.00 76 2 EA MAST ARM 25', RIGID MOUNTED $1,229.00 77 2 EA MAST ARM 30', RIGID MOUNTED $1,416.00 78 2 EA MAST ARM 35', RIGID MOUNTED $1,894.00 79 4 EA VERTICAL POLE LUMINAIRE $1,563.00 SECTION FOR ITEM 72 ABOVE 80 4 EA ILSN ARM FOR ITEM 72 ABOVE $926.00 LUMINAIRE TRUSS FOR 81 4 EA ALTERNATE POLE, ITEM 72 $1,045.00 82 4 EA BASE COVER FOR ALTERNATE $266.00 POLE, ITEM 72 ABOVE ANCHOR BOLTS, SET OF 4 WITH 83 4 EA HARDWARE AND TEMPLATES FOR $460.00 ALTERNATE POLE, ITEM 72 ABOVE 84 8 EA STANDARD MAST ARM, VERTICAL $6,840.00 POLE 85 2 EA MAST ARM 10', FOR ITEM 84 $700.00 ABOVE 86 2 EA MAST ARM 15', FOR ITEM 84 $856.00 ABOVE 87 2 EA MAST ARM 20', FOR ITEM 84 $1,002.00 ABOVE 88 2 EA MAST ARM 25', FOR ITEM 84 $1,229.00 ABOVE EXHIBIT 1 EST. ITEM ANN. UOM DESCRIPTION VENDOR QTY. Structural & Steel Products, Inc. Principle Place of Business: Fort Worth, TX 89 2 EA MAST ARM 30', FOR ITEM 84 $1,416.00 ABOVE 90 2 EA MAST ARM 35', FOR ITEM 84 $4,019.00 ABOVE 91 2 EA OUTBOARD SECTION FOR ITEM 90 $950.00 TO EQUAL A 40' ARM 92 2 EA OUTBOARD SECTION FOR ITEM 90 $1,067.00 TOE UAL A 45' ARM 93 2 EA OUTBOARD SECTION FOR ITEM 90 $1,175.00 94 2 EA OUTBOARD SECTION FOR ITEM 90 $1,260.00 ITO EQUAL A 55' ARM 95 2 EA OUTBOARD SECTION FOR ITEM 90 $1,346.00 ITO EQUAL A 60' ARM 96 2 EA OUTBOARD SECTION FOR ITEM 90 $1,579.00 TO EQUAL A 65' ARM 97 2 EA OUTBOARD SECTION FOR ITEM 90 $1,585.00 TO EQUAL A 70' ARM 98 8 EA VERTICAL POLE LUMINAIRE $2,059.00 SECTION FOR ITEM 84 ABOVE 99 8 EA ILSN ARM FOR ITEM 84 ABOVE $877.00 100 8 EA LUMINAIRE TRUSS FOR $956.00 STANDARD POLE, ITEM 84 ABOVE 101 8 EA BASE COVER FOR STANDARD $443.00 POLE, ITEM 84 ABOVE ANCHOR BOLTS, SET OF 4 WITH 102 8 EA HARDWARE AND TEMPLATES FOR $917.00 STANDARD POLE, ITEM 84 ABOVE Shipment can be made within 84 Ida vs from receipt of order. Authorized distributor by the YES manufacturer? YES NO N/A *Prices shall be bid F.O.B. Denton ORDINANCE NO. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING AN ANNUAL CONTRACT FOR THE PURCHASE OF VARIOUS SIZES OF TRAFFIC POLES FOR THE TRAFFIC CONTROL DIVISION FOR THE CITY OF DENTON; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (BID 4305-ANNUAL CONTRACT FOR TRAFFIC SIGNAL POLES AWARDED TO STRUCTURAL AND STEEL PRODUCTS, INC. IN THE ANNUAL ESTIMATED AMOUNT OF $750,000). 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 therefor; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The numbered items in the following numbered bids for materials, equipment, supplies, or services, shown in the "Bid Proposals" on file in the office of the City Purchasing Agent, are hereby accepted and approved as being the lowest responsible bids for such items: BID ITEM NUMBER NO VENDOR AMOUNT 4305 1-102 Structural and Steel Products, Inc. Exhibit A SECTION 2. By the acceptance and approval of the above numbered items of the submitted bids, the City accepts the offer of the persons submitting the bids for such items and agrees to pur- chase 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 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. SECTION 4. 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 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this day of , 2009. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: 3-ORD-BID 4305 EXHIBIT A BID #4305 DATE: May 7, 2009 Annual Contract for Traffic Signal Poles EST. ITEM ANN. UOM DESCRIPTION VENDOR QTY. Structural & Steel Products, Inc. Principle Place of Business: Fort Worth, TX SECTION A: ZINC COATING ONLY ITEMS 1 - 51 REPLACEMENT MAST ARM 1 4 EA VERTICAL POLE, COMBINATION $2,286.00 30' POLE, 17" BOLT CIRCLE, FOR A 30-A FOOTING 2 2 EA MAST ARM 10', RIGID MOUNTED $631.00 3 2 EA MAST ARM 15', RIGID MOUNTED $649.00 4 2 EA MAST ARM 20', RIGID MOUNTED $662.00 5 2 EA MAST ARM 25', RIGID MOUNTED $853.00 6 2 EA MAST ARM 30', RIGID MOUNTED $997.00 7 2 EA MAST ARM 32', RIGID MOUNTED $946.00 8 4 EA LUMINAIRE ARM FOR $269.00 REPLACEMENT POLE, ITEM 1 9 4 EA ILSN ARM FOR REPLACEMENT $888.00 POLE, ITEM 1 ABOVE 10 4 EA BASE COVER FOR REPLACEMENT $182.00 POLE, ITEM 1 ABOVE ANCHOR BOLTS, SET OF 4 WITH 11 4 EA HARDWARE AND TEMPLATES FOR $217.00 REPLACEMENT POLE, ITEM 1 ABOVE REPLACEMENT MAST ARM 12 4 EA VERTICAL POLE, COMBINATION $2,839.00 35' POLE, 19" BOLT CIRCLE, FOR A 36-A FOOTING 13 2 EA MAST ARM 35', RIGID MOUNTED $1,071.00 14 2 EA MAST ARM 40', RIGID MOUNTED $1,385.00 15 2 EA MAST ARM 45', RIGID MOUNTED $1,800.00 16 2 EA MAST ARM 48', RIGID MOUNTED $1,816.00 EXHIBIT A EST. ITEM ANN. UOM DESCRIPTION VENDOR QTY. Structural & Steel Products, Inc. Principle Place of Business: Fort Worth, TX 17 4 EA LUMINAIRE ARM FOR $269.00 REPLACEMENT POLE, ITEM 12 18 4 EA ILSN ARM FOR REPLACEMENT $888.00 POLE, ITEM 12 ABOVE 19 4 EA BASE COVER FOR REPLACEMENT $185.00 POLE, ITEM 12 ABOVE ANCHOR BOLTS, SET OF 4 WITH 20 4 EA HARDWARE AND TEMPLATES FOR $338.00 REPLACEMENT POLE, ITEM 12 ABOVE 21 4 EA ALTERNATE 1 MAST ARM $3,873.00 VERTICAL POLE 22 2 EA MAST ARM 10', RIGID MOUNTED $554.00 23 2 EA MAST ARM 15', RIGID MOUNTED $667.00 24 2 EA MAST ARM 20', RIGID MOUNTED $771.00 25 2 EA MAST ARM 25', RIGID MOUNTED $933.00 26 2 EA MAST ARM 30', RIGID MOUNTED $1,050.00 27 2 EA MAST ARM 35', RIGID MOUNTED $1,450.00 28 4 EA VERTICAL POLE LUMINAIRE $1,262.00 SECTION FOR ITEM 21 ABOVE 29 4 EA ILSN ARM FOR ITEM 21 ABOVE $888.00 LUMINAIRE TRUSS FOR 30 4 EA ALTERNATE POLE, ITEM 21 $969.00 ABOVE 31 4 EA BASE COVER FOR ALTERNATE $231.00 POLE, ITEM 21 ABOVE ANCHOR BOLTS, SET OF 4 WITH 32 4 EA HARDWARE AND TEMPLATES FOR $460.00 ALTERNATE POLE, ITEM 21 ABOVE 33 8 EA STANDARD MAST ARM, VERTICAL $6,312.00 POLE 34 2 EA MAST ARM 10', FOR ITEM 33 $554.00 35 2 EA MAST ARM 15', FOR ITEM 33 $667.00 EXHIBIT A EST. ITEM ANN. UOM DESCRIPTION VENDOR QTY. Structural & Steel Products, Inc. Principle Place of Business: Fort Worth, TX 36 2 EA MAST ARM 20', FOR ITEM 33 $771.00 37 2 EA MAST ARM 25', FOR ITEM 33 $983.00 38 2 EA MAST ARM 30', FOR ITEM 33 $1,050.00 39 2 EA MAST ARM 35', FOR ITEM 33 $3,427.00 40 2 EA OUTBOARD SECTION FOR ITEM 39 $758.00 TO EQUAL A 40' ARM 41 2 EA OUTBOARD SECTION FOR ITEM 39 $826.00 TO EQUAL A 45' ARM 42 2 EA OUTBOARD SECTION FOR ITEM 39 $875.00 TO EQUAL A 50' ARM 43 2 EA OUTBOARD SECTION FOR ITEM 39 $903.00 ITO EQUAL A 55' ARM 44 2 EA OUTBOARD SECTION FOR ITEM 39 $937.00 TO EQUAL A 60' ARM 45 2 EA OUTBOARD SECTION FOR ITEM 39 $1,073.00 TO EQUAL A 65' ARM 46 2 EA OUTBOARD SECTION FOR ITEM 39 $1,089.00 TO EQUAL A 70' ARM 47 8 EA VERTICAL POLE LUMINAIRE $1,619.00 SECTION FOR ITEM 33 ABOVE 48 8 EA ILSN ARM FOR ITEM 33 ABOVE $840.00 49 8 EA LUMINAIRE TRUSS FOR $880.00 STANDARD POLE, ITEM 33 ABOVE 50 8 EA BASE COVER FOR STANDARD $424.00 POLE, ITEM 33 ABOVE ANCHOR BOLTS, SET OF 4 WITH 51 8 EA HARDWARE AND TEMPLATES FOR $917.00 STANDARD POLE, ITEM 33 ABOVE SECTION B: POWDER COATING ONLY (ITEMS 52 - 102) EXHIBIT A EST. ITEM ANN. UOM DESCRIPTION VENDOR QTY. Structural & Steel Products, Inc. Principle Place of Business: Fort Worth, TX REPLACEMENT MAST ARM 52 4 EA VERTICAL POLE, COMBINATION $2,677.00 35' POLE, 17" BOLT CIRCLE, FOR A 30-A FOOTING 53 2 EA MAST ARM 10', RIGID MOUNTED $783.00 54 2 EA MAST ARM 15', RIGID MOUNTED $826.00 55 2 EA MAST ARM 20', RIGID MOUNTED $865.00 56 2 EA MAST ARM 25', RIGID MOUNTED $1,125.00 57 2 EA MAST ARM 30', RIGID MOUNTED $1,332.00 58 2 EA MAST ARM 32', RIGID MOUNTED $1,455.00 LUMINAIRE ARM FOR 59 4 EA REPLACEMENT POLE, ITEM 52 $306.00 ABOVE 60 4 EA ILSN ARM FOR REPLACEMENT $926.00 POLE, ITEM 52 ABOVE 61 4 EA BASE COVER FOR REPLACEMENT $229.00 POLE, ITEM 52 ABOVE ANCHOR BOLTS, SET OF 4 WITH 62 4 EA HARDWARE AND TEMPLATES FOR $217.00 REPLACEMENT POLE, ITEM 52 ABOVE REPLACEMENT MAST ARM 63 4 EA VERTICAL POLE, COMBINATION $3,320.00 35' POLE, 19" BOLT CIRCLE, FOR A 36-A FOOTING 64 2 EA MAST ARM 35', RIGID MOUNTED $1,455.00 65 2 EA MAST ARM 40', RIGID MOUNTED $1,789.00 66 2 EA MAST ARM 45', RIGID MOUNTED $2,387.00 67 2 EA MAST ARM 48', RIGID MOUNTED $2,417.00 LUMINAIRE ARM FOR 68 4 EA REPLACEMENT POLE, ITEM 63 $306.00 ABOVE EXHIBIT A EST. ITEM ANN. UOM DESCRIPTION VENDOR QTY. Structural & Steel Products, Inc. Principle Place of Business: Fort Worth, TX 69 4 EA ILSN ARM FOR REPLACEMENT $926.00 POLE, ITEM 63 ABOVE 70 4 EA BASE COVER FOR REPLACEMENT $233.00 POLE, ITEM 63 ABOVE ANCHOR BOLTS, SET OF 4 WITH 71 4 EA HARDWARE AND TEMPLATES FOR $338.00 REPLACEMENT POLE, ITEM 63 ABOVE 72 4 EA ALTERNATE 1 MAST ARM $4,357.00 VERTICAL POLE 73 2 EA MAST ARM 10', RIGID MOUNTED $700.00 74 2 EA MAST ARM 15', RIGID MOUNTED $856.00 75 2 EA MAST ARM 20', RIGID MOUNTED $1,002.00 76 2 EA MAST ARM 25', RIGID MOUNTED $1,229.00 77 2 EA MAST ARM 30', RIGID MOUNTED $1,416.00 78 2 EA MAST ARM 35', RIGID MOUNTED $1,894.00 79 4 EA VERTICAL POLE LUMINAIRE $1,563.00 SECTION FOR ITEM 72 ABOVE 80 4 EA ILSN ARM FOR ITEM 72 ABOVE $926.00 81 4 EA LUMINAIRE TRUSS FOR $1,045.00 ALTERNATE POLE, ITEM 72 82 4 EA BASE COVER FOR ALTERNATE $266.00 POLE, ITEM 72 ABOVE ANCHOR BOLTS, SET OF 4 WITH 83 4 EA HARDWARE AND TEMPLATES FOR $460.00 ALTERNATE POLE, ITEM 72 ABOVE 84 8 EA STANDARD MAST ARM, VERTICAL $6,840.00 POLE 85 2 EA MAST ARM 10', FOR ITEM 84 $700.00 ABOVE 86 2 EA MAST ARM 15', FOR ITEM 84 $856.00 ABOVE 87 2 EA MAST ARM 20', FOR ITEM 84 $1,002.00 ABOVE 88 2 EA MAST ARM 25', FOR ITEM 84 $1,229.00 ABOVE EXHIBIT A EST. ITEM ANN. UOM DESCRIPTION VENDOR QTY. Structural & Steel M Products, Inc. Principle Place of Business: Fort Worth, TX 89 2 EA MAST ARM 30', FOR ITEM 84 $1,416.00 ABOVE 90 2 EA MAST ARM 35', FOR ITEM 84 $4,019.00 ABOVE 91 2 EA OUTBOARD SECTION FOR ITEM 90 $950.00 TO EQUAL A 40' ARM 92 2 EA OUTBOARD SECTION FOR ITEM 90 $1,067.00 TOE UAL A 45' ARM 93 2 EA OUTBOARD SECTION FOR ITEM 90 $1,175.00 94 2 EA OUTBOARD SECTION FOR ITEM 90 $1,260.00 ITO EQUAL A 55' ARM 95 2 EA OUTBOARD SECTION FOR ITEM 90 $1,346.00 ITO EQUAL A 60' ARM 96 2 EA OUTBOARD SECTION FOR ITEM 90 $1,579.00 TO EQUAL A 65' ARM 97 2 EA OUTBOARD SECTION FOR ITEM 90 $1,585.00 TO EQUAL A 70' ARM 98 8 EA VERTICAL POLE LUMINAIRE $2,059.00 SECTION FOR ITEM 84 ABOVE 99 8 EA ILSN ARM FOR ITEM 84 ABOVE $877.00 100 8 EA LUMINAIRE TRUSS FOR $956.00 STANDARD POLE, ITEM 84 ABOVE 101 8 EA BASE COVER FOR STANDARD $443.00 POLE, ITEM 84 ABOVE ANCHOR BOLTS, SET OF 4 WITH 102 8 EA HARDWARE AND TEMPLATES FOR $917.00 STANDARD POLE, ITEM 84 ABOVE Shipment can be made within 84 Ida vs from receipt of order. Authorized distributor by the YES manufacturer? YES NO N/A *Prices shall be bid F.O.B. Denton AGENDA INFORMATION SHEET AGENDA DATE: June 2, 2009 Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Tonya Demerson 349-8129 ACM: Jon Fortune SUBJECT Consider adoption of an ordinance awarding a 36-month contract for the lease of production printing equipment for the Reprographics Division as approved by the State of Texas General Services Commission through a Texas Association of School Boards (TASB) catalogue; providing for the expenditure of funds therefor; and providing an effective date (File 4307-Lease of Production Printing Equipment to IKON Office Solutions, Inc. in the annual amount of $90,372 for a 36-month total amount of $271,116). FILE INFORMATION The current contract for production equipment in the Reprographics division expires June 2009. In accordance with the managed services model implemented in FY08/09, the Reprographics manager has evaluated equipment and proposals from four different vendors for the replacement of existing production equipment; which includes: • 2 CPP 500 (50 ppm production color printers) • 1 PCP1050 (105 ppm b&w production printer) • PowerPress Software Replacing the existing equipment with the proposal from IKON Office Solutions offers the following benefits: • CF900 provides increased speed for production color printing • CF900 provides more paper options to satisfy customer needs • CF900 allows for cardstock and gloss paper stock to print directly from the tray, which increases productivity • CF900 provides consistent color through job run • Inline stitching and folding options • Current vendor relationship • Rapport with service technicians • Familiar with current technology With this equipment, the Reprographics division will be able to complete the types of projects requested by City departments and in accordance with the managed services model. (Average monthly volume estimates, excluding utility statements: B/W 146, 000; color 25, 445) Agenda Information Sheet June 2, 2009 Page 2 RECOMMENDATION Award a contract for the lease of production printing equipment to IKON Office Solutions, Inc. in the annual amount of $90,372 for a 36-month total of $271,116. PRINCIPAL PLACE OF BUSINESS IKON Office Solutions, Inc. Sherman, TX ESTIMATED SCHEDULE OF PROJECT This is a 36-month lease which is scheduled to begin June 2009. FISCAL INFORMATION This project will be funded from account 830100.6306. Requisition 93088 in the amount of $31,088 has been entered in the Purchasing software system for the cost associated with the remainder of the 2008-09 fiscal year. The remaining amount will be funded from the 2009-10 budget. EXHIBITS Exhibit 1: Proposal from IKON Office Solutions, Inc. Exhibit 2: Master Agreement Respectfully submitted: .z7- Tom Shaw, C.P.M., 349-7100 Purchasing Agent 1-AIS-File 4307 Exhibit 1 ' ~ ~ Ma~..q `II It „x~+"LY. rmna ,S1 'b[ V~~ ~wua i j, 4 ~ta++E~~^'N ! ~ ~ ~ ~ a Q ~'a r ~ ~ «fr. ~ {w e: ~ a k i ~ ~ .y.~; , D~o~ument Efficien~~ A RfCOki COMPANY ,~~fi Impact and Implementation The proposed solution was designed to maximize the efficiency and effectiveness of your document workflow, providing you with strategic advantages over the competition. The system was specifically selected to meetthe unique demands of yourworking environment and should integrate seamlessly. Its implementation has been scheduled to occur following an agreementto the terms of this proposal. Please referto the Implementation section for specific information. Power of Partnership IKON is dedicated to helping companies become more efficient, productive, and competitive. Capitalizing on the best in office technologies from the world's top manufacturers, we provide innovative solutions, responsive to our customers' imaging, document, and information systems needs and objectives. Furthermore, IKON is prepared to help you adapt to any changes in your industry, as well as the subsequent growth of your organization, by continuously providing you with the equipment and services needed to be as productive as possible. Dur extensive offerings will allow you to upgrade yoursolution according to the demands of yourworkflow. Company Commitment -IKON Office Solutions IKON Office Solutions' commitment to your company's success is just beginning. Following implementation, we will service and support your solution to ensure it continues to function at optimal capacity and meetthe demands of yourdaily documentworkflow. Individual Investment - v - ~a ~ - ®.v~. - ~ - - , - - - ' ' - - - _ 7 r ' 7 ~ ~ Believing customer service begins with equipment installation, I will continue to support your business by: •Making myself readily available to discuss your solution as well as any other business objectives you may have. •Maintaining regular contact with users to ensure their satisfaction with the system. •Monitoring system usage to guarantee its effectiveness in meeting your needs. •Introducing new products and technologies in orderto ensure your company continues to function at maximum efficiency Document Efficiency City of Denton -Current Situation IKON CPP500 15,000 Color IKON CPP500 15,000 Color IKON PCP1050 50,000 B/W PowerPress $6,963.28 / mth Last 12 Months (Nov07-Nov08) Average Monthly Volumes (last 12 mths): CPP500 2,702 BIW 11,781 Color CPP500 41,662 B/W 12,664 Color IKON1050 102,098 Document IE~ficiency sh, This unique solution was designed to meet the needs and objectives discovered during our meetings. The total quote is outlined below, followed by sections that detail system cost, service, and options. • Comes Standard with ADF and 1 LCIT PaperDeck (picture below shows 2 LCIT PaperDecks) • 90 Pages Per Minute Color & B/W • SR5000 Staple Finisher • Tab Sheet Holder • Hole Punch Unit • EFI Compose • Spectrophotometer j i ,~~fi J a • u u oma a nine oo e a er. • ions TR5010 Face Tri m Unit B F5010 Book Fold Unit CF5010 Cover Interposer Rail Unit Docking l Unlocking} . . • ro ess~ona finis a Ica ions. POD short-run saddle-stitched booklets. Brochures & catalogs. Marketing and promotional booklets. Product manuals, instruction manuals and educational materials. a,o J __._e.. , 1~ti~1'11Y o-~l& i} l' S u f~\ i~` i}„{ r,~ ~ ~ ~ x. x x;, P.~ , w y`~~, m ,,a ~r Document IE~ficiency sh, This unique solution was designed to meet the needs and objectives discovered during our meetings. The total quote is outlined below, followed by sections that detail system cost, service, and options. • 33 Pages Per Minute Color & B/W • Finisher SR790 1,000 Sheet Stapler Sorter • Hole Punch Kit • EFI Fiery E-3100 Controller w - I .ry u ,~~fi This unique solution was designed to meet the needs and objectives discovered during our meetings. The total quote is outlined below, followed by sections that detail system cost, service, and options. Current IKON PCP1050+ • 105 ppm B&W • Folding Unit • Saddle Stitcher • Staple Finisher i = i i , , N ,E r . - ~ .q . , "f t ~ % ii r ~ s" ~ - $ ,r~BC.W Snu~nM,ra~~fr /anw~AnjZv:: a t'-, 7Z ~~~~e i E;; ire, 1 Document Efficiency Financial Considerations 36 Month Contract Ricoh Pro C900S $3,264.00 / mth Ricoh MPC3300 $386.00 / mth Current IKON PCP 1050 $622.00 / mth NEW IKON PCP 1050 $1,903.00 / mth Service Contract - $3,000 / mth • 100,000 B/W Images / Mth, 50,000 Color Images / Mth • .005 per image for all excess B/W Images • 05 per image for all excess Color Images • Overages Read Quarterly • Full Service on All Parts and Labor • Toner & Staples Inclusive • Delivery, Installation, Training and Implementation of Solution IKON Install/Setup PlanetPress $900.00 Pricing Valid for 30 Days from Date on Cover. Document Efficiency Financial Considerations 48 Month Contract Ricoh Pro C900S $2,625.00 / mth Ricoh MPC3300 $313.00 / mth Current IKON PCP 1050 $498.00 / mth NEW IKON PCP 1050 $1,518.00 / mth Service Contract - $3,000 / mth • 100,000 B/W Images / Mth, 50,000 Color Images / Mth • .005 per image for all excess B/W Images • 05 per image for all excess Color Images • Overages Read Quarterly • Full Service on All Parts and Labor • Toner & Staples Inclusive • Delivery, Installation, Training and Implementation of Solution IKON Install/Setup PlanetPress $900.00 Pricing Valid for 30 Days from Date on Cover. 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P. k i ~ d` ~ R ~ d i , C ~ ~q w C 's~, < ~ , ~ ~ , . _ _ v,. . _ , 4444''" 3~ r ~ i ,r~~, `",~Cf ..f 7,'1~' `~',~~~k~4~'~I Syr i e ~ . _ ^ ~ ~ x ~ ~ a r 1~~ 1 ~ I ~ r v I' ; 4~. ~ ~ ~ e ~ is ~ i 4 i i I~~~.. 4ti ~ qi t j ~ ~l~~t'd.~f~ ~'~~.~'~~~4~~~~ ~ ~ v~ ,t~ ~ ~ N _ i ~ w. ~~:i ~y` ..,a~~1'Cw~. ,r 'Lip w~.~: !t, l4 L 1 ..Vt„ 'l ' i t, I h iN { ` P r c 9 ~ ~ l ~ v ~ f q r 9 9' I T i- 9, r ~d tg d $ d 4 s ~ ~ a ~1~~~~~b~ &F~ #dC~4A~k}1YE°~ ~ +S E;fi~ a~imR l~~~B~ LY~~~I k~~F"~ t,s lw c~'~ea ~ p~ o- 1' n_.. y -r p i ~ ~ t ~ ~ i..., %y`k v . P r k.. +~r v4 t ( 1i` d i ~ ~9 ~ t` ! s ~ t a°t ~~t *4. . ~ ~ ~ , 4 J "'q i ,1 i 9 a a , 'u "r ~ k ~ ~x t ~ "`v 'k `s ~ N i',, i [ ~ i ~ a t. 1 . ~ i ~ 2 a s . , i . ~ . . . < . ~ X ~ t ~ ~ ~ . yy~ ..,.yyy _ ORDINANCE NO. AN ORDINANCE AWARDING A 36-MONTH CONTRACT FOR THE LEASE OF PRODUCTION PRINTING EQUIPMENT FOR THE REPROGRAPHICS DIVISION AS APPROVED BY THE STATE OF TEXAS GENERAL SERVICES COMMISSION THROUGH A TEXAS ASSOCIATION OF SCHOOL BOARDS (TASB) CATALOGUE; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 4307-LEASE OF PRODUCTION PRINTING EQUIPMENT TO IKON OFFICE SOLUTIONS, INC. IN THE ANNUAL AMOUNT OF $90,372 FOR A 36-MONTH TOTAL AMOUNT OF $271,116). WHEREAS, pursuant to Resolution 92-019, the State Purchasing Building and Procurement Commission 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 Building and Procurement programs at less cost than the City would expend if bidding these items individually; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The numbered items in the following numbered purchase order for materials, equipment, supplies, or services, shown in the "File Number" listed hereon, and on file in the office of the Purchasing Agent, are hereby approved: FILE NUMBER VENDOR AMOUNT 4307 IKON Office Solutions, Inc. $90,372/year SECTION 2. By the acceptance and approval of the above numbered items set forth in File 4307, the City accepts the offer of the persons submitting the bids to the Building and Procurement Commission for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, conditions, specifications, standards, quantities and for the specified sums contained in the bid documents and related documents filed with the Building and Procurement Commission, and the purchase orders issued by the City. SECTION 3. Should the City and persons submitting approved and accepted items set forth in the attached purchase orders wish to enter into a formal written agreement as a result of the City's ratification of bids awarded by the Building and Procurement Commission, the City Manager or his designated representative is hereby authorized to execute the written contract; provided that the written contract is in accordance with the terms, conditions, specifications and standards contained in the Proposal submitted to the Building and Procurement Commission, quantities and specified sums contained in the City's purchase orders, and related documents herein approved and accepted. SECTION 4. 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 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this day of , 2009. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: 4-ORD-File 4307 AGENDA INFORMATION SHEET AGENDA DATE: June 2, 2009 Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Frank Payne 349-8496 ACM: Jon Fortune SUBJECT Consider adoption of an Ordinance accepting competitive bids and awarding a public works contract for the construction of the Mulkey Street Sanitary and Storm Sewer Replacement; providing for the expenditure of funds therefor; and providing an effective date (Bid 4281- awarded to the lowest responsible bidder meeting specification, Dowager Utility Construction, LTD in the amount of $226,920). The Public Utilities Board recommends approval (6-0). BID INFORMATION The Mulkey Street Sanitary and Storm Sewer Replacement Project consists of approximately 1,200 linear feet of eight (8) inch sanitary sewer pipe and approximately 430 linear feet of fifty- four (54) inch storm drain pipe along Mulkey Street from Meadow Oak to Audra. This project replaces the sanitary sewer line and storm sewer line prior to the street reconstruction as part of the 2007 Capital Improvement Plan. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) The Public Utilities Board approved this item at its May 18, 2009 meeting. RECOMMENDATION Award to the lowest responsible bidder meeting specification, Dowager Utility Construction, LTD in the amount of $226,920. PRINCIPAL PLACE OF BUSINESS Dowager Utility Construction, LTD Dallas, TX ESTIMATED SCHEDULE OF PROJECT This project is estimated to be completed within 60 work days from issuance of the notice to proceed. Agenda Information sheet June 2, 2009 Page 2 FISCAL INFORMATION This project will be funded from account 640097541.1360.40100 in the amount of $130,162 and account 650053561.1360.40100 in the amount of $96,758. Requisition 93340 has been entered in the Purchasing software system. EXHIBITS Exhibit 1: Bid Tabulation Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent 1-AIS-Bid 4281 U X s CD CD CD CD O O O N M 00 0a°0 ~ O O N M I- 0 0 (1) co LO CO CO C O O .4 ci ° N cc 04 LO CO CO MO r- LO W W ° U) O co O W W 2 CL LO W (n O I- C 00 W 06 U O N c C r- co _ > T EA N > OM co 19T LO U, Y EA EA > EA EA EA 7 N O O X O O N O c x O O O ~ u O O 00 O O O M N M CO CO 0 0 LO 0) O ~ CO CO 7 r T Lo r W W 0 LO M O O W W > O E LO CD P- C: LO CN O r > 0 Ni N O C~ C6 cu r r N O N r Ef} qT O EA EA EA to ° EA EA EA U U L C O O O O O O •O X O O O O c X O O N O fB H M N O LO O N 0 C: O ~ O CO I~ 04 N O 19T CO CO i r- co CO CO CO r z N O M W W ° N U fB M 00 M O C I- W W y U Z 1 w M O CO W U_ i I- r O > O CO O co N > i5 to U r N T ~ U 0 ER ER U 0 N X "q: (o N O w C N N M 70 - c ~ N N O O O i 0 C N o0 O 0 O a- cl N 04 o O W W H ° p) U N co co N W W W w 2 U ~ W w a N psi rn rn > Q' U r > N =3 N - CD ~ co ~ 2 r N > ~ EA EA ~ 2 LU > LU 0 00 Es3 U U U X LU a m C o X CD 00 OD °o a m X OD OD CD CD CD - W 0 C H m o co W 0 =3 o Do o DO CO CO 3: =3 N c r- N coo -co CO CO °Z N 0 ~ CD 04 N r (D co W W 0 o W > O d N O a) (0 N (D W > rn N a) N Ef3 EF3 3: ~5 U Ef3 EF3 3 C\l 3cu co : W W X CD CD x O CD N O 0 O 0 L O O N O N O N O O D N N LO ( CO CO O O m i O P- ce) LO 0 C r CO CO ° O O LO M ~ W W ° 0 LO co OM W W w N L) ( cM ---t w (n P-: M rn LO - C: co > T co > c N r- O r rn Z m cu Eck ~ Z L LI ° Ef3 6!)- Q!)- ~ a J a LU O X O C C O W 0 C O O N O 0 H 7° v! c o co M O N fn fn L U 0 " c O ON ce) L U O LO M CO CO N i H O r ti O a w w z rn 0 O P- ~ co O W W a o 0 o ~ d4 EA ~ a cj ° U3 ~ H F Z Z V1 O (1) zU O N zU N H N ~ ~ OQ H 0 N 3 H =OQ W e m J a 7 W m ~ J a 7 F- w a~ w Q- co H w w w Q- m 00 0~ ° z 0 z H D v 000 ° z 0 z H D v w N M>- awi U) U) ( 0m m Q NM w (D 0m m Q W Q y~ W y Q may. V .U 1.L V .U -j C; 0 ? z ~ Q m U 0 Z a_ Q m U m 02 00 0 ORDINANCE NO. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A PUBLIC WORKS CONTRACT FOR THE CONSTRUCTION OF THE MULKEY STREET SANITARY AND STORM SEWER REPLACEMENT; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (BID 4281-AWARDED TO THE LOWEST RESPONSIBLE BIDDER MEETING SPECIFICATION, DOWAGER UTILITY CONSTRUCTION, LTD IN THE AMOUNT OF $226,920). WHEREAS, the City has solicited, received and tabulated competitive bids for the construction of public works or improvements in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has received and recommended that the herein described bids are the lowest responsible bids for the construction of the public works or improvements described in the bid invitation, bid proposals and plans and specifications therein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following competitive bids for the construction of public works or improvements, as described in the "Bid Invitations", "Bid Proposals" or plans and specifications on file in the Office of the City's Purchasing Agent filed according to the bid number assigned hereto, are hereby accepted and approved as being the lowest responsible bids: BID NUMBER CONTRACTOR AMOUNT 4281 Dowager Utility Construction, LTD $226,920 SECTION 2. The acceptance and approval of the above competitive bids shall not constitute a contract between the City and the person submitting the bid for construction of such public works or improvements herein accepted and approved, until such person shall comply with all requirements specified in the Notice to Bidders including the timely execution of a written contract and furnishing of performance and payment bonds, and insurance certificate after notification of the award of the bid. SECTION 3. The City Manager is hereby authorized to execute all necessary written contracts for the performance of the construction of the public works or improvements in accordance with the bids accepted and approved herein, provided that such contracts are made in accordance with the Notice to Bidders and Bid Proposals, and documents relating thereto specifying the terms, conditions, plans and specifications, standards, quantities and specified sums contained therein. SECTION 4. Upon acceptance and approval of the above competitive bids and the execution of contracts for the public works and improvements as authorized herein, the City Council hereby authorizes the expenditure of funds in the manner and in the amount as specified in such approved bids and authorized contracts executed pursuant thereto. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2009. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY r BY: 3-ORD-4281 DRAFT MINUTES PUBLIC UTILITIES BOARD May 18, 2009 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was present, the Chair of the Public Utilities Board thereafter convened into a Closed Meeting on Monday, May 18, 2009 at 9:00 a.m. in the Service Center Training Room, City of Denton Service Center, 901-A Texas Street, Denton, Texas. Present: Chair Dick Smith, Bill Cheek, Phil Gallivan, John Baines, Randy Robinson and Bill Grubbs Ex Officio Members: George C. Campbell, City Manager Howard Martin, ACM Utilities CLOSED MEETING: ["Before the Public Utilities Board ("PUB") may discuss, deliberate, vote, or take final action on each of the agenda items posted as a "competitive matter" in a Closed Meeting under the provisions of Texas Government Code §551.086(c) relating to "Public Power Utility" items, the Chair of the PUB shall first announce the time, and then the PUB must then vote and make a good faith determination, by a majority vote of its members, that if any particular agenda item listed under the "Closed Meeting" section is an electrical "competitive matter" that satisfies the requirements of §551.086(b)(3). If there is more than one "competitive matter" item on the PUB agenda, then a separate vote must be taken for each item. The vote shall be taken during the Closed Meeting and shall be included in the certified agenda or tape recording of the Closed Meeting. If the PUB fails to determine by a majority vote of its members that the particular agenda item satisfies the requirements of §551.086(b)(3), then the PUB may not discuss, deliberate or take any further action on that Agenda item in its Closed Meeting. For any agenda item listed under any other section of the Texas Government Code, other than §551.086, consideration in the Closed Meeting is permitted without the necessity of a preliminary motion and a vote of the Board being taken.] A. CONSULTATION WITH ATTORNEYS - Under Texas Government Code Sec. 551.071. 1) Receive a status report, briefing and information regarding the litigation entitled City of Denton v University of North Texas, Cause No. 2008-20043-158, now pending before the 1581h Judicial District Court in and for Denton County, Texas; and discuss, deliberate, and provide the City's attorneys and Staff with direction and any recommendations regarding such legal matter. A public discussion of this legal matter would conflict with the duty of the City's Attorneys to the Public Utilities Board under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. 2) Receive information from and a consultation with the City's attorneys regarding the status of two of the pending TMPA-related cases which include: Texas Municipal Power Agency v City o fryan, et al, Cause No. 28,169, in the 506`h Judicial District Court in and for Grimes County, Texas, and Ex Parte Texas Municipal Power Agency, Cause No. D-1-GN-08-003426, in the 2501h Judicial District Court in and for Travis County, Texas; discuss, deliberate, and provide direction to the attorneys and Draft Minutes of the Public Utilities Board meeting May 18, 2009 Page 2 of 4 staff regarding such litigation. A public discussion of these legal matters would conflict with the duty of the City's Attorneys to the Public Utilities Board under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. B. DELIBERATIONS REGARDING CERTAIN PUBLIC POWER UTILITIES: COMPETITIVE MATTERS Under Texas Government Code §551.086. 1) Receive competitive public power information from staff in the form of a proposed operating budget for Denton Municipal Electric ("DME') for the upcoming fiscal year, including without limitation, revenues, expenses, commodity volumes, and commitments, and the direction of ])ME; and discuss, deliberate, consider adoption of the budget and other matters, and provide staff with direction regarding such matters. At 10:02 a.m. the Chair declared the closed meeting ended and announced the Public Utilities Board was thereafter in open session. OPEN MEETING: CONSENT AGENDA: The Public Utilities Board has received background information, staff's recommendations, and has had an opportunity to raise questions regarding these items prior to consideration. Chair Dick Smith pulled Item 1 for individual consideration. Board Member ? pulled Item 3 for individual consideration. Board Member Bill Cheek pulled Item 10 for individual consideration. 2) Consider recommending approval of a Second Amendment to Professional Services Agreement by and between the City and the law firm of Walker Sewell, LLC, Dallas, Texas regarding the Texas Municipal Power Agency-related litigation, in the further not-to-exceed amount of $200,000; totaling a not-to-exceed amount of $395,000. 4) Consider approval of a `Professional Services Agreement for ROW Acquisition Services' by and between Land Insight, Inc. and the City of Denton for services regarding the procurement of and delivery of land rights; in a not-to-exceed amount of $80,000. 5) Consider approval of a Professional Services Agreement between R. J. Covington Consulting, Inc. and the City of Denton regarding the Nodal Market Transition and Market Design Changes (T.O. 09-A); in an amount not-to-exceed $45,000. 6) Consider approval of a Professional Services Agreement between R. J. Covington Consulting, Inc. and the City of Denton regarding the rendition of regulatory services for the benefit of DME (T.O. 09-B); in an amount of not-to-exceed $45,000. 7) Consider recommending approval of a "Professional Services Agreement for Architect or Engineer" by and between DEH Consulting, LTD and the City of Denton for Floodplain Administration review, support and consultation services; in a not-to-exceed amount of $77,500. Draft Minutes of the Public Utilities Board meeting May 18, 2009 Page 3 of 4 8) Consider approval of a Professional Services Agreement with Kimley-Horn and Associates, Inc. of Fort Worth, Texas, for engineering services for the removal from service and disposal of the Peach Street Elevated Storage Tank an amount not to exceed $15,100. 9) Consider approval of Bid #4143 and awarding the purchase for fabricating and delivering galvanized steel structures and anchor bolts required to construct Fort Worth Substation to Parks Metal Fabricators, Inc., Texarkana, Texas in the amount of $45,346 and to Trinity Structural Towers, Inc., Dallas, Texas in the amount of $34,970 for a total expenditure of $80,316. 11) Consider recommending approval of Bid No. 4281 to Dowager Utility Construction, LTD for the construction of the Mulkey Street Sanitary and Storm Sewer Replacement project, in an amount not to exceed $226,920. Board Member Phil Gallivan moved to approve Items 2, 4, 5, 6, 7, 8, 9 and 11 with a second from Board member Bill Cheek. The motion was approved by a 5-0 vote as Board Member John Baines was absent from the room when the vote was taken. ITEMS FOR INDIVIDUAL CONSIDERATION: 1) Consider recommending approval of a First Amendment to Agreement for Professional Legal Services by and between the City and The Whitten Law Firm, P.C., in the further not to exceed amount of $40,000, aggregating a total of $75,000, regarding the ongoing dispute with the University of North Texas regarding electric rates. 3) Consider recommending adoption of an ordinance approving the abandonment of a portion of the City of Denton's interest in three sanitary sewer line easements, being from L.C. Dupree, and wife, Stella M. Dupree, Volume 464, Page 179, Thomas Cain, and wife, Clara Etta Cain, Volume 464, Page 172, and Andrew Corporation, an Illinois Corporation, Volume 1123, Page 407, all recorded in the Denton County Real Property Records, Denton, Texas; provided however, that said abandonment shall only be effectual as to that certain tract of real property being legally described as Lot 3, Block A, of Flowers Food Addition, an addition to the City of Denton, Denton County, Texas, according to the conveyance plat thereof recorded in Cabinet W, Page 33 5 of the Plat Records of Denton County, Texas; and declaring an effective date. 10) Consider recommending adoption of an ordinance awarding a contract for repairs to a Caterpillar Model #826G Compactor, unit#SW0528 in an amount not to exceed $250,000. 12) Consider recommending approval of the Public Utilities Board meeting minutes of: a. April 27, 2009 The minutes were approved as circulated. 13) Recommend approval of amendments to Chapter 26 of the City of Denton Code of Ordinances to codify existing policies for processing new water and/or wastewater service connection requests. Draft Minutes of the Public Utilities Board meeting May 18, 2009 Page 4 of 4 14) Receive a report, hold a discussion, and give staff direction regarding the Preliminary General Fund FY 2009-10 Five Year Forecast. 15) Receive a report, hold a discussion and give staff direction on the Wastewater Fiscal Year 2009-10 Operating Budgets and the Fiscal Year 2010-2014 Capital Improvement Programs (CIP). 16) Receive a report; hold a discussion and give staff direction on the Denton Municipal Electric (DME) FY 2010-2014 Capital Improvement Program (CIP). 17) ACM Update: a) UNT Memorandum of Understanding b) Rate Consultant Survey Document 18) Under Section 551.042 of the Texas Government Code, respond to inquiries from the Board or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting. 19) Official Action, if necessary, on Closed Meeting item(s) under §551.071-551.088 of the Texas Government Code, as amended. AGENDA INFORMATION SHEET AGENDA DATE: June 2, 2009 Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Keith Gabbard 349-7144 ACM: Jon Fortune SUBJECT Consider adoption of an Ordinance accepting competitive bids and awarding a public works contract for the construction of curb, gutter, and driveway structures and radiuses on La Paloma Drive; providing for the expenditure of funds therefor; and providing an effective date (Bid 3516-awarded to the lowest responsible bidder meeting specification, Floyd Smith Concrete, Inc. in the amount of $123,571.09). BID INFORMATION This item is for the construction of concrete pavement for the La Paloma Drive Project. A line item description of the project cost is included in the attached Project Estimate Information Sheet (Exhibit 1). Bid 3516 is an annual contract to provide miscellaneous concrete related repair and for small construction projects. Council stipulated that any projects costing $100,000 or more that are quoted through this bid must obtain separate Council approval. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) Bid 3516 was originally awarded by Council on June 25, 2006 and has been renewed through June 25, 2009. RECOMMENDATION Approve the award of a contract with Floyd Smith Concrete, Inc. in the amount of $123,571.09. PRINCIPAL PLACE OF BUSINESS Floyd Smith Concrete, Inc. Denton, TX ESTIMATED SCHEDULE OF PROJECT This project will begin upon Council approval and is estimated to be completed within 60 days. Agenda Information Sheet June 2, 2009 Page 2 FISCAL INFORMATION This item will be funded from accounts 353001.6516. Requisition 93003 has been entered into the Purchasing software system. EXHIBITS Exhibit 1: Project Estimate Information Sheet Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent 1-AIS-Bid 3516 a~ fC U D O 7 W O w 41 ~ O a N ID N R* N T-1 = N 41 77 O W U') O O O m w~ O O L!1 O 00 I~ 00 I, m r-I <D lD V M Ql 06 O Ri M l0 06 Ur 41 i--I M N 0N 0 a m - 0000 M O H 00 rN-I rN-I rml O M i--I N O N N M `i Ln en 41 M oN0 m O O O N M r, N r, ^ i--I N R* N R* O t U O N N ri a m 00 N H x r4 O W Y >m LL LL LL Y >m a ~ Q Ln V) J J J (/n Ln Ln Ln V) W D O Z O a V ~ Ln Ln O O w r-q o0 00 z Q txo N 3 M M ~ ~.o 14 n n }i L Q O r-I r-I U LL C U J a a V) m O Q O O 2 O O U? O M n w r-q 'n m ~ o L O (7 o = O 3 D O N > O m O U O w > ffi N v u n t E N O c > c E CL ar m y oo m v (n a a N T > Q C7 a) J U LL U a N Z J 06 M r co r, m N u r, rml N r ^ -I N q N R* Z Z Z Z Z Z Z Z Z m m J J J J J J J J J ORDINANCE NO. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A PUBLIC WORKS CONTRACT FOR THE CONSTRUCTION OF CURB, GUTTER, AND DRIVEWAY STRUCTURES AND RADIUSES ON LA PALOMA DRIVE; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (BID 3516-AWARDED TO THE LOWEST RESPONSIBLE BIDDER MEETING SPECIFICATION, FLOYD SMITH CONCRETE, INC. IN THE AMOUNT OF $123,571.09). WHEREAS, the City has solicited, received and tabulated competitive bids for the construction of public works or improvements in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has received and recommended that the herein described bids are the lowest responsible bids for the construction of the public works or improvements described in the bid invitation, bid proposals and plans and specifications therein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following competitive bids for the construction of public works or improvements, as described in the "Bid Invitations", "Bid Proposals" or plans and specifications on file in the Office of the City's Purchasing Agent filed according to the bid number assigned hereto, are hereby accepted and approved as being the lowest responsible bids: BID NUMBER CONTRACTOR AMOUNT 3 516 Floyd Smith Concrete, Inc. $123,571.09 SECTION 2. The acceptance and approval of the above competitive bids shall not constitute a contract between the City and the person submitting the bid for construction of such public works or improvements herein accepted and approved, until such person shall comply with all requirements specified in the Notice to Bidders including the timely execution of a written contract and furnishing of performance and payment bonds, and insurance certificate after notification of the award of the bid. SECTION 3. The City Manager is hereby authorized to execute all necessary written contracts for the performance of the construction of the public works or improvements in accordance with the bids accepted and approved herein, provided that such contracts are made in accordance with the Notice to Bidders and Bid Proposals, and documents relating thereto specifying the terms, conditions, plans and specifications, standards, quantities and specified sums contained therein. SECTION 4. Upon acceptance and approval of the above competitive bids and the execution of contracts for the public works and improvements as authorized herein, the City Council hereby authorizes the expenditure of funds in the manner and in the amount as specified in such approved bids and authorized contracts executed pursuant thereto. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of ,2009. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY r BY: 3-ORD-Bid 3516 AGENDA INFORMATION SHEET AGENDA DATE: June 2, 2009 Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Mike Ellis 349-8424 ACM: Jon Fortune SUBJECT Consider adoption of an ordinance of the City of Denton, Texas providing for, authorizing, and approving the expenditure of funds for the repair of a Caterpillar Model 826G Compactor for the City of Denton Solid Waste Department from Holt Cat which is available from only one source in accordance with the pertinent provisions of Chapter 252 of the Texas Local Government Code exempting such purchases from the requirements of competitive bidding; and providing an effective date (File 4321-Repair of Compactor at Landfill in an amount not to exceed $238,000). The Public Utilities Board recommends approval (6-0). FILE INFORMATION A Caterpillar Compactor was purchased for the Solid Waste Department in May 2005 at a cost of $199,620. This unit (SW0528) has seen continuous service at the landfill and has accumulated approximately 13,326 hours of run time. Although preventative maintenance schedules have been adhered to; the engine, power train, radiator, front/ rear axle assemblies and drive lines need extensive repairs and reconditioning. Holt Caterpillar submitted a quote in the amount of $191,105 for this work. (The current replacement cost of this equipment is $750,000 which is not feasible at this time). The City of Denton Landfill will continue to operate using their secondary compactor while the front line machine is being repaired. The Solid Waste Department is also currently attempting to lease another machine on a short term basis. Holt Cat is the only authorized Caterpillar franchised dealer in the North Texas area, and is therefore the sole source for the manufacturer's warranty on extended repairs. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) The Public Utilities Board approved this item at its May 18, 2009 meeting. RECOMMENDATION Award the repair of the Caterpillar Model 826G Compactor to Holt Cat in an amount not to exceed $238,000 or the quoted price plus a not to exceed amount of $46,895 (25%) for undetermined repair requirements. Agenda Information sheet June 2, 2009 Page 2 PRINCIPAL PLACE OF BUSINESS Holt Cat Irving, TX ESTIMATED SCHEDULE OF PROJECT The repair is estimated to be completed within five to eight weeks after the machine is delivered to the maintenance shop. FISCAL INFORMATION This project will be funded from account 665001665.1350.30100. Requisition 93432 has been entered in the Purchasing software system. EXHIBITS Exhibit 1: Quote from Holt Cat Exhibit 2: Sole Source Letter Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent 1-AIS-File 4321 Exhibit 1 Certified dower Train Parts & Service ESTIMATE The estimate below is rased on our initial inspection and does not include any additional parts, labor, freight, air freight, backorder freight, machining, or taxes, which may become evident after work has been initiated. Any operation not listed in estimate is additional. Thank you for the opportunity to serve you. EXPIRES 34 DAYS FROM ESTIMATE DATE MODEL 826E Customer Name Ct f Denton SERIAL # 7LN077 Customer A ent Mike Ellis Work order Fax Number DATE 4-10-09 DESCRIPTION UNIT EXTENDED PRICE PRICE Remove and Install Components ReconditionjOverhaul Engine Recondition/OverhaLd Traiismission I Transfer y-ears /iTC Recondition/OVerhaid Radiator 1 Recondition/Overhaul Front axle assembly Recondition/Overhaul Rear axle assembly - - - - - Remove/Install/Replace I over Train Electronics Remove/Install/Replace :vlonitorin systern and sensors Recondition Drive Lines 'Clen Machine. ~ po nents Fluids/Filters, Test httichine 1 YVa1/_)vv1 1100 UALUI iIULL OWJ Li 23 it LM1` 23yC [itY Total $191,105 **Please review, sign and fax back t9 972 721-2930. ESTIMATE MADE BY: Sam Galloway (214)649-04479 Due to limited storage, items replaced during non-warranty repairs will be held at your request for no longer than 30 calendar days. Would you like your parts held? - YES or NO CUSTOMER ACCEPTANCE TO ESTIMATE - YFS or NO CUSTOMER NAME LLI ppp w Z U-4. Mme. cii °ts (M _M W w _ a= 41 d? Mi Eq LLJ _ I T WL.~ l y ~ Z F LLI w r- m w m H Qi 3 ~ c 3 U , co n U. m Y ar m o `m w o 0 m i o Z y I- ~ g o$ o $ °o a r, :3 C" 9 E W N H J~I m N N N N g N co y O LL } y O 0 ogzw ml o~ cc Omf. m w N F: a w E o -t l w 4Ix. i LO co c°fo -M :3 o a' M N O ~ ttl r ~ c m Z O ~ •c n ~ ~ mmC p O Q D1 LL v O O di G Y ~ O W I C eFY C U) tr t c C H @ O0 'O C2 ^ O I..L y ~ yo m ,L H ~,ro o c O ¢ W = .~C O m - t- O ~ H ro v ~ a~ r c V zs W a O D A c~ r~ u\ is n Q3 > m 0 pC N 4_ r. C O p v m m F- - a U, CL 0 0° a H~ Q Q 7 U S -00 CL S 0 ID co Cc 0 U) 'R z V d C C E m o a cc B, m N L 7 O 7 d p m n. 1>1 d a- c p °cY W d a o U~ w CL m v, a' y C c_ _ a (D E 2 ~ W m C d 'n _ Co GD C C LU U m V = of 0. is xf O C: M c m o curi c v o rca ro c_ v o V to S n . Q m m °g ats ® °6 m °0 m c c~ m a y V Q: nJ~~l OCR ACC 2t m u vt E ems m Q -g c 0 Cc, tta y x w m O H O Z 9 N c ~"Q and a m t°4) O 0~ 0. v ~jm o m a m O. U v m E c W N .r C m O Q C, U 0 m p Co U a a C7 c 0 Certified Power Train Program The Caterpillar Certified Power Train Program (CPT) is an option within the Cat Certified Rebuild Program. The CPT program is a Dealer rebuild of the entire Power Train. This program is similar to the Cat Certified Rebuild program in that the power train components are completely disassembled and all critical engineering updates are incorporated. The CPT includes extended power train coverage through Cat Insurance. The CPT Program Includes The Following: • Basic Engine Including • Fuel, Oil and Water Pump • Turbocharger • Governor • Engine Control Module, Etc • Transmission • Transmission Pumps Hydraulic Controls • Torque Converter • Drive Line Drive Shafts and U-Joints • Differential • Transfer Gear Group • Drive Axles • Final Drives • Electronic Controls and Sensors That Function To Direct Power To Move Machine • Radiators and Coolers All Cat Certified Power Train components are to be painted. Complete painting of the machine is an option. 'o ~ ~ as >•~i~~..~>z-cC7w c Or aCi ~dau°G~p`~ Gp a°~i ° d abi p Ni3 >y~'°~ z t °L' ° u e ° y L o ~U 0 Lia F O o o a~i 'Q'°a~7p.9p~3y a C,1 y h b b Q ._f G +3 .7• a ° ceAj~~7w O0. 0 e2 F U y 'd ~ c0 v u E" o z z V 3 L Q y "'a L > w W U m rE~n ~1 1>1 Omw C`~ £ 8 °0 > a° m n ° wwpOAwagw~ L ryn a) y r cd O o~ ..a4a[,1 z3p4~CL~ a) y s~. a a'vi ~^'d a~•v.o ~ ~'a: ~ a~Aa~AApQ~ ~ c ,C ~ o `y~.~•~'b ~ a~ai ~ bbobby~ ~"aa>"' Cw7pG w ;;.7 ~ mow-„ ~ ~ cC°] aci of b ~ d z~'.l~~p"a ~ry.~C'7x d `8 A °~C7 v zGwz EO•- N e~~~ ew w w I c'~•°~ e o~> F wF~yw e o E'"ga ~V 5 0 L o ° Ca A ~"9°CpE LUL6 y wp m w0 w o v 3? o y m yb'- d ns a Eel AZ a w Fx- p > o A> y o ca v e>i wF w p Q w y ad 10 o U > aei v d w o t$ ° L a w O o o O W r- m aei W U a W ®w $ >,._p a v p a LLI A > > L w L C7 m C T 4 U TJ C O O G F p S 2.2 w W W w C d 8 y Q- u > C°l 'Ls C A w iwG tx., U a y f'~+ °C a aeFs eE Y ,C vV .C y ~eU C y y~ C ion ~ O X ~ ~ oCp ~ A w 0. QQ ~ a «S ~ Gal d 6 N cVV C y eV0 0. 9N3 U L N W ®p y Q 0 1 ~y is o~ `y° t>aC~ o w~~ eF o _ ° OA ou~ ~ Oy" w -9 L° > pp0 jv wa ° U S is 3tx- 7 U Cd N y 110 O C O C .0 x _ aOD e e O 0 -p o E S E •4., ,rd. .C a Q O C U N ~ U 'Z Y w V i •O C ,C O Vi cd Y ea z x > g aL> - D o ,n E O a r}~ 'aD a> w aQ~-'co ~ s r w C o d ° t rn A ~v y v S a~i C o 1~ b0 ~ MI N ~ ~ .a G a ~ e ~ v, 7 C .2 Z Az > ev w ~o F EG o at ~g "ag rr~C oD O C OI O u C. w y C V ay N 'G O O L' O OD ~ ~ ° GD °C ~ C ~C' >0 to - 6 V- as ejo,p E.. Rl O y C > e° y m CL O Le L>' D d C o w 3 m Q ,b A ~ o~ 3 8 x e.y .-,m oow E c ~ v~ ~ ~ ~ a.~ ~ h _ ca a~ a~ ° e o 'C a N a C I C c a c F Uv~AA 95 1 w F HO~Ait 65-a x242 Exhibit 2 Austin Bridgeport May 8, 2009 Corpus Christi Fort Worth HOLT CAT is the exclusive, authorized Caterpillar machine and engine sales, parts and service dealer for 118 North, North East, Central and Southern Texas counties spanning from the Red Grand Prairie River in the north to the Rio Grande in the south. With company headquarters is in San Antonio, Texas HOLT CAT has store locations in Austin, Irving Bridgeport, Corpus Christi, Irving, Fort Worth, Laredo, Longview, Texarkana, Tyler, Victoria, Waco and Weslaco and is responsible for supporting Caterpillar customers within and Laredo surrounding each of these facilities. As the only authorized Caterpillar dealership for 118 Texas counties, including Denton County, Lewisville HOLT CAT is fully authorized and capable of providing genuine Caterpillar parts and implementing Cat warranties on Cat certified services. Longview North Dallas Sincerely, Pflugerville Samantha Galloway San Antonio Product Support Sales Representative Sonora HOLT CAT 214-649-0479 Texarkana Tyler Victoria Waco Weslaco 3302 So. W. W. White Rd. • San Antonio, TX 78222 • tel 210.648.1111 • fax 210.648.0079 www.holtcat.com ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS PROVIDING FOR, AUTHORIZING, AND APPROVING THE EXPENDITURE OF FUNDS FOR THE REPAIR OF A CATERPILLAR MODEL 826G COMPACTOR FOR THE CITY OF DENTON SOLID WASTE DEPARTMENT FROM HOLT CAT WHICH IS AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH THE PERTINENT PROVISIONS OF CHAPTER 252 OF THE TEXAS LOCAL GOVERNMENT CODE EXEMPTING SUCH PURCHASES FROM THE REQUIREMENTS OF COMPETITIVE BIDDING; AND PROVIDING AN EFFECTIVE DATE (FILE 4321-REPAIR OF COMPACTOR AT LANDFILL IN AN AMOUNT NOT TO EXCEED $238,000). WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following purchase of materials, equipment or supplies, as described in the "File" listed hereon, and on file in the office of the Purchasing Agent, and the license terms attached are hereby approved: FILE NUMBER VENDOR AMOUNT 4321 Holt Cat $238,000 SECTION 2. The acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION 3. The City Manager is hereby authorized to execute any contracts relating to the items specified in Section 1 and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION 4. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2009. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: 4-ORD-File 4321 I DRAFT MINUTES 2 PUBLIC UTILITIES BOARD 3 May 18, 2009 4 5 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was 6 present, the Chair of the Public Utilities Board thereafter convened into an Open Meeting on 7 Monday, May 18, 2009 at 9:00 a.m. in the Service Center Training Room, City of Denton 8 Service Center, 901-A Texas Street, Denton, Texas. 9 10 Present: Chair Dick Smith, Bill Cheek, Phil Gallivan, John Baines, Randy Robinson and 11 Bill Grubbs 12 13 Ex Officio Members: 14 George C. Campbell, City Manager 15 Howard Martin, ACM Utilities 16 17 OPEN MEETING: 18 19 CONSENT AGENDA: 20 21 Board Member Bill Cheek pulled Item 10 for individual consideration. 22 23 ITEMS FOR INDIVIDUAL CONSIDERATION: 24 25 10) Consider recommending adoption of an ordinance awarding a contract for repairs to a 26 Caterpillar Model #826G Compactor, unit#SW0528 in an amount not to exceed $250,000. 27 28 Board Member Bill Cheek asked what year the compactor was purchased. Vance Kemler, Solid 29 Waste Manager, replied it was purchased from the City of Bryan, Texas in 2001. Kemler stated 30 that the compactor has logged a total of 13,000 hours of use and is now due for a full rebuild. 31 Kemler further stated that this is an excellent piece of equipment and that is why staff is 32 recommending the rebuild. Board Member Cheek stated he appreciated staff recommending the 33 repair of equipment in lieu of replacement. 34 35 Board Member Phil Gallivan asked if, during the down time, there was another compactor that 36 would be used. Kemler replied that the city did not have a backup machine and that staff will be 37 coming back to the PUB with a proposal to either lease or purchase another machine that will be 38 used during this period. Kemler stated that staff does not believe the city can operate without a 39 backup machine and, in fact, the TCEQ permit states there should have a primary as well as a 40 backup machine. Board Member Cheek as if the TCEQ stated that the backup machine can be 41 rental. Kemler replied yes. 42 43 Board Member Bill Cheek moved to approve Item 10 with a second from Board Member 44 Bill Grubbs. The motion was approved by a 6-0 vote. 45 46 The meeting was adjourned by consensus at 11:58 a. m. 47 AGENDA INFORMATION SHEET AGENDA DATE: June 2, 2009 Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Ross Chadwick 349-8832 ACM: Jon Fortune SUBJECT Consider adoption of an ordinance of the City of Denton, Texas providing for, authorizing, and approving the expenditure of funds for the purchase of hazardous materials chemical detection equipment for the City of Denton Fire Department from BST Technologies which is available from only one source in accordance with the pertinent provisions of Chapter 252 of the Texas Local Government Code exempting such purchases from the requirements of competitive bidding; and providing an effective date (File 4320-Purchase of Chemical Detection Equipment for Fire Department in the amount of $112,782.50). FILEINFORMATION This project was submitted to the State Administrative Agency for the 2007 Urban Area Security Initiative Grant Program (UASI) by the Regional Hazardous Materials Advisory Sub- Committee. This committee of the North Central Texas Council of Governments (NCTCOG) concluded this project was needed as a regional asset in North Texas. The funding for this project has been approved through the 2007 Urban Area Security Initiative Grant Program. This transaction is for the acquisition of chemical detection equipment. The Denton Fire Department is currently equipped with a Smith Hazardous Materials ID for solids and liquids. The Gas ID unit included in the attached quote is the companion piece. All units utilize the same software enhancing capability features. The purchase will be made with funds provided from the 2007 Urban Area Security Initiative Grant Program (UASI) ($111,855.00) and allocated hazardous materials funds in the Fire Department's budget ($927.50). BST Technologies is the sole North American distributor for the Civilian Emergency Response Division of Smith Detection, Inc. and Smith's Detection is the only manufacturer of the HGVI multi-sensor gas and vapor identifier; therefore, this is a sole source acquisition. Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, do not have to be competitively bid. RECOMMENDATION Award the purchase of the chemical detection equipment to BST Technologies in the amount of $112,782.50. Agenda Information Sheet June 2, 2009 Page 2 PRINCIPAL PLACE OF BUSINESS BST Technologies Fort Worth, TX ESTIMATED SCHEDULE OF PROJECT The equipment should be received and in-service within 180 days of receipt of order. FISCAL INFORMATION This project will be funded from Grant account 342013.8535 in the amount of $111,855 and Fire Department account 320100.6334 in the amount of $927.50. Requisition 93403 has been entered in the Purchasing software system. EXHIBITS Exhibit 1: Quote from BST Technologies Exhibit 2: Sole Source Letter Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent I -AIS-File 4320 Exhibit 1 QUOTATION /4/1 Airport Freeway Fort Worth, TX 76118 Phone (817) 292-0591 Fax (817) 595-7933 Toll Free 1-877-292-0500 DATE: May 5, 2009 QUOTATION 050409MAl CUSTOMER: Denton Fire Department 322 E Hickory Denton, TX 76201 Attn: Mike Tucker Comments or Special Instructions: SALESPERSON DELIVERY VALID FOR SHIP VIA F.O.B. POINT TERMS Mike Segars 60 Days Fort Worth, TX Net 30 Days QUANTITY DESCRIPTION PART NUMBERS UNIT PRICE AMOUNT 1 Smiths HGVI Hand-Held Multi-Sensor Gas & Vapor Identifier 025-1003 $41,000.00 $41,000.00 for TICs and CWAs (Partnership Package) 1 Smiths GasID Portable FT-IR Gas and Vapor identification 023-3005 $67,500.00 $67,500.00 Tool for Emergency Responders (Partnership Package) 2 Ludlum Model 14C-RK Emergency Response Kit 48-2653 $2,141.25 $4,282.50 SUBTOTAL $ 112,782.50 TAX RATE SALES TAX - SHIPPING & HANDLING TOTAL $ 112,782.50 WE ARE PLEASED TO OFFER FOR YOUR CONSIDERATION! Exhibit 2 21 Commerce Drive Danbury, CT 06810 USA T: +1 203 207 9700 F: +1 203 207 9780 Wednesday, May 13, 2009 www.smithsdetection.com Sole Source Confirmation Smiths Detection, Inc. is the sole manufacturer and distributor of the following Smiths Detection products: • HazMatID - all configurations and accessories • GasID - all configurations and accessories • RespondeR RCI - all configurations and accessories • Sabre 4000 and FR - all configurations and accessories • APD 2000 - all configurations and accessories • LCD and LCD FR - all configurations and accessories • Partnership Programs for all systems • Databases/Libraries for all systems These products are not available through any other sales channel. If you have received pricing information from persons or companies other than Smiths Detection, Inc. and our employees it will be considered non-authorized by Smiths Detection, Inc. Smiths Detection, Inc. will only accept, service, warranty and support orders for systems that are placed directly with Smiths Detection, Inc. If you have any questions please feel free to contact me. Sincerely, Robert Bohn Regional Vice President / General Manager Global Military and Emergency Response Tel: 203-207-9743 Bob.Bohngsmlthsdetectlon.com Smiths [ n- Danbury AS ,nitt_. ip_.., npany ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS PROVIDING FOR, AUTHORIZING, AND APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF HAZARDOUS MATERIALS CHEMICAL DETECTION EQUIPMENT FOR THE CITY OF DENTON FIRE DEPARTMENT FROM BST TECHNOLOGIES WHICH IS AVAILABLE FROM ONLY ONE SOURCE IN ACCORDANCE WITH THE PERTINENT PROVISIONS OF CHAPTER 252 OF THE TEXAS LOCAL GOVERNMENT CODE EXEMPTING SUCH PURCHASES FROM THE REQUIREMENTS OF COMPETITIVE BIDDING; AND PROVIDING AN EFFECTIVE DATE (FILE 4320-PURCHASE OF CHEMICAL DETECTION EQUIPMENT FOR FIRE DEPARTMENT IN THE AMOUNT OF $112,782.50). WHEREAS, Section 252.022 of the Local Government Code provides that procurement of items that are only available from one source, including; items that are only available from one source because of patents, copyrights, secret processes or natural monopolies; films, manuscripts or books; electricity, gas, water and other utility purchases; captive replacement parts or components for equipment; and library materials for a public library that are available only from the persons holding exclusive distribution rights to the materials; need not be submitted to competitive bids; and WHEREAS, the City Council wishes to procure one or more of the items mentioned in the above paragraph; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following purchase of materials, equipment or supplies, as described in the "File" listed hereon, and on file in the office of the Purchasing Agent, and the license terms attached are hereby approved: FILE NUMBER VENDOR AMOUNT 4320 BST Technologies $112,782.50 SECTION 2. The acceptance and approval of the above items shall not constitute a contract between the City and the person submitting the quotation for such items until such person shall comply with all requirements specified by the Purchasing Department. SECTION 3. The City Manager is hereby authorized to execute any contracts relating to the items specified in Section 1 and the expenditure of funds pursuant to said contracts is hereby authorized. SECTION 4. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2009. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: 4-ORD-File 4320 CITY OF DENTON CITY COUNCIL MINUTES April 6, 2009 After determining that a quorum was present, the City Council convened in a Special Called Work Session on Monday, April 6, 2009 at 11:30 a.m. at North Lakes Recreation Center. PRESENT: Mayor Burroughs; Mayor Pro Tern Kamp; Council Members Heggins, Moreno, Mulroy, Thomson and Watts. ABSENT: None 1. The Council received a report and held a discussion regarding an update on the GreenSense Program and other energy programs. Lisa Lemons, Community Relations Manager, presented information on the GreenSense Program. The current rebate program was being replaced with the Energy Save Program. It added customer incentives for insulation, radiant barriers, programmable thermostats, solar water heaters, windows, HVAC, solar screens and photovoltaic installations. The customer incentives were for residential and commercial customers. The Rebate Program was well received in the community. In January 2009 there were 23 authorized installers, in February 2009 there were 63 and in March 2009 there were 82 authorized installers. The rebates totaled $9,149.60 for January 2009, $7,901.66 for February 2009 and $9,652.15 for March 2009. GreenSense, in the first quarter, had resulted in a total of 47.36 kW savings, which was equivalent to 25,574.40 kWh of electricity that did not need to be generated. The Energy Audit Program was revamped in January/February 2009 to add a thermal imaging camera as a tool for audits. The infrared camera showed customers areas of concern in existing structures. It could detect air infiltration, insulation vacancies, and heat/cold loss. To enhance the Energy Audit Program, an Energy Programs Specialist was added. This individual had already completed training in home energy rating, combined heat and power assessment, Introduction to Industrial Technologies, Emerging Steel Technologies, ITPS Top Low-to-No- Cost Improvements and InfraCAM Basics Certification. The City also offered a CFL bulb exchange program. Since the beginning of this program in 2008, DME and Solid Waste had exchanged more than 10,000 CFLs. According to Energy Star calculations, the CFL bulb exchange program could potentially produce an annual savings of $90,507 to customers, 4,500,000 kWhs of energy over the life of the CFLs, 575.72 cars removed from the road for a year and 714.73 acres of forest not being polluted. Mayor Burroughs asked for a running estimate of the total upgrades versus the amount of rebates. Lemons stated that staff would be attending upcoming community events to get the word out about the energy programs. Council Member Heggins asked if apartments were available for energy audits. Lemons replied yes but that it was harder to change factors in an apartment than in a home. The apartment complex had to be willing to make the necessary improvements. City of Denton City Council Minutes April 6, 2009 Page 2 Mayor Burroughs asked about a grading program. A fee could be charged for a comprehensive energy audit and if the building were brought up to standards, it would receive a set rating from the City. Lemons indicated that they had talked about and were working on specifics of such a program. Mayor Pro Tern Kamp indicated that the First United Methodist Church was working on an energy awareness program. Council Member Thomson stated that some of the area churches had a "carbon fast" program during Lent. Mayor Burroughs asked about federal funds for weatherization projects. Lemons stated that the receipt of such funds would depend on the arrangement by the organization designated to dispense the funds. With no further business, the meeting was adjourned at 12:30 p.m. MARK A. BURROUGHS MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES April 7, 2009 After determining that a quorum was present, the City Council convened in a Work Session on Tuesday, April 7, 2009 at 3:30 p.m. in the Council Work Session Room at City Hall. PRESENT: Mayor Burroughs; Mayor Pro Tem Kamp; Council Members Heggins, Moreno, Mulroy, Thomson and Watts. ABSENT: None City Manager Campbell indicated that Consent Agenda Item 3R would be pulled from the agenda and considered at a later date. 1. Requests for clarification of agenda items listed on the agenda for April 7, 2009, including but not limited to: a) Explanation and discussion of Public Hearing 4B regarding buffer, screening and fencing requirements. Mark Cunningham, Director of Planning and Development, stated that Council had reviewed this item in a work session on March 3, 2009. He reviewed the buffer, screening and fencing changes in the proposed ordinance. Additional changes proposed after the March 3rd work session included revising the buffer requirements for large tracts of land located in remote areas to provide flexibility in the type and number of landscaping requirements; broadening the category of allowed buffer trees; the addition of wood, vinyl pvc and composite materials to the list of allowed construction materials for refuse container screening; adding "immediate" to the definition of outside storage; and revising the wording to allow easements to be included in required public or drainage easements. b) Explanation and discussion of Consent Agenda Item 3T regarding residential collection service and parking requirements in front of dumpsters. Howard Martin, Assistant City Manager, stated that there were two issues affecting Solid Waste services identified by the property maintenance review. Those issues included solid waste services currently being provided to townhomes and inaccessible dumpsters in the street right-of- way that were being blocked by parked cars. There were a few single family attached dwellings (certain townhomes and condominiums) that were negatively impacted by the current language which did not allow carts to be stored in the front yard. Three existing townhome developments did not have a convenient access to move their carts from the rear of their property to the front curb on collection day. Wording in the proposed ordinance would correct that situation. A second issue was inaccessible containers in the street right-of-way. A no parking zone was proposed for these types of containers with an associated recurring fee at the same rate to provide funding for future improvements associated with the parkway container sites. The Property Maintenance Code Committee looked at the fee similar to a loading zone fee with a renewal fee to just cover the on-going cost to maintain the signage and pavement markings. However, the Traffic Safety Commission proposed a reoccurring annual fee. The primary reason for that position was that there might be other areas that needed to be addressed. The issue of the fee was not addressed in the Consent Agenda item on this agenda. Only the no parking zone and the location of the trash receptacles were addressed in the proposed ordinance. City of Denton City Council Minutes April 7, 2009 Page 2 Council Member Watts stated that some dumpsters in the right-of-way had been there for a long time. The solid waste trucks could not access some of those and could not empty the container. Currently there was no enforcement capability on the part of the police department to prevent parking in front of the dumpsters. The Property Maintenance Code Committee was not recommending a reoccurring fee and was not not trying to create a reserve fund. Martin replied that with appropriate signage the police department would be able to enforce the parking restriction. Council Member Thomson asked about Consent Agenda Item 3K involving the purchase of an aerial device and rental of a chassis from Peterbilt. Mike Ellis, Fleet Superintendent, stated that the City would get the chassis from Peterbilt for $1 which was Peterbilt's new hybrid transmission. In turn the City would maintain and supply Peterbilt with various types of test reports, performance records, and maintenance costs. Mayor Burroughs asked about Consent Agenda Item 3G and whether this was an annual renewal or a multiyear renewal and when it would be reviewed. The original contract was for $56,000 and the change order was for $100,000. He asked what the dollar threshold was when a different contract would be needed rather than a continuation of another contract. Martin replied that this was an annual contract. The activity used last year was used to predict the contract for this year and was bid at a similar amount. Dirt work for a pumping station project was needed and it used more of the contract than anticipated. 2. The Council received a report, held a discussion and gave staff direction regarding updating the International Fire Code. Rick Jones, Fire Marshal, stated that the purpose of the International Codes was to establish minimum requirements to safeguard the public health, safety and general welfare. The 2006 International Fire Code was now ready for adoption. Because the codes were designed to be national, local amendments were required to meet the needs of local jurisdictions. The Fire Department had performed a comprehensive local review of the proposed local changes. Staff had also met with the Legal Department regarding the content of the 2006 International Fire Code and local amendments, as well as being reviewed by the Construction Advisory and Appeals Board. 3. The Council received a report, held a discussion and gave staff direction regarding proposed amendments to Subchapter 12 of the Denton Development Code (DDC). This was a staff initiated Code amendment to add temporary storage containers and other portable storage units, occasional sales, and farmer's markets as temporary uses in Subchapter 12. (DCA08- 0008) The Planning and Zoning Commission recommended approval (6-0). Mark Cunningham, Director of Planning and Development, stated that staff had received complaints from residents regarding shipping containers and other portable storage units located in front yards and visible from the street or adjoining properties for long periods of time. It was discovered that there were currently no provisions in the Development Code governing shipping containers or other portable storage units. These proposed amendments would include temporary storage containers and other portable storage units, occasional sales, and farmer's City of Denton City Council Minutes April 7, 2009 Page 3 markets as temporary uses in Subchapter 12. Staff was proposing language that would allow the use of shipping containers and other portable storage units on a temporary basis by the issuance of a temporary use permit. The proposed changes would also permit occasional sales and farmer's markets as temporary uses. Council Member Watts asked about temporary storage and setback requirements. Cunningham stated that each zoning category had setbacks. The purpose was to avoid having the container too close to the property line. The essence was the temporary nature of the use and not to have it on the property forever. Mayor Burroughs asked about flower sales at the mall and the use of temporary storage there. Cunningham stated that was considered part of the retail makeup of the mall. This proposal was concerned more with uses in residential zoning districts. Mayor Burroughs asked about a temporary storage container not in the line of sight but was a concern of a neighbor. Cunningham stated that anything 120 square feet or larger would need a permit. 4. The Council received a report, held a discussion and gave staff direction regarding the rezoning of approximately 27.2 acres of land from a Neighborhood Residential 3 (NR-3) zoning family development (NRMU) and a Neighborhood Residential Mixed Use 12 (NRMU-12) zoning district classification and use designation; with consideration being given to Johnson Street to the west, Ruth Street to the south and Hill Street to the east. (SI08-0003) The Planning and Zoning Commission tabled the item on January 21, 2009 (4-0). Mark Cunningham, Director of Planning and Development, reviewed the history of the proposal. Council previously had tabled the item and asked staff to go back into the neighborhood to study a broader area. Prior to 2002, the proposed rezoning was zoned MF-1 which would have allowed duplexes. The area was a mixed used residential area. Given the diversity of uses, staff recommended Residential Mixed Use-12 with an overlay district and Neighborhood Residential Mixed with an overlay. That type of zoning would make all current uses conforming. On October 7, 2008, Council directed staff to look at a larger area and consider a city-initiated rezoning effort or a Small Area Plan. The purpose of the rezoning effort was to apply zoning classifications that were more consistent with the existing uses within the area. On January 21, 2009, the Planning and Zoning Commission directed staff to revisit the neighborhood with the goal of laying the concerns to rest which were raised by the neighborhood during the public hearing. A total of five neighborhood meetings were held to speak with residents of Southeast Denton to hear their concerns and work with them to come up with resolutions. The community indicated that they were in opposition to any rezoning of any property in the area, including the staff initiated proposed rezoning of the subject property. Staffs recommendation was to withdraw the request to rezone the property. Council Member Watts asked if Mr. Washington had an option to do some type of "spot" zoning on the property. Cunningham replied correct that he still had that option. City of Denton City Council Minutes April 7, 2009 Page 4 Council Member Watts asked about fees. Cunningham stated that there would be no additional fees if Mr. Washington proceeded with his proposal. A recent code amendment would now require additional off street parking which would limit the number of bedrooms that could be built. Mayor Burroughs asked why duplexes would not be allowed with a specific use permit. Cunningham stated that if a specific use permit were allowed, all existing duplexes would be nonconforming. Mayor Burroughs suggested looking at a small area plan to allow for some realism for development of single lots. Following the completion of the Work Session the Council convened into a Closed Session at 5:15 p.m. to consider the following: 1. Closed Meeting: A. Consultation with Attorneys - Under Texas Government Code, Sec. 551.071. 1. Received a briefing and further status report from the City's attorneys regarding the litigation entitled The City of Denton, Texas v. The University of North Texas, Cause No. 2008-20043-158, now pending before the 158th Judicial District Court in and for Denton County, Texas; discuss, deliberate and provide the attorneys with direction. A public discussion of these legal matters would conflict with the duty of the City's attorneys to the City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. 2. Consulted with City's attorneys on legal issues and potential settlement of threatened litigation, involving the claim of Dorothy Farris. B. Deliberations regarding Real Property - Under Texas Government Code Section 551.072; Consultation with Attorney - Under Texas Government Code Section 551.071. 1. Discussed, deliberated and received information from staff and provided staff with direction pertaining to the grant of an easement for the construction, maintenance and operation of a rail line within the Denton Rail Corridor to the Denton County Transportation Authority (DCTA), the limits of said corridor being all that certain lot, tract or parcel of land described in that certain Quitclaim Deed from Missouri Pacific Railroad Company to the City of Denton, Texas dated August 9, 1993, and filed on August 24, 1993, as Clerk No 93-R0058485 in the Real Property Records of Denton County, Texas; and also being that same property described in that certain Correction Quitclaim Deed, dated June 1, 2001 and filed for record in the Real Property Records of Denton County, Texas as Volume City of Denton City Council Minutes April 7, 2009 Page 5 4857, Page 020211 where such deliberation in an open meeting would have a detrimental effect on the position of the City Council in negotiations with DCTA. Consultation with the City's attorneys regarding legal issues associated with the granting of said easement above described where a public discussion of these legal matters would clearly 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. C. Deliberations regarding Certain Public Power Utilities: Competitive Matters - Under Texas Government Code Section 551.086. 1. Received a status report, discussed, deliberated, considered and approved a Power Purchase Agreement for Firm Energy and Associated Renewable Energy Credits by and between the City of Denton, as Purchaser and NextEra Energy Power Marketing, LLC., as Seller. This matter is a Public Power competitive and financial matter. 2. Received a status report from DME Staff regarding the Power Purchase Agreement that is now in effect, dated May 17, 2006 by and between the City of Denton, Texas as Purchaser and Constellation Energy Commodities Group, Inc. Discuss and deliberate this Public Power competitive and financial matter and provide Staff with direction. D. Consultation with Attorneys - Under Texas Government Code, Sec. 551.071. 1. Received a briefing and status report from the City's attorneys regarding the litigation entitled City of Bryan v. TMPA, Cause No. 28,169, pending in the 250th Judicial District Court in and for Travis County, Texas; as well as Ex Parte TMPA, Cause No.D-1-08-003426, in the 250th Judicial District Court in and for Grimes County, Texas; and the City of Bryan v. the Cities of Denton, Garland and Greenville, Cause No. D-1-GN-08- 003693, pending transfer to a District Court in Hunt County, Texas from the 200th Judicial District Court in and for Travis County, Texas. Discuss and deliberate and provide the attorneys with direction. A public discussion of these legal matters would conflict with the duty of the City's attorneys to the City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. 2. Consulted with City's attorneys on legal issues, including potential settlement of litigation styled Collegiate Community Outreach d/b/a UNT Chi Alpha, et al. v. City of Denton, et al., Cause No. 4:07cv564, currently pending in the US District Court, Eastern District, Sherman Division. Regular Meeting of the City of Denton City Council on Tuesday, April 7, 2009 at 6:30 p.m. in the Council Chambers at City Hall. City of Denton City Council Minutes April 7, 2009 Page 6 1. PLEDGE OF ALLEGIANCE The Council and members of the audience recited the Pledge of Allegiance to the U. S. and Texas flags. 2. PROCLAMATIONS/PRESENTATIONS A. Proclamations/Awards 1. Presentation of "Denton Redbud Festival Day" Proclamation Mayor Burroughs presented a proclamation for Denton Redbud Festival Day and also received a Tree City USA presentation. 3. CONSENT AGENDA Mayor Burroughs stated that Item 3R would be considered separately. A Comment Card was received from Robert Donnelly on Items 3C-F. Kamp motioned, Mulroy seconded to approve the Consent Agenda and accompanying ordinances and resolutions with the exception of Item R. On roll vote, Heggins "aye", Kamp "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "aye", and Mayor Burroughs "aye". Motion carried unanimously. Item R was considered. Mulroy motioned, Kamp seconded to table Item R. On roll vote, Heggins "aye", Kamp "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "aye", and Mayor Burroughs "aye". Motion carried unanimously. A. Approved a request for an exception to the Noise Ordinance for the purpose of a music festival, the 2nd Annual BeanStock, sponsored by Cool Bean's Bar and Grill. The event was to be held on Saturday, April 18, 2009, beginning at 11:00 a.m. and concluding at 12:00 a.m. The exception was specifically requested for extension of the hours of operation for amplified sound. B. Approved a request for an exception to the Noise Ordinance for the purpose of playing music and operating a public address system during the Juneteenth Celebration, sponsored by the Juneteenth Committee. The event will be located in the Fred Moore Park on Friday, June 19, 2009, beginning at 6:00 p.m. and concluding at 11:00 p.m.; and on Saturday, June 20, 2009, beginning at 11:00 a.m. and concluding at midnight. This request was for an exception to the hours of operation and for an increase in sound decibels to 75 decibels for the evening concerts. C. 2009-065 - An ordinance approving a salary increase for George C. Campbell under the performance review provision of his employment agreement with the City; authorizing the expenditure of funds; and providing an effective date. City of Denton City Council Minutes April 7, 2009 Page 7 D. 2009-066 - An ordinance approving a salary increase for Anita Burgess under the performance review provision of her employment agreement with the City; authorizing the expenditure of funds; and providing an effective date. E. 2009-067 - An ordinance approving a salary increase for Robin A. Ramsay under the performance review provision of his employment agreement with the City; authorizing an increase in deferred compensation; authorizing the expenditure of funds; and providing an effective date. F. 2009-068 - An ordinance approving a salary increase for Steve Shepherd under the performance review provision of his employment agreement with the City; approving an increase in car allowance; authorizing the expenditure of funds; and providing an effective date. G. 2009-069 - An ordinance authorizing the City Manager to execute change order number one to the contract between the City of Denton and Jagoe-Public Company; providing for the expenditure of funds therefor; and providing an effective date (Bid 3413-Annual Contract for Trucking Services Change Order Number One in the amount of $100,000 for a total bid award not to exceed $156,000). H. 2009-070 - An ordinance authorizing the City Manager to execute a change order to amend the lease purchase financing agreement between the City of Denton and Chase Equipment Leasing, Inc.; providing for the expenditure of funds therefor; and providing an effective date (File 4247-Third Party Lease Purchase of Solid Waste and Waste Water Vehicles and Equipment change order to amend approximate finance charges to $183,198.50 for 60 months in the estimated principal sum of $1,686,746 for an estimated total payback amount of $1,869,944.50 1. 2009-071 - An ordinance authorizing the City Manager to execute an interlocal cooperative purchasing program agreement with the City of Keller, Texas under section 271.102 of the Local Government Code, to authorize participation in various City of Keller contracts for the purchase of various goods and services; authorizing the expenditure of funds therefor; and declaring an effective date (File 4267-Interlocal Agreement with the City of Keller, Texas). J. 2009-072 - An ordinance authorizing the City Manager to execute an interlocal cooperative purchasing program agreement with the Denton County Transportation Authority (DCTA) under section 271.102 of the Local Government Code, to authorize participation in various DCTA contracts for the purchase of various goods and services; authorizing the expenditure of funds therefor; and declaring an effective date (File 4268-Interlocal Agreement with the Denton County Transportation Authority). K. 2009-073 - An ordinance awarding a contract under the Texas Multiple Award Schedule (TXMAS) program for the purchase of a bucket truck with aerial device as awarded by the State of Texas Building and Procurement Commission (Contract TXMAS-3 -23 0 10); providing for the expenditure of funds therefor; and City of Denton City Council Minutes April 7, 2009 Page 8 providing an effective date (File 4272-Bucket Truck with Aerial Device awarded to Altec Industries, Inc. in the amount of $132,788). The Public Utilities Board recommended approval (4-0). L. 2009-074 - An ordinance of the City of Denton authorizing the City Manager or his designee to execute a purchase order through the Houston-Galveston Area Council (H-GAC) and Buy Board Cooperative Purchasing Network for the acquisition of a flushing truck for the City of Denton Wastewater Collections Department by way of an Interlocal Agreement with the City of Denton; and providing an effective date (File 4285-Interlocal Agreement for the purchase of a Flushing Truck for Wastewater Collections Department awarded to Rush Truck Center, Crane in the amount of $91,262 for a Peterbilt Truck Model 340 cab and to VAC-CON Inc. in the amount of $185,100.96 for a sewer cleaner/flushing chassis for a total award amount of $276,362.96). The Public Utilities Board recommended approval (4-0). M. 2009-075 - An ordinance awarding a contract under the Texas Multiple Award Schedule (TXMAS) program for the purchase of a Volvo L70F Wheel Loader as awarded by the State of Texas Building and Procurement Commission (Contract TXMAS-7-23 VO 10); providing for the expenditure of funds therefor; and providing an effective date (File 4286-Wheel Loader awarded to Romco Equipment Co. in the amount of $138,874). The Public Utilities Board recommended approval (4-0). N. 2009-076 - An ordinance accepting competitive bids and awarding a public works contract for the construction of concrete pavement for the Denia Park trail; providing for the expenditure of funds therefore; and providing an effective date (Bid 3516-awarded to the lowest responsible bidder meeting specification, Floyd Smith Concrete, Inc. in the amount of $127,110.77). 0. 2009-077 - An ordinance accepting competitive bids and awarding a contract for the purchase of miscellaneous electric utility hardware and materials for the City of Denton Warehouse; providing for the expenditure of funds therefor; and providing an effective date (Bid 4260-Miscellaneous Electric Utility Hardware and Materials for Warehouse Stock awarded to the lowest responsible bidder meeting specification for each item in the estimated amount of $145,000). P. 2009-078 - An ordinance of the City of Denton, Texas, appointing Robin A. Ramsay as Presiding Judge for the City of Denton Municipal Court of Record; appointing Kimberly Cawley McCary as Assistant Judge for the City of Denton Municipal Court of Record; appointing Earlean Cobbin Murphy as Assistant Judge for the City of Denton Municipal Court of Record; appointing Gregory L. Bertrand as Assistant Judge for the City of Denton Municipal Court of Record; appointing Ann Stephens Poston as Assistant Judge for the City of Denton Municipal Court of Record; appointing James Horton as Assistant Judge for the City of Denton Municipal Court of Record; appointing Dennis Engler as Assistant Judge for the City of Denton Municipal Court of Record; establishing terms of office for municipal judges in accordance with applicable State statutes; providing City of Denton City Council Minutes April 7, 2009 Page 9 for renewal and extension of terms absent specific action by Council; authorizing the Mayor to execute a contract for term of office; ratifying terms of contract; and declaring an effective date. Q. 2009-079 - An ordinance of the City of Denton, Texas, authorizing the City Manager to submit an application under the National School Lunch Act to obtain funding for the 2009 Summer Food Service Program; if such funding is granted, the City Manager is authorized to execute the Summer Food Service Program agreement with the Texas Department of Human Services and execute a contract with the Denton Independent School District and all additional documents and agreements, as required; authorizing the expenditure of funds to administer the program; and providing an effective date. R. NOTE-THIS ITEM WAS TABLED AND NOT CONSIDERED-Consider adoption of an ordinance authorizing the City Manager to execute change order number one to the contract between the City of Denton and Redflex Traffic Systems, Inc. for operation of an automated traffic signal enforcement program; providing for the expenditure of funds therefor; and providing an effective date (File 3364-Change Order Number One Contract Extension). S. 2009-080 - An ordinance approving a Compromise Settlement & Release of all claims between Dorothy Farris and the City of Denton for settlement of a claim; authorizing the City Manager and City Attorney to take actions necessary to finalize settlement of this claim; authorizing the expenditure of budgeted funds in the amount stated therein; and declaring an effective date. T. 2009-081 - An ordinance adding a new Subsection, Section 18-3, Section (b)(4) to "authority of Traffic Engineer" of Chapter 18 "Motor Vehicles and Traffic" of the Code of Ordinances of the City of Denton, Texas; and an ordinance in lieu of and in substitution for Section 24-43 "Residential Collection Service" of the Code of Ordinances of the City of Denton, Texas; providing a severability clause; providing a penalty cause; and declaring an effective date. U. Approved the minutes of: February 17, 2009 February 19, 2009 March 2, 2009 March 3, 2009 March 10, 2009 4. PUBLIC HEARINGS A. The Council held a public hearing and considered adoption of an ordinance of the City of Denton, Texas, amending Subchapters 12, 13, and 23 of the Denton Development Code to clarify standards and regulations regarding outside storage and outside display requirements, revise the requirement for window or door areas for single-family residential dwellings, multiple unit residential dwellings and multi-family development, provide definitions for windows and doors, and revise the definitions of front lot line, front yard, rear yard and side yard; and providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability City of Denton City Council Minutes April 7, 2009 Page 10 and an effective date. (DCA08-0009) The Planning and Zoning Commission recommended approval (6-0). Mark Cunningham, Director of Planning and Development, stated that these were code amendments relative to outside storage, definitions for windows, doors, and outside storage/outside display. The proposed amendments to the Denton Property Maintenance Code would regulate both commercial and residential outside storage. In addition, language differentiating outside storage from outdoor display was proposed for clarity and congruency between the two documents. Cunningham reviewed the provisions for window/door opening requirements. The current code required that all walls, except gabled roof areas, which faced a street other than an alley, must contain at least 25% of the wall space in windows or doors. This provision applied to single- family residential structures only and often made it difficult to create a functional floor plan that met both the minimum window/door opening requirements and exceeded the Energy Code requirements by 10%. As a result an applicant might use false windows or doors. Developers of multi-family developments and multiple unit residential dwelling had identified similar issues as being challenging. Staff was recommending alternative language which would correct this situation for both single-family residential and multifamily residential units. The Mayor opened the public hearing. No one spoke during the public hearing. The Mayor closed the public hearing. The following ordinance was considered: NO. 2009-082 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING SUBCHAPTERS 12, 13, AND 23 OF THE DENTON DEVELOPMENT CODE TO CLARIFY STANDARDS AND REGULATIONS REGARDING OUTSIDE STORAGE AND OUTSIDE DISPLAY REQUIREMENTS, REVISE THE REQUIREMENT FOR WINDOW OR DOOR AREAS FOR SINGLE-FAMILY RESIDENTIAL DWELLINGS, MULTIPLE UNIT RESIDENTIAL DWELLINGS AND MULTI-FAMILY DEVELOPMENT, PROVIDE DEFINITIONS FOR WINDOWS AND DOORS, AND REVISE THE DEFINITIONS OF FRONT LOT LINE, FRONT YARD, REAR YARD AND SIDE YARD; AND PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF, SEVERABILITY AND AN EFFECTIVE DATE. Mulroy motioned, Watts seconded to adopt the ordinance. On roll vote, Heggins "aye", Kamp "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "aye", and Mayor Burroughs "aye". Motion carried unanimously. City of Denton City Council Minutes April 7, 2009 Page 11 B. The Council held a public hearing and considered adoption of an ordinance of the City of Denton, Texas, amending Subchapters 13 and 23 of the Denton Development Code to clarify the buffer, screening and fencing requirements in Subchapter 13; providing definitions for master planned development, buffer, fence, perimeter fence, and screening; deleting Sections 16- 129 through 16-131 of the Denton Code of Ordinances; and providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date. (DCA08-0012) The Planning and Zoning Commission recommended approval (5-0). Mark Cunningham, Director of Planning and Development, stated that staff was proposing language to clarify the buffer, screening and fencing requirements found in Subchapter 13 of the Development Code to assure consistency and congruity between the Development Code and the Property Maintenance Code. In terms of buffers, Cunningham noted buffer locations, effect of easements, and a buffer matrix which outlined the requirements for buffers and was based on the intensity/density between land use categories. Cunningham continued with perimeter fencing and screening requirements. Staff was recommending that perimeter fencing not be mandatory but when used must have specific requirements. Fence materials, security fences, fence height, fence location, setbacks, and clear visibility areas were noted. Staff wanted to be flexible to allow different types of fencing materials. Cunningham completed his presentation with an explanation of setbacks, clear visibility areas, and screening for refuse containers. The Planning and Zoning Commission along with staff recommended approval of these changes. The Mayor opened the public hearing. Larry Reichhart, 2405 Mustang Drive, Grapevine, 76051, spoke in opposition. The Mayor closed the public hearing. Mayor Burroughs asked about fencing on the inside of the buffer. Cunningham stated that the only requirements for fencing on the inside of a buffer dealt with perimeter fencing. Council discussed fencing requirements and perimeter fencing standards. Council Member Watts questioned who owned a buffer especially in the case where it might be split between adjacent homeowners. Cunningham stated that if the buffer were split down the middle, both homeowners would be required to maintain the buffer. The owner of the property the buffer was on would be responsible for maintenance of the buffer. The following ordinance was considered: City of Denton City Council Minutes April 7, 2009 Page 12 NO. 2009-083 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING SUBCHAPTERS 13 AND 23 OF THE DENTON DEVELOPMENT CODE TO CLARIFY THE BUFFER, SCREENING AND FENCING REQUIREMENTS IN SUBCHAPTER 13; PROVIDING DEFINITIONS FOR MASTER PLANNED DEVELOPMENT, BUFFER, FENCE, PERIMETER FENCE, AND SCREENING; DELETING SECTIONS 16-129 THROUGH 16-131 OF THE DENTON CODE OF ORDINANCES; AND PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF, SEVERABILITY AND AN EFFECTIVE DATE. Kamp motioned, Heggins seconded to adopt the ordinance. On roll vote, Heggins "aye", Kamp "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "aye", and Mayor Burroughs "aye". Motion carried unanimously. C. The Council held a public hearing and considered adoption of an ordinance of the City of Denton, Texas, approving a concept plan amendment to allow for the relocation of a storage tank facility on a property located within a Planned Development (Robson Ranch Planned Development, PD-173) zoning district, generally located east of Florence Road, east of Crawford Road, north of Robson Ranch Road and west of the proposed Inspiration Development (MPC 07-0001); and providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date. (Z08-0022) The Planning and Zoning Commission recommended approval (6-0). Mark Cunningham, Director of Planning and Development, stated that the applicant was proposing to amend the existing approved Concept Plan for the Robson Ranch Planned Development to relocate one of the two approved saltwater storage tank facilities. The proposed location was more than 100 feet from any existing residential property and 300 feet from any existing public assembly area, institution or school and was approximately 3.612 acres in size. The Planning and Zoning Commission recommended approval with two conditions. The first was that there would be no access to or from the well sites through any developed portion of Robson Ranch Planned Development. The second was that prior to the construction of underground pipelines associated with a gas well park, the applicant would submit documentation to the Fire Marshal showing the location of the underground pipelines connection to such gas well park, including flow and gathering lines and lines to the storage tank facility. The Mayor opened the public hearing. Larry Reichhart, Springbrook Planning Group, spoke in favor of the proposal. He stated that condition #1 indicated "well sites". He suggested the wording be changed to "storage facility". Also the applicant name should be listed as Springbrook Planning Group. Comment cards in support of the proposal were submitted by Carson Carter, Brian Boylan, John Harris and Martin Garza. The Mayor closed the public hearing. City of Denton City Council Minutes April 7, 2009 Page 13 The following ordinance was considered: No. 2009-084 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING A CONCEPT PLAN AMENDMENT TO ALLOW FOR THE RELOCATION OF A STORAGE TANK FACILITY ON A PROPERTY LOCATED WITHIN A PLANNED DEVELOPMENT (ROBSON RANCH PLANNED DEVELOPMENT, PD-173) ZONING DISTRICT, GENERALLY LOCATED EAST OF FLORENCE ROAD, EAST OF CRAWFORD ROAD, NORTH OF ROBSON RANCH ROAD AND WEST OF THE PROPOSED INSPIRATION DEVELOPMENT (MPC 07-0001); AND PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF, SEVERABILITY AND AN EFFECTIVE DATE. (Z08- 0022) Thomson motioned, Heggins seconded to adopt the ordinance with the change in language from "well site" to "storage facility" and the name of the applicant to Springbrook Planning Group. On roll vote, Heggins "aye", Kamp "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "aye", and Mayor Burroughs "aye". Motion carried unanimously. D. The Council held a public hearing and considered adoption of an ordinance of the City of Denton, Texas, approving a detail plan amendment for five gas well parks and a storage tank facility within a Planned Development (Robson Ranch Planned Development, PD-173) zoning district, generally located east of Florence Road, east of Crawford Road, north of Robson Ranch Road, and west of the Inspiration Development (MPC 07-0001); and providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date. (Z08-0023) The Planning and Zoning Commission recommended approval (6-0). Mark Cunningham, Director of Planning and Development, stated that this detail plan would allow the development of four gas well parks and a storage tank facility on property currently zoned Planned Development. Ordinance 2001-247 permitted gas well parks within the Robson Ranch development. Staff recommended approval with 6 conditions. Council Member Watts noted that the ordinance allowing the gas well parks included a restriction that the well must not be within 100 feet of a residential property. That figure was not consistent with the current city ordinance. Cunningham stated that the distance requirement was part of the planned development and that the proposed detailed plan met that restriction. Council Member Thomson asked what was the current regulation from a residential property. Cunningham stated that it depended on when something was built. The restriction was 500 feet if a residence was already there; 200 feet if the well was first and the residence was built later. The Planned Development conditions were already in effect when the sites were approved. The Mayor opened the public hearing. City of Denton City Council Minutes April 7, 2009 Page 14 The following individuals spoke during the public hearing: Larry Reichhart, Springbrook Planning Group, spoke in favor. He requested a change in several of the conditions. Those changes included extending the hours of operation by an hour, taking out the language that the applicant would enter into a road remediation agreement as it should be just the operator of the gas well, and changing the language to indicate that only four wells and not five were being considered. Council Member Mulroy stated that maintenance was the issue in terms of hours of operation. He questioned why there was no language regarding working during emergencies. Council Member Watts agreed and that there was no definition of drilling operations. He questioned if the city could regulate those hours of access based on development of mineral estate. City Attorney Burgess stated that the Council was acting on a zoning matter in a legislative capacity. This would not be a prohibition of the extraction of minerals but a restriction on the zoning activity. Council Member Watts asked about language for emergency access. Jerry Drake, Deputy City Attorney, stated that it was his recommendation to not include language for emergency operations. If emergency language was included, the City would have to disprove an emergency situation rather than the operator defend an emergency situation. Council Member Mulroy questioned by the City would tell a responsible party that in case of an emergency they could not come in after 5 p.m. Drake replied that it was suggested for the purpose of an enforceable event. Council Member Mulroy felt that it was creating an environment that the operator would not be allowed if there was an emergency. Language was needed that was common sense. Reichhart suggested using wording similar to "unless drilling operations in progress, the well was being reworked, or in case of an emergency at a particular well site." John Fersch, 9609 Lindenwood Trail, Denton, 76207 - opposed and suggested tabling the item until residents could settle the issue of the gas wells and misrepresentations from Robson Ranch sales individuals. Dorothy Fersch, 9609 Lindenwood Trail, Denton, 76207 - opposed Jo Blizzard, 9617 Lindenwood Trail, Denton, 76207 - opposed Comment cards in support of the proposal were received from Brian Boylan, Carson Carter, John Harris and Martin Garza. City of Denton City Council Minutes April 7, 2009 Page 15 Mr. Richhart was allowed a five minute rebuttal. He stated that the well site would be more than 100 feet from the residences and the developer was trying to get as far award from the property lines as possible. The landscaping would meet Robson requirements which were more stringent than the City's. After the wells were drilled, there would be a minimal amount of noise. Council Member Mulroy asked about lighting. He knew that during the drilling the rigs were lit but asked about lighting after that. Reichhart stated that there would be motion lighting and would meet the city code. Council Member Moreno asked about moving the location of Well Site G. A representative from Encana Oil & Gas indicated that they could not drill in the core area and needed to do horizontal drilling and it would be difficult to move Well Site G any further out from the residences. Council Member Watts asked about the planting of the required landscaping. Reichhart stated that the City typically gave time to delay planting until the fall season when the hot weather was over. This was done administratively by staff. Council Member Mulroy asked if the fence would be up immediately. Cunningham replied correct. Rosemary Spence, 9613 Lindenwood, Denton 76207 - opposed until settle with Robson on sale of lots and gas well issue. The Mayor closed the public hearing. City Attorney Burgess stated that changes to the proposed ordinance included striking Item H from Conditions #2 and #6; the applicant was Landmark Surveyors LLC; Condition #2 strike "applicant"; consideration was for four gas well and not five; and use the language "gas parks" not "gas wells". Thomson motioned, Heggins seconded to adopt the ordinance with the amended language as noted by the City Attorney. Council Member Moreno motioned to table the item. He would like to see Gas Well G moved further from the existing neighborhood. Watts seconded the motion. Council Member Watts questioned whether the motion was to table the entire item or just Gas Well Gl. City Attorney Burgess stated that Council could pass a portion of the ordinance and exclude Gas Well Site G. City of Denton City Council Minutes April 7, 2009 Page 16 Reichhart stated that the issue would hinge on a third party coming to the table which could not be predicted when it would happen. Moreno motioned, Heggins seconded to table until after consideration of the Items for Individual Consideration. On roll vote, Heggins "aye", Kamp "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "aye", and Mayor Burroughs "aye". Motion carried unanimously. 5. ITEMS FOR INDIVIDUAL CONSIDERATION A. Tabled - Consider adoption of an ordinance of the City of Denton, Texas approving an interlocal cooperation agreement and granting an easement to the commuter rail line; and declaring an effective date. The Mobility Committee recommends approval (3-0). (Tabled from March 3, 2009) Mayor Burroughs indicated that this item would remain on table. B. Tabled - Consider adoption of an ordinance authorizing settlement of litigation styled Collegiate Community Outreach d/b/a UNT Chi Alpha, et al. v. City of Denton, et al., Cause No. 4:07cv564, currently pending in the US District Court, Eastern District, Sherman Division, under terms previously discussed in Closed Session, and further authorizing the City Manager to approve a compromise settlement agreement, and such other documents recommended by the City's attorneys as necessary or appropriate to effectuate such terms of settlement; approving the expenditure of budgeted funds; and declaring an effective date. (Tabled from March 10, 2009) Mulroy motioned, Watts seconded to remove the item from the table. On roll vote, Kamp "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "aye", and Mayor Burroughs "aye". Motion carried unanimously. The following ordinance was considered: NO. 2009-086 AN ORDINANCE AUTHORIZING SETTLEMENT OF LITIGATION STYLED COLLEGIATE COMMUNITY OUTREACH DIBIA UNT CHI ALPHA, ET AL. V. CITY OF DENTON, ET AL., CAUSE NO. 4:07CV564, CURRENTLY PENDING IN THE US DISTRICT COURT, EASTERN DISTRICT, SHERMAN DIVISION, UNDER TERMS PREVIOUSLY DISCUSSED IN CLOSED SESSION, AND FURTHER AUTHORIZING THE CITY MANAGER TO APPROVE A COMPROMISE SETTLEMENT AGREEMENT, AND SUCH OTHER DOCUMENTS RECOMMENDED BY THE CITY'S ATTORNEYS AS NECESSARY OR APPROPRIATE TO EFFECTUATE SUCH TERMS OF SETTLEMENT; APPROVING THE EXPENDITURE OF BUDGETED FUNDS; AND DECLARING AN EFFECTIVE DATE. Watts motioned, Kamp seconded to adopt the ordinance with the change in signage as noted during the Closed Session. On roll vote, Kamp "aye", Moreno "aye", Mulroy "aye", Thomson 11 aye", Watts "aye", and Mayor Burroughs "aye". Motion carried unanimously. City of Denton City Council Minutes April 7, 2009 Page 17 C. The Council considered an appeal of the denial of a Certificate of Appropriateness by the Historic Landmark Commission for the replacement of windows at 1708 W. Oak Street. The site was zoned Neighborhood Residential (NR-3) and was located within the West Oak Area Historic District. The Historic Landmark Commission denied the request (5-1). Mark Cunningham, Director of Planning and Development, stated that the applicant had replaced windows in his home without a certificate of appropriateness which was required for property located in a historical district. The Historic Landmark Commission denied the applicant's certificate for appropriateness and instructed him to replace the six windows in question with windows that matched the type that were removed. Mayor Burroughs asked if the problem was with the design of the windows. Cunningham stated that the original windows were 15 over 1; fifteen individual panes over one large pane. The applicant replaced those windows with 9 over 1, one large pane with dividers. In order to have windows 15 over 1 the windows would have to be custom made and would be extremely costly. Council Member Watts stated that he could understand preserving the integrity of the historic nature on the home and the original architecture. On the other hand were energy efficiency and the encouragement of the city for homeowners to upgrade to efficient windows. However, he felt that in a historic district the rules must be followed. The applicant did not follow the rules and did not pull a permit to replace the windows. Watts motioned, Kamp seconded to uphold the Historic Landmark Commission's decision and deny the appeal. On roll vote to deny the appeal, Kamp "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "aye", and Mayor Burroughs "aye". Motion carried unanimously. D. The Council considered nominations/appointments to the City's Boards and Commissions 1. Human Services Advisory Committee 2. Planning and Zoning Commission Council Member Heggins nominated Barbara Brown to the Human Services Advisory Committee. She also nominated John Ryan to the Planning and Zoning Commission. Mayor Pro Tem Kamp asked to have an Executive Session discussion on the Planning and Zoning Commission nomination. On roll vote to approve the nomination of Barbara Brown to the Human Services Advisory Committee, Kamp "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "aye", and Mayor Burroughs "aye". Motion carried unanimously. Consideration of the nomination for the Planning and Zoning Commission would be scheduled for the next council closed session. City of Denton City Council Minutes April 7, 2009 Page 18 Council continued with consideration of Public Hearing 4D. Kamp motioned, Watts seconded to remove the item from the table. On roll vote, Heggins "aye", Kamp "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "aye", and Mayor Burroughs "aye". Motion carried unanimously. Martin Garza, Encana, asked if the motion was to table Item G only. Mayor Burroughs asked if Well Site G could be brought back with Gas Well Site H. Garza stated that H was not noticed properly. From a timing standpoint, it would put G at a disadvantage to wait for H. His preference would be to consider G at this meeting. Mayor Burroughs noted that the motion was to table Item G. Council Member Watts asked if Council could pass the ordinance and exclude Well Site G or table part of an ordinance. City Attorney Burgess stated that Council could table Well Site G and amend the ordinance at the next council meeting to include Item G. Drake stated that there could be two ordinances; one with all the well sites except for G and at than a future meeting at a date certain bring back Well Site G. Mayor Pro Tern Kamp stated that the current motion was to table the entire ordinance. She felt that the Council was inserting itself into a civil matter. Mayor Burroughs suggested approving Item 4D with the exception of Well Site G and direct staff to prepare a second ordinance to consider Well Site G on April 21, 2009. The new ordinance would have the same terms and conditions as the ordinance being considered this evening. The proposed ordinance this evening would have the changes as noted earlier by the City Attorney. Moreno withdrew his motion to table and Watts withdrew his second. The following ordinance was considered: NO. 2009-085 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING A DETAIL PLAN AMENDMENT FOR FIVE GAS WELL PARKS AND A STORAGE TANK FACILITY WITHIN A PLANNED DEVELOPMENT (ROBSON RANCH PLANNED DEVELOPMENT, PD-173) ZONING DISTRICT, GENERALLY LOCATED EAST OF FLORENCE ROAD, EAST OF CRAWFORD ROAD, NORTH OF ROBSON RANCH ROAD, AND WEST OF THE INSPIRATION DEVELOPMENT (MPC 07-0001); AND PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF, SEVERABILITY AND AN EFFECTIVE DATE. (Z08- 0023) City of Denton City Council Minutes April 7, 2009 Page 19 Thomson motioned, Heggins seconded to adopt the ordinance amending the language as noted by the City Attorney and tabling consideration of Well Site G until April 21, 2009. Cunningham asked if the motion was to table Well Site G, what was staff looking for in terms of an objective to determine when it would be appropriate to bring it back to Council. Mayor Burroughs stated that it would be the same terms and conditions as now; the tabling would just allow for a discussion between the homeowners and Robson representatives. City Manager Campbell stated that staff should report back if the residents were successful in holding a meeting with Robson representatives. On roll vote, Heggins "aye", Kamp "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "aye", and Mayor Burroughs "aye". Motion carried unanimously. E. Citizen Reports 1. Council reviewed procedures for addressing the City Council. 2. Receive citizen reports from the following: a) Carolyn Phillips regarding the membership of the Property Maintenance Code Committee. b) Jordan Hudspeth regarding concerns of Southeast Denton. c) Lanisha Hudspeth regarding concerns of Southeast Denton. d) Hagar Hudspeth regarding concerns of Southeast Denton. e) Willie Hudspeth regarding concerns of Southeast Denton. None of the citizens listed above were present at the meeting. F. 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. • Council Member Thomson asked for a work session regarding a non-smoking ordinance in public places. G. Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. There was no continuation of Closed Meeting items on the agenda. H. Official Action on Closed Meeting Item(s) under Sections 551.071-551.086 of the Texas Open Meetings Act. There was no official action on Closed Meeting items. City of Denton City Council Minutes April 7, 2009 Page 20 With no further business, the meeting was adjourned at 10:16 p.m. MARK A. BURROUGHS MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES April 14, 2009 After determining that a quorum was present, the City Council convened in 2nd Tuesday Session on Tuesday, April 14, 2009 at 4:00 p.m. in the City Council Work Session Room. PRESENT: Mayor Burroughs; Mayor Pro Tern Kamp; Council Members Heggins, Moreno, Mulroy, Thomson and Watts. ABSENT: None 1. The Council received a report, held a discussion and gave staff direction regarding the preliminary Five Year Financial Forecast and the Over 65 Property Tax exemption. Bryan Langley, Director of Finance, stated that the overview and purpose of the presentation included a review of FY 2008-09 long-term plan, discussion on possible changes to assumptions for the preliminary FY 2009-10 long-term plan, provide information concerning over 65 property tax exemptions, discussion on possible exemptions in the context of the five year financial forecast and the next steps in the budgeting process. Key assumptions - Key assumptions in the 2008-09 long-term plan included appraised value growth; sales tax growth; franchise fee growth; transfers; merit increase-civilian; meet & confer; and health insurance. Assumptions for appraised value growth were at 3.3% for 2009, 4% for FY 2010, 7% for FY 2011-2013. Sales Tax growth was assumed at 2% for 2009 and 2010 and 5% for the remaining three years. Franchise fee growth was projected at 2% for the remaining 4 years; transfers at 6% for 2009 and 2% for 2010-2013; merit increases at 4% for all years of the plan; meet and confer at various percentages for 2009 and 4% for the remaining 4 years; and health insurance with a 6% growth for all years of the plan. Appraised value history - over time appraised values had increased substantially; with 3.3% growth last year. Most other years had high single or double digit growth. Adopted 2008-09 long term plan - included a possible 2.5 cent tax increase in 2010-11 with new funding of $.5 million per year. No particular programs were anticipated. This was just a planning tool. Key assumption changes - Due to current economic conditions, changes being considered included: (1) reduce appraised value growth assumption from 4% to 0% in 2009-10 and 4% for future years which would incorporate anticipated loss of revenue associated with Denton Presbyterian Hospital; (2) reduce sales tax growth assumption from 5% to 2% for 2010-11 forward; (3) incorporate an additional 1% for franchise fees for Denton Municipal Utilities; (4) reduce expected building permit and inspection fees for 2009-10 and 2010-11; and (5) adjustments were based on preliminary information with additional changes to be considered during the upcoming budget process. Impact of AV/sales tax growth assumptions - reduction in sales tax growth assumption from 5% to 2% beginning in 2011 reduced income by $7.1 million over the five-year planning horizon. Combined impact of appraised value and sales tax assumption adjustments resulted in a decline of approximately $24 million of the five year planning horizon. City of Denton City Council Minutes April 14, 2009 Page 2 Fund balance reserve - a higher beginning fund balance was predicted than previously forecast. The ending fund balance from 2007-2009 was reviewed. Preliminary 2009-10 long term plan - included a 2.5 cent tax increase for 2010-11; a 1% franchise fee; new funding; and 0% ad valorem growth for FY 2010 with 4% each year thereafter. Other items to be considered - (1) updated long term plan was primarily based on FY 2008-09 plan with revenues and expenses not specifically mentioned not updated and the upcoming budget process to refine the plan; (2) the financial plan assumed an additional $500,000 per year for new and/or enhanced program which equated to $7.5 million over the five-year planning horizon; (3) the plan assumed an annual average 4% increase in employee compensation which equated to approximately $10 million over the five-year planning horizon; (4) non-airport gas well funds could be appropriated for General Fund purposes; (5) management had considerable latitude and flexibility to heavily influence costs over the coming years; (6) slight adjustments to appraised value, compensation, sales tax, and other assumptions could have a profound impact on the plan such as a 1% increase in appraised value estimate for each year added approximately $9 million to the five year plan with later years of the plan affected most; (7) the financial plan should not be considered in absolute terms but should guide decision making by providing a general forecast of the future; and (8) the financial plan was still in its infancy and much work would be needed to be done before the plan was completed in late July. Actions already taken - the 2008-09 adopted budget included funding for 22 new positions in the General Fund; however, due to concerns over the forecast, management had not filled 13 of those positions and those 13 positions had been removed from the long term plan. Management had also implemented a "soft" hiring freeze with all vacant positions requiring ACM approval to be filled. Additional actions might be necessary as projections were finalized. Current property tax exemptions offered - the individual value of exemptions for disabled persons, disabled veterans, homestead and over age 65 were reviewed. Other entities exempt from property taxes in the City of Denton included UNT, TWU, Denton ISD properties, Denton County facilities, and Federal and State properties Over 65 exemptions in the Metroplex were reviewed. Over 65 exemption tax impact - for every $5,000 increase in the over 65 property tax exemption; approximately $148,000 would be lost. If the exemption were increased from $25,000 to $55,000 approximately $888,000 in additional revenue would be lost on an annual basis with $596,000 lost in the General Fund and $292,000 lost in the GO Debt Service fund. If the exemption was increased to $55,000, total annual loss of revenue would equate to approximately $1.6 million. Recommendation - for any changes to be effective in 2009-10, Council must approve an ordinance by July 1, 2009. Since the final appraised values were not known, committing to an increase in the exemption may be premature at this time. Staff would present alternatives for consideration in the 2009-10 proposed budget. City of Denton City Council Minutes April 14, 2009 Page 3 Next steps - next steps to consider included (1) continue to refine revenue and expenditure estimates; (2) preliminary appraised value estimates would be available May 15th with weekly updates for appraised values provided until the final figures were released; (3) during May-July management would refine projections and prepare a recommended budget with regular updates to the Council; (4) the certified appraised values would be received from DCAD on July 24th; and (5) September 22nd the Council would adopt the tax rate and approve the Annual Program of Services. Mayor Burroughs stated that the situation was such that Denton's exemption was lower than neighboring cities and that the problem, at some point, needed to be addressed. A secondary issue was a mechanism where the program would be tied to a need basis rather than a blanket over 65 exemption. Council Member Mulroy asked about the purpose of a tax exemption for people over 65. Langley stated that the most common justification was that seniors were on a fixed income that was not growing and to provide an exemption to relieve of some of the property tax burden. There really was a variety of different reasons. Council Member Mulroy stated that these were individuals who had retired and had their income plateau. The exemption was one way to protect their ability to stay on their property because their income was either flattened or diminished. Years ago the principle of an exemption had been accepted and now it was needed to determine the right amount of the exemption. The right thing to do was to catch up with other cities. It was not "if"but how to do the catch up. Langley stated that a phased in approach would be better than doing the increase all in one year. City Manager Campbell felt that Council needed to make a recommendation to consider some change for next year during the budget process. If the increase were going to be implemented for the next tax year, it needed to be done before July 1st. Robson Ranch residents had asked Council make a decision while the existing members were still on the Council. Council Member Heggins felt that based on the present economy, the over 65 residents had moved from a want stage to a needs stage. She suggested a two step plan of perhaps $15,000 per year. Langley replied that staff would need to know what type of stair step plan was wanted; a two year plan, $5000 per year or some other combination. Mayor Burroughs suggested preparing both of those types of scenarios including conclusions. How much would have to be eliminated or how much would be the increase tax for everyone. The proposal would either have to eliminate programs or shift the burden of the increase to all tax payers to accommodate the over 65 tax payers. Council also needed to know what they were budgeting made sense. Council Member Moreno stated that the lost revenues from Presbyterian Hospital and sales tax needed to be considered. He would be in favor of a five year phasing of $5000 per year. It was a difficult task to do until firmer budget figures were known. City of Denton City Council Minutes April 14, 2009 Page 4 Council Member Mulroy stated that it was not a matter of purpose or if it should be increased. It was how to do the right thing by the seniors. He would advocate that Council be in a position to make a commitment and pass an ordinance by July 1st with whatever plan the Council agreed to- whether that be all at once, in small steps or large chunks. Council Member Thomson stated that one encouraging sign was that commercial construction was going up. New buildings were coming on line which would help the local economy. He was in favor of a stair step approach to be presented before he was no longer on Council. Council Member Watts felt that there either had to be a subtraction off revenues or an addition to the tax rate. A tax shift burden was going on even without the addition of this tax exemption. Council needed to decide what kind of commitment it was going to make. City Manager Campbell felt that there was a consensus on the Council to do something. The question was when and what type of plan. Council could approve something at the next meeting whether that be $15, 000 this year and $15,000 next year, $5000 per year for five years or other possible options. Council Member Thomson expressed a concern about binding other councils for five years. The intention might be to bring the exemption up to a certain level in a number of years but this Council could not bind other councils to that decision. Council Member Mulroy was in favor of taking a first step this year. He would like to see some expenditures cut rather than new revenue in tax rate. Council Member Watts felt that bad times always caused people to look at things. He felt it would be good to go through the budget and identify areas that might not be achieving the goal they want. He felt that personnel costs should be the last thing to look at. Look at areas the city was subsidizing that it did not need to be doing. Not everything in expenditures was absolutely needed. With no further business, the meeting was adjourned at 5:35 p.m. MARK A. BURROUGHS MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES April 21, 2009 After determining that a quorum was present, the City Council convened in a Work Session on Tuesday, April 21, 2009 at 3:30 p.m. in the Council Work Session Room. PRESENT: Mayor Burroughs; Mayor Pro Tern Kamp; Council Members Heggins, Moreno, Mulroy, Thomson and Watts. ABSENT: None 1. Staff responded to requests for clarification of agenda items listed on the agenda for April 21, 2009. Item 5 B was discussed. Chuck Russell, Planning Supervisor, stated that two weeks ago Council considered a concept plan for a gas well storage facility and detailed plan for five gas well parks. Council approved an ordinance for three of the five gas well parks. The new proposal for Council consideration was a combined Gas Well G and H plus moving the new site further back from the property owners. Staff attended a neighborhood meeting but no consensus was reached for a position for the residential property owners. They had not seen the revised information from the developer. Council Member Watts stated that the Council backup information still indicated both wells. He questioned if the withdrawal request needed to go to the Planning and Zoning Commission for a formal withdrawal as there was no documentation which officially withdrew Well Site H, only an assumption that it would happen. Council Member Moreno asked if the proposal this evening was to approve both Site G and H. Russell replied that Council would be considering one well park but with the same number of gas heads. The distance requirement was a minimum of 500 feet and the proposed distance was 720 feet which was greater than what was required. Council Member Moreno stated that the actual well head would be further back than that as the 720 foot boundary was just to the start of the gas park. Council Member Thomson stated that the structures would be further back than the property line so the distance would be greater than required. City Manager Campbell asked if the owners had agreed to this proposal. Russell replied correct. City Manager Campbell asked if there was a restriction on the number of well heads in gas well park. Russell stated that there was no restriction on the number of well heads on a pad. Mayor Burroughs asked about Item I on the Consent Agenda. The attachment indicated that the winning bid was 120%. City of Denton City Council Minutes April 21, 2009 Page 2 Tom Shaw, Purchasing Agent, stated that the 120% included the entire bond amount. Adding 100 to the rest of the bidders would provide an equal comparison. 2. The Council received a report, held a discussion and gave staff direction regarding over 65 tax exemptions. Bryan Langley, Director of Finance, reviewed the impact of the over 65 exemption options. Overview and purpose of the presentation included presenting over 65 property tax exemption options for consideration; reviewing the preliminary 2009-10 five year financial forecast that was presented on April 14th; and presenting over 65 property tax exemptions options. Staff was directed to provide financial plan scenarios that incorporated various over 65 property tax exemptions. Option A would increase the exemption from $25,000 to $40,000 in 2009-10 and from $40,000 to $55,000 in 2010-11. Option B increased the exemption from $25,000 to $35,000 in 2009-10, from $35,000 to $45,000 in 2010-11 and from $45,000 to $55,000 in 2011- 12. The long term financial plan which included a 0% ad valorem growth for 2010 and a 4% each year thereafter was discussed. Option A would take about $4 million out of the long term financial plan. Council Member Moreno asked about the effect of Presbyterian Hospital going non-profit. Langley stated that the effect of Presbyterian Hospital was already built in the figures but was just not a separate line item. For every $5,000 of exemption, $150,000 would be lost for budget purposes. Option C increased the exemption by $5,000 per year starting in 2009. Council Member Moreno stated that all the scenarios did not have any provisions built in for reducing expenditures. Langley replied correct that it would be looked at during the budget process. Council Member Thomson stated that $900,000 was the same as a penny and a half on the tax rate. Langley replied correct. Mayor Pro Tern Kamp asked what would happen to the city's bond rating if the fund balance dropped below 12-15%. Langley stated that it could have a negative effect on the bond ratings, particularly in the debt service fund. Council Member Watts stated that whether the Council did this or not, the basic 5 year forecast showed a fund balance of 11.9% in third year and declining after that. Langley stated that it would be a problem if no corrections were made in expenditures and revenues. The City would have to have a plan to get the percentage back up to a sufficient level. City of Denton City Council Minutes April 21, 2009 Page 3 Langley stated that in order for any increase in the over 65 tax exemption to be effective in the 2009-10 budget, the Council would need to approve an ordinance by July 1st. Staff was recommending that the Council delay increasing the exemption amount until the final appraisal values were known for 2009-10. However, if Council wished to increase the amount prior to July 1st, staff was recommending Option C. Mayor Burroughs stated that he had asked staff to research the exemption to a need base rather than an age base. Staff had indicated that there was no mechanism to do that. Council Member Watts stated that the exemption was voluntary and an individual did not have to apply for it if he did not want to. He felt something needed to be done but was not sure about the amount or timing at this point in time. For the next tax bill it would be prudent to see what might happen with the appraisal rolls. Any kind of scenario could be used; it did not have to be equal increments each year. He was in favor of moving forward to give some relief this year if possible. Mayor Burroughs stated that if Council selected an option and the appraisal figures came in on May 15th quite different from the assumptions they were currently dealing with; Council could undo what it might do tonight. Langley stated that May 15th was a preliminary estimate of what might be the increased values in July. Last year staff missed that estimated number due to economics. Council could change the exemption amount again as long as it was done before July 1st Mayor Pro Tern Kamp indicated that she had a few basic problems with this proposal. She felt it was shifting the tax burden from one specific group to another. Many things could be done but the burden would still be there. She did not think Council had all the information it needed and should wait for the certified appraisal values. She questioned why they might do something now that might have to be undone in a couple of months. Why rush into this before they had all the information they needed. Council Member Thomson felt it was premature at this time especially not knowing what the certified values would be. He was also concerned about the shift in the tax burden. Many people were hurting during these economic times, not just the elderly. He would not be able to vote for an exemption increase at this point in time. Council Member Mulroy stated that the senior exemption was already in place so the debate was not whether to establish one. The question was the amount of the exemption. Information provided by the staff indicated that Denton was out of step with similar communities. Council needed to make a commitment that they recognized the gap and would work to close it. Option C was the minimum and most conservative that could be done at this time. Langley stated that all the options showed multiple year increases but each year Council would have to again vote on the increase. City Attorney Burgess stated that the "whereas" clauses in the ordinance would show an intent to increase the exemption each year but the action was for only one year. Each Council set its own budget. City of Denton City Council Minutes April 21, 2009 Page 4 Council Member Heggins agreed that something needed to be done and should be done now. She was in favor of Option B. Council Member Moreno felt that he would have difficulty voting on the proposal until he had firm numbers of the budget for this year. Council Member Watts felt that an increase in the exemption was long overdue and that the budget was going in the opposite direction. If Council was not going to do this, then there needed to be hard options for expenditures. He was in favor of doing something, but was not sure what it would be. If this was a one-time shot, then he would be in favor of an $8000-$9000 increase. Mayor Burroughs stated that this was a compelling problem with Denton out of whack with all surrounding cities. His strong preference was a needs based exemption. He knew both compelling needs individuals and wealthy individuals in this age category. He had no problem looking for future Councils to make a call on the exemption. $150,000 for this next year was not a problem but was a disaster three to four years out. A $5000 increase demonstrated a direction and future conduct for Council. Council Member Mulroy felt that the majority of the Council was willing to do something this year. A $5000 increase was at least acceptable to indicate that Council was getting started on a gradual increase. He would make that motion at the proper time during the regular meeting. Mayor Pro Tem Kamp asked about the timing of appraised values. Langley stated that the preliminary figures would be out on May 15th with the final certified values on July 25th. For an increase to be effective for the next fiscal year, the Council would have to pass an ordinance by July 1 st. 3. The Council received a briefing, held a discussion and gave staff direction on the proposed amendments to Subchapters 5 and 23 of the - Development Code (DDC) regarding Wrecker Services and Impound Lots. The DDC currently did not permit Wrecker Services or Impound Lots in any of the City's zoning districts, nor is the use defined in Subchapter 23 "Definitions." This was a staff initiated Code amendment. (DCA08-0010) The Planning and Zoning Commission recommended approval (6-0). Chuck Russell, Planning Supervisor, stated that the proposal was to amend Subchapters 5 and 23 of the Denton Development Code regarding wrecker services and impound lots. These were staff initiated amendments to define and locate these uses. The issues were that the use was not identified in the Development Code with new or relocating uses not accommodated; the existing definitions did not address the use; and the Code required transport to a licensed facility. Staff s recommendations were to permit wrecker services and impound lots within defined zoning districts; wrecker services and impound lots must comply with the Texas Administrative Code; the lot must be screened from rights-of-way, residential uses and zoning districts; and City of Denton City Council Minutes April 21, 2009 Page 5 must comply with environmentally sensitive areas and integrated storm water management or similar practices. A definition of wrecker and impound lots would also be added. This would not impact the existing 15 impound lots but would be for new locations. 4. The Council received a report, held a discussion, and gave staff direction concerning proposed amendments to Subchapter 23 of the Denton Development Code (DDC) regarding definitions of "City Engineer" and "Church". Chuck Russell, Planning Supervisor, stated that this item was discussed at a Planning and Zoning Commission work session two weeks ago. It involved the creation of two new definitions for city engineer and church. There were several staff members who at different times took on responsibilities which were similar to the city engineer. The proposed language allowed for certain decisions to be made to streamline the process. Jerry Drake, Deputy City Attorney, stated that the proposed language for church would better define a church use to allow some residential uses but would not allow someone to take up residence in the primary use of the church. Any type of residential use would have to be in a secondary structure not in the primary use of the church. Council Member Watts asked if this proposed language would help avoid a situation similar to the one on Oak Street. Drake replied that it would tighten it as must as possible according to the law. Council Member Thomson stated that one of the problems with a church in a residential area was parking. Russell stated that this definition did not impact parking. Following the completion of the Work Session, the City Council convened in a Closed Meeting at 5:10 p.m. to consider the specific items listed below under the Closed Meeting section of this agenda. 1. Closed Meeting: A. Deliberations regarding Certain Public Power Utilities: Competitive Matters - Under Texas Government Code Section 551.086. 1. Received a status report and discussed the Power Purchase Agreement for Firm Energy and Associated Renewable Energy by and between the City, as Purchaser and NextEra Power Marketing, LLC. as Seller. This matter was a Public Power competitive and financial matter. B. Deliberations regarding consultation with the City Attorney - Under Texas Government Code Section 551.071, Deliberations regarding Economic Development Negotiations - Under Texas Government Code Section 551.087. City of Denton City Council Minutes April 21, 2009 Page 6 1. Received a report and held a discussion regarding legal issues on matters in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with the provisions of the Texas Open Meetings Act, Chapter 551 of the Texas Government Code. Also held a discussion regarding the construction of needed infrastructure in the industrially zoned area along Airport Road, west of Interstate 35 in support of Project Odin. C. Deliberations regarding Personnel Matters - Under Texas Government Code Section 551.074. 1. Considered the appointment and duties of one appointee to the Planning and Zoning Commission. D. Consultation with Attorneys - Under Texas Government Code, Section 551.071. 1. Received a briefing from City's attorneys and held a discussion, pursuant to Section 551.071 of the Texas Government Code, of legal issues associated with a proposed amendment to Subchapter 23 of the Denton Development Code (DDC) regarding definition of "Church". 2. Received a briefing and further status report from the City's attorneys regarding the litigation entitled The City of Denton, Texas v. The University of North Texas, Cause No. 2008-20043-158, now pending before the 158th Judicial District Court in and for Denton County, Texas; discuss, deliberate and provide the attorneys with direction. A public discussion of these legal matters would conflict with the duty of the City's attorneys to the City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. E. Deliberations regarding Real Property - Under Texas Government Code Section 551.072; Consultation with Attorney - Under Texas Government Code Section 551.071. 1. Discussed, deliberated and received information from staff and provide staff with direction pertaining to the grant of an easement for the construction, maintenance and operation of a rail line within the Denton Rail Corridor to the Denton County Transportation Authority (DCTA), the limits of said corridor being all that certain lot, tract or parcel of land described in that certain Quitclaim Deed from Missouri Pacific Railroad Company to the City of Denton, Texas dated August 9, 1993, and filed on August 24, 1993, as Clerk No 93-R0058485 in the Real Property Records of Denton County, Texas; and also being that same property described in that certain Correction Quitclaim Deed, dated June 1, 2001 and filed for record in the Real Property Records of Denton County, Texas as Volume 4857, Page 020211 where such deliberation in an open meeting would have a detrimental effect on the position of the City Council in negotiations with DCTA. Consultation with the City's attorneys regarding City of Denton City Council Minutes April 21, 2009 Page 7 legal issues associated with the granting of said easement above described where a public discussion of these legal matters would clearly 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. F. Deliberations regarding consultation with the City Attorney - Under Texas Government Code Section 551.071, Deliberations regarding Economic Development Negotiations - Under Texas Government Code Section 551.087, and Deliberations regarding real property - Under Texas Government Code Section 551.072. 1. Received a report and held a discussion regarding legal issues on matters in which the duty of the attorney to the governmental body under the Texas Disciplinary rules of Professional conduct of the State Bar of Texas clearly conflicts with the provisions of the Texas Open Meetings Act, Chapter 551 of the Texas Government Code. Also hold a discussion regarding the leasing of land and financing of a city facility on University of North Texas property located at I-35 and North Texas Blvd. The discussion shall include financial information the City Council will review, including the offer of financial or other incentives. Regular Meeting of the City of Denton City Council on Tuesday, April 21, 2009 at 7:15 p.m. in the Council Chambers at City Hall. 1. PLEDGE OF ALLEGIANCE The Council and members of the audience recited the Pledge of Allegiance to the U. S. and Texas flags. 2. PROCLAMATIONS/PRESENTATIONS A. Proclamations/Awards There were no proclamations/presentations at this meeting. 3. CONSENT AGENDA Kamp motioned, Thomson seconded to approve the Consent Agenda and accompanying ordinances and resolutions. On roll vote, Heggins "aye", Kamp "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "aye", and Mayor Burroughs "aye". Motion carried unanimously. A. R2009-009 - A resolution allowing Pro-Fest, Inc. to be the sole participant allowed to sell alcoholic beverages at the Denton Arts and Jazz Festival April 24- 26, 2009, upon certain conditions; authorizing the City Manager or his designee to execute an agreement in conformity with this resolution; and providing for an effective date. The Parks, Recreation and Beautification Board recommended approval (6-0). City of Denton City Council Minutes April 21, 2009 Page 8 B. R2009-010 - A resolution allowing Miguelito's Restaurant to be the sole participant allowed to sell alcoholic beverages at the Cinco de Mayo Celebration on May 2, 2009, upon certain conditions; authorizing the City Manager or his designee to execute an agreement in conformity with this resolution; and providing for an effective date. The Parks, Recreation and Beautification Board recommended approval (6-0). C. Approved a request for an exception to the Noise Ordinance for the purpose of the Singing Oaks Church of Christ Community Festival to be held on Sunday, June 7, 2009, from 4:00 p.m. to 9:00 p.m. The event will be held in the church parking lot located at 101 Cardinal Drive. The requestor is specifically asking for an exception to the noise ordinance to allow amplified sound on Sunday. D. 2009-088 - An ordinance of the City of Denton, Texas repealing Ordinance No. 2006-291 and authorizing Assignment Pay for Fire Department employees in the classifications of Deputy Fire Chief, Battalion Chiefs who perform the specialized duties of Training Chief, Emergency Medical Services Chief and Resource Management Chief, Captain-Logistics /Maintenance Officer, Captain-Training Officer, Fire Marshal, Assistant Fire Marshal, Fire Protection Engineer Associate, Fire Inspector Specialist, Emergency Management Program Manager and Fire Recruitment Management Analyst who are assigned to perform assigned functions on a forty-hour work week in the Fire Department and providing an effective date. E. 2009-089 - An ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas and the Texas Woman's University to pay for services rendered by the Police and Fire personnel during the TWU Triathlon; providing for the expenditure of funds; and providing for an effective date. ($700) F. 2009-090 - An ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas and Juneteenth Committee for supplemental funding for Juneteenth; providing for the expenditure of funds; and providing for an effective date. ($1,250) G. Approved tax refunds for the following property taxes: Name Reason year Amount 1. Beebe Gerbosi Inv DCAD Supplemental Change 2006 $1,389.40 2. Beebe Gerbosi Inv DCAD Supplemental Change 2005 $1,141.18 3. Beebe Gerbosi Inv DCAD Supplemental Change 2003 $1,228.48 4. Golden Corral DCAD Supplemental Change 2006 $ 563.50 5. First Bank and Trust DCAD Supplemental Change 2006 $ 676.64 H. 2009-091 - An ordinance of the City Council of the City of Denton, Texas, approving a grant application from Virginia Hamilton from the Downtown Incentive Reimbursement Grant Program not to exceed $10,000; and providing City of Denton City Council Minutes April 21, 2009 Page 9 for an effective date. The Economic Development Partnership Board recommended approval (6-1). 1. 2009-092 - An ordinance accepting competitive bids and awarding an annual contract for the purchase of landscaping and sod replacement services for various City departments; providing for the expenditure of funds therefor; and providing an effective date (Bid 4258-Annual Contract for Landscaping/Sod Replacement Services awarded to Grey Construction in the annual estimated amount of $110,000). J. 2009-093 - An ordinance awarding a contract under the Buy Board program for the purchase of two bucket trucks with aerial devices; providing for the expenditure of funds therefor; and providing an effective date (File 4300-Bucket Truck with Aerial Device awarded to Southwest International, Inc. in the amount of $206,684.10). The Public Utilities Board recommended approval (5-0). K. 2009-094 - An ordinance of the City of Denton, Texas providing for, authorizing, and approving the expenditure of funds for the purchase of GE JMUX Multiplexer for the Denton Municipal Electric Communications Division from General Electric Company which is available from only one source in accordance with the pertinent provisions of Chapter 252 of the Texas Local Government Code exempting such purchases from the requirements of competitive bidding; and providing an effective date (File 4284-Purchase of GE JMUX Multiplexer for Denton Municipal Electric in the amount of $65,458.50). The Public Utilities Board recommended approval (5-0). L. 2009-095 - An ordinance of the City of Denton, Texas authorizing and approving a first extension to the agreement by and between the City of Denton, Texas and Denton 288, L.P. for the provision of sanitary sewer and water facilities entered into by the parties on the 5th day of June, 2007; providing the City Manager with authority to perform said first extension and to expend funds as necessary; providing an effective date. The Public Utilities Board recommended approval (4-0). M. 2009-096 - An ordinance of the City of Denton, Texas approving an Interlocal Cooperation Agreement in the Amount of $182,787 by and between the City of Denton and the University of Texas at Arlington for a three-year term to provide for landfill field testing at the City of Denton Landfill, research faculty and graduate student support for baseline and periodic ongoing studies on several parameters of the Denton Landfill that are associated with the biodegradation of its organic components; authorizing the City Manager or his designee to execute said agreement on behalf of the City of Denton; providing for the expenditure of funds; and providing an effective date. The Public Utilities Board recommended approval (4-0). N. 2009-097 - An ordinance approving the City Manager to execute a bond counsel agreement between the City of Denton and McCall Parkhurst & Horton, LLP, approving the expenditure of funds; and providing for an effective date. City of Denton City Council Minutes April 21, 2009 Page 10 0. 2009-098 - An ordinance amending Chapter 29 of the Code of the City of Denton, Texas, to provide for the adoption of the International Fire Code, 2006 Edition; providing for amendments thereto; re-establishing permit fees; providing for a penalty in the amount of $2,000 for violations thereof, providing for severability; repealing all ordinances in conflict therewith; and providing for an effective date. P. 2009-099 - An ordinance approving a lease agreement by and between the City of Denton, Texas, as Lessor and Tetra Point Fuel, L.L.C., as lessee regarding a tract of real property, being approximately 3.5 acres owned by the City of Denton, situated in the G. Walker Survey, Abstract No. 1330, City of Denton, Denton County, Texas; providing for a term of ten years regarding the ethanol production and processing plant of lessee; authorizing the City Manager to perform the applicable duties and the expenditure of funds therefor; declaring an effective date. The Public Utilities Board recommended approval (5-0). Q. R2009-011 - A resolution re-appointing Timothy S. Fisher as the City's representative to serve as a member of the Board of Directors of the Upper Trinity Regional Water District; and providing an effective date. The Public Utilities Board recommended approval (5-0). R. 2009-100 - An ordinance approving the adoption of an amendment to that Development Agreement between the City of Denton and Allegiance Hillview, LP dated June 17, 2008; and providing an effective date. 4. PUBLIC HEARINGS A. The Council held a public hearing and considered adoption of an ordinance of the City of Denton, Texas, amending the temporary use provisions of Subchapter 12 of the Denton Development Code, including the addition of temporary storage containers and other portable storage units, occasional sales, and farmers markets as temporary uses in Subchapter 12; amending Subchapter 23 of the Denton Development Code to provide definitions for temporary uses, temporary storage containers and other portable storage units, Christmas tree and pumpkin sales, field or construction office, special events and occasional sales; repealing the definition of "Occasional Sales" from Section 35.76, "Definitions and explanations" of the Denton Code of Ordinances; and providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date. (DCA08-0008) The Planning and Zoning Commission recommended approval (6-0). Chuck Russell, Planning Supervisor, stated that the proposed amendment would add temporary storage and portable storage units, Christmas tree and pumpkin sales, field or construction office and occasional sales definitions to the Development Code. The new language would provide that storage containers in rear yards were exempted from building permit and screening from public view plus would not have to have a temporary use permit. Staff s recommendation was to amend the definitions. The Mayor opened the public hearing. No one spoke during the public hearing. City of Denton City Council Minutes April 21, 2009 Page 11 The Mayor closed the public hearing. The following ordinance was presented: No. 2009-101 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING THE TEMPORARY USE PROVISIONS OF SUBCHAPTER 12 OF THE DENTON DEVELOPMENT CODE, INCLUDING THE ADDITION OF TEMPORARY STORAGE CONTAINERS AND OTHER PORTABLE STORAGE UNITS, OCCASIONAL SALES, AND FARMERS MARKETS AS TEMPORARY USES IN SUBCHAPTER 12; AMENDING SUBCHAPTER 23 OF THE DENTON DEVELOPMENT CODE TO PROVIDE DEFINITIONS FOR TEMPORARY USES, TEMPORARY STORAGE CONTAINERS AND OTHER PORTABLE STORAGE UNITS, CHRISTMAS TREE AND PUMPKIN SALES, FIELD OR CONSTRUCTION OFFICE, SPECIAL EVENTS AND OCCASIONAL SALES; REPEALING THE DEFINITION OF "OCCASIONAL SALES" FROM SECTION 35.76, "DEFINITIONS AND EXPLANATIONS" OF THE DENTON CODE OF ORDINANCES; AND PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF, SEVERABILITY AND AN EFFECTIVE DATE. (DCA08- 0008) Mulroy motioned, Heggins seconded to adopt the ordinance as presented. On roll vote, Heggins "aye", Kamp "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "aye", and Mayor Burroughs "aye". Motion carried unanimously. B. The Council held a public hearing and considered adoption of an ordinance of the City of Denton, Texas, providing for a zoning change of approximately 0.847 acres of land from a Neighborhood Residential 3 (NR-3) zoning district classification and use designation to a Neighborhood Residential Mixed Use (NRMU) zoning district classification and use designation, with an overlay district. The subject site was located on the northeast corner of Bonnie Brae and Panhandle Street. (Z09-0001) The Planning and Zoning Commission recommended approval (6-1). Chuck Russell, Planning Supervisor, stated that this request was for rezoning of property from Neighborhood Residential 3 to Neighborhood Residential Mixed Use with overlay district. The Planning and Zoning Commission had recommended approval while the Development Review Committee recommended denial of the zoning change request. The property was currently undeveloped and the applicant was proposing to use the property for a medical office. A non- binding site plan depicting a medical office to illustrate a potential development scenario on the site had been submitted. There would be no access on Bonnie Brae from the development. There were a number of restrictions and conditions which were listed in the agenda materials. Council Member Watts questioned the design criteria dealing with 10% of the window area on Bonnie Brae and Panhandle. It did not seem to be much area. City of Denton City Council Minutes April 21, 2009 Page 12 Council Member Moreno questioned the landscape buffers as there appeared to be no buffer to the east. Ron Menguita, Planning Supervisor, stated the buffer requirement for the east side was not in the overlay because the requirement was already met on the east with 10 feet. Mayor Pro Tern Kamp stated that the site plan was non-binding but the overlay district, restrictions and conditions would be binding. Russell replied correct. The Mayor opened the public hearing. Brad Andrus, applicant, spoke in favor. Council Member Watts stated that by ordinance the applicant was required to have only 10% window coverage. Based on the elevation would the applicant consider increasing the percentage? Larry Reichhart, Springbrook Planning Group, stated that they did not want too much window coverage as the proposal was for a medical office. Council Member Mulroy stated that the point was to have the appearance of glazing on that side and the exact percentage would have the same appearance of glazing on a neighborhood residence. Larry Reichhart, Springbrook Planning Group, spoke in favor. Brock Andrus, applicant, spoke in favor. Alex Payne, 923 Ridgecrest Circle, Denton, 76205, spoke in favor. David Williams, 819 Stanley, Denton, 76201, spoke in opposition. Comment cards were received from Jeri and Harry McClendon, 916 Stanley, Denton, 76201 who were opposed to the proposal. Reichhart was allowed a five minute rebuttal. He stated that the site plan was non-binding but all other elements were incorporated into the ordinance. The Development Review Committee opposition was related to the use of the overlay district. The Mayor closed the public hearing. The following ordinance was considered: NO. 2009-102 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR A ZONING CHANGE OF APPROXIMATELY 0.847 ACRES OF LAND FROM A NEIGHBORHOOD RESIDENTIAL 3 (NR-3) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION TO A NEIGHBORHOOD RESIDENTIAL MIXED USE (NRMU) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION, WITH AN OVERLAY DISTRICT. THE SUBJECT SITE WAS LOCATED ON THE City of Denton City Council Minutes April 21, 2009 Page 13 NORTHEAST CORNER OF BONNIE BRAE AND PANHANDLE STREET. (Z09- 0001). Mulroy motioned, Kamp seconded to adopt the ordinance with the noted restrictions and conditions. On roll vote, Heggins "aye", Kamp "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "aye", and Mayor Burroughs "aye". Motion carried unanimously. 5. ITEMS FOR INDIVIDUAL CONSIDERATION A. Tabled - Consider adoption of an ordinance of the City of Denton, Texas approving an interlocal cooperation agreement and granting an easement to the DCTA on the Denton Branch Rail Trail for the purpose of building a public commuter rail line; and declaring an effective date. The Mobility Committee recommends approval (3-0). (Tabled from March 3, 2009) This item remained on the table and was not considered. B. Tabled - Consider adoption of an ordinance approving a detail plan amendment for one gas well park within a Planned Development (Robson Ranch Planned Development, PD- 173) zoning district, generally located east of Florence Road, east of Crawford Road, north of Robson Ranch Road, and west of the Inspiration Development (MPC 07-0001); and providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date. (Gas Well Park G) (Tabled from April 7, 2009) Mulroy motioned, Watts seconded to remove the item from the table. On roll vote, Heggins "aye", Kamp "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "aye", and Mayor Burroughs "aye". Motion carried unanimously. Chuck Russell, Planning Supervisor, reviewed the history of site as discussed in the work session. Two weeks ago Council considered a concept plan for a gas well storage facility and detailed plan for five gas well parks. Council approved an ordinance for three of the five gas well parks. The new proposal for Council consideration was a combined Gas Well G and H plus moving the new site further back from the property owners. Staff attended a neighborhood meeting but no consensus was reached for a position for the residential property owners. They had not seen the revised information from the developer. Conditions 1, 2, 4, and 5 of the ordinance would remain the same. Condition #3, landscape plan, changed that the fence would be inside the landscaping as shown. The following individuals spoke on the issue: Rosemary Spence, 9613 Lindenwood Trail, Denton, 76207 - opposed John Fersch, 9609 Lindenwood Trail, Denton, 76207 - opposed Elma Walker, 9805 Grandview Drive, Denton, 76207 - neutral Steve Soriano, 9532 E. Riggs Road, Sun Lakes, Az. - support Comment cards were received from the following individuals: Jo Blizzard, 9617 Lindenwood Trail, Denton, 76207 - opposed Brian Boylan, 6109 Pine Hills Lane, Denton, 76210 - support Martin Garza, 1717 Main Street, Suite 2800, Dallas, 75201 - support City of Denton City Council Minutes April 21, 2009 Page 14 Council Member Watts noted that with the passage of the new configuration, Well H would be closed. Reichhart replied correct that it would go away. The following ordinance was considered: NO. 2009-104 AN ORDINANCE APPROVING A DETAIL PLAN AMENDMENT FOR ONE GAS WELL PARK WITHIN A PLANNED DEVELOPMENT (ROBSON RANCH PLANNED DEVELOPMENT, PD-173) ZONING DISTRICT, GENERALLY LOCATED EAST OF FLORENCE ROAD, EAST OF CRAWFORD ROAD, NORTH OF ROBSON RANCH ROAD, AND WEST OF THE INSPIRATION DEVELOPMENT (MPC 07-0001); AND PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF, SEVERABILITY AND AN EFFECTIVE DATE. (GAS WELL PARK G) Mulroy motioned, Moreno seconded to adopt the ordinance with the current changes. On roll vote, Heggins "aye", Kamp "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "aye", and Mayor Burroughs "aye". Motion carried unanimously. C. The Council considered adoption of an ordinance of the City of Denton, Texas, providing for limited exemptions of certain homesteads; providing for a severability clause; and providing an effective date. Bryan Langley, Director of Finance, stated that the ordinance proposed to Council at the Work Session had been amended to include increasing the exemption from $25,000 to $30,000 with language that it was the intent of the Council to increase in phases over time. Mayor Burroughs stated that the presentation in Work Session indicated that the staff recommendation was to not take action this year but if Council desired to do an increase this year, Option C would be used. Langley replied correct. The following individual submitted Speaker cards: Dorothy Fersch, 9609 Lindenwood Trail, Denton, 76207 - support. Elma Walker, 9805 Grandview Drive, Denton, 76207 - support Bill Giese, 1602 Highland Park Road, Denton, 76205 - opposed Comment Cards were submitted by the following individuals: Nancy Tong, 9417 Perimeter, Denton, 76207 - support Robert Keteltas, 9105 Starwood Lane, Denton, 76207 - support Larry Cashzzot, 9800 Grandview Drive, Denton, 76207 - support William Culhave, 9000 Citadel Drive, Denton, 76207 - support City of Denton City Council Minutes April 21, 2009 Page 15 David Durkin, 9817 Cypress, Denton, 76207 - support Gary Tong, 9417 Perimeter, Denton, 76207 - support Karen and Bruck Sandelin, 9712 Applewood Trail, Denton, 76207 - support Carol and Al Grundstrom, 10804 Flagstone, Denton, 76207 - support Vincent De Vincenzo, 11700 Oakbrook Court, Denton, 76207 - support Jo Blizzard, 9617 Lindenwood, Denton, 76207 - support Rosemary Spence, 9613 Lindenwood Trail, Denton, 76207 - support Dan and Shirlyan Hurt, 11200 Landmark Court, Denton, 76207 - support John Paul Eddy, 1320 Heather Lane, Denton, 76209 - support Judy Giese, 1602 Highland Park Road, Denton, 76205 - opposed Council Member Mulroy felt this was the first step to close the gap between Denton and surrounding communities which had a much higher exemption. He motioned to adopt the ordinance. Council Member Heggins seconded. Mayor Pro Tem Kamp stated that Denton was being compared to other cities like Frisco and Southlake. Denton had different needs than surrounding cities. She appreciated the staffs recommendation to wait until the appraised value was received. She was not in support of the motion. Council Member Thomson wished there was a needs based exemption but that was not allowed by state law. He felt this was not the right time to do this. The certified appraisal was not known at this time and he felt this would be shifting the tax burden from one group to another. He would be voting against the motion. Mayor Burroughs stated that Denton had a lot of exempt property as opposed to other cities considered. Because of the economic uncertainty the City could not be really aggressive in financial dealings. The impact for the first year was not very great but in the future it might be a problem. Council could undo this ordinance if preliminary figures were very much out of line. Council Member Heggins stated that the City had set the standard for the exemption years ago. The following ordinance was considered: NO. 2009-104 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR LIMITED EXEMPTIONS OF CERTAIN HOMESTEADS; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. On roll vote to adopt the ordinance, Heggins "aye", Kamp "nay", Moreno "nay", Mulroy "aye", Thomson "nay", Watts "aye", and Mayor Burroughs "aye". Motion carried with a 4-3 vote. D. The Council was provided a status report and provided staff with further direction regarding the Purchase Power Agreement for Firm Energy and Associated Renewable Energy by and between the City as Purchaser and NextEra Power Marketing, LLC. as Seller. City of Denton City Council Minutes April 21, 2009 Page 16 Mike Grim, Executive Manager of Power, stated that Council had discussed this item in Closed Session. Consensus of the Council was to proceed with the agreement. E. The Council considered nominations/appointments to the City's Boards and Commissions: 1. Planning and Zoning Commission Mayor Burroughs indicated that John Ryan had been nominated at a prior meeting. On roll vote, Heggins "aye", Kamp "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "aye", and Mayor Burroughs "aye". Motion carried unanimously. F. Citizen Reports 1. Council reviewed the procedures for addressing the City Council. 2. The Council received citizen reports from the following: a.) Carolyn Phillips regarding the membership of the Property Maintenance Code Committee. Ms. Phillips expressed a concern regarding the membership of the subcommittee. One member was in favor of the land owner's perspective. The mission statement indicated that health and safety was to be addressed. Southeast Denton had a lot of rental property and it was not fair to those who rent the property to have to maintain the property. b.) Nell Yeldell regarding discrimination against minority owners of rent homes in southeast Denton and metering at the residences at 514 Prairie/509 Maddox. Ms. Yeldell was not present at the meeting. c.) Amy Manuel regarding issues in District 3 including the need for a traffic light at Nicosia and North Elm and outside inspection of lease property. Ms. Manuel spoke on the rental property policy. She presented suggestions on inspections for apartments and single family home rental units. She also indicated that there was a need for a traffic light at Nicosia and North Elm as it would help slow down the traffic in that area. G. 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. There were no items presented for discussion. City of Denton City Council Minutes April 21, 2009 Page 17 H. Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. There was no continuation of the Closed Meeting. 1. Official Action on Closed Meeting Item(s) under Sections 551.071-551.086 of the Texas Open Meetings Act. There was no official action on Closed Session items. With no further business, the meeting was adjourned at 9:24 p.m. MARK A. BURROUGHS MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES May 4, 2009 After determining that a quorum was present, the City Council convened in a Special Called Work Session on Monday, May 4, 2009 at 11:30 a.m. at the Solid Waste Operations Building at 1527 S. Mayhill Road. PRESENT: Mayor Burroughs; Mayor Pro Tern Kamp; Council Members Heggins, Moreno, Mulroy, Thomson and Watts. ABSENT: None 1. The City Council participated in a tour of, and receive a briefing and hold a discussion regarding, the Landfill Facility; DCTA Operations; DTE Biomass Energy's Power Generation Plant; the Composting Facility; and the Wastewater Treatment Plant. Vance Kemler, Director of Solid Waste, presented a history of the landfill. He stated that currently they were working on a gas extraction system with Biomass at the landfill. Shirlene Sitton, Recycling Manager, presented information concerning the City's recycling activities. A commercial materials recycling program was underway which recovered construction and demolitions materials. The opening of the Materials Recovery Facility will be delayed until next year. In July 2008 a Special Event Recycling program was started to help collect recyclables as city-sponsored events. Council Member Thomson asked recycling and how it might prolong the life of the landfill. Sitton stated that instead of looking at it in terms of prolonging the life of the landfill, they now looked at it in terms of preserving natural resources. Mayor Burroughs asked about changing commercial recycling because of inappropriate items being placed in the bins. Sitton replied that it was not really a problem at this time. Mayor Burroughs felt that staff should consider altering the program so that the renters of the dumpsters did not get charged for items placed in the containers from outside sources. Council begin a tour of the above mentioned facilities at 12:15 p.m. and with no further business following the tour, the meeting was adjourned. MARK A. BURROUGHS MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES May 5, 2009 After determining that a quorum was present, the City Council convened in a Work Session on Tuesday, May 5, 2009 at 4:30 p.m. in the Council Work Session Room. PRESENT: Mayor Burroughs; Mayor Pro Tern Kamp; Council Members Heggins, Moreno, Mulroy, Thomson and Watts. ABSENT: None 1. The Council considered requests for clarification of agenda items listed on the agenda for May 5, 2009. City Manager Campbell stated that Item 3E would be pulled from consideration as it was not ready for council consideration. He also indicated that Item 5B was recommended for denial by staff. Mayor Burroughs questioned the policy of looking at other engineering services for expertise as it related to Item 3F. Frank Payne, City Engineer, stated that state law did not require a request for proposal for professional services. This firm was chosen because it had a lot of experience and history with this project so it made sense to continue with the firm on this project. 2. The Council received a report, held a discussion, and gave staff direction regarding development and submission of funding applications by the City of Denton under the American Recovery and Reinvestment Act. Barbara Ross, Community Development Coordinator, stated that staff was researching federal websites for grants and current information. The only application submitted thus far was a COPS grant and a water/wastewater application submitted to the Texas Water Development Board. Other areas such as environmental grants and community development block grants were still being developed. The Police Department was working with the County on a grant and Fleet was working with the County on a diesel emissions reduction grant. Ken Banks, Environmental Quality Manager, stated that they had until June 25th to make initial applications for energy related grants. They intended to apply for grants and get applications in as soon as possible. Programs would have to be in place before the funding was received. 3. The Council received a funding recommendation report from the Community Development Advisory Committee (CDAC) and the Human Services Advisory Committee (HSAC). The Council held a discussion regarding the proposed 2009 Action Plan for Housing and Community Development and gave staff direction. Barbara Ross, Community Development Administrator, introduced Ron Aldridge, Chair of the Community Development Advisory Committee. Aldridge introduced committee members that were present at the meeting. He stated that the committee had received and reviewed 14 applications for housing and infrastructure improvements and had provided the council a list of recommendations in the backup. He stated that the committee felt this was a good distribution of the available funds. City of Denton City Council Minutes May 5, 2009 Page 2 Jan Hillman, Vice Chair of the Human Services Advisory Committee, stated the committee had received and reviewed 19 applications for social services program funding and had ranked the agencies based on standards provided to them. Ross stated that staff had developed the 2009 Action Plan using the recommendations from each committee. Consensus of the Council was to proceed with the next step in the process. 4. The Council received an update, held a discussion and gave staff direction regarding Denton Television Network (DTV) and proposed upgrades to the Council Chamber and the City Council Work Session Room. Billy Matthews, Cable Television Supervisor, reviewed accomplishments during the last seven months. He stated that DTV staff had re-vamped the entire look and feel of DTV Newsbreak including the content, graphics, music, announcer, branding, etc. He stated that they had improved the process of editing and assembling the program. Matthews stated that current projects included a fourth commercial for DME, a commercial for Waterworks that would air later this month, and a PSA for the Police Department about LOCK, TAKE and HIDE. DTV staff had produced the DentonMD.org commercial in conjunction with Economic Development. He also stated that DTV had relocated their TV studio from City Hall West to the basement at City Hall. Matthews stated that staff had initiated a partnership with UNT and had some students reporting for DTV Newsbreak and also had an entry level broadcast journalism class that had helped with DTV. They had been in rotation running the camera at public meetings and observing DTV Newsbreak. Matthews stated that some camera and audio renovations in the Work Session Room and the Council Chambers were in progress. The PEG fees would fund these improvements. The Mayor asked to revisit Work Session Item 1 and announced Denton ISD was reopening on May 7. City Manager Campbell announced that the May 12 meeting would be cancelled unless the council advised otherwise. Following the completion of the Work Session, the City Council convened in a Closed Meeting at 5:25 p.m. to consider the specific items listed below under the Closed Meeting section of this agenda. 1. Closed Meeting: A. Deliberations regarding Real Property - Under Texas Government Code Section 551.072; Consultation with Attorney - Under Texas Government Code Section 551.071. City of Denton City Council Minutes May 5, 2009 Page 3 1. The Council discussed, deliberated and received information from staff and provided staff with direction pertaining to the grant of an easement for the construction, maintenance and operation of a rail line within the Denton Rail Corridor to the Denton County Transportation Authority (DCTA), the limits of said corridor being all that certain lot, tract or parcel of land described in that certain Quitclaim Deed from Missouri Pacific Railroad Company to the City of Denton, Texas dated August 9, 1993, and filed on August 24, 1993, as Clerk No 93-R0058485 in the Real Property Records of Denton County, Texas; and also being that same property described in that certain Correction Quitclaim Deed, dated June 1, 2001 and filed for record in the Real Property Records of Denton County, Texas as Volume 4857, Page 020211 where such deliberation in an open meeting would have a detrimental effect on the position of the City Council in negotiations with DCTA. Consultation with the City's attorneys regarding legal issues associated with the granting of said easement above described where a public discussion of these legal matters would clearly 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. B. Consultation with Attorneys - Under Texas Government Code, Sec. 551.071. 1. The Council consulted with City's attorneys on legal issues, relating to litigation styled Collegiate Community Outreach d/b/a UNT Chi Alpha, et al. v. City of Denton, et al., Cause No. 4:07cv564, currently pending in the US District Court, Eastern District, Sherman Division. 2. The Council received a briefing and further status report from the City's attorneys regarding the litigation entitled The City of Denton, Texas v. The University of North Texas, Cause No. 2008-20043-158, now pending before the 158th Judicial District Court in and for Denton County, Texas; discuss, deliberate and provide the attorneys with direction. A public discussion of these legal matters would conflict with the duty of the City's attorneys to the City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. The Closed Meeting adjourned at 6:47 p.m. Regular Meeting of the City of Denton City Council on Tuesday, May 5, 2009 at 6:52 p.m. in the Council Chambers at City Hall. 1. PLEDGE OF ALLEGIANCE The Council and members of the audience recited the Pledge of Allegiance to the U.S. and Texas flags. City of Denton City Council Minutes May 5, 2009 Page 4 2. PROCLAMATIONS/PRESENTATIONS A. Proclamations/Awards 1. Presentation of the Reliable Public Power Provider Recognition Award to Denton Municipal Electric 2. Presentation of "National Day of Prayer" proclamation 3. Presentation of "Motorcycle Safety and Awareness Month" proclamation 4. Presentation of "Children's Mental Health Awareness Month and Day" proclamation 5. Presentation of "National Nurses Week" proclamation 6. Presentation of "Denton Memorial Day" proclamation 7. Presentation of "Drinking Water Week" proclamation Mayor Burroughs presented the Reliable Public Power Provider Recognition Award. Mayor Burroughs presented proclamations for National Day of Prayer, Motorcycle Safety and Awareness Month, Children's Mental Health Awareness Month and Day, National Nurses Week, Denton Memorial Day, and Drinking Water Week. The Council considered item 5E. Mayor Burroughs announced that the Denton ISD would reopen on Thursday, May 7. 3. CONSENT AGENDA Mayor Burroughs stated that Item E would be pulled from consideration per staff's request. Mayor Burroughs stated that Item L would be removed from the Consent Agenda for separate consideration. Mulroy motioned, Kamp seconded to approve the Consent Agenda and accompanying ordinances with the exception of Items E and L. On roll vote, Heggins "aye", Kamp "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "aye", and Mayor Burroughs "aye". Motion carried unanimously. Item L was considered. Watts motioned, Kamp seconded to approve Item L. On roll vote, Heggins "aye", Kamp "aye", Moreno "aye", Thomson "aye", Watts "aye", and Mayor Burroughs "aye". Mulroy abstained. Motion carried (6-0). A Approved a request for an exception to the noise ordinance for amplified sound on a Sunday for the purpose of the Apollo Time and the Music Time events. Apollo Time and Music Time events are scheduled for the following Sundays: July 5, July 12, July 19, 2009, from 5:00 p.m. until 10:00 p.m. and Sunday, July 26, 2009, from 5:00 p.m. until 10:30 p.m. The events will be held in Fred Moore Park. Mr. Harold Jackson, the event organizer, is specifically asking for an exception to the noise ordinance to allow for amplified sound on Sundays. City of Denton City Council Minutes May 5, 2009 Page 5 B. Approved a request for an exception to the noise ordinance for the purpose of a music festival, for the 3rd Annual Summer Showdown, sponsored by the North Texas State Fair Association located at 2217 N. Carroll Blvd. The event is to be held on Saturday, June 13, 2009, beginning at 12:00 noon and concluding at 12:30 a.m. The exception is specifically requested for extension of the hours of operation for amplified sound. C. 2009-105 - An ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas, and the One Hundred Club of Denton; providing for the expenditure of funds; and provide for an effective date. ($650) D. 2009-106 - An ordinance accepting competitive bids and awarding an annual contract for the purchase of various sizes of front load refuse containers for the City of Denton Solid Waste Department; providing for the expenditure of funds therefor; and providing an effective date (Bid 4283-Annual Contract for Front Load Refuse Containers awarded to the lowest overall bidder Wastequip in the annual estimated amount of $150,000). The Public Utilities Board recommended approval (5-0). E. This item was pulled - An ordinance awarding a 36-month contract for the lease of production printing equipment for the Reprographics Division as approved by the State of Texas Building and Procurement Commission through a Texas Association of School Boards (TASB) catalogue; providing for the expenditure of funds therefor; and providing an effective date (File 4307-Lease of Production Printing Equipment to IKON Office Solutions, Inc. in the annual amount of $90,264 for a 36-month total amount of $270,792). F. 2009-107 - An ordinance of the City of Denton, Texas authorizing the City Manager to execute a professional services agreement for design and engineering services relating to the Eagle Drive Drainage System for the City of Denton Engineering Department: providing for the expenditure of funds therefor; and providing an effective date (File 4309-awarded to Teague Nall and Perkins in an amount not-to-exceed $304,800). The Public Utilities Board recommended approval (5-0). G. 2009-108 -An ordinance authorizing the City Manager to execute a Professional Services Agreement (PSA) with IMS Infrastructure Management Services, LLC for an automated roadway inspection and evaluation as set forth in the contract; providing for the expenditure of funds therefor; and providing for an effective date (RFSP 4091 awarded to IMS Infrastructure Management Services, LLC in an amount not to exceed $347,250). H. 2009-109 - An ordinance authorizing the City Manager or his designee to execute a cost reimbursement agreement between the City of Denton and TxDOT, for TxDOT's reimbursement, upon the City's submittal of appropriate bill(s) of sale, of the City's costs in purchasing various traffic signal control equipment at various intersections within the limits of TxDOT's Loop 288 project as provided for in the agreement's attachments; providing for the temporary expenditure of funds thereof, and providing for an effective date in an amount to be reimbursed by TxDOT not to exceed $213,391.00. City of Denton City Council Minutes May 5, 2009 Page 6 1. 2009-110 - An ordinance of the City of Denton, Texas providing for, authorizing, and approving the expenditure of funds for the purchase of Loop 288 traffic radar equipment from Twincrest Technologies which is available from only one source in accordance with the pertinent provisions of Chapter 252 of the Texas Local Government Code exempting such purchases from the requirements of competitive bidding; and providing an effective date (File 4294-Purchase of Traffic Radar Equipment for Loop 288 in the amount of $189,346). J. 2009-111 - An ordinance of the City of Denton, Texas partially abandoning and vacating a public utility easement from Epic Development, Inc. To the City of Denton, recorded by County Clerk File Number 94-R0032573 of the Real Property Records of Denton County, Texas, in the J. White Survey, Abstract No. 1433, Denton County, Texas; and declaring an effective date. K. 2009-112 - An ordinance authorizing the City Manager to execute a water main cost participation agreement between the City of Denton, Texas and Allegiance Hillview, L.P. for the City's participation in the oversizing of water mains and in accordance with the terms and conditions of this ordinance; authorizing the expenditure of funds therefor; and providing an effective date. (In the not-to- exceed amount of $113,403.50) The Public Utilities Board recommended approval (4-0). L. 2009-113 - An ordinance of the City of Denton, Texas, approving an Amendment to an Economic Development Program Grant Agreement dated March 23, 2004 between the City of Denton and Windjammer, Ltd., assigning the Agreement to NorthStar Bank of Texas; and providing an effective date. M. 2009-114 - An ordinance of the City of Denton, Texas to declare the intent to reimburse expenditures from the Unreserved Fund Balance of the Electric Fund with Utility System Revenue Bonds with an aggregate maximum principal amount equal to $10,250,000 so that Denton Municipal Electric can continue funding ongoing capital expenditures for expansion of the distribution and transmission electric facilities; and providing an effective date. 4. PUBLIC HEARINGS A. The Council held a public hearing inviting citizens to comment on the City of Denton's 2009 Action Plan for Housing and Community Development. Barbara Ross, Community Development Administrator, stated that the Action Plan served as the City's application for the CDBG and HOME programs. The 2009 Plan included activities recommended for funding by the Community Development Advisory Committee and the Human Services Advisory Committee. It also included CDBG and HOME administration funding. Ross read a statement from Richard Taliaferro, who was not able to be present. The Mayor opened the public hearing. City of Denton City Council Minutes May 5, 2009 Page 7 No one spoke during the public hearing. The Mayor closed the public hearing. No action was required by Council on this item. B. The Council held a public hearing and considered adoption of an ordinance of the City of Denton, Texas, amending Subchapters 5 and 23 of the Denton Development Code to specify those zoning district classifications allowing Wrecker Services and Impound Lots, and to define Wrecker Services and Impound Lots in Subchapter 23; providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date. (DCA08-0010) The Planning and Zoning Commission recommended approval (6-0). Mark Cunningham, Director of Planning and Development, stated that this was a staff-initiated Development Code amendment. Currently, the Code did not permit Wrecker Services and Impound Lots in any of the City's zoning districts, nor was the use defined in Subchapter 23 "Definitions." Staff was proposing to add Wrecker Services and Impound Lots within the Employment Center Commercial (EC-C) and Employment Center Industrial (EC-1) zoning districts with an SUP and Limitation L(29). In addition, permit Wrecker Services and Impound Lots within the Industrial Center Employment (IC-E) and Industrial Center General (IC-G) zoning districts with a Limitation L(29). The Limitation 29 referred to the compliance to Texas Administrative Code: All stored vehicles should be screened from all rights-of-way and residential uses and zoning districts. Parking and vehicle storage areas associated with wrecker services and impound lot activities were not allowed with undeveloped floodplain, water-related habitat, and environmentally sensitive areas. Subject sites would comply with best management practices in relationship to parking areas and storm water management. Staff also proposed adding the definition of Wrecker Services and Impound Lots to the Code. The Mayor opened the public hearing. No one spoke during the public hearing. The Mayor closed the public hearing. The following ordinance was considered: NO. 2009-115 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING SUBCHAPTERS 5 AND 23 OF THE DENTON DEVELOPMENT CODE TO SPECIFY THOSE ZONING DISTRICT CLASSIFICATIONS ALLOWING WRECKER SERVICES AND IMPOUND LOTS, AND TO DEFINE WRECKER SERVICES AND IMPOUND LOTS IN SUBCHAPTER 23; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF, SEVERABILITY AND AN EFFECTIVE DATE. (DCA08-0010) City of Denton City Council Minutes May 5, 2009 Page 8 Mulroy motioned, Kamp seconded to adopt the ordinance. On roll vote, Heggins "aye", Kamp "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "aye", and Mayor Burroughs "aye". Motion carried unanimously. C. The Council held a public hearing and considered adoption of an ordinance of the City of Denton, Texas, providing for a zoning change from a Neighborhood Residential 3 (NR-3) zoning district classification and use designation to a Neighborhood Residential 6 (NR-6) zoning district classification and use designation for 0.367 acres of land located at the northwest corner of Ruth Street and Cross Timber Street, and is legally described as Block 11, Lot 6 of the Alex Robertson Addition, in the City of Denton, Denton County, Texas; providing for a penalty in the maximum amount of $2,000 for violations thereof, severability and an effective date. (Z08- 0005) The Planning and Zoning Commission recommended denial (7-0). A SUPERMAJORITY VOTE BY COUNCIL IS REQUIRED FOR APPROVAL. Mark Cunningham, Director of Planning and Development, stated that this was the Roosevelt Washington case. The property was located at the northwest corner of Ruth and Cross Timber Streets. The applicant was requesting to rezone the property from NR-3 to NR-6 to allow duplexes which he would develop as rental property. Currently there was a vacant single-family home on the lot, which the applicant intended to demolish. The use of duplexes on the lot was consistent with the surrounding land uses in the area, but the proposed zoning of NR-6 was not. The existing duplexes were permitted prior to the city-wide rezoning in 2002. These duplexes were now considered special exceptions. All adjacent properties were zoned NR-3 and NR-4. He stated the applicant also wanted to subdivide the lot into two lots of approximately 8,200 square feet each. The request for rezoning had to be approved prior to replatting because the proposed lots would not meet the minimum size requirements of the existing zoning district. Cunningham stated that staff recommended denial of the applicant's request because it would create an isolated zoning district for a single lot that was surrounded by a much larger area which was uniformly zoned. The Mayor opened the public hearing. Roosevelt Washington, Jr., 2125 Woodbrook, Denton, 76205, spoke in favor. Council Member Watts asked Mr. Washington when he purchased the property. Washington replied in 2007. Council Member Watts asked Mr. Washington if he was aware of any potential problems with the property when he purchased it. Washington replied no that the property was a duplex when he purchased it. Carolyn Phillips, 901 Baldwin, Denton, 76205, spoke against the proposal. City of Denton City Council Minutes May 5, 2009 Page 9 Mayor Burroughs stated that the zoning across the street was NR-4 which would allow for two single family homes to mirror the current lots. He asked Ms. Phillips how she would feel about that arrangement. Ms. Phillips felt that she would be more favorable to such a proposal but could not speak for others. Council Member Thomson asked if the house was a duplex before it was torn down. Cunningham stated that staff could only find that it was a single family home. Mayor Pro Tern Kamp asked if the only way to develop the property was for NR-4 zoning. Cunningham stated that with NR-3 zoning, a single family detached home could be built which was allowed by right. As the lots were undersized, once a structure was built, it would still be a nonconforming development as the lots were less than 10,000 square feet. Mayor Pro Tern Kamp asked about neighborhood objection to the proposal. Cunningham stated that the neighborhood was against the staff proposal as well as the NR-6 zoning. They wanted the zoning to remain NR-3. Council Member Watts questioned how to maximize the potential for the developer and maximize the potential for the neighborhood. He asked what would be the harm in NR-4 zoning with platting in the same lot sizes as the surrounding lots. Council Member Thomson stated that NR-4 zoning would not be spot zoning as that zoning was across the street. Cunningham stated that NR-4 zoning would be an extension of the zoning across the street. Mr. Washington was allowed a five minute rebuttal. He stated that if he could have NR-4 zoning he would build two single- family homes for sale or rent. The duplex issue was too confusing and he would drop that proposal. Council Members Mulroy and Heggins both asked Mr. Washington if he would build two single family homes on split lots. Washington replied correct. Council Member Heggins stated that it would change her attitude toward the proposal if Mr. Washington was doing two single family homes. Council Member Mulroy asked if Council could move to pass the zoning with a change from NR-6 to NR-4 at this meeting. City Attorney Burgess stated that the proposed zoning was posted as NR-6. She would confirm that NR-4 was a lower zoning. City of Denton City Council Minutes May 5, 2009 Page 10 Cunningham stated that NR-4 was a lower zoning than NR-6. Staff did not propose NR-4 to Mr. Washington as he was insistent that he wanted to do duplexes. Staff had also talked to Mr. Washington about single family development but he did not want to do that. The Mayor closed the public hearing. City Attorney Burgess stated that Council could consider the NR-4 zoning. The number of votes required to consider the zoning if moving in a different direction would also change. The NR-4 zoning could pass on a simple majority vote. Council Member Watts noted a point of order that the Mayor had not asked if anyone wanted to speak during the public hearing who had not submitted a speaker card. The Mayor reopened the public hearing. Adolphus Henry, 400 East Mill, Denton, 76201, spoke in opposition. Mayor Burroughs asked why he would object to two single family homes on lots. Henry replied that if the development would be in compliance, it would be ok but it was not. The Mayor closed the public hearing. Council Member Mulroy felt that this was a larger problem than this one lot. It was an infill problem. There was a need to find a solution for redevelopment of the area. Mulroy motioned, Heggins seconded to approve the zoning for the property as NR-4. Council Member Watts stated that the development of the property could only be one house on a large NR-3 lot or two lots with NR-4 zoning. Mayor Burroughs stated that under NR-4 with restrictions, the property would be disqualified if divided into two and could not do duplexes, only single family homes. He felt that NR-3 zoning seemed to be a symbol to some of the surrounding residents. However, NR-4 was completely consistent with the surrounding property. The NR-3 zoning was just created by a former council with no basis for the zoning given. Cunningham stated that the uses for NR-3 and NR-4 were not different other than in NR-3 lots over 2 acres in size could do duplexes. Washington noted that he wished to withdraw his proposal. Mulroy motioned, Heggins seconded to accept Mr. Washington's request for withdrawal. On roll vote, Heggins "aye", Kamp "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "aye", and Mayor Burroughs "aye". Motion carried unanimously. D. The Council held a public hearing and considered adoption of an ordinance of the City of Denton, Texas, amending Subchapter 23 of the Denton Development Code; revising the definition of Church and providing a definition for City Engineer; providing for a penalty in the City of Denton City Council Minutes May 5, 2009 Page 11 maximum amount of $2,000.00 for violations thereof, severability and an effective date. (DCA09-0001 The Planning and Zoning Commission recommended approval (6-0). Mark Cunningham, Director of Planning and Development, stated that two definitions were under consideration to address technical issues identified in the Development Code. The first proposal, to add a definition for "City Engineer", was being proposed in order to create flexibility in addressing development review issues. The second amendment to revise the definition of "church" was being proposed by the Legal Department. The Mayor opened the public hearing. No one spoke during the public hearing. The Mayor closed the public hearing. The following ordinance was considered: NO. 2009-116 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING SUBCHAPTER 23 OF THE DENTON DEVELOPMENT CODE; REVISING THE DEFINITION OF CHURCH AND PROVIDING A DEFINITION FOR CITY ENGINEER; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF, SEVERABILITY AND AN EFFECTIVE DATE. (DCA09-000) Kamp motioned, Mulroy seconded to adopt the ordinance. On roll vote, Heggins "aye", Kamp "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "aye", and Mayor Burroughs "aye". Motion carried unanimously. E. The Council held a public hearing and considered adoption of an ordinance of the City of Denton, Texas, amending the Denton Development Code and the Development Standards for the Rayzor Ranch Overlay District by adding a new subsection 35.7.13.9.C., relating to administrative approval of minor site design amendments; providing for severability; providing for a penalty in the maximum amount of $2,000.00 for violations thereof, and providing an effective date. (DCA09-0002) The Planning and Zoning Commission recommended approval (6-0). Mark Cunningham, Director of Planning and Development, stated that the developer had requested consideration of an amendment that would authorize limited administrative authority by the City Manager to better facilitate the development of the Rayzor Ranch Marketplace. The change would allow the City Manager's office to consider staff recommended changes that were deemed to be essential to the viability of the project without jeopardizing the overall architectural theme and compatibility of Rayzor Ranch. Proposed architectural deviations would not be allowed to promote a design that was fundamentally inconsistent with the overall site design aesthetic or unique attributes of Rayzor Ranch. Staff would be requesting that proposed elevations be mitigated or offset with complementary public space enhancements, much like the concept of an Alternative Development Plan. City of Denton City Council Minutes May 5, 2009 Page 12 The Mayor opened the public hearing. No one spoke during the public hearing. The Mayor closed the public hearing. Council Member Watts expressed a problem with the overly broad language in Paragraph C. He was not comfortable with the language as he did not know what it meant. He felt it could mean anything goes along with concern that the project was slowly being chipped away. He felt there was a need to take another look at the project. The following ordinance was considered: NO. 2009-117 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING THE DENTON DEVELOPMENT CODE AND THE DEVELOPMENT STANDARDS FOR THE RAYZOR RANCH OVERLAY DISTRICT BY ADDING A NEW SUBSECTION 35.7.13.9.C., RELATING TO ADMINISTRATIVE APPROVAL OF MINOR SITE DESIGN AMENDMENTS; PROVIDING FOR SEVERABILITY; PROVIDING FOR A PENALTY IN THE MAXIMUM AMOUNT OF $2,000.00 FOR VIOLATIONS THEREOF, AND PROVIDING AN EFFECTIVE DATE. (DCA09-0002) Mulroy motioned, Kamp seconded to adopt the ordinance. On roll vote, Heggins "aye", Kamp "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "nay", and Mayor Burroughs "aye". Motion carried with a 6-1 vote. 5. ITEMS FOR INDIVIDUAL CONSIDERATION A. Tabled - Consider adoption of an ordinance of the City of Denton, Texas approving an interlocal cooperation agreement and granting an easement to the DCTA on the Denton Branch Rail Trail for the purpose of building a public commuter rail line; and declaring an effective date. The Mobility Committee recommends approval (3-0). (Tabled from March 3, 2009) This item remained on the table and was not considered. B. The Council considered a request for an exception to the Noise Ordinance for amplified sound for a party and musical concert to be held at 1815 W. Oak Street on Saturday, May 16, 2009. The exception is specifically requested to extend the hours from 10:00 p.m. to 12:00 a.m. for amplified sound and for an increase to 70 decibels. Mayor Burroughs stated that staff was recommending denial of the exception. Emerson Vorel, Director of Parks and Recreation, stated that an exception of this type usually was done on commercial property and not residential property. The requestors could still hold the event but they would have to discontinue the amplification sooner than requested. City of Denton City Council Minutes May 5, 2009 Page 13 Thomson motioned, Kamp seconded to deny the request. On roll vote, Heggins "aye", Kamp "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "aye", and Mayor Burroughs "aye". Motion carried unanimously. C. The Council considered adoption of an ordinance of the City of Denton, Texas, authorizing and directing the City Manager to execute an amendment to expand the scope of activities and extend the term of a right of entry and possession, dated March 3, 2009, in favor of the Denton County Transportation Authority (DCTA) and authorizing DCTA to enter upon and take possession of certain real property of the City of Denton for the purpose of performing pre- construction activity as described in Attachment "A" hereto; and providing an effective date. City Attorney Burgess stated that the proposed ordinance would provide for an extension of the original terms of the agreement and would extend the agreement for an additional 30 days. All elements of the existing ordinance would remain in place for 30 days. Robert Donnelly, 3900 Quail Creek Road, Denton, 76208 spoke in opposition. The following ordinance was considered: NO. 2009-118 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO EXPAND THE SCOPE OF ACTIVITIES AND EXTEND THE TERM OF A RIGHT OF ENTRY AND POSSESSION, DATED MARCH 3, 2009, IN FAVOR OF THE DENTON COUNTY TRANSPORTATION AUTHORITY (DCTA) AND AUTHORIZING DCTA TO ENTER UPON AND TAKE POSSESSION OF CERTAIN REAL PROPERTY OF THE CITY OF DENTON FOR THE PURPOSE OF PERFORMING PRE-CONSTRUCTION ACTIVITY AS DESCRIBED IN ATTACHMENT "A" HERETO; AND PROVIDING AN EFFECTIVE DATE. Mulroy motioned, Kamp seconded to adopt the ordinance. On roll vote, Heggins "aye", Kamp "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "aye", and Mayor Burroughs "aye". Motion carried unanimously. D. Citizen Reports 1. Review of procedures for addressing the City Council. 2. Receive citizen reports from the following: a) Jordan Hudspeth regarding concerns of Southeast Denton. b) Lanisha Hudspeth regarding concerns of Southeast Denton. c) Hagar Hudspeth regarding concerns of Southeast Denton. d) Willie Hudspeth regarding concerns of Southeast Denton. The Hudspeths were not present at the meeting. E. 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. City of Denton City Council Minutes May 5, 2009 Page 14 • Council Member Heggins requested a discussion on the placement of the Citizens Reports on the council agenda. F. Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. There was no continuation of the Closed Meeting. G. Official Action on Closed Meeting Item(s) under Sections 551.071-551.086 of the Texas Open Meetings Act. There was no official action on Closed Meeting items. With no further business, the meeting was adjourned at 9:14 p.m. MARK A. BURROUGHS MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS CITY OF DENTON CITY COUNCIL MINUTES May 19, 2009 The City of Denton City Council convened in the Work Session Room on Tuesday, May 19, 2009 at 5:30 p.m. to attend a reception honoring City Council. After determining that a quorum was present, the City Council convened in a Closed Meeting on Tuesday, May 19, 2009 at 6:30 p.m. in the City Hall Conference Room at City Hall. PRESENT: Mayor Burroughs; Mayor Pro Tern Kamp; Council Members Heggins, Moreno, Mulroy, Thomson and Watts. ABSENT: None 1. Closed Meeting: A. Deliberations regarding Personnel Matters - Under Texas Government Code Section 551.074. 1. Deliberated the nomination and appointment of a Board Member to the Board of Texas Municipal Power Agency, a Joint Powers Agency. This item was not discussed. 2. Deliberated the nomination and appointment of an authorized mediation representative to represent the City of Denton, Texas at an upcoming mediation session to be conducted by and between the Cities of Bryan, Denton, Garland and Greenville, Texas regarding matters related to the Texas Municipal Power Agency. Following the completion of the Closed Meeting, the City Council convened in Open Session in the City Hall Conference Room. 1. Consider approval of a resolution appointing a member to the Board of Directors of the Texas Municipal Power Agency, a Joint Powers Agency, representing the City of Denton, Texas; and declaring an effective date. This item was not considered. 2. The Council considered approval of a resolution of the City Council of the City of Denton, Texas appointing Joe Mulroy as the mediation representative and Mark Burroughs as alternate mediation representative for the City of Denton, Texas regarding the mediation to be conducted involving the cities of Bryan, Denton, Garland and Greenville, Texas regarding matters related to the Texas Municipal Power Agency, a Joint Powers Agency; and declaring an effective date. The following resolution was considered: NO. R2009-012 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS APPOINTING JOE MULROY AS THE MEDIATION REPRESENTATIVE AND MARK BURROUGHS AS ALTERNATE MEDIATION REPRESENTATIVE FOR City of Denton City Council Minutes May 19, 2009 Page 2 THE CITY OF DENTON, TEXAS REGARDING THE MEDIATION TO BE CONDUCTED INVOLVING THE CITIES OF BRYAN, DENTON, GARLAND AND GREENVILLE, TEXAS REGARDING MATTERS RELATED TO THE TEXAS MUNICIPAL POWER AGENCY, A JOINT POWERS AGENCY; AND DECLARING AN EFFECTIVE DATE. Kamp motioned, Heggins seconded to approve the resolution. On roll vote, Heggins "aye", Kamp "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "aye", and Mayor Burroughs "aye". Motion carried unanimously. Following the consideration of the above items, the City of Denton City Council re-convened in the Council Chambers at City Hall. 1. Pledge of Allegiance The Council and members of the audience recited the Pledge of Allegiance to the U. S. and Texas flags. 2. The Council considered 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, Texas held in the City of Denton on May 9, 2009; and providing an effective date. City Secretary Jennifer Walters read the final election results for each district and the winner of each race. The following ordinance was considered: NO. 2009-119 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, TEXAS HELD IN THE CITY OF DENTON ON MAY 9, 2009; AND PROVIDING AN EFFECTIVE DATE. Kamp motioned, Mulroy seconded to adopt the ordinance. On roll vote, Heggins "aye", Kamp "aye", Moreno "aye", Mulroy "aye", Thomson "aye", Watts "aye", and Mayor Burroughs "aye". Motion carried unanimously. 3. Oath of Office administered to newly elected Council Members. Jennifer Walters, City Secretary, administered the Oath of Office to Charlye Heggins, District One; Dalton Gregory, District Two; Jim Engelbrecht, District Three; and Chris Watts, District Four. Following the completion of the oaths of office, Mayor Burroughs presented each member a Certificate of Election and presented a council pin to new members. City of Denton City Council Minutes May 19, 2009 Page 3 4. Election of Mayor Pro Tempore. Council Member Heggins nominated Pete Kamp for Mayor Pro Tem. On roll vote, Engelbrecht "aye", Gregory "aye", Heggins "aye", Kamp "aye", Mulroy "aye", Watts "aye", and Mayor Burroughs "aye". Motion carried unanimously. 5. The Council considered approval of Resolutions of Appreciation for retiring Council Members. Mayor Burroughs presented a Resolution of Appreciation to Rudy Moreno. Mulroy motioned, Watts seconded to approve the Resolution of Appreciation. On roll vote, Engelbrecht "aye", Gregory "aye", Heggins "aye", Kamp "aye", Mulroy "aye", Watts "aye", and Mayor Burroughs "aye". Motion carried unanimously. Mayor Burroughs presented a Resolution of Appreciation to Jack Thomson. Kamp motioned, Engelbrecht seconded to approve the Resolution of Appreciation. On roll vote, Engelbrecht "aye", Gregory "aye", Heggins "aye", Kamp "aye", Mulroy "aye", Watts "aye", and Mayor Burroughs "aye". Motion carried unanimously. With no further business, the meeting was adjourned at 7:15 p.m. MARK A. BURROUGHS MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS AGENDA INFORMATION SHEET AGENDA DATE: June 2, 2009 DEPARTMENT: Utilities UTILITIES ACM: Howard Martin, 349-823 SUBJECT Consider adoption of an ordinance approving an Easement Abandonment Agreement between the City of Denton, and Holigan Land Development, Ltd., a Texas limited partnership; giving the City Manager the authority to execute the Easement Abandonment Agreement, and effectuate the terms of the Agreement, which will abandon of a portion of the City of Denton's interest in three sanitary sewer line easements, being obtained by the City from L.C. Dupree, and wife, Stella M. Dupree, Volume 464, Page 179, Thomas Cain, and wife, Clara Etta Cain, Volume 464, Page 172, and Andrew Corporation, an Illinois Corporation, Volume 1123, Page 407, all being recorded in the Denton County Real Property Records, Denton, Texas; provided however, that said abandonment shall only be effectual as to that certain tract of real property being legally described as Lot 3, Block A, of Flowers Food Addition, an addition to the City of Denton, Denton County, Texas, according to the conveyance plat thereof recorded in Cabinet W, Page 335 of the Plat Records of Denton County, Texas; and providing an effective date. The Public Utilities Board recommends approval (6-0). BACKGROUND The State School Interceptor Sanitary Sewer Project consists of two phases, and will replace approximately 11,000 feet of existing sanitary sewer interceptors with a new, larger diameter sanitary sewer interceptor. The project is necessary to increase the carrying capacity of the wastewater collection system. The existing sanitary sewer interceptors are at the end of their service lives, and are carrying maximum capacities. The existing sewer lines will be replaced with a 48 inch diameter pipe that will be able to convey approximately four times as much now as the existing interceptor. It is projected that the new interceptor will be able to handle future flows to the year 2030. A new sanitary sewer easement has been granted by Holigan Land Development Ltd., to complete phase one of the State School Interceptor project in exchange for the future abandonment of three existing overlapping sanitary sewer easements that currently exist on their property directly adjacent to the new easement tract. The easement abandonment will be effectuated upon the completion of all phases of the project, once the new sewer facilities are completely constructed and operational in 2012. Staff performs an analysis on request for easement abandonments as follows: ■ Is the easement tract requested for abandonment considered "excess easement"? ■ Does the easement tract requested for abandonment have a continued public use? ■ Is it in the best interest of the general public to abandon the government's rights in the subject abandonment tract? ■ Would the granting of this request establish a precedent for easement abandonment for future requests? Page 2 of 2 Staff findings on this analysis are as follows: 1. The requested partial easement abandonment tracts fit the criteria of "excess easement." Excess easement is defined as: Property acquired or used by the City for easement subsequently declared excess (not needed for the Project, the continuation of operation and maintenance of public facilities, and/or no foreseeable utility application in the future). 2. The partial easement abandonment tract areas are not slated for utilization of any future public utilities. 3. The partial easement abandonments are in the public interest because the areas for the subject abandonments are no longer needed by the public and have not been utilized for the public. 4. This abandonment would not set precedent because the above three standards have been met. OPTIONS 1. Recommend that the City Council approve the Ordinance. 2. Not recommend that the City Council approve the proposed Ordinance 3. Table for future consideration RECOMMENDATION Recommend approval of the Ordinance. ESTIMATED SCHEDULE Spring 2009 PRIOR ACTION/REVIEW (Council, Boards, Commissions) Public Utility Board Approval May 18, 2009 FISCAL INFORMATION Not applicable BID INFORMATION Not applicable EXHIBITS 1. Ordinance 2. Agreement 3. Location Map 4. PUB Minutes Prepared by: Respectfully submitted Pamela England Jimmy D. Coulter Real Estate Specialist Director of Water Utilities EXHIBIT 1 ORDINANCE NO. 2009- AN ORDINANCE APPROVING AN EASEMENT ABANDONMENT AGREEMENT BETWEEN THE CITY OF DENTON, AND HOLIGAN LAND DEVELOPMENT, LTD., A TEXAS LIMITED PARTNERSHIP; GIVING THE CITY MANAGER THE AUTHORITY TO EXECUTE THE EASEMENT ABANDONMENT AGREEMENT AND EFFECTUATE THE TERMS OF THE AGREEMENT, WHICH WILL ABANDON OF A PORTION OF THE CITY OF DENTON' S INTEREST IN THREE SANITARY SEWER LINE EASEMENTS, BEING OBTAINED BY THE CITY FROM L.C. DUPREE, AND WIFE, STELLA M. DUPREE, VOLUME 464, PAGE 179, THOMAS CAIN, AND WIFE, CLARA ETTA CAIN, VOLUME 464, PAGE 172, AND ANDREW CORPORATION, AN ILLINOIS CORPORATION, VOLUME 1123, PAGE 407, ALL BEING RECORDED IN THE DENTON COUNTY REAL PROPERTY RECORDS, DENTON, TEXAS; PROVIDED HOWEVER, THAT SAID ABANDONMENT SHALL ONLY BE EFFECTUAL AS TO THAT CERTAIN TRACT OF REAL PROPERTY BEING LEGALLY DESCRIBED AS LOT 3, BLOCK A, OF FLOWERS FOOD ADDITION, AN ADDITION TO THE CITY OF DENTON, DENTON COUNTY, TEXAS, ACCORDING TO THE CONVEYANCE PLAT THEREOF RECORDED IN CABINET W, PAGE 335 OF THE PLAT RECORDS OF DENTON COUNTY, TEXAS; AND PROVIDING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: WHEREAS, the Utility Department has determined that a portion of these easements will no longer be required for sanitary sewer service purposes upon completion of the State School Sanitary Sewer Interceptor Project, Phase One and Two, said easements being located in the Gideon Walker Survey, Abstract Number 1330, in the City of Denton, Denton County, Texas; and WHEREAS, the City Council of the City of Denton has determined that a portion of these easements will no longer be needed for sanitary sewer purposes upon completion of the State School Sanitary Sewer Interceptor Project, Phase One and Two; and WHEREAS, the fair market value of the easements has been determined and received by the granting of the new sanitary sewer easement by separate instrument in exchange for the abandonment of a portion of these easements, as required by section 272.001 of the Local Government Code, and Denton Texas Municipal Code Ch. 2, Art. IV (2006); NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. That a portion of the sanitary sewer easements recorded in Volume 464, Page 179, Volume 464, Page 172, and Volume 1123, Page 407, recorded in the Deed Records of Denton County, Texas as more particularly described in the Easement Abandonment Agreement between the City of Denton and Holigan Land Development, Ltd., as Exhibit "A", made a part hereof by reference (The "Agreement"), will be permanently vacated and extinguished as easements for sanitary sewer purposes only effectual specifically within the real property boundaries of Lot 3, Block A of Flowers Food Addition, an addition to the City of Denton, Denton County, Texas, according to the conveyance plat thereof recorded in Cabinet W, Page 335 of the Plat Records of Denton County, Texas (the "Abandonment Areas"). SECTION 2. That the City of Denton will release any and all claims to the use of the property as easements for sanitary sewer utility purposes as defined in the Agreement. SECTION 3. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of June 2009. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: Page 2 EXHIBIT 2 EASEMENT ABANDONMENT AGREEMENT THIS EASEMENT ABANDONMENT AGREEMENT (this "Agreement") is entered into and effective as of the date set forth below, by and between the City of Denton, Texas, a home rule municipal corporation (the "City"), and Holigan Land Development, Ltd., a Texas limited partnership ("Holigan"). WHEREAS, Holigan is the owner of all that certain parcel of land situated in the Gideon Walker Survey, Abstract Number 1330, City of Denton, Denton County, Texas, and being Lot 3, Block A of Flowers Food Addition, an addition to the City of Denton, Denton County, Texas, according to the conveyance plat thereof recorded in Cabinet W, Page 335 of the Plat Records of Denton County, Texas, (the "Property"); and WHEREAS, Holigan has requested that the City abandon three sanitary sewer line easements, insofar and only insofar as they encumber the Property (the "Holigan Easements"), the Holigan Easements being conveyed to the City pursuant to the following instruments: 1) dated on or about December 23, 1960, between L.C. Dupree and wife, Stella M. Dupree, and the City of Denton, recorded in Volume 464, Page 179, Real Property Records, Denton County, Texas; 2) dated on or about December 24, 1960, between Thomas Cain and wife, Clara Etta Cain, and the City of Denton, recorded in Volume 464, Page 172, Real Property Records, Denton County, Texas; and 3) dated on or about January 13, 1982, between Andrew Corporation, an Illinois corporation, and the City of Denton, recorded in Volume 1123, Page 407, Real Property Records, Denton County, Texas, and being more particularly described in Exhibit "A", Exhibit "B", and Exhibit "C", attached hereto and made a part hereof for all purposes (that portion of the EXHIBIT 2 Property encumbered by the Holigan Easements herein referred to as the "Abandonment Tracts"); in exchange for a replacement Sanitary Sewer Easement granted by Holigan to the City by separate instrument (the "Replacement Easement"), attached hereto and made a part hereof as Exhibit "D". WHEREAS, Holigan and the City agree that the Abandonment Tracts land area and the Replacement Easement land area are of equal value, and, therefore, there is no consideration due to either party for the contemplated land rights to be released by the City, or the contemplated land rights to be granted by Holigan. NOW, THEREFORE, for and in consideration of the mutual covenants contained herein, the receipt and sufficiency of which herein stipulated, the City and Holigan hereby agree as follows: L Upon (i) the execution and delivery of the Replacement Easement by Holigan to the City; and (ii) the sanitary sewer line or lines to be constructed by the City and to be located within the Replacement Easement becoming fully operational, as determined by the City, the City shall abandon the Holigan Easements, insofar and only insofar as they encumber the Abandonment Tracts. The City Manager or his designee is authorized to execute and deliver to Holigan a Quit Claim assigning the City's right, title and interests in the Abandonment Tracts upon the fulfillment of the above conditions in the form attached hereto and made a part hereof as Exhibit "E". Page 2 2. Holigan shall grant to the City the Replacement Easement concurrently with the execution of this Easement Abandonment Agreement, and deliver both to the City for recording in the Denton County Real Property Records. 3. The City shall not be required to remove the existing utilities or facilities located within the Abandonment Tracts, and the City shall be permitted to abandon all utilities or facilities in place. 4. The City, at its sole cost and expense, shall perform, or shall cause to be performed, the construction activities of the sanitary sewer line or lines within the Replacement Easement (the "Work") in a good and workmanlike manner in conformance with sound and acceptable engineering and construction activity practices. 5. In performing the Work, or causing the Work to be performed, the City shall at all times perform such activities in a safe manner and in fall compliance with all applicable federal, state, municipal, or other laws, statutes, codes, restrictions, regulations, ordinances and orders. City agrees to perform the Work, or cause the Work to be performed; in a diligent manner and restore the lands encumbered by the Replacement Easement to as near as reasonably practicable the condition it was prior to commencement of the Work. Page 3 6. City represents and warrants to Holigan that the City Council of the City has duly authorized this Agreement. Holigan represents and warrants to City that (i) Holigan has taken any and all actions necessary to bind Holigan to all terms and provisions of this Agreement; (u) the parry executing this Agreement on behalf of Holigan has the authority to bind Holigan to the terms and provisions of this Agreement; and (iii) this Agreement is enforceable against Holigan in accordance with the terms and provisions herein. 7. THE LAWS OF THE STATE OF TEXAS SHALL APPLY TO THIS AGREEMENT WITHOUT REGARD TO CONFLICT OF LAW RULES THAT MAY DIRECT APPLICATION OF THE LAW OF ANOTHER JURISDICTION. THIS AGREEMENT IS PERFORMABLE IN DENTON COUNTY, TEXAS. VENUE FOR ANY ACTION ARISING UNDER OR RELATED TO THIS AGREEMENT SHALL LIE EXCLUSIVELY IN COURTS OF COMPETENT JURISDICTION IN DENTON COUNTY, TEXAS. 8. In the event Holigan shall default in the performance of any term or provision of this Agreement, the City may, if said default shall be continuing after five (5) days notice of the default is deemed received by Holigan, enforce any and all rights and remedies available to it by law, contract, equity or otherwise, including without limitation, the remedy of specific performance. Page 4 9. Any notice required by this Agreement shall be deemed properly served if (i) provided by telephonic facsimile; or (ii) deposited in the United States mail by certified letter, return receipt requested, addressed to the recipient at recipient's address shown below, subject to the right to designate a different address by notice given in the manner just described. Notice shall be deemed received when delivered if provided by telephonic facsimile, or if deposited in the United States mail, three (3) days after depositing such notice in the United States mail, as described above. For Ci : Paul Williamson, Real Estate Manager 215 E. McKinney Denton, TX 76201 Facsimile No. For Holigan: Holigan Land Development, Ltd., a Texas Limited Partnership 6505 Park Blvd., Ste 306, LB 342 Plano, TX 75093 Facsimile No. (214) 451-6016 10 This Agreement runs with the land. The terms and provisions hereto are binding upon, and shall inure to the benefit of, the City and Holigan, and their successors and assigns. Page 5 11. This Agreement represents, including the exhibits hereto, the sole agreement between the City and Holigan with respect to the subject matters herein and supersedes any and all prior negotiations, understandings, representations and other agreements, whether written or oral. This Agreement may not be modified or amended except in writing and duly authorized and executed by -each party hereto. In Witness Whereof, this Agreement has been executed by the parties to be effective this day of , 2009. CITY OF DENTON BY: GEORGE C. CAMPBELL CITY MANAGER ATTEST:. JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: HOLIGAN LAND DEVELOPMENT, LTD., A TEXAS LD IITED PARTNERSHIP BY: HL DEVELOPMENT, LLC, A TEXAS LEWrED LIABILITY COMPANY, ITS GENE PARTNER BY: = - W -CE CREEL, PRESIDENT Page 6 - - - DR VOL 00464 PAGE 17A H 7~a F 3 A VOL. 464 Px6E ~I TSB STATE OF TEAAS qu ' SNOW ALL MEN Bar Tna PR NTS. coum op mmaff 2 TEAT 7d8, L. 0. Dupree, and wife, Stella M;-Dupree bf the County of Denton, State of Texas. for and in consideration of the sum of 'lien Dollars 010.00) cash to us in hand-paid by the City of Denton, Texas, a munioipal corporation, of the County % of Denton, State of Texas, the receipt of which is hereby ack- nowledged, and other good and valuable consideration including the benefits that will accrue to our property, do hereby GIVE, 'GRANT and ECCN~SI to the said City of Denton, Texas, its successors and assigns,'the right to construct, reconstruct and perpetually maintain a sanitary sewer line and appurtenances in, upon and across the following described tract of land, said tract being a strip of land twenty-six (26) feet in width and four hundred, eighty-eight and three tenths (488.3) feet in length, containing 0.28 acres of land, more or less, and being thirteen (13) feet on either side of the center line of said strip of land which said center line is more particularly described as follows: . BEGINNING-at a point in the Went property line of a tract of land in the Gideon'Valker 2/3 league survey, Denton County, Texas, deeded by Roland Hill and.wife, Liffie Ilah Hill, to L. 0. Dupree and wife, Stella M. Dupree, as shown in Volume 341, Page 70 of the Deed Re- cords of Denton County, Texas, said point being approxi- mately 484.1 feet South of the Northwest property oomner of said tract; THBNCE Northeastward a distance- of approximately 488.3 feet to a point in the North property line of said tract, said point being 63 feet, more or less, East of the Northwest property corner of said tract. TO HAVE AND TO HOLD, all and singular, the privileges afore- said to it, the said City of Denton, Texas, its successors and assigns forever, together With the right and privilege, at any and all tames to enter said pramiaes or any part thereof, for the purpose of constructing, reconstructing aad,perpetually maintaining said sanitary sewer line together with fneeassary appurtenances, and for making oonnections therav5th; all;upon the condition that the City of Denton, Texas, will-never oow truot any such sanitary sewer line or appurtenances above plow depth.. Wand that the City of Denton, Texas, will at 91-. times, after doing any work in conneotion with the construction, reoonstruation or repair-of said sanitary sewer line restore said premiaes.as nearly as possible to the condition in which same were found be- nearly such work was undertpken, including repair-of all fences that might be disturbed or damaged iti performing said work, *and further upon the condition that in•the use of the aforesaid - - rights and-privinges-herein granted',- the-C1-ty-of-Denton,-1%xas, F~yy DR VOL004M PAGE IaO VDL 464 PA.-EI80 EXHIBIT A 20F3 - will not create a nuisance or do any act that will be detrimental to said premises and that said tract will not be used by said City of Denton, Texas, for any other purpose, under this grant, except-as herein provided. Provided, however, that for the purpose of initially constructing the sanitary sewer line and appurtenances above described, and during snoh initial construc- tion only, the City of Denton, Texas, and its agents, shall hare* the right and privilege to enter upon and use for such initial construction purposes a strip of land sixty (60) feet In width and four hundred, eighty-eight and three tenths (488.3) feet in length, more or less, and being thirty (30) feet on either side of the center line of said strip of land, as said center line is more particularly described above, upon the condition that said City of Denton, Texas, and its agents, will restore said premises as nearly as possible to the condition in which same were found before such Initial construction work was undertaken, inaluding repair of all fences that might be disturbed or damaged In performing said initial construction work. WITNESS OUR HANDS this ,,7_1,day of December, A.D. 1940. ree -..r.... pre T8S STATS OF TEXAS COUNTY OF DENTON s EMBE ME, the undersigned authority, a Notary Pub~lo in and for Dentda County, Texas, on this day personally„ appeared L. D. Dupree and Stella M. Dupree, his wife, both known to me to be the persons whose names are subscribed tb the foregoigg Instrument and acknowledged to me that they each executed the same for the purposes and considera- tion therein- expressed. -and the said Stella M. Dupree, wife of the said Ls C. Dupree, having been examined by me privily and apart from her husband, and having the same fully ex- plained to her, she, the said. Stella M. Dupree acknowledged such instrument to be her act and deed, and she declared that she had Willingly signed the a- for the purposes and oonsideration there n expressed and that, she did not wish to retract it-. . GIVEN UK= MY SAND AM SEAL OF OFFSOE this '~2N 1 4day kf Deoember,'A.D. 1960. w;} F1`4F o. o~ 6d e Notary Public In and for J Denton County, Texas DR VOL 00484 PAGE 181 E a <>F 3A VOL 04 PA.-d8l DEN-r&N, TEXAS SEWER EASEMENT t A H. Tt/ANSULL. C4 L. R D • " 63~ Thomos Coln L. C. Dupre e o v x z x 9cole:IS Ioo . 1 _ x =FILED FOR ur,=: day of A .D.2961 at ~--otalock . 'a8C0SDSD: ,~_daf of 1.D.1961 at' o*aloc -By: Deputy QoJm~'t$ Eton Couny,Tames DR VOL 00464 PAGE 172 E 7~OF -4 THE STATE OF TEXAS 912 SHOW ALL MEN BY THESE PRMEHTS: 0OU39TY OF DENTON THAT MR, Thomas Cain, and Wife. Clara Etta (fain of the County of Denton, State of Texas, for. and in consideration of the sum of Ten Dollars ($10.00) cash to us in hand paid by the dity bf Denton, Texas, a municipal corporation, of the County of Denton, State of Texas, the receipt of which is hereby aok- nowledged, and other good and valuable consideration. including the benefits that will accrue to our property, do hereby GM, GFUNT and MaMM to the said City of Denton, Texas, its successors and assigns, the right to 6onstruct, reconstruct and perpetually maintain a sanitary sewer line and appurtenanoes in, upon and across the following described tract of land, said tract being a strip of•land twenty-six (26) feet in width and two thousand, one hundred, fifty-four (2,154) feet in length, containing 1.24 acres of land, more or ',esa, and being thirteen (13) feet on either side of the center line of said strip of land which said center line is more particularly described as follows; - DR VOL 00464 PAGE 173 B 2H0F 4E3 VOL 464 POSE l3 BgGINNING at a point in the South property line of a tract of land in the GS•deon Walker 2/3 league survey Denton-County, Texas, deeded to. Thomas Cain and wife, Clara Etta Cain from Jsmse Wallace Henry and wife, Pauline Henry, ab shown in Volume 1430, Page 39 of the Deed Records of Denton County, Texas, said point being 25 feet, more or less West of the Southeast property corner of said tract; THRNCR North a distance of approximately 1,.974.7 feet parallel'to and 25 feet West of the East property line of said tract to a point for a corner; THRNCR Northeastward a distance of approximately 179.3 feet to a point in the bast roperty line of ss'id tract, said point -being 4E&,l feet, more or less, South of the Northeast property corner of said tract. TO HAVE AND TO HOLD, all and singular, the privileges afore- said to it, the said City of Denton, Texas, its successors and assigns forever, together with the right and privilege, at any and all times to enter said promises or any part thereof, for the purpose of constructing, reconstructing and perpstua34y•' maintaining said sanitary sewer line together with necessary appurtenances, and for making connections therewith; all upon the condition that the City of Denton, Texas, will never construct I any such sanitary sewer line or appurtenances above plow depth, and that such sanitary sewer line shall be constructed East of, and not closer than five (5) feet to, the center line above described, and that the City of Denton, Texas, will at all times, I after.doing any work in connection with the construction, recon- struction or repair of said sanitary sewer line restore said premises as nearly as posaible to ttp condition in which some were found before such work was undertaken, inoluding repair of ' all fences 'that might be disturbed or damaged in performing said work, and further upon the conditiod,that in the use of the'afore- said rights'and privileges herein granted, the City of Denton, Texas, will not create a nalsaoc® or do any act that will .be detrimental io said premises and that said tract will not be used by said City of Denton, Texas, for any other pufipose, under this grant, except as herein provided. Provided, however, that for the purpose of initially oonstructing the sanitary sewer line and appurtenances above described, and during quoh initial con- struction only, the City of Denton, Texas, and.its agents, shall have, the right and privilege to enter upon and use for such I - DR VOL 004M PAGE 174 EXHIBIT B VOL 464 P- 174 3 OF 4 initial construction purposes a strip of land sixty (60) feet in width and two thousand, one hundred, fifty-Pour (2,154) feet ' in length, more or less, and being thirty (30) feet on either side of the center line of said strip of land, as said center line is more particularly described above, upon the condition that said City of Denton, Texas, and its agents, will restore said premises nearly as possible to the condition in which same were found before such initial cons£ructiop work was undertaken, including repair of all fences that might be disturbed or damaged in per- forming said initial oonstruction_work. WIIMM OUR BANDS this 2,tl2tay of December, A.D. 1960. T Ate/ Thomas .r3 i THE SPATE OF TEaA3 GO= OF 21fiNTOH , B IR 248, the undersigned authority, a Notary Public $m and for Denton County, Texas, on this day personally appeared Thomas Cain and Clara Etta Gain, his wife, both known to me to be the persons whose names are subscribed to the foregoing instrument and aoknowledged to me that they each executed the same for the purposes and considers- tion therein expressed, and the said Clara Etta Cain, wife of the said Thomas Cain, having been examined by me privily and apart from her husband, and having the same fully ex- plained to her, she, the said Clara Etta Cain acknowledged such instrument to be her act and deed, and she declared that she had willingly signed the same for the purposes and consideration therein. expressed and that she did not -N . wish to retract it. , GIVEN UNDER EY HAND AM SEAL OF OFFICE this 2p"da7 - ,cf aebember, A.D. 1960. Notary Pub-li-cc in and for e t - Denton County, Texas f _ DR VOL 00464 PAGE 175 EX4 OF .4 VOL + Pko"E~ DEN,TO.N, TEXA S SEWER . EASEMENT I R. H. Tu rn bu!/ COUNTY ROAD N Sao%.• I~=400 4 ~ x U Q _ F ~o - • 2 z 1 Couhl-rY ROAD x--x c- --x x ,c Y X X K a~-X =RILED "R RECORD: tiny o A.D.1961 at //.,r6- oak ~BCORDED: dzy of A.D.19b1 at1_ C~~__ o*Cloo - tt. - .S.-Barnett,~le~k Cotmty---------- By: De Conrtl Den rat 0 oup y, Yexss - FEWHOF-G4 EASE~.r GEED RECORDS 19W j i AMMW CORPORATION, an Illinois corporation, duly authorised to conduct business within the state of Texas, with offices at ' 2701 Nayhill Road, Denton, Texas, {hereinafter referred to as `Grantor`) in consideration of the sun of ten dollars and other good and valuable consideration, in hand paid by the CITY OF DENTON, TEXAS, A MMICIPAL CORPORATION, of the County of Denton, , State of Texas, (hereinafter referred to as 'Grantee') the suf- ficiency thereof and receipt of which is hereby acknowledged, does hereby give and grant unto said CITY OF DENIM* TEXAS, an easement and right-of-way for the purposes of constructing, in- stalling, reconstructing, operating, maintaining, and removing sanitary sewer lines, manholes, equipment and other fixtures j necessarily appurtenant thereto as the CITY OF DENTON. TEXAS i f 7 may from time to time require for the operation of a sanitary i sewer line or lines underground, together with the right of ac- j cess thereto for said purposes, in, upon, under, along and across the property which ANDREN CORPORATION owns, or has an interest in, specifically described as and limited to the following described property, to wit: That certain Tract being in the GIDEON WWAMR Survey, Abstract 1330, Denton County, Texas, and Recorded in Volume 912, Page 790, in the Deed Records of Denton County, Texast the easement being granted shall cross this property, comprising two parts, as herein desig- nated and described, including (1) a permanent ease- : went twenty feet in width, for construction, or re- construction of the said sewer line or lines, and other equipment and fixtures necessarily incident t thereto, acid for perpetually maintaining said sewer line or lines, and (2) an additional area adjacent to the permanent easement, forty feet in width, to be used for initial construction, only. PART 1. PERMANENT EASEKENT WITH CENTERLINE DESCRIBED AS FOLLONSs HEGINNING at a point in the west line of the aforementioned tract of land, said paint be- ing South 04 degrees 34 minutes 57 seconds Wrest a distance of 530.66 feet from the Northwest corner of said tractt THENCE Worth 12 degrees 08 minutes 27 seconds East a distance of 536.86 feet to a point in the North line of said tract, said point be- ing South 86 degrees 40 minutes 40 seconds ' East a distance of 70.63 feet from the Northwest corner of said tract of land. Said eassnent is depicted in the Gideon Walker Survey by Edwin A. Apel dated August 1981, at- tached hereto, marked Exhibit A and made fully a part of this easement by this reference. , - d-try - - - - - - - - i;A- ExH~~rr c 20F6 w • 1. 'L'1 v PART 2. CONSMCt20N ENSE!SF, T In addition to the 20 foot permanent easement as described above, an initial construction easement 40 feet in width is to be furnished. This easement shall be adjacent and par- i allel to the permanent easement and shall be 20 feet in width on each side of said permanent easement. The Con- struction Easement shall be used for initial construction, only. The easement and right-cf-way created by this grant shall con- tine and be perpetual so long as the particular purpose for which the said easement or right-of-way has been created shall not have ceased, unions sooner released or abandoned. The Grantor reserves the right to continue to make use of the real estate covered by this grant, provided such use is not incon- sistent or detrimental to the easement and right-of-way herein created. The use envisioned by the Grantor, by way of example, and not by way of limitation shall be any and all use over said ease- meat, including paving over said easement, whether by way of lime stabilizing and compacted stone, or other methods of paving, in- cluding asphalt topping* concrete, or any other methods Grantor may use in its sole discretionr storage of goods and materials, vehi- cles, or other items along, beside, and directly over said easements the passage of fencing and other security measures over said ease- went as Grantor may use in its sole discretions and the raising of the grade over said easement, should the Grantor deem such increase in grade of the land included within the boundaries of said ease- 1 1 ment to be necessary, and in that event, the Grantee shall be re- sponsible for any costs in raising or lowering said sewer lines, manholes, and other equipment and fixtures necessarily incident thereto, whether on a temporary or permanent basis. The aforesaid Grantee in constructing, reconstructing, oper- ating, maintaining and rmioving said sewer lines, equipment, man- holes, and other fixtures necessarily incident thereto for the 1 operation of said sewer lines underground shall do as little as possible to the property of Grantor and will make good all damage, and shall, in any event, restore the said property so far as pos- sible to its present condition, or to the condition in which the Grantee finds the property immediately prior to any future opera- ti Lion, reconstruction, excavation relating to said sewer lines, or other activity of whatsoever type involved in the construction. reconstruction, operation and maintenance of said sewer line or lines. Nothing herein contained shall be construed to prevent the Grantor from making excavations or doing other arts for the pur- pose of laying road beds, parking lots, storage pads, or any other item which the Grantor may hereafter construct thereon and which • EXH~B~T C 30Fa r excavations or other acts might, but for this paragraph, be in der- ogation of the grant hereby madei and the Grantee shall at its own expense, within thirty (30) days after being required so to do un- der notice in writing given by the Grantor, relocate, at its cost, the depth of said equipment to the extent required, on a temporary or permanent basis, so that the said equipment will not be inter- fered with by any such excavation. The aforesaid Grantee hereby covenants and agrees to release f the easement and right-of-way herein granted by proper instrument ! upon termination of the easement and right-of-way when the afore- mentioned purposes therefore cease, or by abandonment, or otherwise. The aforesaid Grantee shall have satisfied the requirements of this covenant when it has properly filed an instrument of release in the Office of the Recorder of Deeds for Denton County, Texas. j The grants, reservations, covenants and stipulations herein lit contained shall extend to and be binding upon the respective suc- cessors and assigns of the parties hereto. ' IN WITNESS MMRROF, the said Grantor has caused this instru- ment to be signed in its name and behalf and its corporate seal to be affixed hereto, and attested, by its officers thereunto duly authorized, this Ls&day of% , A. D., 1982. / ANDREW CORPORMON, Grantor • .y y By t t 4 - t. C. Russell x, fr . President • ; s MRRT aFEAL) r- .A j~•a+ ATTEST: : e' •.b'f Sys f secretary STATE OF ILLINOIS ) tt Comm OF C 0 0 g SS y"• 1 Sworn to and subscribed before me this -day of+ ij-. V., 1982. / 01 i s,ICF 9 t' ('Jt ' !Il fi ) U V: • L I : r e~ • Notary c S• My commission expires. -------------------------r~«.,c-~--°-`c- --'••r_~-r• .#t. to - 440~ F6 The grants contained in the foregoing instrument are hereby accepted this day of A. D., 1982, sub- ject to the reservations, covenants and stipulations contained f therein. THE CITY OF DMCTOM, TEXAS, A l HUMCIPAL 0 ORATI . , Or n e jl Ave Title: (CORPORATE SEAL) 4/1 AVESTs Sys r~ Titles SYAW OF TEXAS } } SS COUNTY OF DENTON ) sworn to and subscribed before me this ,-2-610day of " A. D., 1982. , --764otary Public {SEAL) my commission expires A0 ) F t I `S 4 . EXHIBIT C . _ SOF6 P[/f3Ll+C,GCl44 Ever SE[UEQ .4+-1 s'l7~OF~GAra/{:EiVT ALG P!l.PioOSB f r ! t urlL/TY EASEMENT t ! T6LtAe0lJSO4Y 1 COMSTrwC /AN FAW-hfEivr t l j EAC,r E f,.'~ ~ ~j~~ qua ' vqP 1330 f ~~~1 1 GI AsS' AAMWELY 400. l t j 27.4 AC. r1W)' t ' Rawr 9EG/NN~NG kw.i.l:.i.4.1•+wI • iY tala DoeuC.-r,r war,n 7 t 70N C. - - - - E7CH/BIT 4-- 0 0F0 I i 1 1 12 -Y _ l + to ' I z i t + • f i if 11) 1 UR RI CORD DAY Ol- 1 l) 19M at 'f q at lei ( KI)l 1) S . DAY Of A 1) Iota. V 4R't )U 1111 L. (XII- lY ( 1.F RK. DI-STON ('()t'%n. WAS 81 _ f--- - - IN III, IY I EI C),F5 NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. SANITARY SEWER EASEMENT THE STATE OF TEXAS, § § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF DENTON § THAT Holigan Land Development, Ltd., a Texas limited partnership, (Grantor), in consideration of the payment of the sum of One Dollar and No Cents ($1.00) in hand paid by the City of Denton, Texas (City), receipt of which is hereby acknowledged, grants, and conveys to the City a permanent sanitary sewer easement across the real property owned by Grantor, as described in EXHIBIT "A" and illustrated in EXHIBIT "B", attached to and incorporated into this document by reference. The grant made includes and is subject to the following: 1. Purpose. This easement grants to the city the right to construct, install, reconstruct, repair, relocate, operate, and maintain sanitary sewer lines, facilities and appurtenances, in, on, over, under and across the permanent easement. 2. Building and Structures. Grantor shall not construct, erect or place any buildings, signs, or other permanent structures, or portions thereof, in, on, or over the permanent easement. The City will replace or repair any sidewalk, parking lot, or driveway that exists on the easement on the date of execution of this instrument if removed or damaged by the City during the initial construction of the sanitary sewer line. If the Grantor constructs or places buildings, signs, parking lots, driveways, private walkways, or other structures or improvements over the permanent easement after execution of this easement document, the City may remove all or part of the structures and improvements as necessary to construct, reconstruct, replace, repair, alter, relocate, operate or otherwise exercise its rights herein without any obligation - to replace or repair the structures or improvements and without any liability to Grantor including the obligation to make further payment to Grantor. 3. Fences and Gates. If necessary to remove or relocate any fence or gate during the initial construction of the sanitary sewer line, the City will remove or relocate the fence or gate at City of Denton expense. After completion of the initial construction, the EXHIBIT E:~ 2QF5 City shall reinstall any fence or gates initially removed or relocated to their original locations. The Grantor, but not the City, may construct new fences and gates on the permanent easement after the date of this instrument but the fences and gates shall be placed substantially perpendicular to the easement. Any fences placed across the easement shall contain gates or removable panels so that the easement is readily accessible by the City's employees and agents at all times. If the gates are to be kept locked by Grantor, the City shall be provided the keys or other means, as applicable, so that the City may open all locks for access without prior notice to Grantor. 4. Access. For the purposes of exercising its rights, the City shall have access to the easement by way of existing public property or right-of-way and not from other lands owned by Grantor outside the permanent easement. 5. Trees and Landscaping. Grantor shall not plant any tree upon the permanent easement property. City may cut, trim, or completely remove any trees or portions of trees now or hereafter located within the easement without liability to Grantor including the obligation to make further payment to Grantor., Grantor may plant shrubs, vines, grass, or install irrigation systems and other system landscape features within the permanent easement, but the City may remove all or part of any shrubs, vines, grass, or other landscape features as is necessary construct, reconstruct, replace, repair, alter, relocate, operate its sanitary sewer facilities or otherwise exercise its rights herein without any liability to Grantor including the obligation to make further payment to Grantor. Any area disturbed during construction shall be seeded by the City as per City of Denton project specifications. Subsidence associated with said construction will be repaired by the City of Denton in a timely manner. 6. Crops. The payment herein made includes any damage or loss to crops sustained in the future by Grantor resulting from the City's construction, reconstruction, repair, replacement, or other use of the easement for the purposes granted. 7. Grantor's Rights. Grantor shall have the right to make use of the easement for any purpose that does not interfere with the City's rights in the easement for the purposes granted, subject to the restrictions contained herein. S. Neither party has made any representations or promises outside the written provisions of this easement document relating to the subject matter of this easement document. 9. Successors and Assigns. This grant shall run with the EZC0FS land and shall be binding upon the parties and their heirs, successors and assigns. Witness my hand, this the /.3 day of , re4, 2009. HOLIGAN LAND DEVELOPMENT, LTD., a Texas limited partnership By: HL Development, LLC, a Texas limited liability company, its general partner allace reel, President ACKNOWLEDG MW THE STATE OF COUNTY OF This instrument was acknowledged before me on~ 2009 by Wallace Creel, President, HL Development, LLC, a Texas limited liability company, as general partner of HOLIGAN LAND DEVELOPMENT LTD., a Texas limited partnership. BORIS CLINE r MY COMMISSION EXPIRES Notary Public, in and for the State of . M~r►~, zoio My CXmissicn Expires : "aka)' Accepted this h- day of m 2009 for the of Denton, Texas (Resolution No. 91-073). Ci: r By Paul Williamson Real Estate & Capital Support Manager AFTER RECORDING RETURN TO: City of Denton 901-A Texas Street Denton, Texas 76209 ATTN: Paul Williamson EXHIBIT D 4OF S A rthur Surveying Co., Inc. sonar Laud Surveyors P.O. Box 54 - Lewisville, Texas 75067 Office: (972) 221-9439 - Fax: (972) 221-4675 SANITARY SEWER EASEMENT CITY OF DENTON, DENTON COUNTY, TEXAS BEING all that certain lot, tract or parcel of land situated in the Gideon Walker Survey, Abstract Number 1330, City of Denton, Denton County, Texas, and being a part of Lot 3, Block A of Flowers Food Addition, an addition to the City of Denton, Denton County, Texas, according to the conveyance plat thereof recorded in Cabinet W, Page 335 of the Plat Records of Denton County, Texas, and being more particularly de=-bed as follows: BEGINNING at a %s inch iron rod found with cap stamped -A ETROPLEX" at tbe northwest comer of said Lot 3 and the northeast corner of Lot 1, Block A of Flowers Food Addition, an addition to the City of Denton, Denton County, Texas, according to the plat thereof recorded in Cabinet W, Page 333 of the Plat Records of Denton County, Texas and being in the south line of Edwards Road; THENCE South 87 degrees 13 minutes 04 seconds East, with the south line of said Edwards Road, a distance of 25.00 feet to a point for corner, THENCE South 02 degrees 39 minutes 54 seconds West; over, across and through said Lot 3, a distance of 17036 feet to a point for corner in the westerly line of a 26 foot wide Sanitary Sewer Easement, recorded in Volume 464, Page 172 ofthe Deed Records of Denton County, Texas; THENCE South 09 degrees 05 minutes 20 seconds West, continuing over, across and through said Lot 3 and with the westerly line of said Sanitary Sewer Easement, a distance of 223.45 feet to a point for corner in the east time of said Lot 1; THENCE North 02 degrees 39 minutes 54 seconds East, continuing with the east line of said Lot 1, a distance of 392.45 feet to the POINT OF BEGINNING, and containing 0.162 acres of land, more or less. 'p1STFp ~ ~ 64 Ey 5 2 ~.rr A90 E35 ~.,PvOQ! v-U0071cofttste schwl inbrceptw-640115537W=Xe=tdoc E 5~OF S NORTH EDWARDS ROAD l0A 0 100 Feet POB S87'13'04"E 25.00' LR.F. (CM) SANITARY SEWER ESMT. 3 20' ITA'R~ 0.162 ACRES I X61 N • Of ' M 26' SAWARY SEWER ESMT. xW j I O L. W 464 PPGC. 179 O" PO~~A" 0 O~ 5~0~ ePG Z ~y~O~ y~O~eP c~'GQ~ ~ll ~'G r . gr Q~ ..~0•4~ Q W. THAD HURLEY III J ` A F 5802 vf ~ ! W s •vO SVRV I! r!1 Sanitary Sewer Easement f 0.162 Acres in the Gideon Walker Survey, Abst. No. 1330 f~~J City of Denton I Denton County, Texas N60 40'46"W I I 5.10 -200- ' I 20 VPS PG 4;3- - Arthur Surveying Co., Inc. Professional Land Surveyors 972-221 9439 - Fat 972-221-4675 220EIm SUee; Suits 200 P.O. Box 54 LewisvMe„ Texas 75067 0'2007%C0"-"TATE SOW- 0 UMEPTM-640U5537--Q\290460.d~p 4/25/2008 348.06 PH CDT Exhibit E QUIT CLAIM THE STATE OF TEXAS § § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF DENTON § THAT the City of Denton, Texas, a municipal corporation of the County of Denton, State of Texas (the "Assignor"), in consideration of the sum of One Dollar and No Cents ($1.00) and other good and valuable consideration in hand paid by Holigan Land Development, Ltd., a Texas limited partnership (the "Assignee"), the receipt of which is hereby acknowledged, does by these presents, QUIT CLAIM unto Assignee, its successors and assigns, all its right, title and interest in and to those certain tracts or parcels of land being described in Exhibit "A", Exhibit "B", and Exhibit "C" attached hereto and made a part hereof for all purposes, INSOFAR AND ONLY INSOFAR as said tracts or parcels are located and included in Lot 3, Block A of Flowers Food Addition, an addition to the City of Denton, Denton County, Texas, according to the conveyance plat thereof recorded in Cabinet W, Page 335 of the Plat Records of Denton County, Texas County of Denton and State of Texas. TO HAVE AND TO HOLD all of Assignor's right, title and interest in and to the Property unto the Assignee, its successors and assigns forever, so that neither Assignor nor its successors or assigns shall have, claim or demand any right or title to the Property or appurtenances or any part thereof. Witness my hand, this the day of 12009. CITY OF DENTON, TEXAS By: George C. Campbell City Manager ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: ACKNOWLEDGMENT THE STATE OF TEXAS § COUNTY OF DENTON § This instrument was acknowledged before me on 2009 by George C. Campbell, City Manager, City of Denton. Notary Public, in and for the State of Texas. My Commission Expires: Page 2 DR VOL 00484 PAGE 179 6 ;H0 F 3 A VOL 464 PA:419 h THE STATE OF TEXAS 91.E COUNTY OR DEN ON BROW ALL MEN BY THESE PRESENTS: THAT ME, L. 0. Dupree, and wife, Stella M:-Dupree of the County of Denton, State of Texas, ±or and in consideration of the sum of Ion Dollars ($10.00) cash to us in hand paid by the City of Denton, Texas, a municipal corporation, of the County of Denton, State of Texas, the receipt of which is hereby ack- nowledged, and other good and valuable consideration including the benefits that will accrue to our property, do hereby GIVE, 'GRANT and EXTEND to the said City of Denton, Texas, its successors and assigns,'the right to construct, reconstruct and perpetually maintain a sanitary sewer line and appurtenances in, upon and across the following described tract of land, said tract being a strip of land twenty-six (26) feet in width and four hundred, eighty-eight and three tenths (488.3) febt in length, containing 0.28 acres of land, more or less, and being thirteen (13) feet on either side of the center line of said strip of land which said center line is more particularly described as follows: BEGINNING-at a point in the West property line of a tract of land in the Gideon Walker 2/3 league survey, Denton County, Texas, deeded by Roland Hill and. wife, Liffis Ilah Hill, to L. 0. Dupree and wife, Stella M. Dupree, as shown in Volume 341, Page 70 of the Deed Re- cords of Denton County, Texas, said point being approxi- mately 484.1 feet South of the Northwest property corner of said tract; THENCE Northeastward a distance-of approximately 488.3 feet to a point in the North property line of said tract, said point being 63 feet, more or less, East of the Northwest property corner of said tract. TO HAVE AND TO HOLD, all and singular, the privileges afore- said to it, the said City of Denton, Texas, its successors and assigns forever, together With the right and privilege, at any and all times to enter said premises or any part thereof, for the purpose of constructing, reoonstructiag and,pe`rpetually 1 maintaining said sanitary sewer line together withenacessary appurtenances, and for making connections therewyh; all;upon the condition that the City of Denton, Texas, will never construct any such sanitary sewer line or appurtenances above plow depth, -and that the City of Denton, Texas, will at all times, after doing any work in connection with the construction, reconstruction or repair of said sanitary sewer line restore said premises. as nearly as possible to the condition in which same were found be- .-of such work was undsrtaken, including repair.oP all fences. that might be 'disturbed or damaged S1Y performing said work,'and further upon the condition that in the use of the aforesaid rights and privileges herein granted; the City of Denton, '1"exas, OR VOL 00464 PAGE 180 VOL 4 PRo"E10U E 2HOF 3 A ) will not create a nuisance or do any act that will be detrimental to said premises and that said tract will Aot be used by said City of Denton, Texas, for any other purpose, under this grant, except as herein provided. Provided, however, that for the purpose of initially constructing the sanitary sewer line and appurtenances above described, and during such initial construc- tion only, the City of Denton, Texas, and its agents, shall have' the right and privilege to enter upon and use for such initial construction purposes a strip of land sixty (60) feet in width and four hundred, eighty-eight and three tenths (488.3) feet in length, more or leas, and being thirty (30) feet on either side of the center line of said strip of land, as said center line is more particularly described above, upon the condition that said City of Denton, Texas, and its agents, will restore said premises as nearly as possible to the condition in which same were found before such initial construction work was undertaken, including repair of all fences that might be disturbed or damaged in performing said initial construction work. WITS SS OUR HANDS this • 7aday of December, A.D. 196,0. L. Dupree e s Pre . THE STATE OF TEXAS COUNZY OF DENTON % BSFOHE ME, the undersigned authority, a Notary Pub%iO in and for Denton Count-y, Texas, on this day personally appeared L. C. Dupree and Stella M. Dupree, his wife, bath known to me to be the persons whose names are subscribed t' the foregoigg instrument and acknowledged to me that they each executed the same for the purposes and considera- tion therein-expressed,-and the said Stella M. Dupree, wife of the said La C. Dupree, having been examined by me privily and apart from her hu$band and having the same fully ex- plained to her, She, the said. Stella M. Dupree acknowledged such instrument to be her act and deed, and she declared that She had williTy signed the same for the purposes and consideration there 3n expressed and that.she did not wish to retract it: GIVEN UMM MY HAND AND SEAL OF OFFICE this ~Y ~aey of -December,' A.D. 1960. h Notary public in and for -•i _ Denton County, Texas DR VOL 00464 PAGE 181 E C> F= 3A VOL 04 PRSE_t81 DEN7-ON, TEXAS S~wsu EasEnaEnrr I R. N. TuRNSULL CO NTYROAD " 6s, ThorraB Ccs!» L. C. OLIPre e 11 G ryryY~~ \ V ~ V z ~ x k Scale: ~'--goo x 3FED FM BECMD: day oP A.D.1961 at LT3"otolook 19 =00RD$D: ,j~_day of A.D.19b1 at + S o*eloc S. .J. Barnett erk ty By: Deputy Court, De-ntoA Counu, Was DR VOL OD464 PAGE 172 6 1400E 4 i THE STATE OR TEXA$ 912 SNOW ALL MEN BY THESE PRESENTS: COUNTY OF DENTON THAT WE, Thomas Cain, and wife, Clara Etta Gain of the County of Denton, State of Texas, for. and in consideration of the sum of Ten Dollars ($10.00) cash to us in hand paid by the dity bf Denton, Texas, a municipal corporation, of the County of Denton, State of Texas, the receipt of which is hereby ack- nowledged, and other good and valuable consideration. including i - the benefits that will accrue to our property, do hereby GIVE, GRANT and MUEND to the said City of Denton, Texas, its successors and assigns, the right to d7onstruot, reconstruct and perpetually i maintain a sanitary sewer line and appurtenances in, upon and across the following described tract of land, said tract being a strip o£-land twenty-six (26) feet in width and two thousand, one hundred, fifty-four (2,154) feet in length, containing 1.24 acres of land, more or less, and being thirteen (13) feet on either side of the center line of said strip of land which said i center line is more particularly described as follows: I i i I i i I I i i I I 1 i i I 1 i 1 i i OR VOL 00464 PAGE 173 E 2HOF .4 Vol 46 P~7 BEGINNING at a point in the South property line of a tract of land in the Gideon Walker 2/3 league survey Denton-0ounty, Texas, deeded to Thomas Cain and wife, Clara Etta Cain from James Wallace Henry and wife, Pauline Henry, as shown in volume 430, page 39 of the Deed Records of Denton County, Texas, said point being 25 feet, more or less West of the Southeast property corner of said trao; THENCE North a distance of approximately 1,974.7 feet parallel'to and 25 feet West of the East property line of said tract to a point for a corner; j THENCE Northeastward a distance of approximately 179.3 feet to a point in the East property line of said tract, said point-being 484.1 feet, more or less, South of the Northeast property corner of said tract. TO HUE AND TO HOLD, all and singular, the privileges afore- said to it, the said City of Denton, Texas, its successors and assigns forever, together with the right and privilege, at any and all times to enter said premises or any part thereof, for the purpose of constructing, reconstructing and perpetually maintaining said sanitary sewer line together with necessary appurtenances, and for making connections therewith; all upon the condition that the City of Denton, Texas, will never construct any such sanitary sewer line or appurtenances above plow depth, and that such sanitary sewer line shall be constructed East of, and not closer than five (5) feet to, the center line above described, and that the City of Denton, Texas, will at all times, after.doing any work in connection with the construction, recon- struotion or repair of said sanitary sewer line restore said r premises as nearly as possible to the condition in which same j were Pound before such work was undertaken, including repair of all fences-that might be disturbed or damaged in performing said work, and further upon the condition-that in the use of the' afore- said right''and privileges herein granted, the City of Denton, Texas, will not create a nuisance or do any act that will.be detrimental to said premises and that said tract will not be used by said City of Denton, Texas, for any other pufipose, under this grant, except as herein provided. Provided, however, that for the purpose of initially constructing the sanitary sewer line and appurtenances above described, and during such initial con- struction only, the City of Denton, Texas, and.its agents, shall have-the right and privilege to eater upon and use for such i i I f j DR VOL 00464 PAGE 174 E 3H0F~ 4~ - t VOL 464 MUM Initial construction purposes a strip of land sixty (60) feet in width and two thousand, one hundred, fifty-four (2,154) feet in length, more or less, and being thirty (30) feet on either side of the center line of said strip of land, as said center line is more partieularly described above, upon the condition that said City of Denton, Texas, and its agents, will restord said premises as nearly as possible to the condition in which same were found before such initial construction work was undertaken, including repair of all fences that might be disturbed or damaged in per- forming said initial construction.-work. WITNESS OUR HANDS this aa'r1day of December, A.D. 1960. TnOTWO Lea nom' Cis . u7ara •a a n n - THE STATE OF TE= COUNTY OF DENTON BEFORE ME, the undersigned authority, a Notary Public in and for Denton County, Texas, on this day personally appeared Thomas Cain and Clara Etta Cain, his wife, both known to me to be the persons whose names are subscribed to the foregoing instrument and acknowledged to me that they each executed the same for the purposes and considera- tion therein expressed, and the said Clara Etta Cain, wife of the said Thomas Cain, having been examined by me privily and apart from her husband, and having the same fully ex- plained to her, she, the said Clara Etta Cain acknowledged such instrument to be her act and deed, and she declared that she had willingly signed the same for the purposes and consideration therein. expressed and that she did mot -b - wish to retract it. GIVEN UNDER MY HAND AND SEAL OF OFFICE this 2.g-day ,of Xeeember, A.D. 1960. 0 14 rF_= Notary Public in and for Denton County, Texas DR VOL 00464 PAGE 175 EXHIBIT 61 4 G1F 4 VOLE 464 ?V.Ei75 DEN,TON, TEXA 5 SEYVER EA5EMENT LP.H.UNr Turnb ull Y ROAD cD , 10 D 9Ca/e: /'-4001 . Q O •O i Q X Z x i COUNTY ROAO x x x-- -x x X p X z w a x tiay oY D.I9b1 at /1. SO:clock 2d. FILED FOR REOD£tD: A. =ORDER: day of A.D.19b1 abGl ooloc ES. .J. Barnett,ouuty .By. De ft Court, Dentaa County, Takas - 1 ' EXHIBIT C - 9 OF 6 EASEMENT MIED RECORDS ANDREW CORPORATION, an Illinois corporation, duly authorized to conduct business within the state of Texas, with offices at 1 2701 Iiayhill Road, Denton, Texas, (hereinafter referred to as 'Grantor') in consideration of the sun of ten dollars and other good and valuable consideration, in hand paid by the CITY OP DENTON, TEXAS, A MUNICIPAL CORPORATION, of the County of Denton, i ` State of Texas, (hereinafter referred to as 'Grantee') the suf- ficiency thereof and receipt of which is hereby acknowledged, does hereby give and grant unto said CITY OF DENTON, TEXAS, an easement and right-of-way for the purposes of constructioa, in- stalling, reconstructing, operating, maintaining, and removing sanitary sewer lines, manholes, equipment and other fixtures j necessarily appurtenant thereto as the CITY OF DENTON, TEXAS i f 9 may from time to time require for the operation of a sanitary sewer line or lines underground, together with the right of ac- j Bess thereto for said purposes, in, upon, under, along and across ' the property which ANDREW CORPORATION owns, or has an interest in, specifically described as and limited to the following described property, to wit: That certain Tract being in the GIDEON HACKER Survey, Abstract 1330, Denton County, Texas, and Recorded in Volume 9120Page 790, in the Deed Records of Denton ' County, Texas; the easement being granted shall cross this property, comprising two parts, as herein desig- j hated and described, including (1) a permanent ease- s went twenty feet in width, for construction, or re- construction of the said sewer line or lines, and other equipment and fixtures necessarily incident t thereto, and for perpetually maintaining said sewer line or lines, and (2) an additional area adjacent to the permanent easement, forty feet in width, to be used for initial construction, only. PART I. PERMANENT EASMUXT WITH CENTERLINE DESCRIBED AS FOLLOWSs BEGINNING at a point in the vast line of the aforementioned tract of land, said point be- ing South 04 degrees 34 minutes 57 seconds west a distance of 530.66 feet from the Northwest corner of said tracts THENCE North 12 dogrees 08 minutes 27 seconds East a distance of 536.88 feet to a point in the North line of said tract, said point be- ing South 86 degrees 40 minutes 40 seconds ' Zest a distance of 70.63 feet from the Northwest corner of said tract of land. Said easement is depicted in the Gideon Walker Survey by Edwin A. Apel dated August 1981, at- tacked hereto, marked Exhibit A and made fully a part of this easement by this reference. ll - Aw • EXHIBIT C 20F6 i PART 2. CONSTRUCTION EASEMT in addition to the 20 foot permanent easement as described i above, an initial construction easement 40 feet in Width is to be furnished. This easement shall be adjacent and par- allel to the permanent easement and shall be 20 feet in width on each side of said permanent easement. The Con- struction Easement shall be used for initial construction, only. The easement and right-of-Way created by this grant shall con- tinue and be perpetual so long as the particular purpose for which the said easement or right-of-way has been created shall not have ceased, unless sooner released or abandoned. i The Grantor reserves the right to continue to make use of the real estate covered by this grants provided such use is not incon- sistent or detrimental to the easement and right-of-wry herein created. The use envisioned by the Grantor, by way of example, and not by way of limitation shall be any and all use over said ease- ment, including paving over said easement, whether by way of lime stabilizing and compacted stone, or other methods of paving, in- cluding asphalt topping, concrete, or any other methods Grantor may use in its sole discretions storage of goods and materials, vehi- cles, or other items along, beside, and directly over said easements the passage of fencing and other security measures over said ease- ment as Grantor may use in its sole discretionr and the raising of the grade over said easement, should the Grantor deem such increase E in grade of the land included within the boundaries of said ease- meet to be necessary, and in that event, the Grantee shall be re- f sponsible for any costs in raising or lowering said sewer lines, manboles, and other equipment and fixtures necessarily incident thereto, whether on a temporary or permanent basis. The aforesaid Grantee in constructing, reconstructing, open- sting, maintaining and removing said sewer lines, equipment, man- holes, and other fixtures necessarily incident thereto for the operation of said sewer lines underground shall do as little as possible to the property of Grantor and will make good all damage, and shall, in any event, restore the said property so far as pos- sible to its present condition, or to the condition in which the Grantee finds the property immediately prior to any future opera- tion, reconstruction, excavation relating to said sewer lines, or other activity of whatsoever type involved in the construction, reconstruction, operation and maintenance of said sewer line or t lines. Nothing herein contained shall be construed to prevent the ! Grantor from, making excavations or doing other acts for the pur- pose of laying road beds, parking lots, storage pads, or any other item which the Grantor may hereafter construct thereon and which ,i . 1 . ' EXHIBIT C 3 OF 6 a ~i excavations or other acts might, but for this paragraph, be in der- ogation of the grant hereby madei and the Grantee shall at its own expense, within thirty (30) days after being required so to do un- der notice in writing given by the Grantor, relocate, at its cost, the depth of said equipment to the extent required, on a temporary or permanent basis, so that the said equipment will not be inter- fered with by any such excavation. The aforesaid Grantee hereby covenants and agrees to release the easement and right-of-way herein granted by proper instrument upon termination of the easement and right-of-way when the afore- mentioned purposes therefore cease, or by abandonment, or otherwise. The aforesaid Grantee shall have satisfied the requirements of this covenant when it has properly filed an instrument of release in the Office of the Recorder of Deeds for Denton County, Texas. The grants, reservations, covenants and stipulations herein contained shall extend to and be binding upon the respective suc- cessors and assigns of the parties hereto. ' IN WITNESS WHEREOF, the said Grantor has caused this instru- ment to be signed in its name and behalf and its corporate seal to be affixed hereto, and attested, by its officers thereunto duly authorised, this day of , A. D., 1982. ANDREW CORPORATION, Grantor ~ By: : Y C. Russe Cox, President ► -A FWORATE'SEAL) .1;i r• ,,aj'b! ATTESTS ` • Sys = secretary STATE OF ILLINOIS ) COUNTY or C O O % j SS Kip, Sworn to and subscribed before as this A. day A, O-, 1982. U x Notary Public my commission expires ELM EXHIBIT C 40F46 S . 7 ~ f ~f The grants contained in the foregoing instrument are hereby t accepted this day of 1982, sub- ject to the reservations, covenants and stipulations contained I therein. THE CITY OF DE!Wq. TEXAS, A MUNICIPAL O ORATI , Gr n e Bye Titles (CORPORATE SEAL) ATTEST: Bys I Titles 1 STATE OF TEXAS ) S SS COUN" of DERTON ) Sworn to and subscribed before me this ay of A. D., 1982. A~ZIOA --7640tary Public (SEAL) My commission expires i 1 t i . ii 4 -_A. _ ~ ~ _ EXHIBIT C - SOF6 i i f ~ PuisuC A;a4z) wG3'' w_ SB6'40_40E !MVf SE!!!E4 r e'E1'PE?t++,4~;Lj1lf J ALL Pu.?IAOSE many --4- smwmor 1 j rzgwponvY 1 r j EACH S/AE L~~ 3,11 t DER SCA. r. /00, i 1 , err Glf) .Nat ~ ~ •A~I~JQ~[U A J~ i ~ ~ j ~ ~ AM0125W 0012,? ( 2#74 Ac. rzowr f AQ*VT f ~WGiNNING r i j cotaenr rxxs ~:F,;n L"mft _ err L"F~ 'lam FI:ay.V .t..i:w.l~J..t Ia Aoeumcm Saw teoal+ad s i tJTiLlTY Ed6,gt'.-'~Jr7 t ~ +a.. 4:?,:.~.dGE 79'x- ~.?Er. i QOM C. EXHIBIT C 6 QFG 12 - g r-_ . FILM V.Z J.- 112 6 C.:1: CIEF s O: F:a TzL N' rr U o 8 r•4 ~ , F F z i 1 a i it t it i OK KI COR9 VAY nl- %D 19M +s L ~Llti lo (OHM DAY Of A 1) 199L ' V %HI )U itlf L. (71?\ fY ('Lt Ki►. Ul.NT'c)N Mt :%Tl. I I AAS d1 _ ! !-..C4__ Dirt iY i i F ~ EXHIBIT 3 Holigan Easement Abandonment Location Map t 1 1 Phase I 42" Sewer Line 1 ~-r New Holigan Easement Tract FLOWER'S BAKERY TRACT Holigan Easement Abandonment Tracts HOLIGAN TRACT Phase 11 Future 42" Sewer Line Future Flower's Easement Tract (Phase II) 1 inch = 100 feet EXHIBIT I EXHIBIT 4 1 DRAFT MINUTES 2 PUBLIC UTILITIES BOARD 3 May 18, 2009 4 5 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was 6 present, the Chair of the Public Utilities Board thereafter convened into a Closed Meeting on 7 Monday, May 18, 2009 at 9:00 a.m. in the Service Center Training Room, City of Denton 8 Service Center, 901-A Texas Street, Denton, Texas. 9 10 Present: Chair Dick Smith, Bill Cheek, Phil Gallivan, John Baines, Randy Robinson and 11 Bill Grubbs 12 13 Ex Officio Members: 14 George C. Campbell, City Manager 15 Howard Martin, ACM Utilities 16 17 OPEN MEETING: 18 19 CONSENT AGENDA: 20 The Public Utilities Board has received background information, staff's recommendations, and 21 has had an opportunity to raise questions regarding these items prior to consideration. 22 23 3) Consider recommending adoption of an ordinance approving the abandonment of a portion of 24 the City of Denton's interest in three sanitary sewer line easements, being from L.C. Dupree, 25 and wife, Stella M. Dupree, Volume 464, Page 179, Thomas Cain, and wife, Clara Etta Cain, 26 Volume 464, Page 172, and Andrew Corporation, an Illinois Corporation, Volume 1123, 27 Page 407, all recorded in the Denton County Real Property Records, Denton, Texas; 28 provided however, that said abandonment shall only be effectual as to that certain tract of 29 real property being legally described as Lot 3, Block A, of Flowers Food Addition, an 30 addition to the City of Denton, Denton County, Texas, according to the conveyance plat 31 thereof recorded in Cabinet W, Page 335 of the Plat Records of Denton County, Texas; and 32 declaring an effective date. 33 34 Board Member Phil Gallivan moved to approve Item 3 with a second from Board member 35 Bill Cheek. The motion was approved by a 5-0 vote as Board Member John Baines was 36 absent from the room when the vote was taken. 37 38 The meeting was adjourned by consensus at 11:58 a.m. 39 This page left blank intentionally. AGENDA INFORMATION SHEET AGENDA DATE: June 2, 2009 DEPARTMENT: Electric Utility ACM: Howard Martin, Utilities, 349-823 SUBJECT Consider adoption of an ordinance of the City Council of the City of Denton, Texas authorizing the City Manager to execute a Second Amendment to Agreement for Professional Legal Services with the law firm of Walker Sewell, LLC. For Professional Legal Services relating to litigation styled: Texas Municipal Power Agency vs. City of Bryan, Texas Cause No. 28,169 pending in the 506th Judicial District Court in and for Grimes County, Texas; Ex Parte Texas Municipal Power Agency, Cause No. D-1-GN-08-003426, now pending before the 250th Judicial District Court in and for Travis County, Texas; authorizing the expenditure of funds therefor; and providing an effective date. The Public Utilities Board recommends approval (6-0). BACKGROUND The law firm represents the City of Denton with regard to TMPA litigation that began in September 2008. Thus far the litigation has been in three Texas counties. The initial position was that the City of Bryan (a TMPA member city) sued not only the separate entity TMPA, but also the three Northern Cities. One of the lawsuits in Travis County, Texas involved the validation of approximately $434 million of TMPA bonds. That case has been tried and is pending final judgment. The City of Bryan, Texas, took the position that it strongly opposes validation of any of the bonds. The City of Bryan has also interestingly enough stated in open court that they "want a divorce from TMPA." In mid-September 2008 the City of Bryan initiated litigation on several fronts, including as parties, for the first time, the three Northern Cities of TMPA (Denton, Garland and Greenville). These multiple fronts dealt with tort claims against the three Northern Cities, conspiracy claims, derivative claims brought on behalf of TMPA, as well as Bryan filing pleadings as a Cross-Plaintiff in the previous 1997 Grimes County collection case, which was formerly only between TMPA and the City of Bryan. That case had just been decided and mandated by the Texas Supreme Court in July 2008, after eleven years of litigation between TMPA and Bryan. There is much work that still needs to be done with regard to defending the City of Denton as a defendant and a cross-defendant, as well as protecting Denton's 21.3% interest in TMPA. Advancing and maintaining our position and completing the discovery in an expeditious manner, in multi-county litigation, has kept our outside law firm very busy. Denton is steadily moving forward in these cases. OPTIONS 1. Approve the Second Amendment as is. 2. Approve the Second Amendment in some lesser amount. RECOMMENDATION The City Attorney and DME recommend approval of the Second Amendment as is. PRIOR ACTION/REVIEW (Council, Boards, Commissions) PUB initially unanimously approved the original NTE $90,000 PSA and recommended that the City Manager approve it as it was within his delegated authority; this PSA was approved by the City Manager on September 22, 2008. The Public Utilities Board then unanimously approved the First Amendment to PSA and recommended that the City Council approve it, in the further NTE amount of $105,000; the City Council approved that First Amendment by Ordinance No. 2009-058. The PUB has considered the Second Amendment in the additional amount of $200,000 (aggregating a total of $395,000) at its May 18, 2009 meeting and unanimously approved it: recommending that the City Council approve it. The City Council will consider this Second Amendment at its June 2, 2009 open meeting. EXHIBITS 1. Ordinance 2. Second Amendment to Agreement for Professional Legal Services 3. PUB Meeting Minutes Respectfull.Y.. submitted RHO!", fl! HHHHHHHHE . . ~HHHHHHHHE Phil Williams General Manager Denton Municipal Electric Prepared by: Michael S. Copeland. Utility Attorney EXHIBIT 1 ORDINANCE NO. 2009- AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE A SECOND AMENDMENT TO AGREEMENT FOR PROFESSIONAL LEGAL SERVICES WITH THE LAW FIRM OF WALKER SEWELL, LLC FOR PROFESSIONAL LEGAL SERVICES RELATING TO LITIGATION STYLED: TEXAS MUNICIPAL POWER AGENCY VS. CITY OF BRYAN, TEXAS, CAUSE NO. 28,169 PENDING IN THE 506TH JUDICIAL DISTRICT COURT IN AND FOR GRIMES COUNTY, TEXAS; EX PARTE TEXAS MUNICIPAL POWER AGENCY, CAUSE NO. D-1-GN-08-003426, NOW PENDING BEFORE THE 250TH JUDICIAL DISTRICT COURT IN AND FOR TRAVIS COUNTY, TEXAS; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council deems it necessary, appropriate, and in the public interest to continue to engage the law firm of Walker Sewell, LLP, Dallas, Texas to provide further professional legal services relating to the above numbered and entitled litigation, as well as other TMPA related issues; and WHEREAS, the City Manager, within his delegated authority, has previously approved the original Agreement for Professional Legal Services with the Firm in the amount not-to- exceed $90,000 on September 22, 2008, effective from and after September 18, 2008; then after litigation and related matters moved forward, the City Council, by Ordinance No. 2009-058 approved the First Amendment to Agreement for Professional Legal Services with the Firm, on the 3rd day of March, 2009 in a further amount not-to-exceed an additional $105,000, totaling a not-to-exceed aggregate of $195,000; and WHEREAS, City staff has reported to the City Council that now two of the lawsuits brought by the City of Bryan, Texas have been dismissed, and the bond validation lawsuit in Travis County has been tried, and a Judgment is now pending in that case. There is a continued and substantial need for the hereinabove described professional legal services, and that limited City staff cannot adequately perform the legal services with its own personnel considering its complexity and the diverse locations of the cases; and Staff hereby recommends that the City Council enter into a Second Amendment to Agreement for Professional Services for a further amount, not to exceed an additional $200,000, totaling an aggregate of $395,000; and WHEREAS, Chapter 2254 of the Texas Government Code, known as the "Professional Services Procurement Act," generally provides that a city may not select a provider of professional services on the basis of competitive bids, but must select the provider of professional services on the basis of demonstrated competence, knowledge, and qualifications, and for a fair and reasonable price; and the City Council hereby finds and concludes that Walker Sewell, LLP is appropriately qualified under the provisions of the law to continue to be retained as outside legal counsel for the City; and WHEREAS, the City Council has provided in the City budget for the appropriation of funds to be used for the procurement of the foregoing professional legal services, as set forth in the Second Amendment; NOW, THEREFORE, I THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1: The recitations in the preamble are true and correct and are incorporated by reference herewith as a part of this ordinance. SECTION 2: The City Manager is hereby authorized to execute a "Second Amendment to Agreement for Professional Legal Services" (the "Second Amendment") with the law firm of Walker Sewell, LLP of Dallas, Texas for continued professional legal services in the further not- to-exceed amount of $200,000, which aggregate not to exceed $395,000, relating to above numbered and entitled litigation, and in other related TMPA activities, in substantially the form of the Second Amendment attached hereto as Exhibit "A" and incorporated herewith by reference. SECTION 3: The award of this Agreement is on the basis of the demonstrated competence and qualifications of Walker Sewell, LLP and the ability of Walker Sewell, LLP to continue to perform the professional legal services needed by the City for a fair and reasonable price. SECTION 4: The expenditure of funds as provided in the attached Second Amendment to Agreement for Professional Legal Services is hereby authorized, and the previous expenditures regarding this litigation are hereby ratified, confirmed and approved. SECTION 5: This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2009. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: 2 EXHIBIT 2 THE STATE OF TEXAS § COUNTY OF DENTON § SECOND AMENDMENT TO AGREEMENT FOR PROFESSIONAL LEGAL SERVICES THIS SECOND AMENDMENT to that certain "Agreement for Professional Legal Services (hereafter the "Agreement") in the original not-to-exceed amount of $90,000 was approved by the Public Utilities Board and thereafter approved within the delegated authority of the City of Denton City Manager; and said Agreement was heretofore entered into by and between the City of Denton, Texas, a Texas Municipal Corporation with its offices at 215 East McKinney Street, Denton, Texas 76201 (hereafter referred to as "CITY"); and the law firm of Walker Sewell, LLP., whose principal office is at 901 Main Street, Suite 5000, Dallas, Texas (hereafter referred to as the "CONSULTANT") on the September 22, 2008, to be ratified and effective from and after September 17, 2008; and CITY and CONSULTANT further amended said Agreement for the first time for the purpose of providing additional funds to add to the previous approved Agreement for further legal services to be performed by CONSULTANT regarding the same engagements wherein CONSULTANT is representing the City, regarding numerous contested cases and hearings brought by the City of Bryan, Texas and the Texas Municipal Power Agency ("TWA") in several counties, involving the three Northern Cities (the Cities of Denton, Garland and Greenville) as Defendants and Intervenors; and these matters have steadily progressed, resulting in two dismissals of the Northern Cities and a completed trial of the bond validation case; which First Amendment to Agreement for Legal Services (hereafter "First Amendment") was in the further not-to-exceed amount of $105,000, and which Agreement was approved by the City Council on March 3, 2009, by Ordinance No. 2009-058; totaling a not to exceed aggregate of $195,000; and It is now necessary and appropriate that CONSULTANT continue representation of the City of Denton through the entry of judgment and beyond regarding the remaining pending cases that involve Denton, the City of Bryan, Texas and TMPA, that are now pending, as well as for any potential appeal that may be made by the City of Bryan, Texas or TMPA. City and CONSULTANT estimate at this time that this case will probably require at least $200,000 in additional funds to be added to the existing not-to- exceed amount authorized of $195,000 First Amended Agreement, by this Second Amendment to Agreement for Professional Legal Services" (hereafter "Second Amendment") thereby constituting an aggregate amount of not-to-exceed $395,000; and which Second Amendment was approved by the Public Utilities Board on the 18th day of May, 2009 by a vote of 6-0; and. NOW THEREFORE, the CITY and CONSULTANT (hereafter collectively referred to as the "Parties"), in consideration of their mutual promises and covenants, as well as for other good and valuable considerations, do hereby AGREE to the following Second Amendment, which amends the following terms and conditions of the said Agreement, to wit: 1 I. The provisions of Paragraph C., Third Paragraph of the Agreement are hereby amended and in all things deleted, with the following language to be the new provisions of Paragraph C, Third Paragraph of the Agreement, which is hereby substituted, as follows, to wit: "CONSULTANT estimates, as it is presently unknown about the extent of the further involvement of the City in this TMPA/Bryan-related multi-party litigation, and City agrees that all charges for the legal services hereunder, including reasonable out-of- pocket expenses shall not exceed the additional amount of $200,000 authorized in this Second Amendment for Professional Legal Services, and thereby a total amount of not- to-exceed $395,000 in the aggregate is authorized. The City Manager is hereby authorized to expend the funds." II. The Parties hereto agree, that except as specifically provided for by this Second Amendment, that all of the terms, covenants, conditions, agreements, rights, responsibilities, and obligations of the Parties, set forth in both the Agreement and First Amendment shall be and will remain in full force and effect. IN WITNESS WHEREOF, the City of Denton, Texas and the law firm of Walker Sewell, LLP., have each executed this Second Amendment to Agreement for Professional Legal Services in four (4) original counterparts, by and through their respective duly authorized representatives and officials on this the day of , 2009; but to be effective, ratified and confirmed from and after the 11th day of February, 2009. "CITY" CITY OF DENTON, TEXAS A Texas Municipal Corporation By: GEORGE C. CAMPBELL CITY MANAGER ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY t 1~ q C_ D By: U 2 "CONSULTANT" WALKER SEWELL LLP Texas Limited Liability Partnership By: p 1~1MES W. WALKER, Partner t 3 EXHIBIT 3 1 DRAFT MINUTES 2 PUBLIC UTILITIES BOARD 3 May 18, 2009 4 5 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was 6 present, the Chair of the Public Utilities Board thereafter convened into a Closed Meeting on 7 Monday, May 18, 2009 at 9:00 a.m. in the Service Center Training Room, City of Denton 8 Service Center, 901-A Texas Street, Denton, Texas. 9 10 Present: Chair Dick Smith, Bill Cheek, Phil Gallivan, John Baines, Randy Robinson and 11 Bill Grubbs 12 13 Ex Officio Members: 14 George C. Campbell, City Manager 15 Howard Martin, ACM Utilities 16 17 OPEN MEETING: 18 19 CONSENT AGENDA: 20 The Public Utilities Board has received background information, staff's recommendations, and 21 has had an opportunity to raise questions regarding these items prior to consideration. 22 23 2) Consider recommending approval of a Second Amendment to Professional Services 24 Agreement by and between the City and the law firm of Walker Sewell, LLC, Dallas, Texas 25 regarding the Texas Municipal Power Agency-related litigation, in the further not-to-exceed 26 amount of $200,000; totaling a not-to-exceed amount of $395,000. 27 28 Board Member Phil Gallivan moved to approve Item 2, with a second from Board member 29 Bill Cheek. The motion was approved by a 5-0 vote as Board Member John Baines was 30 absent from the room when the vote was taken. 31 32 The meeting was adjourned by consensus at 11:58 a.m. 33 34 AGENDA INFORMATION SHEET AGENDA DATE: June 2, 2009 DEPARTMENT: Utilities Engineering ACM: Howard Martin, Utilities 349-8232 SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, abandoning and vacating those certain street right-of-way tracts of land being approximately 0.037 acre and 0.037 acre, respectively, and being portions of the right-of-way of Pacific Street, in the W. Loving Survey Abstract Number 759 in the City of Denton, Denton County, Texas; accepting a public access, fire lane and public utility easement grant; providing for quit claim assignments of the Pacific Street right-of-way tracts; and providing an effective date. BACKGROUND The City has received a request from the landowners adjoining a section of the Pacific Street to abandon its municipal street interests in exchange for a concurrent grant by those adjoining landowners of a public access, fire lane and public utility easement, which overlays the subject abandonment tracts. The proposed easement will serve as a privately maintained driveway for the surrounding properties, yet still provide all of the elements required for the Access 1st Capital Bank development initiative, namely emergency services access and joint use access driveway connection to Carroll Boulevard. Carroll-Eagle Partners, Ltd., underlying landowner of the Access 1st Capital Bank property, will perpetually maintain the pavement of the proposed access driveway improvements. Existing Pacific Street right-of-way ranges from 24 to 20 feet in width, was established circa 1910, and lends itself as an anomaly, given current street standards. Essentially, if approved, there will be enhanced access for the surrounding properties, the land rights required for the operation and maintenance of utilities will be preserved, and there will be no public resources required for future maintenance of the contemplated paving improvements. RECOMMENDATION Staff recommends approval of the ordinance. PRIOR ACTION/REVIEW (Council, Boards, Commissions) Development Review Committee - December 23, 2008 FISCAL INFORMATION None EXHIBITS 1. Ordinance 2. Location Map 3. Site Map Respectfully submitted, Jimmy D. Coulter Director of Water/Wastewater Water Administration Prepared by Paul Williamson Real Estate Manager EXHIBIT 1 scour documentslordinances1691pacifc street - excess row partial abandon ord.doc ORDINANCE NO. 2009- AN ORDINANCE OF THE CITY OF DENTON, TEXAS, ABANDONING AND VACATING THOSE CERTAIN STREET RIGHT-OF-WAY TRACTS OF LAND BEING APPROXIMATELY 0.037 ACRE AND 0.037 ACRE, RESPECTIVELY, AND BEING PORTIONS OF THE RIGHT-OF-WAY OF PACIFIC STREET, IN THE W. LOVING SURVEY ABSTRACT NUMBER 759 IN THE CITY OF DENTON, DENTON COUNTY, TEXAS; ACCEPTING A PUBLIC ACCESS, FIRE LANE AND PUBLIC UTILITY EASEMENT GRANT; PROVIDING FOR QUIT CLAIM ASSIGNMENTS OF THE PACIFIC STREET RIGHT-OF-WAY TRACTS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Denton has received a request from the adjoining landowners, DNB Investments, Ltd. ("DNB"), a Texas limited partnership and Carroll- Eagle Partners, Ltd. ("CEP"), a Texas limited partnership, to vacate and abandon certain street right-of-way tracts; and, WHEREAS, staff has reviewed the requested abandonment and has recommended approval; and WHEREAS, the City Council of the City of Denton, Texas has determined that the subject street right-of-way tracts are excess property, being no longer needed for public use as municipal street right-of-way; and WHEREAS, the subject Pacific Street right-of-way tracts are further described and depicted (i) as 0.037 acre "West Tract" in Exhibit DNB-B-1 and DNB-B-2; and (ii) as 0.037 acre "East Tract" in Exhibit CEP-B-1 and CEP-B-2, all being attached hereto and made a part hereof for all purposes ("Pacific Street ROW"); and WHEREAS, in consideration for the abandonment of the Pacific Street ROW, DNB and CEP are granting to the City of Denton, effective as of the date of abandonment of the Pacific Street ROW, an easement for public access, fire lane and public utility purposes over, upon, in, under and across the Pacific Street ROW lands and other lands as more particularly described in the Easement, as defined below; and WHEREAS, the fair market value of the subject street right-of-way tracts comprising the Pacific Street ROW has been determined and is being received by the granting of the "Public Access, Fire Lane and Utility Easement", attached hereto as Exhibit C and made a part hereof for all purposes (the "Easement"), in exchange for the abandonment of Pacific Street ROW, as required by section 272.001 of the Local Government Code, and Denton Texas Municipal Code Ch. 2, Art. IV (2006); NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: Page 1 sAour documentslordinances1091pacific street - excess row partial abandon ord.doc SECTION 1. The findings and recitations contained in the preamble of this ordinance are incorporated herein by reference. SECTION 2. The portions of Pacific Street, described herein as the Pacific Street ROW and further described and depicted in (i) Exhibits DNB-B-1 and DNB-B-2; and (ii) Exhibits CEP-B-1 and CEP-B-2, attached hereto, are vacated and permanently abandoned as a municipal street, effective upon and concurrent with acceptance by the City of Denton of the Easement. SECTION 3. The Easement attached hereto and made a part of the ordinance for all purposes is hereby approved and accepted. SECTION 4. The fee ownership. of the City to the Pacific Street ROW tracts, if any, is hereby released by the City of Denton and will vest in the owners of the fee estate of the adjacent lands, to the extent provided by law. SECTION 5. The City Manager, or his designee, is hereby authorized to execute on behalf of the City, quit claim assignments and or release instruments for the Pacific Street ROW tracts. SECTION 6. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this day of . 2009. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: Page 2 Attachment to Ordinance i FIELD NOTM WEST TRACT 0.037 ACRE SE.NG all that certain fit, tree, or parc*d of land situate! in the William Loving Survey Abstract Number 759 in the City of Denton, Denton County, Tee, being a part of ex"M Pacfic Street rat-opway, and being more particularly described as fellows: SEGWVING at an Iran rod found for comer, said paint being the southeast comer of Lot 2, Block A of Carroll Park Pace Two, an addition to the City of Denton, Denton County, Texas according to the plat thereof recorded in Cabinet Y, Page 546, Flat Records, Denton County, Texas, THENCE N 00' 35' 41' W, 159.96 feet to with the east line of said Lot 2 to a point for corner, THENCE N 89° 24' 19" E. 10.13 fleet to a point for comer, said point being the narttrwest caner of Lot 1, Sioc k A, of Access First Capital Action, an addition to the City of Denton, Denton County, Texas acccarding to the Plat thereof recorded In Cabinet Y, Page 545, Plat Records, Denton County, Texas, THENCE S 00° 35' 41' E, 160.02 feet with the west One of said Access First Capital Addition to a point for come; THENCE 5 W 46' 540 W. 9.76 feet to the PLACE OF 13EGMINO and containing 0.037 we of land. Attachment to Ordinance maw flNg$ 2 WAN STARR TO f • t DA\gD E. HEASLEY AND ` WIFE i(ATHLEEN HEASLEY Y(X 1323. PG. 846 ! f a.R.D.C.T. I 1 t LOT.? &OCK A ! ' I CARh'a PARK i t PLACE 7W I j CA6t Y• PG. 545 I ' PR.11.CT i f I I{ i S L 1, BLOCK A e 1 ACCESS iRS t cApiTAL ADL nav CA8 Y. PC 545 a ~ LEST TRACT BEING 0.037 ACRE- IN l ~,J THE WM. L 0 VING SURVEY A - 759 1 CITY OF DE-NTON ! }r w- _ "DENTON COUNTY, U ' 4 TEXAS .41- F:W I t 42 7-33 O AND1~It DE.' TON, 77XAS 76207 (940) 3824016 SURVEYORS, .PLC FAX (940) 387-9784 l)" il'ls' 1JY- 8TH MULE- 1 ~f' 1),47E. It Noi-E-MlER: Jr" "11 NO.. osm Attachment to Ordinance --.(t{,BI't' CEp RELD NOTES EAST TRACT 0.037 ACRE BEING all that certain lot, 0ac or parcel of land situated In the William Loving Survey Abstract Number 759 in the City of Denton, Denton County, Texas, being a part of Lot 1, Block A. of Access First Capital Addition, an addition to the City of Denton, Denton County, Texas according to the plot dwsof recorded in Cabinet Y, Page W, Plat Records, Denton County, Texas, and being more particularly described as follows: BEGINNING at an iron rod found for -comer, said point being the southwest corner of that certain trot of land conveyed by deed tom Vivian Starr to David E. Heasley and wife, Kathleen Heasley recorded in Volume 1325, Page 846, Real Property Records, Denton County, Texas; THENCE S 00° 47' bT E, 69.13 feet to a point for comer, THENCE S Q(° 3T 4r E, 69.77 feet to a point for comer, THENCE S 00° 06' W E, 59.13 feet to a point for confer; THENCE S 89° 46' 5V W. 9.92 feat to a point for comer; THENCE N 00° 36410 W, 160.02 feet to a point for comer; THENCE N 89° 31' 54" E. 9.81 feet to the PLACE OF BEGINNING and containing 0.037 we of sand, Attachment to Ordinance--+ 'AMAN STARR TO WAD E, HEASLEY AND WE KATHLEEN HEASLEY i VOL. IM, PG. 846 { R.P.R.D.C.T. N 89'3J'S,4' E r i i I t OB 1 1 ( b F_Cr 2. &OCK A i G4RROtL PARK i PLA!r M i CA& Y. PC 546 i PR.DGT• a i ~ k 1 ~ . ~ 1 so r LOT 1, BLOCK A F j ACCESS FIRST CAPITAL ADWI7fJVM 1 i CAB Y PG. 5475 P.R.D.C. T. EXHIBIT „A ii ' EAST TRACT BEING o O37 ACRE IN THE W L O VING SURVEY A -759 Q CITY OF DENTON W t DEN TON. COUNTY, TEXAS s owl- * r 2r.lr Q.44 W s A;4 -4 1-35'N RTH t-4 1 ~D~'~1A DAN SON . EX~! ~~6107 uR ~EYORS, LLC: FAX (940) 387-9784 DRAW-181 8711 IM No. Attachment to Ordinance-Exhibit C NOTICE OF CONFIDENTIALLY RIGHTS. IF YOU AREA NATURAL. PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. PUBLIC ACCESS, FIRE LANE AND UT#LITY EASEMENT THE STATE OF TEXAS ,COUNT! OF DENTQN KNOW ALL MEN BY THESE PRESENTS: This Pubic Access Fire Lane and Witty Easement ("Easement) is made effective as of the 'Ef ectiv& Data" hereof (as such term Is defined herein), by and beb en DNB Investments, Ltd., a Texas limited partnership with a principal business address of 525 South Carroll Boulevard, Suite 100, Denton, Tepees 76201 ("DNW), and Carroll-Eagle Partners, Ltd., a Texas limited partnership with a principal business address of 300 Nora, Elm Street Suite 10i, Denton, Tegaas 76201 (hereinafter, 'CEP') (DNB and CEP each being a Grantor hereunder), and the City of Denton, Texas, a political subdivision of the State of Texas, with a principal office addrss of 215 East Mcf(inney Street Denton, Texas 76201 (the wity), as the Grantee (herelneW, CEP, DNB, and the City may be referred to individually as a'Party,' or coliecfwty as 'the Parties"). Rg RALS WHEREAS, DNB is the owner or gist certain 0.32:H acre tract or parcel of land meted in the WILLIAM LOVING SURVEY, ABSTRACT NO. 759, In the CrrY OF [ eim, DF.r mN CouNff, Trams, bed the some trac f or parcel of land reflected in a Corrxfian Deed dated November 10, 2003, effieclive as of September 19, 2003, from the City Of Denton, as the grantor thereunder, to Dais Irwin and Craig Irwin, collecUvety as the Gran, said Correction Deed filed for record on November 17, 2003 and recorded under County Clerks' File No. 2003-188966 of the Real Property Records of Denton County, Texas (the Irwin Trace and Page 1 of 18 Pages 1 WHEREAS, CEP is the owner of those certain two tracts or parcels of land situated in the City of Edenton, Denton County, Texas, being identified as "TRACT I" and °TRACT II' each tract respectively being more particularly described in "EXHIBIT A" attached hereto and incorporated fully herein by reference thereto (hereinafter, both TRACT I and TRACT 11 are collectively referred to as the "Acsoess First Traci?'); and WHEREAS, situated within the City is a public right-of-way knom as P is SUeK a part of which traverses over and along a portion of the common boundary line existing between the Ades First Tract and the Irwin Tract (said part of said right-of- way hereinafter being referred to as the "Pacific Street ROW"); and WHEREAS, the Pacific Street ROW is approximately 2D-feet in width, ft ounterline of which runs south from the northernmost Northwest comer of said Access First Trail, along and adjacent with the northernmost west boundary line of said Access First Tract, for a distance of approximately 160 feet; and WHEREAS, the City has agreed to effectuate an abandonment of the Pacific Street ROW, whereupon, as a result thereof, all of the rights thereby abandoned by the City would immediately and aut xw0cally proportionately vest unto CEP and DNB, the. abutting properly owners; and WHEREAS, in consideration for abandonment of the Pacific Street ROW by the City, (a) DNB has agreed to grard to the City a public access, fire lane, and utility easement, said easement running over and acres that part of the Pacific Street ROW automatically vesting into DNB as a result of the City's abandonment as aforesaid, together with a portion of the Irwin Tract, and (b) CEP has similarly agreed to grant to the City a public access, fire lane, and utility easement, said easement running over and across that part of the Pacific Street ROW automatically vesting into CEP as a result of the City's abandonment as aforesaid, together with a portion of the Access First Tract, both grants being more fully described herein. Page 2 of 18 Pages i NOW, THEREFORE, in consideration of the foregoing recitals and the meal covenants and agreements contained herein and for otter good and valuable consideration, the r6ceipt and sufficiency of which is hereby acknowledged, the Parties hereto agree as foilows: EASEMENT 1. EASEMENT PROPERTIES. The rights granted trader this Easement apply to (a) the DNB Easement Property, and (b) the CEP Easement RWedY, each being respectively deWbed as follows: (a) The "DNB Easement Property' shall mean that certain tract of land comprised of those two certain contiguous parcels deml)ed herein as "DNB W and "DNB-B,' WY& DNB-A: Being an that certain 0.035-am tract of land situated in the Irwin Tract, and being mom PartitxdadY described in "EXHIBIT DNB-A-1,' together with a njap theree reflected in `EXHIBIT DN&A 2,' both exhibits being attachoad hereto and incorporated fully herein by reference them and (ii) DNB-B: Being all that c eftn 0.037-arse tract of t situated in the William Loving Survey, Abstract No. 759. in the City of Denton, Denton County, Texas; saki 0.037-ac ra tract bung that part of the Pacific Street ROW automatically vesting Into DNB as a result of the City's abandonment thereof, and being more particularly described in "EXHIBIT DNB-1-1," together with a map thereof retlected in "EXHIBIT DNB-8-2,' both exhibits being attached hereto and incorporated fully Wean by reference thereto (and being furdw kkmfftd therein as the Vest Tract"). Page 3 of 18 Pages .y i (b) The "CEP Easement Property" shall mean that certain tract of land comprised of those two certain contiguous parcels iderMed heroin as CEP A" and "CEPS." b>v t; CEPA- Being all that certain 0.01 awe trod of land situaW in the Access First Tract, and tieing more particularly described In "EXHIBIT CEP-A-1." together with a map #wed reflected In "ExHiBIT CEP-i-2," both whits being attached hereto and incorporated fully herein by reference thereto, and (ii) CEP-B: Being all that certain 0.037-axe tract of land skoted in the William Loving Survey, Abstract No. 799, In the City of Denton, Denton Courrtyy, Texas-, said 0.037-acre tract tieing that part of the Padfic Street ROW automatically vesting Into CEP as a result of the City's abandonment thereof. and being more particularly described in `EXHIBIT CEP-B-1," together with a map thereof reflected in "EXHIBIT CEP-8-2, both exhibits being ached hereto and incorporated fully herein by reference thereto (and being further identified twain as the "East Try} 2. WANT OF EASEMENTS. (a) DNB GRANT. In considerat;on of the sum of TEN AND NO1100 DOLLARS ($10.00) and other good and valuable considerations in hand paid by the Grantee herein named, the receipt and dory of which Is hereby acknowledged, DNB does hereby grant, bargain, sell, and convey unto the City an easement and right-of-way over, upon, in, under, and across the DNB Easement Property, subject to the terms hereof. (b) CEP GRANT. in consideration of the sum of TEN AND N01100 DOLLARS ($10.00) and other good and valuable considerations in hand Page 4 of 18 Pages paid by the Grantee herein named, the receipt and sufftdency of which is hereby aduwwledged, CEP does hereby grant bargain, sell, and convey unto the City an easement and right-of-way over, upon, In, udder, and across the CEP Easement Property, subject to the terms hereof: (c) Granter binds Grantor's and Grantors successors and assigns to warrant and defend all and singular the property interests herein conveyed to Grantee against every person 0wornsoever lawfully claiming or to darn the same or any part thereof, by, through, or wxW Grantor, but not otherwise. 4. EFFECTIVE DATE OF GRANTS; ALL GRANTS SUBJECT TO SATISFACTION OF CONCURRENT COMMON BY GRANTEE. All grants and conveyances to the City of all rights under this Easement shall be effective only upon, and coincident with, the effecM date of that certain ordinance du"assed and approved by the City Council of the City of Denton, Texas, providing far the conclusive and final abandonment of all rights of the City In and to the Pacific Street ROW (the 'Effective Furffwwra, the City hereby acknowledges, covenants aril agrees that all rights and interests granted under this Easement shall become ~ve only upon, and coincident with, the etive date of the passage and appmal by the City Council of the City of Denton, Texas, of an ordnance memorializing the formal abandonment of all rights of the City in and to the Pacific Street ROW. 5. PUS OF EASEWNTS. Each easement hereby grarded is for the purpose of (a) providing public-aocess to the general public (Including vehicular and pedestrian passage by DNB and its permitted users over the CEP Property); and (b) providing unirhMed kam and egress to Grantee, xW its aul xxked officers and dasigrees, over, across, and through the DIMS Easement Property and the CEP Easement Property, for the purpose of (I) providing public safety services, police, fire, and medical servbm controlling and regulating tradfrc, Page 5 of 18 Pages enforcing the penal code and city ordinances, and enforcing trades regulations and controls; and {ii) erecting, constructing, installing, replacing, repairing, operating, using, inspecting, reconslnKft, modifying, removing and nWnWning any and all public utilities, togeOw with all lines, pipes, conduits and other equipment, Improvements and appuiteranoes used in the supply and provision of public utTities. The public access, lone, and utility easement shall be open to the public, fine and police units, and emergency services at all tires. 6. ADDITIONAL TERMS AND CONDITIONS. (Hereinafter, for all purposes of this Section B. the DNB Eft Prouty and the CEP Easement Property shall be cole*My referred to as the °Easement Pro x*.l (a) The duration of the rights granted under this Easement are papetusl. (b) Any recitals in this agreement are represented by the Parties to be amrate, and cwMtute a part of the suixtentive agreement. (c) DNB and CEP both further adaicerledge and agree that the City, in consideration of the benefits above set out, will remove from the DNB Easement Property mid the CEP Easement Property, such fences, buildings, and other obstructions as may now be found thereon. (d) CEP does hereby corvermnt and agree that it shall construe upon the Easement Property a hard paving surface. CEP further covenants and agrees that, after completion of the construction of the paving surface over. the Easement Property, it shall be responsible for the costs and expenses 1br maintenance, operation, and repair of the Easement Property, and compliance with all laws, regulars and ordinances affecting the Easement Property. The design, construction, maintenance, wW repair of wing on and over the Easement Property stall be the sole responsibility of CEP. Page 6 of IS Pages (e) In addition, both DNB and CEP hereby grant and convey to the City, for use as a temporary consWction and maintenance easerri t only, as much of the surface of each grantor's respective property that is adjacent to the Easement Property as may be reasonably necessary for the purpose of constructing, reconstructing, installing, repairing, and maintaining public utilities, in, along, upon, and across said Easement Property, of ftx the pose of making additions to, improvements on and repairs to said public utility facilities or any part thereof. (f) No buildings, fames, trees, shrubs, or otter improvements or grOwths, Wher than paving surface, shall be constructed, record, or placed upon, over or across the easements granted herein. {g) CEP further covenants and agrees that it shall post and maintain appropriate signs and markings in ononspicwus places along such fire lanes, stating "Fire Lane, No Parkir1". The Fire Chief for the City or his duly authorized representative is hereby authorized to cause such access and fire lane to be maintained free and unobstructed at all times for Fire Department use. (h) This grant and the covenants made herein are binding upon and shag inure to the benefit of the Grantee and the Grantors hereunder, and their heirs, successors, and assigns, and upon all future owners of the Access First Tract, the Irwin Tract, or any part thereof, as applicable. GRANTOR CEP CARROLL-EAGLE PARTNERS, LTD., a Texas limitsd partnership By: Trilogy Management, L.L.C., a Texas Imbd i'obi ft company. General Parb w By. ger J. V. STRAR&, Gm Page 7 of 18 Pages i GRANTOR: DNB DNB INVESTMENTS, LTD., a Tom limped partnership By: Irwin Properties, Inc., a Texas corporation, General Partner f GRAIL . IRWIN, ro 4;0n ident GRANTEE: The City The City of Denton Texas, a political subdivision of the State of Texas Accepted this day of 200_ for the City of Denton, Texas {Resoluflon No. _ _ _ Paul Williamson, Real Estate Manager The City of DOOM Texas STATE OF TEXAS § COUNTY OF DENTON § Before me. the underslied atmo*, on this clay personally appeared J. V. STRANGE, Manager of Trilogy Management, L.L.C., a Texas limited liability company, General Partner of CARROLL-EAGLE PARTNERS, LTD., a Tee limited Partnership. and Personally known to me or proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the fonegoing Instrument, and acluxWedged to me that he executed the same for the des and consideration therein expressed, in his duN-authored capacity ftweof, for and on behalf of said limited partnership. Given under my hand and seal of ol~ce this , day of 2DO9. MN L CAIN Pubrk STANotary p TLW Notary bl , State of Tfts c+rcaRm. Ek "W-27 2012 Page 8 of 18 Pages Y_ STATE OF TEXAS § i COUNTY OF DENTON § Bekm me, the undersigrml authority, on this day personally appeared CRAIG C. IRWIN, Vice-President of Irwin Properties, Ina, a Texas corporation, General Partner of DNS INVESTMENTS, LTD., a Texas limited partnership, and personally known to me or prayed to me on the basis of satisfactory evidenoe to be the person whose name is subscribed to the foregoing instrument, and adumwledged to me that he executed the serne for the purposes and consideration therm expressed, in his duly-authorized capacity thereof, for and on behalf of said limited gip. Given under my hand and seal of oftioe this _L day of 2009. Notary Publ of Texas wNcamm~on 20,1'012 UPON NSCOMNGrtEMRN OF11CO M irrf OF DElUM UTIMMS EWIMMU10 DWARtTIAW ~'1~TEXAS$TTtEET Di~rraNr ri=ac+~T~s A'rTM: PAUL VAWANIM Page 9 of 18 gages EXHIBIT A i I TRACTI BEING Lot 1, Block A, of Access First Capital Addition, an addition to the City of Denton, Denton County, Texas according to the plat thereof recorded in Cabinet Y, Page 545, Plat Records, Denton County, Texas. FIELD NOTES TRACT U 0.232 ACRE BEING all that certain lot, tract, or parcel of land situated in ilia Wiliam Loving Survey Abstract Number 759 in the City of Denton, Denton County, Texas, being all that c erWn tract of land conveyed by deed from Carlos Meze to 518 Acme Ltd. recorded under Document Number 2008-52615, Real Property Records, Demon County, Texas, and being and beinqjwe particularly described as follows; BEGINNING an Iron rod found for comer the north Ina of Eagle Drive, a public roadway havi a viable width right-of-vM, said point being the most southerly sou t of Lot 1, Block A, of Access First Capital Addition, an addition to the City of Denton, Denton County, Texas according to do plat thered recorded in Cabinet Y, Page 545, flat Recce, Denton County, Texas; THENCE N 00° aU' 50'" W, 52.31 feet with an east fine of said First Access capes Addition to an Iron rod fund for comer at an inner etl of said Access First Cap W Addition. THENCE N 899 58' 39" E, pass at 143.27 feet an Iron rod found for west line of Myrtle Street, a public roadway having a variable right-of-coy, a total di *um of 168.1.0 feet with a south Ins of saki Access First capital Addition to a P. K. nail found for comet said Myrtle Street THENCE S 00° 00' 19" W, 60.05 feet with said Myrtle Street to a P. K. trail found for comer in said Eagle D&e; THENCE N 890 51Y 34" W, 168.08 feet with said Eagle Drive to an Iron nod faun for comer, THENCE N 00" 00' 50" W, 7.66 feet to the PLACE OF BEGINNING and containing 0232 acre of kind, Page 10 of 18 Pages FIELD NaTES 13 035 ACRE BEING all thrat certain Iot, tract, or parcel of land situated in the Marn Loving Srmrey Abstract Number 759 in the City of Denton, Denton County, Texas, being a part of that certain mart of land conveyed by deed from the City of Denton to Dale Irwin and Cram Irwin recorded under Document Number 200.3-188966, Real Property Records, Denton County, Texas, and being more particularly described as fellows: BEGINNING at an iron rod found far comer in the sad line of Carroll. Boulevard, a public roadway having a variable width right-ot"way, said point being the most westerly norf t comer of Lot 1, Block A. of Access Fast Capital Addition, an addition to the City of Denton, Denton County, Texas according to the plat thereof recorded in Cabinet Y, Page 545, Plat Records, Denton County, Texas. THENCE along the arc of a curve to the left having a central angle of 00° 39' 60', a radius of 1985.62 feet, an arc length of 23.00 feet, whose chord beers N 040 58'5r W, 23.00 feet veth said east line of Carroll Boulevard to a point for comer; THENCE EAST, 22.16 feet to a point for comer, a THENCE along the are of a curve to the left having a central angle of 90° 35' 41". radius of 25.00 feet, an arc length of 38.53 feet, whose dxwd bears N 440 42' 10" E, 35.54 feet to a point for corner; THENCE N 00° 35'41 " W,111.94 feat to a point for corrmw. THENCE N 89° 24' 19- E, 1.87 foot to a point for corner; THENCE S 00" 43'37* E, 159.96 feet to a point for comer in a north line of said Access First Capital Addition; THENCE S 89° 46' 54" W, 47.90 feet with said north line of said Access First Capital Addition to the PLACE OF BEGINNING and containing 0.035 acre of land. Page 11 of 18 Pages VIVIM STARK ©HIBff ©NB A 2 ; TO DAVID E. HEASLEY AND W KATHLEEN HEASLEY VOL 1= PG. 846 R.P.R.D.GT. N 88#9` f ' - t 'x20' RUE. 11 112' ACCESS FONT aTr OF DfhqW Pm PLAT DALE AND CRAIG NON Lor 1, MOCK A om ~~--rwe s I ACCESS' FWr COMAL A097RW RP.R. LaE 12.D' . . . CAB. Y PG. 545 l P.17AC T. 1 cbmw , "fo* a - - h~ 1 ! I $ I ACCESS EASEMENT BEING a 435 s aa4 . _ ACRE IN PQ ' ~ i THE W11. LaurNa ] SURVEY A--759 L? 31a Aa'E. Lm. Cl TY OF DENTON om fzaos -ess r R.P.R D.C.T. I DEN TON COUNTY, TEXAS DLAWN,, ff" 76207 (40) 382..40x6 S'tlR VEYORS, LLC. FAX(940) 387-9784 Way. Dili =W. 1" 26' DATA 1 2m 1OBno.. EXHIBfT DN,~„$~ REL.D NOTES WEST TRACT 0.037 ACRE BEING all that certain tram, or parcel of land sited in the William Loving Survey Abstract Number 759 in the City of Denton, Denton County, Texas, being a part of existing Pacfic Street right-of-way, and being more particularly described as fioliows: BEGINNING at an iron rod found for comer, said point being the southeast corner of Lot 2, Bhx k A of Carroll Paris Piaae Two, an addition to the City of Denton, Denton County, Texas ac ordrng to the plat thereof recorded in Carnet Y, Page 546, Plat Records, Denton County, .Texas; THENCE N 00° 35' 41" W. 159.96 fit to witty the east fine of said Lot 2 to a point for corner, THENCE N $9° 24' 19" E, 10.13 feet to a point for comer, said point being the nortrrwest comer of Lot 1, Block A, orf Mom First Capital Adcrdlon, an addition to the City of Denton, Denton County, Texas according to the plat thenof recorded in Cabinet Y, Page 545, Plat Records, Denton County, Texas; THENCE S 00° 35' 41' E, 160.02 feet with the west line of said Access First Capital Addition to a point for corer; THENCE S 89° 46' 54" W, 8.76 feet to the PLACE OF BEGINNING and oontaining 0.037 we of land. Page 13 of IS Pages ~ri _ EX=rr ON04EI-2 YIVlAN STARR ' TO I DAVEO E. HEwASLEY AND • I MATE KATHLEEN HE:ASLEY ' VOL 1325, PG. 846 R P.R_D.C.T. 1 1 N °924 19 • r I 'i ~i ' I ` t s1 1 LOT .Z 8,OCK A i i 4ARROct PARK PLAa T90 CAE r PC+ 545 P R. D.C T. I I ! i 1 LOT 1, CLOCK A 1 ACMSS F.7tsr CAPITAL ADDilxw CA& Y, PO 545 + P.R.D.G T. ~i ~l ! WES T TRAC T ! BEING 0.037 ~ .i ACRE IN W THE WSW. L D VING SURVEY A--- 759 • I 1 CITY OF DENTON OEN TON COUNTY SE ti ' TEXA S F.+ 9 3 (i I- O tANDMARAT DEN'TON, TEXAS 76207 (940) 382-4016 STIR V.EYORS, LLC FAX (940) 387-9784 ftRAR h BY• 877# SCALE- 1 "=Y,' DATE. t l NCN'E+LdB£R lfAOl~ .1a8 N(> R86Cb ~-_HIt3I'1' CEP»A 7 FIELD NCM ACCESS E"EI MT 0.019 ACRE BEING all that certain K tract, or parcel of land situated in the William Loving Survey Abstnnt Number 759 in the City of Denton, Denton County, Texas, being a part of Lot 1, Block A, of Access First Capital Addition, an addition to the City of Deng, Denton County, Texas according to the pit thereof recorded in Cabinet Y, Page 545, Plat Records, Denton County, Texas, and being more par6culady described as foilows: BEGINNING at an iron rod found for comer, said point being the sou,rlhwest corrrer of certain tract of land convoyed by deed from Vivian Starr to David E. Heasley and wife, I(Athleen Heasley recorded In Volume 1325, Page 846, Reel Properly Records, Denton County, Texas; THENCE N 87° 20' 33" E, 2.19 feet with the south Brie of said Heasley bsct to a point for comer, . . THENCE S 00° W 41' E,167.51 fleet to a point for corner; THENCE WEST. 57.65 feet to a point far comer, THENCE along the are of a curve to the left hang a central angle of 33° 33' 27. a radius of 2039 feet, an we length of 11.94 feet, whose chord bears 5 73° 03' 36" W, 11.77 feet to a paint for comer In the east One of Carroll Boulevard. a public roadway having a variable width right-af way; THENCE along the we of a curve to the left halving a central angle of 00° 18' 16", a radius of 1985.62 feet; an arc length of 10.55 feet, whose chord bens N 04° 29' 55" W, 10.55 feet with sold east line of Carroll Boulevard to an Iraq rod bind for corner, said point being the southwest comer of that certain tract of land conveyed by deed from the City of Donlon to Dale trwin and Craig Irwin recorded under Doounnent Number 2003- 188966. Real Property Records, Denton County, Texas, THENCE N 89° 46' 540 E, 67.59 feet with the south line of said Irwin tract to an iron rod found for comer in the oust line of an access easement shown. on the plat of said Access First Capital Addition; THENCE N 00° 06' 38' W, 21.17 feet with said east lure of said access easement to a point for comer THENCE N 00° 3T 47" W, 69.77 feet with said east line of sold access easement to a point for comer, THENCE N OW 47'6V W, 69.13 feet with said oust line of said access easomed to the PLACE OF BEGOINING and containing 0.019 acre or land, pap 15 Of 18 Pages E MINT t:EP~l,2 WAN S NiR DAVID E. NEASLEY AND WIFE KAIHLEEN HEASLEY VOL 13M PG W R.P.R.D.GT PO$ N $7ZD',33" E PAM 1 , E 1 I ' rr AE C EA.r PLAT My OF vavm ro 0" MW AAV CRAIG piW ' LOT f, BLOC A DOGR.PJE= (~}zoi r Acmes msr CAIim Aw1i9w CAS Y, Pr. &5 E s 1 f , 7 17 ! 3 ACCESS EA SEMEN T F - 1 x BEING 0.019 ACRE W IIEST 5700- a ~ TIME VYhI. LOWNG SURVEY A 759 V eft rr CITY OF DEN TON =02UP)r w DENTON COUN TY, ' TEXAS 4 DE MN,, TEXAS 76207 (940) 3824016 ,S YEYORiS, LLC. FAX (940) 387-9784 -am ZWAWNBY .BTU mt7.& x~w DATA gAUGIm "'m EMIBilT CEP- A FIELD NOTES EAST TRACT OA37 ACME BEING all that certain lot, tract, or parcel of land situated in the Wiliam Loving Survey Abstract Number 758 in the City of Dent, Mart County, Texas, being a part of Lot 1, Block A,4 of Access !rust Capital Addition, an addiffon to the City of Denton, Denton County, Texas aocordmg to the plot fheneof regarded in Cabinet Y, Page 545, Plat Records, Denton County, Texas, and being more particularly described as failows: BEGINNING at an Iran rod found for comer, said point being the soufFnvest comer of that certain tract of land conveyed by deed from Vivian Starr to David E. Heasley and wife, Kad*wn Heasley recorded in Volume 1325, Page $46, Real Property Records. Denton County, Texas; THENCE S 00° 47' S8" E, 68.13 feet to a pant lbr corner; THENCE S 00° 37' 4T E, 69.77 feet to a point for oomer; THENCE S 00' 06' W E, 69.13 feet to a point for corner, THENCE S 8V 48' 54" W, 9.92 feet to a point far comer; THENCE N 00° 35'41' W, 16042 feet to a point for oomsr; THENCE N 89* 31' 6V E, 9.81 feet to the PLACE OF BEGINNING and containing 0.037 acre of land, Page 17 of 18 Pages • r uHlW MAU ` AVIAN STARR t TO SAW E. HEASLEY AND ' 1MFE KATHLEEN HEASLEY ` VOL. 1325, PG. 1946 yC R.P,R.D.G,T. pl,. N 8971'54' 6, j I f I ~ f } I ~ t t_OT A &OCK A ~ , +u CARROLL PARK E I a S P<AC'E TW I ua i CAB Y• PCB. 546 P.0 C- T. o E c I # I .4 i LOT it, BLOCK ACCESS PRsr.CAP1TAL ADfJT9W CAB. Y, PG. 545 P.R.D. C. T. EXH01 T "A " . EAST. TRACE"' f BEING 0 037 s z ACRE 1N THE W. L O VINE SURVEY A 759 Q CITY OF DEN TON DEN TON COUNTY, TEXAS • ~ s ovs o-V' >r ~ a AJ R s 5 ~g92 4~ w r, j. 42 135 NTH ~4 11~1]~.~A DEN~o j ~8Q7azo7 ,SUR I~EYORS, LLB: FAX (940) 38 7 9784 EXHIBIT 2 z 1 L OAK S D OA ao Z Court co ORY House w HICKORY J J CARROLL Ir El COURTS WALNUT C/) LL V) MULBERRY Fl MUL ERRY N SYCAMORE m Q z STROUD U ry O J w m E. P 0 PRAIRIE E Q:~ Q =WARREN U w I G H L A N D (n HIGHLAN w LL- J ~ C ~v l MAP E w °m 00 I.0.0.F. O Q J w 0 z 0 CEMETERY 1 U ° m - 1 ' ~ ° III m Q EAGLE m A a s m w Location f Subject ea o ~ -U COLLINS CO LINS S o Q ~S m D z -1 0 z > m w ~ ~ z III -i v zo SMITH Location Map Pacific Street - Partial ROW Abandon EXHIBIT 3 a~ a~ U) U VIVIAN STARR RFMP. LTD. I i _ TO DAVID E. HEASLEY AND CAMILA MARTINEZ U WIFE KATHLEEN HEASLEY DOC. 2005-94711 U VOL 1325, PG. 846 N 054'17" E R.P.R.D.C.T. ' IZ R.P.R.D.C.T 12.82' .f.R 5 N 9;314' E LR. ' 9.8' f N 87'20'33 E 179.34' ' 0 CITY OF~DENTON Fj I 4~~ DALE IRON AND I ~I Nt7 0"-O.o" W .E. EASM'T CRAIG 1RWN j 8 Pub I c Access x20' P.U.E. DOC. 0003-188966w R.P.R.D.C. Z v 12' ACCESS ; 1 12.0' ACCESS EASM'T & P.U.E. Fire Lane, & ' EASM'T&P.U.E. Utility Esmt ,BY SEPARATE INSTRUMENT j W I I 3!' ACCESS & P.U.E. I ' I EASEMENT I I--------- I~ BY SEPARATE Q INSTRUMENT 1 r - - - - - - - - - ' c I ' u Pacific Street I F.1.A 89'4534 R Abandonment LOT 1-A 2943 ACRES N d~~ s . ' ~3 (I I Tracts BLOCK A I I I I 16 COMMUNICATION EASEMENT a I I I CITY OF DENTON S II DOC #2008-7753 Oa I I I DOC. #2008-7755 v I ~`EASMT) Access 1st Capital Bank R=1985.62' I III , 35' FROM CL ' CN=t 52.23' I III l V CB=N 278'34' W P U E I I E F.I.R. rJA Q A--4'40'57' 56. 10 4 DENTON F.I.P. W S 89 58'.39' W 143.27 F.I.R. 56' w1 CITY OF008 6137 p PABLO PEREZ ~I I ~DOC ~N CARLOS MEZA O _ _ _ _ _ _ _ - ~'n YOL 5289 PG. 2888 .PT N 50'25' W I 7~ 142.20' F.t.R. S 89 51 15 W 234.40 c c z P r Site Map Pacific Street - Partial ROW Abandon AGENDA INFORMATION SHEET AGENDA DATE: April 21, 2009 DEPARTMENT: Engineering CM/DCM/ACM: Howard Martin, Utilities 349-8232 SUBJECT Consider adoption of an Ordinance of the City of Denton, Texas approving a Lease Agreement between the City of Denton, Texas and ARG East Hickory Partners, LLC for the lease of a portion of land located at the southwest corner of East Hickory and Industrial Streets, being situated within the H. Sisco Survey, Abstract Number 1184 and being described as part of Lot 3, Block 20 of the Original Town of Denton, for the construction, occupancy and maintenance of an outdoor patio, and providing an effective date. BACKGROUND ARG East Hickory has requested permission to lease a 14' x 105' (approximately 1437 square foot) tract of land owned by the City of Denton in order to construct an outdoor patio and to increase seating for a proposed restaurant tenant. ARG owns the property at 210-214 East Hickory and is currently developing it for commercial use. The subject lease tract is located at the southwest corner of the intersection of East Hickory and Industrial Streets. The tract to be leased is a sloping grassy area that is bounded to the east by the western property line being the western wall of the building owned by ARG. The area to be leased is currently maintained by the Parks Department. The subject lease tract in question is located within the boundaries of the Downtown Master Plan Entertainment District, and is zoned DCG (Downtown Commercial General). The initial lease term is ten years. The lease provides for two successive ten year extensions. The Lease will require the lessee to submit construction plans to the Building Official as well as the Director of Economic Development for review and approval prior to issuing a building permit. OPTIONS 1. Approve the Ordinance, or 2. Denial, or 3. Table for future consideration RECOMMENDATION Staff endorses the approval of the ordinance. PRIOR ACTION/REVIEW (Council, Boards, Commissions) DRC Review: Project PAC08-0121 ARG East Hickory Additional Seating-Staff Review of Proj ect FISCAL INFORMATION Not Applicable EXHIBITS 1. Ordinance 2. Lease Agreement 3. Location Map 4. Artist's Rendering of Site Respectfully submitted, Jimmy D. Coulter Director of Water/Wastewater Water Administration Prepared by: POMM .1+urm1g Doreen E. Blackstone Real Estate & Capital Support Division EXHIBIT 1 wµ ,..w r . ~ ~ a K p _ L ~ ~ ~~p x~ ~'px w..,,. a ~~l' e-~ ~ r { ~a . zw w ~ v L r Y ~ s 4 n ~ ~ V ~ b~~ .t~~. im. ~ "w 4. . L. , ~ ~ t... ~ x ..~n 7 ~y,.,,.~ r ~H a •7 yE...+ .n d:~ ~R d ~ rs y: ` .,i ..e ..a a u l n, u a d u . ~ ~ m r. ~ , . _ ~ ~ ~ ~ ~ k~. , ~ r .,.wM r ` r7~y. W y,. ;n~ ~ y * ~ rn- +r v y.-. r ~ i 1~ 4 ..:K -~w p R ~ ~ t . 6 ,w.. ~ a~ 'k o a- s~ 3. 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IIII~~~+ 4t"~F '~14yI,~i 'dbv ~ 4F t+5 Iq, y S~itCf , „a,~ tt p tt ~ , MiW 4,~. arrow. rrx~rw~r~+ yWIY~M►' 4 ~ aMwiw~MMYM~w a s.Ms- MwIwWw4i+wiwMMIfICIIMIIM(IM wrw~.r.uw rrr~wrWlMiMr arr ;v: arrXYrar~aWWwwwr~rYa ~wrraerriw.ir+nr~e a W _r "t aalWwwNrlMarirrYai ~~w► r+. Mrrwwirr a r a; r ~ a 4' t. , ~ ,G rA I~~~IwN ~ 4u Y ~ C W „i~ , ~ m 4 a ~ ~ y~  AGENDA INFORMATION SHEET AGENDA DATE: June 2, 2009 DEPARTMENT: Legal CM/DCM/ACM: Anita Burgess, City Attorney SUBJECT: AN ORDINANCE OF THE CITY OF DENTON, TEXAS DELEGATING AUTHORITY TO THE MUNICIPAL COURT JUDGE OR ASSISTANT JUDGES IN THEIR CAPACITY AS MAGISTRATES TO HEAR APPEALS UNDER SECTION 17-113 OF CHAPTER 17 "PROPERTY MAINTENANCE CODE" OF THE CODE OF ORDINANCES OF THE CITY OF DENTON REGARDING COSTS IMPOSED FOR ABATEMENT OF NUISANCES; AND DECLARING AN EFFECTIVE DATE. BACKGROUND: On March 3, 2009, the City Council passed Ordinance No. 2009-062 creating Chapter 17 of the Code of Ordinances, the Property Maintenance Code. Article XI of the Property Maintenance Code allows the City to abate certain nuisances following appropriate notice to the property owner. That provision also allows the City to assess costs against the property owner for expenses incurred as a result of correction of the nuisance. Under §17-113, the property owner is allowed an appeal of the reasonableness of the assessed costs to the City Council or its designee. OPTIONS: Approve or deny the ordinance. RECOMMENDATION: Staff recommends approval of the ordinance and delegation of the City Council's authority to hear appeals under §17-113 of the Property Maintenance Code to the Municipal Court Judge or Assistant Judges in. their capacity as magistrates. FISCAL INFORMATION: None R spectfully submitted, L Anita Burgess City Attorney S:4Our Dw mmtsWiacellanmus109\ageuda Btfmmatio sbe -delegaleappwls for a6atemmto is-da i ..tea=.~.;. ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS DELEGATING AUTHORITY TO THE MUNICIPAL COURT JUDGE OR ASSISTANT JUDGES IN THEIR CAPACITY AS MAGISTRATES TO HEAR APPEALS UNDER SECTION 17-113 OF CHAPTER 17 "PROPERTY MAINTENANCE CODE" OF THE CODE OF ORDINANCES OF THE CITY OF DENTON REGARDING COSTS IMPOSED FOR ABATEMENT OF NUISANCES; AND DECLARING AN EFFECTIVE DATE. WHEREAS, Chapter 17, Article XI of the Property Maintenance Code of the City of Denton allows the City to abate certain nuisances within the City following appropriate notice to the property owner; and WHEREAS, the above-cited provision further allows the City to assess costs against the property owner incurred as a result of correction of the nuisance; and WHEREAS, the property owner is allowed an appeal to the City Council or to its designee of the reasonableness of the assessed costs; and WHEREAS, the City Council has determined that it is in the best interest of the City to delegate its authority under the Property Maintenance Code for purposes of hearing these cost assessment appeals; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Council hereby delegates its authority to hear appeals under Chapter 17, Article XI, Section 17-113 of the Property Maintenance Code of the City of Denton regarding costs imposed for abatement of nuisances to the Municipal Court Judge or Assistant Judges in their capacity as magistrates. SECTION 2. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 2009. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANIT BURGESS, CITY ATTORNEY BY: 11 , S.VOur Doe ~~10rdmances509Welegale appeals Cw a6atenen[ .doe ..1_ AGENDA INFORMATION SHEET AGENDA DATE: June 2, 2009 DEPARTMENT: City Manager's Office CM/ ACM: Jon Fortune SUBJECT An ordinance of the city of Denton, Texas authorizing the city manager to execute a contract for professional legal services with Denton, Navarro, Rocha & Bernal for legal services related to Meet and Confer bargaining issues, pursuant to Tex. Loc. Gov't Code §§142.051 through 142.119; authorizing the expenditure of funds in an amount not to exceed $150,000; and establishing an effective date. BACKGROUND The City of Denton entered into Meet & Confer agreements with the Denton Fire Fighters Association (DFFA) and the Denton Police Officers Association (DPOA) for the period of October 1, 2006 to September 30, 2009. To facilitate the development of these agreements, the City utilized professional services from the law firm of Denton, Navarro, Rocha & Bernal. As the current agreements expire later this year, it is necessary to start the process to establish new Meet & Confer agreements with the DFFA and DPOA. To facilitate the creation of the new agreements and to ensure continuity, staff recommends using the Denton, Navarro, Rocha & Bernal firm again. Deliberations are schedule to begin on June 4 for the DFFA and June 19 for the DPOA. It is anticipated that it may take approximately 10 full day sessions each in order to establish the new agreements, which is the basis for the contract estimate. PRIOR ACTION/REVIEW (Council, Boards, Commissions) • Denton Fire Fighters Association and Denton Police Officers Association petitioned City Council to engage in Meet & Confer discussions in November 2005. • City Council recognized DFFA and DPOA in 2005. • City hired Denton, Navarro, Rocha and Bernal to facilitate Meet & Confer process. • City Council approved Meet & Confer agreements with both associations September 26, 2006. FISCAL INFORMATION The estimated cost of the contract to establish new agreements with the DFFA and the DPOA is not to exceed $150,000. Funds have been identified in the current budget to accomplish the proj ect. RECOMMENDATION: City staff recommends approval of Professional Services Agreement with Denton, Navarro, Rocha & Bernal, in order to ensure continuity from the previous successful process and sustain effective communication. EXHIBITS 1. Ordinance authorizing City Manager to execute a contract with Denton, Navarro, Rocha, & Bernal. 2. Denton, Navarro, Rocha, & Bernal professional services agreement. Res ectfull submi ed: Jo ortune A istant ty Manager Prep=~~- L&dsdy Baker Assistant to the City Manager swu~ommssweo,~~ ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT FOR PROFESSIONAL LEGAL SERVICES WITH DENTON, NAVARRO, ROCHA & BERNAL FOR LEGAL SERVICES RELATED TO MEET AND CONFER BARGAINING ISSUES, PURSUANT TO TEX. LOC. GOV'T CODE §§142.051 THROUGH 142.119; AUTHORIZING THE EXPENDITURE OF FUNDS IN AN AMOUNT NOT TO EXCEED $150,000; AND ESTABLISHING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager is hereby authorized to execute a Contract for Professional Legal Services with Denton, Navarro, Rocha & Bernal, in substantially the form attached and incorporated herein by reference. SECTION 2. The expenditure of funds in an amount not to exceed $150,000 as provided in the attached Contract for Professional Legal Services is hereby authorized. SECTION 3. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2009. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY.. , G c4ldocurnents and settingslchristy%local settingsltemporary internet fileslolk2OO1denton_navarro-meet_conferl (2).doc CONTRACT FOR PROFESSIONAL LEGAL SERVICES STATE OF TEXAS § COUNTY OF DENTON § This AGREEMENT, made and entered into this the day of .2009 by and between Denton, Navarro, Rocha & Bernal, 2517 North Main Avenue, San Antonio, Texas 78212, hereinafter referred to as "Consultant", and the City of Denton, a Texas municipal corporation, 215 East McKinney, Denton, Texas 76201, hereinafter referred to as "City". WITNESSETH WHEREAS, City finds it necessary to employ outside legal counsel to perform professional legal services regarding meet and confer bargaining issues, pursuant to HB 304 and HB 2892 of the 79th Texas Legislature (Tex. Loc. Gov't Code §§142.051 through 142.119); and WHEREAS, Consultant is willing to perform such services in a professional manner as an independent contractor; and WHEREAS, City desires to engage Consultant to render the professional services in connection therewith, and Consultant is willing to provide such services; NOW, THEREFORE, in consideration of the promises and mutual obligations herein, the parties hereto do hereby mutually AGREE as follows: 1. SCOPE OF SERVICES Consultant shall perform the following services in a professional manner working as an independent contractor not under the direct supervision and control of City: Services to be provided: 1. Consultant shall evaluate the relevant facts and circumstances and shall advise City, by written opinion, with respect to its options and the legality of such options, regarding researching and responding to requests for legal services. 2. Consultant shall also consult, as requested, with the City Manager, the City Attorney, and any other designated City staff respecting any and all aspects of the services to be performed under this Agreement. 3. This Agreement specifically contemplates that Consultant will advise City with respect to preparations necessary and appropriate to the potential for requested meet and confer bargaining, pursuant to HB 304 and HB 2892 of the 79th Texas Legislature (Tex. Loc. Gov't Code §§142.051 through 142.119), including responses and strategies necessitated by the filing of one or more petitions for recognition as sole and exclusive bargaining cAdocuments and setdngslchristyllocal settingsltemporary internet files1o11:2001denton_navarro-meet_confer1 (2).doc agent. In the event that such recognition is ultimately granted to one or more representative groups, as a result of consent or election, Consultant will advise and assist City in coordinating and conducting such bargaining sessions, and provide such other legal services or advisory services as may be necessary and appropriate to finalize one or more collective bargaining agreements, if any are ultimately reached. 4. Consultant shall perform all the professional services required in a timely fashion, and shall complete same in compliance with schedules established by City through its City Attorney, through discussions with the Consultant, as appropriate to carry out the terms and conditions of this Agreement. 2. ` TERM This Agreement shall be for a term of 12 months, beginning effective June 1, 2009 and ending on May 30, 2010. This Agreement may be sooner terminated in accordance with the provisions hereof. Time is of the essence of this Agreement, and Consultant shall make all reasonable efforts to complete the services set forth herein as expeditiously as possible during the term of this Agreement, and to meet the schedules established by City, through its City Attorney, or as the progress of this matter may require. 3. COMPENSATION AND METHOD OF PAYMENT A. Consultant shall charge the following fees for its professional services hereunder, based on the following fees for its professional services hereunder, based on the following hourly billing rates for the attorneys and support staff involved in this matter: Lowell F. Denton $285/hour Albert Pena $210/hour Elizabeth Provencio $185/hour Paralegals $75/hour Time will be billed at one tenth (.1) hour minimum billing increments. B. Consultant will try to reduce costs whenever feasible by utilizing qualified principals, associates, paralegals, and law clerks. Consultant shall bill City through the submission of itemized invoices, statements, and other documentation, together with supporting data indicating the progress of the work and the services performed on the basis of monthly statements showing hourly rates indicating who performed the work, what type of work was done, and descriptions and/or details of all services rendered, along with specific description and supporting documentation, if available, respecting any reasonable and necessary out-of- pocket expenses incurred. C. Consultant and City agree to set an initial budget, including all charges for the legal services hereunder, including reasonable out-of-pocket expenses, not to exceed One Hundred Fifty Thousand Dollars ($150,000), and Consultant agrees to notify City and seek a modification of the Agreement should the total fees exceed such amount. Page 2of8 oadocuments and seWngslchristyllocal settingsltemporary intemet fllcs\olk200\denton navarro-meet_corlfcr1 (2).doc D. City shall either pay directly or reimburse Consultant, as the case may be, for reasonable and necessary actual out-of-pocket expenses, including but not limited to, long-distance telephone, telecopier, reproduction, overnight courier, on-line research, and travel. All copies will be charged at the rate of ten cents ($0.10) per copy for copies made within Consultant's offices, with as much photocopying as possible being done by outside vendors at bulk rates or by the city to reduce costs if bulk copying is necessary. The parties agree that there will be no charges for outgoing telecopies or incoming telecopies. Whenever feasible, City encourages cost savings by the use of computer files in Microsoft Word or Adobe Acrobat formats, attached to e-mail transmissions. E. The parties anticipate invoices or statements for services will be generated on a monthly basis and that said invoices or statements will be sent on or about the 15th day of each month. City shall make payment to Consultant within 30 days of the satisfactory completion of services and receipt of an itemized invoice or statement. All reimbursable expenses, including, but not necessarily limited to travel, lodging, and meals shall be paid at the actual cost, pursuant to the terms, conditions, and limitations hereinabove set forth. All invoices and bills shall be approved for payment by the City Attorney. F. It is understood that Consultant shall work with the coordination and general supervision of the City Attorney or the Deputy City Attorney. G. All notices, billing statements and invoices shall be made in writing and may be given by personal delivery or by mail. Notices and invoices sent by mail shall be addressed to: John Knight, Deputy City Attorney, 215 East McKinney, Denton, Texas 76201. When so addressed, the notice, invoice, and/or payment shall be deemed given upon deposit in the United States Mail, postage prepaid. In all other instances, notices, invoices, and/or payments shall be deemed given at the time of actual delivery. Changes may be made in the names and addresses of the responsible person or office to whom notices, invoices, and/or payments are to be sent, provided reasonable written notice is given. 4. PROFESSIONAL COMPETENCY A. Consultant agrees that in the performance of these professional services, Consultant shall be responsible for the level of competency and shall use the same degree of skill and care presently maintained by other practicing professionals performing the same or similar types of work. For the purpose of this Agreement, the key persons who will be performing most of the work hereunder shall be Elizabeth Proventio. However, nothing herein shall limit Consultant from using other qualified and competent members of its firm to perform the services required herein. B. All legal opinions and other legal documents prepared or obtained under the terms of this Agreement are instruments of service and City shall retain ownership and a property interest therein. If this Agreement is terminated at any time for any reason prior to payment to Consultant for work under this Agreement, all such documents prepared or obtained under the terms of the Agreement shall upon termination be delivered to and become the property Page 3 of 8 cAdocuments and settingsUristyllocal settingsltemporary internet fileslolk200ldenton_navarro-meet_conferl (2).doc of City upon request and without restriction on their use or tVrther compensation to Consultant. 5. ESTABLISHMENT AND MAINTENANCE OF RECORDS Full and accurate records shall be maintained by Consultant at its place of business with respect to all matters covered by this Agreement. Such records shall be maintained for a period of at least three years after receipt of final payment under this Agreement. 6. AUDITS AND INSPECTION At any time during normal business hours and upon reasonable notice to Consultant, there shall be made available to City all of Consultant's records with respect to all matters covered by this Agreement. Consultant shall permit City to audit, examine, and make excerpts or transcripts from such records, and to make audits of contracts, invoices, materials, and other data relating to all matters covered by this Agreement. 7. ACCOMPLISHMENT OF PROJECT Consultant shall commence, carry on, and complete any and all projects with all practicable dispatch, in a sound, economical and efficient manner, and, in accordance with the provisions hereof and all applicable laws. In accomplishing the projects, Consultant shall take such steps as are appropriate to ensure that the work involved is properly coordinated with related work being carried on by City. 8. INDEMNITY AND INDEPENDENT CONTRACTOR RELATIONSHIP A. Consultant shall perform all services as an independent contractor not under the direct supervision and control of City. Nothing herein shall be construed as creating a relationship of employer and employee between the parties. City and Consultant agree to cooperate in the defense of any claims, actions, suits, or proceedings of any kind brought by a third party which may result from or directly or indirectly arise from any negligence and/or errors or omissions on the part of Consultant, or from any breach of Consultant's obligations under this Agreement. In the event any litigation or claim is brought under this Agreement in which City is joined as a part, Consultant shall provide suitable counsel to defend City and Consultant against such claim; provided however, that Consultant shall have the right to proceed with competent counsel of his own choosing. Consultant agrees to defend, indemnify and hold harmless City and all of its officers, attorneys, agents, servants, and employees against any and all such claims to the extent of coverage by Consultant's professional liability policy. Consultant agrees to pay all expenses, including but not limited to attorney's fees, and satisfy all judgments that may be incurred or rendered against Consultant's professional liability insurance policy. Nothing herein constitutes a waiver of any rights or remedies City may have to pursue under either law or equity, including, without limitation, a cause of action for specific performance or for damages, a loss to City, resulting from Consultant's negligent errors or omissions, or breach of contract, and all such rights and remedies are expressly reserved. Page 4 of 8 cftdocuments and settingslchristyWcal settings4emporary internet fileslolk2001denton navarro-meet_conferl (2),doc B. Consultant shall maintain and shall cause to be in force at all times during the term of this Agreement, a legally binding policy of professional liability insurance, issued by an insurance carrier approved to do business in the State of Texas by the Texas Department of Insurance, which carrier must be rated by AM Best, with a rating of "A-" or higher. Such coverage shall cover any claim hereunder occasioned by Consultant's negligent professional act and/or error or omission, in an amount not less than $500,000 combined single limit coverage per occurrence. In the event of change or cancellation of the policy by the insurer, Consultant hereby covenants to immediately advise City thereof; and in such event, Consultant shall, prior to the effective date of change or cancellation, serve a substitute policy furnishing the same coverage to City. Consultant shall provide a copy of such policy and the declarations page of the existing policy to City through its City Attorney, simultaneously with the execution of this Agreement. 9. TERMINATION OF AGREEMENT A. In connection with the work outlined in this Agreement, it is agreed and fully understood by Consultant that City may cancel or indefinitely suspend further work hereunder or terminate this Agreement at any time upon written notice to Consultant, Consultant shall cease all work and labor being performed under this Agreement. Consultant may terminate this Agreement by giving City 30 days written notice that Consultant is no longer in a position to continue representing City. Consultant shall invoice City for all work satisfactorily completed and shall be compensated in accordance with the terms of this Agreement. All reports and other documents, or data, or work related to the project shall become the property of City upon termination of this Agreement. B. This Agreement may be terminated in whole or in part, in writing, by either party in the event of substantial failure by the other party to fulfill its obligations under this Agreement through no fault of the terminating party. Provided, however, that no such termination may be effected, unless the other party is given [1] written notice (delivered by certified mail, return receipt requested) of intent to terminate, and not less than 30 calendar days to cure the failure; and [2] an opportunity for consultation with the terminating party prior to termination. C. Nothing contained herein or elsewhere in this Agreement shall require City to pay for any work which is unsatisfactory or which is not submitted in compliance with the terms of this Agreement. 10. ALTERNATE DISPUTE RESOLUTION Consultant agrees that, if necessary, it will use its best efforts to resolve any disputes regarding the Agreement through the use of mediation or other forms of alternate dispute resolution set forth in Chapter 154 of the Texas Civil Practice and Remedies Code. Page 5 of 8 cadocuments and settingslchristyVecal settingsltemporary intemet files1o1UMdenton_navarro-meet conferl (2).doc 11. ENTIRE AGREEMENT This Agreement represents the entire agreement and understanding between the parties, and any negotiations, proposals, or oral agreements are intended to be integrated herein and to be superseded by this written Agreement. Any supplement or amendment to this Agreement to be effective shall be in writing and signed by City and Consultant. 12. COMPLIANCE WITH LAWS Consultant shall comply with all federal, state, and local laws, rules, regulations, and ordinances applicable to the work covered hereunder as they may now read or hereafter be amended, including but not limited to the Texas Disciplinary Rules of Professional Conduct. 13. GOVERNING LAW For the purpose of determining place of agreement and law governing same, this Agreement is entered into in the City and County of Denton, State of Texas, and shall be governed by the laws of the State of Texas. Venue and jurisdiction of any suit or cause of action arising under or in connection with this Agreement shall be exclusively in a court of competent jurisdiction sitting in Denton County. 14. DISCRIMINATION PROHIBITED In performing the services required hereunder, Consultant shall not discriminate against any person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical handicap. 15. PERSONNEL A. Consultant represents that it has or will secure at its own expense all personnel required to perform all the services required under this Agreement. Such personnel shall not be employees or have any contractual relations with City. Consultant shall inform City of any conflict of interest or potential conflict of interest that may arise during the term of this Agreement, in accordance with Consultant's responsibilities under the Texas Disciplinary Rules of Professional Conduct. B. All services required hereunder will be performed by Consultant or under its direct supervision. All personnel engaged in work shall be qualified and shall be authorized or permitted under state and local laws to perform such services. 16. ASSIGNABILITY Consultant shall not assign any interest in this Agreement and shall not transfer any interest in this Agreement (whether by assignment, novation, or otherwise) without the prior written consent of City thereto. Page 6 of 8 cAdocuments and settingslchristyllocal settingsltemporary intemet fileslolk2001denton_navarro-meet conferl (2).doc 17. SEVERABILITY All agreements and covenants contained herein are severable, and in the event any of them, with the exception of those contained in sections headed "Scope of Services", "Independent Contractor Relationship," and "Compensation and Method of Payment" hereof, shall be held to be invalid by any court of competent jurisdiction, this Agreement shall be interpreted as though such invalid agreements or covenants were not contained herein. 18. RESPONSIBILITIES FOR CLAIMS AND LIABILITY Approval by City shall not constitute nor be deemed a release of the responsibility and liability of Consultant for the accuracy and competency of its work; nor shall such approval be deemed to be an assumption of such responsibility of City for any defect in any report or other documents prepared by Consultant, its employees, officers, agents and consultants. 19. MODIFICATION OF AGREEMENT No waiver or modifcation of this Agreement or of any covenant, condition, or limitation herein contained shall be valid unless in writing and duly executed by the party to be charged therewith, and no evidence of any waiver or modification shall be offered or received in evidence in any proceeding arising between the parties hereto out of or affecting this Agreement, or the rights or obligations of the parties hereunder, unless such waiver or modification is in writing, duly executed as aforesaid; and, the parties further agree that the provisions of this section will not be waived as herein set forth. 20. CAPTIONS The captions of this Agreement are for informational purposes only and shall not in any way affect the substantive terms or conditions of this Agreement. 21. BINDING EFFECT This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, legal representatives, successors, and assigns where permitted by this Agreement. IN WITNESS HEREOF, the City of Denton, Texas, has caused this Agreement to be executed in duplicate originals by its duly authorized City Manager, and Consultant has executed this Agreement through its duly authorized undersigned partner, dated this the day of , 2009. Page 7 of 8 c:ldocaments and scttingslchristyllocai settingsltemporary intemet fileslolk2001denton_navarro-meet confert.doc CITY OF DENTON, TEXAS GEORGE C. CAMPBELL CITY MANAGER ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY 1~ , LQ1 VA c ~ BY: DENTON, NAVARRO, ROCHA & BERNAL BY: LOWELL F. DEN N, P TNER Page 8 of 8 sAour documentslmiscellaneous1091060209 ais jnc settlement agndoc AGENDA INFORMATION SHEET AGENDA DATE: June 2, 2409 DEPARTMENT: Legal Department CM/DCM/ACM: Jerry Drake, Deputy City Attorney SUBJECT: Consider adoption of an ordinance authorizing the City Manager, pursuant to his executive authority, to act upon options and obligations arising under certain compromise settlement agreement and mutual release of claims, previously approved by Council on October 21, 2008, involving the City of Denton, Texas, JNC Partners Denton, LLC, White Cake Denton, L.P., John Lau, and Campbell Road Holding Company as parties; and declaring an effective date. OPTIONS: Approve or deny the ordinance. RECOMMENDATION: Staff recommends approval. FISCAL INFORMATION: No impact other than as contemplated by the previously approved agreement. Respe ry sub ' ed, erry Drake scour documentslordinances1041jnc comp settlement & release of claims ord.doc ORDINANCE NO. AN ORDINANCE AUTHORIZING THE CITY MANAGER, PURSUANT TO HIS EXECUTIVE AUTHORITY, TO ACT UPON OPTIONS AND OBLIGATIONS ARISING UNDER CERTAIN COMPROMISE SETTLEMENT AGREEMENT AND MUTUAL RELEASE OF CLAIMS, PREVIOUSLY APPROVED BY COUNCIL ON OCTOBER 21, 2008, INVOLVING THE CITY OF DENTON, TEXAS, JNC PARTNERS DENTON, LLC, WHITE CAKE DENTON, L.P., JOHN LAU, AND CAMPBELL ROAD HOLDING COMPANY AS PARTIES; AND DECLARING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Council hereby approves the proposed Compromise Settlement and Release of All Claims involving the City of Denton, Texas, JNC Partners Denton, LLC, White Cake Denton, L.P., John Lau, and Campbell Road Holding Company, a copy of which is attached hereto and incorporated by reference herein. SECTION 2. The City Manager, or his designee, and the City's Attorneys are hereby authorized to act on the City's behalf in approving and executing any and all documents necessary or appropriate to effectuate the terms of the settlement, including the expenditure of budgeted funds in the amount stated therein, and to take other actions necessary to finalize the settlement. SECTION 3. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2009. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGF. - Y ATTORNE 2009 Kevin Kemplin, President Bolivar Water Supply Corporation 310 N. 3rd St. (MAILING ADDRESS IS'P.O. Box 17$9) Sanger, TX 76266 Mr. Kemplin, As you know the City of Denton (the "City") currently provides retail water and sewer services to its customers located in portions of the City's corporate limits and extraterritorial jurisdiction, and within the boundaries of its water and sewer certificates of convenience of necessity ("CCN") Nos. 10195 and 20072, respectively. The City has recently annexed territory within the boundaries of Bolivar Water Supply Corporation's water CCN No. 11257. Copies of the annexation ordinances and maps showing the location of the annexed areas are enclosed. Please be advised that the City intends to provide retail water utility service to this annexed area. We look forward to discussing with you the terms of an agreement whereby the City will extend its retail water service to this area. Sincerely, I George C. Campbell City Manager i Enclosure AGENDA INFORMATION SHEET AGENDA DATE: June 2, 2009 DEPARTMENT: Utility Administration ACM: Howard Martin, 349-8232 SUBJECT Consider an ordinance of the City of Denton, Texas, approving and authorizing the City Manager to execute, a Second Amendment to a Development Agreement dated June 17, 2008, between the City of Denton, Texas and Allegiance Hillview, L.P., as well as an associated amendment to an Irrevocable Standby Letter of Credit, both of which are related to construction of improvements on U.S. Highway 380, in the vicinity of U.S, Highway 380, between Interstate Highway 35 and Bonnie Brae Street; and approving an effective date. BACKGROUND Allegiance Hillview L.P. (Developer) is the developer of the Rayzor Ranch project on Hwy 380. To facilitate the timely construction of the Rayzor Ranch project, the Developer had accepted the responsibility to fund and construct the section of Hwy 380 from IH-35 to Bonnie Brae. On June 17, 2008 the City of Denton entered into a Development Agreement (Exhibit 2) with the Developer for the construction of the above section of Hwy 380, as well as relocation of the utilities along Hwy 380 in this corridor. The City also engaged the firm of Teague Nall and Perkins, Inc. (TNP) to provide construction management services for the construction of the Hwy 380. The Developer being responsible for all costs related to construction of the Hwy 380, arranged a LOC (Irrevocable Standby Letter of Credit from Wells Fargo Bank) to pay for the construction management services of TNP (Exhibit 3). Due to the simultaneous construction of the relocation of utilities project and the Hwy 380 construction, the highway construction has gotten behind schedule to make allowance for the relocation of utilities. The project is behind schedule approximately three months. In addition, the coordination with TxDOT (Texas Department of Highways) has been cumbersome due to one more management layer, that being the third party construction management services. As such, staff is recommending that the City's Public Works Inspection department take over the inspection of the Hwy 380 construction project. The inspection department has personnel with prior experience as TxDOT inspectors for pavements and bridges, and can be assigned full time for inspection of the project. The City's Development Review engineering and the Public Works Inspection departments regularly work with TxDOT, and had to be substantially engaged in the Hwy 380 construction project to facilitate coordination with TxDOT, Developer, and the Contractor. So the transition of the inspection services to the City should not cause any problems. To facilitate the transfer of inspection services to the City, the June 17, 2008 Development Agreement has been amended (Exhibit 4). In addition, the Developer has caused Wells Fargo Bank to amend the LOC to name the City of Denton as the beneficiary of the construction management services contract (Exhibit 5). These will become effective upon approval of the City Council and execution by the City Manager. RECOMMENDATION Staff recommends approval of the amendment to the June 17, 2008 Development Agreement, and the amendment to the LOC from Wells Fargo Bank to name the City of Denton as beneficiary of the construction management services for the Hwy 380 construction. PRIOR ACTION/REVIEW (Council, Boards, Commissions) City Council: June 17, 2008 - Recommended approval of the Development Agreement For Rayzor Ranch (Hwy 380) with Allegiance Hillview L.P. FISCAL INFORMATION The construction of the Hwy 380 and the inspection fees associated with the construction is the Developer's responsibility. EXHIBITS 1. Ordinance 2. Development Agreement For Rayzor Ranch (Hwy 380) 3. Irrevocable Standby Letter of Credit from Wells Fargo Bank 4. Amendment to Development Agreement For Rayzor Ranch (Hwy 380) 5. Amendment to Irrevocable Standby Letter of Credit from Wells Fargo Bank Respectfully submitted: zw daolft- Jim Coulter Director of Water/Wastewater Utilities Prepared by: f,t5i" P. S. Arora, P.E. Development Review Engineering Administrator Assistant Director of Wastewater Utilities scour documentslordinances10912nd amendment to allegiance hillview.doc EXHIBIT I ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, APPROVING AND AUTHORIZING THE CITY MANAGER TO EXECUTE, A SECOND AMENDMENT TO A DEVELOPMENT AGREEMENT DATED JUNE 17, 2008, BETWEEN THE CITY OF DENTON, TEXAS AND ALLEGIANCE HILLVIEW, L.P., AS WELL AS AN ASSOCIATED AMENDMENT TO AN IRREVOCABLE STANDBY LETTER OF CREDIT, BOTH OF WHICH ARE RELATED TO CONSTRUCTION OF IMPROVEMENTS ON U.S. HIGHWAY 380, IN THE VICINITY OF U.S, HIGHWAY 380, BETWEEN INTERSTATE HIGHWAY 35 AND BONNIE BRAE STREET; AND APPROVING AN EFFECTIVE DATE. THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The Second Amendment to Development Agreement for Rayzor Ranch (U.S. 380), attached hereto as Exhibit I is hereby approved, as is the accompanying amendment to the Irrevocable Standby Letter of Credit, attached hereto as Exhibit 2, and the City Manager is hereby authorized to execute both documents on the City's behalf. SECTION 2. This ordinance shall become effective upon passage and approval. PASSED AND APPROVED this the day of _ 12009. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS - ANITA,HUGESS, ~A~ RNE EXHIBIT 2 THE STATE OF TEXAS § COUNTY of DENT'ON NOTICE OF CONFIDENTIALf1`Y RIGHTS: IF YOU AIM A NATURAL PERSON, YOU I LkY REMOVE OR STRIKE ANY OF THE FOLLON'VING LNFO"IATION FROM THIS INSTRUMM' NT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUI IEBER OR- YOUR DRIVER'S LICENSE NUMMER. DEVELOPMENT AGREEMEN'T' FOR RAYZOR RANCH (U.S. 380) This Development Agreement ("Agreement") is entered into by and between the CITY OF DENTON, a Texas municipal corporation of Denton. County, Texas (hereinafter called the "City") and ALLEGIANNCE HTLLVIEW, L.P., a New York. limited partnership acting herein by and through its general partner, TH GP LLC- (dlb/a TH Denton OP LLC), a Delaware limited liability company (hereinafter called "Developer"). «LTNESSETH WHEREAS, Developer owns a portion of 410 acres of property, more or.less, situated generally north and .south of West University Drive/U.S. Highway 380, between IH-35 and Bonnie Brae Street and zoned as the Rayzor Ranch Overlay District Classification ("Ordinance 2007-468") (such property also being described herein as the "Property"); and , Developer wishes to develop the Property to include a wide variety of j commercial; retail, office, housing of various types, open space areas, and other uses pursuant to Ordinance 2007-468, also to be known as the Rayzor Ranch Development (the "Development" or 'Rayzor Ranch"); and WHEREAS, the Developer wishes to -commit to certain improvements to public infrastructure (as more fully specified herein) which are connected to the overall development of Rayzor Ranch, which will involve the provision of expedited and special services from the City of Denton; and WHEREAS, the City has accommodated. Developer by implementing land use and ~ development standards unique to this Development, designed to permit and promote the unique design characteristics of the Development; City has hardier accommodated Developer's scheduling requests by expediting the City's review and consideration of portions of the Development as necessary to meet Developer's schedule; and WHEREAS, in consideration of the above accommodations, the risks associated with consideration of the advancement of utility improvements in a piecemeal fashion and the construction of the Avidening of U.S. Hwy. 380, the City wishes to formulate this Agreement to ensure that Developer and its successors, assigns, agents and representatives, if any, carry out Developer's stated intention to provide uti ,ity relocations and. extensions and improvements to . I i the aforementioned State highway, either for the Development as herein defined, or for any other alternative use of the Property. NOW THEREFORE; in consideration of the mutual covenants and obligations herein, the parties agree as follows: SECTION I. DEVELOPER PARTICIPATIOIN The Developer agrees that the Property will be developed in accordance with the following terms and conditions: A. F)densions and Relocations of City Owned Utilities Between I1I35 and Bonnie Brae. The Developer bas agreed to advance and undertake the installation and relocation of all utilities necessitated by the evelopment or impacted by the widening of U.S. Hwy 380, in conjunction with the Developer's widening of U.S. Hwy. 380 between IH35 and Bonnie Brae, as more particularly shown on the plans entitled "U.S. Hwy. 380 Roadway & Utility Improvements IH 35 to Bonnie Brae for Rayzor- Ranch". The City of Denton Water Utilities Department originally included a total of $4,954,000 in construction fiends in its Capital Improvement Program (CIP) for the relocation of water and wastewater lines in association with the Texas Department of ,Transportation (TxDOT) widening of U.S. Hwy. 380 between Elm Street and _ Interstate Highway. 35 (IM 5), $2,927,000 and $2,027,000 for water and wastewater (i.e. sanitary sewer) relocates respectively. The scope of the original relocation project for water lines out of the TxDOT ROW between Bonnie Brae and 'IH35 included: (1) Relocation. of an existing 16" neater line out of U.S. Hwy. 380 right of way (ROW) bet%veen IH35 and the east side of IH35; (2) Two crossings of U.S. Hwy, 380 between IH35 and. Bonnie Brae and just east of.Bonnie Brae with 12" diameter water lines; and (3) Construction of an 8" diameter water line on the north side of U.S. Hwy. 380 along the frontage of the existing Chevron Station. The scope of the original relocation project for wastewater lines out of the TxDOT ROW between Bonnie Brae and IH35 and for extension of a relocated wastewater interceptor cast of Bonnie Brae to Cornell Street and south to connect to an existing interceptor along Denton T.S.D. property (such extension is necessary to convey the projected wastewater loading of the Development offsitc) included: Upsizing of an existing 10" diameter sanitary sewer line to 15" diameter and relocation out of the U.S. Hwy. 380 ROW -from approximately the west side of 2828 W. University Drive (U.S. Hwy. 380) east to Cornell Street and south to connect to an existing interceptor along Denton I.S.D. property. Additional upsizing of the sanitary sewer line from the planned-size of 15 diameter to 18 " and Zl " diameters ~ is caused by the sanitmy sewer loading resulting from the rezoned use of the property by the Development, and payment for such additional pipe sixes is the sole responsibility of the Developer. The City «Mll contribute a total not to exceed the sum of $500,000 plus 10% contingency plus the total of all costs for City Field Changes, as hereinafter defined, for water installation and relocation and $300,000 plus 10% contingency plus the total of all costs for City Field Changes, as hereinafter defined, for wastewater installation.and relocation to the Development to be used for the relocation of the referenced water and wastewater utilities. No City funds will be contributed to or used by the Development for the relocation of utilities, extensions of utilities, upsWng of utilities, relocation of utilities owned by entities other than the City or any other utility work caused solely by or rcqu.ired for the Development. Bids will be received by the 2 Mod G Developer for the relocations of the water and wastewater utilities and will be structured such , that subtotals are shown' separately for the water and wastewater utilities that the City woke have relocated in conjunction with the U.S. Hwy. 380 widening project. In the event that subtotals actually bid for the water and wastewater utilities are less than $500,000 and/or $300,000 respectively, then Ithe City will only participate by providing funds in the total amounts that were received for these subtotals plus all costs incurred in connection with City Field Changes. In the event that the subtotals actually bid are more than 5500,000 plus 10% contingency for water relocations and/or $300,000 plus 10% contingency for wastewater relocations, then the City will have the option of either requesting a redesign per City's input end- rebid of the project or limiting the City's participation- in the Development's relocation of water- and wastewater utilities to $500,000 plus 10% contingency and/or $300,000 plus 10% contingency respectively plus all costs incurred for City Field Changes. Developer shall provide separate monthly invoices to the City in writing by the 25th of each month relative to all portions of the construction costs required for the relocation of the water and wastewater utilities respectively. Upon confirmation by City peisonnel of actual work completed on the relocation of each utility, the City shall endeavor to pay each such invoice out of the funds on deposit in the accounts for each utility by the 15th of the fol lowing month. The Developer shall submit ull plans and specifications for this work to the City. Once the plans and specifications for this work have been reviewed by the City and it is determined that they are sufficient, the City .will approve the plans (the "Approved Utility Plans") for the beginning of work, pending receipt of all required permits. The Developer is solely responsible for satisfying all requirements set forth. to complete the work.. Developer agrees that it will perform the work in accordance with the Approved Utility Plans and to the standards and satisfaction of City and TxDOT, if any TxDOT standards and specifications should apply. Developer shall request prior written approval for all field changes through the City. All such changes caused by unforeseen conditions or changed site conditions that would have been incurred by the City if the project had been designed and built per the City's original schematic design, as well as all changes to the project requested by the City for its benefit or TxDO'Ps ("City Field Changes"), shall be reimbursed to the Developer. Payment for all other changes will be the sole responsibility of the Developer. Developer agrees that it shall cause to be provided performance, payment and maintenance bond's and the appropriate insurance for the work to be performed and will carry the City and TxDOT, if necessary, as an Obligee 6r-an additional insured, as appropriate. B. Widenine of U.S. Hwy- 380. TxDOT has been working towards the widening of U.S. Hwy. 380 between Elm Street and IH35, publishing plans adequate for utility relocations (65% complete) in November 2006. The Developer has offered to reconstruct this roadway along the extents of the Development, between IM35 and. Bonnie Brae, increasing the Right of Way ("ROW") width in conjunction with the Development. The Developer will be solely responsible for all costs associated with the reconstruction -of U.S. Hwy. 380 over the stated extents, including all ancillary construction caused by or instituted as a result of the Developer's reconstruction of U.S. Hwy. 380 (excluding the costs to be reimbursed by - the City to the Developer pursuant to Section I.A. hereof) and agrees to deposit supplemental funding to secure such increases due to project delays or cost increases in materials and labor. The Developer will be required to receive a permit from TxDOT through the City for this construction. The 3 Developer shall submit all plans and specifications for this work to the City. Once the plans and specifications for this work have been reviewed by the City and it is determined that they are sufficient for submission to TxDOT, the City will forward the plans and specifications to TxDOT for approval. Upon such approval, such plans and specifications -shall be referred to as the "Approved Roadway Plans." The Developer is solely responsible for satisfj ing all requirements set forth by TxDOT in order for the permit to be issued and for the work to commence, Developer agrees that it Rill perform the work in accordance with the Approved Roadway Plans and to the standards and satisfaction of the City and TxDOT. Developer agrees that it shall cause to' be provided. performance, payment and maintenance bonds and the appropriate insurance for the work to be performed and will carry the City and TxDOT as an Obligee or an additional insured, as appropriate. Inasmuch as the City '.Vill be the entity m riving the permit and responsible for the proper construction of the project in accordance with TxDOT standards and inasmuch as the Developer has asked that this project be advanced in an expedited fashion, the City has contracted with an outside consultant for review of the plans and specifications, construction administration, representation and material testing services in the amount of S456,618. The services of the City's outside consultant are solely related to the highway wideaing work and not with the utility relocation work described herein above. The outside consultant will act as an agent of the City, reporting to the Inspections Manager of the Utility and CIF' Engineering division of Water. Utilities. The Developer will provide funding for a total of $456,618 with the City prior to beginning work on the widening of the roadway; however, the Developer will increase this funding as required during the construction project in order to reimburse the City for actual costs for such services, including amounts for additional services required by changed site conditions, contractor initiated change orders or delays in, project duratioif beyond the one-year projected construction period. C. Three-Way Contracts. The Developer will enter into three-way contracts with the City for those items which are discussed in Section 1, paragraphs A and B of this Agreement fnspections fees for the City of Denton are normally set- at 3.51/o of public works construction costs. The inspection services for the Extensions and Relocations of City Owned Utilities shall be performed by the Utility and CIP Engineering division of Water Utilities, and the fee for these services shall be absorbed by the City up to a maximum of 15% of the amount agreed to for the construction of those facilities as described in. Section 1, paragraph A, plus the City ]yield Changes.. In the event that the actual expenditures for these inspection services emceed 3.5% of the amount agreed to for the construction of those facilities as described in Section I, Paragraph A, plus the City Field Changes, including the e$ort to manage and coordinate the activities of the outside consultant discussed in Section 1, paragraph B Above, the Developer agrees to deposit additional funds with the City within fifteen (15) days from receipt of written notice for the continued provision of these services prior to proceeding with construction. The inspection fees for the Widening of U_S. Hwy. 380 shall be as set forth in Section 1, paragraph B. SECTION 2. DELAY'S AND FORCE MAJEURE It is expressly understood and agreed by the parties to this Agreement that if the substantial completion of the construction of any improvements contemplated hereunder is delayed by reason of war, civil commotion, acts of God, inclement weather, governmental restrictions, regulations, or interferences, delays caused by the franchised utilities (Denton I Municipal Electric, CoServ, Southwestern Bell Telephone, Atmos Energy, Charter Cable, 4. Verizon or any of their predecessors or successors or other utilities, or any of their contractors), fire or other casualty, court injunction, necessary condemnation proceedings, acts of the other party, its affiliates/ related entities, and/or their contractors; or any circumstances which are reasonably beyond the control of the party obligated or permitted under the terms of this Agreementlo do or perform the same, regardless of whether any such circumstance is similar to any of those enumerated or not, the party so obligated or permitted shall be excused from doing or performing the same during such period of delay, so tliat the time period applicable to such design or construction requirement shall be extended for a period of time dqual to the period such parry was delayed. The obligations subject to enlargement of time without penalty do not include funding obligations or obligations delayed for financial reasons. Developer understands that the enlargement of time is the only relief to which it may be entitled and that will be granted under this Agreement and that the right to any additional funding, compensation or damages, consequential or others, is hereby waived and. released. SECTION 3. TERM The term of this Agreement shall begin on the date of execution, and end upon the complete performance of all obligations and conditions precedent by the parties to this Agreemcnt. Developer's obligations shall be binding upon subsequent primary developers of the entire portion of the Property along U.S. Highway 380 (but not on individual lot purchasers) and/or the Developer's successors, assigns, agents or representatives, until all obligations of the Developer are satisfied in full. SECTION 4. CONSTRUCTION AGREEMENTS AND DOCUMENTS Developer shall deliver a copy of all construction agreements and contract documents that it awards for the completion and/or performance of the work contemplated under this Agreement. Developer shall incorporate the provisions of this Agreement into the provisions of all construction agreements and contract documents as may be required in order to fully meet its obligations under the terms of this Agreement. Developer shall require as part of each constriction agreement and contract document protection of the City against any liability that may arise from the work contemplated by this Agreement, to include but not limited to bonds, insurance and appropriate indemnity language. Developer will be required to provide s maintenance bond or warranty for the work. contemplated under this Agreement to run fox two (2) years from the date of fimal completion- A copy of all bonds shall be provided to the City as part of the construction agreement and contract documents. Developer will be required to deliver a copy of the insurance declaration along with adequate information to contact the insurer to verify that the City is named as an additional insured. SECTION 5. INDEh4147FICATION DEVELOPER SHALL INDEMNIFY AND HOLD HARMLESS THE CITY, MEMBERS OF THE CITY COUNCIL., AND ITS OFFICERS, EMPLOYEES, AGENTS, REPRESENTATIVES AND CONSULTANTS (EACH PERSON DESCRIBED HEREIN CALLED AN "INDEMNIFIED PARTY" AND COLLECTIVELY, THE "INDEMNIFIED PARTIES' AGAINST ANY AND ALL INDEMNIFIED LIABILITIES SUBJECT TO THE RESTRICTIONS IN' THIS SECTION 5. IF AN LNDEMNIFIED PARTY INCURS ANY 5 -MEW - r . 1 INb LIABnXMS, TBE DEVELOPER SHALL, FULLY RELMBURSE SUCH INDBhfl4IFMD PARTY FOR ALL SUCH IND LIABILITIES INCURRED. HOWEVP4 TBE DEVELOPER WILL NOT BE REQUIRED TO INDEMNIFY AND/OR HOLD 1~TA t1VMI FSS ANY INDEMNIFIED PARTY FOR ANY LOSSES OR IINDENI NDUED LIABILITIES THAT RESULT FROM TAE ~EMMFIED PARTY'S SOLE NEGLIGENCE, EgTENTIONAL MISCONDUCT OR KNOWING VIOLATION OF = LAW. TO THE EXTENT APPLICABLE, THE DEVELOPER SHALL BE SUBROGATED TO ANY CLAWS OR RIGHTS OF THE INDEMNIFIED PARTIES AS AGAINST ANY OTHER PERSON (BUT NOT AN INDEMNIFIED PARTY) WITH RESPECT TO IND FIED LIABILITIES PAID BY = DEVELOPER. FOR PURPOSES OF THIS SECTION 5, "ROHMN LIABILITIES" SHALL. BE DEFINED TO INCLUDE ALL LASSES INCURRED 'BY ANY OF' THE INDM PARTIES THAT ARE RELATED TO, ARISE OUT OF OR ARE ASSOCIATED WITH: (1) THE CONSTRUCTION OF THE. WORK THAT IS CONTEMPLATED BY TED S AGREEMENT; (2) ANY BREACH OF OR INACCURACY IN ANY REPRESENTATION OR W MADE BY THE .DEVELOPER, ITS GENERAL PARTNER, OR PARTIES UNDER ITS CONTROL; (3) ANY BREACH OR NON- PERFORMANCE, PARTIAL OR TOTAL, BY DEVELOPER AND ITS GENERAL PARTNER OF ANY COVENANT OR AGREEMENT OF THE DEVELOPER CONTAINM IN THIS AGREEMENT OR ANY AGREEMENT ASSOCIATED ` WITH TIM DEVELOPMENT OF RAYZOR RANCH TO WHICH TIE DEVELOPER, OR ANY PREDECESSOR. OR SUCCESSOR DEVELOPER, REPRESENTATIVES, AGENTS OR J AS SIGNS ARE A PARTY OR PARTIES; (4) ANY CONDITION CREATED IN OR ABOUT THE SITE OF TIM WORK GONTEh2LATED BY TLIIS AG ;AND (5) ANY .ACCIDENT, INJURY OR PROPERTY DAMAGE WHATSOEVER OCCURRIl IG IN, AT OR UPON THE SrM OF THE WORK CONTLATED BY TIES AGREE. i SECTfON 6. EVENTS OF DEFAULT A default shall exist if the Developer or City fail to perform or observe any material covenant contained in this Agreement, The non-defaulting party hall immediately notify the defaulting party in writing upon becoming aware of any change in the existence of any condition or event which would constitute a de guilt or, with the giving of notice or passage of time, or both, would constitute a default under dais Agreement. Such notice shall specify the nature and the period of existence thereof and what action, if any, the notifying party requires or proposes to require with respect to curing the default- If this Agre=ent has been partially or wholly assigned by Developer to a Permitted Assignee (defined below), and the Permitted Assignee defaults hereunder, then City shall also concurrently with its notice to the defaulting Permitted Assignee, notify Developer, and Developer within five (5) business days of such notice may apply to the City -La be reinstated as the Developer herednder, and if approved by the City which. shall have sole discretion in making this decision, this Agreement shall be deemed to be re- assigned to Developer for all purposes. However, the City is under no obligation to approve Developer's reinstatement. SECTION 7. RE-MEDIES A. If a default shall occur and continue, after thirty (30) days advance written notice to cure dcfaalt (provided, however, such thirty (30) day period shall be extended if Developer 6 has satisfied the City of its good faith efforts to cure such failure within such thirty (30) day cure period and is diligently pursuing such cure to completion, for a period not to exceed a total of ninety (90) days), City may, at its sole option, terminate this Agreement in accordance with Texas law, without the necessity of further notice to or demand upon the Developer and full funding of the improvements and contract listed tinder Section 1, paragraph B, shall become due and payable by the Developer. The City, may at its sole option provide written notice to the surety bond company or lending institution and make written demand upon tho bond company or lending institution to provide the funds'relating to the bond in order for City to either f mish thoso portions of the project underway up to the point of default or to pay unpaid bills. The City may also at its sole option, draw the full amount of the Construction Letter of Credit to complete the remaining portions of the project, including any administrative or other costs incurred by the City. All feuds received'by the City shall be used solely for the purpose of completing the improvements required to be completed by Developer pursuant to this Agreement, and if any funds are remaining after all such improvements to be completed by Developer pursuant to this Agreement have been completed by the City, such remaining {tends shall be returned to Developer. These agreements regarding (i) circumstances of malting draws an the Construction Letter of Credit and (ii) use of funds after draws on the Construction Letter of Credit are between City and. Developer only, and are not a part of the Construction Letter of Credit, and the only - requirements for draws on the Construction Letter of Credit between City and the issuer of the Construction Letter of Credit ere the terms contained in. the Construction Letter of Credit. i B. All Developer's warranty and indemnification obligations shall survive any temnination or assignment unless Developer is released, Nothing in this Section shall be construed to waive any sovereign, governmental immunity available to City under Texas law. Nothing in this Section shall be construed as a waiver or release of any right, remedy or cause of action that is available to the City under or as a result of this Agreement, in equity or at law. SECTION S. VENUE AND GOVERNING LAW THIS AGREEMENT SHALE. BE INTERPRETED AND -THE RYGHTS OF THE PARTIES DETERMINED IN ACCORDANCE WITH THE LAWS OF THE UNrMD STATES APPLICAB LE. TEMRETO AND THE LAWS OF THE STATE OF TEXAS APPLICABLE TO AN AGREENv - ' EXECUTED, DEUVM FD AND - PERFORMED IN TIM STATE OF 'TEXAS. This Agreement is performable in Denton County, Texas, and venue of any action arising out of this Agreement shall be exclusively in the state district courts of Demon County, Texas. SECTION 9. NOTICES Any notice required by this Agreement.-shall be deemed to be properly served if deposited i in the U.S. Mail by certified. letter, return receipt requested,' addressed to the recipient at the n:ecipiem's address shown below, subject to the right of either party to designate a different address by notice given in the manner just described. If intended for City, to: If intended for the Developer, to: George C. Campbell Fortress Investment Group, L.L.C. City Manager 5221 N. O'Connor Blvd., Suite 700 City Hall Irving, Texas 75039 215 E. McKinney Attention: Andrew Osborne Denton, Texas 76201 Phone: (972) 532-4335 =Fax: (214) 260-0938 i With copies to: Allegiance Hillview, L.P. c/o Torreon Capital,. L.P. 515 Congress Avenue, Suite 2525 Austin, Texas 78701 Attention: Rex M. Paine Phone: (512) 472-6777 Fax: (51.2) 472-6731 Brown McCarroll, L.L.P. 1 I 1 Congress Avenue, Suite 1400 Austin, Texas 78701 Attention: Robert L. Davis Phone: (512) 479-9706 Fax: (512) 479-1101 SECTION 10. GIFT TO PUBLIC SERVANT A. City may, at its sole option and discretion, terminate this Contract immediately if the Developer has offered, conferred or agreed to confer any benefit. upon a City employee or official that the City employee or official is prohibited by law from accepting. B. For purposes of this Article, "benefit" means anything reasonably regarded as pecuniary gain or pecuniary advantage, including benefit to any other person in whose welfare the beneficiary has a direct or substantial interest, but does not include a contribution or expenditure made and reported in accordance with law. .C. Notwithstanding any other legal remedies, City may require the Developer to remove any employee of the Developer from the Project who has violated the restrictions of this Article or any similar state or federal law, and obtain reimbursement for any expenditures made to the Developer as a result of the improper offer, agreement to confer, or conferring of a benefit to a City employee or official. SECTION 1.1. APPLICABLE LAWS This Agreement is made subject to the provisions of the Charter and ordinances of City, as amended, and all applicable state and federal laws. All work to be performed under this 8 Agreement shall be in accordance will all applicable laws, including without limitation all applicable licenses, permits, building codes, restrictive covenants, zoning and subdivision ordinances and flood disaster, environmental' laws, the Americans with Disabilities Act, all local ordinances, and state laws- SECTION 12: LEGAL CONSTRUMON In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect:; such invalidity, illegality, or unenforecability shall not affect -any other provision thereof and this Agreement shall be considered as if such invalid, illegal, or unenforceable provision had never been contained in this Agreement. The election of the City to not exercise a right or seek a remedy at a particular time shall not be construed as a waiver or release of the City's rights, remedies, or causes of action under this Agreement or those that are available at law or in equity. SECTION 13. COUNTERPARTS This Agreement may be executed in any number of counterparts, each of whicb shall be deemed an original and constitute one and the same instrument. SECTION 14. CAPTIONS The captions- to the various clauses of this Agreement are for informational purposes only and shall not alter the substance of the terms and conditions of this Agreement. SECTION 15. SUCCESSORS AND ASSIGNS The terms and conditions of this Agreement are binding upon the successors and assigns of the parties to this Agreement until satisfied in full, regardless of whether the Property is developed as the Development, or as any other alternative use. With the City's prior written approval of the action- and the assignee, which shall not be unreasonably withheld, Developer may assign in whole or in part, this Agreement to an affiliate of Developer, or a successor owner of the Property, (a "Permitted. Assignee") at any time during the term hereof. Developer shall be released from all liability hereunder to the extent of such assignment to a Permitted Assignee and City shall correlatively be released from all liabilities and obligations to the Developer/Assignor, to the extent of such assignment. A Permitted Assignee will be required io assume all legal and financial obligations of the Developer, including but not limited to the terms of this Development Agreement, and to demonstrate same to the satisfaction of the City, including, but not limited to, furnishing proof of Permitted Assignee=s financial status and documenting that all bills are paid and all liens are released on all work completed up to the time of assignment, prior to the approval of the assignment- in. lieu of receipt of such written approval from the City, Developer retains full legal and (financial responsiblility and all associated liability associated with this Agreement. SECTION 16. NO T HM-PARTY BENMCLUUES OR JOINT VENTURE The City and Developer intend that this Agreement shall inure only to their benefit and shall not benefit or create any right or cause of action in or on behalf of any third-party beneficiary, or any 9 individual or entity other than the City and Developer or any of their assigns except where such a right arises from an indemnification or hold harmless obligation which shall inure to the benefit of a proper indemnitee. Nothing contained, in this Agreement or any ancillary document. created as part of this Agreement is intended to create a partnership or joint venture between the City and Developer and any implication to the contrary is expressly disavowed. It is understood that this Agreement does not create a joint enterprise, nor does it appoint either party as an agent .for the other for any purpose whatsoever. Neither party shall -in any way assume any liability of the other for acts of the other or obligations of the other unless specifically set forth in this Agreement or an ancillary document. SECTION 17. TI IS OF THE ESSENCE; COTMAENCEMENT; FUNDING AND SECURITY Developer understands and agrees that time is of the essence in this Agreement and accordingly agr=s to move forward with beginning construction on the improvements described herein not later than one hundred twenty (I20) calendar days after execution of this Agreement. Failure to begin the project as stated will be regarded as a breach. Developer shall maintain at all times adequate funding or security for completion of its obligations under the Agreement, supplementing as necessary to assure adequate funding for Developer's remaining obligations under the Agreement, including increases necessitated by changing costs in labor and materials over time, as well its increases in construction costs caused by Developer's failure to timely commence the project or pursue it to completion in a timely manner. Unless otherwise specified, all time periods are expressed in calendar days. SECTION 18. ENTIRE AGREEMENT This Agreement embodies the complete agreement of the parties hereto, superseding all oral or written previous and contemporary agreements between the parties relating to matters contained in this Agr"rnent 'and, except. as otherwise provided in this Agreement, cannot be modified without written agreement of the parties to be attached to and made a part of this Agccment. The exhibits to Denton Ordinance 2007-058 referenced in this Agreement are incorporated by reference as if set forth fully herein, and shall remain component parts of this Agreement even in the event that Ordinance 2007-068 is amended, superseded or repealed. Tlie scope of this Agreement is limited to the specific funding obligations of the Developer set forth in Section 1. The parties stipulate that this Agreement does not satisfy any other development obligation under law or City ordinances; particularly, it does not satisfy any applicable impact fee requirements or development exactions to construct required public infrastructure improvements, including those associated with tramportatiort, storm sewer, water, sanitary sewer, or utilities. The parties -further stipulate that Mth respect to the limited scope of this agreement, the funds provided are not disproportionate to the burdens of the development. The parties stipulate- that this Agreement does not constitute a permit for development under Chapter 245 of the Texas Local Government Code. 10 • i SECTION 19. COAMENCEN ENT OF AGRFMINIENT, U TrAL FUNDING AND PERFORMANCE BOND A. Developer shall, not later than_ninety (90) days from the date of execution of this Agreement by both parties, deposit with City funding for the widening of U.S. Highway 380, which may fake the form, of the following irrevocable letters of credit (the "Ledm-s of Credit"): (1~ An irrevocable letter of credit to secure the construction obligations 'of Developer under this Agreement, in an amount equal to the construction related funding required to be provided by Developer to the City pursuant to this Agreement, issued by Wells. Fargo Bank, N.A., a California Corporation, at 601 Nest University Drive, Denton, Texas 76201, or any other bank eppmved by City in City's sole discretion (an "Approved Bank") and in all other respects materially in the form and on the terns attached hereto as Exhibit A, or such other form and terms as may be approved by the City in its sole discretion, together with such supplemental fimding as needed for cost increases (the "Constru.ction Letter of Credit'"). The City shall be entitled. to draw on the Construction Letter of Credit as set forth: in Section 7 hemeof and ' (2) An irrevocable letter of credit in the amount of 5456,618.00 from an Approved. Back, and in all other respects in the form and on the terms as the letter of credit attached hereto as Exhibit B, or such other form- and terms as maybe approved by the City in its sole discretion,. together with such supplemental funding as needed for cost increases (the "Consultant Letter of Credit"). The City shall be authorized to make thaws on the Consultant Letter of Credit for the sole purpose of providing payments to the City"s outside consultant pursuant to Section 1.B hereof. The City agrees thnA any funding related to the construction. obligations of Developer under this Agreement, including the Construction Letter of Credit, shall be reduced, each time a payment is made by Developer for construction for which Developer is obligated to make payment under this Agreement, based on evidence of paytrteat submitted to and approved by the City. If a Construction Vetter of Credit is deposited, the City agrees that it will send a statement to the issuer of the Construction Letter of Credit, upon, approval by the City of a payment having b een paid by the Developer" as required by the Construction Utter zaf Credit to authorize a reduction of the Construction Letter of Credit for the mount paid by the Developer and approved by the city. In addition to the Letters of Credit, Developer shalt" at the same time as delivery of the Letters of Credit, deliver to the City a performance bond in the amount of $500,000.00, which may be drawn upon to cover ad Tni motive and bidding expenses incurred by the city, i, the event that contraction of the improvemeots to be constructed by Developer hereunder shall. cease, after construction has commenced, * and the City is required to take over and complete such improvements. B. Notwithstanding anything hcrcin to the contrary, Developer shall deposit with the City the required funding for the widening of U.S. Highway 380. If Developer shall fail to provide such funding within ninety (90) calendar days of the execution of this Agreement, this Agma nrnt shall terminate and be of no further force and effect; unless it is extended in writing r21 by both parties btxcto, whereupon, the City and State may elect to construct the widening of U.S. Hwy. 380 and the associated utility relocations as originally envisioned. EXECL= this / day of 2008, by the r gamg by and through its City Manager, duly anthoriz to eKWUted same by o. a?D0~'/ 8 approved by the City Council on / 2408, and by the Developer, -acting through its duly authorized officers. [SIGNATURES APPEAR ON FOLLOWING PAGE] I 12 APPROVED AS TO FORM: CITY OF DENTON * EDWIN M. SNYDER George C. Campbell City Attorney City Manager $Y: - DY:_ rney City ger f ALLEGIANCE HILLVIEW, L.P., a New York limited partnership By:. TH GP LLC (d/b/a TH Denton GP LLC), a Delaware limited liability company, .its general partner Ay: I7 o std ~e 13 ACKNOWLEDGE-MENTS THE STATE OF TEXAS § COUNTY OF DENTON § Thus ' strument was acknowledged before me, the undersigned authority on this the day of '1008, by George C Campbell, City Manager of the Cite of i Denton, Texas, a Municipal Corporation„ on behalf of the same, ~ i~,r" JAaiE E, RFCNJI~11 ' S0N Pct~,uy 5ttte of 7e~s My crarar+itm4n ,tune 27, 2W9 tart' Public in and for the State of Texas THE STATE OF TEXAS § COUNTY OF § 'Ds C' 1k45 This instrument was acknowledged before me, the undersigned authority on this day of 2008, by,_, Manager of Allegiance Hillview Management, LLC, on behalf of same. Not; lic in and for the State of Texas E DAVID EMCEE VY Ca41 MSICM EXPIRES • - i 14 EXHIBIT 3 1RREVOCABLE STAN M LETTER OF CREDIT ISSUING BANK.: WELLS FA.RGO BANE., N.A. ONE FRONT STREET, 21.x7 FLOOR SAN FRANCISCO, CALIFORNIA 94111 s Attention: TRADE SERVICES DIVISION - STANDBY LETTER. OF CREDIT UNTT Phone: (800) 798-2815 OPTION i E-mail: SFTRADE a WELLSFARGO.COM ISSUE DATE: AUGUST 29, 2008 S`fANTBY CREDIT REPERENcE No. NZS627483 `ro: City of Denton City Hall 215 E. McKinney Denton, Texas 76201 Attn: George Campbell, City Manager ALL DRAFTS DRAWN? UNDER T1,11s CRFDIT MusTBE MARKED: "Drawn Under Letter of Credit No. NZS627483" By the order of Allegiance Hiliview, L.P., we hereby issue in favor of the City of Denton, Texas CTeneficiary►') our irrevocable credit for the account of Allegiance Hillview, L.P., for an amount or ainounts not to exceed in the aggregate Ten Million ($10,000,000.00) United States Dollars available by your drafts at sight on the Wells Fargo Bank, N.A., effective from August 29, 2008 and expiring at our office at the close of business on January 11, 2009 ("Initial. Expiry Date"). Drawings may also be presented to us via telefacsimile to our telefacsimile no. (415) 296-8905 (each such drawing, a "Fax Drawing") provided however that you confirm our receipt of any Fax Drawing by telephone to our telephone no. 1-800-798-2815 (option 1). Funds under this credit are available against your draft(s) drawn under this Letter of Credit marked with our credit number as shown above. The documents specified below must be presented at sight on or before the expiry date in accordance with the terms and conditions of this letter of credit: Performance Deficiency - If there is a default by Allegiance, Hillview, L.P. under the terms and. conditions of the Development Agreement (U.S. 380) entered into between Allegiance Hillview, L.P. and Beneficiary dated June 17, 2008 (the "Contract" the Beneficiary shall: 1) provide an affidavit executed by the Beneficiary or its designated representative which states: 'rhe undersigned, an authorized representative of The City of Denton, Texas page i or? (`Beneficiary"), hereby certifies that Allegiance H llview, .L•,P: has defaulted and that notice has been provided to Allegiance Hillview, L.P. under the terms and conditions of the Development A.Mement (U.S. 380) entered into between Allegiance Hillview L.P. and Beneficiary bated June 17, 2008 (the "Contract"), and Allegiance Hillview, L.P. has failed to cure its default in the time allotted under the Contract. We further certify that Allegiance Hillview, L.P. has been notified of our intent to draw under the credit." Reduction - This credit shall be reduced as follows: Upon receipt of written notification, executed by the Beneficiary or its designated representative, that states: "in accordance Nvith terms of the Contract, the undersigned, an authorized representative of The City of Denton, _ Texas (`Beneficiary"), hereby certifies that Allegiance Hillview, L.P. is entitled to a reduction. of the credit in the amount of S This credit shall be reduced by the amount stated in such notice. We engage with you that drafts drawn under and in conformity with the terms of this credit will be. duly honored on presentation if presented to us at our office at the address shown above on or before the expiry date. If the dram is less than, the mount of the Letter of Credit, the documents required under this credit and this original letter of credit. must accompany the draft for indorsement of the amount paid. If the draft is for the full amount, the documents required i under this credit must accompany the draft and The Letter of Credit must be surrendered to us. In no event shall the Letter of. Credit be terminated prior to January 11, 2009. Unless the undersigned elects not to renew this Lettcr of Credit as provided below, this Letter of Credit shall automatically renew for one year periods commencing on the Initial Expiration date and continuing on each succeeding expiration date. In the event that the undersigned elects not i to renew this Letter of Credit, it agrees to give written notice of such election by express courier, or certified mail, return receipt requested, and postmarked no less than 45 days prior to the expiration of the initial term or any renewed terms, as the case may be. Upon receipt of said notice, Beneficiary may at any time prior to the expiration of this Letter of Credit, present a draft drawn under this Letter of Credit in an amount equal to the remaining amount of the Letter of Credit without the necessity of meeting the requirement of 1 above. Failure to give such notice will cause this Getter of Credit to automatically renew for an additional one year period. THIS LETTER OF CREDIT IS ISSUED SUBJECT TO THE M•I:ERNATIONAL STANDBY PRACTICES 1998 (ISIa98), INTERNATIONAL CHAMBER OF C`WLIERCE PUBLICATION CVO. 590. VE)VUE AND JURISDICTION FOR ANY COURT ACTIONS COjVCERA'LVG THIS LETTER OF CREDIT SHALL BE IN DENTON COUX71T TE KAS. NVELLS FARGG BANK, N.A. 10 BANK OFFICER Page !of EXHIBIT 4 SECOND AMENDMENT TO DEVELOPMENT AGREEMENT FOR RAYZOR RANCH (U.S. 380) TEE STATE OF TEXAS § § KNOW ALL BY THESE PRESENTS: COUNTY OF DENTON § THIS SECOND AMENDMENT TO THAT AGREEMENT made and entered into the 17"' day of June, 2008 ("Base Contract") by and between the City of Denton, a Texas municipal corporation, 215 East McKinney, Denton, Texas 76201, hereinafter referred to as "City" and Allegiance Hillview, L.P., a New York limited partnersbip. acting herein by and through its general partner, TH GP LLC (d/b/a in, Texas as TH Denton GP LLC), hereinafter referred to as "Developer," WITN.ESSET.H... SECTION 1. Section I.B. of the Base Contract is hereby amended by adding at the end thereof the following language: Notwithstanding the foregoing, the City' .may, at any time, elect to self-perform the services which would otherwise be provided by the outside consultant, and in such case the City shall be reimbursed by the Developer for its costs incurred in providing such services. The City shall provide to the Developer with any request for payment, invoices reflecting the City's reimbursable costs and administrative expenses for which payment is requested. SECTION 2. Section 19.A(2) of the Base Contract shall be amended by deleting the last sentence thereof and adding the following at the end thereof: The City shall be authorized to make draws on the Consultant Letter of Credit for the purpose of providing payments to the City's outside consultant pursuant to Section 13 hereof. In the event that the City elects to provide the services rather.. than use an outside consultant, the City shall also be authorized to make draws on the Consultant Letter of Credit for the: purpose of providing payments to the City pursuant to Section I.B. hereof. In addition, because $232,350.00 has already been paid to the outside consultant, the amount of the Consultant Letter of Credit shall be permitted to be reduced to $224,368.00 effective as of the date of.this Second Amendment. SECTION 3. Save and except as amended hereby, all the remaining sections, paragraphs, sentences, clauses and phrases of the Base Contract shall remain in full force and effect. RECEIVED 4276013.2 MAY 2 6 2009 57708.1 CITY OF DENTON LEGAL DEPT. IN WITNESS WHEREOF, the City of Denton, Texas has caused this Second Amendment to be executed on this the day of - , 2008. CITY OF DENTON By: MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO ANITA B , CITY ATTO ALLEGIANCE'HILLVIEW, L.P.; a New York limited partnership By: TH GP LLC (d/)/a in Texas as TH Denton GP LLC), a Delaware- limited liability company, its General Partner By: 2 4275015.2 57708.1 NON-NEGOTIABLE COPY wells Fargo Bank, N.A. Operations Group Di Northern California One Front Street, 2151 Floor son Francisco, CA 94111 PAGE: 1 DATE: MAY 26, 2009 AMENDMENT TO CREDIT NO. NZS627488 Ar- ENDr,4ENT NUMBER : APPLICANT: ALLEGIANCE HILLVIEW, L.P. ATTN : ANDR.E 1 OSBORNE 5221 N. O'CONNOR BLVD., SUITE 700 IRVING, TX 75039 BE NEFICIAl : CITY OF DENTON CITY FALL, 215 E. MCKINNEY DENTON, TEXAS 76201 ATTN: GEORGE CAMPBELL;CITY MANAGER THIS AIIIENDMENT IS TO BE CONSIDERED AS PART OF THE ABOVE CREDIT AAN3D M1JST BE ATTACHED THERETO. THE ABOVE MErFrIONED CREDIT IS A&TENDED AS FOLLOWS : THE FOLLOWING ADDITIONAL CONDITION HAS BEEN ADDED: THE A14OUNT OF THIS CREDIT HAS BEEN DECREASED BY USD232,250.00. THE AMOUNT OF THE CREDIT 18SUED NOW TOTALS USD224;368.00. THE BENEFICIARY AFFIDAVIT STATEMENT IS DELETED IN ITS ENTIRETY AND . REPLACED BY THE FOLLOWING: 1) PROVIDE 1UN AFFIDAVIT EXECUTED BY BENEFICIARY OR ITS DESIGNATED REPRESENTATIVE WHICH STATES: ''THE UNDERSIGNED, AN AUTHORIZED REPRESENTATIVE OF THE CITY OF DEN-TON, TEXAS ( ' BENEFICIARY' , HEREBY CERTIFIES IN ACCORDANCE WITH THE DEVELOPMENT AGREHIMENT (U.S. 380), AS :AMENDED, BETWEEN BENEFICIARY AND ALLEGIANCE HILLVIEW, L.P. DATED JUNE 17, 2003 (THE "CONTRACT''), THAT 'PAYMENT APPLICATION FROM BENEFICIARY OR BENEFICIARY'S CONSULTANT IS DUE AND PAYABLE IN THE A1IOUNT OF THIS DRAFT APFi HAS NOT BEEN PAID. WE FURTHER CERTIFY TILAT ALLEGIANCE HILLVIEW, L.P. HAS BEEN NOTIFIED OF OUR INTENT TO DRAW UNDER THE CREDIT-" PLEASE NOTE THAT TF.E TERNS OF THIS AMENDMENT .ARE SUBJECT TO YOUR CONSENT, THEREFORE, IF THE, AMENDMENT IS ACCEPTABLE TO YOU, PLEASE SIGNIFY YOU Z AGREE148NT BY SIGNING THE ATTACHED COPY IN THE SPACE PROVIDED AND RETURN IT TO US. IF IT IS NOT ACCEPTABLE TO YOU, PLEASE SO ADVISE US IMMEDIATELY. ALL OTHER *TER1,,iS UNCHANGED. Original NON-NEGOTIABLE COPY Welts Fargo Bank, N.A. Operations Group Northern California OrM Front Street, 21st Floor San Francisco, CA 44111 PAGE: 2 G. BALENBIN AUTHORIZED ASSISTANT VICE PRESIDENT SIGNATURE PLEASE CONTACT CHRISTINA CHUONG BY TELEPHONE AT 415.396.8355 OR BY FAX AT (415) 296-8.905 OR TRADE CONNECTIONS AT 1-800-798-2815 REGARDING ANY INQUIRIES. Please X below. Fast Is acceptable Amendment is ( I ACCupted I I Rejected TypeiPrint 6';7NEFU ?R.Y•S NAME Per -)BLC PRINT NAME 8 TITLE_ Authorized Signaiure: Date- crigImat AGENDA INFORMATION SHEET AGENDA DATE: June 2, 2009 DEPARTMENT: Utility Administration ACM: Howard Martin, Utilities, 349-823 . SUBJECT Consider adoption of an ordinance amending the Water Conservation and Drought Contingency Plan of the City of Denton previously enacted by the City Council in Ordinance No. 2005-121 on the 19th day of April, 2005; and as previously amended by the amended water conservation and drought contingency plan in Ordinance No. 2006-127 on the 2nd day of May, 2006; further amending the Water Conservation and Drought Contingency Plan in accordance with the requirements of the law; adding a section to the conservation plan addressing two best management practices recommended by the Texas Water Development Board, to include park and athletic field water conservation; and providing penalties for violations thereof, providing a criminal penalty not to exceed $2,000 per violation; providing a civil penalty not to exceed $1,000 per day per violation and providing civil legal remedies for the City of Denton, Texas; providing a savings clause; providing a severability clause; and providing an effective date. The Public Utilities Board Recommends approval (5-0). BACKGROUND The City of Denton adopted its original Water Conservation and Drought Contingency Plan on December 7th, 1999. The plan was developed according to criteria established by the Texas Natural Resources Conservation Commission (now called Texas Commission on Environmental Quality (TCEQ)) and established a water conservation goal of a fifteen percent reduction in per- capita water consumption by the year 2050. Per-capita, defined by the Texas Water Development Board (TWDB), is the total amount of water diverted and/or pumped for potable water use divided by total population. Per-capita is also commonly referred to as gallons per capita per day (gpcd). TWDB specifies that per-capita be calculated as a five year rolling average. This is meant to smooth out the effects of weather variability from year to year that would hide any trend in per- capita usage. The DWU forecast does much the same thing to gauge total demand, but reduces weather variability by defining `normal,' `wet,' and `dry' years based on historical rainfall observations over several decades. Exhibit 4 shows the 5 year rolling average gpcd as it is reported to TWDB. The Plan was updated in 2005 in response to the passage of HB 2660, requiring quantified 5-year and 10-year water savings targets in the Conservation Plan. The 2005 Conservation Plan update set a goal of one percent annual reductions in per-capita usage. Denton's existing Conservation Plan already outlined several conservation practices, including a residential conservation rate structure, waterline replacement program, public awareness and xeriscape programs, an annual internal water audit, and reuse programs meant to meet this goal. After the 2005 Conservation Plan update, staff proposed a water waste ordinance, as an additional conservation measure. The Lawn and Landscape Irrigation and Water Waste Ordinance were subsequently implemented in an accelerated fashion during the drought of 2006. In 2008, DWU also implemented seasonal commercial irrigation pricing as a way to curb summer peak usage, which can be partially attributed to commercial irrigation practices. Staff will monitor commercial irrigation usage in future years to gauge the effectiveness of seasonal rates on customer water usage. Staff believes that these practices, in conjunction with the automatic savings reaped from federal requirements for clothes washers implemented in 2007 along with state requirements for low- flow plumbing fixtures in place since 1991, have contributed to a drop in Denton's per-capita water usage. Exhibit 4 shows the general downward trend in per-capita usage coinciding with the implementation of the plan's policies. Although weather variability might have contributed to conservation gains, as in the exceptionally wet year of 2007, or masked extra savings, as in exceptionally dry 2006, staff sees the downward trend as evidence of some impact by the Conservation Plan's components. Legislative changes to Water Conservation and Drought Contingency Plans New Submittal Dates Effective January 1, 2008 Title 30 Chapter 288 of the Texas Administrative Code (TAC) entitled Water Conservation Plans, Drought Contingency Plans, Guidelines and Requirements requires the holder of an appropriation of surface water in the amount of 1,000 acre feet a year or more for industrial, municipal, and other non-irrigation uses develop, submit a water conservation plan meeting the requirements of Subchapter A of Chapter 288 to the executive director of the Texas Commission on Environmental Quality and to the Texas Water Development Board no later than May 1, 2009 to coincide with the regional planning group process. In addition, retail public water suppliers providing water service to 3,300 or more connections must also submit a drought contingency plan to the executive director of TCEQ by the same date. Yearly Water Conservation Implementation Report Also effective January 1, 2008 Title 30 Chapter 288 of the Texas Administrative Code requires the holder of an appropriation of surface water in the amount of 1,000 acre feet a year or more to submit a yearly implementation report listing conservation methods used and dates implemented, data about whether conservation targets are being met and explanations of failure to meet targets, and the actual amount of water saved. The first implementation report is due with the May 1, 2009 update to our Conservation Plan. Updates to Denton's Plan Our current plan meets all TCEQ requirements for Water Conservation and Drought Contingency Plans. Denton's current Drought Contingency Plan already contains quantified targets for water use reductions during times of shortage or drought. These targets have been extended to 2019 to meet the 10-year goal requirement, with a per-capita reduction of one percent per year. In staff s opinion, Denton has an appropriate water conservation plan in place, which consists of the following components: • Conservation Water Rate Structure for Residential Rate Class -comprised of an inverted block rate such that the price of water increases with increasing consumption • Public Awareness and Education Program - includes bill inserts, brochures, a school education program, public speaking engagements, and public service announcements • Web Site - DWU maintains a web site with water conservation tips and answers to frequently asked water conservation questions • Xeriscape Program - offers a free semi-annual landscape management class and distributes Texas Smartscape CDs at local events and upon request • Waterline Replacement Program - replaces waterline on a worst-first basis, which is effective in reducing the number of waterline breaks • Annual Internal Water Audit - water accounting system useful for estimating and controlling unaccounted for water • Residential Water Audits - trained staff conduct on site water audits for residential customers, identifying potential water waste and demonstrating water conservation techniques • Effluent Reuse Program - reclaimed wastewater is sold to customers for non potable uses, primarily irrigation Staff feels the TWDB Task Force's suggested annual reduction of one percent per year in total per-capita is attainable for Denton. Since the goals were set, Denton has also implemented its Lawn and Landscape and Water Waste Ordinance and has instituted a seasonal commercial irrigation rate to reduce peak consumption. Based on available data, staff believes the current goals can be largely achieved through continued implementation of the components in the current plan, refinement of the lawn and landscape irrigation program, and moderate growth of Denton's reclaimed effluent reuse program. Staff has added one a section to the Conservation Plan addressing two additional Best Management Practices recommended by the Task Force's Water Conservation Best Management Practices Guide. These practices involve park and athletic field conservation. DWU with work with Parks and Recreation and other partners, including golf course operators, to decide on the possibility and economic viability of improving irrigation, landscaping, and turf management practices at our parks, golf courses, and athletic fields. Denton has met its initial specific goal of a one percent reduction of per-capita per year in the first five years, resulting in a 9 gallon per day reduction in per-capita. By the year 2014, the second required evaluation and update period of the plan, meeting the one percent reduction in per-capita per year would result in a per-capita reduction of approximately 18 gallons per day. That number rises to a saving of 27 gallons per day, for an average of 156 gpcd in 2019. OPTIONS 1. Accept the proposed Plan with Staff-suggested modifications. 2. City Council provides direction to Staff for incorporation into updated Plan. RECOMMENDATION Staff recommends Option 1, accepting Staff-proposed modifications. PRIOR ACTION/REVIEW (Council, Boards, Commissions) This item was presented to the Public Utilities Board at their April 13th, regular scheduled meeting. The Board recommends approval with a unanimous vote of (5-0). FISCAL INFORMATION N/A BID INFORMATION N/A EXHIBITS 1. Ordinance 2. Executive Summary 3. 2009 Water Conservation and Drought Contingency Plan 4. 5 year rolling average per-capita water use trend 5. PUB Meeting Minutes Respectfully submitted: J_. 44~ s ~ ~ Tim Fisher Assistant Director, Water Utilities Prepared by: Joel Nickerson Field Technician III, Water Utilities EXHIBIT 1 ORDINANCE NO. 2009- AN ORDINANCE AMENDING THE WATER CONSERVATION AND DROUGHT CON- TINGENCY PLAN OF THE CITY OF DENTON PREVIOUSLY ENACTED BY THE CITY COUNCIL IN ORDINANCE NO. 2005-121 ON THE 19TH DAY OF APRIL, 2005; AND AS PREVIOUSLY AMENDED BY THE AMENDED WATER CONSERVATION AND DROUGHT CONTINGENCY PLAN IN ORDINANCE NO. 2006-127 ON THE 2ND DAY OF MAY, 2006; FURTHER AMENDING THE WATER CONSERVATION AND DROUGHT CONTINGENCY PLAN IN ACCORDANCE WITH THE REQUIREMENTS OF THE LAW; ADDING A SECTION TO THE CONSERVATION PLAN ADDRESSING TWO BEST MANAGEMENT PRACTICES RECOMMENDED BY THE TEXAS WATER DEVELOP- MENT BOARD, TO INCLUDE PARK AND ATHLETIC FIELD WATER CONSERVATION; AND PROVIDING PENALTIES FOR VIOLATIONS THEREOF; PROVIDING A CRIMINAL PENALTY NOT TO EXCEED $2,000 PER VIOLATION; PROVIDING A CIVIL PENALTY NOT TO EXCEED $1,000 PER DAY PER VIOLATION AND PROVIDING CIVIL LEGAL REMEDIES FOR THE CITY OF DENTON, TEXAS; PROVIDING A SAVINGS CLAUSE; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, § 11.1271 and 11.1272 of the Texas Water Code and the applicable rules of the Texas Commission on Environmental Quality require the City to include specific, quantified five-year and ten-year targets for water savings and specific quantified targets for water use re- ductions during periods of water shortages and drought in the Water Conservation and Drought Contingency Plan; and WHEREAS, on April 19, 2005, the City Council enacted the ordinance providing for the Water Conservation and Drought Contingency Plan for the City, by enacting Ordinance No. 2005-121; and WHEREAS, on May 2, 2006, the City Council enacted the ordinance providing for the Amended Water Conservation and Drought Contingency Plan for the City, by enacting Ordin- ance No. 2006-127, by adding Appendix "G" to said plan, which was the "Lawn and Landscape Irrigation and Water Waste Ordinance'; and WHEREAS, the City Council of the City of Denton, Texas recognizes that the amount of water available to the City and its water utility customers is limited, is subject to depletion and should be used efficiently; and the City Council desires to amend the said Water Conservation and Drought Contingency Plan to include two additional Texas Water Development Board, Best Management Practices recommended by the Task Force's Water Conservation Best Management Practices Guide that relate to park and athletic field conservation; and WHEREAS, the City Council finds that this ordinance is necessary to protect the public health of the residents of the City of Denton, Texas, in accordance with §54.001 and §54.004 of the Texas Local Government Code; and WHEREAS, the City Council deems it in the public interest to adopt the following amendments to the Water Conservation and Drought Contingency Plan as are contained in the attached "City of Denton - Water Conservation and Drought Contingency Plan - April 2009" 1 attached hereto as Exhibit "A", said Plan is incorporated by reference herewith; NOW, THERE- FORE, THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. City of Denton Ordinance No. 2005-121, pertaining to the "Water Conser- vation and Drought Contingency Plan," and codified in Chapter 26 of the Code of Ordinances of the City of Denton, Texas, at §§26-233 and 26-234, amended, by City of Denton Ordinance No. 2006-127, by adding to it Appendix "U', which is the "Land and Landscape Irrigation and Water Waste Ordinance"; and as further amended by the "Water Conservation and Drought Contingen- cy Plan - April 2009" which is attached hereto and incorporated by reference herein for all pur- poses: Sec. 26-233. Water conservation and drought contingency plan. (a) Adoption of plans. The Water Conservation and Drought Contingency Plan of the City adopted dated April 19, 2005, and the previous amendment thereto adopted by ordinance dated May 2, 2006, are both hereby amended and the "City of Denton - Water Conservation and Drought Contingency Plan - April 2009" is hereby adopted by reference and is added to, and made a part of this Code of Ordinances for all purposes, as if fully set forth herein (hereafter col- lectively referred to as the "Plan"). Sec. 26-234. Criminal and Civil Penalties. (a) A person commits an offense if he or she knowingly makes, causes, or permits a use of water contrary to the measures implemented in the Water Conservation and Drought Con- tingency Plan, as amended (the "Plan"). For the purposes of this section, it is presumed that a person has knowingly made, caused, or permitted a use of water contrary to the measures im- plemented if the mandatory measures have been implemented according to the Plan and any one of the following conditions apply: (1) The Plan prohibits the manner of use; or (2) The amount of water used exceeds the amount allowed by the Plan; or (3) The amount of use or the amount used violates the terms and conditions of a compliance agreement following a variance granted by the Assistant City Manager for Utilities; or (4) The violation of any provision of the "Land and Landscape Irrigation and Water Waste Ordinance" (b) The following penalty shall apply during Stages 3 and 4 of the Water Conserva- tion and Drought Contingency Plan, as amended. Any person who knowingly violates any pro- vision of this article shall, upon conviction, be punished by a fine not to exceed two thousand dollars ($2,000.00). Each day that one or more provisions in this Plan is violated shall be consi- dered to be a separate offense. 2 (c) The City Attorney is authorized to commence an action for appropriate legal or equitable relief in a court of competent jurisdiction in addition to the penalty mentioned in the above Subsection (b). Such additional relief may include: (1) An injunction to prevent a violation of this chapter, or of the Water Con- servation and Drought Contingency Plan, as amended; (2) Recovery for expenses incurred by the City in responding to a violation of this Chapter, or of the Water Conservation and Drought Contingency Plan, as amended; (3) A civil fine of up to one thousand dollars ($1,000.00) per day for viola- tions of §26-233 or for violations of the Water Conservation and Drought Contingency Plan, as amended; (4) All other damages, costs, remedies and legal processes to which the City may be entitled. SECTION 2. That this ordinance shall be cumulative of all provisions of ordinances and of the Code of Ordinances of the City of Denton, Texas, as amended, except when provisions of this ordinance are in direct conflict with the provisions of such ordinances and such Code. All conflicting provisions of such ordinances and such Code are hereby repealed to the extent of that conflict only. SECTION 3. That it is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses, and phrases of this ordinance are severable, and, if any phrase, clause, sentence, paragraph, or section of this ordinance shall be declared unconstitution- al by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionali- ty shall not affect any of the remaining phrases, clauses, sentences, paragraphs, and sections of this ordinance since the same would have been enacted by the City Council without the incorpo- ration of this ordinance of any such unconstitutional phrase, clause, sentence, paragraph, or sec- tion. SECTION 4. That this ordinance shall become effective fourteen (14) days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this ordin- ance to be published twice in the Denton Record-Chronicle, the official newspaper of the City of Denton, Texas, within ten days of the date of its passage. PASSED AND APPROVED this the day of , 2009. MARK A. BURROUGHS, MAYOR 3 ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: 4 Exhibit 2 Water Conservation and Drought Contingency Plan Update Revisions 1. No revisions were made to the current Drought Contengency Plan. 2. Revise reference to Irrigation and Water Waste Ordinance (Section 5.3): The 2005 plan was finalized before the water waste ordinance was passed and implemented. This section now describes the actual plan instead of the proposed plan. 3. Expand customer water audit reference (Section 5.5): This section previously described only residential water audit procedurese. It now includes a mention of expanding audits to commercial customers. 4. New park and athletic field conservation Best Management Practive (BMP) added (Section 5.6): The only new conservation measure in the plan is to ensure that parks, athletic fields, and golf courses are irrigating efficiently and using appropriate landscape and turf practices. 5. Update water conservation goals (Section 3.2): The 2005 Plan set a goal of 1 percent reduction in gpcd per year from a base of 189 gpcd in 2000. This revises the plan goals to: 2009 - 180 gpcd 2014 - 170 gpcd 2019 - 161 gpcd Our gpcd trend, calculated on a five-year rolling average, has gone from a high of 184 gpcd at the end of 2001, to a low of 173 gpcd at the end of 2007. This number rose to 177 by Nov 2007, but has fallen back to 173 gpcd in Sep 2008. 6. Update block rate tables, insert commercial irrigation table (Section 3.7): This change reflects the new block rate added in the rate schedule and the addition of seasonal pricing for commercial irrigation meters. 7. Insert wholesale provider rules references (Sections 3.0 and 6.2): The 2005 Plan already included content required of wholesale water providers, but did not reference applicable TCEQ Rules 288.5, Water Conservation Plans for Wholesale Water Suppliers; and 288.22, Drought Contingency Plans for Wholesale Water Suppliers EXHIBIT 3 Water Conservation and Drought Contingency Plan City of Denton CITY OF DENTON Water Conservation and Drought Contingency Plan April 2009 1. INTRODUCTION AND OBJECTIVES Water supply has always been a key issue in the development of Texas. In recent years, the increasing population and economic development in Region C have led to growing demands for water. Additional supplies to meet higher demands will be expensive and difficult to develop. Therefore, it is important that we make efficient use of existing supplies and make them last as long as possible. This will delay the need for new supplies, minimize the environmental impacts associated with developing new supplies, and delay the high cost of additional water supply development. Recognizing the need for efficient use of existing water supplies, the Texas Commission on Environmental Quality (TCEQ) has developed guidelines and requirements governing the development of water Conservation and drought contingency plans for public water suppliers.' The TCEQ guidelines and requirements for water suppliers are included in Appendix B. The City of Denton has adopted this water conservation and drought contingency plan pursuant to TCEQ guidelines and requirements. The objectives of the water conservation plan are: • To reduce water consumption. • To reduce the loss and waste of water. • To identify the level of water reuse. • To improve efficiency in the use of water. • To extend the life of current water supplies by reducing the rate of growth in demand. The objectives of the drought contingency plan are: • To conserve the available water supply in times of drought and emergency • To maintain supplies for domestic water use, sanitation, and fire protection • To protect and preserve public health, welfare, and safety • To minimize the adverse impacts of water supply shortages • To minimize the adverse impacts of emergency water supply conditions. Water Conservation and Drought Contingency Plan City of Denton 2. TEXAS COMMISSION ON ENVIRONMENTAL QUALITY RULES 2.1 Conservation Plans The TCEQ rules governing development of water conservation plans for public water suppliers are contained in Title 30, Part 1, Chapter 288, Subchapter A, Rule 288.2 of the Texas Administrative Code, which is included in Appendix B. For the purpose of these rules, a water conservation plan is defined as: "A strategy or combination of strategies for reducing the volume of water withdrawn from a water supply source, for reducing the loss or waste of water, for maintaining or improving the efficiency in the use of water, for increasing the recycling and reuse of water, and for preventing the pollution of water. A water conservation plan may be a separate document identified as such or may be contained within another water management document(s)."l According to TCEQ rules, water conservation plans for public water suppliers must have a certain minimum content (Section 3), must have additional content for public water suppliers that are projected to supply 5,000 or more people in the next ten years (Section 4), and may have additional optional content (Section 5). 2.2 Drought Contingency Plans The TCEQ rules governing development of drought contingency plans for public water suppliers are contained in Title 30, Part 1, Chapter 288, Subchapter B, Rule 288.20 of the Texas Administrative Code, which is included in Appendix B. The rules for wholesale water suppliers are contained in Rule 288.22, included in Appendix B. For the purpose of these rules, a drought contingency plan is defined as: "A strategy or combination of strategies for temporary supply and demand management responses to temporary and potentially recurring water supply shortages and other water supply Emergencies. A drought contingency plan may be a separate document identified as such or may be contained within another water management document(s)."l The drought contingency plan for the City of Denton is contained in Section 6 of this water conservation and drought contingency plan. Water Conservation and Drought Contingency Plan City of Denton 3. MINIMUM REQUIRED WATER CONSERVATION PLAN CONTENT The minimum requirements in the Texas Administrative Code for water conservation plans for public drinking water suppliers covered in this report are as follows: • §288.2(a)(1)(A) - Utility Profile - Section 3.1 and Appendix C • §288.2(a)(1)(B) - Specification of Goals Before May 1, 2005 - Section 3.2 • §288.2(a)(1)(C) - Specification of Goals After May 1, 2005 - Section 3.2 • §288.2(a)(1)(D) - Accurate Metering - Sections 3.3 and 3.4 • §288.2(a)(1)(E) - Universal Metering - Section 3.4 • §2 88.2 (a) (1) (F) - Determination and Control of Unaccounted Water - Section 3.5 • §288.2(a)(1)(G) - Public Education and Information Program - Section 3.6 • §288.2(a)(1)(H) - Non-Promotional Water Rate Structure - Section 3.7 • §288.2(a)(1)(I) - Reservoir System Operation Plan - Section 3.8 • §288.2(a)(1)(J) - Means of Implementation and Enforcement- Section 3.9, • Appendix D • §288.2(a)(1)(K) - Coordination with Regional Water Planning Group - Section • 3.10 and Appendix E TCEQ places additional requirements on wholesale water suppliers in Title 30, Part 1, Chapter 288, Subchapter B, Rule 288.5 of the Texas Administrative Code. This Rule is included in Appendix B. TCEQ's minimum requirements for water conservation plans are addressed in the following subsections of this report: • 288.5(1)(C) -Maximum Acceptable Unaccounted-For Water Goal -Section 3.5 3.1 Utility Profile Appendix C to this water conservation plan is a water utility profile for the City of Denton, based on the format recommended by the TCEQ.2 3.2 Specification of Water Conservation Goal Specific elements of the Water Conservation Plan are discussed in the subsequent sections of this document. The development of this plan involved the identification and examination of numerous conservation strategies. The conservation strategies chosen for the plan were derived from numerous Water Conservation and Drought Contingency Plan City of Denton sources including state agency recommendations, the Region C planning group, water conservation literature, and the City's existing Water Conservation Plan. Prior to 2005, Denton's water conservation goal was a 15 percent reduction in per capita water use by 2050. This goal was established in Denton's Water Conservation and Drought Contingency Plan adopted December 7, 1999. The City's water conservation goals after May 1, 2005 include the following: • Achieve 2009 per capita water use of 180 gpcd or less, as shown in Table 3-2 (current target). This represents a reduction of 9 gpcd from year 2000per-capita water use. • Achieve 2014 per capita water use of 171 gpcd or less, as shown in Table 3-2 (five-year target). This represents a reduction of 18 gpcd from the year 2000 per-capita water use. • Achieve 2019 per capita water use of 162 gpcd or less, as shown in Table 3-2 (ten-year target). This represents a reduction of 27 gpcd from year 2000 per-capita water use The City's conservation goal was articulated in 2005 as a one percent reduction yearly in per-capita usage for ten years. This goal was based on: 1) per-capita reduction goals recommended by the Texas Water Development Board's Task Force on Water Conservation; and 2) an indication in recent data that per capita water demand had started to decline. However, weather patterns over the same period of time were such that declining per capita consumption may have been weather related. Denton's specific goal of a one percent reduction of per-capita per year in the first five years, based on estimated savings from current conservation measures, a lawn and landscape irrigation ordinance, and moderate growth in Denton's reuse program, was mildly exceeded, with a per-capita savings by 2008 at 10 gpcd. This savings is a reflection of the effects of conservation programs referenced above, but could also have been caused by weather variability. Current conservation measures include savings from state required low-flow plumbing fixtures, the implementation of the federal clothes washer standards, increasing water prices over time, and the water conservation components of Denton's current plan (detailed in the following sections of the Plan). By the year 2014, the second required evaluation and update period of the plan, meeting the one percent reduction in per-capita per year would result in a per capita water savings of approximately 18 gallons per day. This might require the implementation of additional conservation measures being considered by the city. Water Conservation and Drought Contingency Plan City of Denton The specific per-capita water use reduction estimates in Table 3-2 are based largely on the Region C planning group water savings estimates for Denton. However, Denton's estimates are slightly more conservative than the estimates provided by Region C. Table 3-1. Five and Ten Year Water Savings Targets Unit Unit 2000 2005 2009 2014 2019 City of Denton Population 80,537 98,965 Gallons per Capita per Day gpcd 189 179 Savings from low-flow fixtures and gpcd 5.4 11.8 14.8 Federal Clothes Washer Standard Savings from Conservation Measures gpcd 2.6 4.2 9.2 Savings from Reuse gpcd 1 2 3 Projected Per-Capita Savings gpcd 9 18 27 Projected Per-Capita Reduction percent 5% 10% 15% Actual Per-Capita Savings gpcd 10 Actual Per-Capital Reduction percent 5.3% 3.3 Accurate Metering of Raw Water Supplies and Treated Water Deliveries The City of Denton meters all raw water diversions from Lake Lewisville and Lake Ray Roberts to each of the Water Treatment Plants. The City of Denton also meters all treated water deliveries to the distribution system from each water treatment plant. Each meter has an accuracy of plus or minus one percent. The meters are calibrated on a semiannual basis by City of Denton personnel to maintain the required accuracy and are repaired or replaced as needed. 3.4 Metering of Customer and Public Uses and Meter Testing, Repair, and Replacement Water usage for all customers of the City of Denton, including public and governmental use, is metered. As part of the water conservation plan, the City of Denton will continue to implement a meter replacement program. Denton Water Utility (DWU) staff conducted an extensive study in 2004 in which over 2000 water meters were bench tested for accuracy. In addition a cost-benefit analysis was conducted in order to maximize the efficiency of the meters versus the costs of the replacement program. Based on the study, 34 Water Conservation and Drought Contingency Plan City of Denton to 2-inch meters are replaced on a twelve to fourteen-year cycle. The program focused on replacing the oldest meters in the system first. From 2004 to 2008 DWU has replaced meters to meet the twelve to fourteen-year cycle. Meters that are 3-inch or larger are tested every one to two years and repaired or replaced as necessary. In addition, meters registering any unusual or questionable readings are automatically flagged in the billing process and be tested and repaired to restore full functionality. 3.5 Determination and Control of Unaccounted Water In 2003, the Texas Water Code (Chapter 16.0121) was amended to require that every five years a retail public utility that provides potable water shall perform and file with the Texas Water Development Board (TWDB) a water audit computing the utility's most recent annual system water loss. DWU filed its first audit, covering Fiscal Year 2005 in the spring of 2006. The next submittal is required in 2011. DWU staff performs a yearly water audit, using the International Water Association/ American Water Works Association (IWA/AWWA) method required by the TWDB. DWU staff has been conducting water audits since the early 1990's. Historically, The City of Denton's unaccounted-for water, based on the older American Water Works Association (AWWA) water audit methodology, has always been less than ten percent, below the AWWA goal. The City of Denton unaccounted-for water is also below the national average of twelve percent The City of Denton's system has always met the suggested targets of the newer IWA/AWWA methodology as specified by the TWDB Task Force on water conservation. Historically, the City of Denton's unaccounted-for water, based on the older AWWA water audit methodology, has also been less than ten percent, below the AWWA goal. The City of Denton's unaccounted-for water was also below the national average of twelve percent. The City of Denton will continue to conduct annual water audits using the IWA/AWWA methodologies. Unaccounted-for water for the City of Denton has varied from 1.5 percent to 3.5 percent in the last five years. Previous audits led to the discovery and correction of a systematic source metering error at the Ray Roberts Water Treatment Plant. Staff will continue to conduct comprehensive water audits annually and take appropriate measure to minimize system water loss. With the measures described in this plan, the City of Denton intends to maintain the unaccounted-for water below 10 percent in any given year. Water Conservation and Drought Contingency Plan City of Denton 3.6 Continuing Public Education and Information Campaign The continuing public education and information campaign on water conservation for the City of Denton includes the following elements: • Promote the City's water conservation measures (presented in Sections 3, 4, and 5). • Include inserts on water conservation with water bills at least twice per year. Inserts will include material developed by City of Denton staff and material obtained from the TWDB, the TCEQ, and other sources that pertain to water conservation, irrigation conservation, and protecting pipes from freezing. • Encourage local media coverage of water conservation issues and the importance of water conservation. • Make the Texas Smartscape CD, water conservation brochures, and other water conservation materials available to the public at the City of Denton Utility Department, other City facilities, and at special events. • Provide a Xeriscape class once a year to promote conservation landscaping and conservation irrigation practices. • Make information pertaining to water conservation and irrigation conservation available online a www.cityofdenton.com and include links to the Texas Smartscape website and to information relating to water conservation on the TWDB and TCEQ web sites. • Presentations are available to local organizations, schools, and civic groups on the importance of water conservation and ways to save water. 3.7 Non-Promotional Water Rate Structure With the intent of encouraging water conservation and discouraging waste and excessive use of water, the City of Denton adopted an increasing block (inverted-block) rate in 1998. In an inverted-block structure the unit price of water increases with increasing water use. The City of Denton employs an inverted-block rate from May through October. The structure consists of three blocks (Table 5-2). The first block provides enough water to cover a typical household's water usage, which includes a moderate amount for irrigation. The second, third, and fourth blocks are designed to curb discretionary and seasonal outdoor water use. The inverted-block structure only applies to residential customers. DWU bills commercial customers on a flat rate, but has implemented seasonal pricing on commercial irrigation meters to curb summer peak demand. Water Conservation and Drought Contingency Plan City of Denton TABLE 5-2 DWU Block Rate Structure Less than 15,000 gals $2.75 per thousand gallons 15,001- 30,000 gals $4.00 30,000-50,000 gals $5.00 More than 50,000 gals $6.00 TABLE 5-3 DWU Seasonal Commercial Irrigation Rates Winter Summer (May-October) $3.05 per thousand gallons $3.70 per thousand gallons 3.8 Reservoir System Operation Plan The City of Denton has the following rights to divert water from Lake Ray Roberts and Lake Lewisville: • 9.76 MGD from Lake Ray Roberts • 4.34 MGD from Lake Lewisville The City of Denton is the minority water right holder in both reservoirs. The current agreement with the City of Dallas (majority water right holder) delegates comprehensive coordination of reservoir management to the City of Dallas. 3.9 Implementation and Enforcement of the Water Conservation Plan Appendix D contains a copy of the resolution of the City of Denton City Council adopting this water conservation and drought contingency plan. The resolution designates responsible officials to implement and enforce the water conservation and drought contingency plan. 3.10 Coordination with Regional Water Planning Group The City of Denton will provide a copy of this water conservation and drought contingency plan to the Region C Water Planning Group, which is currently developing the Regional Water Plan. Appendix E includes a copy of a letter sent to the Chair of the Region C Water Planning Group. Water Conservation and Drought Contingency Plan City of Denton 4. ADDITIONAL REQUIRED WATER CONSERVATION PLAN CONTENT The Texas Administrative Code also includes additional requirements for water conservation plans for public drinking water suppliers that serve a population of 5,000 people or more and/or a projected population of 5,000 people or more within the next ten years: • §288.2(a)(2)(A) - Leak Detection, Repair, and Water Loss Accounting - Sections 3.5, 4.1, and 5.5 • §288.2(a)(2)(B) -Record Management System -Section 4.2 • §288.2(a)(2)(C) -Requirement for Water Conservation Plans by Wholesale Customers -Section 4.3 4.1 Leak Detection and Repair; Pressure Control Measures to control unaccounted-for water are part of the routine operations of the City of Denton. Meter readers, water and wastewater utility personnel, and the public report leaks in the system. Maintenance crews are on-call 24-hours a day and respond quickly to repair reported leaks. DWU has recently invested in leak detection and correlator equipment that will help in identifying more leaks and locating leaks more accurately for repair. The City of Denton also proactively decreases water loss through the waterline replacement program. The City of Denton spends approximately $1.5 million per year to repair and replace water distribution lines with two construction and maintenance crews. Areas of the water distribution system in which numerous leaks and line breaks occur are targeted for replacement. To reduce real water losses, the City of Denton will maintain a proactive water loss program. As part of this program, the City will implement the following actions: • Continue to implement the waterline replacement program; • Conduct inspections of transmission lines; and • Conduct regular inspections of all water main fittings and connections during periods of maintenance and repair. 4.2 Record Management System As required by TAC Title 30, Part 1, Chapter 288, Subchapter A, Rule 288.2(a)(2)(B), the record management system for the City of Denton records water pumped, water delivered, and water sold. However, the City of Denton's record management system does not allow for the separation of water sales and uses into residential, commercial, public/institutional, and industrial categories as required. Water Conservation and Drought Contingency Plan City of Denton The current billing system separates sales and uses into residential, commercial, and wholesale user classes. Staff is investigating available options to bring the record management system into compliance. 4.3 Requirement for Water Conservation Plans by Wholesale Customers Each contract for the wholesale sale of water by the City of Denton will include a requirement that the wholesale customer develop and implement a water conservation plan meeting the requirements of Title 30, Part 1, Chapter 288, Subchapter A, Rule 288.2(a)(2)(c) of the Texas Administrative Code. If the customer intends to resell the water, then the contract between the initial supplier and customer must provide that the contract for the resale of the water must have water conservation requirements so that each successive customer in the resale of the water will be required to implement water conservation measures in accordance with applicable provisions of Chapter 288. Water Conservation and Drought Contingency Plan City of Denton 5. OPTIONAL WATER CONSERVATION PLAN CONTENT TCEQ rules also list optional (not required) conservation strategies, which may be adopted by suppliers to achieve the stated goals of the plan. The following optional strategies are listed in the rules; some are not included in this plan: • §288.2(a)(3)(A) - Conservation Oriented Water Rates - Section 3.7 • §288.2(a)(3)(B) - Ordinances, Plumbing Codes or Rules on Water-Conserving Fixtures - Section 5.1 • §288.2(a)(3)(C) - Programs for the Replacement or Retrofit of Water-Conserving Plumbing Fixtures in Existing Structures - (Not included in plan) • §288.2(a)(3)(D) - Reuse and Recycling of Wastewater - Section 5.2 • §288.2(a)(3)(E) - Pressure Control and/or Reduction - (Not included in plan) • §288.2(a)(3)(F) - Landscape Water Management Ordinance - Section 5.3 • §288.2(a)(3)(G) - Monitoring Method - Section 5.4 • §288.2(a)(3)(H) - Other Conservation Methods - Section 5.5 and 5.6 5.1 Ordinances, Plumbing Codes, or Rules on Water-Conserving Fixtures The State of Texas has required 2.5 gpm faucets, 3.0 gpm showerheads, and 1.6 gpf toilets for new construction since 1992. Similar standards are also required under federal law. Denton's Plumbing Code complies with the State of Texas requirements. In addition, the implementation of the federal rules requiring energy-conserving clothes washers in 2007 will improve the water-efficiency of residential clothes washers. 5.2 Reuse and Recycling of Wastewater The City of Denton's current reuse program delivers approximately 0.5 MGD of reclaimed wastewater effluent. The current distribution system has a maximum capacity of 4.0 MGD. The City of Denton is estimating that reuse will increase to 2 MGD by 2014 and 3 MGD by 2019... 5.3 Landscape Management Ordinance As part of the development of this water conservation plan, the City of Denton has implemented a lawn and landscape irrigation and water waste ordinance. This ordinance is intended to minimize waste in landscape irrigation and other uses. The ordinance was implemented in 2006, during a drought period when public awareness of the drought was high. The ordinance includes the following elements: Water Conservation and Drought Contingency Plan City of Denton • Prohibition of outdoor watering, except by hand and for watering foundations, from 10:00 a.m. to 6:00 p.m. every day from June 1 through September 30. • Requirement that all new irrigation systems include rain and freeze sensors. • Prohibition of designs and installations that spray directly onto impervious surfaces such as sidewalks and roads or onto other non-irrigated areas. • Prohibition of use of poorly maintained sprinkler systems that waste water. • Requirement that any outside faucet or service line leak be repaired • Enforcement of the ordinance by a system of warnings followed by fines for continued or repeat violations. 5.4 Monitoring Method Until such time as there is an industry wide method for monitoring per-capita the City of Denton will use the five-year rolling average suggested by the Texas Water Development Board. 5.5 Customer Water Audit The City of Denton will continue to conduct water audits for single- and multi-family residential customers. The four main purposes are to: educate customers about conservative water use habits and replacement of inefficient toilets, clothes washers, and dishwashers; educate customers about water-efficient showerheads and faucet aerators; identify leaks; and optimize irrigation water usage. The City's auditor will review the water use habits of the customer, inspect the system for leaks and excessive use, and recommend any equipment repairs or changes to increase the efficiency of both the domestic and irrigation water systems. Although overall water savings from residential water audits are minimal, residential water audits are crucial to maintaining good customer relations particularly related to high billing complaints. In addition, DWU will continue to explore ways to enhance the usefulness of customer water audits in saving water, while expanding audit services to commercial customers. 5.6 Park and Athletic Field Conservation The City of Denton will explore the possibility of additional savings by the proper management of park and athletic field irrigation, landscape, and turf practices. The Texas Water Development Board Water Conservation Best Management Practices Guide includes guidelines for water conservation in parks and athletic fields.3 DWU will work with other city departments to determine the potential for water and cost savings by proper management practices and implement them when practical. Water Conservation and Drought Contingency Plan City of Denton 6. DROUGHT CONTINGENCY PLAN 6.1 Introduction The purpose of this drought contingency plan is as follows: • To conserve the available water supply in times of drought and emergency • To maintain supplies for domestic water use, sanitation, and fire protection • To protect and preserve public health, welfare, and safety • To minimize the adverse impacts of water supply shortages • To minimize the adverse impacts of emergency water supply conditions. 6.2 State Requirements for Drought Contingency Plans This drought contingency plan is consistent with Texas Commission on Environmental Quality (TCEQ) guidelines and requirements for the development of drought contingency plans by public drinking water suppliers, contained in Title 30, Part 1, Chapter 288, Subchapter B, Rule 288.20 of the Texas Administrative Code. This rule is included in Appendix B. TCEQ's minimum requirements for drought contingency plans are addressed in the following subsections of this report: • 288.20(a)(1)(A) - Provisions to Inform the Public and Provide Opportunity for Public Input - Section 6.3 • 288.20(a)(1)(B) - Provisions for Continuing Public Education and Information - Section 6.4 • 288.20(a)(1)(C) - Coordination with the Regional Water Planning Group - Section 6.9 • 288.20(a)(1)(D) - Criteria for Initiation and Termination of Drought Stages - Section 6.5 • 288.20(a)(1)(E) - Drought and Emergency Response Stages - Section 6.6 • 288.20(a)(1)(F) - Specific, Quantified Targets for Water Use Reductions - Section 6.6 • 288.20(a)(1)(G) - Water Supply and Demand Management Measures for Each Stage - Section 6.6 • 288.20(a)(1)(H) - Procedures for Initiation and Termination of Drought Stages - Section 6.6 • 288.20(a)(1)(I) - Procedures for Granting Variances - Section 6.8 • 288.20(a)(1)(J) - Procedures for Enforcement of Mandatory Restrictions - Section 6.7 • 288.20(a)(3) - Consultation with Wholesale Supplier - Not applicable • 288.20(b) - Notification of Implementation of Mandatory Measures - Section 6.6 Water Conservation and Drought Contingency Plan City of Denton 288.20(c) - Review and Update of Plan - Section 6.10TCEQ places additional requirements on wholesale water suppliers in Title 30, Part 1, Chapter 288, Subchapter B, Rule 288.22 of the Texas Administrative Code. This Rule is included in Appendix B. TCEQ's minimum requirements for drought contingency plans are addressed in the following subsections of this report: • 288.22(a)(1) - Provisions to Inform Wholesale - Section 6.3 • 288.22(a)(7) - Water Supply and Demand Management Measures Conform to Texas Water Code 11.039 - Section 6.6 • 288.22(a)(8) - Wholesale Contract Supply Provisions Conform to Texas Water Code 11.039 - Section 6.6 6.3 Provisions to Inform the Public and Opportunity for Public Input The City of Denton provided opportunity for public input in the development of this drought contingency plan in April of 2008 by the following means: • Provided written notice of the proposed plan and the opportunity to comment on the plan by newspaper, posted notice, and notice on City of Denton's web site, www.cityofdenton.com • A public meeting was held at City of Denton Service Center at xxx AM on April xxx, 2009. • The public may comment on updates to the plan. • The plan will be available at the City of Denton's web site www.cityofdenton.com • The plan will be provided to anyone requesting a copy. • The plan will be provided to Upper Trinity Regional Water District in its capacity as a wholesale customer. The City of Denton shares water rights with the City of Dallas. Denton is the minority water right holder in both water supply reservoirs. Also, Denton is a wholesale customer of the City of Dallas. Due to these factors, it is by design that Denton's Drought Contingency Plan closely resembles Dallas' plan. Revisions in this plan are reflective of 2005 changes in the Dallas plan. The need to coordinate Denton's Plan with the Dallas plan is appropriate due to the following reasons: • The water supply reservoirs (Lake Ray Roberts and Lake Lewisville) are shared by the two cities and Denton is the minority water rights holder in both reservoirs, Denton is an untreated water Water Conservation and Drought Contingency Plan City of Denton supply customer of Dallas and will be affected by restrictions that may be initiated by the Dallas plan. • Consistent communication to customers in a television and media market common to many different water utility entities will provide for a more effective implementation of Drought Contingency Plans. 6.4 Provisions for Continuing Public Education and Information The City of Denton will inform and educate the public about its drought contingency plan by the following means: • Making the plan available to the public through the City of Denton web site at www.cityofdenton.com. • Including information about the drought contingency plan on the City of Denton's web site, www.cityofdenton.com. • Upon request, make presentations to local organizations, schools, and civic groups on the drought contingency plan (usually in conjunction with presentations on water conservation programs). • Open public meetings with the Public Utilities Board, Environment Committee, and City Council. Any time the drought contingency plan is activated or the drought stage changes, the City of Denton will notify local media of the issues, the drought response stage, and the specific actions required of the public. The information will also be publicized on the City of Denton web site, www.cityofdenton.com. Billing inserts will be used as appropriate. 6.5 Initiation and Termination of Drought Response Stages 6.5.1 Initiation of Drought Response Stages The Director of Water Utilities or designee may order the implementation of a drought response stage or water emergency when one or more of the trigger conditions for that stage is met. The following actions will be taken when a drought stage is initiated: • The public will be notified through local media. • Wholesale customers will be notified by telephone with a follow-up letter or fax. • If any mandatory provisions of the drought contingency plan are activated, the City of Denton will notify the Executive Director of the TCEQ within 5 business days. Water Conservation and Drought Contingency Plan City of Denton The Director of Water Utilities or designee may decide not to order the implementation of a drought response stage or water emergency even though one or more of the trigger criteria for the stage are met. Factors that could influence such a decision include, but are not limited to, the time of the year, weather conditions, the anticipation of replenished water supplies, or the anticipation that additional facilities will become available to meet needs. Trigger Condition Types: The three types of water management conditions are discussed below: For a Type A situation, preservation of the total water supply will be critical and corresponding water management measures should stress overall reductions in water use. This condition is results from extended drought. The best opportunity to respond to a drought is early in the drought cycle. Drought Contingency measures should stress overall reductions in water demand (i.e., average-day water demand). For a Type B situation, in which the water demand approaches the delivery capacity of the system, the peak water demand will be critical, and corresponding drought contingency measures should stress water-use reductions or shifts to off-peak hours. In this situation, the ultimate goal of Stages 1, 2, and 3 will be to avoid triggering the next stage. A Stage 4 trigger requires immediate and severe water demand reductions. Equipment or system failures that result from increased stresses to the transmission, treatment, or distribution systems can worsen a Type B situation. This condition is a result of an increase in demand. In the short term, this typically occurs during the summer months when irrigation requires more water. In the long term, it could occur if treatment plant or distribution system expansions do not keep pace with the growth in consumer demand. Drought contingency measures should stress reductions in peak water demand or redistribution of the demand to off-peak hours. For a Type Csituation where deficiencies limit the supply capacity, both water-use reductions and shifts to off-peak hours may be necessary. Although the area involved may be localized, immediate action requiring water demand reduction is necessary. Depending upon the severity of the triggering conditions, it is feasible that the plan could proceed immediately to implementation of stage 3 or stage 4. This condition is a result of a break in a large transmission main, mechanical failure to one or more large pumps, or production plant breakdown. Contamination of water supplies or other unforeseen occurrences may also instigate this condition. They may arise with little warning and require immediate and/or aggressive actions. Water Conservation and Drought Contingency Plan City of Denton Drought contingency measures should stress reductions in peak water demand and/or redistribution of the demand to off-peak hours. 6.5.2 Termination of Drought Response Stages The Director of Water Utilities or designee may order the termination of a drought response stage or water emergency when the conditions for termination are met or at his/her discretion. The following actions will be taken when a drought stage is terminated: • The public will be notified through local media. • Wholesale customers will be notified by telephone with a follow-up letter or fax. • When any mandatory provisions of the drought contingency plan that have been activated are terminated, the City of Denton will notify the Executive Director of the TCEQ within 5 business days. The Director of Water Utilities or designee may decide not to order the termination of a drought response stage or water emergency even though the conditions for termination of the stage are met Factors that could influence such a decision include, but are not limited to, the time of the year, weather conditions, or the anticipation of conditions that warrant the continuation of the drought stage. 6.6 Drought and Emergency Response Stages 6.6.1 Stage 1, Mild 6.6.1.1 TRIGGERING AND TERMINATION CONDITIONS FOR STAGE 1, MILD 6.6.1.1.1 TypeA Water Management Condition Total raw water supply in Denton and Dallas connected lakes drops below 65% of the total conservation storage 6.6.1.1.2 Type B Water Management Condition Water demand reaches or exceeds 85% of delivery capacity for 4consecutive days 6.6.1.1.3 Type C Water Management Condition Water demand approaches a reduced delivery capacity for all or part of the system, as determined by DWU Requirements for Termination: Stage 1 may be terminated when Stage 1 conditions no longer exist and would be unlikely to recur upon termination. Water Conservation and Drought Contingency Plan City of Denton 6.6.1.2 GOAL FOR USE RED UCTIONS AND ACTIONS AVAILABLE UNDER STAGE 1, MILD The goal for water use reduction under Stage 1, Mild, is a 5 percent reduction of the use that would have occurred in the absence of drought contingency measures. The purpose of actions under Stage 1 is to raise public awareness of potential drought problems. The Director of Water Utilities or designee can order the implementation of any of the actions listed below, as deemed necessary: Voluntary Water Use Restrictions for Reducing Demand: Following is a menu of possible actions. The Director of Water Utilities will determine specific actions taken during any drought situation. The Director may also take other actions not listed, if deemed necessary. All Water Users (a) Encourage reduction in frequency of watering new and first year landscaping and foundations. (b) Encourage only initial filling of ornamental fountains. (c) Encourage reduction in frequency of washing or rinsing of vehicles and recommend use of bucket/container, hand-held hose with positive shut-off valve or commercial car wash. (d) Encourage reduction in frequency in draining and refilling of swimming pools. (e) Encourage reduction in frequency of recreational water use including use of faucets, hoses or hydrants. City Government (a) Initiate public education campaign teaching and encouraging reduced water use practices. (b) Intensify normal leak detection and repair activities on water pipes and mains. (c) Encourage reduction of water use in city-owned ornamental fountains. (d) Encourage reduction in landscape uses for parks and golf courses. (e) Staff will begin review of the problems initiating Stage 1 actions and will identify possible solutions to address the water shortage. (f) Only flush newly constructed mains and mains that are essential for water quality maintenance. Commercial Customers (a) Identify and encourage voluntary reduction measures by high-volume water users. (b) Encourage reduction in landscape uses for parks and golf courses. (c) Encourage reduction in water use for landscape nursery stock. Interruptible Customers (a) Reduce usage for interruptible customers per contract terms. Water Conservation and Drought Contingency Plan City of Denton Wholesale Customer Cities (a) Encourage implementation of like procedures by wholesale customers. NOTIFICATIONS City of Denton • Notify major City departments, by telephone and follow-up memo, of Water Awareness Stage #1 and request voluntary water use reduction. • Stress voluntary elimination of non-essential uses. External Customers • Issue press release, radio and video public service announcement to area media describing Water Awareness Stage #1 and the voluntary restrictions that apply. • Distribute water conservation materials to Denton Independent School District, UNT, TWU and community groups if appropriate • Post Water Awareness notices at public buildings including city buildings, county buildings and the federal post office. • Encourage reduction of water use through the publication of the voluntary landscape watering schedule and request watering only during off-peak hours. Wholesale Customers • Advise wholesale customers by telephone and follow-up memo, of Water Awareness Stage #1 and request voluntary water use reduction consistent with actions taken by the City of Denton. PENALTIES No penalties enforced at this time. 6.6.2 Stage 2, Moderate 6.6.2.1 TRIGGERING CONDITIONS FOR STAGE 2, MODERATE 6.6.2.1.1 Type A Water Management Condition Total raw water supply in Denton and Dallas connected lakes drops below 55% of the total conservation storage 6.6.2.1.2 Type B Water Management Condition Water demand reaches or exceeds 90% of delivery capacity for 3 consecutive days Water Conservation and Drought Contingency Plan City of Denton 6.6.2.1.3 Type C Water Management Condition Water demand equals a reduced delivery capacity for all or part of the system, as determined by DWU Requirements for Termination: Stage 2 may be terminated when Stage 2 conditions no longer exist and would be unlikely to recur upon termination. 6.6.2.2 GOAL FOR USE REDUCTIONAND ACTIONS A VAILABLE UNDER STAGE 2, MODERATE The goal for water use reduction under Stage 2, Moderate, is a 10 percent reduction of the use that would have occurred in the absence of drought contingency measures. The Director of Water Utilities or his/her designee can order the implementation of any of the actions listed below, as deemed necessary: Water Use Restrictions for Demand Reduction: Following is a menu of possible actions. The Director of DWU will determine specific actions taken during any drought situation. The Director may also take other actions not listed, if deemed necessary. All Water Users (a) Request that recreational water use including use of faucets, hoses or hydrants, which use water in such a manner as to allow run-off or other wastes be limited to the day of week watering schedule. (b) Request that washing of any motor vehicle, bike, trailer, boat or airplane be limited to the day of week watering schedule. (c) Request that all landscape watering be limited to the day of week schedule between the hours of 6:00 PM to 10:OOAM. Irrigation of landscaped areas with hose-end sprinklers or automatic irrigation systems should be limited to Sundays and Thursdays for customers with a street address ending in an even number (0, 2, 4, 6 or 8) and for locations without addresses, and Saturdays and Wednesdays for water customers with a street address ending in an odd number (1, 3, 5, 7 or 9). Apartments, office building complexes or other property containing multiple addresses may be identified by the lowest address number. Irrigation of landscaped areas is permitted at anytime if it is by means of a hand-held hose, a faucet filled bucket or drip irrigation system. (d) Request that irrigation of golf course greens, tees, and fairways be limited to the day of week schedule. (e) Request that use of water to fill, refill, or add to any indoor or outdoor swimming, wading, or jacuzzi pools be limited to the day of week schedule. Water Conservation and Drought Contingency Plan City of Denton City Government (a) Staff will begin review of the problems initiating Stage 2 actions and will identify possible solutions to address the water shortage. (b) Accelerate public education campaign teaching and encouraging reduced water use practices. (c) Restrict flushing of new mains not immediately required to provide service. (d) Continue intensified leak detection and repair activities on water pipes and mains. (e) Prohibit operation of ornamental fountains by city government except where necessary to support aquatic life or where such fountains or ponds are equipped with a recirculation system. (f) City government restricted to day of week watering schedule except for parks and golf courses. (g) Encourage day of week watering schedule for parks and golf courses. (h) Increase enforcement efforts. (i) Washing of any city vehicle, bike, or trailer, limited to the day of week watering schedule. Prohibit excessive water run-off from any landscaped area onto streets, alleys, or parking lots. Run-off is excessive when it goes ten (10) feet beyond the property line. (j) Use of water from fire hydrants limited to fire fighting, essential distribution system (k) Restrict the flushing of fire hydrants, blow offs and service connections for new main construction by special permit only. (1) Prohibit hosing off paved areas, buildings, windows or other surfaces. Commercial Customers (a) Identify and encourage voluntary reduction measures by high-volume water users. (b) Encourage further reduction in landscape uses for parks and golf courses. (c) Encourage further reduction in landscape uses for nursery stock. Interruptible Customers (a) Reduce usage for interruptible customers per contract terms. Wholesale Customers (a) Require water demand reductions in accordance with contract obligations for wholesale customers. (b) Wholesale water systems asked to abide by City of Denton policy for both internal operations and all retail customers. Reduction in rate of flow controller settings by 10% -20% are optional. Water Conservation and Drought Contingency Plan City of Denton NOTIFICATIONS City of Denton • By telephone and attached follow-up memo, notify all major City department water users of Water Watch Stage #2 and the water use restrictions under this stage. Instruct them to implement restrictions on non-essential uses. Use city department contacts in Appendix F. • Coordinate distribution of water emergency plan details, posters, and handouts to customer service representatives, utility dispatch personnel and Denton public access buildings. Retail Customers • TCEQ notified of Stage 2 restrictions. • Issue press release, radio and video public service announcement to area media describing Water Watch Stage #2 and the water use restrictions under this stage. Keep media updated on the water situation. Use media contacts listed in Appendix F. • By telephone and follow-up letter, notify major area water users of Water Watch Stage #2 and the restrictions that apply. Use plant manager contacts listed in Appendix F • Accelerate public education campaign to promote and encourage efficient water use. • If applicable, notify the U.S. Corp of Engineers by telephone and follow-up letter of the Water Watch Stage #2 conservation measures. Wholesale Customers Advise wholesale customers by telephone and attached letter of the actions taken by the City of Denton in response to Water Watch Stage #2 and require the implementation of like procedures among their customers. Wholesale customer cities shall either impose water use restrictions equivalent to those imposed on Denton's retail customers OR where applicable, Denton may reduce rate-of-flow controller settings by 10% -20%. Use wholesale customer contacts in Appendix F. PENALTIES No penalties enforced at this time. Water Conservation and Drought Contingency Plan City of Denton 6.6.3 Stage 3, Severe 6.6.3.1 TRIGGERING CONDITIONS FOR STAGE 3, SEVERE 6.6.3.1.1 TypeA Water Management Condition Total raw water supply in Denton and Dallas connected lakes drops below 45% of the total conservation storage 6.6.3.1.2 Type B Water Management Condition Water demand reaches or exceeds 95% of delivery capacity for 3 consecutive days 6.6.3.1.3 Type C Water Management Condition • Water demand exceeds a reduced delivery capacity for all or part of the system, as determined by DWU • A major water line breaks, or a pump or system failure occurs, which cause unprecedented loss of capability to provide treated water service • Natural or man-made contamination of the water supply Requirements for Termination: Stage 3 may be terminated when Stage 3 conditions no longer exist and would be unlikely to recur upon termination. 6.6.3.2 GOAL FOR USE REDUCTIONAND ACTIONS A VAILABLE UNDER STAGE 3, SEVERE The goal for water use reduction under Stage 3, Severe, is a reduction of 15 percent of the use that would have occurred in the absence of drought contingency measures. If the circumstances warrant, the Director of Water Utilities or designee can set a goal for greater water use reduction. The Director of Water Utilities or his/her designee can order the implementation of any of the actions listed below, as deemed necessary. All Water Users (a) Irrigation of landscaped areas shall be limited to the day of week watering schedule between the hours of 6:00 PM and 10:00 AM. Irrigation of landscaped areas with hose-end sprinklers or automatic irrigation systems shall be limited to Sundays and Thursdays for customers with a street address ending in an even number (0, 2, 4, 6 or 8) and for locations without addresses, and Saturdays and Wednesdays for water customers with a street address ending in an odd number (1, 3, 5, 7 or 9), and irrigation of landscaped areas is further limited to the hours of 12:00 midnight until 10:00 a.m. and between 8:00 p.m. and 12:00 midnight on designated watering days. Apartments, office building complexes or other property containing multiple addresses may be Water Conservation and Drought Contingency Plan City of Denton identified by the lowest address number. Irrigation of landscaped areas is permitted at anytime if it is by means of a hand-held hose, a faucet filled bucket or drip irrigation system. (b) Use of water to wash any motor vehicle, motorbike, boat, trailer, airplane other vehicle not occurring on the premises of a commercial car wash and commercial service stations and not in the immediate interest of public health, safety, and welfare is prohibited. Further, such vehicle washing at commercial car washes and commercial service stations shall occur only between the hours of 6:00 PM to 10:00 AM. (c) The filling, refilling, or adding of water to swimming pools, wading pools, and Jacuzzi type pools is restricted to the day of week watering schedule. (d) Foundations may be watered for a two-hour period during off-peak hours with soaker or hand-held hose equipped with a positive shutoff nozzle on the watering schedule. (e) Operation of any ornamental fountain or pond for aesthetic or scenic purposes is prohibited except where necessary to support aquatic life or where such fountains or ponds are equipped with a recirculation system (f) No application for new, additional, expanded, or increased-in-size water Service connections, meters, service lines, pipeline extensions, mains, or water service facilities of any kind shall be approved, and time limits for approval of such applications are hereby suspended for such time as this drought response stage or a higher-numbered stage shall be in effect. (g) Permitting of new swimming pools, hot tubs, spas, ornamental ponds and fountain construction is prohibited. (h) Prohibit excessive water run-off from any landscaped area onto streets, alleys, or parking lots through code enforcement warnings. Run-off is excessive when it extends beyond ten (10) feet of the property line. City Government (a) Wet street sweeping and city vehicle washing or rinsing is prohibited. (b) Municipal landscape watering prohibited except golf courses (see below). (c) Watering of golf course greens and tee boxes restricted to off-peak hours; watering of other golf course areas and parks is prohibited. (d) Department staff implement a self audit and limit computerized water usage of city owned golf course greens, tees, fairways, sports facilities and recreation areas by 20% to 30% between the hours of 6pm to 10am on the posted five-day watering schedule. Watering with a hand-held hose or bucket can be done anytime. Water Conservation and Drought Contingency Plan City of Denton (e) Discontinue use of water for new water line construction purposes from fire hydrants, blow offs and service connections. Commercial Customers (a) Restrict watering of golf course greens and tee boxes restricted to off-peak hours; watering of other golf course areas and parks is prohibited unless the golf course utilizes a water source other than that provided by the City of Denton. (b) Watering of nursery plant stock restricted to designated off-peak hours and the day of week watering schedule. Interruptible Customers (a) Service to interruptible customers is temporarily suspended. Wholesale Customers (a) Same external restrictions apply to wholesale suppliers. NOTIFICATIONS City of Denton • Coordinate dissemination of water conservation plan details, posters, and handouts to customer service representatives, utility dispatch personnel and public access buildings. • By telephone and attached follow-up memo, notify all major City department users of Water Warning Stage #3 and of the water use restrictions under this stage. Instruct them to eliminate non-essential uses including street and vehicle washing and operation of ornamental fountains, and to implement restrictions on essential uses. Use same contacts as those listed in Appendix F. Retail Customers • TCEQ notified of Stage 3 restrictions. • Issue press release, radio and video public service announcement to area media describing Water Warning Stage #3 and the water use restrictions under this stage. Keep media updated on the water situation. Use same media contacts as those in Appendix F. • By telephone and follow-up letter, notify major water users of Water Warning #3 and the mandatory water use reduction. Use contacts listed in Appendix F. • Post Water Warning notices at public buildings including city buildings, county buildings, and the federal post office. Water Conservation and Drought Contingency Plan City of Denton • If applicable, notify U.S. Corps of Engineers by telephone and attached letter of the Water Warning Stage #3 conservation measures. Wholesale Customers • Advise wholesale customers by telephone and attached letter of the actions taken by the City of Denton in response to Water Warning Stage #3 and require the implementation of like procedures among their customers. Wholesale customer cities shall either impose water use restrictions equivalent to those imposed on Denton's retail customers OR where applicable, may reduce rate-of-flow controller settings by 20% -30%. Use wholesale customer contacts listed in Appendix F. PENALTIES • Initiate a 20% rate increase for residential customers for water usage greater than 30,000 gallons per account per 30 days. • Impose a 20% surcharge penalty for commercial and industrial customers for monthly water use above 80% of prior billing volumes for a 30-day period. • Initiate code enforcement fines for any violation of the Drought Contingency Plan. 6.6.4 Stage 4, Emergency 6.6.4.1 TRIGGERING CONDITIONS FOR STAGE 4, EMERGENCY 6.6.4.1.1 TypeA Water Management Condition Total raw water supply in Denton and Dallas connected lakes drops below 30% of the total conservation storage 6.6.4.1.2 Type B Water Management Condition Water demand reaches or exceeds 98% of delivery capacity for 2 consecutive days 6.6.4.1.3 Type C Water Management Condition Water demand seriously exceeds a reduced delivery capacity for all or part of the system, as determined by DWU 6.6.4.1 GOAL FOR USE REDUCTIONAND ACTIONS AVAILABLE UNDER STAGE 4, EMERGENCY The goal for water use reduction under Stage 4, Extreme, is a reduction of 25 percent of the use that would have occurred in the absence of drought contingency measures. Water Conservation and Drought Contingency Plan City of Denton Requirements for Termination: Stage 4 may be terminated when Stage 4 conditions no longer exist and would be unlikely to recur upon termination. All Users (a) Irrigation of landscaped areas is absolutely prohibited. (b) Use of water to wash any motor vehicle, motorbike, boat, trailer, airplane or other vehicle is absolutely prohibited. (c) Prohibit use of water from fire hydrants to fire fighting, essential distribution system maintenance and related activities. (d) Nurseries shall water plant stock only between the hours of 6 PM and 10 AM and must also adhere to the day of week watering schedule. (e) Residents shall limit foundation watering to a two-hour period on the day of week watering schedule between 6 PM to 10 AM with soaker or hand-held hose only. (f) Service to interruptible customers is temporarily suspended (g) Request a 25% reduction of indoor water uses. (h) Prohibit permitting of new swimming pools, hot tubs, spas, ornamental ponds, and fountain construction. NOTIFICATIONS City of Denton • By telephone and attached follow-up memo, notify all major City department water users of Water Emergency Stage #4 and of the water use restrictions under this stage. Instruct them to eliminate non-essential uses and to implement restrictions on essential uses. Use department contacts listed in Appendix F. • Coordinate dissemination of water conservation details, posters, and handouts to customer service representatives, utility dispatch personnel and Denton public access buildings. Retail Customers • TCEQ notified of Stage 4 restrictions. • Issue press release, radio and video public service announcement to area media describing Water emergency Stage #4 and the water use restrictions under this stage. Keep media updated on the water situation. Use same media contacts as those in Appendix F. Water Conservation and Drought Contingency Plan City of Denton • Post Water Emergency notices at public buildings, including city buildings, county buildings, and the federal post office. • By telephone and follow-up letter, notify major area water users of Water Emergency Stage #4 and mandatory cessation of all outside watering. Use plant manager contacts listed in Appendix F. • If applicable, notify U.S. Corps of Engineers by telephone and attached letter of the Water Emergency Stage #4 conservation measures. Wholesale Customers • Advise wholesale customers by telephone and attached letter of actions being taken by the City in response to Water Emergency Stage #4 and mandatory implementation of similar procedures among their customers. Wholesale customer cities shall impose water use restrictions equivalent to those imposed on Denton's retail customers or, where applicable, reduce their rate-of-flow controller settings by a percentage determined by the Director of Water Utilities. Appendix F lists wholesale customers that need to be contacted. PENALTIES • Impose a 20% rate increase for residential customers for water usage greater than 15,000 gallons per account per 30 days). • Impose a 20% surcharge penalty for commercial and industrial customers for monthly water use above 70% of prior billing volumes for a 30-day period. • *Initiate code enforcement fines for any violation of the Drought Contingency Plan. WATER ALLOCATION Retail Customers: During Stages 3 and 4 of the Drought Contingency Plan, the City may impose a retail water rate increase to discourage water use. Rates for residential customer usage more than 30,000 gallons per 30 days per account in Stage 3 or above 15,000 gallons per 30 days per account in Stage 4 may be increased by as much as twenty percent (20%). A similar twenty percent (20%) rate increase for commercial and industrial customers may be imposed for use exceeding 80% (Stage 3) and 70% (Stage 4) of prior billing volumes per 30-day period. Wholesale Customers In the event that the triggering criteria specified in Section 6 of the Plan for Stage 4 have been met, the Director is hereby authorized to initiate allocation of water supplies on a pro rata basis in accordance with Water Conservation and Drought Contingency Plan City of Denton the latest revision of Texas Water Code Section 11.039. Texas Water Code Section 1.039, Distribution of Water During Shortage, states: (a) If a shortage of water in a water supply not covered by a water conservation plan prepared in compliance with Texas Natural Resource Conservation Commission or Texas Water Development Board rules results from drought, accident, or other cause, the water to be distributed shall be divided among all customers pro rata, according to the amount each may be entitled to, so that preference is given to no one and everyone suffers alike. (b) If a shortage of water in a water supply covered by a water conservation plan prepared in compliance with Texas Natural resource Conservation Commission or Texas Water Development Board rules results from drought, accident, or other cause, the person, association of person, or corporation owning or controlling the water shall divide the water to be distributed among all customers pro rata, according to: 1. the amount of water to which each customer may be entitled; or 2. the amount of water to which each customer may be entitled, less the amount of water the customer would have saved if the customer had operated its water system in compliance with water conservation plan. (c) Nothing in Subsection (a) or (b) precludes the person, association of persons or corporation owning or controlling the water from supplying water to a person who has a prior vested right to the water under the laws of this state. DWU may curtail water deliveries or reduce diversions in accordance with the terms and conditions of its wholesale water supply contracts. If necessary, or if specific contract provisions are not provided for, DWU may curtail water deliveries or reduce diversions in accordance with Texas Water Code Section 11.039. DWU will have authority to restrict flow to its wholesale water customers through the rate-of-flow controllers. The Director will establish pro rata water allocations, determined as a percentage reduction of the wholesale customer's water usage, at the time of implementation. The total volume reduction for each wholesale customer will be calculated monthly, based on average water usage for the previous three years. The Director will establish the percentage reduction based on an assessment of the severity of the water shortage condition and the need to curtail water diversions and/or deliveries, and the percentage reduction may be adjusted periodically by the Director. Once pro rata allocation is in effect, water Water Conservation and Drought Contingency Plan City of Denton diversions by, or deliveries to, each wholesale customer will be limited to the allocation established for each month. 6.7 Procedures for Enforcement of Mandatory Restrictions Violations A person commits an offense if he or she knowingly makes, causes, or permits a use of water contrary to the measures implemented in the Drought Contingency Plan. It is presumed that a person has knowingly made, caused, or permitted use of water contrary to the measures implemented if the mandatory measures have been implemented according to the Plan and any one of the following conditions apply: • The Drought Contingency Plan prohibits the manner of use. • The amount of water used exceeds that allowed by the Drought Contingency Plan • The manner of use or the amount used violates the terms and conditions of a compliance agreement made following a variance granted by the ACM/Utilities. Any person in apparent control of the property where a violation occurs or originates shall be presumed to be the violator, and proof that the violation occurred on the person's property shall constitute a rebuttable presumption that the person in apparent control of the property committed the violation, but any such person shall have the right to show that he/she did not commit the violation. Parents shall be presumed to be responsible for their minor children and proof that a violation, committed by a child, occurred on the property within control of the parents shall constitute a rebuttable presumption that the parent committed the violation. But, any such parent may be excused if he/she proves that he/she had previously directed the child not to use the water as it was used in violation of this Plan and that the parent could not have reasonably known of the violation. Any Code Enforcement Officer, Police Officer, or other city employee designated by the Assistant City Manager/Utilities, may issue a citation to a person he/she reasonably believes to be in violation of this Ordinance. The citation shall be prepared in duplicate and shall contain the name and address of the alleged violator, if known, the offense charged, and shall direct him/her to appear in municipal court on the date shown on the citation. First Violation Customers receive a written warning that they have violated restrictions. Water Conservation and Drought Contingency Plan City of Denton Subsequent Violations Any person who violates this Plan is guilty of a misdemeanor and, upon conviction, shall be punished by a fine of not more than $2,000. Each day that one or more provisions in this Plan is violated shall constitute a separate offense. Flow restrictors may be placed in lines after two violations have occurred to limit the amount of water passing through the meter in a 24-hour period. The City of Denton Utilities reserves the right to temporarily cancel water service to the customer until the situation can be resolved. 6.8 Procedures for Granting Variances Granting a Variance The ACM/Utilities may grant variances from the Drought Contingency Plan in special cases to persons demonstrating extreme hardship and need. In order to obtain a variance, the applicant must sign a compliance agreement on forms provided by the ACM/Utilities and approved by the City Attorney. The applicant must agree to use the water only in the amount and manner permitted by the variance. A variance must meet the following conditions: • Granting of a variance must not cause an immediate significant reduction in the City's water supply. • The applicant must demonstrate that the extreme hardship or need is related to the health, safety, or welfare of the person requesting it. • The variance will not adversely affect the health, safety, or welfare of other persons. • No variance is retroactive nor can it justify any violation of this Drought Contingency Plan before its issuance. Revoking a Variance The ACM/Utilities may revoke a variance granted when the Director of Water Utilities determines any one of the following: • Conditions causing initial issuance of the variance are no longer applicable. • Violation of the terms of the compliance agreement. • The health, safety, or welfare of other persons requires revocation. Wholesale Customer Variances The ACM/Utilities may grant variances from the Drought Contingency Plan to wholesale water customers in special cases. Wholesale water customers may request reduced variance allocations for the following conditions: Water Conservation and Drought Contingency Plan City of Denton • The designated period does not accurately reflect a wholesale customer's normal water usage. • The customer agrees to transfer part of its allocation to another wholesale customer. • Other objective evidence demonstrates that the designated allocation is inaccurate under present conditions. In order to grant a variance, the applicant must sign a compliance agreement on forms provided by the ACM/Utilities and approved by the City Attorney. No variance shall be retroactive or otherwise justify any violation of this Drought Contingency Plan occurring before the issuance of the variance. 6.9 Coordination with the Regional Water Planning Group The City of Denton is located within the Region C water planning area. Appendix E includes a copy of a letter sent to the Chair of the Region C Water Planning Group (RCWPG) along with the water conservation and drought contingency plan. 6.10 Review and Update of Drought Contingency Plan As required by TCEQ rules, the City of Denton will review this drought contingency plan every five years, beginning in 2009. The plan will be updated as appropriate based on new or updated information. As the plan is reviewed and subsequently updated, a copy of the revised Drought Contingency Plan will be submitted to the TCEQ and the RCWPG for their records. 7.0 Severability The City of Denton Public Utility Board agrees that sections, paragraphs, sentences, clauses, and phrases of this Drought Contingency Plan are severable. If any phrase, clause, sentence, paragraph, or section of this Drought Contingency Plan is declared unconstitutional by the valid judgment or decree of any court of competent jurisdiction, such unconstitutionality shall not affect any of the remaining phrases, clauses, sentences, paragraphs, and sections of this Drought Contingency Plan, since the same would not have been enacted by the City of Denton Public Utility Board without the incorporation into this Drought Contingency Plan of any such unconstitutional phrase clause, sentence paragraph, or section. Water Conservation and Drought Contingency Plan City of Denton APPENDIX A List of References 1. Texas Commission on Environmental Quality: "Water Conservation Plans for Municipal Uses by Public Water Suppliers," Texas Administrative Code Title 30 Part I Subchapter A §288.2, effective October 7, 2004 2. Texas Commission on Environmental Quality: "Utility Profile & Water Conservation Plan Requirements for Municipal Water Use by Public Water Suppliers," TCEQ publication 10218 Rev 11-04 and "Utility Profile & Water Conservation Plan Requirements for Wholesale Public Water Suppliers," TCEQ publication 20162 Rev 11-04 3. Texas Water Development Board: "Water Conservation Best Management Practices Guide," Report 362, Water Conservation Implementation Task Force, published November 2004 0 a (D C v ro On cc m `v f0 a' 0 v v r r (sapui) uiem O O O O O O O O O O o m m m N N N N N ci ci ci o O N N 2 Q W V 9 Pl N 0 0 V aC7i ~r v,.,z . auo N O MN~r o r~Pr LM 10 ? r oo t0 C N O oo C N O oo n n n n n oo oo oo oo oo QJd'J EXHIBIT 5 1 DRAFT MINUTES 2 PUBLIC UTILITIES BOARD 3 April 13, 2009 4 5 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was 6 present, the Vice Chair of the Public Utilities Board thereafter convened into a Closed Meeting 7 on Monday, April 13, 2009 at 9:00 a.m. in the Service Center Training Room, City of Denton 8 Service Center, 901-A Texas Street, Denton, Texas. 9 10 Present: Vice Chair Dick Smith, Bill Cheek, Phil Gallivan, Randy Robinson and Bill 11 Grubbs 12 13 Ex Officio Members: 14 George Campbell, City Manager 15 Howard Martin, ACM, Utilities 16 17 Absent: Charldean Newell and John Baines, both excused 18 19 20 ITEMS FOR INDIVIDUAL CONSIDERATION: 21 22 6) Receive a report from staff, hold a discussion, and provide direction concerning Denton's 23 2009 update to the Water Conservation and Drought Contingency Plan. 24 25 ACM Martin called on Tim Fisher, Assistant Director of Water Utilities, to present this item. 26 Fisher stated that the first formalized water conservation plan with water conservation goals was 27 done in 2005. After presentation of the 2005 Conservation Plan, staff proposed a water waste 28 ordinance as an additional conservation measure. The Lawn and Landscape Irrigation and Water 29 Waste Ordinance were subsequently implemented in an accelerated fashion during the drought of 30 2006. In 2008, Denton Water Utilities (DWU) also implemented seasonal commercial irrigation 31 pricing as a way to curb summer peak usage, which can be partially attributed to commercial 32 irrigation practices. Staff will monitor commercial irrigation usage in future years to gauge the 33 effectiveness of seasonal rates on customer water usage. 34 35 Fisher also stated that the 2005 plan was not originally a five year plan but was changed by 36 accelerating the Plan one year to bring it more on cycle with the regional planning process. 37 Fisher next stated that staff has tried to take a look at where DWU is and what needs to be done. 38 The Plan began with a per capita water use in 2000 using consensus data which staff believed 39 was a credible population number as a starting point. Because of weather variability, staff 40 looked at a five year rolling average to establish per capita water use on a five-year basis. Fisher 41 then pointed out that within the four year window between 2005, when the Plan was adopted, 42 and now, there have been two very unusual years in completely opposite directions and that 43 usage went up due to a series of droughts in 1996, 1998, and 2000. 44 45 Fisher stated that as far as the planning components, staff still plans on working a little bit more 46 on the education component of the water waste ordinance. Staff also has added one section to 47 the Conservation Plan addressing two additional Best Management Practices. These practices 48 involve park and athletic field conservation. DWU will work with Parks and Recreation and 49 other partners, including golf course operators, to decide on the possibility and economic 50 viability of improving irrigations, landscaping, and turf management practices. 51 Draft Minutes of the Public Utilities Board meeting April 13, 2009 Page 2 of 2 1 Based on available data, staff believes the current goals can be largely achieved through 2 continued implementation of the components in the current plan, refinement of the lawn and 3 landscape irrigation program, and moderate growth of DWU's reclaimed effluent reuse program. 4 5 Fisher stated that DWU has met its initial specific goal of a one percent reduction of per-capita 6 per year in the first five years, resulting in a 9 gallon per day reduction in per-capita. By the year 7 2014, the second required evaluation and update period of the plan, meeting the one percent 8 reduction in per-capita per year would result in a per-capita reduction of approximately 18 9 gallons per day. That number rises to a savings of 27 gallons per day, for an average of 156 gpcd 10 in 2019. 11 12 Board Member Bill Grubbs asked in the area of conservation did other water districts offer 13 rebates similar to energy rebates to reimburse and promote upgrades. Fisher stated there are 14 three major components to water conservation program; those being education, regulation and 15 rebates. Staff has not pursued or promoted those programs in that the goals is make a more 16 efficient system and a more efficient system to reduce peak usage in order to cover a greater 17 population. Most of the rebate programs are going to affect base revenues. 18 19 Board Member Bill Cheek moved to approve the 2009 Update to the Water Conservation 20 and Drought Contingency Plan with a second from Board Member Randy Robinson. The 21 motion was approved by a 5-0 vote. 22 23 AGENDA INFORMATION SHEET AGENDA DATE: June 2, 2009 DEPARTMENT: Legal Department CM/DCM/ACM: Anita Burgess, City Attorney SUBJECT: Consider adoption of an ordinance of the City of Denton, Texas approving an interlocal cooperation agreement granting an easement to the Denton County Transportation Authority (DCTA) on the Denton Branch Rail Trail for the purpose of building a public commuter rail line. BACKGROUND: The Denton County Transportation Authority (DCTA) has requested the use of Denton Parks and Recreation property for the purpose of providing public passenger rail transportation services in Denton County. OPTIONS: Approve, deny, or table the action. RECOMMENDATION: Staff recommends an update in executive session. Respectfully submitted, ILL e, Anita Burgess, City Attorney SAOur Documents\Misce11aneous1091•: AGENDA INFORMATION SHEET AGENDA DATE: June 2, 2009 DEPARTMENT: Planning and Development/Community Development ACM: Fred Greene 51 SUBJECT Consider approval of a resolution by the City of Denton, Texas, authorizing the City Manager to sign and submit to the Department of Housing and Urban Development a 2009 Action Plan for Housing and Community Development with appropriate certifications, as authorized and required by the Housing and Community Development Act of 1974, as amended and the National Affordable Housing Act of 1990, as amended; and providing for an effective date. BACKGROUND On an annual basis, the City of Denton prepares an Action Plan for submission to the US Department of Housing and Urban Development (HUD). The Action Plan serves as the City's application for Community Development Block Grant (CDBG) and Home Investment Partnerships (HOME) program funding. In 2005, using a process with input from citizens and local non-profit organizations, staff developed Denton's 2005 2009 Consolidated Plan for Housing and Community Development. The Consolidated Plan is a five-year strategy detailing proposed housing, social service and public works projects benefiting low and moderate-income households and neighborhoods. Annual action plans are developed based on the strategies outlined in the Consolidated Plan. The 2009 Action Plan represents the fifth and final year in the City's five-year strategy. Public hearings requesting citizen input regarding the use of CDBG and HOME funds were held in November 2008. Application availability was advertised from November through December. Staff held application workshops in January 2009. CDAC and HSAC reviewed applications and held funding hearings in February and March. Each committee developed a set of funding recommendations. Staff has developed the 2009 Action Plan using these recommendations. Administration activities are also included in the Action Plan. A public hearing on the draft 2009 Action Plan was held on May 5, 2009. One comment from Richard Taliaferro, Chairman of SPAN, was presented by staff. A summary of all comments received is included in the document. Since development of the initial CDAC and HSAC recommendations, the City received notification of the exact allocation amounts. This information was based on final passage of the 2009 Federal budget. Original CDAC and HSAC recommendations were based on 2008 funding levels. Denton's 2009 allocation included an additional $20,499 in CDBG and $58,016 in HOME funding. Both CDAC and HSAC approved staff s suggestion to allocate the additional funding to programs and agencies that had been previously recommended for funding by each committee. Please see the chart below for recommended increases. Program/Agency Original Recommended Total Funding Recommendation Increase Recommended Minor Repair $98,000 $13,326 $111,326 Home Improvement Program $497,340 $52,215 $549,555 AIDS Services of North Texas $12,000 $550 $12,550 Denton City Count Da School $26,000 $550 $26,550 Family Health Care $20,035 $550 $20,585 HOPE, Inc. $20,400 $550 20,950 SPAN $17,500 $874 $18,374 * An additional $9,900 will be available for program administration. ESTIMATED PROJECT SCHEDULE Action Plan approval June 2, 2009 Submission of Action Plan to HUD June 5, 2009 HUD release of funds & program initiation August 1, 2009 PRIOR ACTION/REVIEW (Councils, Boards, Commissions) The Community Development Advisory Committee (CDAC) reviewed requests for housing, non-profit facilities and infrastructure projects. CDAC recommended $1,353,855 in funding for various projects. The Human Services Advisory Committee (HSAC) reviewed requests for social services program funding. HSAC developed recommendations for use of both CDBG funds and City general fund dollars. The list of general fund recommendations is included in the 2009 Action Plan. However, the approval of the Plan does not include approval of the general fund allocations. These recommendations will be considered during the normal budgeting cycle. HSAC recommended allocation of $135,009 in CDBG funding to various social service programs. Each committee presented these recommendations to City Council at the work session on May 5, 2009. FISCAL INFORMATION All projects and programs approved under the 2009 Action Plan are funded through the CDBG or HOME programs. General fund dollars for the manager position salary expenses are included in the program administration budget. EXHIBITS 1. Resolution 2. 2009 Action Plan for Housing and Community Development Prepared by: Respectfully submitted: Barbara Ross Mark Cunningham Community Development Administrator Director of Planning and Development EXHIBIT 1 scour documentslresolutions10912009 action plan resoludon.doc RESOLUTION NO. A RESOLUTION OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE CITY MANAGER TO SIGN AND SUBMIT TO THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT A 2009 ACTION PLAN FOR HOUSING AND COMMUNITY DEVELOPMENT WITH APPROPRIATE CERTIFICATIONS, AS AUTHORIZED AND REQUIRED BY THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974, AS AMENDED AND THE NATIONAL AFFORDABLE HOUSING ACT OF 1990, AS AMENDED; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Denton, Texas, is concerned with the development of viable urban communities, including decent housing, a suitable living environment and expanded economic opportunities; and WHEREAS, the City of Denton, Texas, has a special concern for persons of low and moderate income; and WHEREAS, the City of Denton, Texas, as a CDBG entitlement City and a HOME participating jurisdiction, has prepared, through a citizen participation process, a program for utilizing its 2009-year entitlement funds, program income, reallocated funding from previous years and CDBG-R American Recovery and Reinvestment Act funds in the approximate amount of $1,900,000; and WHEREAS, citizen participation requirements, including the holding of public hearings, have been met; and WHEREAS, the Community Development Act of 1974 and the National Affordable Housing Act of 1990 require an application and appropriate certifications included in the Consolidated Plan; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City Council of the City of Denton, Texas, authorizes the City Manager to sign and submit to the Department of Housing and Urban Development a 2009 Action Plan and appropriate certifications for entitlement funds under the Housing and Community Development Act of 1974, as amended and the National Affordable Housing Act of 1990, as amended. SECTION 2. The City Council of the City of Denton, Texas, authorizes the Community Development Administrator to handle all fiscal and administrative matters related to the application, the Action Plan and the certifications. SECTION 3. The City Secretary is hereby authorized to furnish copies of this resolution to all interested parties. scour documentslresolutions10912009 action plan resolution.doc SECTION 4 This resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2009 MARK BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: EXHIBIT 2 n n l o e o r ~r rz c lon an o~ o usln ~ ~cn a~~unl eve a men ~a ~a~ ear= >>~a~~ liti, a .y r~< ~ z 6 R ~ u ti~ ~ ~ ~ v~ a ,a, r k i ~~;d ~ ~ " , o ~ v, ~ - ~ ' us Housing Park Facilities ~~k~~s 1{ ~ ~m ; ` i, ~ fi, i 4~ ~ 1.,. e ~ G I ~ - U^' F ~ ~ ill ?~",~.FJ u,~ 1~ h~, `1 S~tiGtil~~ ,ul ' f m z _ t iii. i~ i . rt N ~ r n1y~U 1 ~ 1 ^ , 4. ~ u~ q Public Improvements Human Services Prepared for the U.S. Dept. of Housing and Urban Development Presented to Denton City Council on May 5, 2009 www. cityofdenton. com ADA/EOE/AREA TABLE OF CONTENTS A. Executive Summary of Action Plan 1. Introduction ..................................................................................................................1 2. Funding Summary ........................................................................................................2 3. Local Match ..................................................................................................................4 4. Citizen Participation .....................................................................................................4 5. Amendments for CDBG Program ................................................................................5 6. Amendment for CDBG-Recovery Act Program ..........................................................5 6. Evaluation of Past Performance ...................................................................................6 B. Projects/Activities 1. Summary ......................................................................................................................7 2. CDBG and HOME Proposed Projects ..........................................................................8 3. CDBG-R Proposed Projects .......................................................................................18 3. Other Resources Available .........................................................................................21 C. CP Strategies and Proposed Projects 1. Housing Strategies ......................................................................................................22 2. Continuum of Care Strategies ....................................................................................23 3. Lead-Based Paint Strategies .......................................................................................26 4. Human Services Strategies .........................................................................................26 5. Infrastructure & Public Facilities Strategies ..............................................................28 6. Demolition Strategies .................................................................................................29 7. Anti-Poverty & Economic Development Strategies ..................................................29 8. Barriers to Affordable Housing ..................................................................................29 D. Proposed Project Map ......................................................................................................30 E. Other Program Requirements 1. HOME - Forms of Investment ...................................................................................31 2. Monitoring Standards and Procedures ......................................................................31 3. Public Housing Improvements ...................................................................................32 4. Public Housing Resident Initiatives ...........................................................................32 5. Institutional Structure .................................................................................................32 6. Chronic Homelessness ...............................................................................................33 7. HOME - Minority Outreach Program ........................................................................34 F. Community Development Minutes 1. Minutes from Public Hearings ...................................................................................35 2. 30-day Comment Period .............................................................................................37 3. Community Development Advisory Committee Minutes ..........................................38 4. Human Services Advisory Committee Minutes .........................................................54 G. Appendix 1. SF 424 Application for CDBG Grant .........................................................................73 2. SF 424 Application for HOME Grant ........................................................................74 3. SF 424 Application for CDBG-R Grant .....................................................................75 4. Certifications for CDBG, HOME and CDBG-R Programs .......................................77 5. Table: Annual Housing Completion Goals ...............................................................89 EXECUTIVE SUMMARY INTRODUCTION This document serves as the City of Denton's 2009 Action Plan for the Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) Programs. In accordance with 24 CFR Part 91.220 of Title I of the Housing and Community Development Act of 1974, as amended, the City of Denton is required to submit a One-Year Action Plan to the U.S. Department of Housing and Urban Development. The plan outlines the specific projects and services that will be funded during the 2008 Program Year to address Denton's strategies stated in the 2005-2009 Consolidated Plan for Housing and Community Development. The following five-year strategies were identified in 2005 year and are reaffirmed this year: ■ Housing Strategies: Assistance to Renters, Owners, and Homebuyers and the Production of Affordable Units; ■ Continuum of Care Strategies: Prevention Homelessness, Outreach and Assessment, Emergency Shelter, Transitional Housing and Transition to Permanent Housing and Independent Living; ■ Lead-Based Paint Strategies: Education and Reduction of Lead-Based Paint Hazardous to Owners and Homebuyers; ■ Human Services Strategies: Improve availability and accessibility of basic food, emergency shelter, transitional housing, services promoting strong, supportive relationships for families, and basic health care and mental health services. ■ Infrastructure Improvement Strategies: Improvements to Streets, Sidewalks and Water/Sewer lines, Drainage Improvements, Rehabilitation and Expansion of Public Facilities, Park Improvements and Demolition of Substandard Structures; ■ Anti-Poverty & Economic Development Strategy: Support Training and Employment Activities, Expand Education Opportunities, Support of Section 3 goals, and Support of Start-up and expansion industry. This document also serves as the City of Denton's Substantial Amendment to the 2008 Action Plan to incorporate CDBG Recovery (CDBG-R) funding from the U.S. Department of Housing and Urban Development. The Recovery Act appropriated $1 billion in Community Development Block Grant (CDBG) funds to states and local governments to carry out, on an expedited basis, eligible activities under the CDBG program. Funding available under the Recovery Act has clear purposes - to stimulate the economy through measures that modernize the Nation's infrastructure, improve energy efficiency, and expand educational opportunities and access to health care. Additional information on Denton's Substantial Amendment can be found on page 5. Page 1 FUNDING SUMMARY The City of Denton is currently an entitlement city for the Community Development Block Grant (CDBG) and a participating jurisdiction for the HOME Investment Partnership (HOME) Programs. SF-424 applications for CDBG, HOME, CDBG-R are available in the appendix page 73 through 75. The table below shows the federal funding available from the U. S. Department of HUD for the 2008/09 program year. The table below also indicates the amount of CDBG and HOME funds that will benefit low and moderate income persons. FUNDING SUMMARY 2009/10 Program year U. S. Department of Housing and Urban Development CDBG CDBG-R HOME TOTAL Entitlement Grant $896,432 $232,917 $582,576 $1,711,925 Reprogrammed Prior Years' Funds $186,953 $0 $0 $186,953 Estimated Program Income $22,000 $0 $47,000 $69,000 Total Funding Sources from HUD $1,105,385 $232,917 $629,576 $1,967,878 Benefit to Low & Moderate Income Persons $921,699 $212,752 $566,619 $1,701,070 The City of Denton and subrecipients also receives many other federal, state, local and private funds during the 2009-10 Program Year to address priority needs and specific objectives identified in the City of Denton Consolidated Plan. A total of $14,716,481in additional resources are proposed for the 2009/10 program year. A list of resources available to the City of Denton can be found on the next page and includes local, state and federal resources. Page 2 O- V - O W W O c0 ~ c0 ~ O N 0 0 0 0 0 ~fJ - N O (D (D (D N V ~fJ O I~ N N V ~fJ M M (D I~ 'D V V ~fJ ~fJ O O- O N M O W J (n O c0 N M M ~fJ V ~fJ M_ V (D I~ M M ( - V O O- O V N - - O V Q ~ - O I~ ~ ~ O (D M ~ ~ V ~ N (D ~ N M c0 N N (D ~fJ (D (D (D V V V (D c0 (D c0 ~fJ I~ (D (D N V ~fJ I~ M (D V N W N M (D EH EH I~ ELJ HOg M V (A ~ N (D ~ c0 V ~fJ ~ EH ~ M (D V (A V O (A I~ V (A V (D ~ N ~ (D I~ ~ LL El-J ~ EH EH EH EH EH EH - EH EH EH EH N El-J EH EH EH EH EH EH EH V EH EH EH EH EH ~fJ ~fJ O O c0 N M O - O O V O O - ~ W N N O (D V ~ ~ O - (D EH - N I- W O I- ~ ~ (n I~ W ~ V M ~ c0 (D (D O O I~ O W I~ M ~fJ M O c0 V I~ ~ ~ ~ O M Q ~ ~ V Z c0 c0 I~ W ~ ~fJ O N ~ W V I~ ~ ~ (D M (A c0 ~ N EH EH ~fJ N N I~ V ~ (A V (A ~ (D EH N EH ~ LL EJJ EH EH EH EH EH EH EH EH V EH O O ~ O O O O O N O 0 0 0 O O ~ O N ~fJ O V O O c0 O O ~ O (D O O O O c0 O M N O (D ~fJ ~fJ O O O ~fJ O N T O I~ O V ~ ~ L (D (D V I~ M M O ~fJ ~ W O ~fJ c0 V V V M c0 I~ M N (2 (D El-J O O O (D U O ~ ~ ~ ~ E~ El-J E~ El-J E~ ~ El-J EH ~ E~ El-J ~ ~ N Z En LL (D O O O~ O O O O O O O O J -Q V O O O N O O O O N O O M N Q ~fJ O O LfJ M O ~fJ O O I~ O O LC U E V O W ~fJ I~ N W M V O I~ W O Ll (A ~ (A V (A (A N ~ N ~ N (A c0 J (A (A (A (A (A (A N co EH EH N N O Q N O c0 O O ~fJ ~ I~ W D O O O M O ~ O ~fJ O O O N I~ (D O V (D c0 V W (D EH M C Q Li U EH EH Z O r O O ^ l.L V O N c0 V S - O N < n n LaL co v co o ~n ~ O V N O O M V O M W W rn v ~ EJJ EH EH N E~ 0 0 ~ O W M O O V ~ ~ O V V O W O N D 0 O m W L N CD V O O lfJ ~ I~ ~ ~ ~ lfJ V c0 O O En En M ~ <n v U- cn M V V/ ~ M ~fJ c0 W x M D (D M ~ U EH EH EH M V o 0 0 O O O Co N Co a N N W Q z E rn rn LL W J fA Q Q w cc W a ° O LL~ O ~fJ O O N O O O O O (D ~fJ O ~fJ ~fJ O O O ~ ~fJ V ~fJ I~ ~ O ~ ~ ~ a Z v n o n LJ ~fJ ~ N O ~ O O - O O N (D N c0 ~ S ~ V ~ E~ cND Z W V- O - - O O O ~fJ O O O (D V ~fJ Q O O (D (D ~fJ c0 (D N M ~fJ O c0 ~fJ O O M cn M m M O W M M_ m O O O N CO N M O I~ O M N m (D V O O (D (D V c0 ~fJ 0 ~2 (2 W O V N N N N (A (A O U } 42 H 'm .N E F-- E o LL z 'z 'z 'z N .z .z z .z .z .z .z .z ° z .z .z .z .z .z W N .2 .2 N (6 N - - w N (6 (6 (6 (6 (6 (6 (6 (6 (6 (6 (6 N N } 0 0 0 0 -m o 0 0 0 0 0 0 o 0 0 0 0 `m o 0 0 o o o 0 m E m o o 8_ s s m o ~ o m axi ¢ m m 4 ° co co " - E ° o 8 2 ~ z - N E m .N o s m U z J m ° a o oo - s 42 S- a z E E 0 J 3 o U z m co 3 m¢ S cn - O Y E o m cr W ° in 3 co ° E E¢ m m Cg Cgs U m m O cn Y E O Q v Y E o N Q o 0 o AE o o ii S w o a Y :E m .0 Q-- `m O LL E y ° - N N N O W E ¢ U U U 0 N O d co CC O O ¢ 0 0 0 m V ° = o o W O r E -`o `o `o `o . E O o 0 0 0 0 0- LLJ p p E cm-i m¢ Q 0 -O o m O G G w a E m a O Z Q Q co U 8 U U U U U U o 0 0 0 0 0 0 0 LL LL LL S d d d CC CC (7 H H LOCAL MATCH The HOME program requires a participating jurisdiction to provide a 25% match of the federal HOME funds. The City of Denton's local match for the HOME program is $118,026. The 25% match of federal HOME funds excludes administrative allowances of 10%. The City of Denton will provide the match from a variety of sources including the following: 1. Federal Home Loan Bank funds awarded to the City of Denton and the Denton Affordable Housing Corporation (DAHC) for home ownership assistance and home improvement. 2. Denton County Housing Finance Corporation and other non-federal funding awarded to Denton Affordable Housing Corporation and City of Denton. 3. City of Denton Impact Fee Grant Awards used to pay required impact fees on HOME eligible proj ects. CITIZEN PARTICIPATION To ensure citizen participation in the 2009 Action Plan process including the 2008 substantial amendment to the 2008 Action Plan, the city followed its Citizen Participation Plan at all stages of the plan and amendment. Public hearings were held November 17 and 20. The November 20th public hearing was held in Spanish. The public hearings updated citizens on the status of current programs and activities and asked the citizens how they felt the 2009 funds should be spent. Both of the public hearings were held within a low and moderate-income neighborhood. See page 35 for minutes of both public hearings. Information on the public hearings was included in the Community Development Quarterly Newsletter. The Community Development Quarterly Newsletter is was mailed or e-mailed to neighborhood associations; recreation centers and libraries; service agencies and beneficiaries; city council, Human Services Committee (HSC) and Community Development Advisory Committee (CDAC) members; churches; applicants; contractors; participating lenders; Realtors; employees; citizens who attended previous public hearings; and interested citizens. The newsletter which is in Spanish and English is available for pickup or viewing at all recreation centers, libraries, and the City of Denton's website. A notice was also placed in the Denton Record-Chronicle. After the Action Plan was drafted, advertisements were placed in the Denton Record-Chronicle summarizing the plan and announcing to the public where the Action Plan would be available for review, and the process for submitting comments to the City of Denton. The draft Action Plan was available at the Community Development Department and on the City of Denton's web page. The advertisements also included information on the upcoming public hearing. An ad was also placed in the quarterly Community Development Newsletter. All comments received from the public were addressed before submitting the plan to the U.S. Department of Housing and Urban Development. Comments received during the 30-day comment period will be included in the Action Plan. To ensure citizen participation at all stages of the 2009 Action Plan process, a public hearing will be scheduled on May 5, 2009 during a City Council Meeting to give citizens the opportunity to comment on the 2009 proposed projects and activities. Seepage 37 for minutes of the public hearing. Page 4 AMENDMENT OF CDBG FUNDS The City of Denton is also amending the 2003, 2004, 2005, 2006, 2007 and 2008 Action Plans for Housing and Community Development to reallocate $186,953 in CDBG funds from cancelled projects, contingency funds or unprogrammed funds. A total of $102,942 in contingency funds from program years 2003 through 2007 are available from from completed projects. In 2007, $60,000 in CDBG was allocated to the Denton Children's Advocacy Center. This project has been cancelled. In 2008, $24,011 in CDBG funds was available as unprogrammed funds. Funds from these sources will be reallocated to current 2009 projects. AMENDMENT OF CDBG-R FUNDS - RECOVERY FUNDS The City of Denton is also amending its 2008 Action Plan to incorporate CDBG-R funding. The City of Denton received $232,917 of American Recovery and Reinvestment Act (ARRA) funds, commonly referred to as the stimulus bill. The ARRA funds received are 2008 CDBG funds in addition to the City's annual CDBG entitlement funds. The City of Denton is incorporating the ARRA proposed activities in the draft 2009/10 Action Plan for Housing and Community Development as an amendment to the 2008 Action Plan. The Recovery Act appropriated $1 billion in Community Development Block Grant (CDBG) funds to states and local governments to carry out, on an expedited basis, eligible activities under the CDBG program. HUD is authorized by statute to specify alternative requirements and make regulatory waivers for this purpose. Funding available under the Recovery Act has clear purposes - to stimulate the economy through measures that modernize the Nation's infrastructure, improve energy efficiency, and expand educational opportunities and access to health care. The following is a list of proposed projects for the $232,917 in American Recovery and Reinvestment funds. All of the proposed projects are described in detail in the Proposed Project section of the Action Plan starting on page 18. ACTIVITY NAME AMOUNT Administration $20,165 AIDS Services of North Texas $4,500 Day Stay for Adults $4,450 Family Health Care, Inc. $3,500 Fred Moore Park Electrical $3,332 Fred Moore Pavilion $33,420 HOPE, Inc. $4,550 Redwood Street Sewer Replacement $154,000 Retired Senior Volunteer Program (RSVP) $2,500 Services Programs for Aging Needs (SPAN, Inc.) $2,500 TOTAL $232,917 Page 5 EVALUATION OF PAST PERFORMANCE It is evident from the information on performance outcomes in the 2006-'07 CAPER that the City of Denton has made progress toward meeting the stated five-year Consolidated Plan goals. Even though the expected level of funding has not been received, Denton continues to make progress toward meeting goals outlined in the 2005-2009 Consolidated Plan for Housing and Community Development. However, it is important for City staff, residents, and HUD officials to understand that lower than expected funding levels have caused a reduction in the level of service and number of units previously expected to be assisted. This has required more efficient use of available funding and more time spent on seeking additional funding sources. As a result, the number of individuals and households assisted during the five-year period will likely fall short of projected outcomes. During the past year, existing programs such as Homebuyer Assistance, Home Improvement and Minor Repair have supported homebuyers and homeowners. These programs have succeeded in providing current residents of the City with opportunities to improve their housing situation. The Home Improvement Loan and Minor Repair programs have succeeded in promoting the revitalization of older, decaying neighborhoods. Recently, Community Development staff sought out additional funding to supplement funding available in the Homeownership Assistance Program. This funding was awarded and is used by the City to help make repairs on units that might otherwise not been available to new homebuyers. Though these programs continue to be successful, again with recent funding cuts and the significant cost increases occurring during the past year, program target numbers for the five-year period will probably not be met. Continuum of Care activities continue to be successful and bring Emergency Shelter Grant funds from the State of Texas and Supportive Housing Program funding from HUD into the Denton County area. These funds are used by local agencies to meet the needs of homeless and potentially homeless individuals and families. Five agencies participate in a collaboration that, for the past four years, has been funded by the State ESG program. Activities include homeless prevention, provision of essential services and payment of operating and maintenance costs for shelters. SHP funding continues to support the Homeless Management Information System for the Denton County Homeless Coalition. Other public services activities funded by the City of Denton through both CDBG and general funds have been successful in meeting identified needs in the Denton community. Health care has been one area where the community has made significant strides. The People's Clinic has opened and is providing services to low-income individuals in Denton County. The City supports the Clinic by providing funding for patient services and medications that are not covered through the Medicaid system. The City of Denton continues to support childcare for low-income families, services for the elderly and households affected by AIDS. During the past year, there was a major push to complete public improvement projects. Staff was successful in completing five major projects. Two other projects were cancelled and one is substantially complete. This should ensure that the City of Denton has no timeliness issues. Programs and activities developed to meet community needs are reaching stated goals. Housing, social services, neighborhood revitalization and public facility improvements are focus areas for Denton Community Development. Strong collaborative efforts among the local service and housing organizations along with support from the major cities of Denton, Lewisville and Flower Mound, continue to expand opportunities for low-income individuals and households in an effort to help them reach self-sufficiency. Page 6 2009 PROJECTS/ACTIVITIES SUMMARY The City of Denton's total federal and program income funding for 2009 is $1,967,878 (includes $186,953 of Reprogrammed Funds). Program funds have been allocated to an array of projects and activities to benefit low and moderate-income households. Each project is described in detail from pages 8 to 20 and is arranged by alphabetically order. See the following list of CDBG, HOME and CDBG-R proposed projects and activities for their assigned page number: CDBG HOME CDBG-R Page # Project Name Funds Funds Funds 8 Anderson St. Sidewalks $50,968 8& 18 AIDS Services of North Texas $12,004 $4,500 9 Boardwalk St Sewer Line Replacement $137,860 9 CDBG Administration $183,686 18 CDBG-R Administration $20,165 10 Chambers St Sewer Line Replacement $160,355 18 Day Stay for Adults $4,450 11 DAHC Rental Unit Improvements $112,025 12 Denton City County Day School Project $49,530 12 Denton City County Day School Services $26,550 13 Denton Co. Friends of the Family $24,000 13 & 18 Family Health Care, Inc. $20,585 $3,500 19 Fred Moore Park Electrical $3,332 19 Fred Moore Pavilion $33,420 14 HOME Administration $62,957 14 Home Improvement Program $102,961 $446,594 15 & 19 HOPE, Inc. - Transitional Housing $20,950 $4,550 10 PARD: Denia Summer Program $6,000 11 PARD: MLK Summer Program $6,000 15 Minor Repair Program $111,326 20 Redwood Street Sewer Replacement $154,000 20 Retired Senior Volunteer Program (RSVP) $2,500 16 Simmons/Park St Sewer Line Replacement $174,236 16 & 20 Special Programs for Aging Needs (SPAN) $18,374 $2,500 17 Tenant-Based Rental Assistance Program $8,000 Total Funding Allocated to Projects $1,084,886 $571,560 $232,917 Total Funding Available $1,084,886 $571,560 $232,917 Unprogrammed Funds $0 $0 $0 Page 7 PROJECT DESCRIPTIONS The following are descriptions of projects and activities that will be funded during the 2009 Program Year with CDBG and HOME funds: AIDS SERVICES OF NORTH TEXAS Provision of food and medical care to individuals and families impacted by AIDS/HIV. Funds will be used to buy food, hygiene products and medical care for non-HIV related infections and chronic diseases. Program will be carried out by AIDS Services of North Texas. HUD Matrix Code: 05 Public Services (General) 570.201(e) Objectives: Suitable Living Environment Eligibility: 570.208(a)(2) Low/Mod Limited Clientele ® ❑ Decent Housing Priority Need: Non-Homeless Special Needs ❑ Creating Economic Specific Objective: Improve the services for low/moderate income Opportunities persons. Outcomes: Specific Outcomes: Number of persons assisted with improved access to ® Availability/Accessibility a service - 55 persons ❑ Affordability Project Goals: 55 People ❑ Sustainability Primary Purpose: ❑ Homeless ® HIV/AIDS ❑ Disabled Funding: Subrecipient: Private 570.500(c) CDBG $12,004 Location: 4210 Mesa Drive, Denton Texas 76207 HOME $0 Start Date 10/1/2009 Other Sources $1,469,062 Completion Date 9/30/2010 Total $1,481,066 ANDERSON STREET SIDEWALK Installation of sidewalks and disability access ramps on the north and south side of Anderson Street from Amarillo to Mounts Streets. Project will require the installation of about 1,100 feet of new sidewalk and disability access ramps. Program will be carried out by the City of Denton's Engineering Department. HUD Matrix Code: 03 Sidewalks Objectives: ® Suitable Living Eligibility: 570.208(a)(1) - Low/Mod Area Environment Priority Need: Infrastructure ❑ Decent Housing ❑ Creating Economic Improve quality/increase quantity of public Opportunities Specific Objective: improvements for low income persons. Outcomes: Specific Outcomes Number of persons assisted where activity was used ® Availability/Accessibility Indicators: to meet a measurable improved quality ❑ Affordability Project Goals: 1,100 feet of new sidewalk ❑ Sustainability Primary Purpose: ❑ Homeless ❑ HIV/AIDS ❑ Disabled Funding: Subrecipient: Local Government CDBG $50,968 Location: City Wide, Denton, TX 76201 HOME $0 Start Date 08/01/09 Other Sources $0 Completion Date 07/31/10 Total $50,968 Page 8 BOARDWALK STREET SEWER LINE REPLACEMENT Replacement of existing 6" sewer line on Boardwalk Street with a new 8" from Hill to Lincoln and South on Lincoln to Chambers. The existing sewer line is in a state of disrepair. The replacement line will require an 8" line and manholes for approximately 890 feet. The new line would be constructed and placed in the street. Project will be carried out by the City's Engineering Department. HUD Matrix Code: 03J Water/Sewer Improvements 570.201(c) Eligibility: 570.208(a)(1) - Low/Mod Area Objectives: ® Suitable Living Environment Priority Need: Infrastructure ❑ Decent Housing ❑ Creating Economic Specific Objective: Improve quality/increase quantity of public Opportunities improvements for low income persons. Specific Outcomes Number of persons assisted where activity was used Outcomes: Indicators: to meet a measurable improved quality - 2192 ® Availability/Accessibility eo le ❑ Affordability Project Goals: 2192 people ❑ Sustainability Primary Purpose: ❑ Homeless ❑ HIV/AIDS ❑ Disabled Funding: Subrecipient: Local Government CDBG $137,860 Location: CT 21200 BG 2 - 72.72% LM HOME $0 Start Date 10/01/09 Other Sources $0 Completion Date 09/30/10 Total $137,860 CDBG ADMINSTRATION CDBG funds will be used for program management, coordination, monitoring and evaluation associated with carrying out eligible activities. Funds will also be utilized to continue City's efforts in fair housing. The program will be carried out by the City's Community Development Department. Funding includes $6,000 in proposed CDBG program income. HUD Matrix Code: 21A General Program Administration 570.206 Objectives: Eligibility: 570.208(a)(2) Low/Mod Limited Clientele ❑ Suitable Living Environment ❑ Decent Housing Priority Need: Planning & Administration ❑ Creating Economic Specific Objective: N/A Opportunities Outcomes: Specific Outcomes: N/A ❑ Availability/Accessibility Project Goals: N/A ❑ Affordability F-1 Sustainability Primary Purpose: ❑ Homeless ❑ HIV/AIDS ❑ Disabled Funding: Subrecipient: Local Government CDBG $183,686 Location: Community Wide HOME $0 Start Date 08/01/09 Other Sources $156,669 Completion Date 07/31/10 Total $340,355 Page 9 CHAMBERS STREET SEWER LINE REPLACEMENT Replacement of existing 6" sewer line on Chambers Street with a new 8" from west Lincoln to Hill and South on Hill to Smith. The existing sewer line is in a state of disrepair. The replacement line will require an 8" line and manholes for approximately 960 feet. The new line would be constructed and placed in the street. Project will be carried out by the City's Engineering Department. HUD Matrix Code: 03J Water/Sewer Improvements 570.201(c) Objectives: Eligibility: 570.208(a)(1) - Low/Mod Area ® Suitable Living Environment Priority Need: Infrastructure ❑ Decent Housing ❑ Creating Economic Improve quality/increase quantity of public Opportunities Specific Objective: improvements for low income persons. Specific Outcomes Number of persons assisted where activity was used Outcomes: Indicators: to meet a measurable improved quality - 2192 ® Availability/Accessibility eo le ❑ Affordability Project Goals: 2192 people ❑ Sustainability Primary Purpose: ❑ Homeless ❑ HIV/AIDS ❑ Disabled Funding: Subrecipient: Local Government CDBG $160,355 Location: CT 21200 BG 2 - 72.72% LM HOME $0 Start Date 10/01/09 Other Sources $0 Completion Date 09/30/10 Total $160,355 DAHC - AFFORDABLE HOUSING CORP Provision of a rehabilitation of affordable rental units in Denton for special needs. Funds will be utilized for the actual cost of rehabilitation of rental units. This project also consists of $20,000 for operating expenses of the agency. Program carried out by the Denton Affordable Housing Corporation. HUD Matrix 14B Rehab; Multi-Unit Residential Buildings 570.202 Objectives: Code: ❑ Suitable Living Environment Eligibility: 570.208(a)(3) - Low/Mod Housing ® Decent Housing Priority Need: Rental Housing ❑ Creating Economic Opportunities Specific Objective: Improve the quality of affordable rental housing. Outcomes: Specific Outcomes Number of persons assisted with new access to a ❑ Availability/Accessibility Indicators: facility - 83 housing units ❑ Affordability Project Goals: 83 housing units ® Sustainability Primary Purpose: ❑ Homeless ❑ HIV/AIDS ❑ Disabled Funding: Subrecipient: CHDO 92.2 CDBG $0 Location: Community Wide HOME $112,025 Start Date 08/01/09 Other Sources $520,313 Completion Date 07/31/10 Total $632,338 Page 10 DENTON CITY COUNTY DAY SCHOOL PROJECT Project consists of making needed improvements to the school. Funds will be used to replace existing roof, painting gymnasium and exterior of school and installing signage and storage shelves. The school provides affordable day care on a sliding scale. Project will be carried out by the City's Community Development Department and Denton City Count Da School. HUD Matrix Code: 03M Child Care Centers 570.201 (C) Objectives: Eligibility: 570.208(a)(2) - Low/Mod Limited Clientele ® Suitable Living Environment Priority Need: Public Facilities ❑ Decent Housing ❑ Creating Economic Improve the services for low/moderate income COreatang Specific Objective: pp persons. Outcomes: Specific Outcomes Number of persons assisted with new access to a ❑ Availability/Accessibility Indicators: facility - 185children ® Affordability Project Goals: 185 children ❑ Sustainability Primary Purpose: ❑ Homeless ❑ HIV/AIDS ❑ Disabled Funding: Subrecipient: Private 570.500(c) CDBG $49,530 Location: 1603 Paisley Street, Denton Texas 76209 HOME $0 Start Date 08/01/09 Other Sources $ Completion Date 07/31/10 Total $49,530 DENTON CITY COUNTY DAY SCHOOL Provision of childcare services for low income children between the ages of 2 years and 5 years. Funds will be utilized to pay for teacher's salaries. The school provides affordable day care on a sliding scale. Project will be carried out by the City's Community Development Department and Denton City County Day School. HUD Matrix Code: 05L Child Care Services 570.201(e) Objectives: Eligibility: 570.208(a)(2) - Low/Mod Limited Clientele ® Suitable Living Environment ❑ Decent Housing Priority Need: Public Services ❑ Creating Economic Improve the services for low/moderate income Opportunities Specific Objective: persons. Outcomes: Specific Outcomes Number of persons assisted with improved access to ❑ Availability/Accessibility Indicators: a service - 185 persons ® Affordability Project Goals: 185 People ❑ Sustainability Primary Purpose: ❑ Homeless ❑ HIV/AIDS ❑ Disabled Funding: Subrecipient: Private 570.500(c) CDBG $26,550 Location: 1603 Paisley Street, Denton Texas 76209 HOME $0 Start Date 10/01/09 Other Sources $466,218 Completion Date 09/30/10 Total $492,768 Page 11 DENTON COUNTY FRIENDS OF THE FAMILY Provision of counseling services, crisis assistance and emergency shelter for family members impacted by domestic violence and/or sexual assault. Funds will be utilized to pay direct services for victims of domestic violence. Program will be carried out by the Denton County Friends of the Family. HUD Matrix Code: 05G Battered and Abused Spouses 570.201(e) Objectives: Eligibility: 570.208(a)(2) - Low/Mod Limited Clientele ® Suitable Living Environment ❑ Decent Housing Priority Need: Homeless ❑ Creating Economic Specific Objective: Provide emergency services for homeless persons. Opportunities Outcomes: Specific Outcomes Number of persons assisted with improved access to ® Availability/Accessibility Indicators: a service - 2,079 persons ❑ Affordability Project Goals: 2,079 People ❑ Sustainability Primary Purpose: ® Homeless ❑ HIV/AIDS ❑ Disabled Funding: Subrecipient: Private 570.500(c) CDBG $24,000 Location: Confidential HOME $0 Start Date 10/01/09 Other Sources $1,999,371 Completion Date 09/30/10 Total $2,023,371 FAMILY HEALTH CARE Provision of a prenatal clinic aiding women who are without private insurance or Medicaid. Funds will be used to procure services for non-Medicaid eligible, low-income pregnant women. Program will be carried out by Family Health Care, Inc. HUD Matrix Code: 05M Health Services 570.201 (e) Objectives: Eligibility: 570.208(a)(2) - Low/Mod Limited Clientele ® Suitable Living Environment Priority Need: Public Services ❑ Decent Housing ❑ Creating Economic Improve the services for low/moderate income COreatang Specific Objective: pp persons. Outcomes: Specific Outcomes Number of persons assisted with improved access to ® Availability/Accessibility Indicators: a service - 63 persons ❑ Affordability Project Goals: 63 People ❑ Sustainability Primary Purpose: ❑ Homeless ❑ HIV/AIDS ❑ Disabled Funding: Subrecipient: Private 570.500(c) CDBG $20,585 Location: 525 S. Loo 288, Suite A, Denton Texas 76205 HOME $0 Start Date 10/01/09 Other Sources $702,156 Completion Date 09/30/10 Total $722,741 Page 12 HOME ADMINSTRATION HOME funds will be used for salaries associated with carrying out HOME projects by the City's Community Development Department. Funding includes $4,500 in HOME Program Income. 21H HOME Admin/Planning Costs of PJ (subject to HUD Matrix Code: 10%) 92.207 (a) Objectives: ❑ Suitable Living Environment Eligibility: N/A ❑ Decent Housing Priority Need: Planning & Administration ❑ Creating Economic Opportunities Specific Objective: N/A Outcomes: Specific Outcomes N/A ❑ Availability/Accessibility Indicators: ❑ Affordability Project Goals: N/A ❑ Sustainability Primary Purpose: ❑ Homeless ❑ HIV/AIDS ❑ Disabled Funding: Subrecipient: Local Government CDBG $ Location: Community Wide HOME $57,156 Start Date 08/01/09 Other Sources $0 Completion Date 07/31/10 Total $57,156 HOME IMPROVEMENT PROGRAM Rehabilitation of owner-occupied structures in targeted neighborhoods. Funds are available in low interest loan and grant combinations. Homes that are not suitable for rehabilitation are demolished and reconstructed. Funding also includes estimated program income for HOME ($40,500) and CDBG ($24,000). Program will be carried out b the City's Community Development Department. HUD Matrix Code: 14A Rehab; Single-Unit Residential 570.202 Objectives: Eligibility: 570.208(a)(3) - Low/Mod Housing ❑ Suitable Living Environment ® Decent Housing Priority Need: Owner-occupied Housing ❑ Creating Economic Opportunities Specific Objective: Improve the quality of owner housing. Outcomes: Specific Outcomes Number of units brought from substandard to ❑ Availability/Accessibility Indicators: standard condition - 8 housing units ® Affordability Project Goals: 8 housing units ❑ Sustainability Primary Purpose: ❑ Homeless ❑ HIV/AIDS ❑ Disabled Funding: Subrecipient: Local Government CDBG $102,961 Location: Community Wide HOME $446,594 Start Date 08/01/09 Other Sources Completion Date 07/31/10 Total $549,555 Page 13 HOPE, INC. Provision of financial assistance and case management to families who are homeless or at risk to be homeless and seeking to secure, stable, permanent housing. Funds will be used to assist the homeless and potentially homeless families with rent, utility, food, and childcare needs and partial salary for the program case manager. Program will be carried out b HOPE, Inc. HUD Matrix Code: 05 Public Services (General) 570.201(e) Objectives: Eligibility: 570.208(a)(2) - Low/Mod Limited Clientele ® Suitable Living Environment ❑ Decent Housing Priority Need: Public Services ❑ Creating Economic Improve the services for low/moderate income Opportunities Specific Objective: persons. Outcomes: Specific Outcomes Number of persons assisted with improved access to ® Availability/Accessibility Indicators: a service - 40 persons ❑ Affordability Project Goals: 40 People ❑ Sustainability Primary Purpose: ® Homeless ❑ HIV/AIDS ❑ Disabled Funding: Subrecipient: Private 570.500(c) CDBG $20,950 Location: 117 West Sycamore, Denton, TX 76201 HOME $0 Start Date 10/01/09 Other Sources $444,500 Completion Date 09/30/10 Total $465,450 MINOR REPAIR PROGRAM Program serves low-income homeowners by providing a grant of up to $5,000 for repairs. Repair cannot be covered by homeowner's insurance. Program carried out by the City's Community Development Department. HUD Matrix Code: 14A Rehab; Single-Unit Residential 570.202 Objectives: Eligibility: 570.208(a)(3) - Low/Mod Housing ❑ Suitable Living Environment ® Decent Housing Priority Need: Owner-occupied Housing ❑ Creating Economic Opportunities Specific Objective: Improve the quality of owner housing. Outcomes: Specific Outcomes Number of units brought from substandard to ® Availability/Accessibility Indicators: standard condition - 35 housing units ❑ Affordability Project Goals: 35 housing units ❑ Sustainability Primary Purpose: ❑ Homeless ❑ HIV/AIDS ❑ Disabled Funding: Subrecipient: Local Government CDBG $111,326 Location: Community Wide HOME $0 Start Date 08/01/09 Other Sources $0 Completion Date 07/31/10 Total $111,326 Page 14 PARD - MLK SUMMER PROGRAM Provision of a summer day program targeted to youth in Southeast Denton. Funds will be used to provide scholarships for low-income participants. Program will be carried out by the City's Parks and Recreation Department. HUD Matrix Code: 05L Child Care Services 570.201(e) Objectives: Eligibility: 570.208(a)(2) - Low/Mod Limited Clientele ® Suitable Living Environment ❑ Decent Housing Priority Need: Public Services ❑ Creating Economic Improve the services for low/moderate income Opportunities Specific Objective: persons. Outcomes: Specific Outcomes Number of persons assisted with improved access to ® Availability/Accessibility Indicators: a service 10 persons ❑ Affordability Project Goals: 10 people ❑ Sustainability Primary Purpose: ❑ Homeless ❑ HIV/AIDS ❑ Disabled Funding: Subrecipient: Local Government CDBG $6,000 Location: 1300 Wilson St., Denton Texas HOME $0 Start Date 06/01/10 Other Sources $0 Completion Date 08/31/10 Total $6,000 PARD - DENIA SUMMER PROGRAM Provision of a summer day program targeted to youth in the Owsley Neighborhood. Funds will be used to provide scholarships for low-income participants. Program will be carried out by the City's Parks and Recreation Department. HUD Matrix Code: 05L Child Care Services 570.201(e) Objectives: Eligibility: 570.208(a)(2) - Low/Mod Limited Clientele ® Suitable Living Environment ❑ Decent Housing Priority Need: Public Services ❑ Creating Economic Improve the services for low/moderate income Opportunities Specific Objective: persons. Outcomes: Specific Outcomes Number of persons assisted with improved access to ® Availability/Accessibility Indicators: a service - 10 persons ❑ Affordability Project Goals: 10 people ❑ Sustainability Primary Purpose: ❑ Homeless ❑ HIV/AIDS ❑ Disabled Funding: Subrecipient: Local Government CDBG $6,000 Location: 1300 Pavin, Denton Texas HOME $0 Start Date 06/01/10 Other Sources 0 Completion Date 08/31/10 Total $6,000 Page 15 SIMMONS AND PARK STREET SEWER LINE REPLACEMENT Replacement of existing 6" sewer line on Simmons and Park Streets with a new 8" from Dallas Drive around the cul-de-sac to the middle of Park Street. The existing sewer line is in a state of disrepair. The replacement line will require a new 8" line and manholes for approximately 1140 feet. The new line would be constructed and placed in the street. Project will be carried out by the City's Engineering Department. HUD Matrix Code: 03J Water/Sewer Improvements 570.201(c) Objectives: Eligibility: 570.208(a)(1) - Low/Mod Area ® Suitable Living Environment Priority Need: Infrastructure ❑ Decent Housing ❑ Creating Economic Specific Objective: Improve quality/increase quantity of public Opportunities improvements for low income persons. Specific Outcomes Number of persons assisted where activity was used Outcomes: Indicators: to meet a measurable improved quality - 2192 ® Availability/Accessibility people ❑ Affordability Project Goals: 2192 people ❑ Sustainability Primary Purpose: ❑ Homeless ❑ HIV/AIDS ❑ Disabled Funding: Subrecipient: Local Government CDBG $174,236 Location: CT 21200 BG 2 - 72.72% LM HOME $0 Start Date 10/01/09 Other Sources $0 Completion Date 09/30/10 Total $174,236 SPAN, INC. (SERVICES PROGRAMS FOR AGING NEEDS) Provision of congregate and home-delivered meals to the elderly. Funds will be used to buy meals. Program will be carried out by SPAN. HUD Matrix Code: 05A Senior Services 570.201(e) Objectives: ® Suitable Living Environment Eligibility: 570.208(a)(2) - Low/Mod Limited Clientele ❑ Decent Housing Priority Need: Non-housing special needs ❑ Creating Economic Improve the services for low/moderate income Opportunities Specific Objective: persons. Outcomes: Specific Outcomes Number of persons assisted with improved access to ® Availability/Accessibility Indicators: a service - 350 persons ❑ Affordability Project Goals: 350 people ❑ Sustainability Primary Purpose: ❑ Homeless ❑ HIV/AIDS ❑ Disabled Funding: Subrecipient: Private 570.500(c) CDBG $18,374 Location: 1800 Malone Street, Denton, Texas 76201 HOME $0 Start Date 10/01/09 Other Sources $658,288 Completion Date 09/30/10 Total $676,662 Page 16 TENANT BASED RENTAL ASSISTANCE Provision of rental assistance to special needs households including elderly and disabled. Funds will be utilized to make direct rental payments to owners/manager s of units where a special needs TBRA resident resides. Project will be carried out by the City's Community Development Department. HUD Matrix Code: 05S Rental Housing Subsidies (TBRA) Objectives: Eligibility: N/A ❑ Suitable Living Environment Priority Need: Rental Housing ® Decent Housing ❑ Creating Economic Specific Objective: Improve access to affordable rental housing. Opportunities Outcomes: Specific Outcomes Number of assisted units occupied by elderly or ❑ Availability/Accessibility Indicators: disabled households - 2 households ® Affordability Project Goals: 2 households ❑ Sustainability Primary Purpose: ❑ Homeless ❑ HIV/AIDS ❑ Disabled Funding: Subrecipient: Local Government CDBG $ Location: Community wide HOME $8,000 Start Date 08/01/09 Other Sources $ Completion Date 07/31/10 Total $8,000 Page 17 V') ~ al~ - ~ ~o N oo o~ ~ r o o c~i o 0 0 ~ N ~ ~n N J br Cr ~ ~ M Ef3 7t \ _ O O O O J \ J ~ J T \O O 7t O ' ~ rl In Vl ~I O 7t M M N bl9 -,t 00 CJ \ ~.J s- •'C~' N. U N N U N N x U N b0A to A Q C~ p ~O P" 0 O a 0CD p S cl 'o to 'C V cl w O to -C pip O w cd N v n P" U O p cl C) Cl U) cj to -C, U ~ ' Ei to Q cl ono cl CA to cl O on a~ o Cj ' N Q ci C,) -0 CJ C,j :z cl C) C) C) C) C5 un 'o C) cl C,3 o 1 o o C) C'j :z -0 oc w° cl P- Q w cod o P. cl ° a d a u ° w Z ~ U cn o cli Q o cli N O O ~ M N O ~ y• y M ~ N ~ y, M M 00 " Cf? M T r. O O O Ef3 E!) E!) J ter, 1 J ~ O O O ' ` Ef3 E!) ~n TCLZ M 7t V M M ~ N ^ U O\ br cd cl M +cq U Z ~j p yU. p yU. . U U N bUA M U cd M U cd a o a Cj N U O 0 to O s. 3 C U O v~ U yU 0 clj s U C'J ~o O U to +C~ C) C~ to -0 C) cl U U j p O H U sue.. n O S• N U) l 6" 0 `+-1 bA c N 4 O ti O° U O U P. O o too O U 'C 'C 'C U O p °O ncli Cut O U U O cl O a O N O l~ M Cf? J ~ ry T \ \ F O N O ~f O N ~ J O N 1 ~ N M Ef3 ~ O O O ` Ef3 E!) E!) TCLZ O O O C O O O cl U U ° ° O ter` ` CA N ? O U V O U ~Uj O U U D N ~ N CA N ~ CA W-~ s~ N v 'C O U Cj N c U J4 to clj V] cj to cd CIJ U N + 'C N cl 0. '0 -0 cl to p U vN O U Q 0 U cn O a N ° to p v' to -0 M '0 (41 -C, C CIJ P. on 0 to cl o y O o o U U to N to O ~ 'C U Q U to Z to -0 0 p~ ° N OTHER RESOURCES AVAILABLE GENERAL FUNDS Also, during the 2009 Program Year, the City of Denton plans to undertake additional activities/programs to address local objectives and strategies using City of Denton General Fund dollars. The Human Services Advisory Committee has recommended funding the following human services programs. It is recommended that these activities be funded through Denton's general fund budget. City Council will consider approval of the following recommendations in September 2009. Category / Agency General Other Total Funds Funds Funds Aging Services Day Stay for Adults - 12 people $7,500 $340,168 $347,668 RSVP - 520 people $7,530 $233,183 $240,713 Emergency Services AIDS Services of North Texas - reported in CDBG $546 $0 0 Denton County HMIS - N/A $18,000 $70,668 $88,668 Day Care /After School Care Denton Christian Preschool - 114 people $22,000 $444,511 $466,511 Fred Moore Day Nursery - 200 people $23,720 $389,020 $412,740 Child/Family Services CASA - 224 people $10,000 $655,344 $665,344 Children's Advocacy Center - 275 people $7,500 $869,000 $876,500 Communities in School - 1200 people $5,000 $1,169,648 $1,174,648 Other Services Camp Summit- 8 people $4,000 $1,275,225 $1,279,225 People's Clinic of Denton County - 1200 people $14,000 $662,780 $676,780 Total $119,790 $6,109,547 $0,229,343 Page 21 STRATEGIES & PROPOSED PROJECTS The City of Denton's 2009 funding has been allocated to programs and activities that meet objectives stated in Denton's five-year strategic plan. Following is the list of the five-year strategies and proposed outcomes stated in the 2005-09 Consolidated Plan and proposed projects and activities that will be undertaken to meet those strategies. Outcome/ 5-yr Consolidated 5-yr Consolidated Plan 1-yr Action Plan Objective Plan Outcome Measures Proposed Activities Strategy RENTAL HOUSING STRATEGIES H-3.1 Encourage and An addition of 100 Provide support for low-income housing Sustainability support the affordable units in mixed ax credit and bond proposals for of Decent development of small income developments development. Housing mixed-income rental would assist in meeting developments in his outcome measure. accessible areas. H-2.1 Encourage self- Rental assistance and other Work with and provide funding when Affordability of sufficiency among forms of public assistance appropriate to support transitional Decent Housing households that to approximately 25 housing and self-sufficiency programs currently receive households administered by Denton Housing rental subsidies and Authority and HOPE, Inc. other forms of public support. H-1.1 Encourage and Rehabilitation Continue to support effort in the City's Availability/ support the Approximately 25 units. Rental Rehabilitation Program with Accessibility of rehabilitation of residual funds. Decent Housing substandard units. H-2.2 Encourage and assist Approximately 250 renters Continue supporting the City's Homebuyer Affordability of ow-income renters to will be assisted. Assistance Program, DAHC's Affordable Decent Housing become homeowners. Housing Opportunity Program, DAHC's refill New Construction Program and Nevada Court Project, Denton Housing Authority's Family Self Sufficiency Program and Habitat or Humanity. H-1.2 Target programs and our newsletters per year will Funding of the Tenant-Based Rental Availability/ information to be sent out. Additional Assistance for elderly and disabled. Accessibility of minorities and the information will appear on Disseminate program information in Spanish Decent Housing elderly. able channel. and English to organizations serving these groups. OWNER-OCCUPIED HOUSING STRATEGIES H-2.3 Educate homeowners reformation will be provided 8 households will be provided successful Affordability of regarding home to 20-25 households homeowner education. Decent Housing maintenance and budgeting for major and minor repairs and safe leaning practices. H-2.4 Assist low and Provide minor repairs to Funding of the Minor Repair Program for 35 Affordability of moderate-income approximately 120 very low households. Decent Housing households with minor to moderate-income housing repairs and homeowners. eatherization. Page 22 Outcome/ 5-yr Consolidated 5-yr Consolidated Plan I-yr Action Plan Objective Plan Outcome Measures Proposed Activities Strategy H-3.2 Encourage and assist Assistance to 25 to 35 Funding of the Home Improvement Program Sustainability ow and moderate- households. It is anticipated or 8 households. of Decent income homeowners to that 25%-35% of the annual Housing maintain their units up allocation will be dedicated to to current City of his targeted area. Denton code standards ~n targeted areas. HOMEOWNERSHIP & PRODUCTION OF AFFORDABLE UNITS H-2.5 Educate homebuyers Information will be provided Support of Fannie Mae and HUD approved Affordability of regarding home buying to 150 prospective homeowner-ship workshops by local Decent Housing process and household omebuyers. agencies and lenders budgeting. H-2.6 Encourage and assist Approximately 150 renters Support the City of Denton's Homebuyer Affordability of ow and moderate will be assisted. Assistance Program and DAHC's Affordable Decent Housing income renters to Housing Opportunity Program with residual ecome homeowners. It funds. is anticipated that 35% to 50% will be minority households. H-2.7 Support production of Construction of an estimated Support of DAHC and City's Infill New Affordability of affordable units. 5 new units. Construction Program and DAHC and Decent Housing Habitat for Humanity's New Construction Program. CONTINUUM OF CARE - PREVENTING HOMELESSNESS H-2.8 Provide assistance for 1) Support at least three Ia) Support and refer persons to local Affordability of ow-income households educational classes business and agency's' First Time Decent Housing to secure and sustain concerning securing Homebuyer classes and Credit safe, decent affordable and maintaining a Counseling Classes housing home. lb) Provide funding to HOPE, Inc in support of programs including Support 250 individual/ Housing Counseling family units of services a) Provide administrative support and to secure and maintain funds including any Emergency housing including Shelter Grant Program or Emergency prevention of Food and Shelter Program Awards to foreclosure and eviction HOPE, Inc and The Salvation Army a year for homelessness prevention assistance. b) Continue to support the Tenant Based Rental Assistance from HOME funds to the Elderly and Disabled to maintain independent living and to prevent homelessness. CONTINUUM OF CARE - OUTREACH AND ASSESSMENT Page 23 Outcome/ 5-yr Consolidated 5-yr Consolidated Plan 1-yr Action Plan Objective Plan Outcome Measures Proposed Activities Strategy SL-1.1 Improve community 1) Support at least five 1) Provide funds to the Denton County Availability/ assessment of needs and homeless service Homeless Management Information ccessibility of services available agencies participating System to enroll and support Suitable Living in the HMIS in three homeless service agencies. Environment years. a) Complete final phase of Denton Complete County HMIS project implementation of the Implementation including contracts Denton County HMIS with software provider and for HMIS project in three years. technical services support. 3) Support a county-wide b) Assist Denton County HMIS Project coordinated Discharge management to complete HMIS Policy and Plan to End policies and procedures. Chronic Homelessness 3) Assist the Denton County Homeless in two years Coalition to organize a taskforce to create and implement a plan to in Chronic Homelessness including a coordinated discharge policy. CONTINUUM OF CARE - EMERGENCY SHELTER H-1.3 Meet the emergency 1) Support at least 1,000 1) Provide funds to the Denton County Availability/ shelter and basic health, emergency shelter Friends of the Family Safe Shelter. Accessibility of food, clothing, and nights of stay a year. 2a) Assist The Salvation Army, and Decent Housing personal hygiene needs ) Assist local agencies to Denton County Friends of the of the homeless and apply for at least three Family to apply for Emergency victims of domestic grants to provide Shelter Grant Program Funds violence. supportive services to 2b) Assist Denton County MHMR to all homeless, victims of apply for Supportive Housing domestic violence, Program and/or Shelter Plus Care homeless families or Funds. homeless youth. 2c) Assist AIDS Services of North Texas apply for Supportive Housing Program Funds. Page 24 Outcome/ 5-yr Consolidated 5-yr Consolidated Plan I-yr Action Plan Objective Plan Outcome Measures Proposed Activities Strategy CONTINUUM OF CARE - TRANSITIONAL HOUSING H-1.4 Meet the transitional 1) Support at least 100 la) Provide funds to HOPE's transitional Availability/ housing and supportive individuals/ families shelter program to assist 40 people. Accessibility of service needs of the provided with 2a) Provide local agencies with Decent Housing homeless and victims of transitional housing a information on grant opportunities domestic violence in year. for funds to support transitional reparation for a move ) Assist local agencies to housing and supportive services. to permanent or er permanent supportive apply for at least two 2b) Provide documentation for and assist housing. grants to provide with the completion of applications additional transitional to request Emergency Shelter Grant housing and supportive Funds and Supportive Housing services Program funds for transitional 3) Support the increase housing and supportive services use of transitional 3) Attend Ten Year Plan to End housing and/or Homelessness meetings and provide supportive services to information on the importance and prepare individuals for need for transitional housing and/or permanent housing in supportive services. the Ten Year Plan to End Homelessness. CONTINUUM OF CARE - TRANSITION TO PERMANENT HOUSING AND INDEPENDENT LIVING H-3.3 Provide homeless and 1) Assist agencies to apply la) Assist AIDS Services of North Texas Sustainability victims of domestic for at least two grants to and Denton County MHMR apply f Decent violence with permanent provide permanent for Supportive Housing Program Housing or permanent supportive supportive housing with funds for permanent supportive housing. an emphasis on chronic housing program projects. homeless and persons lb) Provide local agencies with with a severe mental information on grant opportunities illness and/ or HIV for funds to support transitional positive status. housing and supportive services. Assist at least two 2a) Participate in the Affordable Housing community Coalition and the Denton County partnerships/ Homeless Coalition. collaborative efforts to 2b) Provide funding to support programs provide additional of HOPE, Inc, Denton County permanent housing Friends of the Family, and Denton opportunities to the Affordable Housing Corporation homeless and victims of who have a collaborative effort to domestic violence move victims of domestic violence from emergency shelter to Transitional housing in preparation for stable, sustainable permanent housing. Page 25 Outcome/ 5-yr Consolidated 5-yr Consolidated Plan I-yr Action Plan Objective Plan Outcome Measures Proposed Activities Strategy LEAD-BASED PAINT STRATEGIES H-1.5 Educate homeowners, 30 households and 50-75 8 homeowners and 12 contractors or Availability/ rent property contractors and property property managers will receive field Accessibility owners/managers and managers received field guides for Lead Paint Safety painting, of Decent contractors regarding guides for painting, home home maintenance and renovation work Housing disclosure, the history maintenance and .nstructions. Four owners, managers or of lead-based paint, its renovation work contractors receive individual safe work hazards to children instructions. 20 owners, practice video training and lead-related and how to use safe managers or contractors regulation training. work practices when receive individual safe disturbing paint in work practice video older housing. raining for the five-year period H-1.6 Reduce Lead-Based Average of 40 units will properties built before 1978, two Availability/ Paint Hazards in receive lead-based paint minor repairs, three owner occupied ccessibility owner and renter- inspection, hazard control rehabilitations and three homebuyer of Decent occupied residential eduction work or assistance projects will be completed and Housing nits as needed. abatement, pass receive lead-based paint reduction work, inspections and, when ass inspections and meet final clearance required, meet final in compliance with 24 CFR 35 regarding clearance over the five- lead-based paint during 2009. For the year period. omebuyer Assistance Program, only a visual inspection will be conducted and ro ertmust ass inspection. HUMAN SERVICES STRATEGIES SL-1.2 Meet the basic food 1) Support at least 5,000 la) Support the Community Food Availability/ needs of the homeless emergency meals and food Center. Accessibility of and low-income bags a year a) Provide funds to support the Suitable Living Nutrition Center of AIDS Services Environment ) Support at least 350 of North Texas to provide an meals and nutritional food estimated 55 persons with weekly bags/shops a year nutritional shops. b) Provide funds to support SPAN who will provide meals to 350 elderly. Page 26 Outcome/ 5-yr Consolidated 5-yr Consolidated Plan I-yr Action Plan Objective Plan Outcome Measures Proposed Activities Strategy SL-1.3 Meet the basic shelter 1) Support at least 1,000 1) Provide funds to the Denton County Availability/ needs of homeless and emergency shelter Friends of the Family Safe Shelter to ccessibility of ow-income persons nights of stay a year assist 2,079 people. Suitable Living ) Support at least 100 2) Provide funds to HOPE, Inc to Environment individuals/ families support a transitional housing provided with program for an estimated 40 persons. transitional housing a 3a) Provide 10 staff hours to support the year Denton County Homeless Count 3) Provide at least 100 conducted by the Denton County hours of staff time in Homeless Coalition (DCHC). support of at least 3 3b) Provide 60 staff hours to support the projects for the Denton DCHC application for Continuum of County Homeless Care funds. Coalition a year 3c) Provide 30 staff hours to support the Support 250 individual/ DCHC application for Emergency family units of case Shelter Grant Program Funds. management and other 4) Provide support to HOPE, Inc 30-90 services to maintain day program. housing including prevention of foreclosure and eviction a year SL-1.4 Foster and maintain an 1) Participate in at least 3 la) Participate in the Denton County Availability/ nvironment where coalitions and/or Homeless Coalition in the effort to Accessibility of families, neighborhoods, collaborative efforts for prevent and end homelessness. Suitable Living and communities enjoy community initiatives lb) Participate in the Success by Six Environment strong, supportive to foster and maintain Children's Coalition in an effort to relationships an environment to improve the lives of children and promote strong, their families. supportive relationships lc) Participate in the Denton Information Support at least 250 Network in the effort to network and individuals/ family increase collaboration between units of childcare, after- health and human service agencies in school and summer the City of Denton. care, parenting skills, a) Provide funds to three daycares to and adult education support the provision of childcare to assistance a year an estimated 499 families. 3) Support at least 200 b) Provide funds to after school/summer units of domestic care programs and the provision of violence and sexual childcare for 20 children. assault direct services 3a) Provide support to Denton County over a year Friends of the Family for the provision of domestic violence and sexual assault victim services including counseling. Page 27 Outcome/ 5-yr Consolidated 5-yr Consolidated Plan 1-yr Action Plan Objective Plan Outcome Measures Proposed Activities Strategy (Continuation from ) Support at least 100 3b) Provide support to Children's previous strategy) units of domestic Advocacy Center for Denton County violence and sexual to provide sexual abuse/assault osier and maintain an assault prevention services to children and non- families, where education and training offending families members. a com nemunitiighbes neighborhoods, s, a year ) Provide support to Denton County and d communities strong, supportive Friends of the Family for the relationships provision of community education and offender classes to prevent domestic violence and sexual assault. SL-1.5 City residents have 1) Support at least 75 1) Provide support the Family Health Availability/ access to health care to units of health care Care and People's Clinic for primary Accessibility of be as physically and services a year health care and pre-natal services to Suitable Living mentally fit as possible a) Participate in at least 2 at least 1263 persons. Environment coalitions/ a) Participate in the 100% Geriatric collaborative efforts to Services in Denton County improve availability of Workgroup in the effort to enrich and health care especially improve the lives of the elderly. for low- income b) Participate in the Denton County persons, elderly, and Federation of the Families effort to people with disabilities support and promote advocacy skills b) Support at least 25 in families with children with severe units of mental health emotional, behavioral, and mental care services health needs. INFRASTRUCTURE & PUBLIC SERVICE FACILITIES STRATEGIES SL-3.1 Street paving and Paving and repaving projects of applicable this year. Sustainability of repaving, installation of will support 700 people. Suitable Living curb and gutter. Environment SL-3.2 Installation of new Sidewalk projects will Provide funding for new sidewalks on Sustainability of sidewalks and support 235 people. Anderson Street. Suitable Living replacement sidewalks. Environment SL-3.3 Installation of water and Water and sewer projects will Provide funding for replacement of sewer Sustainability of ewer lines. support 120 people. lines on Boardwalk, Chambers, Simmons and Suitable Living Connection of ark Streets. Environment residential units to services. SL-3.4 Installation of drainage 10-15 properties will be of applicable this year. Sustainability of improvements including affected by drainage Suitable Living improvements that will 'improvements. Environment emove residential properties from oodplain. SL-3.5 Rehabilitation and Improvement to at least 2 Provide funding for project at the Denton Sustainability of expansion of public public service facilities. City County Day School. Suitable Living services facilities. Environment SL-3.6 Improve and/or expand Improvements to least 2 park of applicable this year. Sustainability of ark facilities including facilities. Suitable Living pen space, playground Environment nd other recreational acilities. Page 28 Outcome/ 5-yr Consolidated 5-yr Consolidated Plan I-yr Action Plan Objective Plan Outcome Measures Proposed Activities Strategy DEMOLITION STRATEGIES SL-3.7 Continue to demolish To demolish 25 structures Continued support for the Demolition Sustainability substandard buildings to during the five-year period. Program with residual funds. of Suitable improvement the wing appearance and safety of Environment neighborhoods ANTI-POVERTY & ECONOMIC DEVELOPMENT STRATEGIES 0-3.1 Support training and Provide economic Provide non-federal incentives to Sustainability expand training and opportunity by supporting organizations to create jobs. Work with job of Economic employment activities activities that create jobs. raining organizations to promote training in pportunity targeted to poverty and specific areas of need. very low-income households. 0-1.1 Expand educational Provide counseling and Provide funding to transitional housing Availability/ opportunities for those education services to 25-35 providers. Request that information on Accessibility of seeking transitional transitional housing clients. educational opportunities be provided to Economic housing or other housing clients. Opportunity support services. 0-1.2 Encourage support of Over the five-year period 25+ Monitor federally funded projects and work Availability/ Section 3 goals by local individuals hired for projects with contractors to ensure that Section 3 Accessibility of contractors. by private contractors. requirements are fulfilled. Economic Opportunity 0-2.1 Encourage start-up and Provide loan assistance to 25 of applicable this year. Additional funding Affordability of expansion of micro businesses over the or the Small Business Loan Program is not Economic micro/cottage industries rive-year period. available. Opportunity supporting very low- ~ncome households. BARRIERS TO AFFORDABLE HOUSING STRATEGIES H-1.6 Continue the following Improve accessibility and Quarterly newsletter will be sent out to Availability/Ac activities: availability of information on clients, agencies, churches, neighborhood essibility of homeownership fair, affordable units by providing associations, libraries, recreation centers and Decent Housing newsletters, public two homeownership fairs, any others. Two public hearing will be hearings, fair housing quarterly newsletters, at least held during the preparation of the annual education, and joint public hearings annually. action plan and one during the preparation of activities with other he performance report. housing providers. H-2.9 On an annual basis, Create affordability in Continue to request impact fee grants from Affordability of request approval and housing through provision of he General Fund for housing non-profits for Decent Housing funding for impact fee an average of three to five he construction of affordable housing. grants for producers of grants per year over the five- affordable housing. year period. H-2.10 Allocate funding to the Create affordability in Support for Denton Affordable Housing Affordability of on-profit and for-profit housing through construction Corporation's Nevada Court and Oriole court Decent Housing organizations that are of a minimum of 75 Project, Habitat for Humanity New developing affordable affordable single-family and Construction Program and the City's Infill housing. 100 affordable rental units New Construction Program. lover the five-year period. Page 29 2009 PROPOSED PROJECT MAP With Minority Concentrated areas by Census Tracts . :q r: fi 1,,,.. t 1 - ~ ~ ~ ~ i "..a ,r ~ ~ ~ l_, f ~ _1 y..~ 111, ~ L f t l I _ ~ ~I 1 --T r~J ~y -7-~ o-- ~I9 _ I ~L~ _ III ~q_,,..~. ~ _ ~ ~ f f I L . , - ~I- s- ~ ~ r i__. i I~ ,I ~ ~ ~ _ ~ . w ~ ; ~ ~ ~ ~ ~ nor y r C t i ~ TT ~ ~ ~ , ~ ~ ~ Concentration - ~ ~ , ~ _ _ ? ~ i ~ r r _ µ z , _ , , ~,w a ~ r~~ a~. 3 ~ ~ ~ ! ~ ~ b Census Tracts - ~ IttI 111I +w Y- r , ~ ` ~7 r ~ ~ ~ F t ~ - ~ i ~ , ~ q~: ~ - - ~ ~ 1 I _ y .7 } I . w ~ +3 ~ . ~~~,r ~ {1` ~ , ; , ~ r~.~ ► ~ +50% ~ .o~ ; ~ ~ _ . ~ 0 { _ . ~ - ~r ~ ~ ~ ~ ~ Source: U.S. 2000 r ~f 11 _ ~ ~ . i f r ~e . vy , " ~ 'y ( ~ ~ yh ~ 7 ~ ~ ~ ,4~ Census v. r ~ ~ 4 ~ , t. - 'e ~ 4 _._.y _ I ~ i M ` ~ ~ ~ ` r h YP ~ L l `7 `jr ~ I - _f tj 2009 Projects and Activities 1. AIDS Services of North Texan 6. Denia Summer Program 2. Denton City County Day Schools 7. MLK Summer Program 3. Chambers, Boardwalk, Simmons and Park 8. Fred Moore Park Projects Sewer Replacement 9. Day Stay for Adults in Corinth, Texas 4. Anderson Street Sidewalks 10. Retired Senior Volunteer Program 5. Family Health Carey 11. Redwood Sewer Line Community-Wide Activities CDBG and HOME Administration Tenant Based Rental Assistance Denton Affordable Housing Corp. -Rental HOPE, Inc. Home Improvement Program Services Program for Aging Needs, Inc Minor Repair Program Geographic distribution of proj ects is based on citizen, service provider and City staff input regarding significant needs in the low-income community, specifically in regard to public facility improvements. Home Improvement Program activities are limited to low-income areas that are zoned residential. This is to ensure that substantial amounts of funding are not expended on housing in areas zoned commercial or industrial, where the zoning transition in the near future, would no longer allow residential development. Public service activity locations are provided on the above map, however, services provided by each of the organizations is available to low and moderate-income households throughout the Denton community. Page 30 OTHER PROGRAM SPECIFIC REQUIREMENTS HOME PROGRAM - FORMS OF INVESTMENT The City of Denton, through the Homebuyers Assistance Program (HAP) and Denton Affordable Housing Corporation, through the Affordable Housing Opportunity Program (AHOP) will provide subsidies to low and moderate-income homebuyers. Under the HAP program the maximum HOME subsidy will be $14,900. This amount includes all investment that enables the family to purchase the unit. This sets up a 5, 7 or 10-year recapture period for all homebuyers. The subsidy is provided as a 5, 7 or 10 year deferred forgivable loan. Under the AHOP program the maximum HOME subsidy will also be $14,900 and is set up as a 5-year recapture period. According to the promissory note, the borrower agrees to occupy the property as his/her primary residence for the term of the loan from the execution date of the promissory note and deed of trust. The borrower must also agree to pay all mortgage payments, taxes and other assessments on the property in a timely manner. In the event the borrower complies with the terms of the promissory note, deed of trust and the program, the City of Denton and DAHC agree to release the maker of the note from payment of the loan. Borrower agrees not to sell, lease, or transfer any interest therein during the term of the loan. In the event that the borrower sells, leases or transfers the property, the City of Denton and DAHC will require that the loan balance be repaid. If the borrower sells the property or if the property is foreclosed upon, or transferred in lieu of foreclosure, the loan balance will be repaid from the net proceeds. Net proceeds are defined by HUD as the sale price less closing costs and mortgage payoff. If the net proceeds of the sale are not sufficient to repay the loan balance, the City of Denton and DAHC can reduce the amount based on the available net proceeds at the time of sale. Recaptured funds from the either program will be used to assist other first-time homebuyers. Funding agreements and/or contracts with community housing development corporations and/or subrecipients will include a requirement that the organization comply with HOME regulations in regard to continued affordability of assisted units. There are no other forms of investment that are not described in §92.205(b) by the City of Denton. MONITORING STANDARDS AND PROCEDURES The City of Denton will complete an annual comparison of the objectives stated in the 5-year Consolidated Plan with actual accomplishments. Based on the comparison the City of Denton will consider making changes or updates to the 5-year Consolidated Plan. The City of Denton provides CDBG and General Funds to several non-profits agencies and departments providing supportive services. The City's Human Services Coordinator monitors agencies on a daily basis. Each year agency staff is provided with training on financial procedures and data collection. Agency staff is provided with appropriate Federal guidelines and OMB circulars to ensure that they have access to pertinent information. Agencies are required to provide quarterly beneficiary and financial reports. A year-end report is required to detail annual expenditures, beneficiary information, funding sources and major accomplishments. Each year, the Human Services Coordinator completes a risk analysis based on established criteria. On-site monitoring visit are completed on all "high risk" organizations. The on-site monitoring includes a review of client files, financial and accounting records, and procurement procedures. Independent audits are also submitted and reviewed by the City staff Page 31 For the HOME program, a similar process is also followed to monitor the Denton Affordable Housing Corporation, a certified CHDO. The City's Community Development Coordinator with the help of the Community Development staff monitors the CHDO on a regular basis to ensure that the non-profit is meeting HOME regulations. TBRA units and residents are monitored on an annual basis to ensure that all HOME requirements are met. Also, the only rental project not funded through the local CHDO, is a project that provides transitional housing and services for single-parent families. This organization is also monitored annually including a review of the client files for income information. Programs and projects carried out by the City are monitored daily. Staff maintains checklists on individual projects to ensure that all required procedures have been completed. The Housing Rehabilitation Staff maintains records on all rehabilitation projects. The Community Development Coordinator maintains records for the Homebuyer Assistance Program and the Administrator maintains records on public infrastructure projects. The Administrator reviews and certifies all applications prior to provision of assistance. A year-end report that details expenditures, revenue, beneficiary information and major accomplishments is also required from all City programs and proj ects. PUBLIC HOUSING IMPROVEMENTS The City of Denton has no public housing units. PUBLIC HOUSING RESIDENT INITIATIVES The City of Denton has no public housing units. However, City staff will continue to work with the Denton Housing Authority to promote the Homebuyers Assistance Program to those currently receiving Section 8 assistance. Information on the Homebuyer Assistance Program has been mailed to all Section 8 recipients with their utility bills. No resident initiatives strategies were included in the Consolidated Plan. INSTITUTIONAL STRUCTURE The City of Denton's 2005-2009 Consolidated Plan notes six "gaps" in organizational structure that hinder effective housing and social services delivery. These gaps include the following with the City's efforts to ameliorate these conditions during the coming year: 1. Need for more effective communication between housing organizations in the North Texas area, including those serving the City of Denton. Housing organizations often compete for resources when coordination and partnership efforts would be more effective. Work with the Denton Housing Coalition to bring other housing providers and professionals into the organizations. If funding is available, staff will participate in the North Texas Housing Coalition that includes larger metroplex communities such as Dallas and Fort Worth. Form coalitions and collaborative relationships with NTHC members and other area communities where appropriate. 2. Need for more effective coordination between emergency assistance agencies. Assist with the development of the Homeless Management Information System including administration of the second year of a three-year Supportive Housing Program grant received from US Department of Housing and Urban Development (HUD). Page 32 3. Lack of private contractors experienced in lead-based paint hazard reduction and abatement and lack of funding to complete projects. Contractor training along with additional funding targeted to lead abatement is critical to continue the City's owner-occupied rehabilitation program. Community Development housing staff will provide one-on-one training for local contractors to assist them in becoming familiar with safe lead procedures. Staff will also inform interested contractors if training on lead hazard control and safe work practices is available in the area. Expend additional Lead Hazard Control Grant funds recently awarded in a partnership with the City of Ft. Worth. Use area contractors for work funded through this grant if possible. 4. Lack of shelter facilities for families and youth. Work with Denton County Homeless Coalition to develop and support additional shelter facilities. Include proposed activities in the "Ten-Year Plan to End Chronic Homelessness. Some additional emergency shelter facilities or alternative housing programs should be available in Denton County within the ten-year plan period. 5. Need for service coordination and referral services that go beyond activities of HMIS, including application intake, referral and coordinated case management. Participate in an interdisciplinary initiative by the University of North Texas to create a countywide information and referral network for community housing, health, and human services. The City would participate if UNT leads this effort. 6. Lack of coordination of homebuyer/homeowner educational services needed to provide a higher level of information. Work with local agencies, lenders, realtors and universities to create a unified vision for homeownership/homeowner workshops that will provide beneficial information so that homeowners and homebuyer will be successful homeowners in the near future. ADDRESSING THE CHRONIC HOMELESS The Denton County Homeless developed the following steps during the 2005-2009 Consolidated Plan process to address chronic homeless. These steps are reaffirmed during the 2009/10 program year. The Denton County Homeless Coalition believes a structured and seamless collaborative system of services and programs can move individuals experiencing chronic homelessness to sustainable permanent supportive housing. This transition to sustainable permanent housing is the key to ending chronic homelessness. The DCHC point-in-time homeless count taken in March 2004 (Denton County Homeless Count) identified nineteen sheltered and no unsheltered chronic homeless. It is likely that there were approximately forty-three chronic homeless that were not counted. These estimates were created by applying the Texas Homeless Network Statistics of 27% of unaccompanied adults among the homeless population as chronic homeless, to Denton's estimated number of homeless. At this time DCHC is moving from a coalition philosophy to a community strategy to end chronic homelessness. Since the coalition had difficulty finding examples of ten-year plans for communities with similar demographics, the steering committee decided to take a three-step planning approach to building a community strategy to end chronic homelessness. Page 33 The first step was a small committee conducting research on strategies, stakeholders, goals, and activities to promote appropriate services for the community and chronic homelessness. In the fall of 2004, the small group completed their research and provided possible community directions for review by the steering committee. The Steering Committee used the information to move to the Step Two of the three step planning approach. The second step is the identified community stakeholders and possible actions necessary to end chronic homelessness. Upon review of other successful planning processes to end chronic homelessness, the steering committee decided to approach local elected officials to sponsor and convene the community planning process. The DCHC is in the process of completing this step of the three step planning approach. The third step is to convene a large community meeting for all identified stakeholders to review, modify, and agree upon a plan for the community to end-chronic homelessness. The DCHC expects the community plan to end-chronic homelessness will build from current programs and services available. The Denton County Homeless Coalition has identified several obstacles to ending chronic homelessness including lack of major substance abuse services, healthcare services, and transportation. These items present significant barriers in moving the chronic homeless from experiencing homelessness to maintaining a stable environment. HOME PROGRAM - MINORITY OUTREACH PROGRAM To ensure employment and business opportunities for minority businesses the City of Denton will continue to carry out and support the following activities during the program year. 1. The Denton Chamber of Commerce and the Black and Hispanic Chambers of Commerce refer building contractors to the Community Development office to apply to be added to the active contractors bid list. 2. Will request that general contractors on CDBG and HOME-funded capital projects give preference to hiring minority or women subcontractors and employees as well as include this wording in construction contracts. 3. City of Denton's legal advertisement for bids will include the equal employment statement and encourage minority participation 4. Notices are sent to both the Black Chamber and the Hispanic Chamber of Commerce in Denton informing them about the programs, the assistance and contracting opportunities that are available. 5. City of Denton will continue to attend the Small Business Development Breakfast on a monthly basis. 6. City of Denton will continue to comply with all State bidding requirements for Historically Underutilized Businesses (HUB) 7. City staff will also perform debarment reviews to ensure that no previously debarred contractors are allowed to participate in projects. 8. City will continue to advertise annually in the Denton Record Chronicle and daily in the local cable channel in search for contractors and will encourage participation by minority contractors. Page 34 Spanish Public Hearing Notes November 20, 2008 Martin Luther King Jr. Recreation Center No attendees were present at the public hearing on November 20, 2008. Public Hearing Notes November 17, 20007 MLK Recreation Center Ms. Ross reviewed the information in the 2007 Consolidated Annual Performance and Evaluation Report (CAPER) regarding the activities that had been completed during the most recent program year. She indicated that some programs such as the Denton Affordable Housing Corporation's Affordable Housing Opportunity Program and to some extent, the City's Homebuyer Assistance Program (HAP) has not been as active due to economic conditions. Ms. Ross added that activity in the City's HAP has recently been picking up. Ms. Ross asked for comments and/or questions regarding the past year's activities. Attendees had no questions or comments. Ms. Ross reviewed the activities that are eligible under both the CDBG and HOME programs. She asked those in attendance to provide comments regarding the activities that they would like to see funded with CDBG & HOME funds. She also passed out a brief survey asking how the funds should be spent and asked those present to complete the survey and return it to her. Below is a list of the comments made at the hearing: • Patrice Lyke provided a written comment and stated that the completion of the sidewalk projects in the current year budget would solve most of the pedestrian safety problems in the Panhandle area with the exception of one street. She noted that there is no sidewalk on the South side of Egan Street and that students attending Denton High School and Calhoun Middle School must walk on the street at various points in their walk to school. She asked that sidewalk improvements be extended to cover this area of Egan Street. • Carolyn Phillips requested that the City consider installing traffic lights at the following intersections: Bell and Robertson; Woodrow and Morse. Ms. Ross commented that because these are major thoroughfares and not within a specific neighborhood, it would be difficult to conclude that the installation of traffic lights would serve 51% low and moderate-income persons. • One individual stated that she would like to see a house in the area that the homeless could stay in and receive food assistance. Page 35 • Health care for seniors was noted as another needed service. • Day care for low-income families, particularly young mothers who need to work to support their children. • One individual asked about funding to purchase foreclosed properties and if Denton was setting up a program similar to Fort Worth's. Ms. Ross indicated that this was probably the Neighborhood Stabilization Program that was part of Congress's recently passed stimulus package. She added that Denton was working with the State and was trying to get some of the funding for that program. • The individual also asked how to obtain information regarding the City's Homebuyer Assistance Program and others. Ms. Ross provided information with the Community Development Department's phone numbers. • Ms. Phillips commented that funding might be used to help minority and women-owned businesses. She specifically mentioned participation in the development of mass transit and businesses that would support the transit system. • It was noted by that an organization known as "Stepping Stones" could use funding to provide assistance and care to those with Alzheimer's. She asked if the clients had to be low- income to receive assistance through these funding sources. Ms. Ross indicated that elderly persons and those with disabilities fall under the "presumed benefit" category and are considered to meet the low/mod requirement even if they are not in the actual low to moderate-income range. The possible use of Adult Day Stay for this purpose was also discussed. • Gerard Hudspeth commented about code enforcement issues such as tree trimming and demolition of substandard housing stated that funding should be used to speed up the process. Ms. Ross explained the recent slowdown in demolition of substandard housing units and stated that the Code Enforcement Department is working to get the program going again. She also stated that tree trimming could be set up as a public service under CDBG but, that funding for other services would have to be cut due to the 15% cap on public services. • Ms. Phillips asked for an explanation of the Minor Repair Program and whether additional repairs can be done on a unit if a single repair is less than the $5,000 cap. Ms. Ross explained that if there is another repair that relates to a health and safety issue or something that would cause continued deterioration of the structure, such as a roof leak, a second repair can be completed. However, cosmetic repairs cannot be done. Ms. Phillips asked if the owner can be paying on a mortgage. Ms. Ross indicated that the owner could have a mortgage. The public hearing was closed. Survey Comments: "Respite/day care program for clients with dementia. This would enable the caregivers to keep the clients at home and would provide a break for the caregivers." Page 36 ACTION PLAN PUBLIC HEARING MINUTES May 5, 2009 City Council Meeting The following written statement was read during the May 6th public hearing: "I am the chairman of SPAN, my name is Richard Taliaferro and I have lived in Denton for many years." "Tonight I wanted to let you know that I feel strongly that SPAN needs and serves increased support from the City of Denton this year and in the years to come as the senior population increases." "SPAN does much more than just making sure seniors receive a hot meal each day - we are the eyes and ears - in carefully monitoring their lives and letting the appropriate people know if there are problems that need to be address. A price tag can't be placed on this service!" "A price tag can be placed on the cost of the food. We are asking Denton to increase their contribution per meal. SPAN receives $18,500, provides #33,161 meals and receives from Denton .55 cents per meal. The handout details the contribution per meal by each city." "I respectfully ask that you review your support to the senior citizens in our community and increase your contribution to SPAN." RESPONSE TO COMMENT The 2009-2010 Community Development Block Grant Entitlement Allocation has finally been passed and an additional $3,074 has been allocated to human services. An additional $874 in CDBG funds has been awarded to SPAN, Inc. MINUTES FROM 30-DAY COMMENT PERIOD April 20, 2009 through May 19, 2009 No comments were received during the 30-day comment period on the 2009 Action Plan for Housing and Community Development: Page 37 OFFICIAL MINUTES COMMUNITY DEVELOPMENT ADVISORY COMMITTEE February 9, 2009 City Hall East Conference Room Chairperson Ron Aldridge called the meeting to order. He asked if committee members had any changes to the minutes of December 2, 2008. The members had no revisions. LaNelle Winn moved that the minutes be approved as submitted. Ray Jordan seconded the motion. The minutes were approved unanimously. Denton Affordable Housing Corporation: Jane Provo, DAHC executive director provided a brief history of the organization. She stated that DAHC had been in existence for 14 years. It is a certified Community Housing Development Organization, better known as a CHDO under the Federal HOME program. Ms. Provo added that DAHC partners with the City of Denton to use HOME funds to serve low and moderate-income households. DAHC has usually asked for funds for their homeownership program. They made needed repairs to the units and then assisted with down payment and closing costs. Ms. Provo stated that the program had worked well until the last two years. She continued to discuss the problems in the housing market and how it has adversely affected DAHC's homebuyer program. Ms. Provo stated that DAHC is asking for a shift this year to use the 15% CHDO setaside funds to make necessary improvements to rental units. Currently DAHC owns 85 rental units. They are leased to persons with disabilities or homeless individuals with children. DAHC has set aside some funds for maintenance but, Ms. Provo stated that as the units age, the maintenance funding is not enough. She noted that these are hard to serve populations and added that they also tend to be hard on the rental units. Ms. Provo stated that she believes that this would be a good use of the funds. She feels that these rental units are an asset to the community and will look better and serve the very low-income populations. A list of the proposed repairs was included in the application. DAHC is requesting $92,000 but could cut back on some appliances if necessary. DAHC also request $20,000 in operating funds. Ms. Provo stated that they have had a tough year and need the funding to keep the organization going. Ms. Winn asked if they have had any properties where the owners walked off and left the property. Ms. Provo indicated that they had not. Ms. Winn asked if they've had properties available for sale in neighborhoods where there are several others for sale. Ms. Provo indicated that they have been in this situation. She added that the appraised value of homes has dropped. She stated that DAHC sold 11 houses last year and made less than $2,000 Gerard Hudspeth asked if there was a worse case number on the $92,000. In other words how much did they have to have to do the repairs that are most needed? Ms. Ross noted that the CHDO setaside 15% figure was approx $78,000. So, they would have to be allocated at least that amount to comply with Federal guidelines. Ray Jordan asked about occupancy rates in the units. Ms. Provo said that they are usually at 100% with a two-year waiting list. She added that DAHC works with HOPE Inc. to house their transitional housing clients. Mr. Jordan asked whether lawn care and other services were included in the rent. Ms. Provo stated that they were. She was not sure how much DAHC would save if they took off some of those items. She explained that a sprinkler system might seem like a luxury but they need to make sure that foundations are watered, etc. Page 38 Cathy Tedrick asked about bidding out the lawn service and noted that perhaps some funds could be saved. Mr. Hudspeth asked about the amounts stated for the specified work and where they came from. Ms. Provo said the numbers were developed by their rehab specialist. CDAC members had some additional questions. Ms. Tedrick asked when the units were built. Ms. Provo indicated they were built in the late 60's and early 70's. Ms.Winn asked about the utility allowance in the budget and Ms. Provo explained that DAHC pays water and solid waste. An inquiry was made as to whether energy efficient appliances would be purchased to replace those in the units. Ms. Provo indicated that they would be. Ron Aldridge asked Ms. Provo to discuss the proposed reallocation of existing funds? Ms. Provo stated that DAHC would like to reallocate $25,000 from 2006 and all of 2007 to make rental unit repairs. She noted that DAHC would keep the 2008 award available for the homebuyer program. She added that she realized using these funds on rental units would place additional demands on City staff to monitor units. It was also noted that the units already have public money, therefore, all tenants must already be income qualified. Other questions were asked by members. Ms. Tedrick asked if any of the remaining owner units could be converted to rental. Ms. Provo indicated that they could not due to the type of funding used on the projects. Lisa Melby asked how DAHC finds potential tenants and homebuyers. Ms. Provo stated that they list units in the multiple listing service, use lawn signs, speak to groups, notices to lenders, etc. Mr. Hudspeth asked what the schedule was for expenditure of the funds. Ms. Provo stated that the transfer funds could be spent as soon as the City releases them. New funding would be available in August or September. Mr. Jordan asked if the units would be renovated while they're occupied. Ms. Provo indicated that this was correct. Denton City County Day School: Eddie Garcia, executive director, introduced himself. Mr. Garcia announced that DCCDS is having an open house sometime in April. He invited the members to take a tour of the school. Mr. Garcia noted that DCCDS has been around for 52 or 53 years. He commented that just because the day school serves low-income, their belief is that they don't have to "look low-income." Mr. Garcia described the curriculum offered at the school. He stated that their fees range from $55 to $85 per week. DCCDS is under same requirements as for-profit day care agencies. He added that the weekly fee paid by the families doesn't provide enough funding for repairs and liability insurance. He commented that most parents fall into the $55 range. LaNelle Winn asked about the second item - painting exterior with "elastomeric." Mr. Garcia explains the process and how using the substance to paint the exterior would help preserve the building. He added that there was a 15-year warranty on the product. Ms. Winn asked about the exterior storage unit. Mr. Garcia stated that they have a tremendous amount of paperwork and are running out of storage space for paperwork. Barbara Ross asked if the storage unit would be "built in" adding that since equipment had to be tracked for its useful life, staff does not recommend using funds to purchase portable equipment. Mr. Garcia stated it would be attached to the wall and on a concrete foundation. Mr. Hudspeth asked about the number of children served and what are their hours. Mr. Hudspeth also asked about scanning documents rather than keeping hard copies. Mr. Garcia stated that the State's food program requires original documents with original signatures. Mr. Page 39 Hudspeth asked if the State gives notice before they monitor. Mr. Garcia noted that it was usually about two days notice but that they would still need documents with original signatures. Members discussed electronic vs. hard document copies. Mr. Garcia stated that their service numbers change almost every day. However, they never go below 77. The maximum is 81. They consistently have a waiting list. Their hours are 6:30 am to 5:30 pm. Herbert Holl, asked if the amount requested included equipping the storage area. Mr. Garcia indicated that it would. Ms. Tedrick asked if they were seeing more middle-income families come in as a result of the worsening economic situation. Mr. Garcia stated that they were seeing incomes go down. Ms. Tedrick asked if they had considered adding another classroom. Mr. Garcia said that they had but that the costs were prohibitive. The committee members and Mr. Garcia continued to discuss the food program, staff needs, etc. Mr. Garcia stated that it actually takes $123 per child per week to run facility. Mr. Jordan asked about the size of storage cabinet. Mr. Garcia responded that it would be 12 X 12, not climate controlled. There was a discussion of bidding procedures. Mr. Garcia stated that he had to comply with the CDBG requirements for bidding. Mr. Jordan asked about funding from Denton Benefit League. Mr. Garcia stated that they received $16,000 for new bookshelves. Ms. Winn complements them on their four star service rating from the State. Ms. Watts asked about the playground and when it's going to start. Mr. Garcia stated that he had turned in the documents to Ms. Ross. She stated she would prepare the bid packet and send it back to him. Minor Repair Program: Gordon Meredith, residential construction specialist, introduced himself. He stated that the City has had the Minor Repair Program in place since 1996. More than 300 households have been assisted under the program. The program is designed to respond to urgent repairs that come up in homes owned by low-income families. Mr. Meredith mentioned water heaters, HVACs systems, plumbing leaks, deferred maintenance and mobile home floors as some of the more frequent repairs requested. He stated that the program is designed to respond quickly. They can sometimes assist in a week to ten days, or at the most, within a month. Funds available are limited to $5,000 per unit incident per calendar year. Mr. Meredith noted that staff tried to ensure that homeowners did not see the program as their home maintenance program but also attempted to explain that the homeowner would need to maintain their home. He added that funds are held in reserve for A/C work during the summer. CD staff is requesting $98,000. Though this is a decrease from last year, Mr. Meredith stated that this year, none of his salary would have to come from program. The only other administrative line item is for lead testing. Mr. Meredith stated that the program is available to those who've lived in home for at least one year. Dorothy Watts asked how staff advertised the program. Mr. Meredith stated that they used the CD Newsletter, it is sent out to some electronically and to others by mail. It's at the libraries and on the city's website. Staff has also gone door to door in low-income neighborhoods with flyers. Ms. Ross noted that the newsletter goes out to area churches, social service organizations and residents who have participated in the programs. Staff asks churches and agencies to disseminate the information. Mr. Meredith gave the census tracts locations where most repairs are made. These are traditionally low/mod neighborhoods. Mr. Hudspeth asked what the census tract number correlate to in terms of areas. Mr. Meredith stated that members could go to www.census.gov and look up where tracts are. It was noted that any home in the city limits was eligible. Page 40 Ron Aldridge asked about the 65% income limit. Mr. Meredith pointed out where the schedule was in the application packet. Mr. Holl asked if the assistance was limited to three events per homeowner or per home. Mr. Meredith stated that there has not been a situation where three repairs were completed on a unit and then it was sold and the new owner asked for a repair. No guideline has been set for that possibility. McKamy-Evers Cooper Creek Bridge: Bob Tickner, Denton Parks and Recreation introduced himself and Josh Mullen from the Code Enforcement Department. Mr. Tickner described the Evers Park Elementary School area and the lack of access from the McKamy neighborhood. He reviewed the park dedication ordinance and stated that the funding had been taken from the pedestrian way monies. Mr. Tickner stated that there are 60+ homes in the area. He noted that the neighborhood residents are asking when City is going to build a bridge to provide a safe route to the school. This is the neighborhood's #1 request. Mr. Tickner further describes the project. He notes that the bridge would allow children to walk to school and to the park. It is a safety issue. Mr. Tickner also stated that it would help home sales in the neighborhood. Ms. Tedrick asked if it would be similar to bridge to Strickland Middle School. Mr. Tickner responded by showing a picture of the Avondale bridge. Mr. Holl asked if an area on the aerial photo included vacant undeveloped lots. Mr. Tickner stated that they were undeveloped lots and that the City had access to easements on those lots. He also mentioned park dedication fees. Ms. Ross asked if the park dedication fees could be used for the project. Mr. Tickner indicated that they probably could and/or could also be used for enhancements to the park. Mr. Hudspeth asked if there had ever been accidents on other bridges. Mr. Tickner stated that at the bridge at Fred Moore Park that some fencing was put up to make sure that didn't happen. There have been no problems at other bridges. He noted that placement of bridge would meet all of floodplain requirements. Ms. Winn asked about the construction material. Mr. Tickner stated that it would be constructed from a steel that rusts but there is a coating that stops it from rusting - maintenance free. Ms. Tedrick mentioned that boards were coming off the bridge to Strickland. Mr. Tickner indicated that the Strickland bridge was built by the developer. The type of wood used by PARD will not deteriorate. Members discussed the income of the households in the neighborhood. Mr. Tickner and Ms. Ross stated that the census tract, block group was 57.7 % low to moderate-income. But, there were no figures for the specific neighborhood. Mr. Jordan asked how many households with children were in the area. Mr. Tickner stated that more than 3/4's of the households have children. Ms. Tedrick stated that the units were a little larger than starter home. Mr. Jordan asked if there might be another route that would be shorter and less expensive to develop. Members asked for a cost comparison for sidewalks on Locust vs. the bridge. Mr. Hudspeth added that those from other neighborhoods would have to walk through the McKamy neighborhood to get to the bridge. Ms. Tedrick pointed out that other homes will be built in the area and they will eventually feed into the same pedestrian route. Page 41 There was a discussion of neighborhoods and the additional units that potentially could be built to the north. Mr. Aldridge commented that this was not normally the population that the programs focus on. Mr. Hudspeth agreed. Ms. Ross asked the committee what additional information they needed for the next meeting. Mr. Holl wanted to know if the bridge is all or nothing. Members briefly discussed the DCCDS storage unit. Mr. Jordan provided some information regarding how Denton Christian Preschool stores their paperwork. Members talked about the safety of outside storage. Ms. Ross pointed out that Mr. Garcia gave prices for each individual item. Mr. Jordan pointed out that income must be updated monthly for the food program. Cathy Tedrick made a motion to adjourn. Mr. Hudspeth seconded the motion. The meeting was adj ourned. Page 42 OFFICIAL MINUTES COMMUNITY DEVELOPMENT ADVISORY COMMITTEE February 16, 2009 City Hall East Conference Room Ron Aldridge, chairperson, called the meeting to order. Mr. Aldridge asked if there were any changes to the minutes. Lisa Melby moved that the minutes be approved as written. Cathy Tedrick seconded the motion. Dorothy Watts asked about the comment regarding the rusting material on the bridge. Ms. Ross explained that Mr. Tickner said it would be coated with a substance that would not allow it to rust. Members unanimously approved the minutes. Mr. Aldridge explained the process for presentation of the AIDS Services grant request. He stated that he would recuse himself from that presentation. The AIDS Services staff will present. Ms. Ross explained the advisory nature of the CDAC and noted that this is the reason that the City's Legal staff stated that this was not a conflict of interest. Ray Jordan asked staff to inquire as to whether Denton City County Day School had requested funding for any of the items in their application from any other source. If this was the case, he asked if any of the requests been funded. Ms. Ross introduced Rebecca Guthrie of the Engineering Department. Ms. Guthrie used a slide presentation that described each of the proposed projects. Ms. Guthrie noted that the projects were provided in priority order. The following are the proposed projects with the number of households benefitting and the requested amount. - Chambers St Sewer Line is the most important - 32 hh would benefit, $160,355 - Simmons and Park St Sewer Line - 19 hh would benefit, church & office complex in area $174,236 - Boardwalk Sewer Line - 23 hh would benefit, $137,860 - Anderson St Sidewalks - 15 hh would benefit, $50,968 - Egan St Sidewalks - 16 hh would benefit, $24,228 on north side of street, citizen request - Egan St Sidewalk B - 16 hh would benefit, $79,941 - Crescent St Sidewalks - 26 hh would benefit, $71,957 - Crescent St Sidewalks B - 19 hh would benefit, $67,693 - Scripture St Sidewalks - 26 hh would benefit, $179,1112 churches, 2 businesses, no sidewalks on the south side Ms. Guthrie explained that if power poles have to be moved, the project costs would increase. She explained how quickly the sidewalk projects funded last year would be completed. Gerard Hudspeth asked if there would be an adverse effect if the City upgraded the sewer line on one street but not the others. Ms. Guthrie indicated that it would not cause an adverse effect. She added that it would be more cost effective to complete all of them at one time. However, the difference between a six inch pipe and an eight inch pipe is not that significant. Ray Jordan commented that he sometimes drives the bus for Denton Christian Preschool. He asked how they handle emergency services and access for children with disabilities, etc, in these instances. Ms. Guthrie stated that the contractor must provide access. She added that the contractor can "plate" the ground if necessary so that vehicles can get through. Dorothy Watts asked how they Page 43 notify residents. Ms. Guthrie stated that they require the contractor to provide notice to the residents. The contractor usually carries this out using door hangers. On sewer line work the owners will be notified by contractor. Herbert Holl asked if all seven projects were in priority order or were the sewer projects separate from the sidewalks projects. Ms. Guthrie stated that all projects were listed in priority order. She said the Engineering Department felt that the sewer projects were more of a priority than the sidewalks. LaNelle Winn asked if the sewer projects would have a cost to the homeowner. Ms. Guthrie stated that they would not. Any cleanouts that need to be installed would be at no cost to the owner. Ms. Winn asked if the entire area is going to be blocked off with limited access. Ms. Guthrie responded that they would include a schedule in the bid and that the contractor would work on one street and then move to the next street. Ms. Winn noted that the planning phase runs from October through November and asked if this was sufficient time for staff to complete the plans. Ms. Guthrie indicated that it was sufficient time to complete the plans. Mr. Aldridge re-stated that it would be more cost effective to do them all at once. Mr. Jordan asked if Engineering worked with the Traffic Department and would there be any temporary traffic control on these projects. Ms. Guthrie stated that they will have a traffic control plan on the sewer projects. Mr. Jordan asked why the sidewalks would be installed on the north side rather than south side of Scripture. Ms. Guthrie stated that it is due to the type of structures that are in the way and the grade. She noted that the proposed sidewalks would take people directly to the park. Ms. Tedrick asked what had been the citizen complaints concerning the sewer. Ms. Guthrie stated that it was mostly "chokes" that cause the lines to have to be flushed. She said cracks, roots, etc. block the lines. Ms. Winn asked if the sidewalks would be on the edge of street or set back. Ms. Guthrie stated they are typically not set directly on curb but are set back. Doreen Rue and Brian Schmedingoff gave the presentation for AIDS Services of North Texas. Ms. Rue reviewed the services provided by AIDS Services. It was noted that in the early years they were mainly helping people die with dignity. Also, they garnered support for the agency and the work they did. Ms. Rue noted that in 1996 new medications were available to help people and treatment became the focus of the agency. AIDS Services opened a clinic in 1998 and continued to provide support services. The organization then began working on its internal structure, developing a strong staff. In 2002, they expanded services to homeless persons. Ms. Rue stated that they are no longer able to house all the services they provide. Currently, 20% of the people that come into the clinic are found to be HIV positive. It was noted that AIDS Services is also looking at other indigent populations that need services. The Guardianship Program was described to the committee. Mr. Schmedinghoff stated that the agency has two options. They could lease a larger space or build and save $76,000 per year. Ms. Melby asked what other funding sources were available to construct the facility. Mr. Schmedinghoff responded that they have an in-kind donation from Virgil Strange for work on the project and $92,000 in pledges thus far. Other funding will be foundation grants. He added that AIDS Services will expect a certain percentage of funding to be committed before they would begin the project. Mr. Holl asked if they had included the "in- kind" amount in the budget and if not, would budget amount will be reduced. Mr. Schmedinghoff stated that the "in-kind" was already included in the budget amount. Ms. Melby asked about the project time frame. Mr. Schmedingoff indicated that the City of Denton funding would be spent within 16 months of the award. Ms. Tedrick asked if they had a location. Mr. Schmedinghoff stated that they had no exact location but that it would be built in the City of Denton. Ms. Rue stated that if possible, it would Page 44 be on a bus line for easy access. Mr. Hudspeth asked if the organization had looked at renovation of an existing building rather than new construction. Ms. Rue stated that they have not found an existing building that could be used for this purpose. Barbara Ross asked if Mr. Strange understood that the construction would fall under Federal labor standards regulations. She noted that this often significantly increases construction costs. Mr. Schmedingoff indicated that he did. The CDAC members and presenters discussed how soon the funding would be expended on the project. Ms. Ross commented that CDBG funds could not be spent until all funding for the project had been committed and was available to complete the project. Ms. Tedrick asked if they had sites in other areas. Mr. Schmedingoff stated that they also have an office in Plano but that Denton was their main office. Mr. Jordan asked what would be the downside if they didn't receive this money. Mr. Schmedingoff indicated that it would probably slow the project down to some extent. Approval of the funding would help push the project forward. He added that $100,000 from the City would bring the total pledged up to $450,000 including Mr. Strange's in-kind pledge. Mr. Schmedinghoff stated that foundations like to see support such as this before they commit funding to a project. Mr. Holl asked if AIDS Services had done a feasibility study regarding potential donors. Mr. Schmedinghoff indicated that they didn't do a full study but had help from a consultant. Ms. Tedrick asked how many board members have pledged to participate in the funding. Mr. Schmedinghoff stated that there would be 100% participation and that 7-8% of project costs would come from the board. Mr. Holl asked how the facility would it reduce operation costs. Mr. Schmedinghoff stated that it would eliminate lease payments. Mr. Jordan asked about the size of the new facility. Mr. Schmedinghoff stated that they currently have 5500 square feet and that the new building would have approximately 8000 square feet. Members continued discussing the foundations from which AIDS Services may request funds and the marketing of the project. Alma Espino introduced herself and explained that she is now the City's human services coordinator but, had already planned to do the presentation for the Home Improvement Program. She stated that the request is for $471,401 and that this would provide funding for eight projects. Some projects would be rehabilitations and some would be reconstructions. Ms. Espino reviewed the application requirements. She noted that debt to income ratios must be workable for the homeowner. The program does not want to set people up for failure. Ms. Espino explained that the amount households pay back is based on a sliding scale. Under the revised guidelines, elderly households now receive a 5% reduction on their payback requirement. Ms. Espino added that the program will make units accessible if needed by the family. The program also ensures that the reconstructs and some rehabilitations will be energy star certified. Staff provides classes on home maintenance and budgeting to the participating households. Ms. Espino stated that staff is looking at expanding the current service area but it will still encompass mainly the older areas of the City. Ms. Watts asked if the program builds new units. Ms. Espino stated that reconstructs are new units but that there must have been an occupied unit on the property. Ms. Melby asked about displaced families and how they are housed during the construction. Ms. Espino stated that most move in with family but some rent during the construction. She added that it usually takes up to five months to complete a reconstruction. Mr. Jordan pointed out that the target area map excluded the UNT area but not the TWU area. Ms. Espino stated that they would take a look at that. Ms. Ross noted that it is probably because of the size of the UNT campus that some of the campus area was not included. Page 45 Mr. Holl asked if staff could you do more units if more money was available. Ms. Espino stated that the projects take a long time and there is not really sufficient staff to complete additional projects. Ms. Espino added that there is a waiting list and she recently sent out letters to everyone on the list. Not everyone will respond. Mr. Jordan asked about how program income was handled. Ms. Espino and Ms. Ross explained that all program income from all CDBG sources is estimated and allocated on an annual basis. The program income for the Home Improvement Program does not go directly back to the HIP program but can be allocated to any CDBG project. Mr. Jordan asked if the City was loaning the funds. Ms. Espino stated that the City was providing the loan. Staff looks at the unit and does a cost analysis to determine the cost per square foot. If the cost per square foot is over the limit set by staff then a reconstruct is carried out. Ms. Tedrick asked about the fact that only three projects were completed last year. Ms. Espino explained the lengthy application process, land/ownership and historic issues that cause delays. The timing of the program year was also mentioned. Only three projects may have been completed within the specific program year timeframe but, three more may have been in progress at the end of the year. Ms. Espino stated that staff has changed the guidelines to make it easier to apply. Staff is also doing some additional marketing of the program. There is currently a "hold" list of households with title issues. Several individuals own the property and the project can start until the ownership is settled. Ms. Tedrick asked if most of $400,000 will be spent this year. Ms. Espino stated that staff was expecting to have approximately $152,000 left but it would be spent during the next budget period. Mr. Hudspeth asked if the program could start a "sweat equity" similar to what Habitat for Humanity does. Mr. Ross indicated that they must use contractors and that allowing homeowners to work on a project would probably create additional liability for the City. Ms. Tedrick pointed out that owners would have a financial investment in these projects rather than sweat equity. Ms. Ross commented that the City has never foreclosed on a homeowner rehab/reconstruct. Ms. Watts asked about the normal loan term on a project. Ms. Espino stated that it was 10 - 20 years depending on the project cost and that the average payment was $100 per month on a reconstruct for a low-income household. Approximately $240 per month is forgiven. Ms. Watts asked where the information on income guidelines and assistance levels could be found. Ms. Espino provided the pages in the program guidelines that have this information. Ms. Winn asked about the interest rate. Ms. Espino stated that it was currently 2% on the payable portion. Ms. Ross asked members to look at the guidelines to see if they have any questions or concerns. Ms. Ross reviewed the history of the City's Tenant-Based Rental Assistance (TBRA) Program. She stated that at the height of the program, 13 elderly and/or disabled persons were being assisted. Ms. Ross added that since the Denton Housing Authority has a Section 8 rental assistance program and the staff needed to manage a rental assistance program was not able to be funded through the HOME grant that staff made a decision to recommend that the program be discontinued. No one lost their assistance. As individuals moved off the program, the assistance was ended and no additional tenants were approved for the program. Currently, there are only two individuals receiving rental assistance the $8,000 requested will be enough to pay both rents for the 2009-10 program year. Ms. Ross noted that both tenants are on the Section 8 waiting list and should receive assistance before 2011. Page 46 Mr. Hudspeth asked about the difference between CDBG and HOME funds. Ms. Ross stated that HOME funds can only be used for housing activities. CDBG can be used for housing, social services, economic development, infrastructure projects etc. The members continued to discuss issues from the various presentations. Mr. Aldridge asked if DAHC's unspent funding could be reallocated to other agencies. Ms. Ross stated that the City is currently under contract with DAHC for use of all the funding allocated to them. However, she indicated that the provisions of the contract probably allow the City to abrogate the contract if necessary. Ms. Ross asked members to complete their ranking sheet and send it back as soon as possible. The meeting was adjourned. Page 47 OFFICIAL MINUTES COMMUNITY DEVELOPMENT ADVISORY COMMITTEE February 23, 2009 Members Present: Ron Aldridge, Herbert Holl, Gerard Hudspeth, Ray Jordan, Lisa Melby, Dorothy Watts, La Nelle Winn Staff Present: Angel Delgado, Barbara Ross Ron Aldridge called the meeting to order. He asked members to review the minutes from February 16, 2009. A motion was made to approve the minutes as presented. La Nelle Winn asked for clarification on page four of the minutes in regards to the Home Improvement Program. Barbara Ross responded stating that loans being paid back by the citizens to the Home Improvement Program will not be given directly back to the program but is available to any Community Development program. Program income is estimated and is allocated through the CDAC process. After clarification, Lisa Melby seconded the motion. The motion passed unanimously. Ms. Ross pointed out the rankings of the applications on the board. Ray Jordan asked a question concerning Denton City County Day School (DCCDS). He wanted clarification on whether DCCDS had requested funding for the activities elsewhere. Ms. Ross stated that she had spoken with Eddie Garcia and he stated DCCDS had not requested any other funding for these improvements. Ms. Ross stated that the applications listed on the board were in order by the scoring of the committee. She stated the total funding requested was $1,942,505 and the total funding available was $1,288,314, leaving a difference of $654,191. Mr. Aldridge asked the committee about partially funding Denton City County Day School (DCCDS). Ray Jordan stated that DCCDS was funded two years ago for paint and they are asking again to be funded again for painting. Mr. Jordan also stated that DCCDS received assistance for shelving and is now asking for similar assistance this year. He wanted to state his concern and see if anyone had similar comments or concerns. Committee members responded stating that they believed the shelving was for a different area and that instead of a painting issue this time, it was more for brick repair. Herbert Holl reminded everyone that there were a few applications that had to be either completely funded or not funded at all. Mr. Aldridge gave instructions on how the committee has previously allocated funding. He stated that normally, the committee starts from the top of the list, with the highest ranking and works through each, deciding whether to fully or partially fund each one. Once the money is gone, the committee stops. Mr. Aldridge started with the application for the Tenant-Based Rental Assistance Program (TBRA). Mr. Aldridge asked the committee if everyone was in agreement to give the TBRA $8,000. Everyone agreed. The application for the Chambers Street Sewer Line Replacement was next. Mr. Jordan noticed that the Chambers Sewer project was the last of the sewage project where funds were requested. He asked the committee if there was a certain order that the Engineering projects should be Page 48 considered. Mr. Jordan stated that he felt repairing the sewers was more important than repairing the sidewalks. Ms. Winn stated that she believed it was critically necessary to repair the sewers as well. Mr. Hudspeth asked the committee if they could come back to the sewage projects and move on to see how funding would play out with the other projects. Mr. Aldridge went on to state that the Denton Affordable Housing Corporation (DAHC) funds are mandatory and their minimum required CHDO setaside is $78,684. Mr. Aldridge asked if the committee wanted to allocate more than what DAHC was asking for. Mr. Aldridge suggested giving the minimum and allocating $20,000 of it to operations. Mr. Hudspeth agreed along with the committee. Lisa Melby and Mr. Holl asked why the committee was not giving the whole amount to DAHC. Ms. Ross then explained how the HOME funds were allocated. Mr. Aldridge asked that if the Home Improvement Program (HIP) was fully-funded, if there would be any funds from HOME left. Ms. Ross informed the committee there would be $76,000 in HOME left. Due to excess funds, a decision to fully fund DAHC was agreed upon. The Simmons Park sewer and the Boardwalk sewer were then discussed. Ms. Winn stated that all three projects should be funded due to health issues caused by these sewers. Mr. Holl agreed. Mr. Holl suggested taking out the cost of the outside storage shed that Denton City County Day School (DCCDS) was asking for in their funding application. He stated that he did not think this piece of the project should be funded due to more urgent projects needing attention. Mr. Hudspeth wanted to discuss possibly not funding one of the sewers and instead funding a sidewalk. Mr. Holl questioned how important the sewers actually were. He wanted to know if fixing these sewers would solve a major problem or if it would just be alleviating a small problem at this point in time. Ms. Ross stated that the houses within the area were all built at the same time and would be beneficial to all the homeowners in the area. Mr. Jordan asked if commercial development used the same sewer lines as the neighborhood. Ms. Ross stated there was a mobile home park that might benefit from the improvements but she was unsure of the benefit to commercial development in the area. Ms. Ross also stated that she did not think the sewers would support new development, but the existing homeowners. The committee continued to discuss the sidewalk projects. Ms. Watts asked if the Crescent Street sewer project was funded last year. The committee said that it was. Mr. Aldridge agreed the sewer projects were more critically in need than the sidewalk projects. Ms. Watts wondered which sidewalk project would benefit students more. She asked the committee to consider that most of the high school students drive to school but that the middle school students like those at Calhoun would not. Ms. Ross pointed out that many of the Denton High School students do not drive their own vehicles. Mr. Aldridge pointed out that sufficient funding is still available to support the entire Anderson Street Sidewalks project. Mr. Aldridge also pointed out that the Engineering Department put the projects in order of priority and Anderson Street was first on the list. Mr. Holl commented that there was sufficient funding remaining to provide full funding for this project. Mr. Jordan stated that Anderson Street was not a through street like Egan Street or Crescent Street. He was concerned about not reaching beyond that neighborhood. Ms. Winn asked if Anderson Street was next to an elementary school. Ms. Watts stated that it was next to a middle school. Mr. Holl asked if there were any sidewalks on Anderson Street at all. Mr. Hudspeth said yes but that they were in disrepair. Mr. Holl asked if Anderson Street was a part of a system of sidewalks and if so, is it strengthening the system. Page 49 Mr. Aldridge asked the committee how the money could be maneuvered in order to support more projects. Ms. Winn voiced concern of not taking money from the Minor Repair Program. Mr. Holl asked if any money was expected to come back through from the stimulus package. Ms. Ross stated yes but at this time, they did not know how much or when it would be available. Mr. Holl suggested funding the Anderson Street sidewalks, or holding the money back for a certain amount of time. Mr. Aldridge gave three ideas: pay for Anderson Street, hold the full $69,000 back until the results of the stimulus package were revealed, or take $70,000 from the Home Improvement Program to put it towards Crescent Street. Ms. Ross stated that it might be possible to fund something like Crescent Street with the stimulus funding. Mr. Holl suggested taking $70,000 out of the Home Improvement Program. Ms. Winn voiced her concern about this idea. Mr. Aldridge suggested funding Anderson Street. Mr. Holl agreed that getting the money into service quickly was best. Mr. Aldridge stated that there was not enough money to fully fund one of the new sidewalk projects. Mr. Hudspeth reminded everyone of the order the Engineering Department had put these projects in and that Anderson Street was first on the list. Ms. Ross also reminded them that the committee did allocate money for four sidewalk projects last year. Ms. Winn stated that it was better to complete a project than to start one and not be able to finish it. Mr. Aldridge asked if everyone was in agreement of fully funding Anderson Street. Ms. Winn asked if the extra funds should be placed in the Home Improvement Program. Mr. Aldridge stated his concerns with it going towards the storage shed at Denton City County Day School. Ms. Watts asked if the committee should be giving more than HIP was requesting to their program or if it should be spread around. Mr. Aldridge clarified that the only item at City County that was not being funded with the CDBG money was the storage shed. All were in agreement that the Home Improvement Program should be given additional funding over their requested amount. Ms. Ross read out the recommendations for CDBG and HOME funds. They were as follows: Minor Repair Program: $98,000 CDBG Chambers St. Sewer Line Replacement: $160,355 CDBG Simmons and Parks St. Sewer Line Replacement: $174,236 CDBG DAHC Rental Unit Improvements: $112,025 HOME Denton City County Day School Facility Improvements: $49,530 CDBG Boardwalk St. Sewer Line Replacement: $137,860 CDBG Anderson St. Sidewalks: $50,968 CDBG Home Improvement Program: $102,961 CDBG; $394,379 HOME Tenant-Based Rental Assistance Program: $8,000 CDBG Mr. Aldridge asked if there would be a motion to accept these recommendations. Mr. Holl motioned. Mr. Jordan seconded the motion. Ms. Ross stated that staff would put together the Action Plan and that it would be available for public comment during the month of April. The meeting was adjourned. Page 50 UNOFFICIAL MINUTES COMMUNITY DEVELOPMENT ADVISORY COMMITTEE March 30, 2009 Members Present: Ron Aldridge, Sandra Benavides, Gerard Hudspeth, Ray Jordan, Lisa Melby, Cathy Tedrick, Dorothy Watts, La Nelle Winn Staff Present: Barbara Ross Lisa Melby, vice-chair called the meeting to order. She asked if there were any revisions to the minutes or a motion to approve the minutes as presented. Ray Jordan moved that the minutes be approved as presented. LaNelle Winn seconded the motion. The minutes were approved. Ms. Ross explained that the City has been awarded an additional $232,917 in CDBG stimulus funding. She noted that staff is still waiting on specific guidelines regarding any additional requirements or waivers of existing requirements. Ms. Ross added that the fund must be used to benefit low and moderate-income neighborhoods and households just as regular CDBG funds do. She added that there would also probably be some funding for human services. Human services and administration funding caps may not be as high as the 15% and 20% that they are under the regular CDBG program. Staff has set up a proposed budget that includes $22,000 for both human services and administration. This amount is just below 10% of the allocation. The proposed budget will provide $188,917 for capital improvement and/or housing projects. Ms. Ross commented that staff is actually a bit ahead of all the CDBG stimulus grant information but they are trying to include the additional funding in the Action Plan that will go to Council for consideration in May. This would save time and money and allow the funding to be used more quickly. She noted that if the budget does not meet the stimulus program requirements, staff will restructure the budget, come back to the committees, and do a separate amendment to the Action Plan. It was noted that staff requested submission of projects that encompassed rehabilitation of existing facilities or housing. Ms. Ross explained that this is due to the fact that the stimulus funds must be obligated within 120 days and that new construction projects require a full environmental review. An environmental assessment takes approximately six weeks to complete. Rebuilding existing sidewalks, streets, sewers or housing would not require such an extensive review. She added that since the stimulus requires that the funds be "obligated" quickly and that the sewer and parks improvement project will be carried out by City crews, that the projects would need to be completed within that time period. If additional guidance from HUD defines obligation differently from current regulations then, the City may have a longer time period in which to complete the projects. Ms. Ross stated that the Ruth Street sewer would be considered "new construction" under HUD guidelines because the line size is being increased more than 20%. However, it was noted that Ms. Guthrie had indicated that the design on Ruth Street could be done prior to the completion of the environmental review and that those costs would be covered from non-Federal funds. Ms. Ross introduced Becky Guthrie from Engineering to answer any questions about the sewer projects submitted by the Engineering Department. Gerard Hudspeth asked about the plan to accelerate the normal process. Ms. Guthrie stated that design costs would be paid by the Wastewater Department. The plans would be ready to go as soon as funds are released. She added that either one of the sewer projects could be completed in a six week time frame. Ms. Ross noted that the 120-day "clock" would begin when the City executes an agreement with Page 51 HUD for the funding. Ms. Guthrie stated that the Ruth Street sewer line is going from a six inch to an eight inch because a six inch is now considered substandard. Ms. Melby asked if one project was more critical than the other. Ms. Guthrie responded that they have had several service calls on Ruth Street and it is the more critical of the two. She noted that both projects are needed. Both projects will be carried out by in-house crews and anew method called "pipe bursting" will be used to replace the lines. Mr. Jordan asked what the downside would be if the funds were not spent in 120 days. Ms. Ross explained that currently "obligated" means that a contract must be signed but, that she was unsure what the requirement may be for stimulus funds. Since there would be no contract, it might be required that the funds be expended and drawn down from the Treasury. It was noted that Ruth Street was not included in the projects recently submitted under the normal CDBG allocation process. Ms. Guthrie explained that since the initial applications were submitted months earlier, priorities have changed. Ms. Guthrie also stated that these projects would be completed before those that might be funded through the regular funding cycle. She also stated that Ruth Street could be split into two separate projects if needed and that she could run the numbers on that for the committee if requested. Ms. Winn asked how many households would be affected if the project were split. Ms. Guthrie stated that it appears more households would be affected on the eastern portion of the project. She stated that she would have to do house count to be sure. Ms. Ross stated that Nancy Baker was available to answer any questions about the request for funding for the Home Improvement Program. She stated that these funds are being requested because that is an activity that has already been cleared through an environmental review and expenditure of funds could begin immediately. Mr. Hudspeth asked if there were any limitations on what could be allocated to the home improvement program. Ms. Ross stated that they could take any amount and use it in the program. Mr. Hudspeth asked about the level of work that is completed on housing units. Ms. Baker stated that substantial rehabilitations and reconstructions of units are carried out. Jim Mays from the Parks and Recreation Department (PARD) was introduced. He stated that the proposed pavilion in Fred Moore Park would be 13% larger than the current structure. Mr. Hudspeth asked if the concrete would also be expanded. Mr. Mays stated that the slab would be rebuilt and would also be 13% larger. He added that removal and disposal costs would be covered by PARD. Ms. Winn asked for a clarification on whether the cost of the new slab was included in the project. Mr. Mays stated that it is included in the requested amount. Mr. Hudspeth asked if PARD would also be doing the electrical work. Mr. Mays indicated that they would also do that work. Ms. Winn asked about high winds and their effect on the pavilion. Mr. Mays stated that the pavilion equipment has been engineered for this area. Members discussed the electrical upgrades and the benefits of upgrading the service. Mr. Mays stated that the upgrades would allow for better service to the public. Cathy Tedrick asked how long the current system had been in place. Mr. Mays stated that it had been several years ago and that some of the equipment is no longer code compliant. He noted that, in order to host larger productions, the C.H. Collins stage would need higher amperage. Members discussed upgrading the system further than was requested to ensure that all bands, etc. could use the facility without renting additional equipment. It was noted that $200 additional dollars would allow a 300 amperage system to be installed. Ms. Ross suggested that the administration funding set aside be reduced to increase funding for the electric upgrade. Members discussed the possibility of adding electrical outlets in various places throughout the park. Mr. Jordan noted that you might not Page 52 want to have too many posts with outlets in the park. He added that the primary use of the park is recreation and this might change the nature of the park. Members agreed not to add outlets to the proposed project. Members discussed which projects should be recommended for CDBG stimulus funding. Ms. Melby stated that the Redwood project plus the pavilion would total $187,420. Ms. Ross suggested that the additional funding needed for the Fred Moore electrical be taken from the administration set aside. Ms. Watts asked about possibly splitting up the Ruth Street project. Mr. Jordan suggested that the stimulus funds should serve a broader population base rather than just a single neighborhood. Ms. Winn stated her agreement with that concept. Ms. Tedrick asked whether the stimulus funding would require grantees to bid out projects to provide external business opportunities. Ms. Ross responded that normally they are bid out but they don't have to be bid out. Members agreed to recommend funding for the improvements to Fred Moore Park and the Redwood Sewer project. Ms. Winn made a motion to recommend the Fred Moore Park pavilion and electric improvements and the Redwood Sewer projects. Ms. Tedrick seconded the motion. The motion was approved unanimously. The funding recommendations are listed below: Fred Moore Pavilion $33,420 Fred Moore Electrical $3,332 Ruth Sewer $0 Redwood Sewer $154,000 Home Improvement Program $0 Members asked when the recommendations would be presented to City Council. Ms. Ross stated it would probably be in early May and she would get the information out to the committee. The meeting was adjourned. Page 53 OFFICIAL MINUTES HUMAN SERVICE ADVISORY COMMITTEE MEETING December 15, 2008 Members Present: Lorn Bortnem, Dalton Gregory, Jan Hillman, Mari Metzgar, Mary Ann McDuff, Steve Pogue, Dr. Richard Stream, and Jodi Vicars-Nance Staff Present: Rachel Ingram, Barbara Ross, Angel Delgado, Alma Espino Staff Rachel Ingram recognized new HSAC member Mary Ann McDuff and asked the members to introduce themselves and state how long they had participated on the committee. Chair Jan Hillman called the meeting to order. She asked for volunteers or nominees for chair and vice chair. Ms. Hillman nominated Jodi Vicars-Nance for chair. Dalton Gregory seconded the motion. Ms. Vicars-Nance was elected by acclamation. Ms. Vicars-Nance then asked for nominations for vice chair. Dr. Richard Stream nominated Mr. Gregory. Mr. Bortnem seconded the motion. Mr. Gregory was elected by acclamation. Ms. Ingram distributed handouts for discussion of the funding history from 1997 to 2008. Ms. Ingram made note that there was an increase in general funds from 2007 to 2008 as recommended by the committee due to continued population increase. Mr. Gregory asked what had happened with the Fair Share recommendation for the Children's Advocacy Center. Ms. Ingram stated that the City Council accepted the HSAC fair share support letter and agreed to fund $26,000 in its fair share amount and approved the $9,000 in general funds recommended by the HSAC. The total amount awarded to the Children's Advocacy Center is $35,000 for the 2008-2009 fiscal year. Members discussed the Human Services Advisory Committee (HSAC) procedures. Ms. Ingram told the committee there were no changes in the internal procedures. Steve Pogue recommended that the applications be paperless. Mr. Gregory suggested that the committee bring their laptops to view the applications during the agency presentations. Mr. Bortnem agreed that it would be a good idea to request that the organizations submit their applications electronically. Ms. Vicars- Nance requested hardcopies be made available to committee members if preferred. The majority of the present members agreed that the use of laptops was a viable option to review and view the applications with hard copies made available if preferred. Mari Metzgar requested that the organizational website be included on the application. There were no other changes to the application. Staff will provide flash drives/memory sticks to committee members wanting to use their laptops and request applicant organizations submit fewer hard copies. Ms. Ingram reviewed last year's agency hearing format. Mr. Bortnem and Ms. Vicars-Nance thought the format worked well last year and did not require any changes. The committee was in agreement with the format as follows: 1) Presentations will be 5-minutes long for organizations to present relevant agency and funding facts not included in the application, 2) Committee members will ask questions for up to five minutes, 3) No more than two representatives are asked to appear and should bring a copy of their application for reference, 4) Additional handouts are not required at the presentations. If handouts are desired by the organizations for the presentations, applicants are requested to forward them via e-mail to staff or leave them for Page 54 the HSAC to review after the presentations. The HSAC requests that handouts not be distributed during the presentations. Mr. Pogue recommended requesting the organizations arrive 30 minutes ahead of schedule. The following meeting dates were selected: Application Workshop Sessions, Start Time 9 AM Monday, January 5, 2009 Thursday, January 8, 2009 *One workshop session is mandatory for organizations wishing to submit an application. HSAC Application Presentations, Start Time: 6 PM Monday, February 16, 2009 Monday, March 2, 2009 HSAC Funding Recommendation Meeting, Start Time: 6 PM Monday, March 23, 2009 The meeting was adjourned at 6:48 PM. Page 55 OFFICIAL MINUTES HUMAN SERVICE ADVISORY COMMITTEE MEETING February 16, 2009 Members Present: Kami Fletcher, Lorn Bortnem, Dalton Gregory, Mari Metzgar, Mary Ann McDuff, Steve Pogue, Dr. Richard Stream, Jodi Vicars-Nance, and Angie Jester Staff Present: Barbara Ross and Alma Espino Chair Jodi Vicars-Nance called the meeting to order. Staff Barbara Ross introduced Alma Espino as the new human services coordinator for the City. Ms. Vicars-Nance asked if there were any changes on the minutes. Hearing none, she asked for a motion. Lorn Bortnem made the motion to approve the minutes from December 15, 2008. Dr. Richard Stream seconded the motion. The minutes were approved as written. 2009-2010 Human Services Applicant Presentations: Court Appointed Special Advocates (CASA) of Denton County Lauren Travis, Development Associate and Dixie Berry, President of the Board of Directors were the first presenters. From 1998 to 2006 there was a 12% increase. From 2003 to 2006 it was a 20% increase. Recent initiatives by Child Protective Services decreased services provided. Not as many children are being taken from their homes. They are also looking to get new space. They are fully staffed but do not have sufficient room for all staff and a training center. In 1998, CASA only had four staff members, now they have ten staff members and many more volunteers. With the support of the City of Denton, they have been able to serve 3,491 children that were not safe in their homes. Their goal since 1998 has been to serve 100% of children. They have served all but 416 children since 1998 in Denton County. It was noted that if CASA is not funded by the City there would be a lot more than 416 children that wouldn't receive services. As mentioned in the application, approximately 46% children served last year were from the city of Denton. It was noted that the downturn in referrals would probably not continue. Ms. McDuff asked why they asked for only a portion rather than a full salary. Ms. Travis stated that she was unsure why it was only a portion. Ms. Vicars-Nance suggested that it was probably the history of what they've received in the past. Ms. Travis stated that she would get an answer and have it forward to them. Ms. Jester asked if they worked with the Nelson center. Ms. Travis said there is no formal relationship, but that they have worked with them. Ms. Vicars-Nance noted that they are doing a little bit better with their diversity. Ms. Travis stated that they have a committee that is set up to look at diversity issues. Ms. Berry stated that they were having difficulty getting a Hispanic on the board, but that the committee was looking into this. AIDS Services of North Texas Susan Stambaugh, Director of Clinic Services and Andre English, Nutrition Center Coordinator, introduced themselves. Ms. Stambaugh thanked the committee for funding AIDS Services last year and has been funded by the City for many years. She noted that the Federal funds for food services are going away. Federal funds are all going to medical care and medications. Yet, the basic needs of food, housing and transportation are still present and still very necessary. Ms. Page 56 Stambaugh noted that they will lose approximately $40,000 in funding next year. In January 2008, AIDS was serving about 75 city of Denton clients. This January, 122 of their clients were from the city of Denton. It is anticipated, due to the economy that the number requesting "shops" (one week of groceries) will continue to go up for clients from the city of Denton. It was noted that 25% newly diagnosed go from HIV to AIDS diagnosis in the first month. This is due to people waiting to come and get tested. Ms. Stambaugh added that there has been an increase in 18 to 30 year olds and the number of students. Steve Pogue asked if fund raising was getting more difficult. Ms. Stambaugh stated that it was. She noted that their Hearts and Heroes event may not have been as successful as in the past. The Food Pantry has done four or five large food drives this year. Dalton Gregory asked if their food was different from those of other food services. Ms. Stambaugh stated that it is more supplemental and it is high protein foods. Dr. Stream asked if they believe the current administration will increase funding. Ms. Stambaugh responded that she did not think that would be the case. Ms. Jester asked if the number of 37 staff members was correct. Ms. Stambaugh stated that they have three sites and the staff number includes the Guardian Program. Mr. Stream asked how much it costs to feed one individual per month. Ms. Stambaugh stated 30 to 35 dollars per week, so, approximately $132 per month. Lorn Bortnem asked what food bank they use. Ms. Stambaugh stated that it was the Tarrant County Food Bank. Denton County Children's Advocacy Center Dan Leal, Executive Director and Jim Martino, President of the Board of Directors, introduced themselves. Mr. Leal discussed the agency's mission. He noted that they work closely with the City of Denton Police Department and reviewed other agencies that they work with. He stated that they do group as well as individual counseling. They assist families where children are the victims of abuse and help agencies that are investigating Mr. Martino asked that the committee continue to request that the City support the "fair share" request to the Council. Mr. Martino noted that they are beginning to get support from almost all of the cities in the County. Mr. Leal stated that it would not come out of the Police budget, but would be a separate line item. Mr. Pogue asked if the smaller towns were kind of looking at the larger cities. Mr. Leal and Mr. Martino stated that Denton's support did help get support from others. He stated that Alma Espino had an updated chart. Ms. Jester stated that the grant was very well written. Mr. Leal noted that many crimes continue if children don't receive treatment and no Advocacy Center is available to assist. He discussed the agency's excellent relationship with the Police Department. It was noted that they had requested "fair share" funding a couple of years before receiving assistance. The Denton Police Department did a comparison of what the costs would be if they had to provide the services. Ms. McDuff asked if the new chief was supportive. Mr. Leal stated that he believed he was. Mr. Pogue asked about the amount of the fair share for last year. Staff would look into the amount and the chart would be emailed to committee members. PARD Playground Programs Kathy Schaeffer introduced herself. She explained how the Owsley and the MLK Summer Playground programs work. This year she's asking for space at Immaculate Conception Church Page 57 for the Owsley program. They provide a day camp, with field trips and swimming. The MLK program takes place at MLK and they have a similar program. Jodi Vicars-Nance asked what would happen if they didn't receive funding. Ms. Schaeffer stated that they would have to lower their number of children served. The waiting list gets longer. The programs are based on income. Kami Fletcher asked about the funding. Ms. Schaeffer stated that they try to raise funding and there is some City funding for this year. She stated she was trying to fund 84 programs. Ms. Vicars-Nance asked about whether these are drop-in programs. Ms. Schaeffer talked about how they handle attendance. Ms. Fletcher asked what the difference in costs is for King's Kids and Denia. Ms. Schaeffer stated that it is the same amount for both camps. She is unsure as to why the transportation was taken out of one of the requests. Mr. Stream asked why this wasn't a line item for the City of Denton. Ms. Schaeffer stated that they had put together supplemental packages. Ms. McDuff discussed that this would be a good opportunity for community service organizations. Mr. Pogue asked if they can try to find funding for these programs. Ms. Schaeffer stated that the Parks Foundation could. Communities In Schools Hillary Talatzko, board member introduced herself and Courtney Molchan, Director of Research, Development and Grants and Gary Henderson, Chief Executive Officer. Ms. Molchan discussed the programs and key metrics for 2007-08. They have expanded from 4 programs in 2007-08 to 12 programs in the area. They case manage students and Denton ISD is one of their largest service areas. Due to application rules on when to reapply, their Department of Education grant went away and they lost some programs there. Some of their largest donors have also quit providing funds, so some programs had to be closed, but others have been opened. No programs have been closed in Denton. They now have an operating budget of $2.25 million. Ms. Molchan referred to the statistics in the handout provided. She walked the committee through the organization's growth plan. If the plan is reached there will be 19 programs serving 1900 students. They are also requesting funding because in spite what they are doing they are still only serving 24% of the service population. Mr. Gregory asked how they determine which schools to serve. Communities in Schools looks at several variables like the economically disadvantaged or special needs in each school. Redistricting can change demographics. Ms. Fletcher asked where the $12,000 would be going. Ms. Molchan stated that it will serve the city of Denton thru personnel salaries for staff that provide direct services. Dr. Stream asked about performance measures. Ms. Molchan stated that they use 1) stay in school, 2) promotion rate, 3) academic performance, 4) behavior and attendance, 5) promotion and 6) graduation rate. Dr. Stream asked about referrals. Ms. Molchan explained the process and what organizations they get referrals from and the reasons for referral. It was noted that WS Ryan was one of the schools that they are targeting for a new program. Page 58 Ms. Fletcher asked about the feeder programs for tracking children after receiving assistance from the programs. Ms. Molchan explained how the feeder programs work. She noted that they are trying to get a program at Ryan High School to finish their feeder program for many children. Day Stay For Adults Andre Villarreal, Executive Director, introduced himself He stated that Davita Goodall, Activities Director, would probably be coming in. Mr. Villarreal explained the services provided by Day Stay for Adults. He stated that they will be trying to expand their services to include Home and Community Services (HCS) to assist those with disabilities and/or a medical need. He gave the example of an Alzheimer's patient that was physically in good shape. Mr. Villarreal also stated that transportation is a great need. Now there are pockets all over the County that are not receiving transportation services. He stated that they have been talking to the transportation agencies to get service for these households. Mr. Villarreal also noted that they would soon be moving. The State inspection is scheduled for the 24th and they will be able to move in on the 25th of this month. The new location is in Corinth. Mr. Villarreal invited the committee members to attend their Open House. He noted that they will also take over the building in Lewisville that the Advocacy Center is currently using. Ms. Vicars-Nance asked about the HCS services, and if the plan was to serve current recipients, since the waiting list is about 12-15 years long. Mr. Villarreal stated that he believes that he will serve people who are currently on the program, but are not receiving the types of services they offer. This group will include people who are younger, with mental and physical disabilities, but are in need of care during the day. Ms. Vicars-Nance asked if the HCS clients would be served separately. Mr. Villarreal replied that the new facility will allow for different programs on each side. He did note that different groups of people can be served by the programs together. Dr. Stream asked about the budget and the funding for meals. Mr. Villarreal stated that there are 38 clients enrolled but they don't always show up everyday. The Medicaid clients usually come in every day, but the private pay clients do not. Dr. Stream stated that they are averaging 25 clients per day about 5 days per week. Mr. Villarreal explained why they do not cook their own meals on site. Mari Metzgar asked about the daily cost. Mr. Villarreal stated that services average about $44 per day and reviewed the services that are provided for that amount. Denton Christian Preschool Judy Royal, Director, and Alicia Blanca, Assistant Director, introduced themselves. Ms. Royal gave some statistics regarding free and reduced lunch children currently in kindergarten in Denton ISD. She stated that this shows how many low-income four-year-olds in the City that need programs similar to those provided at Denton Christian Preschool. This amount continues to increase. Ms. Blanca discussed the waiting list and how long families wait to get their children in. They have children as long as 6 months on the waiting list. They have over 200 names on the waiting list. Mr. Pogue asked about whether some statistics were from Denton ISD. Ms. Royal stated that the statistics were obtained from the DISD nutritional coordinator. Mr. Stream asked if they provided transportation. Ms. Royal stated that they do. They have their own buses. Ms. Metzgar asked how the transportation worked. Ms. Royal said that they limit transportation to local areas. Transportation is not provided to Sanger. Page 59 Dr. Stream asked how they work with such a large waiting list. Ms. Royal stated that they have a committee of volunteers that include teachers, volunteers and staff, who look over the applications. They look at various at-risk guidelines of DISD, like single parent households, very low-income, etc. Teams of two actually visit the homes and then decisions are made as to who can attend. Ms. Fletcher asked if they had a class where they're teaching Spanish. Ms. Royal stated that their program is intended to get the children ready for school, so they try to teach the Spanish- speaking children to speak English. She noted that in many instances the English-speaking kids do learn Spanish. Denton City County Day School Eddie Garcia, Executive Director, introduced himself He provided a history of the day care. Mr. Garcia stated that they try to provide more than just a safe place for the kids. They try to help them transition to kindergarten. Mr. Garcia stated that they take good care of the facility and most families are pleasantly surprised by the cleanliness of the building. It was noted that DCCDS must comply with the same requirements as for-profit day cares. Mr. Garcia commented that fees range from $55 to $85. This is much lower than for-profit day cares. DCCDS also provides their employees with benefits and a good work environment and this supports longevity. Some of the teachers have been at the school for 11 years. He added that costs continue to go up. Ms. Fletcher asked if they serve infants. Mr. Garcia stated that they did at one time, but they are no longer able to do that due to State requirements. Mr. Gregory asked what their capacity is. Mr. Garcia stated that they are licensed for 120 but only serve about 85. He added that the building was too small for 120. Ms. Metzgar asked what the actual cost to serve each child was. Mr. Garcia stated that it is $123. Mr. Gregory asked about other funding. Mr. Garcia responded that they get funding from the State's food program. Dr. Stream asked how DCCDS's program differs from Denton Christian Preschool. Mr. Garcia stated that they are a full-time day care and he did not believe that DCP was full-time but, he was unsure. They also take children from 2 to 5 and in the summer from 5 to 10. Dr. Stream asked about the criteria for acceptance. Mr. Garcia stated that they must meet the income requirements. Acceptance is left up to the director and assistant director. They follow guidelines and make the decisions. They do have a waiting list but the number of children varies. Mr. Gregory asked what the most recent improvement was. Mr. Garcia stated that the gym was built in 2003. Other smaller improvements have been funded with CDBG funds. Mr. Garcia invited the members to the Open House in April. Members discussed visiting the sites. It was determined that members could call and set up a visit. Ms. Espino will email the agencies and let them know that the members may be calling. Ms. McDuff stated that the only agency that provides infant care is Fred Moore Child Care. Lorn Bortnem moved that the meeting be adjourned. Ms. Jester seconded, the meeting was adj ourned. Page 60 OFFICIAL MINUTES HUMAN SERVICE ADVISORY COMMITTEE MEETING March 2, 2009 Members Present: Lorn Bortnem, Dalton Gregory, Mari Metzgar, Mary Ann McDuff, Steve Pogue, Dr. Richard Stream, Jodi Vicars-Nance, Jan Hillman and Angie Jester Members Not Present: Kami Fletcher Staff Present: Barbara Ross and Alma Espino Chair Jodi Vicars-Nance called the meeting to order at 6:07 pm. Dalton Gregory pointed out that it is Texas Independence Day. Alma Espino made some announcements and asked members if they received the emails and attached documents she sent out. She asked about the possibility of changing the next meeting to an earlier date. Committee members agreed to keep the March 23rd meeting date. The committee members agreed to email Ms. Espino the evaluation forms as soon as possible. They are due by March 12th. Angie Jester was introduced as a new committee member. Ms. Ross stated that the City will receive $232,917 in CDBG and some of that may be eligible for 2008-2009 human services. She will advise the committee as soon as this information is made available. Ms. Vicars-Nance asked if members had reviewed the minutes from February 16, 2009. She asked for corrections. She noted that her name was spelled incorrectly in the first paragraph. Mr. Bortnem moved the minutes be approved. Ms. Jester seconded the motion. The minutes were approved as corrected. 2009-2010 Human Services Applicant Presentations: Plano Community Home Sponsor for Fairhaven Molly Mann, Campus Administrator, represented Fairhaven. She is requesting funding for a service coordinator. Ms. Mann described the tasks that the service coordinator carries out. Ms. Mann discussed some additional goals for the facility such as expanding transportation for the residents. She noted that they had hired a development director who is working to find additional resources for the organization. Ms. Mann explained that the residents are somewhat frail and this is why the service coordinator is needed. Dr. Stream asked about the low occupancy levels at Fairhaven. Ms. Mann explained that they are having difficulty getting additional tenants. The center is unique because it offers up to 3 meals a day and is a step between independent and assisted living. She noted that Fairhaven is an older facility, with 50 apartments. The rooms are small and many of those who can live independently want a larger space. She stated that if Fairhaven were to close, the service coordinator could be transferred to Fairoaks. Mr. Gregory asked if Plano Community Homes is a non-profit. Ms. Mann said that it was. Page 61 Ms. Vicars-Nance asked when Plano Community Homes took over. Ms. Mann responded that they took over in 2006. Dr. Stream asked if the program was viable for another facility. Ms. Mann stated that if the center closed the service coordinator could be transferred to Fairoaks. It has the same mission and goals. Dalton Gregory asked if the position was full or part time. Ms. Mann stated that it was full time. Ms. Vicars-Nance asked why only one board member was from Denton. Ms. Traylor stated that various members had been from Denton, but that a change to the board had occurred after Plano Community Home took over. Ms. Ross explained that the funding is provided as a reimbursement for services and doesn't get paid up front. Family Health Care Patrice Capan introduced herself as Executive Director of Family Health Care. She noted that they have admitted 307 women into the clinic, over 43% are from Denton and 22% qualified for City of Denton funds. City funds have been used to help women who are not yet on Medicaid. The process to get on Medicaid can take 3 to 4 months. It is important to be seen during this time to receive proper prenatal care. Also, most physicians will not accept a client who has not seen a physician in the first 20 weeks of their pregnancy. This money helps the clinic serve individuals as they are waiting on other funding sources. She added that they accept all kinds of co-pays and Immaculate Conception helps pay for labs if the individual has no funding. Dr. Stream asked if they were undocumented aliens. Ms. Capan stated that some of them are. This program gets them into early prenatal care. Mr. Pogue asked why she didn't ask for more funds. Ms. Capan stated that the CHIP Prenatal program has been helping and so they didn't need as much. Mr. Gregory stated asked why they only served 74 of the 84 projected for 2007/08 year. Ms. Capan stated that it had gone down due to other funding sources being available. The first visit, prior to receiving assistance from Medicaid or other programs, is very important. Mr. Bortnem asked why Denton numbers were down. Ms. Capan stated that it was due to access to other funds. Fred Moore Child Care Laura Williams, Executive Director and Jason Adamson, Board President, introduced themselves. Ms. Williams stated that they are the only agency that provides day care for infants and toddlers. There is no sliding scale for infant care, which is $90 per month. Other day cares charge an average of $190 compared to Fred Moore's $90. The center can have up 90 children, but the average is 65. Mr. Adamson stated that the debt to the IRS has been repaid and there is only a small amount ($4,000) owed by the agency. He reviewed the board committees and groups that have been set up. He also noted what the board has been working to build a strong Page 62 foundation for Fred Moore Child Care. He added that he believes Fred Moore will do well. They are currently working on fundraising. Mr. Pogue commented that most of the changes were board initiated rather than staff initiated. Ms. McDuff stated some of the positive things about the agency and that they are also supported by United Way. Dr. Stream stated that he was concerned about the protocols including parent involvement. He asked how much training is given in parenting. Ms. Williams explained how the parents participate and the training that is available to them. Mr. Pogue asked about the increase in tuition and how that will affect the families. Ms. Williams explained that in the last seven years tuition had been raised only $12. Raising tuition is a burden, but based on what is available they are still providing a low cost program. Currently they care for 12 infants. Ms. Ross asked how the $90 for infant care cost was determined. Ms. Williams stated that infant care cost is usually higher, above $120. Ms. Metzgar asked how often the board meets. Mr. Adamson stated that they meet monthly but will soon meet quarterly. Committees meet between those dates. Mr. Pogue asked about monthly statements. Mr. Anderson stated that several board members were reviewing monthly statements. Members discussed visiting the facility. HOPE, Inc. (Transitional Housing) & Homeless Management information System (HMIS) Barbara Atkins, Executive Director of HOPE introduced herself and Carl Seiler, Project Coordinator, who manages the HMIS. Ms. Atkins described the services provided by HOPE. There are over 600,000 homeless and 1.35 million children, the hidden homeless. Ms. Atkins also described the goals of the agency and how they plan to strengthen the agency. She noted that the HMIS is working on several things including "point in time" homeless count. She stated that the information will be helpful for many organizations. They are currently doing an Annual Homeless Assessment Report. They want to move toward data sharing and allow agencies to avoid duplication. Ms. Atkins noted that four local agencies, including the HMIS were funded under the Supportive Housing Program grant. She read a portion of the letter from the US Department of Housing & Urban Development. Ms. Jester asked about other agencies that would want to share data. Ms. Atkins mentioned Our Daily Bread and some church groups. Ms. Atkins reviewed the current agencies that participate in the HMIS. She noted that agencies must participate in the HMIS before they can request Federal homeless funding. Ms. McDuff asked about Interfaith Ministries. Ms. Atkins stated that Interfaith currently has their own database and they are discussing how to share data without compromising confidential issues. Page 63 Mr. Pogue asked for clarification on the HOPE website. Mr. Seiler explained that there is not a website for HOPE, Inc. Ms. Atkins stated that they are working on a website for the Denton County Homeless Coalition. Mr. Gregory asked about families that become homeless and they don't realize that they now have a special status. He asked if any of the agencies that serve homeless provide this information to their families. Ms. Atkins stated that they have relied on the school districts but that agencies could put out more information. Ms. McDuff asked about HELPNET and commented on the need for this centralized data system. Mr. Seiler explained that the current system could handle quite a bit of social service data. So, there is the possibility of expanding the system. Ms. Atkins added that there were issues with all the current different databases, regulations per accessing data and how to access the different data. Mr. Pogue asked about putting the "point in time" homeless count on the web, so that others could use the information. Ms. Atkins explained that the data was in the process of being compiled. People's Clinic Mary Freemon, Executive Director of the People's Clinic explained the services provided by the agency. She stated that the funds would help people get x-rays or prescriptions that they cannot afford. Dr. Stream asked about the Kiwanis group and the funds that they provide. Ms. Freemon stated that these funds go to pay for services the families cannot afford. Mr. Pogue asked about their United Way funding from the previous year. They had requested $15,000, but only received $631. Ms. Freemon stated that is what she had been awarded. They are currently working on a funding request and United Way would be visiting next week. Ms. Freemon also stated that they are getting membership to allow them to get Medicaid dollars. She noted that they have not seen the increase in volume that they anticipated. Mr. Gregory asked about why the People's Clinic had not been funded in 2008-09. Ms. Freemon stated that the previous staff had missed the deadline for the application. Ms. McDuff asked about their work with Interfaith Ministries. Ms. Freemon stated that Interfaith is available to assist with client expenses or sometimes Interfaith clients are seen at no charge. They also don't charge to see people from the local shelters. It was noted that they refer patients to Interfaith to get prescriptions. RSVP Diana Corona, Executive Director, and Judy Smith, Special Projects Coordinator, of RSVP introduced themselves. Ms. Corona described the mission of the agency and how their volunteers are going to be needed to meet community needs. She noted that Denton has excellent services for seniors. RSVP is a key player in keeping older adults engaged in their community. Ms. Smith reviewed some new initiatives from RSVP - consulting services for non- profits and the Renaissance Apartments after school program for at risk children. Page 64 Dr. Stream asked about the fact that there may be fewer seniors who are able to help. Ms. Corona stated that she didn't think that this would be the case. She added that some have had to go back to work, but people are still volunteering. Ms. Smith stated that they have a lot of requests for volunteer opportunities on Saturdays or at night. Dr. Stream asked about Robson Ranch volunteers. Ms. Smith reviewed several of the activities that these individuals participate in. SPAN Linda Leukel, Executive Director, and Richard Taliaferro, Board Chair, introduced themselves. Ms. Leukel noted that hunger is a reality for seniors. She stated that it exists in our community. Ms. Leukel stated that they feed hot meals to the elderly every day. She described some of the additional things that the agency does and how they partner with other groups in the community such as the Police Department, to ensure the health and safety of seniors. Ms. Leukel stated that the CPI has continued to increase and is asking for an increase in funding if it is available. Mr. Gregory asked about the CPI. It was noted that it is the consumer price index. Ms. McDuff asked about their "pet" program. Ms. Leukel stated that they have several different donors that provide food for the pets of seniors. Mr. Pogue asked about the 2007-2008 budget figures. Ms. Leukel stated that the figures had not been available at the time the application was completed. She indicated that she would get the budget data to the committee. Mr. Bortnem asked where they got their meals. Ms. Leukel stated that it comes from Valley. She described earlier days when they cooked their own food. Mr. Gregory asked if they still provide congregate meals to get people out of their homes and interacting with others. Ms. Leukel stated that they still provide this and are expanding the program. It was noted that some volunteers had to stop because of the price of gas. She stated that each volunteer delivers about eight meals a day. Camp Summit Lisa Brazel, Camp Director and Carla Weiland, CEO, introduced themselves. Ms. Weiland explained how their programs assist families and benefits the individual being assisted. She described a specific camper's experience. Ms. Brazel stated that their program is unique because they serve adults. She added that there have been a significant number of adults in the program. Money does stop many people from attending camp. The City of Denton funds are very important to their program. Dr. Stream asked about their service numbers. Ms. Brazel stated that they serve about 1200 people on an annual basis. During the summer camps they serve about 754 in 10 sessions that are a week long. Mr. Gregory asked about their potential move. Ms. Weiland stated that they are still waiting and raising money. They will move toward Sunset, which is in a more rural area about 70-85 miles from their current location. Page 65 Mr. Bortnem asked exactly what the funding requested would be used for. Is the money strictly for city of Denton individuals? Ms. Weiland said it would assist Denton residents. Dr. Stream asked if these were persons with physical and developmental disabilities. Ms. Weiland stated that they have one or both physical and developmental disabilities. Mr. Gregory asked about emergency services in their new area. They discussed services that are currently available and what would be available in the new location. Denton County Friends of the Family Wendy Trayler, Program Development Coordinator introduced herself. She described their services and stated that they are the only agency in Denton County that provides shelter services for victims of domestic violence. She noted that an average shelter stay is 27 days. Clients are offered transitional housing and counseling services. Mr. Gregory asked if they receive funding from the City of Lewisville and other cities. Ms. Trayler stated that they do receive funding from the City of Lewisville. Mr. Pogue asked why their grant funding was going down. Ms. Trayler stated that they lost funds last year and will probably not get that back. Fund raising is down. She noted that they have a fundraising event coming up at the Hilton Garden Inn in Lewisville. Mr. Pogue asked why their rent was going up. Ms. Trayler stated that it is going up because they have a larger facility. Ms. Jester asked if they served only Denton and was it a 24 hour facility. Ms. Trayler stated that their facility and crisis line were available 24 hours a day. She added that there also had to be space available in the shelter. If no space is available the client is referred. Mr. Pogue asked how often they refer. Ms. Trayler stated that they refer 4-5 times a year. Ms. Jester asked if they are referred to another city if no space is available. Ms. Trayler stated that transitional housing for the night can be made available until a space opens up in the facility. Dr. Stream asked if the agency provided services to battered men. Ms. Trayler stated that they do provide services, but not in the shelter. The shelter is for only women and children. Ms. Jester asked about the money made at the thrift center, she noted that it was quite a bit. Ms. Trayler stated that the community had been very generous. Ms. Espino reminded HSAC members to email their evaluation forms to her as soon as possible. They are due by March 12th. Committee asked how much was available in funding. Ms. Espino stated that there was $131,389 in CDBG funds available. In 2008-09, the City of Denton provided funding of $119,602 in general funds. The meeting was adjourned. Page 66 OFFICIAL MINUTES HUMAN SERVICE ADVISORY COMMITTEE MEETING MARCH 23, 2009 Members Present: Lom Bortnem, Dalton Gregory, Mari Metzgar, Mary Ann McDuff, Steve Pogue, Dr. Richard Stream, Jodi Vicars-Nance, Jan Hillman and Angie Jester Members Not Present: Kami Fletcher Staff Present: Barbara Ross and Alma Espino Chair Jodi Vicars-Nance called the meeting to order. She asked for any announcements. There were none. Ms. Vicars-Nance asked if members had reviewed the minutes from March 2, 2009. She asked for corrections. A correction was noted. Mr. Bortnem moved the minutes be approved. Ms. Jester seconded the motion. The minutes were approved as corrected. Ms. Espino provided the committee with a summary of their assessments that included an average allocation amount. Ms. Vicars-Nance asked the committee how they wanted to discuss the recommendations. Mr. Gregory stated that he calculated that they are about 2.4 percent over the budgeted amount. He added that he went down the list and took out the 2.4 % except for the HMS, which needs to be fully funded. However, he noted that the committee would still want to talk about specific requests where fewer members were interested in funding. Ms. Vicars-Nance stated that she did not think it was a good year to request additional funding. She requested that staff to take out the highest and lowest numbers on the chart to see how this would affect the total average allocation amount. Per staff the total amount did not change significantly. Members agreed that they would review the list of requesting agencies, discuss the amount of funding and make a recommendation. However, they would be able to go back and make revisions as needed, based on the total budget numbers. Plano Community Home Sponsor for Fairhaven Steve Pogue stated that if Fairhaven were dropped that this would mean only a 1% difference in what was available versus the committee's recommendations. Ms. Vicars-Nance suggested that they discuss Fairhaven first since the agency appeared to have limited support. She asked if anyone was against not funding Fairhaven. A decision was made not to fund Fairhaven. AIDS Services of North Texas AIDS Services request was discussed. Ms. Jester indicated that she was unsure as to why this specific need was funded when others were not. Ms. Ross indicated that any agency that is eligible can apply and that that the Sickle Cell Disease Association had been funded in previous years. Members agreed to recommend $12,000 as a starting point. Court Appointed Special Advocates (CASA) of Denton County Members agreed to recommend the average of $10,400. Denton County Children's Advocacy Center Members discussed the request from the Children's Advocacy Center of Denton County (CACDC) and the "fair share" amount that they were requesting from City Council. Ms. Vicars-Nance discussed the "fair share" amount. Dr. Richard Stream stated that he felt that this was not appropriate because all agencies could have a "fair share." Mr. Gregory discussed the support the agency provides for children that are victims of abuse. Members discussed whether they should fund the agency and submit a letter supporting the "fair share" amount. Mr. Gregory and Ms. Metzgar suggested that perhaps the amount from the committee could be reduced and perhaps the agency would receive more in "fair share" funding. Mr. Gregory discussed the City's decreasing tax Page 67 revenues and how this will affect future funding. Members continued to discuss the funding and made a decision to leave the funding at the average amount of $8,490. PARD Playground Programs Members discussed both PARD summer playground programs. Ms. Ross explained that the programs were developed as a result of the City receiving CDBG funds. She added that if funding was reduced the programs would have to serve fewer children. Mr. Pogue stated that the situation is similar to the Advocacy Center, but he would also like to see it funded by the City. Ms. Vicars- Nance said the Owsley Neighborhood was set up to serve the children in the neighborhood, but now they're being bused to other areas. Mr. Pogue stated that the poorest of Denton live in the Owsley area. Members agreed to fund both park programs at $7,000. Communities In Schools It was mentioned that Communities in Schools was not funded last year. It was noted that Communities in Schools had not requested funds last year. Ms. Hillman stated she was unclear of why the agency had a drop in funding last year from other sources and asked if they told us in their presentation. Dr. Stream thought the presenter was fairly vague about their benefit to the community. Mr. Gregory stated that agency targets schools with the highest amount of low-income students. The agency provides additional resources for these schools. He added that the agency helps fill a similar purpose as federal Title I that is no longer available. Ms. Vicars-Nance commented that she felt they have a good program. Members agreed to leave the average amount of $5,250. Day Stay For Adults It was commented that Day Stay for Adults is doing a good job and is the only provider of this service. Ms. Espino stated that the agency has not made any requests for payments from their 2008- 2009 fiscal year, which started in October 2008. The committee felt that the agency would utilize the funds before the end of the fiscal year. Members agreed to leave the average amount of $8,615. Denton Christian Preschool / Denton City County Day School Ms. Vicars-Nance stated that she would like to give Denton Christian Preschool and Denton City County Day School what they were provided last year. Members agreed to the amount of $22,500 for Denton Christian Preschool and $26,500 for Denton City County Day School. Family Health Care Family Health Care was discussed as possibly not needing all their funding. Members agreed to recommend the average of $20,035. Fred Moore Child Care Fred Moore Nursery School was discussed. Mr. Gregory suggested that might want to look at each child care agencies based on the number of children they serve, but then noted that all child care agencies don't provide the same type of service. Ms. Vicars-Nance suggested giving them $23,720. Members agreed to recommend the average of $23,720. HOPE, Inc. (Transitional Housing) & Homeless Management information System (HMIS) Members agreed to recommend the average of $20,400 for HOPE Inc. - Transitional Housing. Ms. Vicars-Nance stated that the HMIS requires the full $18,000 for match and to continue the Homeless Management Information system. Ms. Ross added that the match allowed homeless assistance agencies to receive over $100,000 in funding to assist the homeless. Members agreed to recommend the $18,000. People's Clinic Members agreed to recommend the average amount of $14,000. Retired Senior Volunteer Program (RSVP) Page 68 Ms. Jester stated that she preferred to give more funding to the Clinic and less to RSVP. Ms. Vicars- Nance described the services provided by the agency and how important it is to both the elderly and the agencies they serve. Members agreed to recommend the average of $7,530. Special Programs for Aging Needs (SPAN) Members agreed to recommend same amount as last year's funding of $17,500. Camp Summit Camp Summit was discussed. Ms. Metzgar stated that it was quite a bit of funding to serve a small number of people. She noted that there are other sources of funds that clients receive. Ms. Vicars- Nance stated that it assists more than just the individual with a disability, but also provides respite for the family. Ms. Metzgar stated that some of the clients could be served by Adult Day Stay. Mr. Bortnem suggested that they drop it to $4,000. Members agreed to recommend $4,000. Denton County Friends of the Family Denton County Friends of the Family was discussed and members agreed to recommend same amount as last year's funding of $24,000. The current total was $256,940. Members discussed how to cut the funding. Ms. McDuff stated about the need to reevaluate agencies and allocations every year in terms of conditions and needs due to guaranteeing the same amount and not decreasing the amount of allocation. Mr. Gregory pointed out that the People's Clinic was able to handle everything last year without any funding. He stated that it was a great program and that he supports it but this was a possible place to reduce funding. It was suggested that the People's Clinic go to $10,000. Mr. Pogue stated that he felt that the People's Clinic provided a great service for the amount of funds they receive. Members agreed to leave the funding at $14,000. Members decided to deduct funding from CASA to $10,000, the Children's Advocacy Center to $7,500, Denton Christian Preschool to $22,000 and Denton City County Day School to $26,000. Dr. Stream suggested dropping the PARD programs further to $6,000. Members agreed to recommend to the $6,000 for each PARD programs. Members agreed, due to lowering the total budget, to decrease Communities in Schools to $5,000 and Day Stay for Adults to $7,500. Ms. Metzgar stated that she didn't want to keep giving the same amount of funding to the same organizations, but wanted to consider new organizations that are serving those in need. Ms. Ross commented that the City and the United Way have discussed doing a needs assessment, but in the most recent needs assessment health care and day care were the primary needs. Mr. Pogue asked if in the letter to City Council it could be explained that the committee supports the Advocacy Center, but felt that the agency should receive their funding from "fair share." Members discussed whether they should have the same amount from last year of $251,000. A question was raised about whether the general funds were increased last year. It was noted that funding was increased by about $13,000 last year. Mr. Gregory made a motion to approve the funding levels for a total of $251,185. Mr. Pogue requested that that the motion be amended to include the letter suggesting that additional "fair share" funding be included in the budget. Mr. Gregory amended his motion and Mr. Bortnem seconded the motion. The members approved the funding recommendations. Ms. Espino explained that the Community Food Center ended their funding agreement and gave the $4,000 back. Members looked at the agencies funded in the 2008-09 to determine who could use the funding. Ms. McDuff suggested Fred Moore Child Care. Mr. Gregory suggested that they provide funding to health care and day care. Ms McDuff suggested that SPAN and Fred Moore receive funding. Members agreed to provide $1,000 to four agencies. Members agreed to provide an additional $1,000 to SPAN, Fred Moore, CASA and AIDS Services for the 2008-09 funding year. The meeting was adjourned. Page 69 CDBG-R Funds - Stimulus Funds: The City of Denton is also amending its 2008 Action Plan to incorporate CDBG-R funding. The City of Denton received $232,917 of American Recovery and Reinvestment Act (ARRA) funds, commonly referred to as the stimulus bill. The ARRA funds received are 2008 CDBG funds in addition to the City's annual CDBG entitlement funds. The City of Denton is incorporating the ARRA proposed activities in the draft 2009/10 Action Plan for Housing and Community Development as an amendment to the 2008 Action Plan. Of the $232,917, $22,000 was made available for Human Services. 2008-09 funded Human Services Agencies were advised the availability of the $22,000 in CDBG funds under the Recovery Act. Ten (10) requests were submitted and 6 were recommended for funding by staff Staff recommendations were submitted to the Human Services Services Advisory Committee for review and approval. The recommendations were approved via email on 4/15/2009 by a quorum that included the following Human Services Advisory Committee members: Lorn Bortnem, Dalton Gregory, Mari Metzgar, Mary Ann McDuff, Steve Pogue, Jan Hillman, Angie Jester and Kami Fletcher. Agency Recommendation Notes Provision of prenatal clinic aiding women who are without private Family Health Care $3,500 insurance or Medicaid. Funds will be used to assist an additional 16 low-income clients with prenatal care during the 2008/09 contract year. SPAN (services Provision of congregate and home-delivered meals to the elderly. Programs for Aging $2,500 Funds will be used to provide meals to 12 additional clients Needs) during the 2008/09 contract year. Provision of food and medical care to individuals and families AIDS Services of $4,500 impacted by AIDS/HIV. Funds will be used to buy food, hygiene North Texas products and medical care for an additional 7 clients during the 2008/09 contract year. Provision of day stay activities and meals to functionally impaired Adult Day Stay $4,450 adults for additional 4 clients. Funds will be used to subsidize daycare costs not covered by Medicaid reimbursement. Provision of financial assistance to families who are homeless or HOPE, Inc. - at risk to be homeless including rent or utilities and child care. Transitional Housing $4,550 Funds will assist an additional family through the 12 to 24 transitional housing program. Program will be carried out by HOPE, Inc. RSVP (Retired Senior Funds will add an additional 100 new mothers to the Seniors for Volunteer Program) $2,500 Childhood Immunization reminder system during the 2008/09 contract year. Total $22,000 Page 70 $3,074 Additional 2009-2010 CDBG Funds Recommendation: The 2009-2010 Federal budget has finally been passed and an additional $3,074 has been allocated to human services. Staff recommendations were submitted to the Human Services Services Advisory Committee for review and approval. The recommendations were approved via email and phone on 5/12/2009 by a quorum that included the following Human Services Advisory Committee members: Lorn Bortnem, Dalton Gregory, Mari Metzgar, Mary Ann McDuff, Steve Pogue, Jan Hillman, Angie Jester and Dr. Richard Stream. Agency Staff Total Recommendation Recommendation AIDS Services of North Texas 550 12,550 Denton City County Day School 550 26,550 Family Health Care, Inc. 550 20,585 HOPE, Inc. -Transitional Housing 550 20,950 Special Programs for Aging Needs 874 18,374 (SPAN) Total $3,074 Page 71 APPENDIX #1 - #3 SF424 Applications Page 72 O NT SF 424 Complete the fillable fields (blue cells) in the table below. The other items are pre-filled with values from the Grantee Information Worksheet. Date Submitted Applicant Identifier June 15, 2009 756000514 Type of Submission Date Received by state State Identifier Application Pre-application Date Received by HUD Federal Identifier ❑ Construction ❑ Construction ❑ Non Construction ❑ Non Construction Applicant Information Jurisdiction CITY OF DENTON UOG Code Street Address Line 1 601 E. HICKORY, SUITE B Organizational DUNS 07-138-0190 Street Address Line 2 Organizational Unit City DENTON State TEXAS Department PLANNING & DEVELOPMENT ZIP 76201 Countr U.S.A. Division COMMUNITY DEVELOPMENT Employer Identification Number (EIN): County DENTON 5-6000514 Program Year Start Date (MM/DD) 08/01/09 Applicant Type: Specify Other Type if necessary: Local Government: Township Specify Other Type U.S. Department o Program Funding Housing and Urban Development Catalogue of Federal Domestic Assistance Numbers; Descriptive Title of Applicant Project(s); Areas Affected by Project(s) (cities, Counties, localities etc.); Estimated Funding Community Development Block Grant 14.218 Entitlement Grant CDBG Project Titles: Description of Areas Affected by CDBG Project(s) Housing rehabilitation, minor repair, public facility Denton, Texas improvements, provision of public services, homeownership assistance, and program administration. CDBG Grant Amount dditional HUD Grant(s) Leveraged Describe 896,432 Additional Federal Funds Leveraged Additional State Funds Leveraged Locally Leveraged Funds Grantee Funds Leveraged Anticipated Program Income Other (Describe) 22,000 otal Funds Leveraged for CDBG-based Project(s) Page 73 Home Investment Partnerships Program 14.239 HOME HOME Project Titles: housing rehabilitation, assistance to Description of Areas Affected by HOME Project(s) CHDO for acquisition, rehab and homeownership Denton, Texas assistance, tenant based rental assistance and program administration $HOME Grant Amount $Additional HUD Grant(s) Leveraged Describe $582,576 $Additional Federal Funds Leveraged Additional State Funds Leveraged $Locally Leveraged Funds Grantee Funds Leveraged $Anticipated Program Income Other (Describe) $47,000 Total Funds Leveraged for HOME-based Project(s) Housing Opportunities for People with AIDS 14.241 HOPWA HOPWA Project Titles Description of Areas Affected by HOPWA Project(s) $HOPWA Grant Amount $Additional HUD Grant(s) Leveraged Describe $Additional Federal Funds Leveraged Additional State Funds Leveraged $Locally Leveraged Funds Grantee Funds Leveraged $Anticipated Program Income Other (Describe) Total Funds Leveraged for HOPWA-based Project(s) Emergency Shelter Grants Program 14.231 ESG ESG Project Titles Description of Areas Affected by ESG Project(s) $ESG Grant Amount Additional HUD Grant(s) Leveraged Describe $Additional Federal Funds Leveraged Additional State Funds Leveraged $Locally Leveraged Funds Grantee Funds Leveraged $Anticipated Program Income Other (Describe) Total Funds Leveraged for ESG-based Project(s) Congressional Districts of Is application subject to review by state Executive Order Applicant Districts 26 Project Districts 26 12372 Process? Is the applicant delinquent on any federal debt? If ❑ Yes This application was made available to the "Yes" please include an additional document state EO 12372 process for review on DATE explaining the situation. ❑ No Program is not covered by EO 12372 ❑ Yes ❑ No ❑ N/A Program has not been selected by the state for review Person to be contacted regarding this application First Name Barbara Middle Initial L. Last Name Ross Title CD Administrator Phone (940) 349-7235 Fax (940) 349-7753 eMail brosspcityofdenton.com Grantee Website - www.cityofdenton.com Other Contact Signature of Authorized Representative - George C. Campbell, City Manager Date Signed Page 74 APPLICATION FOR tam Approved No. 3076-0006 Version 7W FEDERAL ASSISTANCE ~ 5.2000 ~ AMlcwd 11#derrt or 1. TYPE OF SUBMISSION: 8. DATE RECEIVED BY STATE St3bApplcatlon Identller Appllcalon Pre-applcNon 0 Construction 9 Canstructlan 4. DATE RECEIVED BY FEDERAL AGENCY Federal kWAfler 13 mwowsitu Ii. APPUC:ANT INFORMATION Legal Name: adsational UnR CITY ~OF DENTON TEXAS per 95MANDDEVELOPMENT 07=138-0190 RMUNITY DEVELOPMENT Address: Name and telephone number of pawn to be ce twAod on ottvis Swm: Involving this app8catlon (glue area coda) 801 E. HICKORY. SU RE B flplLx: Brat Name: MRS. BARBARA L7BITOH Middle N91 DENMONSS e ft s Code &rlflx 7uzw Cols W mall: it t&EAIIt#PLO1W IDENTIFICATION NUMINEi {I=I Phan Number(gtm sse cods) FaxNumber (give "a cods) 7❑U~U®~®~ 1❑U 9319-7135 910-319-7753 & TYPE OF APPLICATION: 7. TYPE OF APPLICANT: (See bade of loan forApptlealon Typee) 0 New Contlnuallon 0 Revblan MUNICPAL 0 Revision. enter approprlats Ietfi s) In bcWee) back d form for deem on of lettera.) (epeclry) F1 Dher Ofrer (spvcm IL NAME OF FEDERAL AGENCY: U.B. DEPARTMENT OF HONING & URBAN DEVELOPMENT 10. CATALOG OF FEDERAL DOMESTIC ASSISTANCE NUMBER: 11. ooeemPTrve TTTL.E OF APPLICANR'S PROJECT: ®0® ADPARK MINBTRATIONEAND SEWER REPLACEMENT PROJECT TITLE4Name of ENTITLEMENT CDOG-K 12. AREA6 AFFECTED BY PROJECT Xffi n Cb A , Sri eke: DENTON, TEXAS % PROPOSED PROJECT 14. CONlGREI#SIONIAL DISTRICTS OF: Start Dater Erring Date: a. Appllcant b. pored 7110 BAOM 0 28 15. ESTIMATED FUNDING: 10. IS APPLICATION SUBJECT TO REVIEW BY STATE EXECUTIVE ORDER 12872 PROCESS? a. Federal a. Yee. 0 THIS PREAPPLICATTOWAPPLICATTON WAS MADE 232,917 AVAILABLE TO THE STATE EXECUTIVE ORDER 12372 b. Applicant PROCESS FOR REVIEW ON 0. State DATE: d. Local ~Iu b. No. M PROGRAM IS NOT COVERED BYE. O. 12372 9. Ofrar Q OR PROGRAM HAS NOT BEEN SELECTED BY STATE FOR REVIEW f. Program Income 17. IS THE APPLICANT DEUNQUENT ON ANY FEDERAL DEWr? g. TOTAL 232917 O Yee H "Yee' attach an a oo m tbn. 13 No .0 1 18. TO THE BEST OF MY KNOWLEDGE AND BELIEF, ALL DATA IN TH8 APPLICATIONI)PREAPPLICATION ARE TRUE AND CORRECT. THE DOCUMENT HAS BEEN DULY AUTHKWAZED BY THE GOVERNING BODY OF THE APPUCANT AND THE APPUCANT WILL COMPLY WITH THE ATTACHED A96URANCE8 IF THE ASSISTANCE IS AWARDED. Prwx I 5Nama a Name LW Name Campbell FDab I$r arraQer QFrorre7Nunber (gre see odds) Slwokae dAluhortrA Repr9e9ntalve Signed Pr euloua Ekltlon Usable Standard Form 424 (Rev .9-M) AiMFmdznd forrncsl Recrodudlon Preecrlbed by OMB ClmulsrA-102 Page 75 APPENDIX #4 Certifications Page 76 LOCAL GOVERNMENT CERTIFICATIONS FOR CDBG AND HOME PROGRAMS In accordance with the applicable statutes and the regulations governing the consolidated plan regulations, the jurisdiction certifies that: Affirmatively Further Fair Housing The jurisdiction will affirmatively further fair housing, which means it will conduct an analysis of impediments to fair housing choice within the jurisdiction, take appropriate actions to overcome the effects of any impediments identified through that analysis, and maintain records reflecting that analysis and actions in this regard. Anti-displacement and Relocation Plan It will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, and implementing regulations at 49 CFR 24; and it has in effect and is following a residential antidisplacement and relocation assistance plan required under section 104(d) of the Housing and Community Development Act of 1974, as amended, in connection with any activity assisted with funding under the CDBG or HOME programs. Drug Free Workplace It will or will continue to provide a drug-free workplace by: 1. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the grantee's workplace and specifying the actions that will be taken against employees for violation of such prohibition; 2. Establishing an ongoing drug-free awareness program to inform employees about - a. The dangers of drug abuse in the workplace; b. The grantee's policy of maintaining a drug-free workplace; c. Any available drug counseling, rehabilitation, and employee assistance programs; and d. The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace; 3. Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph 1; 4. Notifying the employee in the statement required by paragraph 1 that, as a condition of employment under the grant, the employee will - a. Abide by the terms of the statement; and b. Notify the employer in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five calendar days after such conviction; 5. Notifying the agency in writing, within ten calendar days after receiving notice under subparagraph 4(b) from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position title, to every grant officer or other designee on whose grant activity the convicted employee was working, unless the Federal agency has designated a central point for the receipt of such notices. Notice shall include the identification number(s) of each affected grant; 6. Taking one of the following actions, within 30 calendar days of receiving notice under subparagraph 4(b), with respect to any employee who is so convicted - a. Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or b. Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; 7. Making a good faith effort to continue to maintain a drug-free workplace through implementation of paragraphs 1, 2, 3, 4, 5 and 6. Page 77 Anti-Lobbying To the best of the jurisdiction's knowledge and belief: No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; and It will require that the language of paragraph 1 and 2 of this anti-lobbying certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. Authority of Jurisdiction The consolidated plan is authorized under State and local law (as applicable) and the jurisdiction possesses the legal authority to carry out the programs for which it is seeking funding, in accordance with applicable HUD regulations. Consistency with plan The housing activities to be undertaken with CDBG, HOME, ESG, and HOPWA funds are consistent with the strategic plan. Section 3 It will comply with section 3 of the Housing and Urban Development Act of 1968, and implementing regulations at 24 CFR Part 135. Signature/Authorized Official Date George C. Campbell Name City Manager Title 215 E. McKinney Street Address Denton Texas 76201 City/State/Zip (940) 349-8307 Telephone Number Page 78 Specific CDBG Certifications The Entitlement Community certifies that: Citizen Participation It is in full compliance and following a detailed citizen participation plan that satisfies the requirements of 24 CFR 91.105. Community Development Plan Its consolidated housing and community development plan identifies community development and housing needs and specifies both short-term and long-term community development objectives that provide decent housing, expand economic opportunities primarily for persons of low and moderate income. (See CFR 24 570.2 and CFR 24 part 570) Following a Plan It is following a current consolidated plan (or Comprehensive Housing Affordability Strategy) that has been approved by HUD. Use of Funds It has complied with the following criteria: Maximum Feasible Priority - With respect to activities expected to be assisted with CDBG funds, it certifies that it has developed its Action Plan so as to give maximum feasible priority to activities which benefit low and moderate income families or aid in the prevention or elimination of slums or blight. The Action Plan may also include activities which the grantee certifies are designed to meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community, and other financial resources are not available); Overall Benefit - The aggregate use of CDBG funds including section 108 guaranteed loans during program year(s) 2009, (a period specified by the grantee consisting of one, two, or three specific consecutive program years), shall principally benefit persons of low and moderate income in a manner that ensures that at least 70 percent of the amount is expended for activities that benefit such persons during the designated period; Special Assessments - It will not attempt to recover any capital costs of public improvements assisted with CDBG funds including Section 108 loan guaranteed funds by assessing any amount against properties owned and occupied by persons of low and moderate income, including any fee charged or assessment made as a condition of obtaining access to such public improvements. However, if CDBG funds are used to pay the proportion of a fee or assessment that relates to the capital costs of public improvements (assisted in part with CDBG funds) financed from other revenue sources, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. The jurisdiction will not attempt to recover any capital costs of public improvements assisted with CDBG funds, including Section 108, unless CDBG funds are used to pay the proportion of fee or assessment attributable to the capital costs of public improvements financed from other revenue sources. In this case, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. Also, in the case of properties owned and occupied by moderate-income (not low-income) families, an assessment or charge may be made against the property for public improvements financed by a source other than CDBG funds if the jurisdiction certifies that it lacks CDBG funds to cover the assessment. Page 79 Excessive Force It has adopted and is enforcing: A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations; and A policy of enforcing applicable State and local laws against physically barring entrance to or exit from a facility or location which is the subject of such non-violent civil rights demonstrations within its jurisdiction; Compliance With Anti-discrimination laws The grant will be conducted and administered in conformity with title VI of the Civil Rights Act of 1964 (42 USC 2000d), the Fair Housing Act (42 USC 3601-3619), and implementing regulations. Lead-Based Paint Its activities concerning lead-based paint will comply with the requirements of part 35, subparts A, B, J, K and R, of title 24; Compliance with Laws It will comply with applicable laws. Signature/Authorized Official Date George C. Campbell Name City Manager Title 215 E. McKinney Street Address Denton Texas 76201 City/State/Zip (940) 349-8307 Telephone Number Page 80 Specific HOME Certifications The HOME participating jurisdiction certifies that: Tenant Based Rental Assistance If the participating jurisdiction intends to provide tenant-based rental assistance: The use of HOME funds for tenant-based rental assistance is an essential element of the participating jurisdiction's consolidated plan for expanding the supply, affordability, and availability of decent, safe, sanitary, and affordable housing. Eligible Activities and Costs it is using and will use HOME funds for eligible activities and costs, as described in 24 CFR § 92.205 through 92.209 and that it is not using and will not use HOME funds for prohibited activities, as described in § 92.214. Appropriate Financial Assistance before committing any funds to a project, it will evaluate the project in accordance with the guidelines that it adopts for this purpose and will not invest any more HOME funds in combination with other Federal assistance than is necessary to provide affordable housing; Signature/Authorized Official Date George C. Campbell Name City Manager Title 215 E. McKinney Street Address Denton Texas 76201 City/State/Zip (940) 349-8307 Telephone Number Page 81 APPENDIX TO CERTIFICATIONS Instructions Concerning Lobbying and Drug-Free Workplace Requirements Lobbying Certification This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. Drug-Free Workplace Certification By signing and/or submitting this application or grant agreement, the grantee is providing the certification. The certification is a material representation of fact upon which reliance is placed when the agency awards the grant. If it is later determined that the grantee knowingly rendered a false certification, or otherwise violates the requirements of the Drug-Free Workplace Act, HUD, in addition to any other remedies available to the Federal Government, may take action authorized under the Drug-Free Workplace Act. Workplaces under grants, for grantees other than individuals, need not be identified on the certification. If known, they may be identified in the grant application. If the grantee does not identify the workplaces at the time of application, or upon award, if there is no application, the grantee must keep the identity of the workplace(s) on file in its office and make the information available for Federal inspection. Failure to identify all known workplaces constitutes a violation of the grantee's drug-free workplace requirements. Workplace identifications must include the actual address of buildings (or parts of buildings) or other sites where work under the grant takes place. Categorical descriptions may be used (e.g., all vehicles of a mass transit authority or State highway department while in operation, State employees in each local unemployment office, performers in concert halls or radio stations). If the workplace identified to the agency changes during the performance of the grant, the grantee shall inform the agency of the change(s), if it previously identified the workplaces in question (see paragraph three). 8. The grantee may insert in the space provided below the site(s) for the performance of work done in connection with the specific grant: Place of Performance (Street address, city, county, state, zip code) Check if there are workplaces on file that are not identified here. The certification with regard to the drug-free workplace is required by 24 CFR part 21. Place Name Street City Count State Zip Community Development 601 E. Hickory, Denton Denton TX 76205 Department Suite B Definitions of terms in the Nonprocurement Suspension and Debarment common rule and Drug- Free Workplace common rule apply to this certification. Grantees' attention is called, in particular, to the following definitions from these rules: "Controlled substance" means a controlled substance in Schedules Ithrough V of the Controlled Substances Act (21 U.S.C. 812) Page 82 and as further defined by regulation (21 CFR 1308.11 through 1308.15); "Conviction" means a finding of guilt (including a plea of nolo contendere) or imposition of sentence, or both, by any judicial body charged with the responsibility to determine violations of the Federal or State criminal drug statutes; "Criminal drug statute" means a Federal or non-Federal criminal statute involving the manufacture, distribution, dispensing, use, or possession of any controlled substance; "Employee" means the employee of a grantee directly engaged in the performance of work under a grant, including: a. All "direct charge" employees; b. all "indirect charge" employees unless their impact or involvement is insignificant to the performance of the grant; and c. temporary personnel and consultants who are directly engaged in the performance of work under the grant and who are on the grantee's payroll. This definition does not include workers not on the payroll of the grantee (e.g., volunteers, even if used to meet a matching requirement; consultants or independent contractors not on the grantee's payroll; or employees of subrecipients or subcontractors in covered workplaces). Note that by signing these certifications, certain documents must be completed, in use, and on file for verification. These documents include: 1. Analysis of Impediments to Fair Housing 2. Citizen Participation Plan 3. Anti-displacement and Relocation Plan Signature/Authorized Official Date George C. Campbell Name City Manager Title 215 E. McKinney Street Address Denton, Texas 76201 City/State/Zip (349) 349-8307 Telephone Number Page 83 CERTIFICATIONS FOR CDBG-R GRANT (1) Affirmatively furthering fair housing. The jurisdiction will affirmatively further fair housing, which means that it will conduct an analysis to identify impediments to fair housing choice within the jurisdiction, take appropriate actions to overcome the effects of any impediments identified through that analysis, and maintain records reflecting the analysis and actions in this regard. (2) Anti-displacement and relocation plan. The jurisdiction will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (42 U.S.C. 4601), and implementing regulations at 49 CFR part 24; and it has in effect and is following a residential anti-displacement and relocation assistance plan required under section 104(d) of the housing and Community Development Act of 1974, as amended, in connection with any activity assisted with funding under CDBG-R. (3) Drug Free Workplace. The jurisdiction will or will continue to provide a drug-free workplace by: 1. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the grantee's workplace and specifying the actions that will be taken against employees for violation of such prohibition; 2. Establishing an ongoing drug-free awareness program to inform employees about - (a) The dangers of drug abuse in the workplace; (b) The grantee's policy of maintaining a drug-free workplace; (c) Any available drug counseling, rehabilitation, and employee assistance programs; and (d) The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace; 3. Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph 1; 4. Notifying the employee in the statement required by paragraph 1 that, as a condition of employment under the grant, the employee will - (a) Abide by the terms of the statement; and (b) Notify the employer in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five calendar days after such conviction; 5. Notifying the agency in writing, within ten calendar days after receiving notice under subparagraph 4(b) from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position title, to every grant officer or other designee on whose grant activity the convicted employee was working, unless the Federal agency has designated a central point for the receipt of such notices. Notice shall include the identification number(s) of each affected grant; 6. Taking one of the following actions, within 30 calendar days of receiving notice under subparagraph 4(b), with respect to any employee who is so convicted: (a) Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or (b) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; 7. Making a good faith effort to continue to maintain a drug-free workplace through implementation of paragraphs 1, 2, 3, 4, 5 and 6. Page 84 (4) Anti-lobbying. To the best of the jurisdiction's knowledge and belief: 1. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement; 2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; and 3. It will require that the language of paragraph 1 and 2 of this anti-lobbying certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. (5) Authority of Jurisdiction. The jurisdiction possesses the legal authority to carry out the programs for which it is seeking funding, in accordance with applicable HUD regulations and other program requirements. (6) Consistency with Plan. The housing activities to be undertaken with CDBG-R funds are consistent with its consolidated plan. (7) Section 3. The jurisdiction will comply with section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 170 In), and implementing regulations at 24 CFR part 135. (8) Community development plan. The jurisdiction certifies that the consolidated housing and community development plan identifies housing and community development needs and specifies both short-term and long-term community development objectives that have been developed in accordance with the primary objective of the statute authorizing the CDBG program. (9) Following a plan. The jurisdiction is following a current consolidated plan that has been approved by HUD. (10) Use of funds. The jurisdiction has developed activities so as to give the maximum feasible priority to activities that will benefit low- and moderate-income families or aid in the prevention of slums or blight. Additional activities may be included that are designed to meet other community development needs having particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community where other financial resources are not available to meet such needs It has complied with the following criteria: 1. Maximum Feasible Priority. With respect to activities expected to be assisted with CDBG-R funds, it certifies that it has developed its Action Plan so as to give maximum feasible priority to activities which benefit low and moderate income families or aid in the prevention or elimination of slums or blight. The Action Plan may also include activities which the grantee certifies are designed to meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community, and other financial resources are not available); Page 85 2. Special Assessments. The jurisdiction will not attempt to recover any capital costs of public improvements assisted with CDBG-R funds by assessing any amount against properties owned and occupied by persons of low- and moderate-income, including any fee charged or assessment made as a condition of obtaining access to such public improvements. However, if CDBG-R funds are used to pay the proportion of a fee or assessment attributable to the capital costs of public improvements (assisted in part with CDBG-R funds) financed from other revenue sources, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG-R funds. The jurisdiction will not attempt to recover any capital costs of public improvements assisted with CDBG-R funds, unless CDBG- R funds are used to pay the proportion of fee or assessment attributable to the capital costs of public improvements financed from other revenue sources. In this case, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG-R funds. In addition, with respect to properties owned and occupied by moderate-income (but not low-income) families, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG-R funds if the jurisdiction certifies that it lacks CDBG-R or CDBG funds to cover the assessment. (11) Excessive Force. The jurisdiction certifies that it has adopted and is enforcing: (1) a policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations; and (2) a policy of enforcing applicable State and local laws against physically barring entrance to or exit from a facility or location that is the subject of such non-violent civil rights demonstrations within its jurisdiction. (12) Compliance with anti-discrimination laws. The CDBG-R grant will be conducted and administered in conformity with title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d), the Fair Housing Act (42 U.S.C. 3601-3619), and implementing regulations. (13) Compliance with lead-based paint procedures. The activities concerning lead-based paint will comply with the requirements of part 35, subparts A, B, J, K, and R of this title. (14) Compliance with laws. The jurisdiction will comply with applicable laws. (15) Compliance with ARRA. The jurisdiction will comply with Title XII of Division A of the American Recovery and Reinvestment Act of 2009. (16) Project selection. The jurisdiction will select projects to be funded, by giving priority to projects that can award contracts based on bids within 120 days from the date the funds are made available to the recipient, and that will ensure maximum job creation and economic benefit. (17) Timeliness of infrastructure investments. When the jurisdiction uses CDBG-R funds for infrastructure investments, the grantee will give preference to quick-start and finish activities, including a goal to use at least 50 percent of the funds for activities within 120 days of enactment of the Recovery Act. (18) Buy American provision. The jurisdiction will ensure that all iron, steel and manufactured goods used in construction, alteration, repair, or maintenance of a public building or public work project assisted with CDBG-R funds under the Recovery Act must be produced in the United States unless the Secretary finds that: (1) the requirement is inconsistent with public interest; (2) those goods are not reasonably available or produced in sufficient quantity in the U. S.; (3) or the use of the goods will increase the project cost by more than 25 percent. Page 86 (19) Appropriate use of funds for infrastructure investments. The Governor, mayor, or other chief executive, as appropriate certifies, that any infrastructure investments have received the full review and vetting required by law and that the chief executive accepts responsibility that the infrastructure investment is an appropriate use of taxpayer dollars. Alternatively, a grantee's chief elected official certifies that infrastructure investments will receive the full review and vetting required by law and that the chief executive accepts responsibility that the infrastructure investment is an appropriate use of taxpayer dollars. (20) 70% of CDBG-R for LML The aggregate use of CDBG-R funds shall principally benefit persons of low and moderate income in a manner that ensures that at least 70 percent of the grant is expended for activities that benefit such persons over the life of the CDBG-R grant. George C. Campbell Date City Manager Title Page 87 APPENDIX #5 Annual 110using iGoals Page 88 Annual Housing Completion Goals (Table 3B) Grantee Name: Expected Annual Actual Annual Resources used duriugthe period Number of Units Number of Units Program Year: To Be Completed Completed CDBG HOME ESG HOPWA 13FNFF1('L4R)'(;O,4LS (Sec. 215 (hrh) Homeless households ❑ ❑ ❑ ❑ Non-homeless households 69 ® ® ❑ ❑ Special needs households ❑ ❑ ❑ ❑ Total Sec. 215 Beneficiaries* 69 ® ® ❑ ❑ RFN7;4L GOALS (Sec. 215 On[1) Acquisition of existing units ❑ ❑ ❑ Production of new units ❑ ❑ ❑ Rehabilitation of existing units 2 ® ❑ ❑ ❑ Rental Assistance 2 ❑ ® ❑ Total Sec. 215 Affordable Rental 4 ® ® ❑ ❑ H03IE (111 A'FR GOALS (Sec. 215 Onh) Acquisition of existing units ❑ ❑ Production of new units 3 ❑ Rehabilitation of existing units 39 Homebuyer Assistance 23 ® ® ❑ Total Sec. 215 Affordable Owner 65 ® ® ❑ ❑ ('011RLVED RF!VIALA i\D 11N VFR GOALS (Sec. 215 Onh) Acquisition of existing units ❑ ❑ ❑ Production of new units 3 ❑ ® ❑ Rehabilitation of existing units 41 ® ® ❑ ❑ Rental Assistance 2 ❑ ® ❑ Homebuyer Assistance 23 ® ® ❑ Combined Total Sec. 215 Goals* 69 ® ® ❑ ❑ OVERALL HOUSING GOALS (Sec. 215+ Other Affordable Housiu-) Annual Rental Housing Goal 4 ® ® ❑ ❑ Annual Owner Housing Goal 65 ® ® ❑ ❑ Total Overall Housing Goal 69 ® ® ❑ ❑ Page 89 AGENDA INFORMATION SHEET AGENDA DATE: June 2, 2009 DEPARTMENT: Finance ACM: Jon Fortune SUBJECT Consider adoption of an ordinance of the City of Denton, Texas amending the Fiscal Year 2008- 2009 Budget and Annual Program of Services of the City of Denton to allow for an adjustment to the Airport Gas Well Fund of one million three hundred thousand dollars ($1,300,000) to provide for costs associated with runway construction, construction of a southeast taxiway, security fencing, drainage improvements, radar installation and improvements to Wolfe Road; declaring a municipal purpose; providing a severability clause; an open meetings clause; and an effective date. BACKGROUND Airport staff is working to advance six (6) capital improvement projects that are critical to improve security and service at the Airport. The total cost of these projects is summarized on the attached Airport Capital Improvement Projects for Gas Well Funding exhibit. All except the smallest of the projects is funded through cost participation from other government resources. The total cost estimated for the City of Denton for these projects is $1,300,000. The proposed funding source for the local participation in the capital projects is gas well royalty revenue from mineral production on the Airport property. Each of the three highest cost projects will be presented to the City Council in the future for consideration of an Airport Project Participation Agreement with a specific funding approval provision. In order to have an authorized budget from which to expend these funds, staff is requesting a FY 2008-09 Budget Amendment to identify the Gas Well Revenue Fund as the source for budgeted expenditures for these projects. The balance of the unreserved funds in the Airport Gas Well Revenue Fund as reported January 31, 2009 was $3,682,537. Gas well royalty revenue has continued to accumulate at over $45,000 per month during the first quarter of 2009. Anticipated monthly revenue is projected to increase to over $500,000 per month beginning in August 2009 as a result of seven new gas wells on Airport property being placed into production by Range Resources. PRIOR ACTIONNIEW (COUNCIL, BOARDS, COMMISIONS) The Airport Board recommended approval of the proposed Budget Amendment 7-0 on May 6, 2009. Agenda Information Sheet June 2, 2009 Page 2 FISCAL INFORMATION This ordinance will allow $1,300,000 from the Airport Gas Well Fund unreserved fund balance to be expended for capital improvement projects. EXHIBITS 1. Airport Capital Improvement Projects List 2. Ordinance Respectfully submitted: 4 5~ 7, Bryan Langley Director of Finance Airport Capital Improvement Projects for Gas Well Funding May 2009 Project Total Cost DTO Others Runway Construction $8,500,000 $425,000 $8,075,000 South East Taxiway $1,624,000 $218,000 $1,406,000 Security Fence (perimeter) $627,000 $57,000 $570,000 Drainage Improvement $90,000 $90,000 $0 RADAR Installation $1,250,000 $250,000 $1,000,000 C. Wolfe Road Improvement $420,000 $260,000 $160,000 Total for Pending Projects 12.511.000 1 300 0 00 11.211.000 sAour documents\ordinances\09\airport budget amendments-doe ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING THE FISCAL YEAR 2008-2009 BUDGET AND ANNUAL PROGRAM OF SERVICES OF THE CITY OF DENTON TO ALLOW FOR AN ADJUSTMENT TO THE AIRPORT GAS WELL FUND OF ONE MILLION THREE HUNDRED THOUSAND DOLLARS ($1,300,000) TO PROVIDE FOR COSTS ASSOCIATED WITH RUNWAY CONSTRUCTION, CONSTRUCTION OF A SOUTHEAST TAXIWAY, SECURITY FENCING, DRAINAGE IMPROVEMENTS, RADAR INSTALLATION AND IMPROVEMENTS TO WOLFE ROAD; DECLARING A MUNICIPAL PURPOSE; PROVIDING A SEVERABILITY CLAUSE, AN OPEN MEETINGS CLAUSE, AND AN EFFECTIVE DATE. WHEREAS, pursuant to Ordinance No. 2008-209, the City Council of Denton, Texas, approved the Fiscal Year 2008-2009 Budget and Annual Program for Services (the "Budget"); and WHEREAS, the 2008-2009 Budget did not provide for the expenditures of $1,300,000 to cover the costs associated with runway construction, construction of a southeast taxiway, security fencing, drainage improvements, radar installation and improvements to Wolfe Road; and WHEREAS, it serves a municipal purpose that the Budget be amended to allow for an adjustment of $1,300,000 in the Airport Gas Well Fund operating budget for costs associated with runway construction, construction of a southeast taxiway, security fencing, drainage improvements, radar installation and improvements to Wolfe Road; and WHEREAS, the City Council finds that these Budget Amendments also serve an important municipal purpose already contemplated as eligible items for expenditure in the current Budget, consistent with Section 102.010 of the Texas Local Government Code and other applicable laws; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings set forth in the above preamble to this Ordinance are true and correct and are hereby adopted. SECTION 2. The Fiscal Year 2008-2009 Budget and Annual Program for Services is hereby amended by the City Council to allow for an adjustment to and increase in the Airport Gas Well Fund budget of One Million Three Hundred Thousand Dollars ($1,300,000) to provide for the expenditure of funds to cover costs associated with runway construction, construction of a southeast taxiway, security fencing, drainage improvements, radar installation and improvements to Wolfe Road. SECTION 3. This Ordinance shall be filed with the City Secretary, who is directed to attach a copy of this Ordinance to the Fiscal Year 2008-2009 Budget and Annual Program for Services and cause this Amendment to be published once in the Denton Record-Chronicle, and s:lour documentslordinanees109\airport budget amendments.doc to file a copy of this Ordinance with the County Clerk of Denton County and the State Comptroller of Public Accounts in Austin. SECTION 4. This Ordinance was approved by at least five members of the City Council as required by Section 8.08 of the City Charter. SECTION 5. If any section, subsection, paragraph, sentence, clause, phrase, or word in this Ordinance, or the application thereof to any person or under any circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 6. It is officially found and determined that the meeting at which this Ordinance was passed was open to the public as required by law, and the public notice of the time, place and purpose of this meeting was given as required by law. SECTION 7. This Ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 2009. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: Page 2 AGENDA INFORMATION SHEET AGENDA DATE: June 2, 2009 DEPARTMENT: Transportation Operations ACM: Howard Martin, 349-8232W- SUBJECT Consider adoption of an ordinance authorizing the City Manager to execute on behalf of the City of Denton an Airport Project Participation Agreement with the Texas Department of Transportation Aviation Division relating to certain runway improvements at the Denton Municipal Airport; authorizing and directing the City Manager or his designee to expend funds as provided for in said agreement and to implement the project; and declaring an effective date. (Airport Advisory Board recommended approval by 7-0 vote) BACKGROUND In January 2005, the City of Denton approved an Airport Project Participation Agreement (APPA) with the Texas Department of Transportation Aviation Division (TxDOT) to conduct land acquisition, engineering design and environmental review of a project to extend the primary runway at Denton Municipal Airport (DTO) by 1002 feet. This work has been substantially completed with the exception of one last parcel of land to be acquired for the runway safety area. TxDOT is now submitting an APPA for the construction phase of this project. The total cost of construction is projected to be $8,500,000, which cost was originally agreed to be funded 90% by TxDOT and 10% by the City of Denton. Due to a shift of TxDOT financial obligations on other capital projects to be funded through the American Recovery and Reconstruction Act of 2009 (Stimulus Package), TxDOT is proposing to fund the construction phase of the runway extension on a 95/5 cost sharing basis. The proposed APPA for runway construction will require $425,000 in funding from the City of Denton. These funds are proposed to be expended from gas well revenues previously identified for this purpose. A copy of the APPA is attached for consideration by the Council. Page 15 of the APPA identifies the City's source of funding to be gas well revenue from Airport mineral production. The construction notice-to-proceed is anticipated for this project by August 17, 2009. A copy of the construction phase schedule is, also, attached for review as Exhibit 3. PRIOR ACTION/REVIEW October 5, 2004 - City of Denton approved Ordinance 2004-309 to certify funding for the DTO Runway Extension Project; November 18, 2004 - Texas Transportation Commission approved Phase I for land acquisition, design and environmental review of the DTO Runway Extension Project; January 4, 2005 - City of Denton approved Ordinance 2005-013 to authorize land acquisition, design and environmental review services through TxDOT for the Runway Extension Project; I October 21, 2008 - City of Denton approved Ordinance 2008-248 to amend the land acquisition APPA for the runway extension at Denton Municipal Airport. April 8, 2009 - The Airport Advisory Board acted to recommend approval of the APPA for runway construction services. EXHIBITS 1. DRAFT Ordinance to approve APPA. 2. TxDOT APPA for Contract 9XXAV054. 3. Proposed construction schedule. 4. DRAFT Airport Advisory Board minutes, April 8, 2009. Respectfully submitted: e55; ~7 r14 Quentin Hix Airport Manager 2 EXHIBIT I ORDINANCE AN ORDINANCE OF THE CITY OF DBNTON, TEKAA , AUTHORI UNG THE QTY MANAGER TO E)MCUTE ON BEHALF OF THE CITY OF DENTON AN AIRPORT PROJECT PARTICIPATION AGREEMENT WITH THIS TEXAS DEPARTMENT OF TRANSPORTATION AVIATION DIVISION RELAnNG TO CERTAIN IMPROVE1V EIM AT THE DENTON MUNICIPAL AIRPORT; AUTHORM0 AND DIREi"'IING THE CITY MANAGER OR HIS DESIGNEE TO EXPIM FUNDS AS PROVIDED FOR IN SAID AGREEK4ENT AND TO Il►aPIMIENT THE PROJECT, AND DECLARJNC7 AN EFFECTIVE DATE. ' THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Manager of the City of Denton or his designee is he y and orized to execuds on behalf of the City of Deatm an Airport Project Participation Agi=ncmt ("APPA") with the Tams Departma t of Transportation Aviation Division 01 xDOT relating to certain runway impmvemmis at the Denton Mimmpal Airport as ideatiffied in the APPA, a copy of such vontract being ttt whod. hmvW and made a part hereof fan all purposes and nfin aced. as TxDOT Carrtract No. 931XAV054 (the "Agreement") and to expend funds as provided for in the AVeemect. SECTION Z. The City Manager or his deaoig = is the City's authorized representative who is directed to comply with any asa wanes, conditions or agreerrnents required to be emwated to receive the fimds provided. render the Agreement. SECTION 3. This ordinance shall become a ve bmwduftly apou its passage and approval. PASSED AND APPROVED this the day of . 2009. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY. EXHIBIT 2 TEXAS DEPARTMENT OF TRANSPORTATION AIRPORT PROJECT PARTICIPATION AGREEMENT (Federally Assisted Airport Development Grant) TxDOT CSJ No.: 0918DNTON TxDOT Project No.: AP DENTON 12 TxDOT Contract No.: 9XXAV054 Commission Approval: February 26, 2009 NPE Funds Applied: FY06, FY07, FY08, FY09 Part I - Identification of the Project TO: The City of Denton, Texas FROM: The State of Texas, acting through the Texas Department of Transportation This Agreement is made and entered into by and between the Texas Department of Transportation, (hereinafter referred to as the "State"), for and on behalf of the State of Texas, and the City of Denton, Texas, (hereinafter referred to as the "Sponsor"). The Sponsor desires to sponsor a project for the development of a public aviation facility, known or to be designated as the Airport under the Airport and Airway Improvement Act of 1982, as repealed and recodified in Title 49 United States Code, Section 47101 et seq., (hereinafter referred to as "Title 49 U.S.C."), and Rules, Regulations and Procedures promulgated pursuant to; and under V.T.C.A. Transportation Code, Title 3, Chapters 21-22, et seq. (Vernon and Vernon Supp). The project is described as construction services to: extend and mark Runway 17-35; extend parallel taxiway, medium intensity runway edge lights, medium intensity taxiway lights; expand run-up area; upgrade and relocate medium intensity approach lighting system with runway alignment indicator lights and precision approach path indicator-4 Runway 17; replace visual approach slope indicator with precision approach path indicator-4; fencing and install three security gates; declared distance signs; relocate glide slope/localizer antenna and MOA with FAA at the Denton Municipal Airport. The Sponsor applies for federal financial assistance and desires the State to act as the Sponsor's agent in matters connected with the project described above. The parties, by this Agreement, do fix their respective responsibilities, with reference to each other, with reference to the accomplishment of the project and with reference to the United States. Pursuant to and for the purpose of carrying out the provisions of Title 49 U.S.C., and in consideration of (a) the Sponsor's adoption and ratification of the representations and assurances contained in the Airport Project Participation Agreement and its acceptance of this Offer as 1 of 29 provided, and (b) the benefits to accrue to the United States and the public from the accomplishment of the project and compliance with the assurances and conditions as herein provided, THE TEXAS DEPARTMENT OF TRANSPORTATION, FOR AND ON BEHALF OF THE UNITED STATES, FEDERAL AVIATION ADMINISTRATION (HEREINAFTER REFERRED TO AS THE "FAA"), OFFERS AND AGREES to pay, as the United States share of the allowable costs incurred in accomplishing the project, ninety-five percentum of all allowable project costs. This grant is made on and subject to the following terms and conditions: Part II - Offer of Financial Assistance 1. The allowable costs of the project shall not include any costs determined by the State to be ineligible for consideration as to allowability under Title 49 U.S.C., the V.T.C.A. Transportation Code, Title 3, Chapters 21-22, et seq., (Vernon and Vernon Supp), and the Airport Zoning Act, Tex. Loc. Govt. Code Ann. 241.001 et seq. (Vernon and Vernon Supp). 2. It is estimated that construction project costs will be approximately $8,500,000.00 (Amount A). It is further estimated that approximately $8,500,000.00 (Amount B) of the project costs will be eligible for federal financial assistance, and that federal financial assistance will be for ninety-five percent (95%) of the eligible project costs. Final determination of federal eligibility of total project costs will be determined by the State in accordance with federal guidelines following completion of project. 3. The maximum obligation of the United States payable under this offer shall be $8,075,000.00 (Amount Q. This grant should not be construed as block grant funds for the Sponsor, but as a grant for funding of the scope items as listed on page one of this agreement. It is the intent of the State to provide funding to complete the approved work items of this grant and not to amend the scope of work to include items outside of the current determined needs of this project. Scope of work may be amended as necessary to fulfill the unforeseen needs of this specific development project within the spirit of the approved scope, subject to the availability of state, federal, and/or local funds. 4. It is estimated that the Sponsor's share of the total project costs will be $425,000.00 (Amount D). The Sponsor specifically agrees that it shall pay any project costs, which exceed the sum of the federal share (Amount Q. It is further agreed that the Sponsor will reimburse the State for any payment or payments made by the State in behalf of the Sponsor which are in excess of the federal percentage of financial participation as stated in Paragraph II-2. The State shall refund to the Sponsor, at the financial closure of the project, any excess funds provided by the Sponsor. 2 of 29 5. If there is an overrun in the eligible project costs, the State may increase the grant to cover the amount of overrun not to exceed the statutory limitations, and will advise the Sponsor by amendment of the increase. Upon receipt of the aforementioned amendment, the maximum obligation of the United States is adjusted to the amount specified and the Sponsor will remit their share of the increased grant amount. The State may decrease the agreement after completion of the describer scope. The Sponsor will be notified by letter of the decreased amount. Participation in additional federally eligible costs may require approval by the Texas Transportation Commission. The State will not authorize expenditures in excess of the dollar amounts identified in this Agreement and any amendments, without the consent of the Sponsor. Payment of the United States share of the allowable project costs will be made in accordance with the provisions of such regulations and procedures as the State and the FAA shall prescribe. Final determination of the United States share will be based upon the final audit of the total amount of allowable project costs and settlement will be made for any upward or downward adjustments to the Federal share of costs. 6. Sponsor's share of project costs (Amount D) shall be paid initially in cash when requested by the State. At project closeout, Sponsor will be reimbursed for any credited amounts that exceed Sponsor's share. 7. Sponsor, by executing this Agreement certifies, and upon request, shall furnish proof to the State that it has sufficient funds to meet its share of the costs as stated. The Sponsor grants to the State and federal government the right, upon advance written request during reasonable and regular business hours, to audit any books and records of the Sponsor to verify the funds. In addition, the Sponsor shall disclose the source of all funds for the project and its ability to finance and operate the project. Following the execution of this Agreement and upon written demand by the State, the Sponsor's financial obligation (Amount D) shall be due and payable to the State. State may request the Sponsor's financial obligation in partial payments. Should the Sponsor fail to pay said obligation, either in whole or in part, within 30 days of written demand, the State may exercise its rights under Paragraph V-7. Likewise, should the State be unwilling or unable to pay its obligation in a timely manner, the failure to pay shall be considered a breach and the Sponsor may exercise any rights and remedies it has at law or equity. PART III - Sponsor Responsibilities 1. In accepting the Agreement, the Sponsor guarantees that: a. it will comply with the Attachment A, Certification of Airport Fund, attached and 3 of 29 made a part of this agreement; and b. it will comply with the Attachment B, Certification of Project Funds, attached and made a part of this Agreement; and c. it will comply with the Attachment C, Airport Assurances (3/2005)(State Modified 3/2005), attached and made a part of this Agreement; and d. it will, in the operation of the facility, comply with all applicable state and federal laws, rules, regulations, procedures, covenants and assurances required by the State of Texas or the FAA in connection with the federal grant; and e. the Airport or navigational facility which is the subject of this Agreement shall be controlled for a period of at least 20 years, and improvements made or acquired under this project shall be operated, repaired and maintained in a safe and serviceable manner for the useful life of said improvements, not to exceed 20 years; and f. consistent with safety and security requirements, it shall make the airport or air navigational facility available to all types, kinds and classes of aeronautical use without unjust discrimination between such types, kinds and classes and shall provide adequate public access during the term of this Agreement; and g. it shall not grant or permit anyone to exercise an exclusive right for the conduct of aeronautical activity on or about an airport landing area. Aeronautical activities include, but are not limited to scheduled airline flights, charter flights, flight instruction, aircraft sales, rental and repair, sale of aviation petroleum products and aerial applications. The landing area consists of runways or landing strips, taxiways, parking aprons, roads, airport lighting and navigational aids; and h. it shall not permit non-aeronautical use of airport facilities, unless noted on an approved Airport Layout Plan, without prior approval of the State/FAA; and i. it shall not enter into any agreement nor permit any aircraft to gain direct ground access to the Sponsor's airport from private property adjacent to or in the immediate area of the airport. Further, Sponsor shall not allow aircraft direct ground access to private property. Sponsor shall be subject to this prohibition, commonly known as a "through-the-fence operation," unless an exception is granted in writing by the State due to extreme circumstances; and j. it will acquire all property interests identified as needed for the purposes of this project and comply with all applicable state and federal laws, rules, regulations, procedures, covenants and assurances required by the State of Texas or the FAA in connection with the federal grant in the acquisition of such property interests; and that airport property identified within the scope of this project and Attorney's Certificate of Airport Property Interests shall be pledged to airport use and shall not be removed from such use without prior written approval of the State; and 4 of 29 k. the Sponsor shall submit to the State annual statements of airport revenues and expenses as requested; and 1. all fees collected for the use of an airport or navigational facility constructed with funds provided under the program shall be reasonable and nondiscriminatory. The proceeds of such fees shall be used solely for the development, operation and maintenance of the Sponsor's system of airport(s) or navigational facility(ites). in. an Airport Fund shall be established by resolution, order or ordinance in the treasury of the Sponsor, or evidence of the prior creation of an existing airport fund or a properly executed copy of the resolution, order, or ordinance creating such a fund shall be submitted to the State. Such fund may be an account within another fund, but must be accounted for in such a manner that all revenues, expenses, retained earnings, and balances in the account are discernible from other types of moneys identified in the fund as a whole. All fees, charges, rents, and money from any source derived from airport operations must be deposited in said Airport Fund and shall not be diverted to the general revenue fund or any other revenue fund of the Sponsor. All expenditures from the Airport Fund shall be solely for airport or airport system purposes. Sponsor shall be ineligible for a subsequent grant or loan by the State unless, prior to such subsequent approval of a grant or loan, Sponsor has complied with the requirements of this subparagraph; and n. for federally funded projects any revenue from airport property mineral rights be identified as airport revenue; deposited to the airport fund and used for airport operations; and o. the Sponsor shall operate runway lighting at least at low intensity from sunset to sunrise; and p. insofar as it is reasonable and within its power, Sponsor shall adopt and enforce zoning regulations to restrict the height of structures and use of land adjacent to or in the immediate vicinity of the airport to heights and activities compatible with normal airport operations as provided in Tex. Loc. Govt. Code Ann. §§241.001 et seq. (Vernon and Vernon Supp.). Sponsor shall also acquire and retain aviation easements or other property interests in or rights to use of land or airspace, unless Sponsor can show that acquisition and retention of such interests will be impractical or will result in undue hardship to Sponsor. Sponsor shall be ineligible for a subsequent grant or loan by the State unless Sponsor has, prior to such subsequent approval of a grant or loan, adopted and passed an airport hazard zoning ordinance or order approved by the State; and q. it will provide upon request of the State, the engineering or planning consultant, and the FAA copies of any maps, plans, or reports of the project site, applicable to or affecting the above project; and 5 of 29 r. after reasonable notice, it will permit the State, the FAA, and any consultants and contractors associated with this project, access to the project site, and will obtain permission for the State, the FAA, and consultants and contractors associated with this project, to enter private property for purposes necessary to this project; and s. all development of an airport constructed with program funds shall be consistent with the Airport Layout Plan approved by the State and maintained by the Sponsor. A reproducible copy of such plan, and all subsequent modifications, shall be filed with the State for approval; and t. it shall take all steps, including litigation if necessary, to recover funds spent fraudulently, wastefully, or in violation of Federal antitrust statutes, or misused in any other manner in any project upon which Federal and State funds have been expended. For the purposes of this grant agreement, the term "funds" means funds, however used or disbursed by the Sponsor or Agent that were originally paid pursuant to this or any other grant agreement. It shall obtain the approval of the State as to any determination of the amount of such funds. It shall return the recovered share, including funds recovered by settlement, order or judgment, to the State. It shall furnish to the State, upon request, all documents and records pertaining to the determination of the amount of the funds or to any settlement, litigation, negotiation, or other efforts taken to recover such funds. All settlements or other final positions of the Sponsor, in court or otherwise, involving the recovery of such funds shall be approved in advance by the State. 2. The Sponsor certifies to the State that it will have acquired clear title in fee simple to all property upon which construction work is to be performed, or have acquired a leasehold on such property for a term of not less than 20 years, prior to the advertisement for bids for such construction or procurement of facilities that are part of the above project, and within the time frame of the project, a sufficient interest (easement or otherwise) in any other property which may be affected by the project. 3. The Sponsor, to the extent of its legal authority to do so, shall save harmless the State, the State's agents, employees or contractors from all claims and liability due to activities of the Sponsor, the Sponsor's agents or employees performed under this agreement. The Sponsor, to the extent of its legal authority to do so, shall also save harmless the State, the State's agents, employees or contractors from any and all expenses, including attorney fees which might be incurred by the State in litigation or otherwise resisting said claim or liabilities which might be imposed on the State as the result of such activities by the Sponsor, the Sponsor's agents or employees. 4. The Sponsor's acceptance of this Offer and ratification and adoption of the Agreement incorporated shall be evidenced by execution of this instrument by the Sponsor, as provided, and the Agreement shall comprise a contract, constituting the obligations and rights of the State of Texas and the Sponsor with respect to the accomplishment of the project and the operation and maintenance of the airport. Such Agreement shall become 6 of 29 effective upon execution of this instrument and shall remain in full force and effect for a period of at least 20 years. 5. The Sponsor and not the State shall, for all purposes, be the "Sponsor" of the project identified above as defined in Title 49 U.S.C. Sponsor agrees to assume responsibility for operation of the facility in compliance with all applicable state and federal requirements including any statutes, rules, regulations, assurances, procedures or any other directives before, during and after the completion of this project. 6. The Sponsor shall have on file with the State a current and approved Attorney's Certificate of Airport Property Interests and Exhibit A property map. 7. The Sponsor shall have on file with the State, Attachment D, Certification Regarding Drug-Free Workplace Requirements, attached and made a part of this agreement. 8. Unless otherwise approved by the State, the Sponsor will not acquire or permit any contractor or subcontractor to acquire any steel or manufactured products produced outside the United States to be used for any project for airport development or noise compatibility for which funds are provided under this grant. The sponsor will include in every contract a provision implementing this special condition. 9. Except for instrument landing systems acquired with AIP funds and later donated to and accepted by the FAA, the Sponsor must provide for the continuous operation and maintenance of any navigational aid funded under the AIP during the useful life of the equipment. The sponsor must check the facility, including instrument landing systems, prior to commissioning to ensure it meets the operational standards. The Sponsor must also remove, relocate, or lower each obstruction on the approach or provide for the adequate lighting or marking of the obstruction if any aeronautical study conducted under FAR Part 77 determines that to be acceptable; and mark and light the runway, as appropriate. The Federal Aviation Administration will not take over the ownership, operation, or maintenance of any sponsor-acquired equipment, except for instrument landing systems. 10. For a project to replace or reconstruct pavement at the airport, the Sponsor shall implement an effective airport pavement maintenance management program as is required by Airport Sponsor Assurance Number 11. The sponsor shall use such program for the useful life of any pavement constructed, reconstructed, or repaired with Federal financial assistance at the airport. As a minimum, the program must conform to the provisions in Attachment E "Pavement Maintenance Management Program", attached and made a part of this agreement. 11. The Sponsor may utilize paving specifications meeting State Highway criteria for runways at non-primary airports with lengths up to 5,000 feet and serving aircraft not exceeding 60,000 pounds gross take-off weight. The sponsor agrees not to request additional AIP funds for reconstruction or rehabilitate of pavement construct utilizing State specification for 10 years from pavement acceptance. 7 of 29 Part IV- Nomination of the Agent 1. The Sponsor designates the State as the party to apply for, receive and disburse all funds used, or to be used, in payment of the costs of the project, or in reimbursement to either of the parties for costs incurred. 2. The State agrees to assume the responsibility to assure that all aspects of the grant and project are done in compliance with all applicable state and federal requirements including any statutes, rules, regulations, assurances, procedures or any other directives, except as otherwise specifically provided. 3. The State shall, for all purposes in connection with the project identified above, be the Agent of the Sponsor. The Sponsor grants the State a power of attorney to act as its agent to perform the following services: Receiving Disbursing Agent: a. apply for, accept, receive, and deposit with the State Treasury any and all project funds granted, allowed, and paid or made available by the State and/or the United States under Title 49 U.S.C. and congressional appropriation made pursuant thereto, and the Sponsor; b. receive, review, approve and process Sponsor's reimbursement requests for approved project costs; and c. pay to the Sponsor, from granted funds, the portion of any approved reasonable and eligible project costs incurred by the Sponsor that are in excess of the Sponsor's share. Paying Agent: d. receive, review, approve and pay invoices and payment requests for services and materials supplied in accordance with State executed contracts; Contracting Agent: e. advertise for professional engineering and/or planning services for, but not limited to, the preparation of planning studies, plans and specifications for the above project and for the management of the construction of the above project; certify consultant selection procedures; provide notification of contract award for professional services; and negotiate professional services fees; and execute, on behalf of the Sponsor, a professional services agreement as related to this project; f. administer Disadvantage Business Enterprises (DBE) and/or Historically Underutilized Business (HUB) Programs in accordance with federal and state regulations. Contract Management Agent: g. exercise such supervision and direction of the project work as the State 8 of 29 reasonably finds appropriate. Where there is an irreconcilable conflict or difference of opinion, judgment, order or direction between the State and the Sponsor, any engineer, contractor, or materialman, the State shall issue a written order, which shall prevail and be controlling; h. coordinate and review project plans, specifications and construction; coordinate and conduct progress and final inspections. Construction Phase: i. authorize the advertisement, receipt and opening of bids for construction of the above project; and award contracts for construction of the above project and acquisition of materials related to it; and execute, on behalf of the Sponsor, construction contracts as related to this project; j. participate in pre-bid and pre-construction conferences; and issue orders as it deems appropriate regarding construction progress, including but not limited to Notices to Proceed, Stop Work Orders, and Change Orders; k. review, approve and maintain record drawings. PART V - Recitals 1. The State and Sponsor shall obtain an audit as required by federal or state regulations. 2. The Sponsor, and not the State, shall be the contractual party to all construction and professional service contracts entered into for the accomplishment of this project. The power of attorney, as granted by the Sponsor to the State in Part IV - Nomination of Agent, is a limited power to perform acts in connection with airport improvements as specified in or necessitated by this Agreement. 3. The Sponsor agrees to pursue and enforce contract items, which are required by federal and/or state regulations, laws and orders to insure satisfactory performance of contract vendors. Such items include, but are not limited to, bid bonds, payment bonds, and performance bonds. Pursuit and enforcement of contract items may require litigation and other remedies of law. 4. The United States and the State of Texas shall not be responsible or liable for damage to property or injury to persons, which may arise from, or be incidental to, compliance with this grant agreement. 5. This Agreement is executed for the sole benefit of the contracting parties and is not intended or executed for the direct or incidental benefit of any third party. Furthermore, the State shall not be a party to any other contract or commitment, which the Sponsor 9 of 29 may enter into or assume, or have entered into or have assumed, in regard to the above project. 6. If the Sponsor fails to comply with the conditions of the grant, the State may, by written notice to the Sponsor, suspend the grant in whole or in part. The notice of suspension shall contain the following: a. The reasons for the suspension and the corrective action necessary to lift the suspension; b. A date by which the corrective action must be taken; C. Notification that consideration will be given to terminating the grant after the corrective action date. In the case of suspension or termination, the Sponsor may request the State to reconsider the suspension or termination. Such request for reconsideration shall be made within 45 days after receipt of the notice of suspension or termination. 7. This Agreement is subject to the applicable provisions of Title 49 U.S.C., the V.T.C.A. Transportation Code, Title 3, Chapters 21- 22, et seq., (Vernon and Vernon Supp.), and the Airport Zoning Act, Tex. Loc. Govt. Code Ann. §§241.001 et seq. (Vernon and Vernon Supp.). Failure to comply with the terms of this Agreement or with the rules and statutes shall be considered a breach of this contract and will allow the State to pursue the remedies for breach as stated below. a. Of primary importance to the State is compliance with the terms and conditions of this Agreement. If, however, after all reasonable attempts to require compliance have failed, the State finds that Sponsor is unwilling and/or unable to comply with any of the terms and conditions of this Agreement, the State may pursue any of the following remedies: (1) require a refund of any money expended pursuant to the Agreement, (2) deny Sponsor's future requests for aid, (3) request the Attorney General to bring suit seeking reimbursement of any money expended on the project pursuant to the Agreement, provided however, these remedies shall not limit the State's authority to enforce its rules, regulations or orders as otherwise provided by law, (4) declare this Agreement null and void, or (5) any other remedy available at law or in equity. b. Venue for resolution by a court of competent jurisdiction of any dispute arising under the terms of this Agreement, or for enforcement of any of the provisions of this Agreement, is specifically set by Agreement of the parties in Travis County, Texas. 8. The State reserves the right to amend or withdraw this Agreement at any time prior to acceptance by the Sponsor. The acceptance period cannot be greater than 30 days after issuance unless extended by the State, which extension shall not be unreasonably denied or delayed. 10 of 29 9. This Agreement constitutes the full and total understanding of the parties concerning their rights and responsibilities in regard to this project and shall not be modified, amended, rescinded or revoked unless such modification, amendment, rescission or revocation is agreed to by both parties in writing and executed by both parties. 10. All commitments by the Sponsor and the State are subject to constitutional and statutory limitations and restrictions binding upon the Sponsor and the State (including §§5 and 7 of Article 11 of the Texas Constitution, if applicable) and to the availability of funds which lawfully may be applied. 11. The Sponsor's acceptance of this Agreement and ratification and adoption of the Airport Project Participation Agreement shall be evidenced by execution of this instrument by the Sponsor. This Offer and Acceptance shall comprise a Grant Agreement, as provided by the Title 49 U.S.C., constituting the contractual obligations and rights of the United States, the State of Texas and the Sponsor with respect to the accomplishment of the Project and compliance with the assurances and conditions as provided. 12. The state auditor may conduct an audit or investigation of any entity receiving funds from the state directly under the contract or indirectly through a subcontract under the contract. Acceptance of funds directly under the contract or indirectly through a subcontract under this contract acts as acceptance of the authority of the state auditor, under the direction of the legislative audit committee, to conduct an audit or investigation in connection with those funds. An entity that is the subject of an audit or investigation must provide the state auditor with access to any information the state auditor considers relevant to the investigation or audit. 11 of 29 Part VI - Acceptance of the Sponsor The City of Denton, Texas, does ratify and adopt all statements, representations, warranties, covenants and agreements constituting the described project and incorporated materials referred to in the foregoing Agreement, and does accept the Offer, and by such acceptance agrees to all of the terms and conditions of the Agreement. Executed is ay o , The City of Denton, Texas Sponsor Witness Signature Sponsor Signature Witness Title Sponsor Title Certification of Sponsor's Attorney I, -John M. Knight acting as attorney for __City of Denton , Texas, do certify that I have fully examined the Agreement and the proceedings taken by the Sponsor relating, and find that the manner of acceptance and execution, of the Agreement by the Sponsor, is in accordance with the laws of the State of Texas. Dated at Denton ,Texas, this 21 st day of April , 20 09 . Witness Signature Attorney Signature Administrative Assistant Witness Title 12 of 29 Part VII - Acceptance of the State Executed by and approved for the Texas Transportation Commission for the purpose and effect of activating and/or carrying out the orders, established policies or work programs and grants heretofore approved and authorized by the Texas Transportation Commission. STATE OF TEXAS TEXAS DEPARTMENT OF TRANSPORTATION By: Date: 13 of 29 ATTACHMENT A CERTIFICATION OF AIRPORT FUND The Sponsor does certify that an Airport Fund has been established for the Sponsor, and that all fees, charges, rents, and money from any source derived from airport operations will be deposited for the benefit of the Airport Fund and will not be diverted for other general revenue fund expenditures or any other special fund of the Sponsor and that all expenditures from the Fund will be solely for airport purposes. Such fund may be an account as part of another fund, but must be accounted for in such a manner that all revenues, expenses, retained earnings, and balances in the account are discernible from other types of moneys identified in the fund as a whole. The City of Denton, Texas (Sponsor) By: Title: Date: 14 of 29 ATTACHMENT B CERTIFICATION OF PROJECT FUNDS TxDOT Contract No.: 9XXAV054 TxDOT CSJ No.: 0918DNTON The Sponsor does certify that sufficient funds to meet the Sponsor's share of project cost as identified in the Airport Project Participation Agreement for said project will be available in accordance with the schedule shown below: SPONSOR FUNDS Source Amount Date Available Gas Well Revenue $425,000.00 May 8,2009 The Sponsor, has caused this to be duly executed in its name, this day of 20 The City of Denton, Texas (Sponsor) By: Title: 15 of 29 ATTACHMENT C PART V ASSURANCES Airport Sponsors (3-2005) A. General. 1. These assurances shall be complied with in the performance of grant agreements for airport development, airport planning, and noise compatibility program grants for airport sponsors. 2. These assurances are required to be submitted as part of the project Airport Project Participation Agreement (hereinafter referred to as "APPA") by sponsors requesting funds under the provisions of Title 49, U.S.C., subtitle VII, as amended. As used herein, the term "public agency sponsor" means a public agency with control of a public-use airport; the term "private sponsor" means a private owner of a public-use airport; and the term "sponsor" includes both public agency sponsors and private sponsors. 3. Upon acceptance of the grant offer by the sponsor, these assurances are incorporated in and become part of the grant agreement. B. Duration and Applicability. 1. Airport development or Noise Compatibility Program Projects Undertaken by a Public Agency Sponsor. The terms, conditions and assurances of the grant agreement shall remain in full force and effect throughout the useful life of the facilities developed or equipment acquired for an airport development or noise compatibility program project, or throughout the useful life of the project items installed within a facility under a noise compatibility program project, but in any event not to exceed twenty (20) years from the date of acceptance of a grant offer of Federal funds for the project. However, there shall be no limit on the duration of the assurances regarding Exclusive Rights and Airport Revenue so long as the airport is used as an airport. There shall be no limit on the duration of the terms, conditions, and assurances with respect to real property acquired with federal funds. Furthermore, the duration of the Civil Rights assurance shall be specified in the assurances. 2. Airport Development or Noise Compatibility Projects Undertaken by a Private Sponsor. The preceding paragraph 1 also applies to a private sponsor except that the useful life of project items installed within a facility or the useful life of the facilities developed or equipment acquired under an airport development or noise compatibility program project shall be no less than ten (10) years from the date of acceptance of Federal aid for the project. 3. Airport Planning Undertaken by a Sponsor. Unless otherwise specified in the grant agreement, only Assurances 1, 2, 3, 5, 6, 13, 18, 30, 32, 33, and 34 in section C apply to planning projects. The terms, conditions, and assurances of the grant agreement shall remain in full force and effect during the life of the project. C. Sponsor Certification. The sponsor hereby assures and certifies, with respect to this grant that: 1. General Federal Requirements. It will comply with all applicable Federal laws, regulations, executive orders, policies, guidelines, and requirements as they relate to the application, acceptance and use of Federal funds for this project including but not limited to the following: Federal Legislation a. Title 49, U.S.C., subtitle VII, as amended. b. Davis-Bacon Act - 40 U.S.C. 276(a), et sea.' C. Federal Fair Labor Standards Act - 29 U.S.C. 201, et sea. d. Hatch Act- 5 U.S.C. 1501, et sea? C. Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 Title 42 U.S.C. 4601, et 5.M12 f. National Historic Preservation Act of 1966 - Section 106 - 16 U.S.C. 470(f).1 g. Archeological and Historic Preservation Act of 1974 - 16 U.S.C. 469 through 469c.' h. Native Americans Grave Repatriation Act - 25 U.S.C. Section 3001, et sea. i. Clean Air Act, P.L. 90-148, as amended. j. Coastal Zone Management Act, P.L. 93-205, as amended. k. Flood Disaster Protection Act of 1973 - Section 102(a) - 42 U.S.C. 4012a.' 1. Title 49 ,U.S.C., Section 303, (formerly known as Section 4(f)) in. Rehabilitation Act of 1973 - 29 U.S.C. 794. n. Civil Rights Act of 1964 - Title VI - 42 U.S.C. 2000d through d-4. o. Age Discrimination Act of 1975 - 42 U.S.C. 6101, et sea. P. American Indian Religious Freedom Act, P.L. 95-341, as amended. q. Architectural Barriers Act of 1968 -42 U.S.C. 4151, et seal r. Power plant and Industrial Fuel Use Act of 1978 - Section 403- 2 U.S.C. 8373.' S. Contract Work Hours and Safety Standards Act - 40 U.S.C. 327, et sea.' t. Copeland Anti kickback Act - 18 U.S.C. 874.1 U. National Environmental Policy Act of 1969 - 42 U.S.C. 4321, et sea.' V. Wild and Scenic Rivers Act, P.L. 90-542, as amended. W. Single Audit Act of 1984 - 31 U.S.C. 7501, ea2 16 of 29 X. Drug-Free Workplace Act of 1988 - 41 U.S.C. 702 through 706. Executive Orders Executive Order 11246 - Equal Employment Opportunity' Executive Order 11990 - Protection of Wetlands Executive Order 11998 - Flood Plain Management Executive Order 12372 - Intergovernmental Review of Federal Programs. Executive Order 12699 - Seismic Safety of Federal and Federally Assisted New Building Construction' Executive Order 12898 - Environmental Justice Federal Regulations a. 14 CFR Part 13 - Investigative and Enforcement Procedures. b. 14 CFR Part 16 - Rules of Practice For Federally Assisted Airport Enforcement Proceedings. C. 14 CFR Part 150 - Airport noise compatibility planning. d. 29 CFR Part 1 - Procedures for predetermination of wage rates.' e. 29 CFR Part 3 - Contractors and subcontractors on public building or public work financed in whole or part by loans or grants from the United States.' f. 29 CFR Part 5 - Labor standards provisions applicable to contracts covering federally financed and assisted construction (also labor standards provisions applicable to non-construction contracts subject to the Contract Work Hours and Safety Standards Act).' g. 41 CFR Part 60 - Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor (Federal and federally assisted contracting requirements).' h. 49 CFR Part 18 - Uniform administrative requirements for grants and cooperative agreements to state and local governments.3 i. 49 CFR Part 20 - New restrictions on lobbying. j. 49 CFR Part 21 - Nondiscrimination in federally-assisted programs of the Department of Transportation - effectuation of Title VI of the Civil Rights Act of 1964. k. 49 CFR Part 23 - Participation by Disadvantage Business Enterprise in Airport Concessions. 1. 49 CFR Part 24 - Uniform relocation assistance and real property acquisition for Federal and federally assisted programs.' 2 I'll. 49 CFR Part 26 - Participation By Disadvantaged Business Enterprises in Department of Transportation Programs. n. 49 CFR Part 27 - Nondiscrimination on the basis of handicap in programs and activities receiving or benefiting from Federal financial assistance.I o. 49 CFR Part 29 - Government wide debarment and suspension (nonprocurement) and government wide requirements for drug-free workplace (grants). P_ 49 CFR Part 30 - Denial of public works contracts to suppliers of goods and services of countries that deny procurement market access to U.S. contractors. q. 49 CFR Part 41 - Seismic safety of Federal and federally assisted or regulated new building construction.I Office of Management and Budget Circulars a. A-87 - Cost Principles Applicable to Grants and Contracts with State and Local Governments. b A-133 -Audits of States, Local Governments, and Non-Profit Organizations 1 These laws do not apply to airport planning sponsors. 2 These laws do not apply to private sponsors. 7 49 CFR Part 18 and OMB Circular A-87 contain requirements for State and Local Governments receiving Federal assistance. Any requirement levied upon State and Local Governments by this regulation and circular shall also be applicable to private sponsors receiving Federal assistance under Title 49, United States Code. Specific assurances required to be included in grant agreements by any of the above laws, regulations or circulars are incorporated by reference in the grant agreement. 2. Responsibility and Authority of the Sponsor. a. Public Agency Sponsor: It has legal authority to apply for the grant, and to finance and carry out the proposed project; that a resolution, motion or similar action has been duly adopted or passed as an official act of the applicant's governing body authorizing the filing of the application, including all understandings and assurances contained therein, and directing and authorizing the person identified as the official representative of the applicant to act in connection with the application and to provide such additional information as may be required. b. Private Sponsor: It has legal authority to apply for the grant and to finance and carry out the proposed project and comply with all terms, conditions, and assurances of this grant agreement. It shall designate an official representative and shall in writing direct and authorize that person to file this application, including all understandings and assurances contained therein; to act in connection with this application; and to provide such additional information as may be required. 3. Sponsor Fund Availability. It has sufficient funds available for that portion of the project costs which are not to be paid by the United States. It has sufficient funds available to assure operation and maintenance of items funded under the grant agreement which it will own or control. 4. Good Title. 17 of 29 a. It, a public agency or the Federal government, holds good title, satisfactory to the Secretary, to the landing area of the airport or site thereof, or will give assurance satisfactory to the Secretary that good title will be acquired. b. For noise compatibility program projects to be carried out on the property of the sponsor, it holds good title satisfactory to the Secretary to that portion of the property upon which Federal funds will be expended or will give assurance to the Secretary that good title will be obtained. 5. Preserving Rights and Powers. a. It will not take or permit any action which would operate to deprive it of any of the rights and powers necessary to perform any or all of the terms, conditions, and assurances in the grant agreement without the written approval of the Secretary, and will act promptly to acquire, extinguish or modify any outstanding rights or claims of right of others which would interfere with such performance by the sponsor. This shall be done in a manner acceptable to the Secretary. b. It will not sell, lease, encumber, or otherwise transfer or dispose of any part of its title or other interests in the property shown on Exhibit A to this application or, for a noise compatibility program project, that portion of the property upon which Federal funds have been expended, for the duration of the terms, conditions, and assurances in the grant agreement without approval by the Secretary. If the transferee is found by the Secretary to be eligible under Title 49, United States Code, to assume the obligations of the grant agreement and to have the power, authority, and financial resources to carry out all such obligations, the sponsor shall insert in the contract or document transferring or disposing of the sponsor's interest, and make binding upon the transferee all of the terms, conditions, and assurances contained in this grant agreement. C. For all noise compatibility program projects which are to be carried out by another unit of local government or are on property owned by a unit of local government other than the sponsor, it will enter into an agreement with that government. Except as otherwise specified by the Secretary, that agreement shall obligate that government to the same terms, conditions, and assurances that would be applicable to it if it applied directly to the FAA for a grant to undertake the noise compatibility program project. That agreement and changes thereto must be satisfactory to the Secretary. It will take steps to enforce this agreement against the local government if there is substantial non-compliance with the terms of the agreement. d. For noise compatibility program projects to be carried out on privately owned property, it will enter into an agreement with the owner of that property which includes provisions specified by the Secretary. It will take steps to enforce this agreement against the property owner whenever there is substantial non-compliance with the terms of the agreement. e. If the sponsor is a private sponsor, it will take steps satisfactory to the Secretary to ensure that the airport will continue to function as a public-use airport in accordance with these assurances for the duration of these assurances. f. If an arrangement is made for management and operation of the airport by any agency or person other than the sponsor or an employee of the sponsor, the sponsor will reserve sufficient rights and authority to insure that the airport will be operated and maintained in accordance Title 49, United States Code, the regulations and the terms, conditions and assurances in the grant agreement and shall insure that such arrangement also requires compliance therewith. 6. Consistency with Local Plans. The project is reasonably consistent with plans (existing at the time of submission of this application) of public agencies that are authorized by the State in which the project is located to plan for the development of the area surrounding the airport. 7. Consideration of Local Interest. It has given fair consideration to the interest of communities in or near where the project may be located. 8. Consultation with Users. In making a decision to undertake any airport development project under Title 49, United States Code, it has undertaken reasonable consultations with affected parties using the airport at which project is proposed. 9. Public Hearings. In projects involving the location of an airport, an ail-port runway, or a major runway extension, it has afforded the opportunity for public hearings for the purpose of considering the econornic, social, and environmental effects of the airport or runway location and its consistency with goals and objectives of such planning as has been carried out by the community and it shall, when requested by the Secretary, submit a copy of the transcript of such hearings to the Secretary. Further, for such projects, it has on its management board either voting representation from the communities where the project is located or has advised the communities that they have the right to petition the Secretary concerning a proposed project. 10. Air and Water Quality Standards. In projects involving airport location, a major runway extension, or runway location it will provide for the Governor of the state in which the project is located to certify in writing to the Secretary that the project will be located, designed, constructed, and operated so as to comply with applicable air and water quality standards. In any case where such standards have not been approved and where applicable air and water quality standards have been promulgated by the Administrator of the Environmental Protection Agency, certification shall be obtained from such Administrator. Notice of certification or refusal to certify shall be provided within sixty days after the project application has been received by the Secretary. 11. Pavement Preventive Maintenance. With respect to a project approved after January 1, 1995, for the replacement or reconstruction of pavement at the airport, it assures or certifies that it has implemented an effective airport pavement maintenance-management program and it assures that it will use such program for the useful life of any pavement constructed, reconstructed or repaired with Federal 18 of 29 financial assistance at the airport. It will provide such reports on pavement condition and pavement management programs as the Secretary determines may be useful. 12. Terminal Development Prerequisites. For projects which include terminal development at a public use airport, as defined in Title 49, it has, on the date of submittal of the project grant application, all the safety equipment required for certification of such airport under section 44706 of Title 49, United States Code, and all the security equipment required by rule or regulation, and has provided for access to the passenger enplaning and deplaning area of such airport to passengers enplaning and deplaning from aircraft other than air cattier aircraft. 13. Accounting System, Audit, and Record Keeping Requirements. a. It shall keep all project accounts and records which fully disclose the amount and disposition by the recipient of the proceeds of the grant, the total cost of the project in connection with which the grant is given or used, and the amount or nature of that portion of the cost of the project supplied by other sources, and such other financial records pertinent to the project. The accounts and records shall be kept in accordance with an accounting system that will facilitate an effective audit in accordance with the Single Audit Act of 1984. b. It shall make available to the Secretary and the Comptroller General of the United States, or any of their duly authorized representatives, for the purpose of audit and examination, any books, documents, papers, and records of the recipient that are pertinent to the grant. The Secretary may require that an appropriate audit be conducted by a recipient. In any case in which an independent audit is made of the accounts of a sponsor relating to the disposition of the proceeds of a grant or relating to the project in connection with which the grant was given or used, it shall file a certified copy of such audit with tre Comptroller General of the United States not later than six (6) months following the close of the fiscal year for which the audit was made. 14. Minimum Wage Rates. It shall include, in all contracts in excess of $2,000 for work on any projects funded under the grant agreement which involve labor, provisions establishing minimum rates of wages, to be predetermined by the Secretary of Labor, in accordance with the Davis-Bacon Act, as amended (40 U.S.C. 276a-276a-5), which contractors shall pay to skilled and unskilled labor, and such minimum rates shall be stated in the invitation for bids and shall be included in proposals or bids for the work. 15. Veteran's Preference. It shall include in all contracts for work on any project funded under the grant agreement which involve labor, such provisions as are necessary to insure that, in the employment of labor (except in executive, administrative, and supervisory positions), preference shall be given to Veterans of the Vietnam era and disabled veterans as defined in Section 47112 of Title 49, United States Code. However, this preference shall apply only where the individuals are available and qualified to perform the work to which the employment relates. 16. Conformity to Plans and Specifications. It will execute the project subject to plans, specifications, and schedules approved by the Secretary. Such plans, specifications, and schedules shall be submitted to the Secretary prior to commencement of site preparation, construction, or other performance under this grant agreement, and, upon approval of the Secretary, shall be incorporated into this grant agreement. Any modification to the approved plans, specifications, and schedules shall also be subject to approval of the Secretary, and incorporated into the grant agreement. 17. Construction Inspection and Approval. It will provide and maintain competent technical supervision at the construction site throughout the project to assure that the work conforms to the plans, specifications, and schedules approved by the Secretary for the project. It shall subject the construction work on any project contained in an approved project application to inspection and approval by the Secretary and such work shall be in accordance with regulations and procedures prescribed by the Secretary. Such regulations and procedures shall require such cost and progress reporting by the sponsor or sponsors of such project as the Secretary shall deem necessary. 18. Planning Projects. In carrying out planning projects: a. It will execute the project in accordance with the approved program narrative contained in the project application or with the modifications similarly approved. b. It will furnish the Secretary with such periodic reports as required pertaining to the planning project and planning work activities. C. It will include in all published material prepared in connection with the planning project a notice that the material was prepared under a grant provided by the United States. d. It will make such material available for examination by the public, and agrees that no material prepared with funds under this project shall be subject to copyright in the United States or any other country. e. It will give the Secretary unrestricted authority to publish, disclose, distribute, and otherwise use any of the material prepared in connection with this grant. f. It will grant the Secretary the right to disapprove the sponsor's employment of specific consultants and their subcontractors to do all or any part of this project as well as the right to disapprove the proposed scope and cost of professional services. g. It will grant the Secretary the right to disapprove the use of the sponsor's employees to do all or any part of the project. 19 of 29 h. It understands and agrees that the Secretary's approval of this project grant or the Secretary's approval of any planning material developed as part of this grant does not constitute or imply any assurance or commitment on the part of the Secretary to approve any pending or future application for a Federal airport grant. 19. Operation and Maintenance. a. The airport and all facilities which are necessary to serve the aeronautical users of the airport, other than facilities owned or controlled by the United States, shall be operated at all times in a safe and serviceable condition and in accordance with the minimum standards as may be required or prescribed by applicable Federal, state and local agencies for maintenance and operation. It will not cause or permit any activity or action thereon which would interfere with its use for airport purposes. It will suitably operate and maintain the airport and all facilities thereon or connected therewith, with due regard to climatic and flood conditions. Any proposal to temporarily close the airport for non-aeronautical purposes must first be approved by the Secretary. In furtherance of this assurance, the sponsor will have in effect arrangements for- (1) Operating the airport's aeronautical facilities whenever required; (2) Promptly marking and lighting hazards resulting from airport conditions, including temporary conditions; and (3) Promptly notifying airmen of any condition affecting aeronautical use of the airport. Nothing contained herein shall be construed to require that the airport be operated for aeronautical use during temporary periods when snow, flood or other climatic conditions interfere with such operation and maintenance. Further, nothing herein shall be construed as requiring the maintenance, repair, restoration, or replacement of any structure or facility which is substantially damaged or destroyed due to an act of God or other condition or circumstance beyond the control of the sponsor. b. It will suitably operate and maintain noise compatibility program items that it owns or controls upon which Federal funds have been expended. 20. Hazard Removal and Mitigation. It will take appropriate action to assure that such terminal airspace as is required to protect instrument and visual operations to the airport (including established minimum flight altitudes) will be adequately cleared and protected by removing, lowering, relocating, marking, or lighting or otherwise mitigating existing airport hazards and by preventing the establishment or creation of future airport hazards. 21. Compatible Land Use. It will take appropriate action, to the extent reasonable, including the adoption of zoning laws, to restrict the use of land adjacent to or in the immediate vicinity of the airport to activities and purposes compatible with normal airport operations, including landing and takeoff of aircraft. In addition, if the project is for noise compatibility program implementation, it will not cause or permit any change in land use, within its jurisdiction, that will reduce its compatibility, with respect to the airport, of the noise compatibility program measures upon which Federal funds have been expended. 22. Economic Nondiscrimination. a. It will make the airport available as an airport for public use on reasonable terms and without unjust discrimination to all types, kinds and classes of aeronautical activities, including commercial aeronautical activities offering services to the public at the airport. b. In any agreement, contract, lease, or other arrangement under which a right or privilege at the airport is granted to any person, firm, or corporation to conduct or to engage in any aeronautical activity for furnishing services to the public at the airport, the sponsor will insert and enforce provisions requiring the contractor to- (1) furnish said services on a reasonable, and not unjustly discriminatory, basis to all users thereof, and (2) charge reasonable, and not unjustly discriminatory, prices for each unit or service, provided that the contractor may be allowed to make reasonable and nondiscriminatory discounts, rebates, or other similar types of price reductions to volume purchasers. C. Each fixed-based operator at the airport shall be subject to the same rates, fees, rentals, and other charges as are uniformly applicable to all other fixed-based operators making the same or similar uses of such airport and utilizing the same or similar facilities. d. Each air carrier using such airport shall have the right to service itself or to use any fixed-based operator that is authorized or permitted by the ail-port to serve any air carrier at such airport. e. Each air carrier using such airport (whether as a tenant, non tenant, or subtenant of another air carrier tenant) shall be subject to such nondiscriminatory and substantially comparable rules, regulations, conditions, rates, fees, rentals, and other charges with respect to facilities directly and substantially related to providing air transportation as are applicable to all such air carriers which make similar use of such airport and utilize similar facilities, subject to reasonable classifications such as tenants or non tenants and signatory carriers and non signatory carriers. Classification or status as tenant or signatory shall not be unreasonably withheld by any airport provided an air carrier assumes obligations substantially similar to those already imposed on air carriers in such classification or status. f. It will not exercise or grant any right or privilege which operates to prevent any person, firm, or corporation operating aircraft on the airport from performing any services on its own aircraft with its own employees [including, but not limited to maintenance, repair, and fueling] that it may choose to perform. 20 of 29 g. In the event the sponsor itself exercises any of the rights and privileges referred to in this assurance, the services involved will be provided on the same conditions as would apply to the furnishing of such services by commercial aeronautical service providers authorized by the sponsor under these provisions. h. The sponsor may establish such reasonable, and not unjustly discriminatory, conditions to be met by all users of the airport as may be necessary for the safe and efficient operation of the airport. i. The sponsor may prohibit or limit any given type, kind or class of aeronautical use of the airport if such action is necessary for the safe operation of the airport or necessary to serve the civil aviation needs of the public. 23. Exclusive Rights. It will permit no exclusive right for the use of the airport by any person providing, or intending to provide, aeronautical services to the public. For purposes of this paragraph, the providing of the services at an airport by a single fixed-based operator shall not be construed as an exclusive right if both of the following apply: a. It would be unreasonably costly, burdensome, or impractical for more than one fixed-based operator to provide such services, and b. If allowing more than one fixed-based operator to provide such services would require the reduction of space leased pursuant to an existing agreement between such single fixed-based operator and such airport. It further agrees that it will not, either directly or indirectly, grant or permit any person, firm, or corporation, the exclusive right at the airport to conduct any aeronautical activities, including, but not limited to charter flights, pilot training, aircraft rental and sightseeing, aerial photography, crop dusting, aerial advertising and surveying, air carrier operations, aircraft sales and services, sale of aviation petroleum products whether or not conducted in conjunction with other aeronautical activity, repair and maintenance of aircraft, sale of aircraft parts, and any other activities which because of their direct relationship to the operation of aircraft can be regarded as an aeronautical activity, and that it will terminate any exclusive right to conduct an aeronautical activity now existing at such an airport before the grant of any assistance under Title 49, United States Code. 24. Fee and Rental Structure. It will maintain a fee and rental structure for the facilities and services at the airport which will make the airport as self-sustaining as possible under the circumstances existing at the particular airport, taking into account such factors as the volume of traffic and economy of collection. No part of the Federal share of an airport development, airport planning or noise compatibility project for which a grant is made under Title 49, United States Code, the Airport and Airway Improvement Act of 1982, the Federal Airport Act or the Airport and Airway Development Act of 1970 shall be included in the rate basis in establishing fees, rates, and charges for users of that airport. 25. Airport Revenues. a. All revenues generated by the airport and any local taxes on aviation fuel established after December 30, 1987, will be expended by it for the capital or operating costs of the airport; the local airport system; or other local facilities which are owned or operated by the owner or operator of the airport and which are directly and substantially related to the actual air transportation of passengers or property; or for noise mitigation purposes on or off the airport. Provided, however, that if covenants or assurances in debt obligations issued before September 3, 1982, by the owner or operator of the airport, or provisions enacted before September 3, 1982, in governing statutes controlling the owner or operator's financing, provide for the use of the revenues from any of the airport owner or operator's facilities, including the airport, to support not only the airport but also the airport owner or operator's general debt obligations or other facilities, then this limitation on the use of all revenues generated by the airport (and, in the case of a public airport, local taxes on aviation fuel) shall not apply. b. As part of the annual audit required under the Single Audit Act of 1984, the sponsor will direct that the audit will review, and the resulting audit report will provide an opinion concerning, the use of airport revenue and taxes in paragraph (a), and indicating whether funds paid or transferred to the owner or operator are paid or transferred in a manner consistent with Title 49, United States Code and any other applicable provision of law, including any regulation promulgated by the Secretary or Administrator. C. Any civil penalties or other sanctions will he imposed for violation of this assurance in accordance with the provisions of Section 47107 of Title 49, United States Code. 26. Reports and Inspections. It will: a. submit to the Secretary such annual or special financial and operations reports as the Secretary may reasonably request and make such reports available to the public; make available to the public at reasonable times and places a report of the airport budget in a format prescribed by the Secretary; b. for airport development projects, make the airport and all airport records and documents affecting the airport, including deeds, leases, operation and use agreements, regulations and other instruments, available for inspection by any duly authorized agent of the Secretary upon reasonable request; C. for noise compatibility program projects, make records and documents relating to the project and continued compliance with the terms, conditions, and assurances of the grant agreement including deeds, leases, agreements, regulations, and other instruments, available for inspection by any duly authorized agent of the Secretary upon reasonable request; and d. in a format and time prescribed by the Secretary, provide to the Secretary and make available to the public following each of its fiscal years, an annual report listing in detail: 21 of 29 (i) all amounts paid by the airport to any other unit of government and the purposes for which each such payment was made; and (ii) all services and property provided by the airport to other units of government and the amount of compensation received for provision of each such service and property. 27. Use by Government Aircraft. It will make available all of the facilities of the airport developed with Federal financial assistance and all those usable for landing and takeoff of aircraft to the United States for use by Government aircraft in common with other aircraft at all times without charge, except, if the use by Government aircraft is substantial, charge may be made for a reasonable share, proportional to such use, for the cost of operating and maintaining the facilities used. Unless otherwise determined by the Secretary, or otherwise agreed to by the sponsor and the using agency, substantial use of an airport by Government aircraft will be considered to exist when operations of such aircraft are in excess of those which, in the opinion of the Secretary, would unduly interfere with use of the landing areas by other authorized aircraft, or during any calendar month that - a. Five (5) or more Government aircraft are regularly based at the airport or on land adjacent thereto; or b. The total number of movements (counting each landing as a movement) of Government aircraft is 300 or more, or the gross accumulative weight of Government aircraft using the airport (the total movement of Government aircraft multiplied by gross weights of such aircraft) is in excess of five million pounds. 28. Land for Federal Facilities. It will furnish without cost to the Federal Government for use in connection with any air traffic control or air navigation activities, or weather-reporting and communication activities related to air traffic control, any areas of land or water, or estate therein, or rights in buildings of the sponsor as the Secretary considers necessary or desirable for construction, operation, and maintenance at Federal expense of space or facilities for such purposes. Such areas or any portion thereof will be made available as provided herein within four months after receipt of a written request from the Secretary. 29. Airport Layout Plan. a. It will keep up to date at all times an airport layout plan of the airport showing (1) boundaries of the airport and all proposed additions thereto, together with the boundaries of all offsite areas owned or controlled by the sponsor for airport purposes and proposed additions thereto; (2) the location and nature of all existing and proposed airport facilities and structures (such as runways, taxiways, aprons, terminal buildings, hangars and roads), including all proposed extensions and reductions of existing airport facilities; and (3) the location of all existing and proposed nonaviation areas and of all existing improvements thereon. Such airport layout plans and each amendment, revision, or modification thereof, shall be subject to the approval of the Secretary which approval shall be evidenced by the signature of a duly authorized representative of the Secretary on the face of the airport layout plan. The sponsor will not make or permit any changes or alterations in the airport or any of its facilities which are not in conformity with the airport layout plan as approved by the Secretary and which might, in the opinion of the Secretary, adversely affect the safety, utility or efficiency of the airport. b. If a change or alteration in the airport or the facilities is made which the Secretary determines adversely affects the safety, utility, or efficiency of any federally owned, leased, or funded property on or off the airport and which is not in conformity with the airport layout plan as approved by the Secretary, the owner or operator will, if requested, by the Secretary (1) eliminate such adverse effect in a manner approved by the Secretary; or (2) bear all costs of relocating such property (or replacement thereof) to a site acceptable to the Secretary and all costs of restoring such property (or replacement thereof) to the level of safety, utility, efficiency, and cost of operation existing before the unapproved change in the airport or its facilities. 30. Civil Rights. It will comply with such rules as are promulgated to assure that no person shall, on the grounds of race, creed, color, national origin, sex, age, or handicap be excluded from participating in any activity conducted with or benefiting from funds received from this grant. This assurance obligates the sponsor for the period during which Federal financial assistance is extended to the program, except where Federal financial assistance is to provide, or is in the form of personal property or real property or interest therein or structures or improvements thereon in which case the assurance obligates the sponsor or any transferee for the longer of the following periods: (a) the period during which the property is used for a purpose for which Federal financial assistance is extended, or for another purpose involving the provision of similar services or benefits, or (b) the period during which the sponsor retains ownership or possession of the property. 31. Disposal of Land. a. For land purchased under a grant for airport noise compatibility purposes, it will dispose of the land, when the land is no longer needed for such purposes, at fair market value, at the earliest practicable time. That portion of the proceeds of such disposition which is proportionate to the United States' share of acquisition of such land will, at the discretion of the Secretary, (1) be paid to the Secretary for deposit in the Trust Fund, or (2) be reinvested in an approved noise compatibility project as prescribed by the Secretary, including the purchase of nonresidential buildings or property in the vicinity of residential buildings or property previously purchased by the airport as part of a noise compatibility program. b. For land purchased under a grant for airport development purposes (other than noise compatibility), it will, when the land is no longer needed for airport purposes, dispose of such land at fair market value or make available to the Secretary an amount equal to the United States' proportionate share of the fair market value of the land. That portion of the proceeds of such disposition which is proportionate to the United States' share of the cost of acquisition of such land will, (1) upon application to the Secretary, be reinvested in another eligible airport improvement project or projects approved by the Secretary at that airport or within the national airport system, or (2) be paid to the Secretary for deposit in the Trust Fund if no eligible project exists. 22 of 29 C. Land shall be considered to be needed for airport purposes under this assurance if (1) it may be needed for aeronautical proposes (including runway protection zones) or serve as noise buffer land, and (2) the revenue from interim uses of such land contributes to the financial self-sufficiency of the airport. Further, land purchased with a grant received by an airport operator or owner before December 31, 1987, will be considered to be needed for airport purposes if the Secretary or Federal agency making such grant before December 31, 1987, was notified by the operator or owner of the uses of such land, did not object to such use, and the land continues to be used for that purpose, such use having commenced no later than December 15, 1989. d. Disposition of such land under (a) (b) or (c) will be subject to the retention or reservation of any interest or right therein necessary to ensure that such land will only be used for purposes which are compatible with noise levels associated with operation of the airport. 32. Engineering and Design Services. It will award each contract, or sub-contract for program management, construction management, planning studies, feasibility studies, architectural services, preliminary engineering, design, engineering, surveying, mapping or related services with respect to the project in the same manner as a contract for architectural and engineering services is negotiated under Title IX of the Federal Property and Administrative Services Act of 1949 or an equivalent qualifications-based requirement prescribed for or by the sponsor of the airport. 33. Foreign Market Restrictions. It will not allow funds provided under this grant to be used to fund any project which uses any product or service of a foreign country during the period in which such foreign country is listed by the United States Trade Representative as denying fair and equitable market opportunities for products and suppliers of the United States in procurement and construction. 34. Policies, Standards, and Specifications. It will carry out the project in accordance with policies, standards, and specifications approved by the Secretary including but not limited to the advisory circulars listed in the Current FAA Advisory Circulars for AIP projects, dated and included in this grant, and in accordance with applicable state policies, standards, and specifications approved by the Secretary. 35. Relocation and Real Property Acquisition. (1) It will be guided in acquiring real property, to the greatest extent practicable under State law, by the land acquisition policies in Subpart B of 49 CFR Part 24 and will pay or reimburse property owners for necessary expenses as specified in Subpart B. (2) It will provide a relocation assistance program offering the services described in Subpart C and fair and reasonable relocation payments and assistance to displaced persons as required in Subpart D and E of 49 CFR Part 24. (3) It will make available within a reasonable period of time prior to displacement, comparable replacement dwellings to displaced persons in accordance with Subpart E of 49 CFR Part 24. 36. Access By Intercity Buses. The airport owner or operator will permit, to the maximum extent practicable, intercity buses or other rnodes of transportation to have access to the airport, however, it has no obligation to find special facilities for intercity buses or for othermodes of transportation. 37. Disadvantaged Business Enterprises. The recipient shall not discriminate on the basis of race, color, national origin or sex in the award and performance of any DOT-assisted contract or in the administration of its DBE program or the requirements of 49 CFR Part 26. The Recipient shall take all necessary and reasonable steps under 49 CFR Part 26 to ensure non discrimination in the award and administration of DOT-assisted contracts. The recipient's DBE program, as required by 49 CFR Part 26, and as approved by DOT, is incorporated by reference in this agreement. Implementation of this program is a legal obligation and failure to carry out its terms shall be treated as a violation of this agreement. Upon notification to the recipient of its failure to cant' out its approved program, the Department may impose sanctions as provided for under Part 26 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and/or the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801). 38. Hangar Construction. If the airport owner or operator and a person who owns an aircraft agree that a hangar is to be constructed at the airport for the aircraft at the aircraft owner's expense, the airport owner or operator will grant to the aircraft owner for the hangar a long term lease that is subject to such terms and conditions on the hangar as the airport owner or operator may impose. 39. Competitive Access. a. If the airport owner or operator of a medium or large hub airport (as defined in section 47102 of title 49, U.S.C.) has been unable to accommodate one or more requests by an air carrier for access to gates or other facilities at that airport in order to allow the air carrier to provide service to the airport or to expand service at the airport, the airport owner or operator shall transmit a report to the Secretary that- 1. Describes the requests; 2. Provides an explanation as to why the requests could not be accommodated; and 3. Provides a time frame within which, if any, the airport will be able to accommodate the requests. b. Such report shall be due on either February 1 or August 1 of each year if the airport has been unable to accormodate the request(s) in the six month period prior to the applicable due date. 23 of 29 CURRENT FAA ADVISORY CIRCULARS REQUIRED FOR USE IN AIP FUNDED AND PFC APPROVED PROJECTS Dated: 3/21/2007 View the most current versions of these ACs and any associated changes at, http://www.faa.gov/airports airtraffic/airports/resources/advisory circulars/. NUMBER TITLE 70/7460-1 K* Obstruction Marking and Lighting 150/5000-13 Announcement of Availability--RTCA Inc., Document RTCA-221, Guidance and Recommended Requirements for Airport Surface Movement Sensors 150/5020-1 Noise Control and Compatibility Planning for Airports 150/5070-6B Airport Master Plans 150/5070-7 The Airport System Planning Process 150/5200-28C Notices to Airmen (NOTAMS) for Airport Operators 150/5200-30A Airport Winter Safety and Operations and Changes 1 through 8 150/5200-33A Hazardous Wildlife Attractants On or Near Airports 150/5210-58 Painting, Marking and Lighting of Vehicles Used on an Airport 150/5210-7C Aircraft Fire and Rescue Communications 150/5210-13B Water Rescue Plans, Facilities, and Equipment 150/5210-14A Airport Fire and Rescue Personnel Protective Clothing 150/5210-15 Airport Rescue & Firefighting Station Building Design 150/5210-18 Systems for Interactive Training of Airport Personnel 150/5210-19 Driver's Enhanced Vision System (DEVS) 150/5220-413 Water Supply Systems for Aircraft Fire and Rescue Protection 150/5220-10C Guide Specification for Water/Foam Type Aircraft Rescue and Firefighting Vehicles 150/5220-13B Runway Surface Condition Sensor Specification Guide 150/5220-16C Automated Weather Observing Systems for Non-Federal Applications 150/5220-17A Design Standards for Aircraft Rescue Firefighting Training Facilities and Change 1 150/5220-18 Buildings for Storage and Maintenance of Airport Snow and Ice Control Equipment and Materials 150/5220-19 Guide Specification for Small, Dual-Agent Aircraft Rescue and Firefighting Vehicles 150/5220-20 and Airport Snow and Ice Control Equipment Change l 150/5220-21 B Guide Specification for Lifts Used to Board Airline Passengers With Mobility Impairments 24 of 29 NUMBER TITLE 150/5220-22A Engineered Materials Arresting Systems (EMAS) for Aircraft Overruns 150/5300-13 and Airport Design Changes1 through 10 150/5300-14 and Design of Aircraft Deicing Facilities Changes1 through 2 150/5300-16 General Guidance and Specifications for Aeronautical Surveys: Establishment of Geodetic Control and Submission to the National Geodetic Survey 150/5300-17 General Guidance and Specifications for Aeronautical Survey Airport Imagery Acquisition and Submission to the National Geodetic Survey 150/5300-18 General Guidance and Specifications for Submission of Aeronautical Surveys to NGS: Field Data Collection and Geographic Information System (GIS) Standards 150/5320-513 Airport Drainage 150/5320-6D and Airport Pavement Design and Evaluation Changes1 through 4 150/5320-12C Measurement, Construction, and Maintenance of Skid Resistant Airport and Changes 1 Pavement Surfaces through 8 150/5320-14 Airport Landscaping for Noise Control Purposes 150/5320-15 and Management of Airport Industrial Waste Change l 150/5325-413 Runway Length Requirements for Airport Design 150/5335-5A Standardized Method of Reporting Pavement Strength PCN 150/5340-1J Standards for Airport Markings 150/5340-513 and Segmented Circle Airport Marker System Change 1 150/5340-18D Standards for Airport Sign Systems 150/5340-30B Design and Installation Details for Airport Visual Aids 150/5345-3E Specification for L821 Panels for Control of Airport Lighting 150/5345-513 Circuit Selector Switch 150/5345-7E Specification for L824 Underground Electrical Cable for Airport Lighting Circuits 150/5345-10F Specification for Constant Current Regulators Regulator Monitors 150/5345-12E Specification for Airport and Heliport Beacon 150/5345-13A Specification for L841 Auxiliary Relay Cabinet Assembly for Pilot Control of Airport Lighting Circuits 25 of 29 150/5345-26C Specification for L823 Plug and Receptacle, Cable Connectors 150/5345-27D Specification for Wind Cone Assemblies 150/5345-28F Precision Approach Path Indicator (PAPI) Systems 150/5345-39C FAA Specification L853, Runway and Taxiway Retroreflective Markers 150/5345-42F Specification for Airport Light Bases, Transformer Housings, Junction Boxes and Accessories 150/5345-43F Specification for Obstruction Lighting Equipment 150/5345-44G Specification for Taxiway and Runway Signs 150/5345-45B Low-Impact Resistant (LIR) Structures 150/5345-46C Specification for Runway and Taxiway Light Fixtures 150/5345-47B Specification for Series to Series Isolation Transformers for Airport Lighting Systems 150/5345-49B Specification L854, Radio Control Equipment 150/5345-50A Specification for Portable Runway and Taxiway Lights 150/5345-51A Specification for Discharge-Type Flasher Equipment 150/5345-52 Generic Visual Glideslope Indicators (GVGI) 15015345-53C Airport Lighting Equipment Certification Program 150/5345-54A Specification for L-1884 Power and Control Unit for Land and Hold Short and Change 1 150/5345-55 Lighted Visual Aid to Indicate Temporary Runway Closure 150/5345-56 Specification for L-890 Airport Lighting Control and Monitoring System (ALCMs 150/5360-9 Planning and Design of Airport Terminal Facilities at NonHub Locations 150/5360-12D Airport Signing and Graphics 150/5360-13 and Planning and Design Guidance for Airport Terminal Facilities Change l 150/5370-2E Operational Safety on Airports During Construction 150/5370-10B Standards for Specifying Construction of Airports 150/5370-11A Use of Nondestructive Testing Devices in the Evaluation of Airport Pavement 150/5380-6A Guidelines and Procedures for Maintenance of Airport Pavements 15015390-213 Heliport Design 150/5390-3 Vertiport Design 150/5395-1 Seaplane Bases 26 of 29 THE FOLLOWING ADDITIONAL APPLY to AIP PROJECTS ONLY Dated: 3121/2007 NUMBER TITLE 150/5100-14D Architectural, Engineering, and Planning Consultant Services for Airport Grant Projects 150/5100-15A Civil Rights Requirements for the Airport Improvement Program 150/5100-17 and Land Acquisition and Relocation Assistance for Airport Improvement Program Changes l Assisted Projects through 6 150/5200-37 Introduction to Safety Management Systems (SMS) for Airport Operators 150/5300-15 Use of Value Engineering for Engineering Design of Airports Grant Projects 150/5320-17 Airfield Pavement Surface Evaluation and Rating (PASER) Manuals 150/5370-6B Construction Progress and Inspection Report-Airport Grant Program 150/5370-11A Use on Nondestructive Testing Devices in the Evaluation of Airport Pavements 150/5370-12 Quality Control of Construction for Airport Grant Projects 150/5370-13A Offpeak Construction of Airport Pavements Using Hot-Mix Asphalt 150/5380-7A Airport Pavement Management System 150/5380-8 Handbook for Identification of Alkali-Silica Reactivity in Airfield Pavements THE FOLLOWING ADDITIONAL APPLY to PFC PROJECTS ONLY Dated: 3/21/2007 NUMBER TITLE 150/5000-12 Announcement of Availability-Passenger Facility Charge (PFC) Application (FAA Form 5500-1) 27 of 29 ATTACHMENT D CERTIFICATION REGARDING DRUG-FREE WORKPLACE REQUIREMENTS A. The grantee certifies that it will or will continue to provide a drug-free workplace by: (a) Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the grantee's workplace and specifying the actions that will be taken against employees for violation of such prohibition: (b) Establishing an ongoing drug-free awareness program to inform employees about- (1) The dangers of drug abuse in the workplace; (2) The grantee's policy of maintaining a drug-free workplace; (3) Any available drug counseling, rehabilitation, and employee assistance programs; and (4) The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace; (c) Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph (a); (d) Notifying the employee in the statement required by paragraph (a) that, as a condition of employment under the grant, the employee will- (1) Abide by the terms of the statement; and (2) Notify the employer in writing of his or her conviction for a violation of a criminal drug statute occurring in the workplace no later than five calendar days after such conviction; (e) Notifying the agency in writing, within ten calendar days after receiving notice under paragraph (d)(2) from an employee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, including position title, to every grant officer or other designee on whose grant activity the convicted employee was working, unless the Federal agency has designated a central point for the receipt of such notices. Notices shall include the identification number(s) of each affected grant; (f) Taking one of the following actions, within 30 calendar days of receiving notice under paragraph (d)(2), with respect to any employee who is so convicted- (1) Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or (2) Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; (g) Making a good faith effort to continue to maintain a drug-free workplace through implementation of paragraphs (a), (b), (c), (d), (e), and (f), B. The grantee may insert in the space provided below the site(s) for the performance of work done in connection with the specific grant: Place of Performance (Street address, city, county, state, zip code) Check if there are workplaces on file that are not identified here. Signed: Dated: Typed Name and Title of Sponsor Representative 28 of 29 ATTACHMENT E PAVEMENT MAINTENANCE MANAGEMENT PROGRAM An effective pavement maintenance management program is one that details the procedures to be followed to assure that proper pavement maintenance, both preventative and repair, is performed. An airport sponsor may use any form of inspection program it deems appropriate. The program must, as a minimum, include the following: 1. Pavement Inventory. The following must be depicted in an appropriate form and level of details: a. location of all runways, taxiways, and aprons b. dimensions c. type of pavement d. year of construction or most recent rehabilitation For compliance with the Airport Improvement Program assurances, pavements that have been constructed, reconstructed, or repaired with Federal financial assistance shall be so depicted. 2. Inspection Schedule. a. Detailed Inspection. A detailed inspection must be performed at least once a year. If a history of recorded pavement deterioration is available, i.e. Pavement Condition Index (PCI) survey as set forth in Advisory Circular 150/5380-6, Guidelines and Procedures for Maintenance of Airport Pavements, the frequency of inspections may be extended to three years. b. Drive-by Inspection. A drive-by inspection must be performed a minimum of once per month to detect unexpected changes in the pavement condition. 3. Record Keeping. Complete information on the findings of all detailed inspections and other maintenance performed must be recorded and kept on file for a minimum of five years. The types of distress, their locations, and remedial action, scheduled or performed, must be documented. The minimum information to be recorded is listed below. a. inspection date b. location c. distress types d. maintenance scheduled or performed For drive-by inspections, the date of inspection and any maintenance performed must be recorded. 4. Information Retrieval. An airport sponsor may use any form of record keeping it deems appropriate, so long as the information and records produced by the pavement survey can be retrieved to provide a report to the FAA as may be required. 5. Reference. Refer to Advisory Circular 150/5380-6, Guidelines and Procedures for Maintenance of Airport Pavements, for specific guidelines and procedures for maintaining airport pavements and establishing an effective maintenance program. Specific types of distress, their probable causes, inspection guideline, and recommended methods of repair are presented. 29 of 29 EXHIBIT 3 Runway 18/36 Construction Schedule April 8, 2009 February 2009 Texas Transportation Commission approved $8.5 million construction with a 95/5 cost sharing; April 1, 2009 TxDOT commences condemnation on final tract of land from Porter Investments. Proceedings to be conducted by Texas Attorney General; April 27, 2009 KSA to provide final bid docs to TxDOT pending additional comments from DTO/TxDOT/COD; May 10, 2009 KSA to advertise for bids; May 26, 2009 Pre-bid conference at DTO. May 30, 2009 End of 60-day condemnation process; June 9, 2009 Open Bids; August 1, 2009 Contract signed with selected construction contractor; August 17, 2009 Notice to proceed issued by TxDOT. EXHIBIT 4 DRAFT MINUTES AIRPORT ADVISORY BOARD APRIL 8, 2009 After determining that a quorum was present, the Airport Advisory Board convened for a Regular Meeting on Wednesday April 8, 2009 at 5:30 p.m. in the Denton Airport Terminal Building at the Denton Airport at 5000 Airport Road, Denton, Texas. BOARD MEMBERS PRESENT: Chairman Mr. Woolfolk, Vice Chairman, Dr. Smith, Mr. Brewer, Mr. Brown, Mr. Clark, Mr. Eames and Dr. Kristoferson. BOARD MEMBERS ABSENT: STAFF MEMBERS PRESENT: Quentin Hix, Airport Manager, Mark Nelson, Director of Transportation, Julie Mullins, Administrative Assistant, Andrea Sumner, Operations Coordinator. John Knight, City Attorney and Anita Burgess, City Attorney. PUBLIC PRESENT: Amanda Addington, Air Fair Marketing Director, Jeff Soules, U. S. Aviation Group, Mark Taylor, U. S. Aviation Group. ITEMS FOR INDIVIDUAL CONSIDERATION V. Consider a recommendation on an ordinance of the City of Denton, Texas authorizing the City Manager to execute on behalf of the City of Denton an Airport Project Participation Agreement with the Texas Department of Transportation relating to certain improvements at the Denton Municipal Airport; authorizing and directing the City Manager or his designee to expend funds as provided for in said agreement and to execute documents on behalf of the City of Denton in order to implement the project; and providing an effective date. Mr. Hix provided an overview of the improvements on the Runway Project. This is a change in the funding from a 90/10 grant to a 95/5 grant. Dr. Smith asked Mr. Nelson if this is a standard contract that the board has been through before. Mr. Nelson said yes this is a standard contract. Mr. Nelson asked Mr. Hix to discuss the Tom Cole Road improvement project? Mr. Hix explained that Tom Cole is going to be the access route to the west side of the Airport for property owners and emergency services. The project for Tom Cole will cost $420,000 and Denton County will put in $100,000, the Street Department will put in $60,000. Mr. Woolfolk asked if there is a possibility in using CIP money instead of Gas Well monies. Mr. Woolfolk said there may be funding in other budgets. Mr. Hix is working on the schedule for the Runway construction and wants to keep on the schedule. Dr. Smith commented on Taxiway Alpha to be used for an alternative Runway. Mr. Hix committed to look into that and get back with the Board. Dr. Smith made a motion to approve the APPA for certain improvements of the Runway. Mr. Clark seconded the motion. Motion carried 7-0.