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Home My WebLink AboutSeptember 1, 2009 Agenda AGENDA CITY OF DENTON CITY COUNCIL September 1, 2009 After determining that a quorum is present, the City Council of the City of Denton, Texas will 3:00 p.m. convene in a Work Session on Tuesday, September 1, 2009 at in the Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: 1.Requests for clarification of agenda items listed on the agenda for September 1, 2009. 2.Receive a report, hold a discussion and give staff direction regarding new procurement procedures for purchase of goods and services used for electric production, transmission, distribution and station systems. 3.Receive a report, hold a discussion and give staff direction on the City of Denton’s property tax exemption for designated historic sites. 4.Receive a report, hold a discussion, and give staff direction regarding the priority ranking of nineteen (19) proposed annexation areas associated with the City of Denton Growth Management Strategies Plan. This plan identifies areas within the City’s extraterritorial jurisdiction (ETJ) that are considered potential annexation areas. 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. CLOSED MEETING 1.Closed Meeting: A. Deliberations regarding Certain Public Power Utilities: Competitive Matters – Under Texas Government Code, Section 551.086; Consultation with Attorneys – Under Texas Government Code, Section 551.071. 1. Discuss and deliberate the status of pending mediation efforts regarding several public power issues involved with the Texas Municipal Power Agency litigation described below and receive a briefing from a City representative. Receive a briefing and status report from the City’s attorneys regarding the litigation entitled Ex Parte Texas Municipal Power th Agency,Cause No. D-1-GN-08-003426, pending in the 126 Judicial District Court in and for Travis County, Texas; as well as Ex Parte Texas st Municipal Power Agency – II, Cause No.D-1-GN-08-003693, in the 261 Judicial District Court in and for Travis County, Texas; and the Texas Municipal Power Agency,Plaintiff v. City of Bryan, Texas,Defendant, Counter-Plaintiff and Third-Party Plaintiff; v. City of Denton, Texas and City of Garland, Texas, Third-Party Defendants, Cause No. 28169, now th pending in the 506 Judicial District Court in and for Grimes County, Texas. Discuss and deliberate and provide the attorneys with direction. A City of Denton City Council Agenda September 1, 2009 Page 2 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. 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 property within the Denton Rail Corridor to the DART, 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 property 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. Consultation with Attorneys – Under Texas Government Code Section 551.071 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. Public discussion would 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. 2. Discuss legal issues relating to terms of leases at Denton Municipal Airport, and including 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 chapter. 3. Receive a legal briefing from the City’s attorneys and discuss legal issues regarding the request for a Specific Use Permit to allow for gas well drilling and production on property located within Town Center of the Rayzor Ranch Overlay District with a base zoning of Neighborhood Residential Mixed Use (NRMU), the approximately 3 acre site located on the west side of Bonnie Brae Street, north of Scripture Street. City of Denton City Council Agenda September 1, 2009 Page 3 4. Discuss legal issues relating to Charter amendments, propositions, and elections, including matters in which public discussion would conflict with the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. D. 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. 1.Receive a report and hold a discussion regarding legal issues on matters in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with the provisions of the Texas Open Meetings Act, Chapter 551 of the Texas Government Code. Also hold a discussion regarding the construction of needed infrastructure in the industrially zoned area along Airport Road, west of Interstate 35 in support of Project Teacup. ANY FINAL ACTION, DECISION, OR VOTE ON A MATTER DELIBERATED IN A CLOSED MEETING WILL ONLY BE TAKEN IN AN OPEN MEETING THAT IS HELD IN COMPLIANCE WITH TEXAS GOVERNMENT CODE, CHAPTER 551, EXCEPT TO THE EXTENT SUCH FINAL ACTION, DECISION, OR VOTE IS TAKEN IN THE CLOSED MEETING IN ACCORDANCE WITH THE PROVISIONS OF §551.086 OF THE TEXAS GOVERNMENT CODE (THE ‘PUBLIC POWER EXCEPTION’). THE CITY COUNCIL RESERVES THE RIGHT TO ADJOURN INTO A CLOSED MEETING OR EXECUTIVE SESSION AS AUTHORIZED BY TEX. GOV’T. CODE, §551.001, ET SEQ. (THE TEXAS OPEN MEETINGS ACT) ON ANY ITEM ON ITS OPEN MEETING AGENDA OR TO RECONVENE IN A CONTINUATION OF THE CLOSED MEETING ON THE CLOSED MEETING ITEMS NOTED ABOVE, IN ACCORDANCE WITH THE TEXAS OPEN MEETINGS ACT, INCLUDING, WITHOUT LIMITATION §551.071-551.086 OF THE TEXAS OPEN MEETINGS ACT. Regular Meeting of the City of Denton City Council on Tuesday, September 1, 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: REGULAR MEETING 1. PLEDGE OF ALLEGIANCE A. U.S. Flag B. Texas Flag “Honor the Texas Flag – I pledge allegiance to thee, Texas, one state under God, one and indivisible.” 2. 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. City of Denton City Council Agenda September 1, 2009 Page 4 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 – N). 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 – N below will be approved with one motion. If items are pulled for separate discussion, they may be considered as the first items following approval of the Consent Agenda. A. Consider approval of the Parks, Recreation and Beautification Board’s recommendation to select artist Rosie Sandifer’s sculptures Book a Day as the most recent public art for the City of Denton. The total cost of the two sculptures is $14,800.00 and will be paid from the 2009 Hotel/Motel Occupancy Tax (HOT) funds. The Parks, Recreation and Beautification Board recommends approval (4-0). B. Consider approval of the Parks, Recreation and Beautification Board’s recommendation to select one of artist Carlotta Corpron’s black and white Flowing Light Images as public art for the City of Denton at a cost of $3,500.00, which will be paid from the 2009 Hotel/Motel Occupancy Tax (HOT) funds. The Parks, Recreation and Beautification Board recommends approval (4-0). C. Consider approval of the Parks, Recreation and Beautification Board’s recommendation to select artist Rob Erdle’s Summer Haze watercolor painting as public art for the City of Denton. The cost of the painting is $9,500.00 and will be paid from the 2009 Hotel/Motel Occupancy Tax (HOT) funds. The Parks, Recreation and Beautification Board recommends approval (4-0). D. Consider adoption of an ordinance finding a public purpose and establishing procurement procedures for purchases by Denton Municipal Electric (DME) for electric production, transmission, distribution and station systems in accordance with Texas Local Government Code 252.002c; providing a severability clause and providing an effective date. E. Consider adoption of an ordinance authorizing the City Manager to execute a professional services agreement (PSA) with Jacobs Engineering Group, Inc., for park design and planning services for the adult soccer area at North Lakes Park; authorizing the expenditure of funds therefor; and providing an effective date (File 4360–Professional Services Agreement for Park Design Services For Adult Soccer Area at North Lakes Park awarded to Jacobs Engineering Group, Inc., in an amount not to exceed $130,320). F. Consider adoption of an ordinance of the City of Denton, Texas providing for, authorizing, and approving the expenditure of funds for the purchase of an Automatic Tarping Unit from Tarpomatic, Inc., which is available from only one City of Denton City Council Agenda September 1, 2009 Page 5 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 4361–Purchase of Automatic Tarping Unit for the City of Denton Landfill in the amount of $97,537). The Public Utilities Board recommends approval (6-0). G. Consider adoption of an ordinance of the City of Denton, Texas authorizing the City Manager or his designee to execute a real estate Contract Of Sale between the City of Denton and M. Tony Wilkerson, and any other documents necessary to acquire an approximate 3.0 acre tract of land located in the Gideon Walker Survey, Abstract Number 1330, Denton County Texas, and being two parcels of land conveyed to M. Tony Wilkerson, by Deed recorded under County Clerk’s file number 03-87943, Real Property Records, Denton County, Texas; authorizing the expenditure of funds therefor; and providing an effective date. The Public Utilities Board recommends approval (6-0). (Property for buffer at landfill.) H. Consider adoption of an ordinance of the City of Denton, Texas, authorizing the City Manager or his designee to execute an Easement Sales and Escrow Agreement between the City of Denton and the Texas Department of Aging and Disability Services acting on behalf of Denton State Supported Living Center, and the Brown Law Firm, L.L.P., and any other documents necessary to acquire an approximate 1.741 acre sanitary sewer easement tract located in the M.E.P. & P.R.R. Co. Survey, Abstract Number 950, Denton County Texas, and being part of that certain tract of land conveyed to the State of Texas, by Deed Recorded in Volume 435, Page 12, of the Real Property Records, Denton County, Texas; authorizing the expenditure of funds therefor; and providing an effective date. The Public Utilities Board recommends approval (6-0). I.Consider adoption of an ordinance of the City of Denton, Texas, amending the form Geophysical Survey License for geophysical testing and surveying purposes within municipal streets and municipal lands, as approved by the City of Denton, Texas pursuant to Ordinance No. 2009-147; and providing an effective date. J.Consider approval of a resolution authorizing the City of Denton, as trustee, to sell certain real property at 1180 Cottonwood Lane, consenting to the sale of certain real property to the highest bidder as provided by law, authorizing the Mayor of the City of Denton, Texas, to execute a deed without warranty and any other documents necessary or appropriate to convey certain real property sold by the City of Denton, as trustee, pursuant to section 34.05 of the Texas Property Tax Code; and providing an effective date. K.Consider 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, extended on May 5, 2009 and subsequently extended on June 23, 2009, in favor of the Denton County Transportation Authority (DCTA) authorizing DCTA to enter upon and take possession of certain real property of the City of Denton for the purpose of performing activity as described in Attachment “A” hereto; and providing an effective date. City of Denton City Council Agenda September 1, 2009 Page 6 L.Consider adoption of an ordinance authorizing the City Manager to execute a Consent to Assignment and Assumption of Obligations between the City of Denton, Targa North Texas LP (“Targa”) and Advance Midstream, LP (“Midstream”) consenting to the assignment of certain rights and obligations from Midstream to Targa related to (i) right of way license to use certain city property for placement of transmission pipelines, dated on or about August 11, 2005, from the City to Midstream; (ii) right of way license to use certain city property for placement of transmission pipelines, dated on or about July 28, 2006, from the City to Midstream; and (iii) license agreement to use certain city property for placement of transmission pipelines, dated on or about January 25, 2006, from the City to Midstream; providing for severability and an effective date. M.Consider adoption of an ordinance approving an assignment of a leasehold interest in an airport lease agreement at Denton Municipal Airport from Mary Mahon, to Harold E. and Kathy J. Culp, located at 904 Aeronca Drive, Denton, Texas, at the Denton Municipal Airport; and providing an effective date. The Airport Advisory Board recommends approval (6-0). N.Consider adoption of an ordinance of the City of Denton, Texas approving a Lease Estoppel Agreement between the City of Denton, Jet Works Air Center Management, L.LC. and Greater East Texas Certified Development Corporation; and providing an effective date. The Airport Advisory Board recommends approval (6-0). 3.PUBLIC HEARINGS A. Hold a public hearing and receive citizen input on the 2009-10 proposed budget. 4. ITEMS FOR INDIVIDUAL CONSIDERATION Tabled A. – 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 (Tabled from March 3, 2009) recommends approval (3-0). Tabled B. - Consider adoption of an ordinance of the City of Denton, Texas regarding a Specific Use Permit to allow forty-six (46) attached and fifty-four (54) detached single family dwelling units on property located within a Neighborhood Residential 3 (NR-3) zoning district, the approximately 30.7 acres site being located at the southwest corner of Hinkle Drive and Windsor Street; and providing for a penalty in the maximum amount of $2,000.00 for violations, thereof, severability and effective date. (S09-0002) The Planning and Zoning AC Commission recommends denial (5-0). SUPERMAJORITY VOTE BY OUNCIL IS (Tabled from July 21, 2009) . REQUIRED FOR APPROVAL Tabled C. - Consider adoption of an ordinance of the City of Denton, Texas regarding a Specific Use Permit to allow for gas well drilling and production on City of Denton City Council Agenda September 1, 2009 Page 7 property located within the Town Center of the Rayzor Ranch Overlay District with a base zoning of Neighborhood Residential Mixed Use (NRMU), the approximately 3 acre site being located on the west side of Bonnie Brae Street, north of Scripture Street; and providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date.(S09-0006) (Tabled The Planning and Zoning Commission recommends approval (4-0). from July 21, 2009) D.Consider an ordinance ordering an election to be held on November 3, 2009 for the purpose of submitting to the registered voters of Denton, Texas amendments to the Denton City Charter regarding terms of office and term limits; residency requirements for City Council members, the manner of filling the office of Mayor in the event of a vacancy during an unexpired term of office, limitations on City Council members directing or requesting the appointment of any person to, or his or her removal from, office by any officer appointed by the City Council; and, authority to transfer unencumbered appropriation balances during the fiscal year; prescribing the time and manner of the conduct of the election to be in accordance with an agreement with Denton County; prescribing the form of the ballot; providing for notice; providing for publication of notice of this election; providing a severability clause; providing an open meetings clause; and providing an effective. Tabled E. - Consider adoption of an ordinance authorizing a contract for election services with Denton County, Texas, performed by and through its Election Administrator to conduct a November 3, 2009 election concerning amendments to the City of Denton Charter; authorizing the expenditure of funds therefor; and Tabled from August 18, 2009 providing an effective date. () F.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 Technology Services Fund of one hundred seventy five thousand dollars ($175,000) to provide for the expenditure of phone and networking equipment; declaring a municipal purpose; providing a severability clause; providing for an open meetings clause; and providing for an effective date. G.Consider adoption of an ordinance awarding a contract to INX, Inc. for the purchase of Cisco phone and networking equipment for the City of Denton as awarded by the State of Texas General Services Commission, Department of Information Resources (DIR Contract DIR-SDD-531); providing for the expenditure of funds therefor; and providing an effective date (File 4359– Purchase of Cisco phone and networking equipment from INX, Inc. in the amount of $565,810). H.Consider adoption of an ordinance authorizing the financing of phone and networking equipment, recurring maintenance support and installation services for the City of Denton through a lease purchase financing agreement; providing for the expenditure of funds therefor; and providing an effective date (File 4391– City of Denton City Council Agenda September 1, 2009 Page 8 Third Party Lease Purchase of phone and networking equipment through Key Government Finance in the amount of $1,632,392.40 with five annual payments of $326,478.48 each.) I.Consider appointments to the following Boards and Commissions: 1.Historic Landmark Commission 2.Zoning Board of Adjustment J. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting AND Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the governing body that was attended or is scheduled to be attended by a member of the governing body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. K. Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. L. 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.) __________________________________________ CITYSECRETARY NOTE: THECITYOFDENTONCITYCOUNCILCHAMBERSISACCESSIBLEIN ACCORDANCEWITHTHEAMERICANSWITHDISABILITIESACT.THECITYWILL PROVIDESIGNLANGUAGEINTERPRETERSFORTHEHEARINGIMPAIREDIF REQUESTEDATLEAST48HOURSINADVANCEOFTHESCHEDULEDMEETING. PLEASECALLTHECITYSECRETARY'SOFFICEAT349-8309ORUSE TELECOMMUNICATIONSDEVICESFORTHEDEAF(TDD)BYCALLING1-800-RELAY- TXSOTHATASIGNLANGUAGEINTERPRETERCANBESCHEDULEDTHROUGHTHE CITYSECRETARY’SOFFICE. AGENDA INFORMATION SHEET AGENDA DATE: September 1, 2009Questions concerning this Presentation may be directed DEPARTMENT: Materials Management to Tom Shaw 349-7133 ACM: Jon Fortune ______________________________________________________________________________ SUBJECT Receive a report; hold a discussion, and give staff direction regarding new procurement procedures for purchases of goods and services used for electric production, transmission, distribution and station systems. BACKGROUND The Texas Legislature passed Senate Bill 7 in 1999, allowing municipal owned electric utilities to adopt specialized procurement procedures. The statute allows the utility an exemption from Chapter 252 of the Local Government Code which governs purchasing procedures for municipal governments. The procedures must be adopted through an ordinance by the governing body. Staff surveyed other municipal owned utilities in 2005 to determine if they had implemented changes as allowed by Senate Bill 7. At that time, the cities of Garland, Lubbock, and Austin had resolutions in place. The resolutions were reviewed and a draft of the proposed procurement procedures was created. In 2008, Navigant Consulting completed a management study of Denton Municipal Electric (DME). They recommended that the City move forward and implement the specialized purchasing procedures for the electric utility. The Purchasing, Legal, and Electric departments have worked collectively together to review and create the attached draft ordinance. The ordinance only applies to purchases to be used on the electric system from generation to the meter on a home or business. Other goods and services used by DME, such as vehicles, buildings, and furniture, will continue to follow the procurement procedures as set forth in Chapter 252 of the Local Government Code. Staff presented the draft policy to the Audit/Finance Committee in May 2009. The Committee suggested changes to the original draft and recommended that the policy be presented to the Public Utilities Board (PUB). The changes from the Audit/Finance Committee include: Item 5- Change Orders: Allowing a change order for similar or related items, not for any reason as Î presented. Item 6- Project Expenditure Approval: 6d- increased the PUB/Council approval limit from $100,000 to $250,000. Î 6d- added that Council may approve the expenditure, should it meet Î before the PUB meets. Added that expenditures in excess of $100,000 will be reported Î retroactively to Council and/or PUB. Agenda Information Sheet September 1, 2009 Page 2 Item 7 Critical Business Need: Added a $500,000 not to exceed limit. Î Added requirement that the Mayor and PUB Chair be contacted before Î approval by the City Manager. Added that Council will retroactively accept the expenditure. Î The proposed changes, including the recommendations from the Audit/Finance Committee are outlined in the attached documents. RECOMMENDATION Staff recommends adoption of the proposed ordinance. PRIOR ACTION/REVIEW (Council, Boards, Commissions) Audit/Finance Committee reviewed the proposed policy on May 5, 2009. The Committee recommended approval with the changes outlined above. Public Utilities Board approved (5-0) the proposed ordinance on June 22, 2009. FISCAL INFORMATION Staff expects a reduction in advertising costs. In addition, the revised procedures will provide an opportunity for the electric utility to reduce their purchasing costs during volatile price environments. EXHIBITS Exhibit 1: Power Point Presentation Exhibit 2: Matrix Exhibit 3: Process Flow Chart Exhibit 4: Policy (Ordinance Exhibit 5: Critical Business Need Justification Form Respectfully Submitted By: Bryan Langley Director of Finance êñîñîððç ÜÓÛÎ»±´«¬·±² Û¬¿¾´·¸·²¹Ò»©Ð®±½«®»³»²¬Ð®±½»¼«®» ¹ Ó¿§îððç ï Ù»²»®¿´Ð±´·½§ ÜÓÛ°«®½¸¿»±º¹±±¼¿²¼»®ª·½»«»¼±²»´»½¬®·½°®±¼«½¬·±²ô ¬®¿²³··±²ô¼·¬®·¾«¬·±²ô¿²¼¬¿¬·±²§¬»³±²´§ò ¬®¿²³··±²¼·¬®·¾«¬·±²¿²¼¬¿¬·±²§¬»³±²´§ Í±«®½»æÈ½»´Û²»®¹§ô×²½à©©©ò¨½»´»²»®¹§ò½±³ î ï êñîñîððç Í»¿´»¼Þ·¼ Æ2/2ñkÆ£««ªÃ£ª Í»¿´»¼¾·¼®»¯«·®»¼·ºâüëðôðððÍ»¿´»¼¾·¼®»¯«·®»¼·ºâüïððôðððò •• Í«¾¬¿¬·±²¿²¼¼·¬®·¾«¬·±²½±²¬®«½¬·±² • Í«¾¬¿¬·±²¿²¼¼·¬®·¾«¬·±²½±²¬®«½¬·±² °®±¶»½¬±º¬»²®»¯«·®»³«´¬·°´»Â±£_£±±Á °«®½¸¿»±ª»®üëðôðððô©¸»®»ª»²¼±®¿®» ´·³·¬»¼ò í ß¼ª»®¬··²¹ Æ2/2ñkÆ£««ªÃ£ª Î»¯«·®»´»¹¿´¿¼ª»®¬··²¹·²¿²»©°¿°»®ß¼ª»®¬··²¹®»¯«·®»¼º±®»¿´»¼¾·¼±ª»® •• ®«²¬©·½»º±®ïì¼¿§º±®»¿´»¼¾·¼±ª»®üïððôððð üëððððô üëðððð •Ü»´¿§¾·¼±°»²·²¹±º³«½¸²»»¼»¼·¬»³ß´´±©º±®¿¼ª»®¬··²¹·²±¬¸»®³»¿² • •Ô·³·¬»¼¼·¬®·¾«¬±®±º³¿²§±º¬¸»·¬»³ ¾»·¼»¬¸»²»©°¿°»®ô«½¸¿æ •Ü·¬®·¾«¬±®¹»²»®¿´´§¼±²±¬®»¿¼´»¹¿´ •×²¬»®²»¬ ²±¬·½» •í®¼°¿®¬§Í±´·½·¬¿¬·±²»®ª·½»«½¸ •Þ·¼Í§²½±®Ñ²ª·¿ Í¸±®¬»²¬¸»¿¼ª»®¬··²¹°»®·±¼º±® • »¨°»²¼·¬«®»¬±»ª»²øé÷¼¿§ ×º²»©°¿°»®«»¼ô¬¸»²±²´§±²» • ¿¼ª»®¬·»³»²¬®»¯«·®»¼ Ò±»¨½»°¬·±²¹®¿²¬»¼¬±»¨°»¼·¬»Ð«®½¸¿·²¹ß¹»²¬½¿²¸±®¬»²¿¼ª»®¬··²¹ ¿¼ª»®¬··²¹°®±½»°»®·±¼±®«»¿´¬»®²¿¬»³»¿²·º¶«¬·º·»¼ò ì î êñîñîððç Ý¸¿²¹»Ñ®¼»® Æ2/2ñkÆ£««ªÃ£ª Ñ²´§¿´´±©º±®½¸¿²¹»·²¯«¿²¬·¬§¿²¼ß´´±©½¸¿²¹»±®¼»®±º·³·´¿®±®®»´¿¬»¼ •• °´¿²±®°»½·º·½¿¬·±²·¬»³·º¾«¼¹»¬º«²¼¿ª¿·´¿¾´» °´¿²±®°»½·º·½¿¬·±²·¬»³·º¾«¼¹»¬º«²¼¿ª¿·´¿¾´» •Ü±»²±¬¿´´±©°®·½»½¸¿²¹»¼«»¬± ª±´¿¬·´»®¿©³¿¬»®·¿´òø»¨æ°®·³¿®§½¿¾´»ô ¬®¿²º±®³»®ôÐÊÝ¿º¬»®Ø«®®·½¿²»Õ¿¬®·²¿÷ Î»¯«·®»¿°°®±ª¿´¾§Ý·¬§Ý±«²½·´·ºß«¬¸±®·¦»¬¸»Ý·¬§Ó¿²¿¹»®¬±¿°°®±ª» •• âõñüîëôðððò½¸¿²¹»±®¼»®·ºõñüïððôððð •Ý¿«»¼»´¿§º±®¬·³»»²·¬·ª»°®±¶»½¬ «½¸¿ÎÜÉ»´´òø»¨æ½¸¿²¹»±®¼»®±² Ý±«²½·´ß°°®±ª¿´·ºâõñüïððôððð • ¬··®¿²³±²°±´»¿²¼¬··®¿²³±² ¬··´¼¬·· ½±²¬®«½¬·±²°®±¶»½¬÷ Ý±²¬®¿½¬³¿§²±¬½¸¿²¹»·²»¨½»±ºîëûÒ±½¸¿²¹» •• ±º¬¸»±®·¹·²¿´½±²¬®¿½¬¿³±«²¬ ë Ð®±¶»½¬Û¨°»²¼·¬«®»ß°°®±ª¿´ ñkÆ£««ªÃ£ª Í±³»°®·½»¿²¼¼»´·ª»®§¯«±¬¿¬·±²»¨°·®»ß«¬¸±®·¦»¬¸»Ý·¬§Ó¿²¿¹»®¬±¿°°®±ª» •• ¾»º±®»¬¸»½±±®¼·²¿¬·±²±º®»¯«»¬»¨°»²¼·¬«®»«°¬±üëððôððð·ºæ ¯°°üô ¬¸®±«¹¸¬¸»¿°°®±ª¿´°®±½»½¿²¾»°®±½«®»³»²¬·º±®»´»½¬®·½ • ½±³°´»¬»¼ò¹»²»®¿¬·±²ô¬®¿²³··±²ô¼·¬®·¾«¬·±² Ê±´¿¬·´·¬§±º¬¸»³¿®µ»¬°´¿½»¿²¼¬¿¬·±²°®±¶»½¬ • Ð®±¶»½¬·²½´«¼»¼·²¿°°®±ª»¼ • ¾«¼¹»¬ñÝ×Ð Î»½±³³»²¼¿¬·±²º±®¿°°®±ª¿´¾§ • ÐËÞ±®¿°°®±ª¿´¾§Ý·¬§Ý±«²½·´·º âüîëðôððð Í¬¿²¼¿®¼Ð«®½¸¿·²¹°®±½»¼«®»¿®» • º±´´±©»¼ô®»½»·ª·²¹»¿´»¼¾·¼±ª»® üïððôðððò ê í êñîñîððç Ý®·¬·½¿´Þ«·²»Ò»»¼ Æ2/2ñkÆ£««ªÃ£ª Ñ²´§¿´´±©»³»®¹»²½§°«®½¸¿»º±®ßÂÃÃ±Þ«·²»ÛÁ½¿²¾» •• °®±¬»½¬·±²±º°«¾´·½¸»¿´¬¸¿²¼¿º»¬§¼»½´¿®»¼·ºæ •Û¨°»²¼·¬«®»üëðððððô Û¨°»²¼·¬«®»üëððððð • •ÜÓÛÙ»²»®¿´Ó¿²¿¹»®°®±ª·¼»©®·¬¬»² Ò±±´«¬·±²º±®»¨¬»²«¿¬·²¹½·®½«³¬¿²½» • ¶«¬·º·½¿¬·±²ô ¬¸¿¬¿®»²±¬¯«·¬»¿²»³»®¹»²½§ô¾«¬²»»¼ •®»ª·»©»¼¾§¬¸»Ð«®½¸¿·²¹ß¹»²¬ ¿²¿´¬»®²¿¬»³»¿²¬±¿´´±©¬¸»°«®½¸¿» •Ó¿§±®¿²¼ñ±®ÐËÞÝ¸¿·®°»®±²²±¬·º·»¼ •ß°°®±ª»¼¾§¬¸»Ý·¬§Ó¿²¿¹»® ß´´±©º±®©¿·ª·²¹±º°±´·½·»¿²¼ • °®±½»¼«®»¿²»½»¿®§¬±³¿µ»¬¸» °®±½«®»³»²¬ò °®±½«®»³»²¬ Ð«®½¸¿»®»°±®¬»¼®»¬®±¿½¬·ª»´§¬±ÐËÞ • ¿²¼®»¬®±¿½¬·ª»´§¿½½»°¬»¼¾§Ý±«²½·´ é ì ÜÓÛÐ®±½«®»³»²¬Ó»¬¸±¼ ÃÃ±kÃªÛ É±ªÉkÆÂY«ÉkÆ ÉkÆ ×¬»³ª£«»¼º±®×¬»³«»¼º±® Û³»®¹»²½·»ô±´» ¼·¬®·¾«¬·±²ô¼·¬®·¾«¬·±²ô Ý¿¬»¹±®§±ºÙ±±¼±«®½»ô½±³°»¬·¬·ª» ¬®¿²³··±²±®¬®¿²³··±²±® ·²¬»®»¬ °®±¼«½¬·±²±º»´»½¬®·½·¬§°®±¼«½¬·±²±º»´»½¬®·½·¬§ Þ«½µ»¬Ì®«½µô²»© Ì®¿²º±®³»®ô©·®»ôÛ¨½»°¬·±²°«®½¸¿» Í¿³°´»Ð«®½¸¿»¾«·´¼·²¹½±²¬®«½¬·±²ô ½¿¾´»ô°±´»ô«¾¬¿¬·±²®¿®»´§«»¼ º«®²·¬«®» Î»½±³³»²¼»¼Î»½±³³»²¼»¼ ß°°´·½¿¾´»Ð±´·½§±®Ô¿©Ý¸¿°¬»®îëî Ñ®¼·²¿²½»Ñ®¼·²¿²½» Í»¿´»¼Þ·¼Ô·³·¬âüëðôðððâüïððôðððÉ¿·ª»¼ ß¼ª»®¬··²¹ïì¼¿§é¼¿§Ó¿§¾»É¿·ª»¼ Ý·¬§Ó¿²¿¹»®ß°°®±ª¿´Ô·³·¬üëðôðððüïððôðððüëðôðððüëððôðððüëððôððð ÐËÞß°°®±ª¿´Ì¸®»¸±´¼âüïððôðððâüîëðôðððÎ»¬®±¿½¬·ª»´§®»°±®¬»¼ Ý±«²½·´ß°°®±ª¿´Ì¸®»¸±´¼âüïððôðððâüëððôðððÎ»¬®±¿½¬·ª»´§¿½½»°¬»¼ Ý¸¿²¹»Ñ®¼»® Ý¸¿²¹»·²¯«¿²¬·¬§±® Ý¸¿²¹»Ñ®¼»®Î»¿±²Ý¸¿²¹»º±®¿²§®»¿±²Òñß ½±°»±º©±®µ±²´§ Ý±«²½·´ß°°®±ª¿´ âõñüîëôðððô¾«¬²±¬âõñüïððôðððô¾«¬²±¬ Î»¯«·®»³»²¬º±®Ý¸¿²¹»Òñß ³±®»¬¸¿²îëû³±®»¬¸¿²îëû Ñ®¼»® öÎ»¯«·®»³»²¬³¿§¾»©¿·ª»¼·º®»¯«»¬»¼·²©®·¬·²¹¾§¬¸»ÜÓÛÙ»²»®¿´Ó¿²¿¹»®ô®»ª·»©»¼¾§¬¸»Ð«®½¸¿·²¹ ß¹»²¬ô¿²¼¿°°®±ª»¼¾§¬¸»Ý·¬§Ó¿²¿¹»®ò×º©¿·ª»¼ô¬¸»²¼»»³»¼¿þÝ®·¬·½¿´Þ«·²»Ò»»¼þò Exhibit “A” Procurement Policy Change for DME 1. General Policy- Purchases by Denton Municipal Electric of equipment, supplies, materials, and services used on electric production, transmission, distribution and station systems, including, but not limited to transformers, cable/wire, and poles, shall be made in a manner that: (a) Conforms with the substance of all applicable state procurement laws, the City Charter, all applicable City Ordinances, and this Resolution; (b) is beneficial and cost-effective for Denton Municipal Electric and its customers; and (c) is fair and equitable to suppliers and service providers. Actions and procurements not addressed by this resolution shall be governed by the applicable provisions of Chapter 252 of the Texas Local Government Code. 2. Solicitation Type- The Purchasing Agent will determine the type of solicitation to be used in a procurement, taking into account both the fundamental requirements of fairness in selecting parties to contract with Denton Municipal Electric as well as the competitive needs of Denton Municipal Electric. Normally, an Invitation for Bid will be used for standard commodity purchases and a Request for Proposal will be used for procurement of services and for custom built and/or technical equipment, including, but not limited to, equipment that is related to the production, transmission, distribution, or metering of electricity. Procurement of professional services and public works construction not governed by Chapter 252 of the Local Government Code will not be affected by this section. Procurements that meet the requirements of critical business need as set forth in Section 7 below may follow the procedures established therein. 3. Bids and Proposals- The general business practice will be for all responses to solicitations to be submitted by mail, courier, electronically or by fax. Electronic signatures will be acceptable. However, this practice may be waived at the discretion of the Purchasing Agent, if there is a business need, to either permit telephone responses or to require sealed responses. Sealed responses will be required for solicitations over $100,000, unless the solicitation is for a “Critical Business Need” as set forth in Section 7. 4. Advertising Requirement- Any solicitation estimated to be in excess of $100,000 will be advertised for a minimum of seven (7) days prior to the bid opening on the internet, or by such other means, including newspaper publication, as is determined necessary to reach a wide and diverse number of potential bidders or proposers. If the newspaper is used, an advertisement will be run at least 7 days prior to the bid opening date. However, if the Purchasing Agent determines and provides a written justification that there is a business need, a solicitation may be advertised for a lesser period of time or in a different fashion. 5. Change Orders- If changes are necessary after the performance of the contract is begun, the municipality may approve change orders of similar or related items, provided that: Page (a) additional money for increased costs is appropriated for that purpose from available funds or is provided for by the authorization of the issuance of time warrants. (b) If a change order involves a decrease or an increase of $100,000 or less, the City Manager or the person acting on his/her behalf may approve the change order. (c) The original contract price may not be increased under this section by more than 25 percent. The original contract price may not be decreased under this section by more than 25 percent without the consent of the contractor. 6. Project Expenditure Approval- The City Manager is authorized to approve expenditures for individual purchases up to $500,000 provided that: (a)The procurement is for materials and services for: electric production, transmission, distribution, and station projects (b)the project is included in the approved budget/CIP; (c)the cumulative total of purchases for any project does not exceed the amount available for that project; (d)purchases, in excess of $250,000, that have been recommended for approval by the PUB or approved by City Council (whichever meets first) and; (e)standard purchasing practices have been followed. Expenditures in excess of $100,000 will reported retroactively to Council and/or PUB. 7. Critical Business Need— The procedures set forth in the above sections may be changed or modified by the City Manager, or the person acting on his/her behalf, on a case-by- case basis as necessary in order to meet a critical business need of Denton Municipal Electric for the purchases of goods or services for electric production, transmission, distribution and station systems. The expenditure shall not exceed $500,000. Circumstances which could give rise to a finding of critical business need include: (a) emergency situation, including procurements necessary to protect the public health or safety of in response to a public calamity; (b) a procurement necessary because of unforeseen damage to public equipment, machinery, or other property; (c) a procurement for personal services or highly technical services and testing; (d) a procurement of items that are available from only one source; Page (e) a procurement necessary to protect the competitive interests or position of Denton Municipal Electric. A critical business need will be submitted in writing, using the “Critical Business Need Justification” form, by the General Manager of Denton Municipal Electric, reviewed by the Purchasing Agent, and approved by the City Manager. The Mayor and/or the Public Utility Board Chairperson shall be notified of the expenditure before approval by the City Manager. Once it has been determined that a procurement is necessary to meet a critical business need of Denton Municipal Electric, the Purchasing Agent will manage the procurement so as to assure that it expeditiously meets the critical business need while providing competition to the extent possible and maintaining a fair process. Critical business needs shall be reported retroactively to the PUB and retroactively accepted by the City Council. Page File #: _________ Critical Business Need Justification Date: _________ Vendor: _____________________________________________________________________________ Product/Service: ______________________________________________________________________ Estimated expenditure for the above commodity or service: (not to exceed $500,000) $ ______________ Initial all entries below that apply to the proposed purchase, under the Purchasing Procedures for Denton Municipal Electric as passed by City Council via Resolution No.XXXX. (More than one entry may apply.) 1. _______Emergency situations, including procurements necessary to protect the public health or safety or in response to a public calamity; 2. _______A procurement necessary because of unforeseen damage to public equipment, machinery, or other property; 3. _______A procurement for personal services or highly technical services and testing; 4. _______A procurement of items that are available from only one source; (Attach the manufacturer’s written certification that no regional distributors exist); 5. _______A procurement necessary to protect the competitive interests or position of DME. Brief Description/Justification for exception: Respectfully Submitted by, Reviewed by: Phil Williams Date Tom Shaw Date General Manager of DMEPurchasing Agent The undersigned agrees that the Purchasing Procedures for DME as passed by City Council via Resolution No. XXX be waived; and that the vendor identified as the supplier of the service or material described in this critical business need justification, be authorized to provide the service or material. Mayor notified Date: _______________ George Campbell Date City Manager PUB Chairperson notified Date: _______________ éÕÔÊÍÜÖØÑØ×ÉÛÑÜÏÒÔÏÉØÏÉÔÎÏÜÑÑÄ AGENDA INFORMATION SHEET AGENDA DATE: September 1, 2009 DEPARTMENT: Finance ACM: Jon Fortune ______________________________________________________________________________ SUBJECT Receive a report, hold a discussion and give staff direction on the exemption for designated historic sites. BACKGROUND In 1987, the City Council approved an ordinance (No. 87-189) providing for a partial tax exemption for designated historic sites. The ordinance specified that any property which was a designated historic site on the first day of January for any year beginning with 1989 and extending to and including 1998, would receive an exemption of fifty percent (50%) of the assessed value from the City of Denton. The exemption was applicable for a maximum of ten (10) successive years, beginning with the first year the property is entitled to the exemption. In 1998, the City Council approved an ordinance (No. 98-110) providing for a continuation of the qualification period for partial tax exemptions to the year 2008 and providing owners that qualify for a designated historic site fifteen (15) years of partial tax exemption. The ordinance specified that any property which is a designated historic site on the first day of January for any year beginning 1989 and extending to and including 2008, would receive an exemption of fifty percent (50%) of the assessed value from the City of Denton. The exemption was applicable for a maximum of fifteen (15) successive years, beginning with the first year the property is entitled to the exemption. The Texas Tax Code (Ch. 11, Sec. 11.24) enables the City the assessed value of a structure or archeological site and the land necessary for access to and use s a historical site by either the Texas Historic Landmark Commission under applicable State law or pursuant to an ordinance or other law adopted by the governing body of a taxing unit. Neither the Texas Tax Code nor other State law imposes a specific time limit on the exemption for historical sites. This determination is made by the governing body of each taxing unit. The City has adopted a 15 year exemption period, and the City currently has 28 properties that are receiving an exemption as a historical site. The Historic Landmark Commission has requested that the designation and exemption period be extended for 15 years. The purpose of this item is to discuss these recommendations and receive direction from the City Council. Agenda Information Sheet September 1, 2009 Page 2 HISTORICAL LANDMARK COMMISSION (HLC) RECOMMENDATIONS On August 10, 2009, the HLC recommended the following: 1.Extend the designation period for exemptions for 15 years beyond 2008 to 2023. 2.Keep exemption period at 15 years a.New properties receive a 15 year exemption beginning with the year after their date of designation, b.Properties with a current exemption will get an additional 15 year exemption when the current exemption expires, and c.Properties no longer eligible for an exemption under the current ordinance will get a new 15 year exemption the year after the effective date of a new ordinance. 3.Keep exemption at 50% of assessed value. STAFF RECOMMENDATIONS Staff recommends the following: 1.Per 1998 ordinance, no new properties may be identified for exemption after 2008. 2.Properties which have previously received an exemption should no longer be eligible for additional exemptions. 3.Exemption should continue for properties that have not been exempt for 15 years. 4.Remove exemptions from properties that are no longer eligible. PRIOR ACTION/REVIEW (Council, Boards, Commissions) On October 20, 1987, the City Council approved an ordinance (No. 87-189) providing for a partial tax exemption for designated historic sites for a period of ten (10) years. On April 21, 1998, the City Council approved an ordinance (No. 98-110) providing for a continuation of the qualification period for seeking partial tax exemptions for designated historic sites to the year 2008 and providing owners that qualify for a designated historic site fifteen (15) years of partial tax exemption. On April 28, 1998, the City Council approved an ordinance (No. 98-116) providing for an abatement of the increase in the assessed value of historically significant sites for tax purposes which result from appropriate repairs and renovation to historic buildings in the Downtown commercial district of the City. On February 9, 2009 and March 9, 2009, the Historical Landmark Commission discussed and recommended that the partial tax exemption for designated historic sites be extended. On June 8, 2009, the Historical Landmark Commission discussed the partial tax exemption for designated historic sites and requested that the Legal Department provide clarification at a future commission meeting. Agenda Information Sheet September 1, 2009 Page 3 On August 10, 2009, the Historic Landmark Commission discussed the partial tax exemption for designated historic sites and voted to recommend that the City Council extend the partial tax exemption for designated historic sites. FISCAL INFORMATION According to twenty-eight (28) properties receive a historic site exemption. The total exempted value is $3,478,599. This represents approximately $23,186 in foregone revenue to the City. EXHIBITS 1.Ordinance No. 87-189 (Historic Sites) 2.Ordinance No. 98-110 (Historic Sites) 3.DCAD Historic Site Exemption Application 4.List of Historic Sites and Historically Significant Sites 5.PowerPoint Presentation Respectfully submitted, Bryan Langley Director of Finance Prepared By: Antonio Puente, Jr. Revenue & Treasury Analyst CITY OF DENTON PLANNING DEPARTMENT LIST OF HISTORICAL SITES & HISTORICALLY SIGNIFICANT SITES Properties with Historic Landmark Designation As of January 1, 2009 Designation #DateAddressDescription H-19/2/1980123 N. Elm Street H-41/7/1981607 Pearl H-51/7/1981609 W. Oak H-61/7/1981722 W. Oak H-71/7/1981705 W. Oak H-81/7/1981811 W. Oak H-91/7/1981723 W. Oak H-101/7/1981812 W. Oak H-111/7/19811003 W. Oak H-121/7/19811023 W. Oak H-131/7/19811015 W. Oak H-142/17/1981610 W. Oak H-152/17/19811819 N. BellTWU H-162/17/1981818 W. Oak H-174/7/1981819 W. Oak H-184/7/1981101 N. ElmBurned in 1994 H-196/16/1981119 W. Hickory H-212/23/1982210 N. Locust H-222/23/1982747 E. PrairieOakwood Cemetery H-232/23/19821314 N. Locust H-244/20/1982110 W. HickoryCourthouse-on-the-Square H-259/7/1982221 N. ElmCity Hall West H-269/21/19821555 Lindsey H-278/2/1983703 Bolivar H-2810/4/1983619 GroveTWU H-2911/15/1983400 E. HickoryCenter for Visual Arts H-3011/15/1983332 E. HickoryCentral Fire Station H-331/15/1985217 E. Oak H-356/10/1986805 Bolivar H-365/6/1987928 W. Hickory H-379/20/1988118-120 N. Locust 91-0018/20/1991305 Mounts 92-0023/2/1993915 W. Oak 93-0016/15/1993120 W. Oak 93-00211/16/1993200 W. HickoryCampus Theater 94-00112/6/19941035 W. Oak 94-00212/6/19941004 W. Oak 94-00312/6/19941018 W. Oak 95-00112/19/19951513 N. Locust 98-0013/17/1998815 N. Locust 98-0023/17/1998821 N. Locust 99-3159/7/1999100 N. Locust 99-3149/7/1999610 Oakland Street 99-3139/7/1999421 E. Hickory 99-3169/7/1999520 N. Austin 2006-2859/26/2006918 W. Oak 2007-2019/18/20072044 W. Oak 2008-0653/4/2008122 N. Locust Properties with Historically Significant Structure Designation As of January 1, 2009 Designation #DateAddressDescription 5/1/1999114 N. Locust 5/1/1999116 N. Locust 5/1/1999115-117 W. Hickory 12/1/2001525 S. Locust 12/1/2001535-537 S. Locust 6/1/2005208 W. Oak Ø×ÍÌÑÎ×Ý Í×ÌÛ ÐÎÑÐÛÎÌÇ ÌßÈ ÛÈÛÓÐÌ×ÑÒ Éª£ÆÃY£kªÃ±£ªÂ«3Ë244+ ï ´Ð£kªôÃ£ÃÂÃ ïçèé Ñ®·¹·²¿´ ïð §»¿® ¬¿¨ »¨»³°¬·±² ¿°°®±ª»¼ò Ì¿¨ »¨»³°¬·±² »¯«·ª¿´»²¬ ¬± ëðû ±º ¿»»¼ ª¿´«»ò Ñ²´§ º±® Ý·¬§ ±º Ü»²¬±² ¬¿¨»ò ïççè Ì¿¨ »¨»³°¬·±² ·²½®»¿»¼ º®±³ ïð §»¿® ¬± ïë §»¿®ò Û¨¬»²¼»¼ ¯«¿´·º·½¿¬·±² °»®·±¼ º®±³ ïççè ¬± îððèò Þ»¹·² ¬¸» ¬¿¨ §»¿® ¿º¬»® ¬¸» ¼¿¬» ±º ¼»·¹²¿¬·±²ò ß°°´·½¿¾´» º±® ½±²»½«¬·ª» §»¿®ò Û¨°·®» ¬¸» ¬¿¨ §»¿® ¿º¬»® ¬¸» ïë§»¿®ò ¬¸ Ú·²¿²½·¿´ ·³°¿½¬ · ¿°°®±¨·³¿¬»´§ üîíôïèë °»® §»¿®ò î ôÃ£Ã±âª«´£««ÃÃ£ªÆ£««ªÃ£ª Û¨¬»²¼ ¬¸» ¼»·¹²¿¬·±² °»®·±¼ º±® »¨»³°¬·±² º±® ïë §»¿® ¾»§±²¼ îððè ¬± îðîíò Õ»»° »¨»³°¬·±² °»®·±¼ ¿¬ ïë §»¿® Ò»© °®±°»®¬·» ®»½»·ª» ¿ ïë §»¿® »¨»³°¬·±² ¾»¹·²²·²¹ ©·¬¸ ¬¸» §»¿® ¿º¬»® ¬¸»·® ¼¿¬» ±º ¼»·¹²¿¬·±²ò Ð®±°»®¬·» ©·¬¸ ¿ ½«®®»²¬ »¨»³°¬·±² ©·´´ ¹»¬ ¿² ¿¼¼·¬·±²¿´ ïë §»¿® »¨»³°¬·±² ©¸»² ¬¸» ½«®®»²¬ »¨»³°¬·±² »¨°·®»ò Ð®±°»®¬·» ²± ´±²¹»® »´·¹·¾´» º±® ¿² »¨»³°¬·±² «²¼»® ¬¸» ½«®®»²¬ ±®¼·²¿²½» ©·´´ ¹»¬ ¿ ²»© ïë §»¿® »¨»³°¬·±² ¬¸» §»¿® ¿º¬»® ¬¸» »ºº»½¬·ª» ¼¿¬» ±º ¿ ²»© ±®¼·²¿²½»ò Õ»»° »¨»³°¬·±² ¿¬ ëðû ±º ¿»»¼ ª¿´«»ò í ÂøøÆ£««ªÃ£ª Ð»® ïççè ±®¼·²¿²½»ô ²± ²»© °®±°»®¬·» ³¿§ ¾» ·¼»²¬·º·»¼ º±® »¨»³°¬·±² ¿º¬»® îððèò Ð®±°»®¬·» ©¸·½¸ ¸¿ª» °®»ª·±«´§ ®»½»·ª»¼ ¿² »¨»³°¬·±² ¸±«´¼ ²± ´±²¹»® ¾» »´·¹·¾´» º±® ¿¼¼·¬·±²¿´ »¨»³°¬·±²ò Û¨»³°¬·±² ¸±«´¼ ½±²¬·²«» º±® °®±°»®¬·» ¬¸¿¬ ¸¿ª» ²±¬ ¾»»² »¨»³°¬ º±® ïë §»¿®ò Î»³±ª» »¨»³°¬·±² º®±³ °®±°»®¬·» ²± ´±²¹»® »´·¹·¾´»ò ì AGENDA INFORMATION SHEET AGENDA DATE: September 1, 2009 DEPARTMENT: Planning ACM: Fred Greene SUBJECT 2009 Annexation Plan Priority Ranking of Potential Annexation Areas Receive a briefing, hold a discussion and give staff direction regarding the priority rankings of proposed annexation areas associated with the City of Denton Growth Management Strategies Plan. This plan identifies (ETJ) that are considered potential annexation areas. BACKGROUND On Tuesday, March 10, 2009, staff presented twenty two (22) potential annexation areas to the City Council during a work session. The potential annexation areas were derived through a study conducted by Freese and Nichols, Inc. (FNI). During the presentation, it was determined that three (3) of the twenty two (22) areas were encumbered with Annexation Agreements. As such, they were eliminated from consideration, leaving a total of nineteen (19) potential areas. Five (5) of the 19 remaining potential annexation areas are located in the northwestern quadrant (ETJ) and contain a total of 7,855 acres (Please see Exhibit 1). The other fourteen (14) areas are surrounded by the City and referred to as "donut holes. These areas are also ETJ and contain 3,786 acres (Please see Exhibit 2). At the conclusion of the March 10, 2009 City Council work session, City staff was directed to develop a prioritization ranking of the 19 potential annexation areas for a future presentation to City Council. RANKING METHODOLOGY Staff initially formulated a ranking system of the potential annexation areas that was geared predominantly towards the cost of providing City services to the areas. However, during a June 19, 2009 meeting among City staff and a representative from FNI, it was determined that other important attributes in addition to the cost of providing City services should be factored into the ranking methodology. As such, staff reverted to the goals that were identified during the March 10, 2009 City Council work session for guidance. The goals identified are as follows: Protect the North Interstate 35 corridor; West L; Manage growth in the ; Manage land-uses/types of development; Create a logical and contiguous city boundary; and, Provide future growth areas as recommended in the Denton Plan. Using the above goals as a guide, it was determined that the following criteria would be factored into the ranking methodology: Cost to provide services 1. FNI utilized the data obtained from several City departments (Fire, Police, Water, Waste Water, Parks, Solid Waste, Code Enforcement) to compile a ranking for each area; Corridor protection ( 2.Corridor protectionnorth Interstate 35West L) was the primary factor in rankings for this item, as the areas had previously been vetted for Certificate of Convenience and Necessity (CCN) issues; Growth management 3.FNI reviewed the Annexation Strategies outlined in the Denton Plan and provided a score for each area based on conformance with the approaches identified; and, Create a logical and contiguous city boundary 4.All of the proposed growth areas are contiguous to the current city boundary. FNI utilized this item to distinguish the growth areas from the in-fill properties. The above criteria were assigned a score of 0-5. Each potential annexation area was then ranked by their total score, ranging from 0 to 20. The lower score means that the area is considered to be a higher priority for annexation. On August 26, 2009 staff met and discussed the results of the priority ranking. During the discussion, it was determined that PAA2 should be divided into two (2) sub-areas (PAA2 North & PAA2 South). Each sub-area was then ranked separately with PAA2N retaining a low ranking while PAA2S was ranked high. PAA2S was ranked high to provide growth management protections and land-use control along proposed West Loop 288. The dividing line of PAA2 is set along Hwy. 1137. The following is a summary of the priority ranking of the potential annexation areas: High Priority Medium Priority Low Priority PAA2S, PAA3, PAA4 Donut Hole 4, 6, 8, 10, 11 PAA1, PAA2N & PAA5 Donut Hole 1, 2, 3, 5 & & 14 Donut Hole 9, 12, & 13 7 A detailed ranking matrix of the potential annexation areas is provided as Exhibit 3. A map showing all the potential annexation areas with priority ranking is also provided as Exhibit 4. Page - 2 ANNEXATION PURPOSE The purpose of the proposed annexation is to meet the population and development growth projections that are anticipated by the 1999-2020 Comprehensive Plan of the City of Denton (Denton Plan). 39,695 acres. To accommodate future population and development growth, the Denton Plan anticipates required acreages and their associated land-uses are identified in the following table. The anticipated 27,100 additional Anticipated Land-Uses Required Acreages acres are based on population Single-family development 15,000 acres projections and an average density of Multi-family development 1,200 acres 2,250 people per square mile (640 acres). Per the Denton Plan, the total Industrial development 3,000 acres anticipated land area required to Commercial development 3,200 acres accommodate future population and development is 66,795 acres Institutional development 2,700 acres (39,695+27,100). Current land area Total27,100 acres within the City is 57,133 acres,which is 9,661 acres below that which is anticipated by the Denton Plan. Element Two of th states: nd when a property is located within the designated urbanizing area; is expected to accommodate urban growth in the next twenty years; and if the annexation is contiguous to existing city limits, city roads and rights-of- FINDING Annexation Policy Plan. Additional factors that were considered in selecting the potential annexation areas include: Physical features (creeks, railroads, roadways, etc.); Property configuration boundaries; Extent of recent development activity; and Limited number of gas wells. Page - 3 APPLICABILITY OF THE TEXAS LOCAL GOVERNMENT CODE Maximum Amount of Annexation Permitted: Texas Local Government Code (Tx.LGC) §43.055 allows a municipality to involuntarily annex st up to 10% of the incorporated area as of January 1 of the current calendar year, plus any unused Nevertheless, involuntary annexation st may not exceed 30% of the incorporated area as of January 1 of the current year. The incorporated area on January 1, 2009 was 56,391 acres. FINDING: The City can involuntarily annex approximately 16,917 acres (30% of 56,391). Municipal Annexation Plan Required: Tx.LGC §43.052 establishes the conditions for when an Annexation Plan is required. However, per §43.052.(h).(1), an Annexation Plan is not required if the area contains fewer than 100 separate tracts of land on which one or more residential dwellings are located on each tract. FINDING: Based on initial analysis, it appears that donut holes 7, 9 and 12 have more that 100 separate tracts of land on which one (1) or more residential dwellings are located on each tract. If these areas are selected for annexation, additional research will be done to determine if they contain fewer than one hundred (100) separate tracts of land on which one (1) or more residential dwellings are located on each tract. All areas that contain more than one hundred (100) separate tracts of land on which one or more residential dwellings are located on each tract will require an Annexation Plan in accordance with TLGC 43.052. Agricultural/Wildlife or Timber Land: Per Tx.LGC §43.035, a municipality may not annex areas appraised for agricultural, wildlife management, or as timber land use unless: (1)The municipality offers a development agreement under Section 212.172 (see Exhibit 6); (A)Agreement must guarantee the continuation of ETJ status; (B)Enforcement of regulations and planning authority cannot interfere with the agricultural, wildlife management or timberland use; and (2)The landlord declines to make the agreement. FINDING: All five (5) of the potential annexation areas in the northwestern quadrant (PAA1, all of PAA2, PAA3, PAA4 and PAA5) include some form of agricultural use on some of the parcels. Therefore, further study is required to determine what parcels within these areas will be subject to the requirements of Tx.LGC §43.035. The conditions stated in §43.035 are void if the landowner files any type of subdivision plat or related development document for the area. A development agreement described by this section is not a permit for purposes of Chapter 245 of the Tx.LGC. Page - 4 RECOMMENDATION Guided by the Denton Plan, Texas Local Government Code, and the previously mentioned goals and factors, s agreements 15, 16, & 17), PAA2S, PAA3 and PAA4 be annexed. These areas are illustrated in Exhibit 7, and contain 10,800 acres, which is 6,117 acres less than the 16,917 acres the City is legally permitted to involuntarily annex per Tx.LGC §43.055. Staff acknowledges that Development Agreements and Annexation Plans will be required for all areas with agricultural activities and all areas containing greater than one hundred (100) separate tracts of land on which one (1) or more residential dwellings are located on each tract. EXHIBITS 1.Exhibit 1 Potential Annexation Areas Map (Northwestern Quadrant) 2.Exhibit 2 Potential Annexation Areas Map Unincorporated Area Pockets 3.Exhibit 3 Detail Ranking Matrix 4.Exhibit 4 Potential Annexation Areas Ranking Map Combined Areas 5.Exhibit 5 Potential Annexation Areas Lot Count and Acreage 6.Exhibit 6 Texas Local Government Code Section 212.172 7.Exhibit 7 Areas Recommend for Annexation 8.Exhibit 8 Areas Not Currently Recommend for Annexation Prepared by: Mark A. Cunningham, AICP Director, Planning and Development Division Respectfully submitted: Fred Greene Assistant City Manager Page - 5 EXHIBIT 1 Potential Annexation Areas Northwestern Quadrant Priority Ranking Page - 6 EXHIBIT 2 Potential Annexation Areas Priority Ranking Page - 7 EXHIBIT 3 Detail Ranking Matrix North Western Quadrant Areas PAA1 *PAA2 PAA3 PAA4 PAA5 Cost of Service 5 4 4 4 4 Corridor Protection 3 3 0 0 5 Growth Management 1 1 1 1 1 City Boundary 0 0 0 0 0 Total 9 8 5 5 10 Donut Holes Areas 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Cost of Service 3 2 2 3 0 1 3 0 3 2 2 3 4 2 Corridor Protection 4 4 2 2 4 5 5 5 5 3 3 3 5 5 Growth Management 2 3 1 1 1 1 1 3 3 4 4 4 5 1 City Boundary 0 0 5 5 5 5 0 5 5 5 5 5 5 5 Total 9 9 10 11 10 12 9 13 16 14 14 15 19 13 Legend: High Priority Medium Priority Low Priority * Note: After further analysis and staff discussion, PAA2 was divided into two (2) sub-areas PAA2N and PAA2S. PAA2N retained a low ranking while PAA2S was ranked high to protect development along proposed W. Loop 288. The illustration to the right shows the subdivision of this potential annexation area. Page - 8 EXHIBIT 4 Potential Annexation Areas Combined Areas Priority Ranking Page - 9 EXHIBIT 5 Potential Annexation Areas Lot Count and Acreage Areas with Restrictive Covenants Donut Holes (Will not be Annexed) ID Acreages No. of Lots ID Acreages No. of Lots 1 311.69 10 15 122.62 16 2 255.89 66 16 82.78 8 3 417.42 42 17 510.68 19 4 335.45 39 Total 716.08 43 5 307.11 33 6 9.12 17 Additional research required 411 7 141.37 to determine if the potential 8 28.07 17 annexation areas designated with blue font contain more 9 297.51 154 than 100 separate tracts of 10 87.06 22 land on which one or more 51 residential dwellings are 11 386.70 located on each tract ( TLGC 12 1,166.80 224 ). 43.052 13 16.16 2 14 26.33 14 Total 3,786.68 1,102.00 Northwestern Quadrant ID Acreages No. of Lots PAA1 1,165 59 PAA2 2,277 165 PAA3 1,090 51 PAA4 1,558 103 PAA5 1,765 96 Total 7,855 474 Potential Annexation Areas Subtotal of Annexable Areas (Annexable and Restricted Areas) Acreages No. of Lots Acreages No. of Lots Sub Grand total 11,641.68 1,576.00 Total 12,357.76 1,619.00 Page - 10 EXHIBIT 6 Texas Local Government Code Section 212.172 Development Agreement § 212.172.Development Agreement . (a)In this subchapter, "extraterritorial jurisdiction" means a municipality's extraterritorial jurisdiction as determined under Chapter 42. (b) The governing body of a municipality may make a written contract with an owner of land that is located in the extraterritorial jurisdiction of the municipality to: (1)guarantee the continuation of the extraterritorial status of the land and its immunity from annexation by the municipality for a period not to exceed 15 years; (2)extend the municipality's planning authority over the land by providing for a development plan to be prepared by the landowner and approved by the municipality under which certain general uses and development of the land are authorized; (3)authorize enforcement by the municipality of certain municipal land-use and development regulations in the same manner the regulations are enforced within the municipality's boundaries; (4)authorize enforcement by the municipality of land-use and development regulations other than those that apply within the municipality's boundaries, as may be agreed to by the landowner and the municipality; (5)provide for infrastructure for the land, including: (A) streets and roads; (B) street and road drainage; (C) land drainage; and (D) water, wastewater, and other utility systems; (6) authorize enforcement of environmental regulations; (7) provide for the annexation of the land as a whole or in parts and to provide for the terms of annexation, if annexation is agreed to by the parties; (8) specify the uses and development of the land before and after annexation, if annexation is agreed to by the parties; or (9) include other lawful terms and considerations the parties consider appropriate. (c) An agreement under this subchapter must: (1) be in writing; (2) contain an adequate legal description of the land; (3) be approved by the governing body of the municipality and the landowner; and Page - 11 (4) be recorded in the real property records of each county in which any part of the land that is subject to the agreement is located. (d) The parties to a contract may renew or extend it for successive periods not to exceed 15 years each. The total duration of the original contract and any successive renewals or extensions may not exceed 45 years. (e) A municipality in an affected county, as defined by Section 16.341, Water Code, may not enter into an agreement under this subchapter that is inconsistent with the model rules adopted under Section 16.343, Water Code. (f) The agreement between the governing body of the municipality and the landowner is binding on the municipality and the landowner and on their respective successors and assigns for the term of the agreement. The agreement is not binding on, and does not create any encumbrance to title as to, any end-buyer of a fully developed and improved lot within the development, except for land use and development regulations that may apply to a specific lot. (g) An agreement under this subchapter constitutes a permit under Chapter 245. (h) An agreement between a municipality and a landowner entered into prior to the effective date of this section and that complies with this section is validated. Added by Acts 2003, 78th Leg., ch. 522, § 1, eff. June 20, 2003. Page - 12 Exhibit 7 Areas Recommended for Annexation Page - 13 Exhibit 8 Areas Not Currently Recommend for Annexation Page - 14 2009 ANNEXATION SCHEDULE (Revised 8/11/09) 9/1/2009 Tuesday, City Council Work Session Present priority ranking of potential annexation areas nd 9/15/2009 Tuesday, 2 City Council Work Session (if needed) st 9/18/2009 Friday, Mail Notice of Intent to Annex (must be sent 30 days prior to 1 public hearing) st 10/20/2009 Tuesday, City Council 1 public hearing Public notice must be given no less than 10 days and no more than 20 days before public hearing. Annexation Study prepared and available for public review. Service Plan prepared and available for public review. nd 11/3/2009 Tuesday, City Council 2 public hearing Public notice must be given no less than 10 days and no more than 20 days before public hearing. 11/4/2009 Wednesday, P&Z Work Session (Courtesy to the P&Z) 11/24/2009 Tuesday, City Council by a four-fifths vote institutes annexation SPECIAL CALLED MEETING proceedings. st 1 reading of annexation ordinance nd Action must be more than 20 days after the 2 public hearing st but less than 40 days from the 1 public hearing. 12/1/2009 Sunday, Ordinance published in Denton Record Chronicles The ordinance cannot be acted upon until at least 30 days after publication. nd 2/2/2010 Tuesday, City Council by a four-fifths vote takes final action. 2 reading and adoption of the annexation ordinance Council action must be more than 30 days after publication of ordinance and less than 90 days after council institutes st annexation proceedings (adopts ordinance on 1 reading). The Tuesday, second reading of the ordinance is scheduled on February 2, 2010 . The 2010 calendar has not been created as of yet. However, based on the 2009 calendar, a CC meeting should take place on this date. Annexations must be rigidly coordinated in conjunction with the City Council public hearing schedule due to specific timing mandates established by Texas State Law. The Texas Local st Government Code requires that City Council institute annexation proceedings (1 Reading of the 20 days after the second City Council public hearing but less than 40 Ordinance) more than st days from the 1 City Council public hearing. AGENDA INFORMATION SHEET AGENDA DATE: September 1, 2009 DEPARTMENT: Parks and Recreation ACM: Fred Greene SUBJECT Book a Day as the most recent public art for the City of Denton. The total cost of the two sculptures is $14,800.00 and will be paid from the Hotel/Motel Occupancy Tax (HOT) funds. The Parks, Recreation and Beautification Board recommend artist approval with a vote of 4-0. BACKGROUND On April 18, 2006, City Council established and appointed a Public Art Committee that serves in an advisory capacity to the Parks, Recreation and Beautification Board. This Public Art Committee, established by separate ordinance, will make recommendations on the: Commissioning, placing, and installing of public art Implementation of funding mechanism(s) for public art Effective and efficient management of public art Ongoing maintenance of public art Accessioning, deaccessioning and resiting of public art The bronze sculptures of a little girl and boy reading books will be placed on a bench and located at the newly renovated South Branch Library. The dimensions of the boy sculpture are H x 40 x 20 weigh 100 lbs. The Book a Day sculptures are from a series of 50 individual works by Ms. Sandifer. The sculptures are ready for purchase and do not require production time. RECOMMENDATION Staff recommends City Council approve Rosie Sandifer as the artist for the most recent public art sculpture for the City of Denton. PRIOR ACTION/REVIEW (Council, Boards, Commissions) Public Art Committee made recommendation of artist on July 9, 2009. A representative from the Library Board was included in the art selection process. Parks, Recreation and Beautification Board made recommendation of artist selection on August 3, 2009. FISCAL INFORMATION The Book a Day sculptures of the little girl and boy each reading a book will cost $14,800. A bench for the sculptured children to sit upon with installation costs will be funded from the 2009 HOT Funds. There is $30,784.00 budgeted for Public Art in HOT funds. EXHIBITS 1.Public Art Committee Meeting Minutes of July 9, 2009 2.Parks, Recreation and Beautification Board Meeting Minutes of August 3, 2009 3.Photograph of Sculptures Respectfully submitted: Emerson Vorel Director Submitted by: Janie McLeod Community Events Coordinator Public Art Committee Minutes July 9, 2009 Civic Center Conference Room Members present: Cheryl Key, Joy Siegmund, Robyn Lee, Jo Williams, Margaret Chalfant, Carol Collins and Jack Davis. Members absent: Carol Phillips. Staff present: Emerson Vorel and Janie McLeod. Chair Jo Williams called the meeting to order at 4:04 p.m. Approval of Minutes of June 11, 2009 . The minutes were approved with changes by a motion made by Joy and seconded by Robyn. The motion passed with a vote of 7-0. ACTION ITEMS Expenditure of Balance of the 2008-09 HOT Funds - Jack shared information regarding the proposed purchase of Carlotta 3,500 each. Joy discussed artist Rosie A Book a Daysculptures of a boy and girl reading books. Joy said both sculptures would cost a total of $14,800 which includes shipping and uncrating costs. ACTION : Cheryl made a motion to purchase a Carlotta Corpron photo and Rosie sculpture A Book A Day with girl and boy reading a book. Carol Collins seconded the motion and the motion passed with a vote of 7-0. DISCUSSION ITEMS Additional Funds Available in 2009-10 Emerson said that there is approximately $6,000.00 remaining in a trust account that was designated for art at the Denton Municipal Complex (now named City Hall East). At the August meeting, the Committee discussed purchasing more photographs by Ms. Corpron There being no further business, the meeting was adjourned at 4:58 p.m. **** Note to Board At the June 11, 2009 PAC meeting, the Committee voted to provide funding from the 2009 HOT funds for necessary work for the three Fry Street Mural pieces that had been recently moved to the Center for the Visual Arts. Margaret rescinded her request for the funds per her email dated July 16, 2009. 1 DRAFT Parks, Recreation and Beautification Board 2 Minutes 3 4 August 3, 2009 5 Civic Center Conference Room 6 7 Members present : Carol Brantley, Allyson Coe, Dale Conway, Jo Kuhn 8 Members absent: Reggie Heard, Ross Richardson, Jennifer Wages 9 Staff present: Emerson Vorel, Cindy Deckard, Amanda Green, Jim Mays, Kathy Schaeffer, Bob Tickner, Mary 10 Aukerman 11 12 Chairperson Jo Kuhn called the meeting to order at 6:01 p.m. 13 14 AWARDS AND RECOGNITIONS: Emerson Vorel presented Jo Kuhn with a dedicated service award for the 15 years 2003-2009. Emerson thanked her for her participation on the Board for so many years. 16 17 APPROVAL OF MINUTES OF April 6, 2009 MEETING: Chairperson Jo Kuhn asked for any corrections or 18 amendments to the minutes. Hearing none the minutes stand approved as presented. 19 20 ACTION ITEMS: 21 f 22 23 seconded the motion and the agenda was amended. 24 25 2009-2010 Fee Ordinance a) The City of Denton Budget department asked for proposed 1% to 5% reduction 26 for the 2009-2010 fiscal year. In order to offset the reduction, the Parks & Recreation Department looked for 27 items that would increase revenue without impacting all citizens. Some of the proposed increases are for the 28 establishment of a Quakertown Park rental fee, which has not been required in the past; a regional park rental 29 fee for North and South Lakes Parks for special events; a Tennis Center Tournament rental rate; and a Special 30 Events Application Fee. Increases include rates for gyms, kitchens and meeting room rentals in rec centers; 31 athletic field and lighted tennis court rentals; after hour Water Park rentals; the Civic Center Rotunda rental 32 rates and the Senior Center multipurpose room rental rates. Some discussion was held regarding the Athletic 33 Impact Fee being increased by $5, which helps offset the cost of maintaining the fields. Amanda Green told 34 the Board that Board member Jennifer Wages, who could not be present, called her to voice her concerns that 35 the increase in the Athletic Impact Fee may preclude some youth from participating in sports. During their 36 discussion, the exploration of additional scholarships through the Park Foundation was offered as a possible 37 alternative for some players. When asked how our fees compare to that of North Texas Fairgrounds, Janie 38 explained that because it is a totally enclosed area, it is significantly higher than any of our parks or facilities 39 and that an entrance can be charged there as well. 40 41 MOTION: Jo asked for a motion recommending the approval of the ordinance amending Section 22-38 of 42 Chapter 22 (Parks and Recreation) of the Code of Ordinances of the City of Denton, Texas, relating to 43 facility and program fees by adopting a revised Schedule of Fees; which will repeal all fees in conflict with 44 the new schedule; will repeal the existing Ordinance No. 2007-267 and all other ordinances that are in 45 conflict with the new Schedule of Fees. Dale made a motion to recommend the acceptance of the changes to 46 the fee schedule for the 2009-2010 budget; Allyson seconded the motion and it passed with a vote of 4-0. . 47 48 Sale of Alcohol for Blues Festival b) A request from the Black Chamber of Commerce to be the sole th 49 proprietor to sell alcoholic beverages at the 11 annual Blues Festival came was presented to the Board for 50 their approval. This request is consistent with other music events held in Quakertown Park. 51 52 MOTION: Jo asked for a motion recommending to the City Council that the Denton Black Chamber of th 53 Commerce be the sole participant allowed to sell alcoholic beverages at the 11 Annual Blues Festival to 14 August 3, 2009 Page of 1 be held in Quakertown Park on Saturday, September 19, 2009, from 1:00 p.m. until 11:00 p.m. Carol made 2 a motion to that affect; Allyson seconded the motion and it passed with a vote of 4-0. 3 4 Harmony - Public Art Sculpture at South Lakes Park c) The Public Art Committee recommends the 5 sculpture Harmony by George Caddell be approved to be placed at South Lakes Park by the trail. The 6 sculpture of two herons, which will turn independently of each other as the wind blows, is approximately eight 7 feet in height and weighs close to 600 pounds. It will be located by the walking path in South Lakes Park on 8 Teasley Lane near Long Ridge. 2010 HOT Funds will pay for the sculpture, two benches for visitors to sit and 9 enjoy the piece, and native grass to enhance the area. 10 11 MOTION: Jo asked for a motion recommending to City Council the selection of George Cadell as the artist 12 for the sculpture of two herons to be located in South Lakes Park. Allyson made a motion to recommend 13 the sculpture; Carol seconded the motion and it passed with a vote of 4-0. 14 15 Book a Day Boy and Girl Sculptures for South Branch Library Public Art d) The Public Art 16 Committee is recommending the approval of their selection of Book a Day bronze 17 sculptures reading a book, one of a boy and one of a girl, to be purchased from the 2009 HOT funds for 18 the South Branch Library. These pieces are part of a series of 50 sculptures that Ms. has made. 19 A bench to set the sculptures on will also be purchased with 2009 HOT funds. 20 21 MOTION: Jo asked for a motion to recommend to City C 22 Book a Day bronze sculptures, one of a boy and one of a girl, reading a book as public art for South 23 Branch Library. Dale made a motion to recommend the purchase of the sculptures and bench to City 24 Council; Carol seconded the motion and it passed with a vote of 4-0 25 26 Summer Haze - Public Art Watercolor for South Branch Library e) The Public Art Committee 27 subcommittee selected Summer Haze watercolor painting for placement at the South Branch 28 Library. e passed away and that 29 his widow is pleased that his work is being recommended for the library. Purchase of this piece will be 30 with 2009 HOT Funds. 31 32 MOTION: Jo asked for a motion to recommend to City Council the 33 Summer Haze watercolor painting for the South Branch Library. 34 Allyson made a motion recommending the painting be accepted, Dale seconded the motion and it passed with 35 a vote of 4-0. 36 37 Public Art for City Hall East f) The Public Art Committee recommends that one of photographer Carlatta 38 39 measures 14 x 1 40 work is well known in the art world. Purchase of this photograph will be with 2009 HOT Funds. 41 42 MOTION: Jo asked for a motion recommending the approval of the Public Art Co 43 for public art in City Hall East, namely the black and white photo from Carlatta Corpron, Allyson made the 44 motion as presented, Dale seconded the motion and it passed with a vote of 4-0. 45 46 DISCUSSION ITEMS : 47 a) Alcohol Ordinance Revised The current ordinance for alcohol in City parks still has Quakertown Park 48 listed as Civic Center Park, which will be changed, and the approval process for rentals at the Civic Center 49 needs to be clarified. The Senior Center Advisory Board has asked that alcohol rentals no longer be 50 permitted in the Senior Center, as damage is being done to the wood floors which are expensive to fix. 51 The Senior Center will be removed from the ordinance as a location for alcohol events. The Park Board is 52 being asked to review the changes made on the attached ordinance and make recommendations to the City 53 Council in an Action Item at the September Park Board meeting. 54 24 August 3, 2009 Page of 1 b) Cemetery Ordinance Revised When an old structure was torn down it presented an opportunity to open a 2 new section of the IOOF Cemetery for the City to sell lots. Currently, the only lots available are those 3 sold by families owning the lots. Due to infractions to the existing ordinance, the cemetery ordinance was 4 revised to include fines for those not obtaining a permit before a burial or the placement of a monument in 5 both of the City cemeteries. Section 2 of the ordinance has been revised to include fees for the purchase of 6 the new lots, increased the fees for existing lots, added a fee for the purchase of lots for the burial of 7 cremation ashes, and restated the internment and concrete work permit fees as well as provides the late fee 8 for failure to obtain these permits in advance. Obtaining the permits is the responsibility of the funeral 9 home or monument company and is imperative to keeping accurate records for the cemeteries. The Park 10 Board is being asked to review the changes to the attached ordinance in able to take action on it at the 11 September Park Board Meeting. 12 13 Before moving on with the rest of the meeting, Emerson wanted to acknowledge two guests that came in after 14 the meeting started. The first citizen said that she came only to observe to see if she was interested in volunteering 15 to be a member of the Park Board. Jo told her that Emerson could help her with that. 16 17 Mr. David Hiegel asked to address the Board. He started by saying that he and his wife Cindy live on Hillcrest 18 Street, just behind McKenna Park, and his concern is with the Special Use Permit for gas wells that City Council is th 19 voting on at the meeting on August 4. He would like the Park Board to issue a courtesy note to the City Council 20 21 to McKenna Park being in the immediate area of the proposed gas wells. 22 23 Emerson pointed out that, since Mr. Hiegel and his concern were not part of the agenda, we could not violate the 24 Open Meeting Act and take action on his request. Emerson did suggest that individual members of the Park Board 25 express their thoughts, concerns, support to the City Council if they were so inclined. Mr. Hiegel thanked the 26 Board for their time. 27 28 PARKS PROJECT STATUS REPORT 29 Briercliff Park Design and Development Project The bid for this project is being awarded to Jones & th 30 Jefferies at the August 4 City Council meeting. 31 32 Denia Park Trail Project Progress on this project is being made to the extent that it is about half finished. 33 34 Denton Branch Rail Trail Bridges Project The plans for this project are still in the legal process with 35 DCTA. Bob pointed out that he was getting calls regarding the trees that have been removed from the area. Jo 36 said that she had gotten calls as well. Bob said that once we make people aware that we are getting a new trial, 37 they seem to be okay with it. 38 Neighborhood Park Design: Preserve @ Pecan Creek, Owsley Park and Wheeler Ridge Cindy said that th 39 the Contract for Professional Services will go to Council on August 18 and is being awarded to Halff and 40 Associates. 41 42 North Lakes Adult Soccer Field Development Project A contract is in the works for Jacobs Engineering th 43 Group to design this project and will go to Council on the next meeting after the August 18 meeting. 44 45 Senior Center Renovation and Expansion Project Emerson said that the contractor is great and that the 46 addition is almost completed, with a move into that structure slated for September. After that, work on the 47 existing structure will begin. 48 49 Unicorn Lake Trail and Landscape Project The bridge was delivered to the site in two pieces, but the rain 50 has kept it from being set. 51 52 KEEP DENTON BEAUTIFUL UPDATE 53 No comments were expressed on the update. 54 34 August 3, 2009 Page of 1 PUBLIC ART COMMITTEE MEETING MINUTES 2 As most of the items were covered as Action Items, no additional comments were expressed. 3 4 ITEMS FOR UPCOMING MEETINGS: 5 The revised Alcohol and Cemetery Ordinances will be Action Items on the September 2009 agenda. 6 7 With no further business on the agenda, Jo asked for a motion to adjourn; Carol made the motion to 8 adjourn, Allyson seconded the motion and the meeting was adjourned at 6:56 p.m. 44 August 3, 2009 Page of AGENDA INFORMATION SHEET AGENDA DATE: September 1, 2009 DEPARTMENT: Parks and Recreation ACM: Fred Greene SUBJECT k and white Flowing Light Images as public art for the City of Denton at a cost of $3,500.00, which will be paid from the 2009 Hotel/Motel Occupancy Tax (HOT) funds. The Parks, Recreation and Beautification Board recommend artist approval with a vote of 4-0. BACKGROUND On April 18, 2006, City Council established and appointed a Public Art Committee that serves in an advisory capacity to the Parks, Recreation and Beautification Board. This Public Art Committee, established by separate ordinance, will make recommendations on the: Commissioning, placing, and installing of public art Implementation of funding mechanism(s) for public art Effective and efficient management of public art Ongoing maintenance of public art Accessioning, deaccessioning and resiting of public art The Public Art Committee recommended the purchase of significant historical art pieces from local artists. The committee recommended one of white flowing light photographs be purchased and exhibited in City Hall East. The artist accomplishes the unique photographs by leaving the camera shutter open to create complex spirals and rushing lines of light. The photograph measures 14 x 11 and cost $3,500. ity from1935 through 1968. Her work is included in collections of the Museum of Modern Art in New York City, the Art Institute of Chicago, the New Orleans Museum of Art, the Dallas Museum of Art, and the Amon Carter Museum in Fort Worth. RECOMMENDATION Staff recommends that City Council approve one of s Flowing Light Images as public art for the City of Denton. PRIOR ACTION/REVIEW (Council, Boards, Commissions) Public Art Committee made recommendation of artist selection on July 9, 2009. Parks, Recreation and Beautification Board made recommendation of artist selection on August 3, 2009. FISCAL INFORMATION Ms. Corpron black and white photograph will cost $3,500.00 and will be funded from the 2009 HOT Funds. There is $30,784.00 budgeted for Public Art in HOT funds. EXHIBITS 1.Public Art Committee Meeting Minutes of July 9, 2009 2.Parks, Recreation and Beautification Board Meeting Minutes of August 3, 2009 3.Photograph of the Art Work Respectfully submitted: Emerson Vorel Director Submitted by: Janie McLeod Community Events Coordinator Public Art Committee Minutes July 9, 2009 Civic Center Conference Room Members present: Cheryl Key, Joy Siegmund, Robyn Lee, Jo Williams, Margaret Chalfant, Carol Collins and Jack Davis. Members absent: Carol Phillips. Staff present: Emerson Vorel and Janie McLeod. Chair Jo Williams called the meeting to order at 4:04 p.m. Approval of Minutes of June 11, 2009 . The minutes were approved with changes by a motion made by Joy and seconded by Robyn. The motion passed with a vote of 7-0. ACTION ITEMS Expenditure of Balance of the 2008-09 HOT Funds - Jack shared information regarding the proposed purchase of Carlotta 3,500 each. Joy discussed artist Rosie A Book a Daysculptures of a boy and girl reading books. Joy said both sculptures would cost a total of $14,800 which includes shipping and uncrating costs. ACTION : Cheryl made a motion to purchase a Carlotta Corpron photo and Rosie sculpture A Book A Day with girl and boy reading a book. Carol Collins seconded the motion and the motion passed with a vote of 7-0. DISCUSSION ITEMS Additional Funds Available in 2009-10 Emerson said that there is approximately $6,000.00 remaining in a trust account that was designated for art at the Denton Municipal Complex (now named City Hall East). At the August meeting, the Committee discussed purchasing more photographs by Ms. Corpron There being no further business, the meeting was adjourned at 4:58 p.m. **** Note to Board At the June 11, 2009 PAC meeting, the Committee voted to provide funding from the 2009 HOT funds for necessary work for the three Fry Street Mural pieces that had been recently moved to the Center for the Visual Arts. Margaret rescinded her request for the funds per her email dated July 16, 2009. 1 DRAFT Parks, Recreation and Beautification Board 2 Minutes 3 4 August 3, 2009 5 Civic Center Conference Room 6 7 Members present : Carol Brantley, Allyson Coe, Dale Conway, Jo Kuhn 8 Members absent: Reggie Heard, Ross Richardson, Jennifer Wages 9 Staff present: Emerson Vorel, Cindy Deckard, Amanda Green, Jim Mays, Kathy Schaeffer, Bob Tickner, Mary 10 Aukerman 11 12 Chairperson Jo Kuhn called the meeting to order at 6:01 p.m. 13 14 AWARDS AND RECOGNITIONS: Emerson Vorel presented Jo Kuhn with a dedicated service award for the 15 years 2003-2009. Emerson thanked her for her participation on the Board for so many years. 16 17 APPROVAL OF MINUTES OF April 6, 2009 MEETING: Chairperson Jo Kuhn asked for any corrections or 18 amendments to the minutes. Hearing none the minutes stand approved as presented. 19 20 ACTION ITEMS: 21 f 22 23 seconded the motion and the agenda was amended. 24 25 2009-2010 Fee Ordinance a) The City of Denton Budget department asked for proposed 1% to 5% reduction 26 for the 2009-2010 fiscal year. In order to offset the reduction, the Parks & Recreation Department looked for 27 items that would increase revenue without impacting all citizens. Some of the proposed increases are for the 28 establishment of a Quakertown Park rental fee, which has not been required in the past; a regional park rental 29 fee for North and South Lakes Parks for special events; a Tennis Center Tournament rental rate; and a Special 30 Events Application Fee. Increases include rates for gyms, kitchens and meeting room rentals in rec centers; 31 athletic field and lighted tennis court rentals; after hour Water Park rentals; the Civic Center Rotunda rental 32 rates and the Senior Center multipurpose room rental rates. Some discussion was held regarding the Athletic 33 Impact Fee being increased by $5, which helps offset the cost of maintaining the fields. Amanda Green told 34 the Board that Board member Jennifer Wages, who could not be present, called her to voice her concerns that 35 the increase in the Athletic Impact Fee may preclude some youth from participating in sports. During their 36 discussion, the exploration of additional scholarships through the Park Foundation was offered as a possible 37 alternative for some players. When asked how our fees compare to that of North Texas Fairgrounds, Janie 38 explained that because it is a totally enclosed area, it is significantly higher than any of our parks or facilities 39 and that an entrance can be charged there as well. 40 41 MOTION: Jo asked for a motion recommending the approval of the ordinance amending Section 22-38 of 42 Chapter 22 (Parks and Recreation) of the Code of Ordinances of the City of Denton, Texas, relating to 43 facility and program fees by adopting a revised Schedule of Fees; which will repeal all fees in conflict with 44 the new schedule; will repeal the existing Ordinance No. 2007-267 and all other ordinances that are in 45 conflict with the new Schedule of Fees. Dale made a motion to recommend the acceptance of the changes to 46 the fee schedule for the 2009-2010 budget; Allyson seconded the motion and it passed with a vote of 4-0. . 47 48 Sale of Alcohol for Blues Festival b) A request from the Black Chamber of Commerce to be the sole th 49 proprietor to sell alcoholic beverages at the 11 annual Blues Festival came was presented to the Board for 50 their approval. This request is consistent with other music events held in Quakertown Park. 51 52 MOTION: Jo asked for a motion recommending to the City Council that the Denton Black Chamber of th 53 Commerce be the sole participant allowed to sell alcoholic beverages at the 11 Annual Blues Festival to 14 August 3, 2009 Page of 1 be held in Quakertown Park on Saturday, September 19, 2009, from 1:00 p.m. until 11:00 p.m. Carol made 2 a motion to that affect; Allyson seconded the motion and it passed with a vote of 4-0. 3 4 Harmony - Public Art Sculpture at South Lakes Park c) The Public Art Committee recommends the 5 sculpture Harmony by George Caddell be approved to be placed at South Lakes Park by the trail. The 6 sculpture of two herons, which will turn independently of each other as the wind blows, is approximately eight 7 feet in height and weighs close to 600 pounds. It will be located by the walking path in South Lakes Park on 8 Teasley Lane near Long Ridge. 2010 HOT Funds will pay for the sculpture, two benches for visitors to sit and 9 enjoy the piece, and native grass to enhance the area. 10 11 MOTION: Jo asked for a motion recommending to City Council the selection of George Cadell as the artist 12 for the sculpture of two herons to be located in South Lakes Park. Allyson made a motion to recommend 13 the sculpture; Carol seconded the motion and it passed with a vote of 4-0. 14 15 Book a Day Boy and Girl Sculptures for South Branch Library Public Art d) The Public Art 16 Committee is recommending the approval of their selection of Book a Day bronze 17 sculptures reading a book, one of a boy and one of a girl, to be purchased from the 2009 HOT funds for 18 the South Branch Library. These pieces are part of a series of 50 sculptures that Ms. has made. 19 A bench to set the sculptures on will also be purchased with 2009 HOT funds. 20 21 MOTION: Jo asked for a motion to recommend to City C 22 Book a Day bronze sculptures, one of a boy and one of a girl, reading a book as public art for South 23 Branch Library. Dale made a motion to recommend the purchase of the sculptures and bench to City 24 Council; Carol seconded the motion and it passed with a vote of 4-0 25 26 Summer Haze - Public Art Watercolor for South Branch Library e) The Public Art Committee 27 subcommittee selected Summer Haze watercolor painting for placement at the South Branch 28 Library. e passed away and that 29 his widow is pleased that his work is being recommended for the library. Purchase of this piece will be 30 with 2009 HOT Funds. 31 32 MOTION: Jo asked for a motion to recommend to City Council the 33 Summer Haze watercolor painting for the South Branch Library. 34 Allyson made a motion recommending the painting be accepted, Dale seconded the motion and it passed with 35 a vote of 4-0. 36 37 Public Art for City Hall East f) The Public Art Committee recommends that one of photographer Carlatta 38 39 measures 14 x 1 40 work is well known in the art world. Purchase of this photograph will be with 2009 HOT Funds. 41 42 MOTION: Jo asked for a motion recommending the approval of the Public Art Co 43 for public art in City Hall East, namely the black and white photo from Carlatta Corpron, Allyson made the 44 motion as presented, Dale seconded the motion and it passed with a vote of 4-0. 45 46 DISCUSSION ITEMS : 47 a) Alcohol Ordinance Revised The current ordinance for alcohol in City parks still has Quakertown Park 48 listed as Civic Center Park, which will be changed, and the approval process for rentals at the Civic Center 49 needs to be clarified. The Senior Center Advisory Board has asked that alcohol rentals no longer be 50 permitted in the Senior Center, as damage is being done to the wood floors which are expensive to fix. 51 The Senior Center will be removed from the ordinance as a location for alcohol events. The Park Board is 52 being asked to review the changes made on the attached ordinance and make recommendations to the City 53 Council in an Action Item at the September Park Board meeting. 54 24 August 3, 2009 Page of 1 b) Cemetery Ordinance Revised When an old structure was torn down it presented an opportunity to open a 2 new section of the IOOF Cemetery for the City to sell lots. Currently, the only lots available are those 3 sold by families owning the lots. Due to infractions to the existing ordinance, the cemetery ordinance was 4 revised to include fines for those not obtaining a permit before a burial or the placement of a monument in 5 both of the City cemeteries. Section 2 of the ordinance has been revised to include fees for the purchase of 6 the new lots, increased the fees for existing lots, added a fee for the purchase of lots for the burial of 7 cremation ashes, and restated the internment and concrete work permit fees as well as provides the late fee 8 for failure to obtain these permits in advance. Obtaining the permits is the responsibility of the funeral 9 home or monument company and is imperative to keeping accurate records for the cemeteries. The Park 10 Board is being asked to review the changes to the attached ordinance in able to take action on it at the 11 September Park Board Meeting. 12 13 Before moving on with the rest of the meeting, Emerson wanted to acknowledge two guests that came in after 14 the meeting started. The first citizen said that she came only to observe to see if she was interested in volunteering 15 to be a member of the Park Board. Jo told her that Emerson could help her with that. 16 17 Mr. David Hiegel asked to address the Board. He started by saying that he and his wife Cindy live on Hillcrest 18 Street, just behind McKenna Park, and his concern is with the Special Use Permit for gas wells that City Council is th 19 voting on at the meeting on August 4. He would like the Park Board to issue a courtesy note to the City Council 20 21 to McKenna Park being in the immediate area of the proposed gas wells. 22 23 Emerson pointed out that, since Mr. Hiegel and his concern were not part of the agenda, we could not violate the 24 Open Meeting Act and take action on his request. Emerson did suggest that individual members of the Park Board 25 express their thoughts, concerns, support to the City Council if they were so inclined. Mr. Hiegel thanked the 26 Board for their time. 27 28 PARKS PROJECT STATUS REPORT 29 Briercliff Park Design and Development Project The bid for this project is being awarded to Jones & th 30 Jefferies at the August 4 City Council meeting. 31 32 Denia Park Trail Project Progress on this project is being made to the extent that it is about half finished. 33 34 Denton Branch Rail Trail Bridges Project The plans for this project are still in the legal process with 35 DCTA. Bob pointed out that he was getting calls regarding the trees that have been removed from the area. Jo 36 said that she had gotten calls as well. Bob said that once we make people aware that we are getting a new trial, 37 they seem to be okay with it. 38 Neighborhood Park Design: Preserve @ Pecan Creek, Owsley Park and Wheeler Ridge Cindy said that th 39 the Contract for Professional Services will go to Council on August 18 and is being awarded to Halff and 40 Associates. 41 42 North Lakes Adult Soccer Field Development Project A contract is in the works for Jacobs Engineering th 43 Group to design this project and will go to Council on the next meeting after the August 18 meeting. 44 45 Senior Center Renovation and Expansion Project Emerson said that the contractor is great and that the 46 addition is almost completed, with a move into that structure slated for September. After that, work on the 47 existing structure will begin. 48 49 Unicorn Lake Trail and Landscape Project The bridge was delivered to the site in two pieces, but the rain 50 has kept it from being set. 51 52 KEEP DENTON BEAUTIFUL UPDATE 53 No comments were expressed on the update. 54 34 August 3, 2009 Page of 1 PUBLIC ART COMMITTEE MEETING MINUTES 2 As most of the items were covered as Action Items, no additional comments were expressed. 3 4 ITEMS FOR UPCOMING MEETINGS: 5 The revised Alcohol and Cemetery Ordinances will be Action Items on the September 2009 agenda. 6 7 With no further business on the agenda, Jo asked for a motion to adjourn; Carol made the motion to 8 adjourn, Allyson seconded the motion and the meeting was adjourned at 6:56 p.m. 44 August 3, 2009 Page of AGENDA INFORMATION SHEET AGENDA DATE: September 1, 2009 DEPARTMENT: Parks and Recreation ACM: Fred Greene SUBJECT Summer Haze watercolor painting as public art for the City of Denton. The cost of the painting is $9,500.00 and will be paid from the Hotel/Motel Occupancy Tax (HOT) approval funds. The Parks, Recreation and Beautification Board recommend artist with a vote of 4-0. BACKGROUND On April 18, 2006, City Council established and appointed a Public Art Committee that serves in an advisory capacity to the Parks, Recreation and Beautification Board. This Public Art Committee, established by separate ordinance, will make recommendations on the: Commissioning, placing, and installing of public art Implementation of funding mechanism(s) for public art Effective and efficient management of public art Ongoing maintenance of public art Accessioning, deaccessioning and resiting of public art Summer Haze hang in the South Branch Library. The late Mr. Erdle taught at the University of North Texas and has contributed to the contemporary movement of watercolor painting in the United States and abroad. One of Mr. Erdle paintings hangs in the City Council Work Session Room and was recently returned from loan to the Pearl Fincher Museum of Fine Arts in Spring, Texas, which featured an exhibition of his work. RECOMMENDATION Staff recommends City Council approve of artist Rob Erdle for the public art watercolor painting for the City of Denton. PRIOR ACTION/REVIEW (Council, Boards, Commissions) Public Art Committee made recommendation of artist on July 9, 2009. Parks, Recreation and Beautification Board made recommendation of artist selection on August 3, 2009. FISCAL INFORMATION The Summer Haze painting will cost $9,500.00 and will be funded from the 2009 HOT Funds. There is $30,784.00 budgeted for Public Art in HOT funds. EXHIBITS 1.Public Art Committee Meeting Minutes of July 9, 2009 2.Parks, Recreation and Beautification Board Meeting Minutes of August 3, 2009 3.Photograph of Painting Respectfully submitted: Emerson Vorel Director Submitted by: Janie McLeod Community Events Coordinator Public Art Committee Minutes July 9, 2009 Civic Center Conference Room Members present: Cheryl Key, Joy Siegmund, Robyn Lee, Jo Williams, Margaret Chalfant, Carol Collins and Jack Davis. Members absent: Carol Phillips. Staff present: Emerson Vorel and Janie McLeod. Chair Jo Williams called the meeting to order at 4:04 p.m. Approval of Minutes of June 11, 2009 . The minutes were approved with changes by a motion made by Joy and seconded by Robyn. The motion passed with a vote of 7-0. ACTION ITEMS Expenditure of Balance of the 2008-09 HOT Funds - Jack shared information regarding the proposed purchase of Carlotta 3,500 each. Joy discussed artist Rosie A Book a Daysculptures of a boy and girl reading books. Joy said both sculptures would cost a total of $14,800 which includes shipping and uncrating costs. ACTION : Cheryl made a motion to purchase a Carlotta Corpron photo and Rosie sculpture A Book A Day with girl and boy reading a book. Carol Collins seconded the motion and the motion passed with a vote of 7-0. DISCUSSION ITEMS Additional Funds Available in 2009-10 Emerson said that there is approximately $6,000.00 remaining in a trust account that was designated for art at the Denton Municipal Complex (now named City Hall East). At the August meeting, the Committee discussed purchasing more photographs by Ms. Corpron There being no further business, the meeting was adjourned at 4:58 p.m. **** Note to Board At the June 11, 2009 PAC meeting, the Committee voted to provide funding from the 2009 HOT funds for necessary work for the three Fry Street Mural pieces that had been recently moved to the Center for the Visual Arts. Margaret rescinded her request for the funds per her email dated July 16, 2009. 1 DRAFT Parks, Recreation and Beautification Board 2 Minutes 3 4 August 3, 2009 5 Civic Center Conference Room 6 7 Members present : Carol Brantley, Allyson Coe, Dale Conway, Jo Kuhn 8 Members absent: Reggie Heard, Ross Richardson, Jennifer Wages 9 Staff present: Emerson Vorel, Cindy Deckard, Amanda Green, Jim Mays, Kathy Schaeffer, Bob Tickner, Mary 10 Aukerman 11 12 Chairperson Jo Kuhn called the meeting to order at 6:01 p.m. 13 14 AWARDS AND RECOGNITIONS: Emerson Vorel presented Jo Kuhn with a dedicated service award for the 15 years 2003-2009. Emerson thanked her for her participation on the Board for so many years. 16 17 APPROVAL OF MINUTES OF April 6, 2009 MEETING: Chairperson Jo Kuhn asked for any corrections or 18 amendments to the minutes. Hearing none the minutes stand approved as presented. 19 20 ACTION ITEMS: 21 f 22 23 seconded the motion and the agenda was amended. 24 25 2009-2010 Fee Ordinance a) The City of Denton Budget department asked for proposed 1% to 5% reduction 26 for the 2009-2010 fiscal year. In order to offset the reduction, the Parks & Recreation Department looked for 27 items that would increase revenue without impacting all citizens. Some of the proposed increases are for the 28 establishment of a Quakertown Park rental fee, which has not been required in the past; a regional park rental 29 fee for North and South Lakes Parks for special events; a Tennis Center Tournament rental rate; and a Special 30 Events Application Fee. Increases include rates for gyms, kitchens and meeting room rentals in rec centers; 31 athletic field and lighted tennis court rentals; after hour Water Park rentals; the Civic Center Rotunda rental 32 rates and the Senior Center multipurpose room rental rates. Some discussion was held regarding the Athletic 33 Impact Fee being increased by $5, which helps offset the cost of maintaining the fields. Amanda Green told 34 the Board that Board member Jennifer Wages, who could not be present, called her to voice her concerns that 35 the increase in the Athletic Impact Fee may preclude some youth from participating in sports. During their 36 discussion, the exploration of additional scholarships through the Park Foundation was offered as a possible 37 alternative for some players. When asked how our fees compare to that of North Texas Fairgrounds, Janie 38 explained that because it is a totally enclosed area, it is significantly higher than any of our parks or facilities 39 and that an entrance can be charged there as well. 40 41 MOTION: Jo asked for a motion recommending the approval of the ordinance amending Section 22-38 of 42 Chapter 22 (Parks and Recreation) of the Code of Ordinances of the City of Denton, Texas, relating to 43 facility and program fees by adopting a revised Schedule of Fees; which will repeal all fees in conflict with 44 the new schedule; will repeal the existing Ordinance No. 2007-267 and all other ordinances that are in 45 conflict with the new Schedule of Fees. Dale made a motion to recommend the acceptance of the changes to 46 the fee schedule for the 2009-2010 budget; Allyson seconded the motion and it passed with a vote of 4-0. . 47 48 Sale of Alcohol for Blues Festival b) A request from the Black Chamber of Commerce to be the sole th 49 proprietor to sell alcoholic beverages at the 11 annual Blues Festival came was presented to the Board for 50 their approval. This request is consistent with other music events held in Quakertown Park. 51 52 MOTION: Jo asked for a motion recommending to the City Council that the Denton Black Chamber of th 53 Commerce be the sole participant allowed to sell alcoholic beverages at the 11 Annual Blues Festival to 14 August 3, 2009 Page of 1 be held in Quakertown Park on Saturday, September 19, 2009, from 1:00 p.m. until 11:00 p.m. Carol made 2 a motion to that affect; Allyson seconded the motion and it passed with a vote of 4-0. 3 4 Harmony - Public Art Sculpture at South Lakes Park c) The Public Art Committee recommends the 5 sculpture Harmony by George Caddell be approved to be placed at South Lakes Park by the trail. The 6 sculpture of two herons, which will turn independently of each other as the wind blows, is approximately eight 7 feet in height and weighs close to 600 pounds. It will be located by the walking path in South Lakes Park on 8 Teasley Lane near Long Ridge. 2010 HOT Funds will pay for the sculpture, two benches for visitors to sit and 9 enjoy the piece, and native grass to enhance the area. 10 11 MOTION: Jo asked for a motion recommending to City Council the selection of George Cadell as the artist 12 for the sculpture of two herons to be located in South Lakes Park. Allyson made a motion to recommend 13 the sculpture; Carol seconded the motion and it passed with a vote of 4-0. 14 15 Book a Day Boy and Girl Sculptures for South Branch Library Public Art d) The Public Art 16 Committee is recommending the approval of their selection of Book a Day bronze 17 sculptures reading a book, one of a boy and one of a girl, to be purchased from the 2009 HOT funds for 18 the South Branch Library. These pieces are part of a series of 50 sculptures that Ms. has made. 19 A bench to set the sculptures on will also be purchased with 2009 HOT funds. 20 21 MOTION: Jo asked for a motion to recommend to City C 22 Book a Day bronze sculptures, one of a boy and one of a girl, reading a book as public art for South 23 Branch Library. Dale made a motion to recommend the purchase of the sculptures and bench to City 24 Council; Carol seconded the motion and it passed with a vote of 4-0 25 26 Summer Haze - Public Art Watercolor for South Branch Library e) The Public Art Committee 27 subcommittee selected Summer Haze watercolor painting for placement at the South Branch 28 Library. e passed away and that 29 his widow is pleased that his work is being recommended for the library. Purchase of this piece will be 30 with 2009 HOT Funds. 31 32 MOTION: Jo asked for a motion to recommend to City Council the 33 Summer Haze watercolor painting for the South Branch Library. 34 Allyson made a motion recommending the painting be accepted, Dale seconded the motion and it passed with 35 a vote of 4-0. 36 37 Public Art for City Hall East f) The Public Art Committee recommends that one of photographer Carlatta 38 39 measures 14 x 1 40 work is well known in the art world. Purchase of this photograph will be with 2009 HOT Funds. 41 42 MOTION: Jo asked for a motion recommending the approval of the Public Art Co 43 for public art in City Hall East, namely the black and white photo from Carlatta Corpron, Allyson made the 44 motion as presented, Dale seconded the motion and it passed with a vote of 4-0. 45 46 DISCUSSION ITEMS : 47 a) Alcohol Ordinance Revised The current ordinance for alcohol in City parks still has Quakertown Park 48 listed as Civic Center Park, which will be changed, and the approval process for rentals at the Civic Center 49 needs to be clarified. The Senior Center Advisory Board has asked that alcohol rentals no longer be 50 permitted in the Senior Center, as damage is being done to the wood floors which are expensive to fix. 51 The Senior Center will be removed from the ordinance as a location for alcohol events. The Park Board is 52 being asked to review the changes made on the attached ordinance and make recommendations to the City 53 Council in an Action Item at the September Park Board meeting. 54 24 August 3, 2009 Page of 1 b) Cemetery Ordinance Revised When an old structure was torn down it presented an opportunity to open a 2 new section of the IOOF Cemetery for the City to sell lots. Currently, the only lots available are those 3 sold by families owning the lots. Due to infractions to the existing ordinance, the cemetery ordinance was 4 revised to include fines for those not obtaining a permit before a burial or the placement of a monument in 5 both of the City cemeteries. Section 2 of the ordinance has been revised to include fees for the purchase of 6 the new lots, increased the fees for existing lots, added a fee for the purchase of lots for the burial of 7 cremation ashes, and restated the internment and concrete work permit fees as well as provides the late fee 8 for failure to obtain these permits in advance. Obtaining the permits is the responsibility of the funeral 9 home or monument company and is imperative to keeping accurate records for the cemeteries. The Park 10 Board is being asked to review the changes to the attached ordinance in able to take action on it at the 11 September Park Board Meeting. 12 13 Before moving on with the rest of the meeting, Emerson wanted to acknowledge two guests that came in after 14 the meeting started. The first citizen said that she came only to observe to see if she was interested in volunteering 15 to be a member of the Park Board. Jo told her that Emerson could help her with that. 16 17 Mr. David Hiegel asked to address the Board. He started by saying that he and his wife Cindy live on Hillcrest 18 Street, just behind McKenna Park, and his concern is with the Special Use Permit for gas wells that City Council is th 19 voting on at the meeting on August 4. He would like the Park Board to issue a courtesy note to the City Council 20 21 to McKenna Park being in the immediate area of the proposed gas wells. 22 23 Emerson pointed out that, since Mr. Hiegel and his concern were not part of the agenda, we could not violate the 24 Open Meeting Act and take action on his request. Emerson did suggest that individual members of the Park Board 25 express their thoughts, concerns, support to the City Council if they were so inclined. Mr. Hiegel thanked the 26 Board for their time. 27 28 PARKS PROJECT STATUS REPORT 29 Briercliff Park Design and Development Project The bid for this project is being awarded to Jones & th 30 Jefferies at the August 4 City Council meeting. 31 32 Denia Park Trail Project Progress on this project is being made to the extent that it is about half finished. 33 34 Denton Branch Rail Trail Bridges Project The plans for this project are still in the legal process with 35 DCTA. Bob pointed out that he was getting calls regarding the trees that have been removed from the area. Jo 36 said that she had gotten calls as well. Bob said that once we make people aware that we are getting a new trial, 37 they seem to be okay with it. 38 Neighborhood Park Design: Preserve @ Pecan Creek, Owsley Park and Wheeler Ridge Cindy said that th 39 the Contract for Professional Services will go to Council on August 18 and is being awarded to Halff and 40 Associates. 41 42 North Lakes Adult Soccer Field Development Project A contract is in the works for Jacobs Engineering th 43 Group to design this project and will go to Council on the next meeting after the August 18 meeting. 44 45 Senior Center Renovation and Expansion Project Emerson said that the contractor is great and that the 46 addition is almost completed, with a move into that structure slated for September. After that, work on the 47 existing structure will begin. 48 49 Unicorn Lake Trail and Landscape Project The bridge was delivered to the site in two pieces, but the rain 50 has kept it from being set. 51 52 KEEP DENTON BEAUTIFUL UPDATE 53 No comments were expressed on the update. 54 34 August 3, 2009 Page of 1 PUBLIC ART COMMITTEE MEETING MINUTES 2 As most of the items were covered as Action Items, no additional comments were expressed. 3 4 ITEMS FOR UPCOMING MEETINGS: 5 The revised Alcohol and Cemetery Ordinances will be Action Items on the September 2009 agenda. 6 7 With no further business on the agenda, Jo asked for a motion to adjourn; Carol made the motion to 8 adjourn, Allyson seconded the motion and the meeting was adjourned at 6:56 p.m. 44 August 3, 2009 Page of AGENDA INFORMATION SHEET AGENDA DATE: September 1, 2009Questions concerning this Ordinance may be directed DEPARTMENT: Materials Management to Tom Shaw 349-7133 ACM: Jon Fortune ______________________________________________________________________________ SUBJECT Consider adoption of an ordinance finding a public purpose and establishing procurement procedures for purchases by Denton Municipal Electric (DME) for electric production, transmission, distribution and station systems in accordance with Texas Local Government Code 252.002c; providing a severability clause and providing an effective date. BACKGROUND The Texas Legislature passed Senate Bill 7 in 1999, allowing municipal owned electric utilities to adopt specialized procurement procedures. The statute allows the utility an exemption from Chapter 252 of the Local Government Code which governs purchasing procedures for municipal governments. The procedures must be adopted through an ordinance by the governing body. Staff surveyed other municipal owned utilities in 2005 to determine if they had implemented changes as allowed by Senate Bill 7. At that time, the cities of Garland, Lubbock, and Austin had resolutions in place. The resolutions were reviewed and a draft of the proposed procurement procedures was created. In 2008, Navigant Consulting completed a management study of Denton Municipal Electric (DME). They recommended that the City move forward and implement the specialized purchasing procedures for the electric utility. The Purchasing, Legal, and Electric departments have worked collectively to review and create the attached draft ordinance. The ordinance only applies to purchases to be used on the electric system from generation to the meter on a home or business. Other goods and services used by DME, such as vehicles, buildings, and furniture, will continue to follow the procurement procedures as set forth in Chapter 252 of the Local Government Code. Staff presented the draft policy to the Audit/Finance Committee in May 2009. The Committee suggested changes to the original draft and recommended that the policy be presented to the Public Utilities Board (PUB). The changes from the Audit/Finance Committee include: Item 5- Change Orders: Allowing a change order for similar or related items, not for any reason as Î presented. Item 6- Project Expenditure Approval: 6d- increased the PUB/Council approval limit from $100,000 to $250,000. Î Agenda Information Sheet September 1, 2009 Page 2 6d- added that Council may approve the expenditure, should it meet Î before the PUB meets. Added that expenditures in excess of $100,000 will be reported Î retroactively to Council and/or PUB. Item 7 Critical Business Need: Added a $500,000 not to exceed limit. Î Added requirement that the Mayor and PUB Chair be contacted before Î approval by the City Manager. Added that Council will retroactively accept the expenditure. Î The proposed changes, including the recommendations from the Audit/Finance Committee, are outlined in the attached documents. RECOMMENDATION Staff recommends adoption of the proposed ordinance. PRIOR ACTION/REVIEW (Council, Boards, Commissions) Audit/Finance Committee reviewed the proposed policy on May 5, 2009. The Committee recommended that the policy be approved with the changes outlined above. Public Utilities Board approved (5-0) the proposed ordinance on June 22, 2009. FISCAL INFORMATION Staff expects a reduction in advertising costs. In addition, the revised procedures will provide an opportunity for the electric utility to reduce their purchasing costs during volatile price environments. EXHIBITS Exhibit 1: Power Point Presentation Exhibit 2: Matrix Exhibit 3: Process Flow Chart Exhibit 5: Critical Business Need Justification Form Exhibit 6: Ordinance Respectfully submitted by: Bryan Langley Director of Finance êñîñîððç ÜÓÛÎ»±´«¬·±² Û¬¿¾´·¸·²¹Ò»©Ð®±½«®»³»²¬Ð®±½»¼«®» ¹ Ó¿§îððç ï Ù»²»®¿´Ð±´·½§ ÜÓÛ°«®½¸¿»±º¹±±¼¿²¼»®ª·½»«»¼±²»´»½¬®·½°®±¼«½¬·±²ô ¬®¿²³··±²ô¼·¬®·¾«¬·±²ô¿²¼¬¿¬·±²§¬»³±²´§ò ¬®¿²³··±²¼·¬®·¾«¬·±²¿²¼¬¿¬·±²§¬»³±²´§ Í±«®½»æÈ½»´Û²»®¹§ô×²½à©©©ò¨½»´»²»®¹§ò½±³ î ï êñîñîððç Í»¿´»¼Þ·¼ Æ2/2ñkÆ£««ªÃ£ª Í»¿´»¼¾·¼®»¯«·®»¼·ºâüëðôðððÍ»¿´»¼¾·¼®»¯«·®»¼·ºâüïððôðððò •• Í«¾¬¿¬·±²¿²¼¼·¬®·¾«¬·±²½±²¬®«½¬·±² • Í«¾¬¿¬·±²¿²¼¼·¬®·¾«¬·±²½±²¬®«½¬·±² °®±¶»½¬±º¬»²®»¯«·®»³«´¬·°´»Â±£_£±±Á °«®½¸¿»±ª»®üëðôðððô©¸»®»ª»²¼±®¿®» ´·³·¬»¼ò í ß¼ª»®¬··²¹ Æ2/2ñkÆ£««ªÃ£ª Î»¯«·®»´»¹¿´¿¼ª»®¬··²¹·²¿²»©°¿°»®ß¼ª»®¬··²¹®»¯«·®»¼º±®»¿´»¼¾·¼±ª»® •• ®«²¬©·½»º±®ïì¼¿§º±®»¿´»¼¾·¼±ª»®üïððôððð üëððððô üëðððð •Ü»´¿§¾·¼±°»²·²¹±º³«½¸²»»¼»¼·¬»³ß´´±©º±®¿¼ª»®¬··²¹·²±¬¸»®³»¿² • •Ô·³·¬»¼¼·¬®·¾«¬±®±º³¿²§±º¬¸»·¬»³ ¾»·¼»¬¸»²»©°¿°»®ô«½¸¿æ •Ü·¬®·¾«¬±®¹»²»®¿´´§¼±²±¬®»¿¼´»¹¿´ •×²¬»®²»¬ ²±¬·½» •í®¼°¿®¬§Í±´·½·¬¿¬·±²»®ª·½»«½¸ •Þ·¼Í§²½±®Ñ²ª·¿ Í¸±®¬»²¬¸»¿¼ª»®¬··²¹°»®·±¼º±® • »¨°»²¼·¬«®»¬±»ª»²øé÷¼¿§ ×º²»©°¿°»®«»¼ô¬¸»²±²´§±²» • ¿¼ª»®¬·»³»²¬®»¯«·®»¼ Ò±»¨½»°¬·±²¹®¿²¬»¼¬±»¨°»¼·¬»Ð«®½¸¿·²¹ß¹»²¬½¿²¸±®¬»²¿¼ª»®¬··²¹ ¿¼ª»®¬··²¹°®±½»°»®·±¼±®«»¿´¬»®²¿¬»³»¿²·º¶«¬·º·»¼ò ì î êñîñîððç Ý¸¿²¹»Ñ®¼»® Æ2/2ñkÆ£««ªÃ£ª Ñ²´§¿´´±©º±®½¸¿²¹»·²¯«¿²¬·¬§¿²¼ß´´±©½¸¿²¹»±®¼»®±º·³·´¿®±®®»´¿¬»¼ •• °´¿²±®°»½·º·½¿¬·±²·¬»³·º¾«¼¹»¬º«²¼¿ª¿·´¿¾´» °´¿²±®°»½·º·½¿¬·±²·¬»³·º¾«¼¹»¬º«²¼¿ª¿·´¿¾´» •Ü±»²±¬¿´´±©°®·½»½¸¿²¹»¼«»¬± ª±´¿¬·´»®¿©³¿¬»®·¿´òø»¨æ°®·³¿®§½¿¾´»ô ¬®¿²º±®³»®ôÐÊÝ¿º¬»®Ø«®®·½¿²»Õ¿¬®·²¿÷ Î»¯«·®»¿°°®±ª¿´¾§Ý·¬§Ý±«²½·´·ºß«¬¸±®·¦»¬¸»Ý·¬§Ó¿²¿¹»®¬±¿°°®±ª» •• âõñüîëôðððò½¸¿²¹»±®¼»®·ºõñüïððôððð •Ý¿«»¼»´¿§º±®¬·³»»²·¬·ª»°®±¶»½¬ «½¸¿ÎÜÉ»´´òø»¨æ½¸¿²¹»±®¼»®±² Ý±«²½·´ß°°®±ª¿´·ºâõñüïððôððð • ¬··®¿²³±²°±´»¿²¼¬··®¿²³±² ¬··´¼¬·· ½±²¬®«½¬·±²°®±¶»½¬÷ Ý±²¬®¿½¬³¿§²±¬½¸¿²¹»·²»¨½»±ºîëûÒ±½¸¿²¹» •• ±º¬¸»±®·¹·²¿´½±²¬®¿½¬¿³±«²¬ ë Ð®±¶»½¬Û¨°»²¼·¬«®»ß°°®±ª¿´ ñkÆ£««ªÃ£ª Í±³»°®·½»¿²¼¼»´·ª»®§¯«±¬¿¬·±²»¨°·®»ß«¬¸±®·¦»¬¸»Ý·¬§Ó¿²¿¹»®¬±¿°°®±ª» •• ¾»º±®»¬¸»½±±®¼·²¿¬·±²±º®»¯«»¬»¨°»²¼·¬«®»«°¬±üëððôððð·ºæ ¯°°üô ¬¸®±«¹¸¬¸»¿°°®±ª¿´°®±½»½¿²¾»°®±½«®»³»²¬·º±®»´»½¬®·½ • ½±³°´»¬»¼ò¹»²»®¿¬·±²ô¬®¿²³··±²ô¼·¬®·¾«¬·±² Ê±´¿¬·´·¬§±º¬¸»³¿®µ»¬°´¿½»¿²¼¬¿¬·±²°®±¶»½¬ • Ð®±¶»½¬·²½´«¼»¼·²¿°°®±ª»¼ • ¾«¼¹»¬ñÝ×Ð Î»½±³³»²¼¿¬·±²º±®¿°°®±ª¿´¾§ • ÐËÞ±®¿°°®±ª¿´¾§Ý·¬§Ý±«²½·´·º âüîëðôððð Í¬¿²¼¿®¼Ð«®½¸¿·²¹°®±½»¼«®»¿®» • º±´´±©»¼ô®»½»·ª·²¹»¿´»¼¾·¼±ª»® üïððôðððò ê í êñîñîððç Ý®·¬·½¿´Þ«·²»Ò»»¼ Æ2/2ñkÆ£««ªÃ£ª Ñ²´§¿´´±©»³»®¹»²½§°«®½¸¿»º±®ßÂÃÃ±Þ«·²»ÛÁ½¿²¾» •• °®±¬»½¬·±²±º°«¾´·½¸»¿´¬¸¿²¼¿º»¬§¼»½´¿®»¼·ºæ •Û¨°»²¼·¬«®»üëðððððô Û¨°»²¼·¬«®»üëððððð • •ÜÓÛÙ»²»®¿´Ó¿²¿¹»®°®±ª·¼»©®·¬¬»² Ò±±´«¬·±²º±®»¨¬»²«¿¬·²¹½·®½«³¬¿²½» • ¶«¬·º·½¿¬·±²ô ¬¸¿¬¿®»²±¬¯«·¬»¿²»³»®¹»²½§ô¾«¬²»»¼ •®»ª·»©»¼¾§¬¸»Ð«®½¸¿·²¹ß¹»²¬ ¿²¿´¬»®²¿¬»³»¿²¬±¿´´±©¬¸»°«®½¸¿» •Ó¿§±®¿²¼ñ±®ÐËÞÝ¸¿·®°»®±²²±¬·º·»¼ •ß°°®±ª»¼¾§¬¸»Ý·¬§Ó¿²¿¹»® ß´´±©º±®©¿·ª·²¹±º°±´·½·»¿²¼ • °®±½»¼«®»¿²»½»¿®§¬±³¿µ»¬¸» °®±½«®»³»²¬ò °®±½«®»³»²¬ Ð«®½¸¿»®»°±®¬»¼®»¬®±¿½¬·ª»´§¬±ÐËÞ • ¿²¼®»¬®±¿½¬·ª»´§¿½½»°¬»¼¾§Ý±«²½·´ é ì ÜÓÛÐ®±½«®»³»²¬Ó»¬¸±¼ ÃÃ±kÃªÛ É±ªÉkÆÂY«ÉkÆ ÉkÆ ×¬»³ª£«»¼º±®×¬»³«»¼º±® Û³»®¹»²½·»ô±´» ¼·¬®·¾«¬·±²ô¼·¬®·¾«¬·±²ô Ý¿¬»¹±®§±ºÙ±±¼±«®½»ô½±³°»¬·¬·ª» ¬®¿²³··±²±®¬®¿²³··±²±® ·²¬»®»¬ °®±¼«½¬·±²±º»´»½¬®·½·¬§°®±¼«½¬·±²±º»´»½¬®·½·¬§ Þ«½µ»¬Ì®«½µô²»© Ì®¿²º±®³»®ô©·®»ôÛ¨½»°¬·±²°«®½¸¿» Í¿³°´»Ð«®½¸¿»¾«·´¼·²¹½±²¬®«½¬·±²ô ½¿¾´»ô°±´»ô«¾¬¿¬·±²®¿®»´§«»¼ º«®²·¬«®» Î»½±³³»²¼»¼Î»½±³³»²¼»¼ ß°°´·½¿¾´»Ð±´·½§±®Ô¿©Ý¸¿°¬»®îëî Ñ®¼·²¿²½»Ñ®¼·²¿²½» Í»¿´»¼Þ·¼Ô·³·¬âüëðôðððâüïððôðððÉ¿·ª»¼ ß¼ª»®¬··²¹ïì¼¿§é¼¿§Ó¿§¾»É¿·ª»¼ Ý·¬§Ó¿²¿¹»®ß°°®±ª¿´Ô·³·¬üëðôðððüïððôðððüëðôðððüëððôðððüëððôððð ÐËÞß°°®±ª¿´Ì¸®»¸±´¼âüïððôðððâüîëðôðððÎ»¬®±¿½¬·ª»´§®»°±®¬»¼ Ý±«²½·´ß°°®±ª¿´Ì¸®»¸±´¼âüïððôðððâüëððôðððÎ»¬®±¿½¬·ª»´§¿½½»°¬»¼ Ý¸¿²¹»Ñ®¼»® Ý¸¿²¹»·²¯«¿²¬·¬§±® Ý¸¿²¹»Ñ®¼»®Î»¿±²Ý¸¿²¹»º±®¿²§®»¿±²Òñß ½±°»±º©±®µ±²´§ Ý±«²½·´ß°°®±ª¿´ âõñüîëôðððô¾«¬²±¬âõñüïððôðððô¾«¬²±¬ Î»¯«·®»³»²¬º±®Ý¸¿²¹»Òñß ³±®»¬¸¿²îëû³±®»¬¸¿²îëû Ñ®¼»® öÎ»¯«·®»³»²¬³¿§¾»©¿·ª»¼·º®»¯«»¬»¼·²©®·¬·²¹¾§¬¸»ÜÓÛÙ»²»®¿´Ó¿²¿¹»®ô®»ª·»©»¼¾§¬¸»Ð«®½¸¿·²¹ ß¹»²¬ô¿²¼¿°°®±ª»¼¾§¬¸»Ý·¬§Ó¿²¿¹»®ò×º©¿·ª»¼ô¬¸»²¼»»³»¼¿þÝ®·¬·½¿´Þ«·²»Ò»»¼þò Exhibit “A” Procurement Policy Change for DME 1. General Policy- Purchases by Denton Municipal Electric of equipment, supplies, materials, and services used on electric production, transmission, distribution and station systems, including, but not limited to transformers, cable/wire, and poles, shall be made in a manner that: (a) Conforms with the substance of all applicable state procurement laws, the City Charter, all applicable City Ordinances, and this Resolution; (b) is beneficial and cost-effective for Denton Municipal Electric and its customers; and (c) is fair and equitable to suppliers and service providers. Actions and procurements not addressed by this resolution shall be governed by the applicable provisions of Chapter 252 of the Texas Local Government Code. 2. Solicitation Type- The Purchasing Agent will determine the type of solicitation to be used in a procurement, taking into account both the fundamental requirements of fairness in selecting parties to contract with Denton Municipal Electric as well as the competitive needs of Denton Municipal Electric. Normally, an Invitation for Bid will be used for standard commodity purchases and a Request for Proposal will be used for procurement of services and for custom built and/or technical equipment, including, but not limited to, equipment that is related to the production, transmission, distribution, or metering of electricity. Procurement of professional services and public works construction not governed by Chapter 252 of the Local Government Code will not be affected by this section. Procurements that meet the requirements of critical business need as set forth in Section 7 below may follow the procedures established therein. 3. Bids and Proposals- The general business practice will be for all responses to solicitations to be submitted by mail, courier, electronically or by fax. Electronic signatures will be acceptable. However, this practice may be waived at the discretion of the Purchasing Agent, if there is a business need, to either permit telephone responses or to require sealed responses. Sealed responses will be required for solicitations over $100,000, unless the solicitation is for a “Critical Business Need” as set forth in Section 7. 4. Advertising Requirement- Any solicitation estimated to be in excess of $100,000 will be advertised for a minimum of seven (7) days prior to the bid opening on the internet, or by such other means, including newspaper publication, as is determined necessary to reach a wide and diverse number of potential bidders or proposers. If the newspaper is used, an advertisement will be run at least 7 days prior to the bid opening date. However, if the Purchasing Agent determines and provides a written justification that there is a business need, a solicitation may be advertised for a lesser period of time or in a different fashion. 5. Change Orders- If changes are necessary after the performance of the contract is begun, the municipality may approve change orders of similar or related items, provided that: Page (a) additional money for increased costs is appropriated for that purpose from available funds or is provided for by the authorization of the issuance of time warrants. (b) If a change order involves a decrease or an increase of $100,000 or less, the City Manager or the person acting on his/her behalf may approve the change order. (c) The original contract price may not be increased under this section by more than 25 percent. The original contract price may not be decreased under this section by more than 25 percent without the consent of the contractor. 6. Project Expenditure Approval- The City Manager is authorized to approve expenditures for individual purchases up to $500,000 provided that: (a)The procurement is for materials and services for: electric production, transmission, distribution, and station projects (b)the project is included in the approved budget/CIP; (c)the cumulative total of purchases for any project does not exceed the amount available for that project; (d)purchases, in excess of $250,000, that have been recommended for approval by the PUB or approved by City Council (whichever meets first) and; (e)standard purchasing practices have been followed. Expenditures in excess of $100,000 will reported retroactively to Council and/or PUB. 7. Critical Business Need— The procedures set forth in the above sections may be changed or modified by the City Manager, or the person acting on his/her behalf, on a case-by- case basis as necessary in order to meet a critical business need of Denton Municipal Electric for the purchases of goods or services for electric production, transmission, distribution and station systems. The expenditure shall not exceed $500,000. Circumstances which could give rise to a finding of critical business need include: (a) emergency situation, including procurements necessary to protect the public health or safety of in response to a public calamity; (b) a procurement necessary because of unforeseen damage to public equipment, machinery, or other property; (c) a procurement for personal services or highly technical services and testing; (d) a procurement of items that are available from only one source; Page (e) a procurement necessary to protect the competitive interests or position of Denton Municipal Electric. A critical business need will be submitted in writing, using the “Critical Business Need Justification” form, by the General Manager of Denton Municipal Electric, reviewed by the Purchasing Agent, and approved by the City Manager. The Mayor and/or the Public Utility Board Chairperson shall be notified of the expenditure before approval by the City Manager. Once it has been determined that a procurement is necessary to meet a critical business need of Denton Municipal Electric, the Purchasing Agent will manage the procurement so as to assure that it expeditiously meets the critical business need while providing competition to the extent possible and maintaining a fair process. Critical business needs shall be reported retroactively to the PUB and retroactively accepted by the City Council. Page File #: _________ Critical Business Need Justification Date: _________ Vendor: _____________________________________________________________________________ Product/Service: ______________________________________________________________________ Estimated expenditure for the above commodity or service: (not to exceed $500,000) $ ______________ Initial all entries below that apply to the proposed purchase, under the Purchasing Procedures for Denton Municipal Electric as passed by City Council via Ordinance No.XXXX. (More than one entry may apply.) 1. _______Emergency situations, including procurements necessary to protect the public health or safety or in response to a public calamity; 2. _______A procurement necessary because of unforeseen damage to public equipment, machinery, or other property; 3. _______A procurement for personal services or highly technical services and testing; 4. _______A procurement of items that are available from only one source; (Attach the manufacturer’s written certification that no regional distributors exist); 5. _______A procurement necessary to protect the competitive interests or position of DME. Brief Description/Justification for exception: Respectfully Submitted by, Reviewed by: Phil Williams Date Tom Shaw Date General Manager of DMEPurchasing Agent The undersigned agrees that the Purchasing Procedures for DME as passed by City Council via Ordinance No. XXX be waived; and that the vendor identified as the supplier of the service or material described in this critical business need justification, be authorized to provide the service or material. Mayor notified Date: _______________ George Campbell Date City Manager PUB Chairperson notified Date: _______________ éÕÔÊÍÜÖØÑØ×ÉÛÑÜÏÒÔÏÉØÏÉÔÎÏÜÑÑÄ AGENDA INFORMATION SHEET AGENDA DATE: September 1, 2009Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Emerson Vorel 349-7460 ACM: Jon Fortune SUBJECT Consider adoption of an ordinance authorizing the City Manager to execute a Professional Services Agreement (PSA) with Jacobs Engineering Group, Inc., for Park Design and Planning Services for the adult soccer area at North Lakes Park; authorizing the expenditure of funds therefor; and providing an effective date (RFSP 4360Professional Services Agreement for Park Design Services For Adult Soccer Area at North Lakes Park awarded to Jacobs Engineering Group, Inc., in an amount not to exceed $130,320). FILE INFORMATION This Agreement is for Jacobs Engineering Group Inc. (JEG) to perform Professional design Services for the City of Denton for new adult soccer field improvements at North Lakes Park. (Exhibit 1), as prepared by the City on June 2, 2009. This scope of work includes professional landscape, architectural and engineering design services. Jacobs Engineering Group, Inc. will be joined by the sub consultant firm of Gaylen Howard Laing Architect for the architectural components of the project. JEG will prepare a revised master plan concept and final construction documents for the Park improvements for the purpose of bidding the work in accordance with City standards and budgets. RECOMMENDATION Approve a Professional Services Agreement between the City of Denton and Jacobs Engineering Group, Inc. in an amount not to exceed $130,320. PRINCIPAL PLACE OF BUSINESS Jacobs Engineering Group, Inc. Dallas TX ESTIMATED SCHEDULE OF PROJECT The design phase of the project will take six months to complete. Agenda Information Sheet September 1, 2009 Page 2 FISCAL INFORMATION This project will be funded from account 400073457.1360.21100. Requisition 94437 has been entered in the Purchasing software system. EXHIBITS Exhibit 1: Map of Proposed Adult Soccer Area Location Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent 1-AIS-File 4360 Exhibit 1 RINEY Proposed Adult Soccer Area Proposed Adult Soccer Location Feet June 2, 2009 02505001,0001,5002,000 ORDINANCE NO. __________________ AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT (PSA) WITH JACOBS ENGINEERING GROUP, INC., FOR PARK DESIGN AND PLANNING SERVICES FOR THE ADULT SOCCER AREA AT NORTH LAKES PARK; AUTHORIZING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (RFSP 4360PROFESSIONAL SERVICES AGREEMENT FOR PARK DESIGN SERVICES FOR ADULT SOCCER AREA AT NORTH LAKES PARK AWARDED TO JACOBS ENGINEERING GROUP, INC., IN AN AMOUNT NOT TO EXCEED $130,320). WHEREAS, is being selected as the most highly qualified on the basis of its demonstrated competence and qualifications to perform the proposed professional services; and WHEREAS, The fees under the proposed contract are fair and reasonable and are consistent with and not higher than the recommended practices and fees published by the professional ion and such fees do not exceed the maximum provided by law; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. The City Manager is hereby authorized to enter into a professional service contract with Jacobs Engineering Group, Inc, to provide professional architectural and related services for the adult soccer improvements at North Lakes Park, a copy of which is attached hereto and incorporated by reference herein. SECTION II. The City Manager is authorized to expend funds as required by the attached contract. SECTION III. The findings in the preamble of this ordinance are incorporated herein by reference. SECTION IV. 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: _________________________________ 3-ORD-File 4360 éÕÔÊÍÜÖØÑØ×ÉÛÑÜÏÒÔÏÉØÏÉÔÎÏÜÑÑÄ AGENDA INFORMATION SHEET AGENDA DATE: September 1, 2009Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Vance Kemler 349-8044 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 an Automatic Tarping Unit from Tarpomatic, Inc., 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 4361-Purchase of Automatic Tarping Unit for the City of Denton Landfill in the amount of $97,537). The Public Utilities Board recommends approval (6-0). FILE INFORMATION The Landfill permit requires the Landfill staff to provide daily cover on the working face of the Landfill using either six inches of well compacted earthen material or an approved alternate daily cover. For alternate daily covers, the Landfill staff has been using either a hydro-mulched material which is sprayed on the working face, or manually laid tarps for covering the daily working face. Both of these methods conserve airspace; however the hydro-mulch is often ineffective in keeping vectors or birds out of the trash. Manually dragging tarps is time consuming and there are safety concerns because it requires the staff to walk across the working face, and requires using multiple tarps to cover the working face. Additionally, neither the hydro- mulch nor the hand applied tarps can be used during times of high winds or during wet weather conditions. The Automatic Tarping Unit (ATM) will be used to deploy and retrieve flexible sheeting panels (tarps) made in various lengths and widths onto the active Landfill working face. The Landfill Department plans to use this equipment daily, and only cover with 6" The Landfill staff is requesting the purchase of one standard 40' automatic tarping machine (ATM) with tarp spool, two additional tarp spools, a wireless remote control, fabrication of mounting brackets, the ATM set up costs including training, six (6) - 40' x 100' panels with fifteen pockets, 3/8" chain on one hundred foot sides, 2,400' of 7/8" steel cable (ten - 40' cables in the 40' x 100' panel), and shipping charges. Tarpomatic, Inc. is the only manufacturer of the tarp layout and take up equipment machine, replacement tarps and ancillary equipment; 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. Agenda Information Sheet September 1, 2009 Page 2 PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) The Public Utilities Board approved this item at its August 10, 2009 meeting. RECOMMENDATION Award to Tarpomatic, Inc. in the amount of $97,537. PRINCIPAL PLACE OF BUSINESS Tarpomatic, Inc. Canton, OH ESTIMATED SCHEDULE OF PROJECT The unit and material is in stock and scheduled for operation within 30 days from receipt of an order. FISCAL INFORMATION This project will be funded from account 660041592.1375.30100. Requisition 94124 has been entered in the Purchasing software system. EXHIBITS Exhibit 1: Quote from Tarpomatic, Inc. Exhibit 2: Sole Source Letter Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent Exhibit 1 Exhibit 2 June 4, 2009, ® Please consider this letter to be a letter of Sole Source for the TarpomaticAutomatic Tarping Machine (ATM). JWM Welding and Manufacturing, Inc. has designed and manufactured a tarping machine for deploying and retrieving flexible sheeting (tarps) made in varying lengths and widths. This machine is known as the Tarpomatic ATM. JWM Welding and Manufacturing Inc. received a U.S. Patent on April 19, 1994. (U.S. Patent Number 5,304,014). This patent has a very broad coverage. In the event that a company would build a similar machine, that company would clearly be in infringement of our patent. Also, any organization that purchases the ATM equipment from another manufacturer other than Tarpomatic Inc. would be liable for damages. In October of 1995, Tarpomatic Inc. was formed for the sole purpose of manufacturing and selling the Automatic Tarping Equipment. The owners of JMW Welding and Manufacturing are also partners in Tarpomatic Inc. It is necessary to purchase the tarp lay out and take up equipment machine (ATM), replacement tarps, ancillary equipment (remote control, ATM parts etc.) from Tarpomatic Inc., as a sole source, since they are the only manufacturer of the equipment and are the owners of U.S. Patent Number 5,304,014 with exclusive rights to produce and sell the equipment. If you have any questions, or need any further assistance in this matter, please do not hesitate to call our offices toll free at the number listed below. I may be reached directly at (209) 578- 5876. Best regards, Dave Collinsworth Sales Manager Corporate Headquarters th EXHIBIT 1 512 45 Street S.W. Canton, OH 44706 800) 500-5069 www.tarpomatic.com info@tarpomatic.com ORDINANCE NO. ____________ AN ORDINANCE OF THE CITY OF DENTON, TEXAS PROVIDING FOR, AUTHORIZING, AND APPROVING THE EXPENDITURE OF FUNDS FOR THE PURCHASE OF AN AUTOMATIC TARPING UNIT FROM TARPOMATIC, INC., 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 4361-PURCHASE OF AUTOMATIC TARPING UNIT FOR THE CITY OF DENTON LANDFILL IN THE AMOUNT OF $97,537). 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 and the license terms attached are hereby approved: FILE NUMBER VENDOR AMOUNT 4361 Tarpomatic, Inc. $97, 537 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 4361 PUBLIC UTILITIES BOARD AGENDA ITEM # 1 2 3 DRAFT MINUTES 4 PUBLIC UTILITIES BOARD 5 August 10, 2009 6 7 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was 8 present, the Chair of the Public Utilities Board thereafter convened into an Open Meeting on 9 Monday, August 10, 2009 at 9:00 a.m. in the Service Center Training Room, City of Denton 10 Service Center, 901-A Texas Street, Denton, Texas. 11 Present: 12 Chair Dick Smith, Bill Cheek, Randy Robinson, Bill Grubbs, Phil Gallivan and 13 Barbara Russell. 14 15 Ex Officio Officers: 16 George C. Campbell, City Manager 17 Howard Martin, ACM Utilities 18 Absent 19 : John Baines, excused 20 OPEN MEETING: 21 22 23 Welcome new board member Barbara Russell. 24 CONSENT AGENDA: 25 26 The Public Utilities Board has received 27 has had an opportunity to raise questions regarding these items prior to consideration. 28 Board Member Bill Cheek pulled Item 1 for individual consideration 29 . 30 31 2) Recommend the expenditure of funds for the purchase of an automatic tarping unit (ATM) 32 from Tarpomatic Inc. in the amount of $97,537.00. 33 34 3) Consider a recommendation for the approval of a Professional Services Agreement between 35 Chiang, Patel, and Yerby, Inc. (CP&Y) and the City of Denton Solid Waste Department for 36 CP&Y to provide engineering consulting services for a Denton Landfill Floodplain 37 Reclamation Study in an amount not to exceed $63,000. 38 Board Member Bill Cheek moved to approve Items 2-3 with a second from Board Member 39 Bill Grubbs. The motion was approved by a 6-0 vote. 40 41 Draft Minutes of the Public Utilities Board meeting August 10, 2009 Page 2 of 7 ITEMS FOR INDIVIDUAL CONSIDERATION 1 : 2 3 Consider a recommendation of approval of the purchase of a rebuilt Caterpillar Model 826C 4 landfill compactor, in the amount of $182,550 from Caron Compactor Company, Best Value 5 Bid for Landfill Compactor Bid #4325. 6 7 8 important item when it comes to trash compaction. Cheek asked if it was pad foot roller. 9 Kemler stated that it is a Brownsfield drum with special teeth that has a variety of configurations. 10 said 11 different geography. Caterpillar wheels have a special tooth that peek out and roll along, with a 12 high cost. The major difference in the Caron wheels is they put a base on that drum with a pin 13 on assembly so that when a tooth breaks they are replaceable. You can change out a whole set of 14 teeth in a full day. Whereas, you would have a machine down one to two weeks if you have to 15 cut the teeth off to replace them. The other factor that comes into play is the hardness the alloys 16 that are used are problems that we have seen over the years with Cat is the alloys are softer the 17 teeth wear out faster. The Caron teeth are extremely hard material on the shell that pins on so 18 you have a better life the life depends on the soil characteristics at the site. Sandy materials are 19 very abrasive vs. clays or slick surfaces. Teeth pattern number of rows of teeth and number of 20 teeth enter in. Caron has been the leader in research in determining better compaction. Variation 21 of earth compacting equipment designed especially in garbage compaction. They took bids on 22 new machines several months ago and were astonished at the increased cost. The increase in 23 requirements is due to emission requirements for the engines and the cost associated with this 24 technology. One of the problems with last compactor they bought weighed about 85,000 lbs. 25 When we went out with the same standard a couple of years ago was the performance. When 26 you put it in first gear the new emissions criteria performance of that engine was substantially 27 lower than previous generations of engines. We were dealing with the factory for more than a 28 ye 29 problem. That was not a successful venture. The next machine to bid out this year was to 30 replace that low performer 06 and buy a new machine that new machine was $900k the trade in 31 32 money we will keep it use it in a lower production capacity. We will keep it for a year or two 33 more and try to sell again later. Rather than spend $900k on a new machine it would be a better 34 opportunity to buy a remanufactured machine. Cheek asked what it would cost to add that to a 35 36 clarified to add Caron wsaid that was 37 correct. Cheek asked about the exhibit that had prices without wheels. Kemler said that even 38 though they ask for machines with wheels all the vendors price the machines without wheels. 39 With wheels the price is $15k more. If you are a government buyer and only look at low price 40 then the vendor wants the lowest cost. This was specifically a best value bid, very important on 41 used or rebuilt equipment. One of these pieces of equipments was rebuild in 1992 and one in 42 1995, neither was completely remanufactured. Cheek asked when the Caron compactor was 43 remanufactured. Kemler said about a year ago. It was a stem to stern total re-build, a CAT 44 dealer did the entire rebuild. With Marciel they overhauled the machine. On Caron used a 45 California CAT dealer and went through remanufacturing the engine and the transmission they 46 redid all the drive components. The invoice was extremely long. They also improved cooling Draft Minutes of the Public Utilities Board meeting August 10, 2009 Page 3 of 7 1 system, all machines original radiators tend to clog up; they have come up new radiator. Landfill 2 Equipment out of Missouri do an excellent job they tear the entire machine down and build it 3 back up. Those two I felt were good offerings. Both machines would get several years of use. 4 A couple of differences were: Landfill E 5 machine to us; it would be about 3 months. Caron rebuilt the machine to have it available for 6 some of their customers. Cheek asked what year model was the Caron machine. Kemler said 7 this 8 9 have air seats. Old style technology before tear two before high tech equipment was 10 manufactured. Cheek asked the projected life of the machine. Kemler said 8-10 years. This 11 machine is so stout it can go through another rebuild. It is that quality of machine. Cheek asked 12 if they have seen the machine. Kemler said they have actually rented the machine and are 13 currently using it. Cheek said that would have been good information to have. Did we get a 14 break on the price since we are leasing it? Kemler said yes that is why the price is so much 15 different than the one from Landfill. Warranty? Kemler said the warranty is 6 months 50/50. 16 We have used it just shy of two months every day. Dick Smith said comments were good, a lot 17 of information that should have been in the back up. 18 Board Member Bill Cheek moved to approve Item 1 with a second from Board Member 19 Bill Grubbs. The motion was passed by a 6-0 vote. 20 21 22 4) Consider recommending approval of the Public Utilities Board meeting minutes of: 23 a. July 27, 2009 24 The minutes were approved as circulated. 25 26 27 5) Consider approval of a Professional Services Agreement for Architect or Engineer between 28 the City of Denton and Malcom Pirnie in the amount of $2,600,000 for Engineering Services 29 for the Design of the Lake Lewisville Water Treatment Plant Rehabilitation and Process 30 Upgrade. 31 32 Tim Fisher, Director of Water Utilities, presented this item. He had a presentation that he had 33 shown at a previous meeting. One of the keys on this project is the change in process. We are 34 trying to get away from the present mode of operation which is a disinfectant grade of fillers 35 going to ozone. The biggest difference from a regulatory standpoint that we are going to gain 36 out of this is basically by products. Regulatory driver that we are getting in to with the service 37 water treatment rules which is going to start lowering turbidity standards. We are trying to 38 change the filter media that is in the filters as a compliment to the ozone process. We are 39 looking at a complete revamp of the filters. We have been running an enhanced coagulation 40 process at this facility for about 15 years we are running a low Ph in the basins. We are running 41 an aggressive coagulation process to try to move the organic material through the chlorine. Over 42 the 15 years of operation we are starting to erode concrete. What we are looking at is to change 43 that treatment process and look at ozone and biological filtration. Another big decision that we 44 are making on this is chlorine. We got an older gas feed system that we have done a lot of 45 46 with is the scrubber retrofit. One thing that we are doing in this project, back in 1998 we Draft Minutes of the Public Utilities Board meeting August 10, 2009 Page 4 of 7 1 exasperated whether to stay with chlorine or switch to an alternate disinfectant. A bleach storage 2 and pumping system; get away from a gas feed system. In 1998 it made since to stay with the 3 gas feed system. 9-11 changed a lot of that. Now we are going to phase out gas feed chlorine at 4 this particular location. Fisher showed a site plan with major areas of the chlorine facility. The 5 clarifier mechanisms are only in the front cells we have no sludge removal in the back. We are 6 going to a vacuum based sludge removal system. The clarifier mechanisms date back to the 7 8 the $26m. The big ticket item is the ozonation system which is about 40% of the project. Fisher 9 said the numbers have not been updated with 2007. We will stay with our budget and prioritize 10 and sacrifice components. We have not increased the budget so we are looking to see; what is 11 the best package that we can get for the budget that we have. Fisher then showed the CIP budget 12 sheet that was in the backup packet with explanation. After the bid process we want to find a 13 14 project. Fisher then talked about Exhibit 6 and the cost comparison graph. Fisher was very 15 happy with the negotiations. As far as in house work goes, there will not be any. Cheek asked 16 about the length of engineering. Fisher responded about 11 months, with a construction window 17 18 contractor is before we made that final decision of who we will use for that rep. 19 Board Member Phil Gallivan moved to approve Item 5 with a second from Board Member 20 Randy Robinson. The motion was passed by a 6-0 vote. 21 22 23 24 6) 25 and DCTA, 26 as Lessee, being a modification of the Lease, for a tract of real property situated within the 27 . 28 29 Vance Kemler presented this item. This item is concerning a lease agreement with DCTA. For a 30 background on this in the spring of 2005 this facility tenants would outgrow the space at the city 31 bus system. The city was looking at the DCTA to take over the bus service. The transportation 32 operation started looking for a new facility. The solid waste facility said they would be happy to 33 assist while they looked for a permanent home for a period of time. While they were finalizing 34 the contracts with the DCTA and in doing so they planned on building a maintenance facility and 35 bus ban operation. They would need an interim solution until that facility was on the ground and 36 useable. With that background we developed a lease agreement which had a three year term that 37 was from September 2005 through September 2008. The agreement had the ability to have two 38 renewal terms which would take it to a five year lease. As they expanded their operations with 39 UNT they needed more space, which was the first renewal term. That renewal term ends 40 September 2009. Although he has not received the second year renewal, he is sure he will get it 41 due to DCTA moving in another modular office. The amendment we are talking about a today 42 allows them to bring in this second modular building for the period of time to operate out of. It 43 does appear that we will need to negotiate a new agreement within the next six months that will 44 45 that time. Gallivan asked if the buildings will be removed at some point. Kemler said the first 46 modular building was purchased by solid waste. They are paying back for the use of it. The Draft Minutes of the Public Utilities Board meeting August 10, 2009 Page 5 of 7 1 intent is that as construction throughout the city occurs, that type of building can be used in other 2 locations during construction to house offices. The second modular building, DCTA are 3 reimbursing Solid Waste for the rent plus 20%. This building will be moved off as soon as 4 DCTA moves. 5 Board Member Bill Grubbs moved to approve Item 6 with a second from Board Member 6 Barbara Russell. The motion was passed by a 6-0 vote. 7 8 9 10 7) Receive a report, hold a discussion and take action on Electric, Water, Wastewater, Solid 11 Waste, Miscellaneous, and Engineering Fee Ordinances effective for FY 2010. 12 13 Howard Martin stated that at the last meeting there were some minor changes proposed in 14 various rate ordinances that were identified in the information sheet. However in the last review 15 16 different in this time and the last meeting is some minor changes to the electric rate ordinance. 17 Phil Williamson will go over the minor changes. In your packet are the rate ordinances in its 18 entirety and right behind that is the red line of any changes. Williams stated there were minor 19 changes to the wording only no changes in the rates. For example, the wording for rebates added 20 The Renewable Sources Rider changed in wording 21 only. The Special Event Rider; that is tied to one event that is the County Courthouse. The 22 pedestals that are freestanding were unmetered and charged a flat fee, are now behind the meter 23 and are the responsibility of the County. That Special Event Rider is not longer needed with this 24 change. That is all the electric changes. Howard Martin stated that generally across all the City 25 Utilities there would be no change in rates. Dick Smith had a question on water tap fees to Tim 26 s that we 27 do are part of an installation where the developer is extending the line to where the service 28 already has a meter set. We do approximately 800 or 900 meter sets per year. Then when you 29 get into setting a main line extension for a contractor, we have standard tap fees for that. Last 30 year we did about 65 of those. We first adopted standardization around 2001 and have only 31 32 one of those 65 installs being a development that would have to tap the street for a particular pad 33 site. Fisher also did some tap fee comparisons with other cities and we seem to be on track with 34 them. We made the recommendation for the change due to cost recovery. 35 Board Member Randy Robinson moved to approve Item 7 with a second from Board 36 Member Bill Cheek. The motion was passed by a 6-0 vote. 37 38 39 40 8) ACM Update: 41 a)Nothing to report 42 43 9) Under Section 551.042 of the Texas Government Code, respond to inquiries from the 44 Board or the public with specific factual information or recitation of policy, or accept a 45 proposal to place the matter on the agenda for an upcoming meeting. 46 Draft Minutes of the Public Utilities Board meeting August 10, 2009 Page 6 of 7 1 Nothing to report 2 3 Official Action, if necessary, on Closed Meeting item(s) under §551.071-551.088 of the Texas 4 Government Code, as amended. 5 At 10:00 a.m., Chair Dick Smith declared a quorum and announced that the Public 6 Utilities Board was now in closed session. 7 8 CLOSED MEETING 9 : 10 11 12 13 the Chair of the PUB shall first announce the time, and then the PUB must then vote and make a 14 good faith determination, by a majority vote of its members, that if any particular agenda item 15 16 17 agenda, then a separate vote must be taken for each item. The vote shall be taken during the 18 Closed Meeting and shall be included in the certified agenda or tape recording of the Closed 19 Meeting. If the PUB fails to determine by a majority vote of its members that the particular 20 agenda item satisfies the requirements of §551.086(b)(3), then the PUB may not discuss, 21 deliberate or take any further action on that Agenda item in its Closed Meeting. For any agenda 22 item listed under any other section of the Texas Government Code, other than §551.086, 23 consideration in the Closed Meeting is permitted without the necessity of a preliminary motion 24 and a vote of the Board being taken.] 25 A.CONSULTATION WITH ATTORNEY --- Under Texas Government Code 26 §551.071. 27 28 29 1.Receive a status report, briefing and information regarding the litigation entitled City 30 of Denton v University of North Texas, Cause No. 2008-20043-158, now pending th 31 before the 158 Judicial District Court in and for Denton County, Texas; and 32 33 recommendations regarding such legal matter. A public discussion of this legal 34 matter would conflict with 35 Board under the Texas Disciplinary Rules of Professional Conduct of the State Bar of 36 Texas. 37 38 2.Receive information, a status report, and legal briefing 39 regarding Wastewater Department legal issues pertaining to the Grissom Road Lift 40 Station project and possible claims dealing with the rainstorm of May 2, 2009; and 41 discuss, deliberate, and provide ttorneys and Staff with direction and any 42 recommendations regarding such legal matters. A public discussion of this legal 43 44 Board under the Texas Disciplinary Rules of Professional Conduct of the State Bar of 45 Texas. 46 Draft Minutes of the Public Utilities Board meeting August 10, 2009 Page 7 of 7 At 10:48 a.m. Chair Dick Smith announced that the Public Utilities Board was now in open 1 session. 2 3 4 There was no official action on a closed meeting item. 5 6 The meeting was adjourned by consensus at 10:50 a.m. éÕÔÊÍÜÖØÑØ×ÉÛÑÜÏÒÔÏÉØÏÉÔÎÏÜÑÑÄ AGENDA INFORMATION SHEET AGENDA DATE: September 1, 2009 DEPARTMENT: Water ACM: Howard Martin, Utilities 349-8232 ______________________________________________________________________________ SUBJECT Consider adoption of an ordinance of the City of Denton, Texas authorizing the City Manager or his designee to execute a real estate Contract Of Sale between the City of Denton and M. Tony Wilkerson, and any other documents necessary to acquire an approximate 3.0 acre tract of land located in the Gideon Walker Survey, Abstract Number 1330, Denton County Texas, and being two parcels of land conveyed to M. Tony Wilkerson, by Deed recorded under County Clerk’s file number 03-87943, Real Property Records, Denton County, Texas; authorizing the expenditure of funds therefore; and providing an effective date. The Public Utilities Board recommends approval (6-0). BACKGROUND The approximate three acres of land is located at the northeast corner of the intersection of the Treatment Plant Road (east/west), and Mayhill Road (north/south). The tract is necessary to provide additional space for future solid waste services, facilities, and the buffer areas associated with these facilities as part of the Solid Waste department’s strategic plan. A portion of the tract adjacent to Mayhill Road will also be serve as additional right-of-way for the proposed future street widening project. The purchase price is based on the value as indicated in an appraisal of the property dated April 2008. Staff recommends approval of the real estate Contract of Sale. OPTIONS 1.Recommend that the City Council approve the proposed Ordinance. 2.Not recommend that the City Council approve the proposed Ordinance. 3.Table for future consideration. RECOMMENDATION Recommend approval of the Ordinance. PRIOR ACTION/REVIEW (Council, Boards, Commissions) th This item was presented to the Public Utilities Board at their August 24 meeting. The Board recommends approval (6-0). FISCAL INFORMATION 0000 Purchase price $210,000., standard closing costs are estimated to be $2,500.. BID INFORMATION None EXHIBITS 1.Location Map 2.Ordinance 3.PUB Meeting Minutes Respectfully submitted, Jimmy D. Coulter Director of Water/Wastewater Water Administration Prepared by, Pamela G. England Real Estate Specialist ÷äôóúóè É·´µ»®±² Ì®¿½¬ ß½¯«··¬·±² Ô±½¿¬·±² Ó¿° ÙßÇÔß òéë ¿½®» îòî ¿½®» ÍÐÛÒÝÛÎ ï ·²½¸ ã îðð º»»¬ ÷äôóúóè ÛÈØ×Þ×Ì í 1DRAFT MINUTES 2PUBLIC UTILITIES BOARD 3August 24, 2009 4 5After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was 6present, the Chair of the Public Utilities Board thereafter convened into an Open Meeting on 7Monday, August 24, 2009 at 9:00 a.m. in the Service Center Training Room, City of Denton 8Service Center, 901-A Texas Street, Denton, Texas. 9 Present: 10 Chair Dick Smith, Bill Cheek, Phil Gallivan, Randy Robinson, Barbara Russell, 11John Baines (arrived at 9:03 a.m.) 12 Absent: 13Bill Grubbs, excused 14 15 Ex Officio Members: 16 George C. Campbell, City Manager 17 Howard Martin, Assistant City Manager, Utilities 18 OPEN MEETING: 19 20 CONSENT AGENDA: 21 22The Public Utilities Board has received background information, staff’s recommendations, and 23has had an opportunity to raise questions regarding these items prior to consideration. 24 252)Recommend City Council approval of an Ordinance of the City of Denton, Texas authorizing 26the City Manager or his designee to execute a real estate Contract Of Sale between the City 27of Denton and M. Tony Wilkerson, and any other documents necessary to acquire an 28approximate 3.0 acres of land located in the Gideon Walker Survey, Abstract Number 1330, 29Denton County Texas, and being two parcels of land conveyed to M. Tony Wilkerson, by 30Deed recorded under County Clerk’s file number 03-87943, Real Property Records, Denton 31County, Texas; authorizing the expenditure of funds therefore; and providing an effective 32date. 33 Board Member John Baines moved to approve Item 2 with a second from Board Member 34 Randy Robinson. The motion was approved by a 6-0 vote. 35 36 37The meeting was adjourned by consensus at 9:54 a.m. 38 éÕÔÊÍÜÖØÑØ×ÉÛÑÜÏÒÔÏÉØÏÉÔÎÏÜÑÑÄ AGENDA INFORMATION SHEET AGENDA DATE: September 1, 2009 DEPARTMENT: Water ACM: Howard Martin, Utilities 349-8232 ______________________________________________________________________________ SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, authorizing the City Manager or his designee to execute an Easement Sales and Escrow Agreement between the City of Denton and the Texas Department of Aging and Disability Services acting on behalf of Denton State Supported Living Center, and the Brown Law Firm, L.L.P., and any other documents necessary to acquire an approximate 1.741 acre sanitary sewer easement tract located in the M.E.P. & P.R.R. Co. Survey, Abstract Number 950, Denton County Texas, and being part of that certain tract of land conveyed to the State of Texas, by Deed Recorded in Volume 435, Page 12, of the Real Property Records, Denton County, Texas; authorizing the expenditure of funds therefore; and providing an effective date. The Public Utilities Board recommends approval (6-0). BACKGROUND The approximate 1.741 acre easement tract is located on the Denton State School property just south of Unicorn Lake Boulevard, and is required as part of the State School Interceptor Sanitary Sewer Project. The 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 flow as the existing interceptor. It is projected that the new interceptor will be able to handle future flows to the year 2030. The consideration for the easement will be granted in exchange for improvements to the Denton State School Facilities consisting of fencing, paving/gravel, and landscaping. These 00 improvements are valued at $30,000., which is based on 80% of the land value assigned by the Denton County Appraisal District for the subject property. OPTIONS 1.Recommend that the City Council approve the proposed Ordinance. 2.Not recommend that the City Council approve the proposed Ordinance. 3.Table for future consideration. RECOMMENDATION Recommend approval of the Ordinance. PRIOR ACTION/REVIEW (Council, Boards, Commissions) th This item was presented to the Public Utilities at their August 24 meeting. The Board recommends approval (6-0). FISCAL INFORMATION 0000 Purchase price $30,000., standard closing costs are estimated to be $1,500.. BID INFORMATION None EXHIBITS 1.Location Map 2.Ordinance 3.PUB Meeting Minutes Respectfully submitted, Jimmy D. Coulter Director of Water/Wastewater Water Administration Prepared by, Pamela G. England Real Estate Specialist ÛÈØ×Þ×Ì ï ÷äôóúóè ÛÈØ×Þ×Ì í 1DRAFT MINUTES 2PUBLIC UTILITIES BOARD 3August 24, 2009 4 5After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was 6present, the Chair of the Public Utilities Board thereafter convened into an Open Meeting on 7Monday, August 24, 2009 at 9:00 a.m. in the Service Center Training Room, City of Denton 8Service Center, 901-A Texas Street, Denton, Texas. 9 Present: 10 Chair Dick Smith, Bill Cheek, Phil Gallivan, Randy Robinson, Barbara Russell, 11John Baines (arrived at 9:03 a.m.) 12 Absent: 13Bill Grubbs, excused 14 15 Ex Officio Members: 16 George C. Campbell, City Manager 17 Howard Martin, Assistant City Manager, Utilities 18 OPEN MEETING: 19 20 CONSENT AGENDA: 21 22The Public Utilities Board has received background information, staff’s recommendations, and 23has had an opportunity to raise questions regarding these items prior to consideration. 24 251)Recommend City Council approval of an Ordinance of the City of Denton, Texas, 26authorizing the City Manager or his designee to execute an Easement Sales and Escrow 27Agreement between the City of Denton and the Texas Department of Aging and Disability 28Services acting on behalf of Denton State Supported Living Center, and the Brown Law 29Firm, L.L.P., and any other documents necessary to acquire an approximate 1.741 acre 30sanitary sewer easement tract located in the M.E.P. & P.R.R. Co. Survey, Abstract Number 31950, Denton County Texas, and being part of that certain tract of land conveyed to the State 32of Texas, by Deed Recorded in Volume 435, Page 12, of the Real Property Records, Denton 33County, Texas; authorizing the expenditure of funds therefore; and providing an effective 34date. 35 Board Member John Baines moved to approve Item 1 with a second from Board Member 36 Randy Robinson. The motion was approved by a 6-0 vote. 37 38 39The meeting was adjourned by consensus at 9:54 a.m. 40 AGENDA INFORMATION SHEET AGENDA DATE: Í»°¬»³¾»® ïô îððç DEPARTMENT: Ë¬·´·¬·» Û²¹·²»»®·²¹ ACM: Ø±©¿®¼ Ó¿®¬·²ô Ë¬·´·¬·» íìçóèîíî ÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁ SUBJECT Ý±²·¼»® ¿¼±°¬·±² ±º ¿² ±®¼·²¿²½» ±º ¬¸» Ý·¬§ ±º Ü»²¬±²ô Ì»¨¿ô ¿³»²¼·²¹ ¬¸» º±®³ Ù»±°¸§·½¿´ Í«®ª»§ Ô·½»²» º±® ¹»±°¸§·½¿´ ¬»¬·²¹ ¿²¼ «®ª»§·²¹ °«®°±» ©·¬¸·² ³«²·½·°¿´ ¬®»»¬ ¿²¼ ³«²·½·°¿´ ´¿²¼ô ¿ ¿°°®±ª»¼ ¾§ ¬¸» Ý·¬§ ±º Ü»²¬±²ô Ì»¨¿ °«®«¿²¬ ¬± Ñ®¼·²¿²½» Ò±ò îððçóïìéå ¿²¼ °®±ª·¼·²¹ ¿² »ºº»½¬·ª» ¼¿¬»ò BACKGROUND ×² Ö«²» îððçô ¬¿ºº ½®¿º¬»¼ ¿ º±®³ Ù»±°¸§·½¿´ Í«®ª»§ Ô·½»²» ¼±½«³»²¬ô ©·¬¸ ¬¸» ·²¬»²¬ ¬± ¿½½±³³±¼¿¬» ¬¸» ²»»¼ ±º °®±°»½¬·ª» »·³·½ ¬»¬·²¹ ¿°°´·½¿²¬ô ¾»·²¹ ¾¿´¿²½»¼ ©·¬¸ ¬¸» ¼«¬§ ¬± »²«®» ¬¸» ·²¬»¹®·¬§ ±º ·²º®¿¬®«½¬«®» ¿²¼ §¬»³ò Î»»¿®½¸ ©¿ °»®º±®³»¼ ¾§ ®»ª·»©·²¹ ¬¸» »·³·½ «®ª»§ ´·½»²·²¹ °±´·½·» ±º ª¿®·±« ¹±ª»®²³»²¬¿´ »²¬·¬·»ô ¬¿¬»ô ´±½¿´ ¿²¼ º»¼»®¿´ò Ì¸» ©»·¹¸¬ ´·³·¬¿¬·±² º±® ª·¾®±»· ª»¸·½´» ¬¸¿¬ ©¿ ¬·°«´¿¬»¼ ·² ¬¸» Ù»±°¸§·½¿´ Í«®ª»§ Ô·½»²» ¼±½«³»²¬ ¿°°®±ª»¼ ·² Ö«²» îððç øïìôððð ¹®± ª»¸·½´» ©»·¹¸¬÷ ¸¿ °®±ª»¼ ¬± ¾» ¬±± ³¿´´ º±® °®¿½¬·½¿´ ¿°°´·½¿¬·±² ·² ¬¸» Þ¿®²»¬¬ Í¸¿´» ²¿¬«®¿´ ¹¿ º±®³¿¬·±²ò Ì¸» ª·¾®±»· ¹®± ª»¸·½´» ©»·¹¸¬ ´·³·¬¿¬·±²ô ¿ °®±°±»¼ ¿¬ îðôððð ´¾ °»® ¿¨´»ô ©·´´ ¿´´±© ¬¸» ¼»°´±§³»²¬ ±º ³»¼·«³ó·¦»¼ ª·¾®±»· ª»¸·½´» øíèôððð ´¾ ÙÊÉ÷ô ¸±©»ª»® °®±¸·¾·¬·²¹ ¬¸» ¼»°´±§³»²¬ ±º ´¿®¹»® ¬§°» ª·¾®±»· ª»¸·½´» øêêôððð ´¾ ÙÊÉ÷ò RECOMMENDATION Í¬¿ºº ®»½±³³»²¼ ¿°°®±ª¿´ ±º ¬¸» ±®¼·²¿²½»ò PRIOR ACTION/REVIEW (Council, Boards, Commissions) Ý·¬§ Ý±«²½·´ ½±²·¼»®¿¬·±² ¿²¼ ¿°°®±ª¿´ Ö«²» ïêô îððçò FISCAL INFORMATION Ì¸» Ù»±°¸§·½¿´ Í«®ª»§ Ô·½»²» ½±²¬»³°´¿¬» ¿ üîëòðð °»® ¿½®» º»» º±® ³«²·½·°¿´´§ ±©²»¼ ´¿²¼ ¿²¼ ¿ üîëòðð º»» º±® »¿½¸ «®ª»§ »²½®±¿½¸³»²¬ ·²¬¿²½» ©·¬¸·² ¿ ³«²·½·°¿´ ¬®»»¬ ®·¹¸¬ó±ºó ©¿§ò ×² ¿¼¼·¬·±²ô ·² ¬¸» ½¿» ±º ³«²·½·°¿´ ¬®»»¬ ®·¹¸¬ó±ºó©¿§ ±½½«°¿¬·±²ø÷ô ¬¸» ¬§°·½¿´ Î·¹¸¬ó ±ºóÉ¿§ Ð»®³·¬ ·²°»½¬·±² º»» ±º üéë °»® ·²¬¿²½» ©±«´¼ ¿°°´§ô ¾»·²¹ ¬¸» ½±¬ ®»½±ª»®§ ³»¿«®» º±® ·²°»½¬·±² »®ª·½»ô ©¸·½¸ ¸¿ ¾»»² «²·º±®³´§ ®»¯«·®»¼ ±º º®¿²½¸·» «¬·´·¬·»ô ¹¿ °·°»´·²» ´·½»²»»ô ¿²¼ ·³·´¿® ±°»®¿¬·±² ©·¬¸·² ¬¸» ³«²·½·°¿´ ¬®»»¬ ®·¹¸¬ó±ºó©¿§ ¬¸¿¬ ®»¯«·®» ³¿²¿¹»¼ ±ª»®·¹¸¬ò EXHIBITS ïòÑ®¼·²¿²½» Î»°»½¬º«´´§ «¾³·¬¬»¼ô Ö·³³§ Üò Ý±«´¬»® Ü·®»½¬±® ±º É¿¬»®ñÉ¿¬»©¿¬»® É¿¬»® ß¼³·²·¬®¿¬·±² Ð®»°¿®»¼ ¾§ Ð¿«´ É·´´·¿³±² Î»¿´ Û¬¿¬» Ó¿²¿¹»® ÷äôóúóè AGENDA INFORMATION SHEET AGENDA DATE: September 1, 2009 DEPARTMENT: Finance ACM: Jon Fortune SUBJECT Consider approval of a resolution authorizing the City of Denton, as Trustee, to sell certain real property located at 1180 Cottonwood Lane; consenting to the sale of certain real property to the highest bidder as provided by law; authorizing the Mayor of the City of Denton, Texas to execute a deed without warranty and any other documents necessary or appropriate to convey certain real property sold by the City of Denton, as Trustee, pursuant to Section 34.05 of the Texas Property Tax Code; and providing for an effective date. BACKGROUND The Texas Property Tax Code prescribes recourse to taxing units for property that has been sufficient to pay the lesser of the amount calculated under the judgment or the adjudged value is not received, and the taxing unit that requested the order of sale does not terminate the sale, the officer making the sale shall bid the property off to the taxing unit that requested the order of trustee for the use and benefit of itself and all other taxing units that established tax liens in the suit. This property has been in delinquency since 2007. On October 20, 2006, a tax suit was filed with a resultant judgment rendered on January 16, 2009. The property was taken to auction on April 7, 2009, a sufficient bid was not received, and the property was conveyed to the City of Denton as trustee for all participating taxing entities. On April 8, 2009 the property located at 1180 Cottonwood Lane and further described in the Denton County Deed Records, Deed No. 2009-58781 and Account No. 60834DEN. RECOMMENDATION Sawko & Burroughs, the tax attorney for the City of Denton, recommends the resale of the property at public auction for any price deemed sufficient by the officer conducting the sale, as sing the property by resolution of its governing body may request the sheriff or a constable to sell the entities by generating property taxes. Agenda Information Sheet September 1, 2009 Page 2 PRIOR ACTION/REVIEW (Council, Boards, Commissions) None FISCAL INFORMATION The above mentioned property has accumulated a total of $2,061.54 in delinquent taxes due to the City of Denton. Taxes due from the May 2009 Sawko and Burroughs taxing report for all taxing units are: City of Denton $2,061.54 Krum ISD $4,244.22 County Education District $346.73 County of Denton $904.56 Total $7,557.05 Under Texas P and (d) of this Section may be sold for any amount. EXHIBITS 1.Sawko & Burroughs Letter with Account Summary 2.Resolution Respectfully submitted: Bryan Langley Director of Finance éÕÔÊÍÜÖØÑØ×ÉÛÑÜÏÒÔÏÉØÏÉÔÎÏÜÑÑÄ AGENDA INFORMATION SHEET AGENDA DATE: Í»°¬»³¾»® ïô îððç DEPARTMENT: Ì®¿²°±®¬¿¬·±² Ñ°»®¿¬·±² ACM: Ø±©¿®¼ Ó¿®¬·²ô Ë¬·´·¬·»ô íìçóèîíî ______________________________________________________________________________ SUBJECT Ý±²·¼»® ¬¸» ¿¼±°¬·±² ±º ¿² ±®¼·²¿²½» ±º ¬¸» Ý·¬§ ±º Ü»²¬±²ô Ì»¨¿ô ¿«¬¸±®·¦·²¹ ¿²¼ ¼·®»½¬·²¹ ¬¸» Ý·¬§ Ó¿²¿¹»® ¬± »¨»½«¬» ¿² ¿³»²¼³»²¬ ¬± »¨°¿²¼ ¬¸» ½±°» ±º ¿½¬·ª·¬·» ¿²¼ »¨¬»²¼ ¬¸» ¬»®³ ±º ¿ ®·¹¸¬ ±º »²¬®§ ¿²¼ °±»·±²ô ¼¿¬»¼ Ó¿®½¸ íô îððçô ¿²¼ »¨¬»²¼»¼ ±² Ó¿§ ëô îððçô ¿²¼ «¾»¯«»²¬´§ »¨¬»²¼»¼ ±² Ö«²» îíô îððçô ·² º¿ª±® ±º ¬¸» Ü»²¬±² Ý±«²¬§ Ì®¿²°±®¬¿¬·±² ß«¬¸±®·¬§ øÜÝÌß÷ ¿«¬¸±®·¦·²¹ ÜÝÌß ¬± »²¬»® «°±² ¿²¼ ¬¿µ» °±»·±² ±º ½»®¬¿·² ®»¿´ °®±°»®¬§ ±º ¬¸» Ý·¬§ ±º Ü»²¬±² º±® ¬¸» °«®°±» ±º °»®º±®³·²¹ ¿½¬·ª·¬§ ¿ ¼»½®·¾»¼ ·² ß¬¬¿½¸³»²¬ ß ¸»®»¬±å ¿²¼ °®±ª·¼·²¹ ¿² »ºº»½¬·ª» ¼¿¬»ò BACKGROUND Ü»²¬±² Ý±«²¬§ Ì®¿²°±®¬¿¬·±² ß«¬¸±®·¬§ øÜÝÌß÷ ¬¿ºº ¿²¼ ¹»²»®¿´ ½±«²»´ ¸¿ª» ³»¬ ©·¬¸ Ý·¬§ ±º Ü»²¬±² ®»°®»»²¬¿¬·ª» ¬± ®»ª·»© ¬»®³ ¿²¼ ½±²¼·¬·±² ®»´¿¬·²¹ ¬± ¬¸» °®±°±»¼ ®¿·´ ½±®®·¼±® ®·¹¸¬ ±º ©¿§ øÎÑÉ÷ ¿¹®»»³»²¬ò Ì¸» Ý·¬§ ±º Ü»²¬±² øÐ¿®µ ¿²¼ Î»½®»¿¬·±²÷ ¸¿ ±©²»®¸·° ®·¹¸¬ ¬± ¿°°®±¨·³¿¬»´§ »·¹¸¬ ³·´» ±º ¬¸» º±®³»® Ó·±«®· Õ¿²¿ Ì»¨¿ øÓÕÌ÷ ®¿·´ ÎÑÉ ¿ °¿®¬ ±º ¬¸» Î¿·´ Þ¿²µ·²¹ °®±¹®¿³ò Ì¸» Ð¿®µ ¿²¼ Î»½®»¿¬·±² Ü»°¿®¬³»²¬ ½«®®»²¬´§ «¬·´·¦» ¿²¼ ³¿·²¬¿·² ¬¸· ÎÑÉ º±® ¬¸» Ü»²¬±² Þ®¿²½¸ Î¿·´ Ì®¿·´ ¿²¼ ¬¸» É¿¬»® Ü»°¿®¬³»²¬ ¸¿ ¿² »¿»³»²¬ ¿´±²¹ ¬¸» »¿¬»®² ¾±«²¼¿®§ ±º ¬¸» ½±®®·¼±® º±® ¿ íðó·²½¸ ®¿© ©¿¬»® ´·²»ò ß¼¼·¬·±²¿´ Ý·¬§ ±º Ü»²¬±² «¬·´·¬·» ¿´± ±½½«°§ »¿»³»²¬ ·² ¬¸· ½±®®·¼±®ò ÜÝÌß · ®»¯«»¬·²¹ ¬¸» Ý·¬§ ±º Ü»²¬±² ¬± °®±ª·¼» ¿ °»®°»¬«¿´ »¿»³»²¬ ·² ¬¸» ½±®®·¼±® ¬± ¿´´±© º±® ¬¸» ½±²¬®«½¬·±² ±º ¬¸» °®±°±»¼ ®»¹·±²¿´ ®¿·´ ´·²» ¾»¬©»»² Ü»²¬±²ô Ø·¹¸´¿²¼ Ê·´´¿¹»ô Ô»©·ª·´´» ¿²¼ Ý¿®®±´´¬±²ò ÜÝÌßô Ý·¬§ ±º Ü»²¬±² ¿²¼ ®»°®»»²¬¿¬·ª» ©·¬¸ Ü¿´´¿ ß®»¿ Î¿°·¼ Ì®¿²·¬ øÜßÎÌ÷ ¿®» ½«®®»²¬´§ ²»¹±¬·¿¬·²¹ ±º ¬»®³ ¿²¼ ½±²¼·¬·±² ±º ¬¸» °®±°±»¼ ¿¹®»»³»²¬ ¬¸¿¬ ©±«´¼ »¬¿¾´·¸ ±°»®¿¬·²¹ ®·¹¸¬ ±º »¿½¸ »²¬·¬§ ¿½½»·²¹ ¬¸» ½±®®·¼±®ò ÜÝÌß ¸¿ ¬¿®¹»¬»¼ Ü»½»³¾»® îðïð ¬± ·²·¬·¿¬» ®¿·´ »®ª·½» ¾»¬©»»² Ü»²¬±² ¿²¼ Ý¿®®±´´¬±²ô ²»½»·¬¿¬·²¹ ½±²¬®«½¬·±² ¿½¬·ª·¬·» ¾»¹·² ¿ ±±² ¿ °±·¾´» ¿´±²¹ ¬¸» ½±®®·¼±®ò Ý·¬§ ±º Ü»²¬±² ¬¿ºº · ®»½±³³»²¼·²¹ ½±²·¼»®¿¬·±² ±º ¿² ¿³»²¼³»²¬ ¬± ¬¸» ·²·¬·¿´ çðó¼¿§ Î·¹¸¬ ±º Û²¬®§ ¿²¼ Ð±»·±² øÎÑÛ÷ ¹®¿²¬»¼ ¾§ Ñ®¼·²¿²½» îððçóðëç ±² Ó¿®½¸ íô îððçò ß íðó¼¿§ »¨¬»²·±² ±º ¬¸» Ó¿®½¸ îððç ÎÑÛ ©¿ »¨¬»²¼»¼ ¾§ Ñ®¼·²¿²½» îððçóïïè ±² Ó¿§ ëô îððç ¿²¼ ¬¸» ÎÑÛ ©¿ «¾»¯«»²¬´§ ¿³»²¼»¼ ¬± »¨°¿²¼ ¬¸» ½±°» ±º ½±²¬®«½¬·±² ¿½¬·ª·¬·» °»®³·¬¬»¼ ·² ¬¸» ½±®®·¼±® ¿²¼ »¨¬»²¼ ¬¸» ÎÑÛ º±® éð ¼¿§ô ¬»®³·²¿¬·²¹ Ì«»¼¿§ô Í»°¬»³¾»® èô îððçò Ì¸» »¨°¿²¼»¼ ¿²¼ »¨¬»²¼»¼ ÎÑÛ »²¬®§ ©¿ ¹®¿²¬»¼ ¬¸®±«¹¸ Ñ®¼·²¿²½» îððçóïìç ±² Ö«²» îíô îððçò Ì¸» °®±°±»¼ º±«®¬¸ ¿³»²¼³»²¬ ½¿´´ º±® ¿² »¨°¿²·±² ±º ¬¸» »¨·¬·²¹ ÎÑÛ ½±°» ±º ¿½¬·ª·¬·» ¬± °»®³·¬ ¹»²»®¿´ ½±²¬®«½¬·±² ¿½¬·ª·¬·» ·² ¬¸» ½±®®·¼±® ©·¬¸·² Ð¸¿» ×ô Ø·½µ±®§ Í¬®»»¬ ¬± Í¸¿¼§ Ñ¿µ ¿²¼ ¬¸» ¿¼¼·¬·±² ±º ¿ °®±°±»¼ Ð¸¿» ××ô Í¸¿¼§ Ñ¿µ ¬± Þ®·²µ»®ò ×²·¬·¿¬·±² ±º ½±²¬®«½¬·±² ¿½¬·ª·¬·» ©·´´ ¾» ½±²¬·²¹»²¬ «°±² ÜÝÌß ¿¬·º§·²¹ ®»³¿·²·²¹ Ü»ª»´±°³»²¬ Î»ª·»© Ý±³³·¬¬»» Ý±³³»²¬ ®»´¿¬·²¹ ¬± ½±²¬®«½¬·±² °´¿² ®»½»²¬´§ «¾³·¬¬»¼ ¬± ¬¸» Ý·¬§ ±º Ü»²¬±²ò PRIOR ACTION/REVIEW Ñ®¼·²¿²½» îððçóïìçô ¼¿¬»¼ Ö«²» îíô îððçô »¨¬»²¼»¼ ¬¸» ÎÑÛ ¾§ éð ¼¿§ ¬± Í»°¬»³¾»® èô îððç ¿²¼ »¨°¿²¼·²¹ ¬¸» ½±°» ±º ½±²¬®«½¬·±² ¿½¬·ª·¬·» ·² Ð¸¿» × ±º ¬¸» ½±®®·¼±®ò Ñ®¼·²¿²½» îððçó ïïè ©¿ ¿¼±°¬»¼ ±² Ó¿§ ëô îððç »¨¬»²¼·²¹ ¬¸» ±®·¹·²¿´ çðó¼¿§ ÎÑÛ »²¬®§ ¾§ íð ¼¿§ò Ñ®¼·²¿²½» îððçóðëç ©¿ ¿¼±°¬»¼ ±² Ó¿®½¸ íô îððç °®±ª·¼·²¹ ÜÝÌß ¿ çðó¼¿§ Î·¹¸¬ ±º Û²¬®§ ¿²¼ Ð±»·±² ¬± ½±²¼«½¬ ´·³·¬»¼ °®»ó½±²¬®«½¬·±² ¿½¬·ª·¬·»ò Í¬¿ºº ¾®·»º»¼ ¬¸» Ý·¬§ Ý±«²½·´ ±² ¬¸» °®±°±»¼ °»®°»¬«¿´ »¿»³»²¬ º±® ¬¸» ½±®®·¼±® ¼«®·²¹ Ý´±»¼ Í»·±² Ó»»¬·²¹ ±² Ú»¾®«¿®§ ïéô îððçô Ó¿®½¸ íô îððçô ß°®·´ éô îððçô ß°®·´ îïô îððçô Ó¿§ ëô îððçô Ö«²» ïêô îððçô Ö«²» îíô îððç ¿²¼ ß«¹«¬ ìô îððçò OPTIONS ïòÜ± ²±¬ »¨¬»²¼ ±® »¨°¿²¼ ¬¸» »¨·¬·²¹ ÎÑÛ ß¹®»»³»²¬ò îòÛ¨¬»²¼ ¬¸» »¨·¬·²¹ ÎÑÛ °»®³·¬¬·²¹ ½±²¬®«½¬·±² ¿½¬·ª·¬·» ±²´§ ·² Ð¸¿» × íòß°°®±ª» ¬¸» °®±°±»¼ »¨¬»²·±² ¿²¼ »¨°¿²·±² ±º ¬¸» ÎÑÛ ¿¹®»»³»²¬ ¿ °®»»²¬»¼ ¾§ ¬¿ººô Ð¸¿» × ¿²¼ Ð¸¿» ××ò ìòÛ¨¬»²¼ ¿²¼ »¨°¿²¼ ¬¸» ÎÑÛ ¬± ·²½´«¼» ¬¸» »²¬·®» Ý·¬§ ±º Ü»²¬±² Î¿·´ Ý±®®·¼±®ò ëòÐ®±ª·¼» ¬¿ºº ©·¬¸ ¿¼¼·¬·±²¿´ ¼·®»½¬·±²ò FINANCIAL Ì¸» °®±°±»¼ ¿¹®»»³»²¬ ©·´´ ®»¯«·®» ÜÝÌß ¬± «¾³·¬ ¿ «³ ±º üïðòðð ¬± ¬¸» Ý·¬§ ±º Ü»²¬±² ·² ½±²·¼»®¿¬·±² º±® ¬¸» ®·¹¸¬ ±º »²¬®§ ¿²¼ °±»·±²ò EXHIBITS ïòÜ®¿º¬ Ñ®¼·²¿²½» îòÑ®¼·²¿²½» îððçóïìç íòÑ®¼·²¿²½» îððçóïïè ìòÑ®¼·²¿²½» îððçóðëç Î»°»½¬º«´´§ Í«¾³·¬¬»¼æ Ó¿®µ Ò»´±² Ì®¿²°±®¬¿¬·±² Ü·®»½¬±® ÷äôóúóè ÷äôóúóè EXHIBIT 1 ÑßÕ Ø×ÝÕÑÎÇ Þ»¹·²²·²¹ ±º Ð¸¿» ï ÌÎÑÇ Øò ÔßÙÎÑÒÛ Ì»³°±®¿®§ Ý´±·²¹ ¿¬ Í§½¿³±®» Ð®±°±»¼ Ð»®³¿²»²¬ Ý´±·²¹ ¿¬ Ð®¿·®·» Ð®±°±»¼ Ð»®³¿²»²¬ Ý´±·²¹ ¿¬ Î±¾»®¬±² Ì»³°±®¿®§ Ý´±·²¹ ¿¬ Ó·´´ Ð®±°±»¼ Ð»®³¿²»²¬ Ý´±·²¹ ¿¬ Ü«²½¿² ÐßÎÕ Ì»³°±®¿®§ Ý´±·²¹ ¿¬ Í¸¿¼§ Ñ¿µ ÜÝÌß Þ« Ñ°»®¿¬·±² Û²¼ ±º Ð¸¿» ï ßÔÛÙÎÛ Ê×ÍÌß ððòîëðòë Ó·´» ÷äôóúóè ÷äôóúóè AGENDA INFORMATION SHEET AGENDA DATE: Í»°¬»³¾»® ïô îððç DEPARTMENT: É¿¬»® ACM: Ø±©¿®¼ Ó¿®¬·²ô Ë¬·´·¬·» íìçóèîíî ÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁ SUBJECT Ý±²·¼»® ¿¼±°¬·±² ±º ¿² ±®¼·²¿²½» ¿«¬¸±®·¦·²¹ ¬¸» Ý·¬§ Ó¿²¿¹»® ¬± »¨»½«¬» ¿ Ý±²»²¬ Ì± ß·¹²³»²¬ ¿²¼ ß«³°¬·±² ±º Ñ¾´·¹¿¬·±² ¾»¬©»»² ¬¸» Ý·¬§ ±º Ü»²¬±²ô Ì¿®¹¿ Ò±®¬¸ Ì»¨¿ ÔÐ øÌßÎÙß÷ ¿²¼ ß¼ª¿²½» Ó·¼¬®»¿³ô ÔòÐò øÓ×ÜÍÌÎÛßÓ÷ ½±²»²¬·²¹ ¬± ¬¸» ¿·¹²³»²¬ ±º ½»®¬¿·² ®·¹¸¬ ¿²¼ ±¾´·¹¿¬·±² º®±³ Ó×ÜÍÌÎÛßÓ ¬± ÌßÎÙß ®»´¿¬»¼ ¬± ø·÷ Î·¹¸¬ Ñº É¿§ Ô·½»²» Ì± Ë» Ý»®¬¿·² Ý·¬§ Ð®±°»®¬§ Ú±® Ð´¿½»³»²¬ ±º Ì®¿²³··±² Ð·°»´·²»ô ¼¿¬»¼ ±² ±® ¿¾±«¬ ß«¹«¬ ïïô îððëô º®±³ ¬¸» Ý·¬§ ¬± Ó×ÜÍÌÎÛßÓå ø··÷ Î·¹¸¬ Ñº É¿§ Ô·½»²» Ì± Ë» Ý»®¬¿·² Ý·¬§ Ð®±°»®¬§ Ú±® Ð´¿½»³»²¬ Ñº Ì®¿²³··±² Ð·°»´·²»ô ¼¿¬»¼ ±² ±® ¿¾±«¬ Ö«´§ îèô îððêô º®±³ ¬¸» Ý·¬§ ¬± Ó×ÜÍÌÎÛßÓå ¿²¼ ø···÷ Ô·½»²» ß¹®»»³»²¬ Ì± Ë» Ý»®¬¿·² Ý·¬§ Ð®±°»®¬§ Ú±® Ð´¿½»³»²¬ Ñº Ì®¿²³··±² Ð·°»´·²»ô ¼¿¬»¼ ±² ±® ¿¾±«¬ Ö¿²«¿®§ îëô îððêô º®±³ ¬¸» Ý·¬§ ¬± Ó·¼¬®»¿³å °®±ª·¼·²¹ º±® »ª»®¿¾·´·¬§ ¿²¼ ¿² »ºº»½¬·ª» ¼¿¬»ò BACKGROUND Ñª»® ¬¸» ½±«®» ±º ¬¸» ´¿¬ »ª»®¿´ §»¿® ¿ ¿ ®»«´¬ ±º ¬¸» Þ¿®²»¬¬ Í¸¿´» ¹¿ ¼»ª»´±°³»²¬ô ¬¸» Ý·¬§ ¸¿ ®»¯«·®»¼ Ô·½»²» ß¹®»»³»²¬ ©·¬¸ ±°»®¿¬±® ½±²¬®«½¬·²¹ Ù¿ °·°»´·²» ©·¬¸·² ¬¸» Ý·¬§ ´·³·¬ ±® ¬¸» ÛÌÖ ¿ °¿®¬ ±º ¬¸» Ü»²¬±² Ü»ª»´±°³»²¬ Ý±¼» ®»¯«·®»³»²¬ò ×² ¬¸» °¿¬ ß¼ª¿²½» Ó·¼¬®»¿³ ÔòÐòô ¸¿ ¾»»² ¿ °¿®¬§ ¬± »ª»®¿´ Ô·½»²» ß¹®»»³»²¬ º±® ¬¸» ¼»ª»´±°³»²¬ ¿²¼ ½±²¬®«½¬·±² ±º ¹¿ °·°»´·²» ¿½¬·ª·¬·» ·² Ü»²¬±²ò Ó·¼¬®»¿³ ÔòÐò ¸¿ ¿·¹²»¼ ¿²¼ ¬®¿²º»®®»¼ ¬¸»·® ®·¹¸¬ «²¼»® ¬¸®»» ±º ¬¸±» ¿¹®»»³»²¬ ¬± Ì¿®¹¿ Ò±®¬¸ Ì»¨¿ ÔÐô «¾¶»½¬ ¬± ¬¸» ½±²»²¬ ±º ¬¸» ¿·¹²³»²¬ ¾§ ¬¸» Ý·¬§ ±º Ü»²¬±²ò Ì¿®¹¿ Ò±®¬¸ Ì»¨¿ ÔÐô · ¿ «¾·¼·¿®§ ±º Ì¿®¹¿ Î»±«®½» ©¸± · ±²» ±º ¬¸» ´¿®¹»¬ °®±ª·¼»® ±º ·²¬»¹®¿¬»¼ ³·¼¬®»¿³ ²¿¬«®¿´ ¹¿ »®ª·½» ·² ¬¸» ½±«²¬®§ò Ì¸»§ ±©² ±® ±°»®¿¬» ±ª»® ïïôíðð ³·´» ±º ²¿¬«®¿´ ¹¿ ¹¿¬¸»®·²¹ ¿²¼ ÒÙÔ °·°»´·²» ©·¬¸ ²¿¬«®¿´ ¹¿ ¹¿¬¸»®·²¹ §¬»³ ½±ª»®·²¹ ïìôìðð ¯«¿®» ³·´» ¿²¼ îî ²¿¬«®¿´ ¹¿ °®±½»·²¹ °´¿²¬ò Ì¿®¹¿ ¸¿ °¿·¼ ¿´´ º»» ®»´¿¬»¼ ¬± ¬¸» ¬®¿²º»® ±º ¬¸» ÎÑÉ Ô·½»²»ô ·²±º¿® ¿ ¬± ¬¸» °®±°»®¬§ ¼»½®·¾»¼ ·² ¬¸» ß¹®»»³»²¬ô ¿²¼ ¬¸» ß³»²¼·²¹ ÎÑÉ Ô·½»²»ô ¿²¼ ¸¿ °±¬»¼ ¬¸»·® °»®º±®³¿²½» ¾±²¼ô ¿²¼ °®±ª·¼»¼ ¬¸» ·²«®¿²½» ¿ ®»¯«·®»¼ ¾§ ¬¸» ÎÑÉ Ô·½»²»ô ß³»²¼·²¹ ÎÑÉ Ô·½»²»ô ¿²¼ ¬¸» Ô·½»²» ¬± ¿²¼ ·² º¿ª±® ±º ¬¸» Ý·¬§ò OPTIONS ïòÎ»½±³³»²¼ ¬¸¿¬ ¬¸» Ý·¬§ Ý±«²½·´ ¿°°®±ª» ¬¸» °®±°±»¼ Ñ®¼·²¿²½»ò îòÒ±¬ ®»½±³³»²¼ ¬¸¿¬ ¬¸» Ý·¬§ Ý±«²½·´ ¿°°®±ª» ¬¸» °®±°±»¼ Ñ®¼·²¿²½»ò íòÌ¿¾´» º±® º«¬«®» ½±²·¼»®¿¬·±²ò RECOMMENDATION Î»½±³³»²¼ ¿°°®±ª¿´ ±º ¬¸» Ñ®¼·²¿²½»ò PRIOR ACTION/REVIEW (Council, Boards, Commissions) Ò±²» FISCAL INFORMATION Ò±²» BID INFORMATION Ò±²» EXHIBITS ïòÑ®¼·²¿²½» Î»°»½¬º«´´§ «¾³·¬¬»¼ô Ö·³³§ Üò Ý±«´¬»® Ü·®»½¬±® ±º É¿¬»®ñÉ¿¬»©¿¬»® É¿¬»® ß¼³·²·¬®¿¬·±² Ð®»°¿®»¼ ¾§ô Ð¿³»´¿ Ùò Û²¹´¿²¼ Î»¿´ Û¬¿¬» Í°»½·¿´·¬ ÷äôóúóè éÕÔÊÍÜÖØÑØ×ÉÛÑÜÏÒÔÏÉØÏÉÔÎÏÜÑÑÄ AGENDA INFORMATION SHEET AGENDA DATE æ Í»°¬»³¾»® ïô îððç DEPARTMENT æ Ì®¿²°±®¬¿¬·±² Ñ°»®¿¬·±² ACM æ Ø±©¿®¼ Ó¿®¬·²ô ×²¬»®·³ Ý·¬§ Ó¿²¿¹»® SUBJECT Ý±²·¼»® ¿¼±°¬·±² ±º ¿² ±®¼·²¿²½» ¿°°®±ª·²¹ ¿² ¿·¹²³»²¬ ±º ¿ ´»¿»¸±´¼ ·²¬»®»¬ ·² ¿² ¿·®°±®¬ ´»¿» ¿¹®»»³»²¬ ¿¬ Ü»²¬±² Ó«²·½·°¿´ ß·®°±®¬ º®±³ Ó¿®§ Ó¿¸±²ô ¬± Ø¿®±´¼ Ûò ¿²¼ Õ¿¬¸§ Öò Ý«´° ´±½¿¬»¼ ¿¬ çðì ß»®±²½¿ Ü®·ª»ô Ü»²¬±²ô Ì»¨¿ ¿¬ ¬¸» Ü»²¬±² Ó«²·½·°¿´ ß·®°±®¬ ¿²¼ °®±ª·¼·²¹ ¿² »ºº»½¬·ª» ¼¿¬»ò Ì¸» ¿·®°±®¬ ¿¼ª·±®§ ¾±¿®¼ ®»½±³³»²¼ ¿°°®±ª¿´ øêóð÷ò BACKGROUND ß¬¬¿½¸»¼ · ¿ Ô»¿» ß·¹²³»²¬ ß¹®»»³»²¬ øÛ¨¸·¾·¬ Þ ¬± ¿¬¬¿½¸»¼ Ñ®¼·²¿²½»÷¬± ¿«¬¸±®·¦» Ó¿®§ Ó¿¸±² ¬± ¿·¹² ¬¸» ´»¿» ±º °®±°»®¬§ µ²±©² ¿ çðì ß»®±²½¿ Ü®·ª»ô Ü»²¬±²ô Ì»¨¿ éêîðé ¬± Ø¿®±´¼ Ûò ¿²¼ Õ¿¬¸§ Öò Ý«´°ò Ì¸» ¿·¹²³»²¬ ®»¯«·®» ¬¸» Ý«´° ¬± ¿«³» ´·¿¾·´·¬§ º±® °»®º±®³¿²½» «²¼»® »¨·¬·²¹ ¬»®³ ¿²¼ ½±²¼·¬·±² ±º ¬¸» Ó¿¸±² Ô»¿»ô ¬± °¿§ ¿ üëðð ¬®¿²º»® º»» ¿²¼ ¿¼³·²·¬®¿¬·ª» ½±¬ »¨°»®·»²½»¼ ¾§ ¬¸» Ý·¬§ ·² ¬¸» °®±½»·²¹ ±º ¬¸· ¿·¹²³»²¬ò Ì¸» ¿¬¬¿½¸»¼ ±®¼·²¿²½» ©·´´ »ºº»½¬ ¬¸· ¬®¿²º»® ¿ ®»½±³³»²¼»¼ ¾§ ¬¸» ß·®°±®¬ ß¼ª·±®§ Þ±¿®¼ øßßÞ÷ ±² Ö«´§ èô îððçò Ì¸» ßßÞ ®»½±³³»²¼»¼ ¿°°®±ª¿´ ±º ¬¸» Ô»¿» ß·¹²³»²¬ ©·¬¸±«¬ ¿²§ º«®¬¸»® ½¸¿²¹» ¬± ¬»®³ ±º ¬¸» ±®·¹·²¿´ ´»¿»ò FISCAL INFORMATION ß üëðð ¬®¿²º»® º»» ©·´´ ¾» ®»¯«·®»¼ ¿²¼ ¿² ¿¼¼·¬·±²¿´ ¿¼³·²·¬®¿¬·ª» º»» º±® ®»¿±²¿¾´» ¿¬¬±®²»§ º»» ¿²¼ ¬¿ºº ¬·³» ©·´´ ¿´± ¾» ¼«»ò Ì¸» ´»¿» ®»¯«·®» ¿² ¿¼¶«¬³»²¬ ¬± ¬¸» ´»¿» »ª»®§ »½±²¼ §»¿® ¾¿»¼ ±² ¬¸» Ü»°¿®¬³»²¬ ±º Ô¿¾±® Ý±²«³»® Ð®·½» ×²¼»¨ øÝÐ×÷ º±® ¬¸» Ü¿´´¿óÚ±®¬ É±®¬¸ ß®»¿ò EXHIBITS ïò ß·¹²³»²¬ Ñ®¼·²¿²½» Î»°»½¬º«´´§ «¾³·¬¬»¼æ ÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁÁ Ï«»²¬·² Ø·¨ ß·®°±®¬ Ó¿²¿¹»® ï ÷äôóúóè éÕÔÊÍÜÖØÑØ×ÉÛÑÜÏÒÔÏÉØÏÉÔÎÏÜÑÑÄ AGENDA INFORMATION SHEET AGENDA DATE æ Í»°¬»³¾»® ïô îððç DEPARTMENT æ Ì®¿²°±®¬¿¬·±² Ñ°»®¿¬·±² ACM æ Ø±©¿®¼ Ó¿®¬·²ô íìçóèîíî SUBJECT Ý±²·¼»® ¿¼±°¬·±² ±º ¿² ±®¼·²¿²½» ±º ¬¸» Ý·¬§ ±º Ü»²¬±²ô Ì»¨¿ ¿°°®±ª·²¹ ¿ Ô»¿» Û¬±°°»´ ß¹®»»³»²¬ ¾»¬©»»² ¬¸» Ý·¬§ ±º Ü»²¬±²ô Ö»¬ É±®µ ß·® Ý»²¬»® Ó¿²¿¹»³»²¬ô ÔòÔòÝò ¿²¼ Ù®»¿¬»® Û¿¬ Ì»¨¿ Ý»®¬·º·»¼ Ü»ª»´±°³»²¬ Ý±®°±®¿¬·±²å ¿²¼ °®±ª·¼·²¹ ¿² »ºº»½¬·ª» ¼¿¬»ò Ì¸» ß·®°±®¬ ß¼ª·±®§ Þ±¿®¼ ®»½±³³»²¼ ¿°°®±ª¿´ øêóð÷ò BACKGROUND Ì¸· ®»¯«»¬ ¬± ¿°°®±ª» ¿ Ô»¿» Û¬±°°»´ ¬± ¿´´±© °»®³¿²»²¬ º·²¿²½·²¹ º±® ¬¸» ½±²¬®«½¬·±² ±º ¬¸» ²»© ¸¿²¹¿® º±®³¿´´§ ±°»²»¼ ¾§ Ö»¬ É±®µ ß·® Ý»²¬»® ±² Ö«²» çô îððç · ·³·´¿® ¬± ¿½¬·±² ¬¿µ»² ¾§ ¬¸» Ý·¬§ ·² îððê º±® ¬¸» °®»ª·±« Ö»¬ É±®µ ¸¿²¹¿®ò Ì¸» ½±³³·¬³»²¬ ®»¯«»¬»¼ º®±³ ¬¸» Ý·¬§ · ¬± ®»½±¹²·¦» ¿ ®·¹¸¬ ±º ¬¸» Ô»²¼»®ô Ù®»¿¬»® Û¿¬ Ì»¨¿ Ý»®¬·º·»¼ Ü»ª»´±°³»²¬ Ý±®°±®¿¬·±²ô ¬± ¿«³» ¬¸» ¹®±«²¼ ´»¿» ©·¬¸ Ö»¬ É±®µ ßª·¿¬·±²ô ×²½ò ¼¿¬»¼ Ò±ª»³¾»® ïêô îððì ¿ ¿³»²¼»¼ ß°®·´ ïëô îððè ·² ¬¸» »ª»²¬ ±º ¿ ¼»º¿«´¬ ±º ¬¸» ±®·¹·²¿´ ´»¿»ò Ì¸· ¿½¬·±² ¼±» ²±¬ ½¸¿²¹» ¬¸» ¬»®³ ±º ¬¸» ±®·¹·²¿´ ´»¿» »¨½»°¬ º±® ¬¸» ®·¹¸¬ ±º ¿·¹²³»²¬ ·² ®»´¿¬·±² ¬± ¬¸» ½«®®»²¬ ´»²¼»®ò RECOMMENDATION Ì¸» ß·®°±®¬ ß¼ª·±®§ Þ±¿®¼ øßßÞ÷ ®»½±³³»²¼»¼ ¿°°®±ª¿´ ¾§ ¬¸» Ý·¬§ Ý±«²½·´ ±º ¬¸» Ô»¿» Û¬±°°»´ ©·¬¸±«¬ º«®¬¸»® ¿³»²¼³»²¬ ¬± ¬¸» ½«®®»²¬ ´»¿»ò Ì¸» ßßÞ ª±¬» ©¿ êóð ¬± ®»½±³³»²¼ ¿°°®±ª¿´ò EXHIBITS ïòÔ»¿» Û¬±°°»´ Ñ®¼·²¿²½» ©·¬¸ ¿¬¬¿½¸»¼ »¨¸·¾·¬å îòÌ¸·®¼ ß³»²¼³»²¬ ¬± ¬¸» ß·®°±®¬ Ô»¿» ß¹®»»³»²¬ ©·¬¸ Ö»¬ É±®µ ß·® Ý»²¬»® Ó¿²¿¹»³»²¬ ¼¿¬»¼ ß°®·´ ïëô îððèò Î»°»½¬º«´´§ «¾³·¬¬»¼æ Ï«»²¬·² Ø·¨ ß·®°±®¬ Ó¿²¿¹»® ï ÷äôóúóè ÷äôóúóè éÕÔÊÍÜÖØÑØ×ÉÛÑÜÏÒÔÏÉØÏÉÔÎÏÜÑÑÄ AGENDA INFORMATION SHEET AGENDA DATE: September 1, 2009 DEPARTMENT: Finance ACM: Jon Fortune ______________________________________________________________________________ SUBJECT Hold a public hearing and receive citizen input on the FY 2009-10 Proposed Budget. BACKGROUND City Charter and State Law require that prior to budget adoption, a public hearing be conducted to allow citizens the opportunity to provide input on the Proposed Budget. The required notice of the public hearing was published August 20, 2009, in the Denton Record Chronicle. The notice http://www.cityofdenton.com and on the public access channel. PRIOR ACTION/REVIEW (Council, Boards, Commissions) The 2009-10 Proposed Budget was submitted to the City Council on July 31, 2009. A City Council Budget Workshop was held on August 6, 2009. Copies of the Proposed Budget are available to the public at any City of Denton library branch, and an electronic copy of the document is available on-http://www.cityofdenton.com. FISCAL INFORMATION The 2009-10 Proposed Budget totals $572,244,518 in estimated resources and $563,789,096 in estimated expenditures. Respectfully submitted: Bryan Langley Director of Finance éÕÔÊÍÜÖØÑØ×ÉÛÑÜÏÒÔÏÉØÏÉÔÎÏÜÑÑÄ éÕÔÊÍÜÖØÑØ×ÉÛÑÜÏÒÔÏÉØÏÉÔÎÏÜÑÑÄ AGENDA INFORMATION SHEET AGENDA DATE: September 1, 2009 DEPARTMENT: Planning and Development ACM: Fred Greene SUBJECT - S09-0002 (Villas at North Lakes) Consider adoption of an ordinance of the city of Denton, Texas, approving a Specific Use Permit (SUP) for forty-six (46) attached and fifty-four (54) detached single family dwelling units on approximately 30.7 acres located within a Neighborhood Residential 3 (NR-3) zoning district on the southwest corner of Hinkle Drive and Windsor Street; providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date. (S09- 0002) The Planning and Zoning Commission recommended denial of this request (5-0). BACKGROUND In accordance with Section 35.5.2.2 of the Denton Development Code (DDC), single-family detached dwelling units are permitted by-right within the NR-3 zoning district. However, an attached SUP is required for single-family dwelling units within the NR-3 zoning district. The proposed development consists of both single-family attached and detached units as shown on the attached site plan (See Exhibit 6). Per Section 35.6.4 of the DDC, an SUP may be granted if the proposed use conforms, or can be made to conform through the use of conditions to meet the standards established in the NR-3 zoning district. This proposed development will have an average lot size of 10,000 square feet for the detached units and 4,856 square feet for the attached units. The average lot size of 10,000 square feet proposed for the detached units is similar to the existing residential developments within the immediate area. To the west of the subject property is a Neighborhood Residential 6 (NR-6) zoning district developed with minimum lots sizes of approximately 10,200 square feet. The proposed average lot size for the attached single-family units is smaller than the existing surrounding residential development. However, the overall development as conditioned by a previously approved Overlay District and the proposed site plan will create a diverse housing opportunity for the area and is compatible with the surrounding developments. The conditions as proposed will also ensure that this development conforms to the standards established within the NR-3 zoning district. As of this writing, staff has received two (2) responses from property owners within 200 feet of the subject property in opposition to the request. Public notification information is provided in Exhibit 5. PRIOR ACTION/REVIEW On February 6, 2007, the City Council approved an ordinance (Ord No.2007-032) for a zoning change from Neighborhood Residential 2 (NR-2) district to a Neighborhood Residential 3 (NR- 3) district with overlay conditions as follows: a.The woods along the south and east boundary of the site will be preserved. b. decorative finial at the corner of each lot will be installed along the perimeter of the site. Rows of shrubbery between the fence and sidewalk will be installed to obtain privacy. The distance from the fence and back of sidewalk will be a minimum of 12 feet. The developer, and later an H.O.A, will take responsibility for maintenance and irrigation of the approximately 3- acre perimeter landscape area. c.Except for glazing, doors, and trim, the exterior of the homes shall be vitrified clay brick or stone for all vertical surfaces with a direct load path to the foundation. d.The following restrictions and conditions shall apply to single-family detached homes: Street right-of-way shall be a minimum of 56 feet. Î Parkway width shall be a minimum of 9 feet Î Sidewalk width shall be a minimum of 5 feet. Î Front yard setback shall be a minimum of 15 feet. Î Side yard setback shall be a minimum of 6 feet. Î Rear yard setback shall be a minimum of 10 feet, except for Rear Entry Garages. Î Rear yard setback shall be a minimum of 20 feet if garages are accessed through Î the rear of the property. Front Entry Garages shall be setback 12 feet from the front most wall of that unit. Î Three car Garages shall not face the street. Î May 20, 2009 Planning and Zoning Commission public hearing July 21, 2009 City Council Public Hearing This item was tabled from the August 18, 2009 City Council meeting. OPTIONS 1.Approve as submitted 2.Approve subject to conditions 3.Deny 4.Postpone consideration 5.Table item 2 RECOMMENDATION denial The Planning and Zoning Commission recommends of this Specific Use Permit request (5-0). approval The Development Review Committee (DRC) recommends of this Specific Use Permit request subject to the following conditions: 1.The approval of this Specific Use Permit shall not grant any waiver to the Overlay conditions approved with Ordinance number 2007.032. 2.The site plan as submitted and shown on Exhibit 6 shall be binding and guide the development of this Specific Use Permit. 3.All single family attached development shall conform to the requirements of the site plan attached hereto and incorporated by reference as Exhibit B; however, any other use permitted by right under the NR-3 zoning classification and use designation, including the single family detached uses shown therein, are not subject to any restrictions imposed or implied by the attached site plan, and are subject only to the general zoning restrictions imposed for the NR-3 zoning district classification and use designation by the Denton Development Code. 4.The applicant shall provide a minimum 50 foot landscape buffer along Windsor Street and Hinkle Drive and a minimum 30 foot landscape buffer along the southern property boundary as shown on the site plan. 5.The applicant shall preserve all trees currently existing on the western property boundaries or the trees can be removed through sufficient mitigation methods approved EXHIBITS 1.Staff Analysis 2.Location Map 3.Existing Zoning Map 4.Future Land Use Map 5.Notification Information 6.Proposed Site/Landscape Plan 7.Site Photographs 8.Letter From Applicant 9.Letters in Opposition 10.May 20, 2009 Planning and Zoning Commission Minutes 11.Ordinance 3 Respectfully submitted: Mark Cunningham, AICP Director of Planning and Development Prepared by: Nana Appiah, AICP Senior Planner 4 EXHIBIT 1 PLANNING & DEVELOPMENT STAFF ANALYSIS CASE NO.: S09-0002 DATE TO BE CONSIDERED: August 18, 2009 LOCATION: Southwest corner of Hinkle Drive and Windsor Street APPLICANT: Wade Trim 920 S. Main, Suite 170 Grapevine, TX 76051 OWNER: The Rayzor Company 400 W. Oak Street, Suite 200 Denton, TX 76201 ZONING DISTRICT: The subject property is located in the Neighborhood Residential 3 (NR-3) zoning district. COMPREHENSIVE The subject site is located within the Existing Land Use future land PLAN DESIGNATION: use designation. SITE AND The site is currently undeveloped. SURROUNDINGS: North: Neighborhood Residential 2 (NR-2) North Lakes Park South: Neighborhood Residential 2 (NR-2) Senior Living Facility. East: Neighborhood Residential 3 (NR-3) and Neighborhood Residential Mixed Use 12 (NRMU-12) Single family developments and Senior Living facility. West: Neighborhood Residential 2 (NR-2) and Neighborhood Residential 6 (NR-6) North Lakes Park and Single family developments. BACKGROUND The existing zoning designation (NR-3) on the property allows the INFORMATION: development of single family detached units by right and single family attached units through approval of an SUP. The purpose of this request is to develop 46 single family attached and 56 single family detached units. ANALYSIS: Existing Land Use Comprehensive Plan The subject site is located in the designation Analysis: within the Denton Future Land Use Plan. Per the Denton Plan, new developments within an existing residential land use category should be developed to be compatible with patterns and designs to the standards established within the neighborhood. In addition, The Plan 5 recommends that the existing residential development within the neighborhood be vigorously protected and preserved. This development is for single family attached and detached units. The approval of this request will not alter the patterns and design standards within the established neighborhood. This area of the park is mainly used as open space for passive recreation such as walking and running. To the south is a senior living facility. To the east are single family residential developments. The proposed single family development of two housing types will not be detrimental to preserving the existing neighborhood. The development will enhance the general character of the neighborhood by providing opportunities for diverse housing types increasing the sustainability of the community. Development The property is located in the Neighborhood Residential 3 (NR-3) Code/Zoning Analysis zoning district. The NR-3 zoning district is a subcategory of the Neighborhood Residential Land Use. Per Subchapter 35.5.2.1 of the DDC, the purpose of the Neighborhood Residential Land Use is to protect existing neighborhoods and ensure that any new development is compatible with existing land uses, patterns, and designs. Approval of this development will not alter the character or design patterns of the existing residential developments. In addition, there is an overlay restriction which will further restrict the development of this property to ensure that the development is compatible with the surrounding neighborhood. Per Subchapter 35.5.2.2 of the DDC, single family attached dwellings are permitted with approval of an SUP. The criterion with which approval of an SUP is evaluated are set forth in Subchapter 35.6.4 of the DDC. An analysis of the approval criteria is presented under the Findings below. DEPARTMENT AND The Development Review Committee (DRC) has reviewed this AGENCY REVIEW: request for an SUP and provided the following relevant comments. All the DRC comments were addressed by the applicant. FINDINGS: Pursuant to subsection 35.6.4.B. a specific use permit shall be issued only if all of the following conditions have been met: 1.That the specific use will be compatible with and not injurious to the use and enjoyment of other property nor significantly diminish or impair property values within the immediate vicinity; 6 Granting the SUP would not be injurious to the use and enjoyment of other property nor significantly diminish or impair property values within the immediate vicinity. The proposed request is for a single family development which includes detached and attached units. The average lot size for the detached units is 10,000 square feet. This lot size is not out of character with the surrounding residential developments. To the west of the property is a Neighborhood Residential 6 (NR-6) developed with an average lot size of 10,200 square feet. The minimum lot size for the attached units is 4,856 square feet. This average lot size is smaller than the surrounding residential development. However, the overall development as conditioned by a previously approved Overlay District and the proposed site plan will create a diverse housing opportunity for the area and is compatible with the surrounding developments. 2.That the establishment of the specific use will not impede the normal and orderly development and improvement of surrounding vacant property; Granting the SUP would not impede the normal and orderly development of the surrounding vacant property. The proposed single family development with attached units is surrounded by a Neighborhood Residential 3 (NR -3) zoning to the east and Neighborhood Residential 2 (NR-2) to the south. A Neighborhood Residential 6 (NR-6) district is located approximately 470 feet to the west of the subject site. Both the NR-6 and NR-3 districts are already developed with single family homes. South of the property is also developed as a senior living f Lakes Park. 3.That adequate utilities, access roads, drainage and other necessary supporting facilities have been or will be provided; Adequate utilities, access roads, drainage and other necessary supporting facilities have been evaluated by the DRC and have been deemed adequate to support this use. 4.The design, location and arrangement of all driveways and parking spaces provides for the safe and convenient movement of vehicular and pedestrian traffic without adversely affecting the general public or adjacent developments; 7 The DRC has reviewed the proposed vehicular and pedestrian traffic. The proposed development will not have an adverse affect on the general public or adjacent developments. According to the Engineering Department, a traffic study may be required during platting of this property if it is determined that the daily trip generation for this development exceeds 1,000 or 100 PM Peak Hour trips. The applicant has met the required parking standards as outlined in Subchapter 35.14.4 Parking Standards. Based on the 8) and shown on the site plan, the proposed development will require 200 parking spaces. The site plan submitted shows two means of ingress and egress to the development. One access is on Windsor Street and the other on Hinkle Drive. According to the applicant, the main access to the site will be through Hinkle Drive, Windsor Street will be utilized for right-in/right-out emergency access only. 5.That adequate nuisance prevention measures have been or will be taken to prevent or control offensive odor, fumes, dust, noise and vibration; Dust, noise and vibration will occur during the construction of the proposed development. However, dust, noise and any vibration associated with the construction of the proposed development will stop once the proposed development is constructed. Section 20 of Ordinance also requires dust, noise and odor control during construction. 6.That directional lighting will be provided so as not to disturb or adversely affect neighboring properties; and All new lighting will comply with the standards and regulations under Subchapter 13 in the Denton Development Code. This requirement will be met during the platting, construction plan, and building permit approval process. 7.That there is sufficient landscaping and screening to ensure harmony and compatibility with adjacent property. The proposed development will meet all landscaping and tree preservation regulations under Subchapter 35.13.7, Tree Preservation and Landscape Requirements Standards, in the 8 Denton Development Code. In addition, the applicant proposes to provide a 50 foot landscape buffer along Windsor Street and Hinkle Drive and a 30 foot landscape buffer along the southern property boundary as shown on the site plan. 9 EXHIBIT 2 Location Map Site 10 EXHIBIT 3 Existing Zoning Map Site 11 EXHIBIT 4 Future Land Use Map Site 12 EXHIBIT 5 Notification Map íÈÛÑÔÚïÎÉÔ×ÔÚÜÉÔÎÏùÜÉØ ïÈÐÛØË EXHIBIT 6 ôÏîÍÍÎÊÔÉÔÎÏ ôÏ÷ÜÇÎË ïØÈÉËÜÑ EXHBIT 6 13 Exhibit 6 Site /Landscape plan 14 EXHIBIT 7 Site Photographs Photograph looking north from the subject property Photograph looking south from the subject property Photograph looking east from the subject property EXHIBIT 8 Letter From Applicant 16 EXHIBIT 9 Letters in Opposition 17 18 Û¨¸·¾·¬ ïð ÛÈØ×Þ×Ì ïï éÕÔÊÍÜÖØÑØ×ÉÛÑÜÏÒÔÏÉØÏÉÔÎÏÜÑÑÄ AGENDA INFORMATION SHEET AGENDA DATE: September 1, 2009 DEPARTMENT: Planning and Development ACM: Fred Greene SUBJECT S09-0006 (Rayzor Gas Wells): Consider adoption of an ordinance of the City of Denton, Texas, approving a Specific Use Permit to allow for gas well drilling and production on property located on a three (3) acre site on the west side of Bonnie Brae Street, north of Scripture Street, within the Town Center of the Rayzor Ranch Overlay District with a base zoning of Neighborhood Residential Mixed Use (NRMU); and providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date. (S09-0006) The Planning and Zoning Commission recommends approval of this request (4-0). BACKGROUND In accordance with Subsection 35.5.2.2 and 35.22.3 of the Denton Development Code (DDC), gas wells are permitted with an SUP within the NRMU zoning district. The Rayzor Ranch Town Center Overlay District, Ordinance Number 2008-284 also requires an SUP for gas well drilling and production. Per Subsection 35.6.4 of the DDC, an SUP may be granted if the proposed use conforms (or can be made to conform through the use of conditions) to the standards established in the NRMU zoning district. It has been determined that the proposed use will conform to the NRMU district subject to recommended conditions of approval and the Rayzor Ranch Town Center Overlay District restrictions. The property is currently undeveloped. The site plan submitted shows one access to the site which aligns with the future location of Panhandle Street. According to the applicant, the proposed access will be utilized temporarily until the portion of Panhandle which abuts the northern portion of the site is constructed. The Planning Department sent certified notices of the public hearing to five (5) property owners within 200 feet and twenty two (22) courtesy notices to residents within 500 feet of the subject property. As of this writing, staff received two (2) responses from property owners within 200 feet of the subject property in favor of the request. Public notification information is provided in Exhibit 5. PRIOR ACTION/REVIEW On November 4, 2008, the City Council approved an Ordinance (Ord No 2008-284) amending the development standards for the Rayzor Ranch Overlay District to allow gas well drilling and production through the approval of a Specific Use Permit. June 17, 2009 Planning and Zoning Commission Public Hearing. July 21 City Council Public Hearing This item was tabled from the August 18, 2009 City Council meeting. OPTIONS 1.Approve as submitted. 2.Approve subject to conditions. 3.Deny. 4.Postpone consideration. 5.Table item. RECOMMENDATION approval The Planning and Zoning Commission recommends of this Specific Use Permit subject to the following conditions: 1.The approval of this Specific Use Permit shall not grant any waiver to the overlay conditions approved with Ordinance No. 2008-284. 2.The applicant shall install a screening fence along the northern, southern and western boundaries of the site and buffer on the portion of the site along Bonnie Brae Road. 3., as conditioned, shall be constructed within 30 days after drilling operations are complete or planted during the first dormant season after drilling, if approved by the City Landscape Administrator. 4.If screening or landscaping is damaged or removed during fracturing or refracturing operations, the operator of the gas well shall be responsible for replacing the damaged or removed portions of the landscaping. 5.The site plan as submitted and shown in Exhibit 6 shall guide the development of gas wells on the subject site. 6.Prior to the issuance of a gas well permit and the commencement of operations, the operator shall submit a noise management plan to the Development Review Committee for review and approval, detailing how the equipment used in the drilling, completion, transportation, or production of the wells complies with the maximum permissible ambient noise levels. The maximum permissible ambient noise level shall not exceed ninety (90) decibels as measured three hundred (300) feet from the boundary of the drill site. 7.Prior to the issuance of a gas well permit, the operator shall be responsible for establishing and reporting to the City a continuous seventy-two (72) hour pre-drilling four hour reading during a Saturday or Sunday. The operator shall use the prior established ambient noise level for the installation of any new noise generation equipment unless the operator can demonstrate that the increase in the ambient noise level is not associated with drilling and production activities located either on or off-site. 8.The sound level meter used in conducting noise evaluations shall meet the American associated recording and analyzing equipment which will provide equivalent data. 9.A citation may be immediately issued for failure to comply with these conditions. However, if the operator is in compliance with the approved noise management plan, and a violation still occurs, the operator will be given twenty-four (24) hours from notice of non-compliance to correct the violation from an identified source before a citation is issued. Additional extensions of the twenty-four (24) hour period may be granted in the event that the source of the violations cannot be indentified after reasonable diligence by the operator. 10.The operator of the gas well shall instruct and ensure that employees involve in the operation of the gas wells park vehicles on-site only. approval The Development Review Committee recommends of this Specific Use Permit as conditioned. EXHIBITS 1.Staff Analysis 2.Location Map 3.Existing Zoning Map 4.Future Land Use Map 5.Notification Information 6.Proposed Site Plan 7.Rayzor Ranch Overlay District Concept Plan 8.Rayzor Ranch Overlay District Master Site Plan 9.Site Photographs 10.Letter from Applicant 11.Letters of Consent from Property Owners 12.June 17, 2009 Planning and Zoning Commission Minutes 13.Ordinance Prepared by: Nana Appiah, AICP Senior Planner Respectfully submitted: Mark Cunningham, AICP Director of Planning and Development EXHIBIT 1 PLANNING & DEVELOPMENT STAFF ANALYSIS CASE NO.: S09-0006 DATE TO BE CONSIDERED: August 18, 2009 LOCATION: West side of Bonnie Brae, north of Scripture Street. APPLICANT: Range Production Company 100 Throckmorton, Suite 1200 Forth Worth, TX 76102 OWNER: Allegiance Hillview, L.P 14881 Quorum Drive, Suite 950 Dallas, TX 75254 ZONING DISTRICT: The subject property is located within the Town Center of the Rayzor Ranch Overlay District with a base zoning of Neighborhood Residential Mixed Use (NRMU). COMPREHENSIVE The subject site is located within the Neighborhood Centersfuture PLAN DESIGNATION: land use designation. SITE AND The site is currently undeveloped. SURROUNDINGS: North: Neighborhood Residential Mixed Use (NRMU), Rayzor Ranch Overlay District Undeveloped land South: Regional Center Commercial Downtown (RCC-D), Rayzor Ranch Overlay District Undeveloped Land. East: Neighborhood Residential 3 (NR-3) City of Denton McKenna Recreation Park/Single family homes. West: Regional Center Commercial Downtown (RCC-D), Rayzor Ranch Overlay District Undeveloped Land. BACKGROUND The property is located in the NRMU District and the Town Centers INFORMATION: of the Rayzor Ranch Overlay District. As a requirement of the Overlay District, gas well drilling and production are permitted with an SUP. ANALYSIS: Comprehensive Plan The subject site is located in the Neighborhood Centers Future Land Analysis: Use designation. Per the Denton Plan, new neighborhoods may develop in traditional patterns. Mixed-use and mixed housing types will be allowed to develop in a p In addition, Mixed-uses are recommended to be oriented inwardly, focusing on the center of the neighborhood. These neighborhoods will exemplify the interrelationship between quality of development, density, services and provision for adequate facilities. The plan also recommends that areas designated as Neighborhood Centers should contain uses necessary to support the surrounding neighborhood. The uses could include service-oriented retail such as small grocery, hair salon, dry cleaner or small professional offices. Residential uses may occur at higher densities with townhomes or residential flats located above service oriented uses. This request is for gas well drilling and production on approximately three acres. According to the applicant, the site will be reduced to two acres after drilling operations are complete. The remaining one acre will be reclaimed. According to the concept plan for the Rayzor Town Center Overlay District, single family attached units are proposed to the north and offices to the west and south of the subject site. The development of the site for gas well drilling and production will not impede the general purpose of the Neighborhood Centers. Development The property is located in the Neighborhood Residential Mixed Use Code/Zoning Analysis (NRMU) zoning district. The NRMU district is a subcategory of the Neighborhood Residential Land Use. Per Subsection 35.5.2.1 of the DDC, the purpose of the Neighborhood Residential land use is to preserve and protect existing neighborhoods and to ensure that any new development is compatible with existing land uses, patterns, and design standards. The property is also located within the Town Center of the Rayzor Ranch Overlay District. Per Subsection 35.7.13.8 of Ordinance Number 2008-284 of the Rayzor Ranch Overlay District, the NRMU regulations shall guide the development of the Town Centers within the Rayzor Ranch Overlay district. The property to the north, south and west are undeveloped. Approval of this request, subject to conditions, will not be detrimental to any existing residential development to the east. Per Section 3406 of the any residential development approved after the drilling and production of gas wells on the subject site shall be required to be set back a minimum of 300 feet from the wellheads to protect the development from any adverse affects of this request. The properties located to the east of the subject site, across Bonnie Brae Street include thark and a single family home. The active recreation area of the park is located approximately four hundred and fifty (450) feet and the single family home is located approximately two hundred and eighty four (284) feet from the proposed wellheads. Per Section 35.22.3.B of the DDC, written consent is required from property owners for the location of gas wellheads within two hundred and fifty (250) feet to five hundred (500) feet of a residential structure. The applicant has provided two signed consent agreement documents from residential structure property owners within 500 feet of the proposed gas wellhead sites (See Exhibit 11). DEPARTMENT AND The DRC reviewed this request for an SUP and provided relevant AGENCY REVIEW: comments to the applicant. All the DRC comments were addressed by the applicant. FINDINGS: Pursuant to Section 35.6.4.B of the DDC, a specific use permit shall be issued only if all of the following conditions have been met: 1.That the specific use will be compatible with and not injurious to the use and enjoyment of other property nor significantly diminish or impair property values within the immediate vicinity; Granting the SUP would not be injurious to the use and enjoyment of other property nor significantly diminish or impair property values within the immediate vicinity. The proposed gas well drilling and production is part of the Rayzor Ranch Town Center Overlay district. Currently, the surrounding properties in the immediate vicinity to the north, south, and west are undeveloped. The current concept plan for the vicinity of the subject site of the Rayzor Ranch Overlay district shows proposed offices to the south and west and single family residential to the north. development shall be required to be set back a minimum of 300 feet from the gas wellheads. In addition, the current concept plan for the Rayzor Ranch Overlay designates the subject site for gas well development with an SUP. family home. According to the applicant waivers have been acquired from property owners located within 500 feet of the gas wellheads. 2.That the establishment of the specific use will not impede the normal and orderly development and improvement of surrounding vacant property; Granting the SUP would not impede the normal and orderly development of the surrounding undeveloped property. There are proposed developments in the vicinity of the subject site. These developments shall be required to be set back a minimum of 300 feet from the gas wellheads. In addition, staff is recommending a Brae. This condition will reduce any negative impact this development may have on the surrounding properties. 3.That adequate utilities, access roads, drainage and other necessary supporting facilities have been or will be provided; Adequate utilities, access roads, drainage and other necessary supporting facilities have been assessed by the DRC and have been deemed adequate to support this use. 4.The design, location and arrangement of all driveways and parking spaces provides for the safe and convenient movement of vehicular and pedestrian traffic without adversely affecting the general public or adjacent developments; The proposed gas well development will have one access onto Bonnie Brae Street. The DRC has reviewed the proposed vehicular access to the site and have determined that the proposed driveway to the site has been designed for the safe and convenient movement of vehicular traffic. 5.That adequate nuisance prevention measures have been or will be taken to prevent or control offensive odor, fumes, dust, noise and vibration; Dust, noise and vibration will occur for a short period during the construction of the driveway, drilling, and completion of the gas wells. However, dust, noise and any vibration associated with the development of the site and drilling of the wells will be limited once the proposed development is completed. In addition, inance requires dust, noise, and odor control during construction. 6.That directional lighting will be provided so as not to disturb or adversely affect neighboring properties; and All new lighting will comply with the standards and regulations of Subchapter 13 in the Denton Development Code. This requirement will be met during the gas well plat approval review process. 7.That there is sufficient landscaping and screening to ensure harmony and compatibility with adjacent property. The proposed gas well development will meet all landscaping and tree preservation regulations in Section 35.13.7 of the DDC, Tree Preservation and Landscape Requirements Standards as modified by the Overlay District. In addition, staff is recommending a type along Bonnie Brae and a fence around the entire subject site. EXHIBIT 2 Location Map Site EXHIBIT 3 Existing Zoning Map NRMU NR-3 Site RCC-D EXHIBIT 4 Future Land Use Map Site EXHIBIT 5 Notification Map íÈÛÑÔÚïÎÉÔ×ÔÚÜÉÔÎÏùÜÉØ ôÏîÍÍÎÊÔÉÔÎÏ ôÏ÷ÜÇÎË ïØÈÉËÜÑ EXHIBIT 7 Rayzor Ranch Overlay District Concept Plan EXHIBIT 8 Rayzor Ranch Overlay District Master Site Plan EXHIBIT 9 Site Photographs Looking north towards subject property Looking south towards subject property EXHIBIT 10 Letter From Applicant EXHIBIT 11 Letters of Consent from Property Owners Û¨¸·¾·¬ ïî ÛÈØ×Þ×Ì ïí AGENDA INFORMATION SHEET AGENDA DATE: September 1, 2009 DEPARTMENT: City Manager’s Office CM: George Campbell, City Manager SUBJECT Consider adoption of an ordinance authorizing a contract for election services with Denton County, Texas, performed by and through its Election Administrator to conduct a November 3, 2009 election concerning amendments to the City of Denton Charter; authorizing the expenditure of funds therefor; and providing an effective date. BACKGROUND This ordinance was tabled at the meeting of August 18, 2009 in order to have a legal review of other possible propositions to be included in a November Charter election. In order to hold a Charter election on November 3, 2009, the City must contract with Denton County to provide election services and functions to hold a joint election on that date. Sections 31.092 and 31.093 of the Texas Election Code allows for such a contract. Don Alexander, Denton County Elections Administrator, will provide coordination and supervision of the election through the City Secretary’s Office. FISCAL INFORMATION Estimated cost of the election is $15,400.20. Costs of services are prorated for ballots based on the City of Denton precincts voting. Costs of labor and election supplies are split 50/50 with Denton County or other calculated rate if additional jurisdictions participate within the City of Denton boundaries. The City pays 100% of all programming fees. Respectfully submitted: Jennifer Walters City Secretary Denton County Elections Administration November 3, 2009 Constitutional Amendment Election Early Voting Locations Dates and Times Monday - Friday October 19 – 23 8:00a – 5:00p Monday – Wednesday October 26 – 28 8:00a – 5:00p Thursday – Friday October 29 – 30 7:00a – 7:00p Steven Everett Copeland Government CenterLewisville Municipal Annex 1400 FM 424, Cross Roads 1197 W. Main Street, Lewisville Justin Municipal Building Carrollton Public Library 415 N. College, Justin 4220 N. Josey, Carrollton Joseph A. Carroll Admin. Building Frankford Town Homes 401 W. Hickory, Denton 18110 Marsh Ln., Dallas North Texas State Fair Grounds – Fair Hall Flower Mound Police and Court Building 2217 N Carroll Blvd., Denton 4150 Kirkpatrick, Flower Mound Highland Village City HallLake Dallas City Hall 1000 Highland Village Rd., Highland Village 212 Main Street, Lake Dallas Friendship Baptist Church Sanger First Baptist Church th 4396 Main, The Colony 708 S. 5 St., Sanger The following early voting sites will ONLY be open the dates and times listed: Frisco Lakes Amenities Center Monday – Wednesday October 26 – 28 8:00a – 5:00p 7277 Frisco Lakes Dr., Frisco Thursday – Friday October 29 – 30 7:00a – 7:00p Roanoke Community Center Monday – Tuesday October 19-20 1:00p – 5:00p 312 S. Walnut, Roanoke Thursday – Friday October 22-23 1:00p – 5:00p Monday – Tuesday October 26-27 1:00p – 5:00p Thursday – Friday October 29-30 1:00p – 5:00p Trophy Club MUD 100 Municipal Drive, Trophy Club Thursday – Friday October 29 – 30 7:00a – 7:00p THE STATE OF TEXAS II CONTRACT FOR COUNTY OF DENTON ELECTION SERVICES CITY OF DENTON BY THE TERMS OF THIS CONTRACT made and entered into by and between the City of Denton, as duly authorized by the City Council hereinafter referred to as the Council, serving by and through its City of Manager, as duly authorized by the Council, and Denton County, Texas acting by and through its Elections Administrator hereinafter referred to as the Contracting Officer, pursuant to the authority of Section 31.091, of the Texas Election Code, agree to the following particulars in regard to coordination, supervision and running of the City of Denton, November 3, 2009, Charter Election in Denton County. THIS AGREEMENT is entered into in consideration of the mutual covenants and promises hereinafter set out. IT IS AGREED AS FOLLOWS: I. DUTIES AND SERVICES OF CONTRACTING OFFICER. The Contracting Officer shall be responsible for performing the following duties and shall furnish the following services and equipment: A. The Contracting Officer shall arrange for appointment, notification (including writ of election), training and compensation of all presiding judges, alternate judges, the judge of the Central Counting Station if required and judge of the Early Voting Balloting Board. a. The Contracting Officer shall be responsible for notification of each Election Day and early voting presiding judge and alternate judge of his or her appointment. The presiding election judge of each polling place will use his/her discretion to determine when additional manpower is needed during peak voting hours. The Contracting Officer will determine the number of clerks to work in the Central Counting Station and the number of clerks to work on the early voting ballot board. The Contracting Officer with the approval of the Council shall utilize election judges appointed by the Denton County Commissioners Court. b. The Contracting Officer shall compensate each election judge and worker. Each judge and worker shall receive compensation per hour for services rendered based on rates set by Denton County Commissioners Court. c. Election Judges shall attend the Contracting Officer’s school of instruction (Elections Seminar) to be held October 31, 2009 in the Denton County Administration Building, 401 West Hickory, Denton 76201 or other location to be announced at 9:00 a.m. d. Election judges shall be responsible for picking up and returning election supplies. Compensation for this pickup and return will be $25.00. B. The Contracting Officer shall procure, prepare, and distribute ballots, election kits and election supplies. - 1 - a. The Contracting Officer shall secure election kits that include the legal documentation required to hold an election and all supplies including locks, pens, magic markers, etc. b. The Contracting Officer shall secure all tables, chairs, duplication ballots, and legal documentation required to run to the central counting station and/or early voting ballot board. c. The Contracting Officer shall provide all lists of registered voters required for use on Election Day and for the early voting period required by law. The Election Day list of registered voters shall be arranged in alphabetical order by polling place in lieu of alphabetic by each precinct in each polling place. The Contracting Officer may use the computer database for the list of registered voters during early voting. d. The Contracting Officer shall procure and arrange for the distribution of all election equipment and supplies required to hold an election. 1. Equipment includes the rental of voting machines, ballot boxes, transfer cases, voting signs, and directional poles and tote boxes. 2. Supplies include ballots, sample ballots, early voting mail ballots, pens, tape, markers, etc. C. The Elections Administrator of Denton County, Texas, shall be appointed the Early Voting Clerk by the City of Denton for the election in Denton County. a. The Contracting Officer shall supervise and conduct Early Voting by mail and in person and shall secure personnel to serve as Early Voting Clerks. b. Early Voting by personal appearance for the City of Denton November 3, 2009, Charter Election in Denton County shall be conducted on weekdays beginning Monday, October 19, 2009, and continuing through Friday, October 30, 2009. Times are as th follows: October 19, 2009 through October 28th, 8:00am to 5:00pm; October 29 through October 30th, 7:00am through 7:00pm. Locations and times of voting by personal appearance shall be as per Denton County Elections Memo at Annex B. c. All applications for an Early Voting mail ballot shall be received and processed by the Denton County Elections Administration Office, P.O. Box 1720, Denton, Texas 76202. 1. Applications for mail ballots erroneously mailed to the City of Denton shall immediately be faxed to the Contracting Officer for timely processing. The original application shall then be forwarded to the Contracting Officer for proper retention 2. All Federal Post Card applications (FPCA) will be sent a mail ballot. No postage is required. d. All Early Voting ballots (those cast by mail and those cast by personal appearance) shall be prepared for count by the Early Voting Ballot Board in accordance with Section 87.000 of the Texas Election Code. The presiding judge of this Board shall be ____TBA________. The Board shall meet for preparation of the early voting ballots on (as ordered by Commissioners Court.) D. The Contracting Officer shall arrange for the use of all Election Day polling places. The City of Denton shall assume the responsibility of remitting 50% of the cost of all employee - 2 - services required to provide access, provide security, or provide custodial services for the early voting and election day polling locations used that are located within the City, Denton, Denton County Texas. E. The Contracting Officer shall be responsible for tabulation of the voted ballots in accordance with Section 127.000 of the Election Code and of this agreement. Counting Station Manager shall be the Elections Administrator of Denton County, Texas. The Tabulation Supervisor and Tabulation Operator shall be provided by the Denton County Elections Administration Office and paid as a contract expense. a. The tabulation supervisor shall prepare, test and run the county’s tabulation system in accordance with statutory requirements and county policies, under the auspices of the Contracting Officer. b. The Public Logic and Accuracy Test of the electronic voting system shall be conducted at 10 am, Thursday, September 17, 2009 by the Contracting Officer. (This date is subject to change based on receipt of jurisdiction ballot information and programming. If date is changed, you will be notified at least 48 hours prior to test) c. Election night reports will be available to Council at the Elections Office on election night. d. The Contracting Officer shall prepare the unofficial canvass report after all precincts have been counted, and will provide a copy of the unofficial canvass to the Council as soon as possible after all returns have been tallied. e. The Contracting Officer shall be appointed the custodian of the voted ballots and shall retain all election material for a period of 22 months. 1. Pending no litigation and as prescribed by law, the voted and unused ballots shall be shredded or recycled 22 months after the election. 2. The Council can obtain the list of registered voters from the Elections Administration Office during this retention period. Pending no litigation and if the Council does not request the lists, the Contracting Officer shall destroy them 22 months after the election. f. The Contracting Officer shall conduct a partial manual count as prescribed by Section 127.201 of the Texas Election Code and submit a written report to the Council in a timely manner. The Secretary of State may waive this requirement. If applicable, a written report shall be submitted to the Secretary of State as required by Section 127.201(e) of the aforementioned code. II. Duties and Services of the Council . The Council shall assume the following responsibilities: A. The Council shall prepare the election orders, resolutions, notices, justice department submissions, official canvass and other pertinent documents for adoption by the appropriate office or body. a. The Contracting Officer shall publish and post the Notice of the Public Logic and Accuracy Test of the electronic voting system and one press release. The Contracting Officer shall also prepare a certification of tabulation and an unofficial canvass reports that will assist the Council with the official canvass. - 3 - b. The Council assumes the responsibility of posting all notices and likewise posting the schedules for Early Voting and Election Day. B. The Council shall provide the Contracting Officer with the ballot wording and Spanish interpretation. a. The Council shall deliver to the Contracting Officer as soon as possible, but no later than 10:00am Friday, September 4, 2009, the official wording in English and Spanish for the Council’s November 3, 2009, Charter Election. b. The Council shall approve the “blue line” ballot format prior to the final printing. C. The Council shall post the publication of election notice by the proper methods with the proper media. D. The Council shall prepare and submit to the U.S. Department of Justice under the Federal Voting Rights act of 1965, any required submissions on voting changes. E. The Council shall compensate the Contracting Officer for any additional election costs incurred in the process of running this election or for a re-count this election may require. F. The Council shall submit with this signed contract a deposit of 90% of the estimated election cost. The contract will not be accepted without this deposit. G. The Council shall pay a prorated cost of conducting the said election, plus the 10% administrative fee, pursuant to the Texas Election Code, Section 31.100, within 30 days from the date of final billing. III. Cost of Services. Costs of services will be prorated for ballots based on the City of Denton precincts voting. The City of Denton will reimburse 50% of ballot printing costs. Costs of labor and election supplies will be split 50/50 with Denton County or other calculated rate if additional jurisdictions participate in the City of Denton, City area of Denton County. The City of Denton will pay 100% of all programming fees. See Annex A attached. IV. General Provisions. A. Nothing contained in this contract shall authorize or permit a change in the officer with whom or the place at which any document or record relating to the Council’s November 3, 2009, Charter Election is to be filed or the place at which any function is to be carried out, or any nontransferable functions specified under Section 31.096 of the Texas Election Code. B. Upon request, the Contracting Officer will provide copies of all invoices and other charges received in the process of running said election for the Council. - 4 - C. If the Council cancels their election pursuant to Section 2.053 of the Texas Election Code, the Contracting Officer shall be paid a contract preparation fee of $75. An entity canceling an election will not be liable for any further costs incurred by the Contracting Officer in conducting the November 3, 2009, Charter Election. D. The Contracting Officer shall file copies of this contract with the County Judge and the County Auditor of Denton County, Texas. WITNESS BY MY HAND THIS THE __________ DAY OF ____________________, 2009. DENTON COUNTY, TEXAS By: ______________________ Don Alexander Elections Administrator Denton County, Texas WITNESS BY MY HAND THIS THE __________ DAY OF ____________________, 2009. ____________________________________ George C. Campbell Denton City Manager - 5 - AGENDA INFORMATION SHEET AGENDA DATE: September 1, 2009 DEPARTMENT: Finance ACM: Jon Fortune SUBJECT 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 Technology Services Fund of one hundred seventy five thousand dollars ($175,000) to provide for the expenditure of phone and networking equipment; declaring a municipal purpose; providing a severability clause; providing for an open meetings clause; and providing for an effective date. BACKGROUND Desktop phone service for City employees is provided by a combination of an older Nortel, Inc. phone system and a newer Cisco Systems phone system; with plans to convert all phones to the Cisco system over time. Approximately 400 phones at City Hall, City Hall East, City Hall West and the Service Center use the older Nortel system. Nortel, Inc. filed bankruptcy in January 2009 and the assets are being liquidated and the company will not emerge. If Nortel equipment breaks, the City will have to pay to completely replace the equipment. A repair will not likely be possible. In addition, 90 percent of the Cisco data network infrastructure equipment installed in City facilities is at end-of-support or end-of-life. This means that the equipment is no longer manufactured, warranty replacements are on a first-come basis while inventory remains, and software updates have ceased. If this equipment breaks the City will have to pay to completely replace the equipment. This budget amendment will allow the City additional expenditure authority in the fixed assets portion of the budget to purchase new telephone and networking equipment. The Technology Services Department has researched options for telephone support providers and is recommending using Cisco systems for this purpose. The City will enter into a lease purchase for this system. An item to authorize this purchase is also included on the September 1, 2009, City Council Agenda. Agenda Information Sheet September 1, 2009 Page 2 FISCAL INFORMATION The total cost for the system will be $2,198,202.40. Technology Services staff worked with Cisco Systems to implement the proposal with minimal impact to Technology Service operating budget. Cisco Systems proposed a purchase and finance arrangement with an initial purchase of $565,810 (File 4359) and financing $1,632,392.40 over a five-year period at zero percent interest through Key Government Finance (File 4391). The annual lease payment will be $326,478.48 for the next five years. The current recurring operating costs for the Nortel phone and network infrastructure is $327,000 per year. Therefore, the annual lease payment will be offset by the elimination of the annual Nortel and network system costs. The initial purchase of $565,810 will be funded from $100,000 in savings from the Technology Services operating budget, $291,000 in available Certificate of Obligation (CO) bond proceeds, and $175,000 in available fund balance from the Technology Services Fund. This ordinance will allow an additional $175,000 in expenditure authority for the Administration Business Unit (830001.8545) in the Technology Services Fund. The new estimated expenditures in the Technology Services Fund will be $7,664,823. Respectfully submitted: Bryan Langley Director of Finance AGENDA INFORMATION SHEET AGENDA DATE: September 1, 2009Questions concerning this acquisition may be directed DEPARTMENT: Technology Services to Kevin Gunn 349-8595 ACM: Jon Fortune SUBJECT Consider adoption of an ordinance awarding a contract to INX, Inc. for the purchase of Cisco phone and networking equipment for the City of Denton as awarded by the State of Texas General Services Commission, Department of Information Resources (DIR Contract DIR-SDD- 531); providing for the expenditure of funds therefor; and providing an effective date (File 4359- Purchase of Cisco phone and networking equipment from INX, Inc. in the amount of $565,810). FILE 4359 and FILE 4391 INFORMATION The purpose of this procurement is to replace equipment no longer supported by the manufacturers. Desktop phone service for City employees is provided by a combination of an older Nortel, Inc. phone system and a newer Cisco Systems phone system; with plans to convert all phones to the Cisco system over time. Approximately 400 phones at City Hall, City Hall East, City Hall West and the Service Center use the older Nortel system. Nortel, Inc. filed bankruptcy in January 2009, the assets are being liquidated and the company will not emerge. If Nortel equipment breaks, the City will have to pay to completely replace the equipment. A repair will not likely be possible. In addition, 90 percent of the Cisco data network infrastructure equipment installed in City facilities is at end-of-support or end-of-life. This means that the equipment is no longer manufactured, warranty replacements are on a first-come basis while inventory remains, and software updates have ceased. If this equipment breaks the City will have to pay to completely replace the equipment. Given the condition of the phone and data network infrastructure, Technology Services Staff requested Cisco Systems perform a review of the phone and network infrastructure and propose a solution that replaces the equipment within budget constraints. Cisco partnered with INX, Inc., a local business partner located in Lewisville, to perform the review. rovides the following benefits: Replaces all unsupported equipment in the phone and data infrastructure Reduces total equipment supported/ maintained by Technology Services by 40 percent Incorporates best design practices into the network infrastructure Converts entire phone system to Cisco Systems phones Agenda Information Sheet September 1, 2009 Page 2 FILE INFORMATION (CONTINUED) Locks in recurring support costs for five years at current rate Includes installation professional services 44 percent discount on equipment purchase 20 percent discount on recurring warranty Zero percent effective finance rate for City of Denton State Department of Information Resources Contract DIR-SDD-531 meets competitive bidding requirements The total cost for the system will be $2,198,202.40. Technology Services staff worked with operating budget. Cisco Systems proposed a purchase and finance arrangement with an initial purchase of $565,810 (File 4359) and financing $1,632,392.40 over a five-year period at zero percent interest through Key Government Finance (File 4391). The annual lease payment will be $326,478.48 for the next five years. The current recurring operating costs for the Nortel phone and network infrastructure is $327,000 per year. Therefore, the annual lease payment will be offset by the elimination of the annual Nortel and network system costs. The initial purchase of $565,810 will be funded from $100,000 in savings from the Technology Services operating budget, $291,000 in available Certificate of Obligation (CO) bond proceeds, and $175,000 in available fund balance from the Technology Services Fund. It is important to note that the Nortel, Inc. phone system was purchased with bond funds in 1999. The bonds were refunded in 2009 and the debt will be retired in 2012. Annual debt service is $35,302. However, due to the uncertainty of continued support for Nortel equipment, the forty percent discount offered by Cisco Systems, and the zero percent financing, Technology Services recommends replacing the equipment before the debt is retired. RECOMMENDATION Award contract to INX, Inc. for the purchase of Cisco Systems equipment in the amount of $565,810. PRINCIPAL PLACE OF BUSINESS INX, Inc. Lewisville, Texas ESTIMATED SCHEDULE OF PROJECT Delivery of the equipment is estimated to be 45 days from receipt of order, which will be approximately September 2009. Agenda Information Sheet September 1, 2009 Page 3 FISCAL INFORMATION Funding has been budgeted in Technology Services account numbers 840022746, 840022744 and 840022441. Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent Exhibit 1: Quote from INX, Inc. Exhibit 2: Council Power Point Presentation ORDINANCE NO. _______ AN ORDINANCE AWARDING A CONTRACT TO INX, INC. FOR THE PURCHASE OF CISCO PHONE NETWORKING EQUIPMENT FOR THE CITY OF DENTON AS AWARDED BY THE STATE OF TEXAS GENERAL SERVICES COMMISSION, DEPARTMENT OF INFORMATION RESOURCES (DIR CONTRACT DIR-SDD-531); PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 4359-PURCHASE OF CISCO PHONE NETWORKING EQUIPMENT FROM INX, INC. IN THE AMOUNT OF $565,810). 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 Commission 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 "Purchase Orders" listed hereon, and on file in the office of the Purchasing Agent, are hereby approved: FILE NUMER VENDOR AMOUNT 4359 INX, Inc. $565,810 SECTION 2. By the acceptance and approval of the above numbered items set forth in the attached purchase orders, the City accepts the offer of the persons submitting the bids to the Building and Procurement Commission for such items and agrees to purchase the materials, equipment, supplies or services in accordance with the terms, conditions, specifications, standards, quantities and for the specified sums contained in the bid documents and related documents filed with the Building and Procurement Commission, and the purchase orders issued by the City. SECTION 3. Should the City and persons submitting approved and accepted items set forth in the attached purchase orders wish to enter into a formal written agreement as a result of the City's ratification of bids awarded by the Building and Procurement Commission, the City Manager or his designated representative is hereby authorized to execute the written contract which shall be attached hereto; provided that the written contract is in accordance with the terms, conditions, specifications and standards contained in the Proposal submitted to the 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 the _______ 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-File 4359 AGENDA INFORMATION SHEET AGENDA DATE: September 1, 2009Questions concerning this acquisition may be directed DEPARTMENT: Technology Services to Kevin Gunn 349-8595 ACM: Jon Fortune SUBJECT Consider adoption of an Ordinance authorizing the financing of phone equipment, recurring maintenance support and installation services for the City of Denton through a lease purchase financing agreement; providing for the expenditure of funds therefor; and providing an effective date (File 4391Third Party Lease Purchase of Phone and Networking Equipment through Key Government Finance in the amount of $1,632,392.40 with five annual payments of $326,478.48 each. FILE 4359 and FILE 4391 INFORMATION The purpose of this procurement is to replace equipment no longer supported by the manufacturers. Desktop phone service for city employees is provided by a combination of an older Nortel, Inc. phone system and a newer Cisco Systems phone system; with plans to convert all phones to the Cisco system over time. Approximately 400 phones at City Hall, City Hall East, City Hall West and the Service Center use the older Nortel system. Nortel, Inc. filed bankruptcy in January 2009 and the assets are being liquidated and the company will not emerge. If Nortel equipment breaks, the City will have pay to completely replace the equipment. A repair will not likely be possible. In addition, 90 percent of the Cisco data network infrastructure equipment installed in city facilities is at end-of-support or end-of-life. This means that the equipment is no longer manufactured, warranty replacements are on a first-come basis while inventory remains, and software updates have ceased. If this equipment breaks the City will have to pay to completely replace the equipment. Given the condition of the phone and data network infrastructure, Technology Services Staff requested Cisco Systems perform a review of the phone and network infrastructure and propose a solution that replaces the equipment within budget constraints. Cisco partnered with INX, Inc., a local business partner located in Lewisville, to perform the review. ements and provides the following benefits: Replaces all unsupported equipment in the phone and data infrastructure Reduces total equipment supported/ maintained by Technology Services by 40 percent Incorporates best design practices into the network infrastructure Converts entire phone system to Cisco Systems phones Agenda Information Sheet September 1, 2009 Page 2 FILE INFORMATION (CONTINUED) Locks in recurring support costs for five years at current rate Includes installation professional services 44 percent discount on equipment purchase 20 percent discount on recurring warranty Zero percent effective finance rate for City of Denton State Department of Information Resources Contract DIR-SDD-531 meets competitive bidding requirements The total cost for the system will be $2,198,202.40. Technology Services staff worked with operating budget. Cisco Systems proposed a purchase and finance arrangement with an initial purchase of $565,810 (File 4359) and financing $1,632,392.40 over a five-year period at zero percent interest through Key Government Finance (File 4391). The annual lease payment will be $326,478.48 for the next five years. The current recurring operating costs for the Nortel phone and network infrastructure is $327,000 per year. Therefore, the annual lease payment will be offset by the elimination of the annual Nortel and network system costs. The initial purchase of $565,810 will be funded from $100,000 in savings from the Technology Services operating budget, $291,000 in available Certificate of Obligation (CO) bond proceeds, and $175,000 in available fund balance from the Technology Services Fund. It is important to note that the Nortel, Inc. phone system was purchased with bond funds in 1999. The bonds were refunded in 2009 and the debt will be retired in 2012. Annual debt service is $35,302. However, due to the uncertainty of continued support for Nortel equipment, the forty four percent discount offered by Cisco Systems, and the zero percent financing, Technology Services recommends replacing the equipment before the debt is retired. RECOMMENDATION Award contract for the lease/purchase of Cisco Systems equipment, recurring maintenance support, and installation services to Key Government Finance in the amount of $1,632,392.40 with five annual payments of $326,478.48 each with interest charges to be assumed by Cisco Systems. PRINCIPAL PLACE OF BUSINESS Key Government Finance Superior, Colorado Agenda Information Sheet September 1, 2009 Page 3 ESTIMATED SCHEDULE OF PROJECT Funds will be available upon Council approval and will be dispersed as equipment is received. The first payment is due one year from funding and every twelve months thereafter throughout the five year agreement period. FISCAL INFORMATION The total amount of the lease is $1,632,392.40 and will be paid from budgeted Technology Services equipment accounts over a five year period. Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent Exhibit 1: Lease Purchase Agreement Exhibit 1 Key Government Finance, Inc. 1000 South McCaslin Boulevard Superior, CO 80027-9456 August 17, 2009 City of Denton Kevin Gunn 215 E. McKinney Denton, TX 76201 Dear Mr. Gunn: Enclosed, please find two (2) sets of financing documents for your review and execution. (If these documents were The emailed to you, please print out two (2) sets.) Execute both sets and return all of the originals to my attention. original sets of the executed documents are required prior to funding your transaction. To expedite the return of these documents, please overnight them to me using Key Government Finance’s FedEx account #308222926, and send to: KEY GOVERNMENT FINANCE, INC. ATTN: SUZANNE WAGNER 1000 S. MCCASLIN BLVD, SUPERIOR, CO 80027. All fully executed documents must be returned no later than September 4, 2009; otherwise, the transaction may be subject to re-pricing. Only the person with Signing Authority should execute the documents. For verification of original documents, please execute in blue ink. Upon closing, Key Government Finance will return a fully executed original set for your files. Please refer to the enclosed Document Checklist when preparing the documents. Executed documents required for funding are: 1. Tax-Exempt Lease/Purchase Agreement 2. Addendum to Tax-Exempt Lease/Purchase Agreement 3. Property Schedule 4. Property Description and Payment Schedule (Exhibit 1) Lessee’s Certificate (Exhibit 2) and a copy of the Board minutes or resolutions from the 9/1/2009 5. Board meeting 6. Payment of Proceeds Instructions (Exhibit 3) 7. Acceptance Certificate (Exhibit 4) 8. Bank Qualification and Arbitrage Rebate (Exhibit 5) 9. Certificate of Insurance – Required prior to funding. 10. Notification of Tax Treatment with Tax Exemption Certificate or Letter – Required for annual state tax audits. 11. 8038-G IRS form with Report Number filled in – Original required to be submitted to the IRS at funding, which we will submit on your behalf. 12. Invoicing Instructions – Required in order to ensure that invoices are directed to the proper area in your organization. 13. Escrow Agreement Please contact me at 720-304-1419 with any questions or concerns you may have. Sincerely, Suzanne Wagner, Account Manager KEYCORP CONFIDENTIAL - This is counterpart # _____ of _____ manually executed counterparts. Only counterpart # 1 constitutes chattel paper DOCUMENTATION CHECKLIST Tax-Exempt Lease/Purchase Agreement – Schedule 1* Addendum to Tax-Exempt Lease/Purchase Agreement * Property Schedule 1 * Property Description and Payment Schedule -Exhibit 1 Lessee’s Certificate - Exhibit 2. Please fill in the date of the meeting of the governing body, referenced in section 1. We require a copy of those minutes or board resolutions for our files. Payment of Proceeds Instructions - Exhibit 3. This is the Vendor payment information. Acceptance Certificate - Exhibit 4. The date of Acceptance will need to be filled in with the date the equipment is installed and accepted. Bank Qualification and Arbitrage Rebate -Exhibit 5 Request for Certificate of Insurance – Please fill out the form and fax it to your insurance company. The Insurance Certificate is required prior to funding. Notification of Tax Treatment - Please provide your State of Sales/Use Tax Exemption Certificate 8038-G - The purpose of this form is to report to the IRS that we have completed a tax-exempt financing. Per the Internal Revenue Service, you are required to fill in the Report Number information for Line 4 (the form included in your package is an 8038-G). **We must have this information in order to complete your financing.** 8038-G Line 4. 3 After the preprinted , enter two self-designated numbers. Number reports consecutively during any calendar year (e.g., 334, 335, etc.). Invoicing Instructions – The information you provide enables us to invoice you correctly. Escrow Agreement Please keep copies of Exhibit A (Form of Requisition of Costs of Property) and Schedule 1 (Disbursement Schedule). When you are ready to disburse funds from Escrow, you will need to sign and fill in both Exhibit A and Schedule 1. Along with those 2 forms, we will need copies of invoices. Exhibit 5 (Acceptance Certificate) will need to be filled out when the project is complete and it is your final payment request. *The items above marked with an asterisk require a signature in the presence of a witness/attestor. The attesting of the signature does not require a notary, but the signature of a person present at the time the document is signed. KEYCORP CONFIDENTIAL - This is counterpart # _____ of _____ manually executed counterparts. Only counterpart # 1 constitutes chattel paper Tax-Exempt Lease/Purchase Agreement BETWEEN:Key Government Finance, Inc. (the “Lessor”) 1000 South McCaslin Blvd. Superior, CO 80027 AND:City of Denton (the "Lessee") 215 E. McKinney Denton, TX 76201 Attention: Kevin Gunn Telephone: 940-349-8595 DATED:9/3/2009 ARTICLE I 1.01Definitions. The following terms will have the meanings indicated below unless the context clearly requires otherwise: "Agent" means any agent for the Registered Owners, if any, to which all or a portion of Lessor's right, title and interest in, to and under the Property Schedule and the Property under the Property Schedule may be assigned for the benefit of the Registered Owners of Lease Participation Certificates in the Property Schedule. "Agreement" means this Tax-Exempt Lease/Purchase Agreement, including all exhibits and schedules attached hereto. "Commencement Date" is the date when the term of the Property Schedule and Lessee's obligation to pay rent thereunder commences, which date shall be set forth in the Property Schedule. "Event of Nonappropriation" is defined in Section 6.06. "Event of Default" is defined in Section 13.01. "Lease Participation Certificates" means certificates evidencing a right to receive a share of Rental Payments payable under the Property Schedule and Purchase Price Payments payable under the Property Schedule and any other rights set forth herein with respect to the Property under said Property Schedule. "Lease Term" means, with respect to the Property Schedule, the Original Term and all Renewal Terms. The Lease Term for the Property Schedule executed hereunder shall be set forth in the Property Schedule, as provided in Section 4.02. "Lessee" means the entity identified as such in the first paragraph hereof, and its permitted successors and assigns. "Lessor" means the entity identified as such in the first paragraph hereof, and its successors and assigns. "Original Term" means, with respect to the Property Schedule, the period from the Commencement Date until the end of the budget year of Lessee in effect at the Commencement Date. "Property" means, collectively, the property leased/purchased pursuant to this Agreement and Property Schedule and all replacements, repairs, restorations, modifications and improvements thereof or thereto made pursuant to Section 8.01 or Article IX. "Property Schedule" means the Property Schedule in the form attached hereto for Property Schedule 1. "Purchase Price" means the amount that Lessee may, in its discretion, pay to Lessor to purchase the Property under the Property Schedule, as provided in Section 11.01 and as set forth in the Property Schedule. "Registered Owners" means the registered owners of Lease Participation Certificates in the Property Schedule as shown on the registration books maintained by the Agent. "Renewal Terms" means the renewal terms of the Property Schedule, each having a duration of one year and a term coextensive with Lessee's budget year. "Rental Payments" means the rental payments payable by Lessee under Article VI of this Agreement and the Property Schedule, as set forth in the Property Schedule. "Rental Payments Dates" means the rental payments dates for the Rental Payments as set forth in the Property Schedule. "State" means the state in which Lessee is situated. "Vendor" means the manufacturer or contractor of the Property as well as the agents or dealers of the manufacturer or contractor from whom Lessor or Lessee purchased or is purchasing all or any portion of the Property. ARTICLE II 2.01Property Schedule. Upon the occurrence of an Event of Default or an Event of Nonappropriation with respect to the Property Schedule, Lessor shall have the rights and remedies specified herein with respect to the Property financed and the Rental Payments payable under the Property Schedule. ARTICLE III 3.01Covenants of Lessee. As of the Commencement Date for the Property Schedule executed and delivered hereunder, Lessee shall be deemed to represent, covenant and warrant for the benefit of Lessor, any Agent, and any Registered Owners, as follows: KEYCORP CONFIDENTIAL - This is counterpart # _____ of _____ manually executed counterparts. Only counterpart # 1 constitutes chattel paper (a) Lessee is a public body corporate and politic duly organized and existing under the constitution and laws of the State with full power and authority to enter into this Agreement and the Property Schedule and the transactions contemplated thereby and to perform all of its obligations thereunder. (b) Lessee will do or cause to be done all things necessary to preserve and keep in full force and effect its existence as a body corporate and politic. To the extent Lessee should merge with another entity under the laws of the State, Lessee agrees that as a condition to such merger it will require that the remaining or resulting entity shall be assigned Lessee's rights and shall assume Lessee's obligations hereunder. (c) Lessee has been duly authorized to execute and deliver this Agreement and the Property Schedule by proper action by its governing body, or by other appropriate official approval, and all requirements have been met and procedures have occurred in order to ensure the validity and enforceability of this Agreement and the Property Schedule, and Lessee has complied with such public bidding requirements as may be applicable to this Agreement and the Property Schedule and the acquisition by Lessee of the Property thereunder. (d) During the Lease Term for the Property Schedule, the Property thereunder will perform and will be used by Lessee only for the purpose of performing essential governmental uses and public functions within the permissible scope of Lessee's authority. (e) Lessee will provide Lessor with current financial statements, budgets and proof of appropriation for the ensuing budget year and other financial information relating to the ability of Lessee to continue this Agreement and the Property Schedule in such form and containing such information as may be requested by Lessor. (f) Lessee will comply with all applicable provisions of the Internal Revenue Code of 1986, as amended (the "Code"), including Sections 103 and 148 thereof, and the regulations of the Treasury Department thereunder, from time to time proposed or in effect, in order to maintain the excludability from gross income for federal income tax purposes of the interest component of Rental Payments under the Property Schedule and will not use or permit the use of the Property in such a manner as to cause the Property Schedule to be a "private activity bond" under Section 141(a) of the Code. Lessee covenants and agrees that it will use the proceeds of the Property Schedule as soon as practicable and with all reasonable dispatch for the purpose for which the Property Schedule has been entered into, and that no part of the proceeds of the Property Schedule shall be invested in any securities, obligations or other investments except for the temporary period pending such use nor used, at any time, directly or indirectly, in a manner which, if such use had been reasonably anticipated on the date of issuance of the Agreement, would have caused any portion of the Property Schedule to be or become "arbitrage bonds" within the meaning of Section 103(b)(2) or Section 148 of the Code and the regulations of the Treasury Department thereunder proposed or in effect at the time of such use and applicable to obligations issued on the date of issuance of the Property Schedule. (g) The execution, delivery and performance of this Agreement and the Property Schedule and compliance with the provisions hereof and thereof by Lessee does not conflict with or result in a violation or breach or constitute a default under, any resolution, bond, agreement, indenture, mortgage, note, lease or other instrument to which Lessee is a party or by which it is bound by any law or any rule, regulation, order or decree of any court, governmental agency or body having jurisdiction over Lessee or any of its activities or properties resulting in the creation or imposition of any lien, charge or other security interest or encumbrance of any nature whatsoever upon any property or assets of Lessee or to which it is subject. (h) Lessee's exact legal name is as set forth on the first page of this Agreement. Lessee will not change its legal name in any respect without giving thirty (30) days prior notice to Lessor. ARTICLE IV 4.01Lease of Property . On the Commencement Date of the Property Schedule executed hereunder, Lessor will be deemed to demise, lease and let to Lessee, and Lessee will be deemed to rent, lease and hire from Lessor, the Property described in the Property Schedule, in accordance with this Agreement and the Property Schedule, for the Lease Term set forth in the Property Schedule. 4.02Lease Term. The term of the Property Schedule shall commence on the Commencement Date set forth therein and shall terminate upon payment of the final Rental Payment set forth in the Property Schedule and the exercise of the Purchase Option described in Section 11.01, unless terminated sooner pursuant to this Agreement or the Property Schedule. 4.03Delivery, Installation and Acceptance of Property. Lessee shall order the Property, shall cause the Property to be delivered and installed at the locations specified in the Property Schedule and shall pay all taxes, delivery costs and installation costs, if any, in connection therewith. To the extent funds are deposited under the escrow agreement or trust agreement for the acquisition of the Property, such funds shall be disbursed as provided therein. When the Property described in the Property Schedule is delivered, installed and accepted as to Lessee's specifications, Lessee shall immediately accept the Property and evidence said acceptance by executing and delivering to Lessor the Acceptance Certificate substantially in the form attached to the Property Schedule. ARTICLE V 5.01Enjoyment of Property. Lessee shall during the Lease Term peaceably and quietly have, hold and enjoy the Property, without suit, trouble or hindrance from Lessor, except as expressly set forth in this Agreement. No Registered Owner shall interfere with such quiet use and enjoyment during the Lease Term so long as Lessee is not in default under the Property Schedule. 5.02Location; Inspection. The Property will be initially located or based at the location specified in the Property Schedule. Lessor shall have the right at all reasonable times during business hours to enter into and upon the property of Lessee for the purpose of inspecting the Property. ARTICLE VI 6.01Rental Payments to Constitute a Current Expense of Lessee. Lessor and Lessee understand and intend that the obligation of Lessee to pay Rental Payments hereunder shall constitute a current expense of Lessee and shall not in any way be construed to be a debt of Lessee in contravention of any applicable constitutional, statutory or charter limitation or requirement concerning the creation of indebtedness by Lessee, nor shall anything contained herein constitute a pledge of the faith and credit or taxing power of Lessee. Upon the appropriation of Rental Payments for a fiscal year, the Rental Payments for said fiscal year, and only the Rental Payments for said current fiscal year, shall be a binding obligation of Lessee; provided that such obligation shall not include a pledge of the taxing power of Lessee. 6.02Payment of Rental Payments. Lessee shall promptly pay Rental Payments under the Property Schedule, exclusively from legally available funds, in lawful money of the United States of America, to Lessor in such amounts and on such dates as described in the Property Schedule, at Lessor's address set forth on the first page of this Agreement, unless Lessor instructs Lessee otherwise. Lessee shall pay Lessor a charge on any delinquent Rental Payments under the Property Schedule in an amount sufficient to cover all additional costs and expenses incurred by Lessor and Agent from such delinquent Rental Payment. In addition, Lessee shall pay a late charge of five cents per dollar or the highest amount permitted by applicable law, whichever is lower, on all delinquent Rental Payments. 6.03Interest Component. A portion of each Rental Payment due under the Property Schedule is paid as, and represents payment of, interest, and the Property Schedule hereunder shall set forth the interest component (or method of computation thereof) of the Rental Payment thereunder during the Lease Term. KEYCORP CONFIDENTIAL - This is counterpart # _____ of _____ manually executed counterparts. Only counterpart # 1 constitutes chattel paper 6.04Rental Payments to be Unconditional. SUBJECT TO SECTION 6.06, THE OBLIGATIONS OF LESSEE TO PAY THE RENTAL PAYMENTS DUE UNDER THE PROPERTY SCHEDULE AND TO PERFORM AND OBSERVE THE OTHER COVENANTS AND AGREEMENTS CONTAINED HEREIN SHALL BE ABSOLUTE AND UNCONDITIONAL IN ALL EVENTS WITHOUT ABATEMENT, DIMINUTION, DEDUCTION, SET-OFF OR DEFENSE, FOR ANY REASON, INCLUDING WITHOUT LIMITATION, ANY DEFECTS, MALFUNCTIONS, BREAKDOWNS OR INFIRMITIES IN THE PROPERTY OR ANY ACCIDENT, CONDEMNATION OR UNFORESEEN CIRCUMSTANCES. THIS PROVISION SHALL NOT LIMIT LESSEE'S RIGHTS OR ACTIONS AGAINST ANY VENDOR AS PROVIDED IN SECTION 10.02. 6.05Continuation of Lease by Lessee. Lessee intends to continue the Property Schedule entered into pursuant to this Agreement and to pay the Rental Payments thereunder. Lessee reasonably believes that legally available funds in an amount sufficient to make all Rental Payments during the term of the Property Schedule can be obtained. Lessee agrees that its staff will provide, during the budgeting process for each budget year to the governing body of Lessee, notification of any Rental Payments due under the Property Schedule during the following budget year. Notwithstanding this covenant, if Lessee fails to appropriate the Rental Payments for the Property Schedule pursuant to Section 6.06, the Property Schedule shall terminate. Although Lessee has made this covenant, in the event that it fails to provide such notice, no remedy is provided and Lessee shall not be liable for any damages for its failure to so comply. 6.06Non-Appropriation. If sufficient funds are not appropriated to make Rental Payments required under the Property Schedule, the Property Schedule shall terminate and Lessee shall not be obligated to make Rental Payments under the Property Schedule beyond the then current fiscal year for which funds have been appropriated. Upon the occurrence of such nonappropriation (an "Event of Nonappropriation") Lessee shall, no later than the end of the fiscal year for which Rental Payments have been appropriated, deliver possession of the Property under the Property Schedule to Lessor. If Lessee fails to deliver possession of the Property to Lessor upon termination of the Property Schedule by reason of an Event of Nonappropriation, the termination shall nevertheless be effective but Lessee shall be responsible for the payment of damages in an amount equal to the portion of Rental Payments thereafter coming due that is attributable to the number of days after the termination during which the Lessee fails to deliver possession and for any other loss suffered by Lessor as a result of Lessee's failure to deliver possession as required. In addition, Lessor may, by written instructions to the Agent or to any other escrow agent who is holding proceeds of the Property Schedule, instruct the Agent or such escrow agent to release all such proceeds and any earnings thereon to Lessor, such sums to be credited to Lessee's obligations under the Property Schedule and this Agreement. Lessee shall notify Lessor in writing within seven (7) days after the failure of the Lessee to appropriate funds sufficient for the payment of the Rental Payments, but failure to provide such notice shall not operate to extend the Lease Term or result in any liability to Lessee. Non-appropriation shall not constitute a beach of the Agreement. 6.07Defeasance of Rental Payments. Lessee may at any time irrevocably deposit in escrow with a defeasance escrow agent for the purpose of paying all of the principal component and interest component accruing under the Property Schedule, a sum of cash and non-callable securities consisting of direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America or any agency or instrumentality thereof, in such aggregate amount, bearing interest at such rates and maturing on such dates as shall be required to provide funds sufficient for this purpose. Upon such defeasance, all right, title and interest of Lessor in the Property under the Property Schedule shall terminate. Lessee shall cause such investment to comply with the requirements of federal tax law so that the exclusion from gross income of the interest component of Rental Payments on the Property Schedule is not adversely affected. ARTICLE VII 7.01Title to the Property. Upon acceptance of the Property by Lessee and unless otherwise required by the laws of the State, title to the Property shall vest in Lessee, subject to Lessor's interests under the Property Schedule and this Agreement. 7.02Personal Property. The Property is and will remain personal property and will not be deemed to be affixed to or a part of the real estate on which it may be situated, notwithstanding that the Property or any part thereof may be or hereafter become in any manner physically affixed or attached to real estate or any building thereon. If requested by Lessor, Lessee will, at Lessee's expense, furnish a waiver of any interest in the Property from any party having an interest in any such real estate or building. 7.03Security Interest. To secure the performance of all of Lessee's obligations under this Agreement, including without limitation the Property Schedule now existing, Lessee grants to Lessor, for the benefit of Lessor and its successors and assigns, a security interest constituting a first lien on Lessee's interest in all of the Property, whether now owned or hereafter acquired, all additions, attachments, alterations and accessions to the Property, all substitutions and replacements for the Property, and on any proceeds of any of the foregoing, including insurance proceeds. Lessee shall execute any additional documents, including financing statements, affidavits, notices and similar instruments, in form and substance satisfactory to Lessor, which Lessor deems necessary or appropriate to establish, maintain and perfect a security interest in the Property in favor of Lessor and its successors and assigns. Lessee hereby authorizes Lessor to file all financing statements which Lessor deems necessary or appropriate to establish, maintain and perfect such security interest. 7.04Substitution. Lessee may substitute for all or any portion of the Property under the Property Schedule personal property of approximately equal or greater market value and with an equal or greater useful life. In the event of any such substitution, Lessee shall deliver to Lessor a certification that the personal property proposed to be substituted has approximately equal or greater market value and an equal or greater useful life as the portion of the Property being substituted for. Lessee shall be responsible for all costs and expenses for any such substitution. Lessee shall cause all financing statements, fixture filings, certificates of title, affidavits, notices and similar instruments, to be made or filed in a timely manner to secure and perfect the security interest of Lessor in the substituted property. ARTICLE VIII 8.01Maintenance of Property by Lessee. Lessee shall keep and maintain the Property in good condition and working order and in compliance with the manufacturer's specifications, shall use, operate and maintain the Property in conformity with all laws and regulations concerning the Property's ownership, possession, use and maintenance, and shall keep the Property free and clear of all liens and claims, other than those created by this Agreement. Lessee shall have sole responsibility to maintain and repair the Property. 8.02Liens, Taxes, Other Governmental Charges and Utility Charges. Lessee shall keep the Property free of all levies, liens and encumbrances, except for the interest of Lessor under this Agreement. The parties to this Agreement contemplate that the Property will be used for a governmental or proprietary purpose of Lessee and, therefore, that the Property will be exempt from all property taxes. The Rental Payments payable by Lessee under this Agreement and the Property Schedule hereunder have been established to reflect the savings resulting from this exemption from taxation. Lessee will take such actions necessary under applicable law to obtain said exemption. Nevertheless, if the use, possession or acquisition of the Property is determined to be subject to taxation or later becomes subject to such taxes, Lessee shall pay when due all taxes and governmental charges lawfully assessed or levied against or with respect to the Property. Lessee shall pay all gas, water, steam, electricity, heat, power, telephone, utility and other charges incurred in the operation, maintenance, use, occupancy and upkeep of the Property. Lessee shall pay such taxes or charges as the same may become due; provided that, with respect to any such taxes or charges that may lawfully be paid in installments over a period of years, Lessee shall be obligated to pay only such installments as accrue during the then current fiscal year of the Lease Term for such Property. 8.03Insurance. At its own expense, Lessee shall maintain (a) casualty insurance insuring the Property against loss or damage by fire and all other risks covered by the standard extended coverage endorsement then in use in the State and any other risks reasonably required by Lessor in an amount equal to at least the outstanding principal component of Rental Payments, and (b) liability insurance that protects Lessor from liability in all events in an amount reasonably acceptable to Lessor, and (c) worker's compensation insurance covering all employees working on, in, near or about the Property; provided that Lessee may self-insure against all such risks. All insurance proceeds from casualty losses shall be payable as hereinafter provided in this Agreement. All such insurance shall KEYCORP CONFIDENTIAL - This is counterpart # _____ of _____ manually executed counterparts. Only counterpart # 1 constitutes chattel paper be with insurers that are authorized to issue such insurance in the State. All such liability insurance shall name Lessor as an additional insured. All such casualty insurance shall contain a provision making any losses payable to Lessor and Lessee as their respective interests may appear. All such insurance shall contain a provision to the effect that such insurance shall not be canceled or modified without first giving written notice thereof to Lessor and Lessee at least thirty (30) days in advance of such cancellation or modification. Lessee shall furnish to Lessor, on or before the Commencement Date for the Property Schedule, and thereafter at Lessor's request, certificates evidencing such coverage, or, if Lessee self-insures, a written description of its self-insurance program together with a certification from Lessee's risk manager or insurance agent or consultant to the effect that Lessee's self-insurance program provides adequate coverage against the risks listed above. 8.04Advances. In the event Lessee shall fail to either maintain the insurance required by this Agreement or keep the Property in good repair and working order, Lessor may, but shall be under no obligation to, purchase the required insurance and pay the cost of the premiums thereof or maintain and repair the Property and pay the cost thereof. All amounts so advanced by Lessor shall constitute additional rent for the Lease Term for the Property Schedule for which the Property is under and shall be due and payable on the next Rental Payment Date and Lessee covenants and agrees to pay such amounts so advanced by Lessor with interest thereon from the date such amounts are advanced until paid at the rate of 12% per annum or the maximum amount permitted by law, whichever is less. ARTICLE IX 9.01Damage or Destruction. If (a) the Property under the Property Schedule or any portion thereof is destroyed, in whole or in part, or is damaged by fire or other casualty, or (b) title to, or the temporary use of, the Property under the Property Schedule or any part thereof shall be taken under the exercise or threat of the power of eminent domain by any governmental body or by any person, firm or corporation acting pursuant to governmental authority, Lessor and Lessee will cause the Net Proceeds (as hereinafter defined) of any insurance claim, condemnation award or sale under threat of condemnation to be applied to the prompt replacement, repair, restoration, modification or improvement of the Property, unless Lessee shall have exercised its right to defease the Property Schedule as provided herein, or unless Lessee shall have exercised its option to purchase Lessor's interest in the Property if the Property Schedule so provides. Any balance of the Net Proceeds remaining after such work has been completed shall be paid to Lessee. For purposes of Section 14.02(b) and this Article IX, the term "Net Proceeds" shall mean the amount remaining from the gross proceeds of any insurance claim, condemnation award or sale under threat of condemnation after deducting all expenses, including attorneys' fees, incurred in the collection thereof. 9.02Insufficiency of Net Proceeds. If the Net Proceeds are insufficient to pay in full the cost of any repair, restoration, modification or improvement referred to in Section 9.01, Lessee shall (a) complete such replacement, repair, restoration, modification or improvement and pay any costs thereof in excess of the amount of the Net Proceeds and, if Lessee shall make any payments pursuant to this Section, Lessee shall not be entitled to any reimbursement therefor from Lessor nor shall Lessee be entitled to any diminution of the amounts payable under Section 6.02, or (b) defease the Property Schedule pursuant to Section 6.07, or (c) exercise its option to purchase Lessor's interest in the Property pursuant to the optional purchase provisions of the Property Schedule, if any. The amount of the Net Proceeds, if any, remaining after completing such repair, restoration, modification or improvement or after such defeasance or purchase may be retained by Lessee. ARTICLE X 10.01Disclaimer of Warranties. LESSOR MAKES NO (AND SHALL NOT BE DEEMED TO HAVE MADE ANY) WARRANTIES, EXPRESS OR IMPLIED, AS TO ANY MATTER WHATSOEVER, INCLUDING, WITHOUT LIMITATION, THE DESIGN, OPERATION OR CONDITION OF, OR THE QUALITY OF THE MATERIAL, EQUIPMENT OR WORKMANSHIP IN, THE PROPERTY, ITS MERCHANTABILITY OR ITS FITNESS FOR ANY PARTICULAR PURPOSE, THE STATE OF TITLE THERETO OR ANY COMPONENT THEREOF, THE ABSENCE OF LATENT OR OTHER DEFECTS (WHETHER OR NOT DISCOVERABLE), AND LESSOR HEREBY DISCLAIMS THE SAME; IT BEING UNDERSTOOD THAT THE PROPERTY IS LEASED TO LESSEE "AS IS" ON THE DATE OF THIS AGREEMENT OR THE DATE OF DELIVERY, WHICHEVER IS LATER, AND ALL SUCH RISKS, IF ANY, ARE TO BE BORNE BY LESSEE. Lessee acknowledges that it has made (or will make) the selection of the Property from the Vendor based on its own judgment and expressly disclaims any reliance upon any statements or representations made by Lessor. Lessee understands and agrees that (a) neither the Vendor nor any sales representative or other agent of Vendor, is (i) an agent of Lessor, or (ii) authorized to make or alter any term or condition of this Agreement, and (b) no such waiver or alteration shall vary the terms of this Agreement unless expressly set forth herein. In no event shall Lessor be liable for any incidental, indirect, special or consequential damage in connection with or arising out of this Agreement, the Property Schedule, or the existence, furnishing, functioning or use of any item, product or service provided for in this Agreement or the Property Schedule. 10.02Vendor's Warranties. Lessor hereby irrevocably assigns to Lessee all rights that Lessor may have to assert from time to time whatever claims and rights (including without limitation warranties) related to the Property against the Vendor. Lessee's sole remedy for the breach of such warranty, indemnification or representation shall be against the Vendor of the Property, and not against Lessor, nor shall such matter have any effect whatsoever on the rights and obligations of Lessor with respect to this Agreement, including the right to receive full and timely payments hereunder. Lessee expressly acknowledges that Lessor makes, and has made, no representations or warranties whatsoever as to the existence or the availability of such warranties of the Vendor of the Property. 10.03Use of the Property. Lessee will not install, use, operate or maintain the Property improperly, carelessly, in violation of any applicable law or in a manner contrary to that contemplated by this Agreement and the Property Schedule. Lessee shall provide all permits and licenses, if any, necessary for the installation and operation of the Property. In addition, Lessee agrees to comply in all respects with all laws of the jurisdiction in which its operations involving any item of Property may extend and any legislative, executive, administrative or judicial body exercising any power or jurisdiction over the items of the Property; provided that Lessee may contest in good faith the validity or application of any such law or rule in any reasonable manner that does not, in the opinion of Lessor, adversely affect the interest of Lessor in and to the Property or its interest or rights under this Agreement. Lessee shall promptly notify Lessor in writing of any pending or threatened investigation, inquiry, claim or action by any governmental authority which could adversely affect this Agreement, the Property Schedule or the Property thereunder. 10.04Modifications. Subject to the provisions of this Section, Lessee shall have the right, at its own expense, to make alterations, additions, modifications or improvements to the Property. All such alterations, additions, modifications and improvements shall thereafter comprise part of the Property and shall be subject to the provisions of this Agreement. Such alterations, additions, modifications and improvements shall not in any way damage the Property, substantially alter its nature or cause it to be used for purposes other than those authorized under the provisions of state and federal law; and the Property, on completion of any alterations, additions, modifications or improvements made pursuant to this Section, shall be of a value which is equal to or greater than the value of the Property immediately prior to the making of such alterations, additions, modifications and improvements. Lessee shall, at its own expense, make such alterations, additions, modifications and improvements to the Property as may be required from time to time by applicable law or by any governmental authority. ARTICLE XI 11.01Option to Purchase. Lessee shall have the option to purchase Lessor's entire interest in all of the Property subject to the Property Schedule and to terminate any restrictions herein on the Property under the Property Schedule on the last day of the Lease Term for the Property Schedule, if the Property Schedule is still in effect on such day, upon payment in full of the Rental Payments due thereunder plus payment of One (1) Dollar to Lessor. Lessee shall give written notice to Lessor of its intent to purchase Lessor's interest in the Property at least sixty (60) days prior to the last day of the Lease Term for the Property Schedule. Upon exercise of the purchase option as set forth in this Section 11.01 and payment of the purchase price under the Property Schedule, and performance by Lessee of all other terms, conditions and provisions hereof, Lessor shall deliver to Lessee all such documents and instruments as Lessee may reasonably require to evidence the transfer, without warranty by or recourse to Lessor, of all of Lessor's right, title and interest in and to the Property subject to the Property Schedule to Lessee. KEYCORP CONFIDENTIAL - This is counterpart # _____ of _____ manually executed counterparts. Only counterpart # 1 constitutes chattel paper 11.02Option to Prepay. Lessee shall have the option to prepay the Rental Payments due under the Property Schedule, but only if the Property Schedule so provides, and on the terms set forth in the Property Schedule. ARTICLE XII 12.01Assignment by Lessor. Lessor's right, title and interest in, to and under the Property Schedule and the Property under the Property Schedule may be assigned and reassigned in whole or in part to one or more assignees or subassignees by Lessor and, to the extent of their interest, by any Registered Owner, without the necessity of obtaining the consent of Lessee; provided that (i) any assignment, other than an assignment to or by a Registered Owner, shall not be effective until Lessee has received written notice, signed by the assignor, of the name, address and tax identification number of the assignee, and (ii) any assignment to or by a Registered Owner shall not be effective until it is registered on the registration books kept by the Agent. Lessee shall retain all such notices as a register of all assignees (other than Registered Owners) and shall make all payments to the assignee or assignees designated in such register or, in the case of Registered Owners, to the Agent. In the event that Lessor's interest in the Property Schedule and the Property thereunder is assigned to the Agent, Lease Participation Certificates in the Property Schedule may be executed and delivered by the Agent to Registered Owners. Lessee agrees to execute all documents, including notices of assignment and chattel mortgages or financing statements that may be reasonably requested by Lessor or any assignee to protect its interests in this Agreement and the Property Schedule. 12.02Property Schedules Separate Financings. This section is DELETED. 12.03Assignment and Subleasing by Lessee. NONE OF LESSEE'S RIGHT, TITLE AND INTEREST IN, TO AND UNDER THIS AGREEMENT AND IN THE PROPERTY MAY BE ASSIGNED, SUBLEASED OR ENCUMBERED BY LESSEE FOR ANY REASON, WITHOUT THE PRIOR WRITTEN CONSENT OF LESSOR. 12.04Release and Indemnification Covenants. To the extent permitted by law, and only to the extent permitted by the laws of the State of Texas, Lessee and Lessor shall indemnify, protect and hold harmless the other party for liability arising from any and all claims, injury, loss, cost or damage to person or property occasioned by the activities of its own agents or employees in the performance of its respective responsibilities under this Agreement; which obligations, under this Section 12.04, shall remain valid and binding notwithstanding termination of the Agreement. This paragraph is intended to define the liabilities between the Lessee and Lessor and is not intended to modify, in any way, the parties’ liabilities as may otherwise be governed by law. ARTICLE XIII 13.01Events of Default Defined. Any of the following shall constitute an "Event of Default" under the Property Schedule: (a) Failure by Lessee to pay any Rental Payment under the Property Schedule or other payment required to be paid with respect thereto at the time specified therein; (b) Failure by Lessee to observe and perform any covenant, condition or agreement on its part to be observed or performed with respect to the Property Schedule, other than as referred to in subparagraph (a) above, for a period of thirty (30) days after written notice specifying such failure and requesting that it be remedied is given to Lessee by Lessor, unless Lessor shall agree in writing to an extension of such time prior to its expiration; provided that, if the failure stated in the notice cannot be corrected within the applicable period, Lessor will not unreasonably withhold its consent to an extension of such time if corrective action is instituted by Lessee within the applicable period and diligently pursued until the default is corrected; (c) Any statement, representation or warranty made by Lessee in or pursuant to the Property Schedule or its execution, delivery or performance shall prove to have been false, incorrect, misleading or breached in any material respect on the date when made; (d) Lessee shall (i) apply for or consent to the appointment of a receiver, trustee, custodian or liquidator of Lessee, or of all or a substantial part of the assets of Lessee, (ii) be unable, fail or admit in writing its inability generally to pay its debts as they become due, (iii) make a general assignment for the benefit of creditors, (iv) have an order for relief entered against it under applicable federal bankruptcy law, or (v) file a voluntary petition in bankruptcy or a petition or an answer seeking reorganization or an arrangement with creditors or taking advantage of any insolvency law or any answer admitting the material allegations of a petition filed against Lessee in any bankruptcy, reorganization or insolvency proceeding; or (e) An order, judgment or decree shall be entered by any court of competent jurisdiction, approving a petition or appointing a receiver, trustee, custodian or liquidator of Lessee or of all or a substantial part of the assets of Lessee, in each case without its application, approval or consent, and such order, judgment or decree shall continue unstayed and in effect for any period of 60 consecutive days. The foregoing provisions of Section 13.01 are subject to the following limitation: if by reason of forcemajeure Lessee is unable in whole or in part to perform its agreements under this Agreement and the Property Schedule (other than the obligations on the part of Lessee contained in Article VI hereof) Lessee shall not be in default during the continuance of such inability. The term "forcemajeure" as used herein shall mean the following: acts of God; strikes, lockouts or other industrial disturbances; acts of public enemies; orders or restraints of any kind of the government of the United States or of the State or any of their departments, agencies or officials, or any civil or military authority; insurrections, riots, landslides, earthquakes, fires, storms, droughts, floods, explosions, breakage or accident to machinery, transmission pipes or canals; or any other cause or event not reasonably within the control of Lessee. 13.02Remedies on Default . Whenever any Event of Default exists with respect to the Property Schedule, Lessor shall have the right, at its sole option without any further demand or notice, to take one or any combination of the following remedial steps: (a) Without terminating the Property Schedule, and by written notice to Lessee, Lessor may declare all Rental Payments and other amounts payable by Lessee thereunder to the end of the then-current budget year of Lessee to be due, including without limitation delinquent Rental Payments under the Property Schedule from prior budget years, and such amounts shall thereafter bear interest at the rate of 12% per annum or the maximum rate permitted by applicable law, whichever is less; (b) Lessor may terminate the Property Schedule, may enter the premises where the Property subject to the Property Schedule is located and retake possession of the Property, or require Lessee, at Lessee's expense, to promptly return any or all of the Property to the possession of Lessor at such place within the United States as Lessor shall specify, and Lessor may thereafter dispose of the Property in accordance with Article 9 of the Uniform Commercial Code in effect in the State; provided, however, that any proceeds from the disposition of the property in excess of the sum required to (i) defease the Property Schedule pursuant to Section 6.07, (ii) pay any other amounts then due under the Property Schedule, and (iii) pay Lessor's costs and expenses associated with the disposition of the Property (including attorneys fees), shall be paid to Lessee or such other creditor of Lessee as may be entitled thereto, and further provided that no deficiency shall be allowed against Lessee; (c) By written notice to the Agent, if any, Lessor may instruct the Agent to apply all sums held by the Agent in any accounts relating to the Property Schedule under the applicable escrow or trust agreement as provided in the applicable escrow or trust agreement. (d) By written notice to any escrow agent (other than the Agent) who is holding proceeds of the Property Schedule, Lessor may instruct such escrow agent to release all such proceeds and any earnings thereon to Lessor, such sums to be credited to payment of Lessee's obligations under the Property Schedule; KEYCORP CONFIDENTIAL - This is counterpart # _____ of _____ manually executed counterparts. Only counterpart # 1 constitutes chattel paper (e) Lessor may take any action, at law or in equity, that is permitted by applicable law and that may appear necessary or desirable to enforce or to protect any of its rights under the Property Schedule and this Agreement. 13.03No Remedy Exclusive. No remedy herein conferred upon or reserved to Lessor is intended to be exclusive and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Lease now or hereafter existing at law or in equity. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right or power may be exercised from time to time and as often as may be deemed expedient. In order to entitle Lessor to exercise any remedy reserved to it in this Article it shall not be necessary to give any notice, other than such notice as may be required in this Article. 13.04Costs and Attorney Fees. In the event suit or action is instituted to enforce any of the terms of this Agreement, the prevailing party shall be entitled to recover from the other party such sum as the court may adjudge reasonable as attorneys’ fees at trial or on appeal of such suit or action or in any bankruptcy proceeding, in addition to all other sums provided by law. If no party can be considered the prevailing party, the judge will have the discretion to equitable apportion the costs and expenses. ARTICLE XIV 14.01Notices . All notices, certificates or other communications hereunder shall be sufficiently given and shall be deemed given when delivered or mailed by certified mail, postage prepaid, to the parties hereto at the addresses immediately after the signatures to this Agreement (or at such other address as either party hereto shall designate in writing to the other for notices to such party), to any assignee (other than a Registered Owner) at its address as it appears on the registration books maintained by Lessee and to any Registered Owner at its address as it appears on the registration books maintained by the Agent. 14.02Certification as to Arbitrage. Unless a separate Certificate as to Arbitrage is delivered on the Commencement Date, Lessee shall be deemed to make the following representations and covenants as of the Commencement Date for the Property Schedule: (a) The estimated total costs, including taxes, freight, installation, cost of issuance, of the Property under the Property Schedule will not be less than the total principal amount of the Rental Payments. (b) The Property under the Property Schedule has been ordered or is expected to be ordered within six months and the Property is expected to be delivered and installed, and the Vendor fully paid, within one year from the Commencement Date. Lessee will pursue the completion of the Property and the expenditure of the net proceeds of the Property Schedule with due diligence. (c) Lessee has not created or established, and does not expect to create or establish, any sinking fund or other similar fund (i) that is reasonably expected to be used to pay the Rental Payments under the Property Schedule, or (ii) that may be used solely to prevent a default in the payment of the Rental Payments under the Property Schedule. (d) The Property under the Property Schedule has not been and is not expected to be sold or otherwise disposed of by Lessee, either in whole or in major part, prior to the last maturity of the Rental Payments under the Property Schedule. (e) There are no other obligations of Lessee which (i) are being sold within 15 days of the Commencement Date of the Property Schedule; (ii) are being sold pursuant to the same plan of financing as the Property Schedule; and (iii) are expected to be paid from substantially the same source of funds. (f) The officer or official who has executed the Property Schedule on Lessee's behalf is familiar with Lessee's expectations regarding the use and expenditure of the proceeds of the Property Schedule. To the best of Lessee's knowledge, information and belief, the facts and estimates set forth herein are accurate and the expectations of Lessee set forth herein are reasonable. 14.03Further Assurances . Lessee agrees to execute such other and further documents, including, without limitation, confirmatory financing statements, continuation statements, certificates of title and the like, and to take all such action as may be necessary or appropriate, from time to time, in the reasonable opinion of Lessor, to perfect, confirm, establish, reestablish, continue, or complete the interests of Lessor in this Agreement and the Property Schedule, to consummate the transactions contemplated hereby and thereby, and to carry out the purposes and intentions of this Agreement and the Property Schedule. 14.04Binding Effect. This Agreement shall inure to the benefit of and shall be binding upon Lessor and Lessee and their respective successors and assigns. 14.05Severability. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 14.06Waiver of Jury Trials. Lessee and Lessor hereby irrevocably waive all right to trial by jury in any action, proceeding or counterclaim (whether based on contract, tort or otherwise) arising out of or relating to this Agreement or the actions of Lessor or Lessee in the negotiation, administration, performance or enforcement hereof. 14.07Amendments, Changes and Modifications. This Agreement may be amended in writing by Lessor and Lessee to the extent the amendment or modification does not apply to this Property Schedule at the time of such amendment or modification. The consent of the applicable assignee or Agent, if any, shall be required to any amendment or modification before such amendment or modification shall be applicable to this Property Schedule. 14.08Execution in Counterparts. This Agreement and the Property Schedule hereunder may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 14.09Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas. Venue shall be in Denton County, Texas. 14.10Captions. The captions or headings in this Agreement are for convenience only and in no way define, limit or describe the scope or intent of any provisions or sections of this Agreement. IN WITNESS WHEREOF , Lessor and Lessee have caused this Agreement to be executed in their names by their duly authorized representatives as of the date first above written. Lessor: Key Government Finance, Inc.Lessee: City of Denton By:By: KEYCORP CONFIDENTIAL - This is counterpart # _____ of _____ manually executed counterparts. Only counterpart # 1 constitutes chattel paper Name:Name: Title:Title: Attest By: Name: Title: KEYCORP CONFIDENTIAL - This is counterpart # _____ of _____ manually executed counterparts. Only counterpart # 1 constitutes chattel paper Addendum to Tax-Exempt Lease/Purchase Agreement Texas Counties, Municipalities, Hospital Districts, Fire Districts and School Districts THIS ADDENDUM, which is entered into as of 9/3/2009, between Key Government Finance, Inc. ("Lessor") and City of Denton ("Lessee"), is intended to modify and supplement the Tax-Exempt Lease/Purchase Agreement between Lessor and Lessee of even date herewith (the "Master Agreement"). Capitalized terms not otherwise defined herein shall have the meanings set forth in the Master Agreement. Notwithstanding anything to the contrary set forth in the Master Agreement, the Master Agreement is amended as follows: 1. Section 6.05 is deleted in its entirety. If Lessee is a school district, in addition to the representations, warranties, and covenants contained in the Master Agreement, Lessee represents and warrants that the requirements of Education Code sections 44.031 and 44.033, if applicable, have been complied with. IN WITNESS WHEREOF, Lessor and Lessee have caused this Addendum to be executed in their names by their duly authorized representatives as of the date first above written. Lessor: Key Government Finance, Inc.Lessee: City of Denton By:By: Name:Name: Title:Title: Attest By: Name: Title: KEYCORP CONFIDENTIAL - This is counterpart # _____ of _____ manually executed counterparts. Only counterpart # 1 constitutes chattel paper Property Schedule Tax-Exempt Lease/Purchase Agreement Property Schedule This is entered into as of the Commencement Date set forth below, pursuant to that certain Tax-Exempt Lease/Purchase Agreement (the "Master Agreement"), dated as of 9/3/2009, between Key Government Finance, Inc., and City of Denton. 1.Interpretation. The terms and conditions of the Master Agreement are incorporated herein by reference as if fully set forth herein. Reference is made to the Master Agreement for all representations, covenants and warranties made by Lessee in the execution of this Property Schedule, unless specifically set forth herein. In the event of a conflict between the provisions of the Master Agreement and the provisions of this Property Schedule, the provisions of this Property Schedule shall control. All capitalized terms not otherwise defined herein shall have the meanings provided in the Master Agreement. 2.Commencement Date. The Commencement Date for this Property Schedule is 9/3/2009. 3.Property Description and Payment Schedule. The Property subject to this Property Schedule is described in Exhibit A hereto. Lessee shall not remove such property from the locations set forth therein without giving prior written notice to Lessor. The Rental Payment Schedule for this Property Schedule is set forth in Exhibit 1. 4.Lessee's Certificate. The Lessee's Certificate is attached as Exhibit 2 5.Proceeds. Lessor shall disburse the proceeds of this Property Schedule in accordance with the instructions attached hereto as Exhibit 3 6.Acceptance Certificate. The form of Acceptance Certificate is attached as Exhibit 4 7.Additional Purchase Option Provisions. In addition to the Purchase Option provisions set forth in the Master Agreement, Rental Payments payable under this Property Schedule shall be subject to prepayment as follows: See termination amount in Exhibit 1 (Payment Schedule), subject to per diem adjustment. 8.Bank Qualification and Arbitrage Rebate. Attached as Exhibit 5 9.Expiration. Lessor, at its sole determination, may choose not to accept this Property Schedule if the fully executed, original Agreement (including this Property Schedule and all ancillary documents) are not received by Lessor at its place of business by 9/4/2009. IN WITNESS WHEREOF, Lessor and Lessee have caused this Property Schedule to be executed in their names by their duly authorized representatives as of the Commencement Date above. Lessor: Key Government Finance, Inc.Lessee: City of Denton By:By: Name:Name: Title:Title: Attest By: Name: Title: KEYCORP CONFIDENTIAL - This is counterpart # _____ of _____ manually executed counterparts. Only counterpart # 1 constitutes chattel paper EXHIBIT 1 Property Description and Payment Schedule Property Schedule Re:to Tax-Exempt Lease/Purchase Agreement between Key Government Finance, Inc. and City of Denton. The Property is as follows: The Property as more fully described in Exhibit A incorporated herein by reference and attached hereto. EQUIPMENT LOCATION: 215 E. McKinney, Denton, TX 76205 USE: Networking - This use is essential to the proper, efficient and economic functioning of Lessee or to the services that Lessee provides; and Lessee has immediate need for and expects to make immediate use of substantially all of the Property, which need is not temporary or expected to diminish in the foreseeable future. Rental Payment Schedule If the Due Dates are not defined in this Rental Payment Schedule, they shall be defined as the first day of each monthly period of this Rental Payment Schedule commencing with the Acceptance Date. Total Principal Amount $1,632,392.40 The financing table below is net of the special financing promotion payment from Cisco Systems, Inc. in the amount of $155,258.53. This payment will be made by Cisco to Lessor. PaymentPayment Payment No. Due Date Made by Made by PrincipalInterest Termination CiscoLessee 13-Sep-2009155,258.530.00155,258.530.001,521,447.89 23-Nov-2009326,478.48314,824.1311,654.351,197,179.03 33-Nov-2010326,478.48270,359.0856,119.40918,709.18 43-Nov-2011326,478.48283,412.7343,065.75626,794.06 53-Nov-2012326,478.48297,096.6529,381.83320,784.51 63-Nov-2013326,478.48311,441.2715,037.210.00 Lessee: City of Denton By: Name: Title: KEYCORP CONFIDENTIAL - This is counterpart # _____ of _____ manually executed counterparts. Only counterpart # 1 constitutes chattel paper EXHIBIT A Property Description As described in INX Quotation Date 3/17/2009 KEYCORP CONFIDENTIAL - This is counterpart # _____ of _____ manually executed counterparts. Only counterpart # 1 constitutes chattel paper EXHIBIT 2 Lessee's Certificate Property Schedule Re:to Tax-Exempt Lease/Purchase Agreement between Key Government Finance, Inc. and City of Denton. The undersigned, being the duly elected, qualified and acting ____________________of the City of Denton ("Lessee") do hereby certify, as of 9/3/2009, as follows: 1. Lessee did, at a meeting of the governing body of the Lessee held on ________________, by resolution or ordinance duly enacted, in accordance with all requirements of law, approve and authorize the execution and delivery of the above-referenced Property Schedule (the "Property Schedule") and the Tax-Exempt Lease/Purchase Agreement (the "Master Agreement") by the following named representative of Lessee, to wit: NAMEOF EXECUTING OFFICIAL TITLESIGNATURE OF EXECUTING OFFICIAL OF EXECUTING OFFICIAL (Official who signed the documents.) And/ Or 2. The above-named representative of the Lessee held at the time of such authorization and holds at the present time the office set forth above. 3. The meeting(s) of the governing body of the Lessee at which the Master Agreement and the Property Schedule were approved and authorized to be executed was duly called, regularly convened and attended throughout by the requisite quorum of the members thereof, and the enactment approving the Master Agreement and the Property Schedule and authorizing the execution thereof has not been altered or rescinded. All meetings of the governing body of Lessee relating to the authorization and delivery of Master Agreement and the Property Schedule have been: (a) held within the geographic boundaries of the Lessee; (b) open to the public, allowing all people to attend; (c) conducted in accordance with internal procedures of the governing body; and (d) conducted in accordance with the charter of the Lessee, if any, and the laws of the State. 4. No event or condition that constitutes, or with the giving of notice or the lapse of time or both would constitute, an Event of Default or an Event of Nonappropriation (as such terms are defined in the Master Agreement) exists at the date hereof with respect to this Property Schedule under the Master Agreement. 5. The acquisition of all of the Property under the Property Schedule has been duly authorized by the governing body of Lessee. 6. Lessee has, in accordance with the requirements of law, fully budgeted and appropriated sufficient funds for the current budget year to make the Rental Payments scheduled to come due during the current budget year under the Property Schedule and to meet its other obligations for the current budget year and such funds have not been expended for other purposes. 7. As of the date hereof, no litigation is pending, (or, to my knowledge, threatened) against Lessee in any court (a) seeking to restrain or enjoin the delivery of the Master Agreement or the Property Schedule or of other agreements similar to the Master Agreement; (b) questioning the authority of Lessee to execute the Master Agreement or the Property Schedule, or the validity of the Master Agreement or the Property Schedule, or the payment of principal of or interest on, the Property Schedule; (c) questioning the constitutionality of any statute, or the validity of any proceedings, authorizing the execution of the Master Agreement and the Property Schedule; or (d) affecting the provisions made for the payment of or security for the Master Agreement and the Property Schedule. City of Denton Attest By: Title: SOMEONE OTHER THAN THE EXECUTING OFFICIAL(S) SHOWN ABOVE MUST SIGN HERE. KEYCORP CONFIDENTIAL - This is counterpart # _____ of _____ manually executed counterparts. Only counterpart # 1 constitutes chattel paper EXHIBIT 3 Payment of Proceeds Instructions Key Government Finance, Inc. 1000 South McCaslin Blvd. Superior, CO 80027 Re: Property Schedule (the "Property Schedule") to Tax-Exempt Lease/Purchase Agreement between Key Government Finance, Inc. ("Lessor") and City of Denton ("Lessee"). Ladies and Gentlemen: The undersigned, an Authorized Representative of the Lessee hereby requests and authorizes Lessor to disburse the net proceeds of the Property Schedule as follows: Name of Payee: Key Bank N.A. By check _______ By wire transfer X City of Denton By: ________________________________________ Name: _____________________________________ Title: ______________________________________ KEYCORP CONFIDENTIAL - This is counterpart # _____ of _____ manually executed counterparts. Only counterpart # 1 constitutes chattel paper EXHIBIT 4 Acceptance Certificate Key Government Finance, Inc. 1000 South McCaslin Blvd. Superior, CO 80027 Property Schedule Re:to Tax-Exempt Lease/Purchase Agreement between Key Government Finance, Inc. and City of Denton Ladies and Gentlemen: In accordance with the above-referenced Tax-Exempt Lease/Purchase Agreement (the "Master Agreement"), the undersigned ("Lessee") hereby certifies and represents to, and agrees with, Key Government Finance, Inc. ("Lessor"), as follows: (1) The Property, as such terms are defined in the above-referenced Property Schedule, has been acquired, made, delivered, installed and accepted on the date indicated below. (2) Lessee has conducted such inspection and/or testing of the Property as it deems necessary and appropriate and hereby acknowledges that it accepts the Property for all purposes. (3) No event or condition that constitutes, or with notice or lapse of time, or both, would constitute, an Event of Default or an Event of Nonappropriation (as such terms are defined in the Master Agreement) exists at the date hereof. Date: ________________________________ City of Denton as Lessee By: __________________________________ Name: _______________________________ Title: _________________________________ KEYCORP CONFIDENTIAL - This is counterpart # _____ of _____ manually executed counterparts. Only counterpart # 1 constitutes chattel paper EXHIBIT 5 Bank Qualification And Arbitrage Rebate Key Government Finance, Inc. 1000 South McCaslin Blvd. Superior, CO 80027 Property Schedule Re:to Tax-Exempt Lease/Purchase Agreement Key Government Finance, Inc. and City of Denton Qualified Tax-Exempt Obligation This section intentionally left blank Arbitrage Rebate. Pursuant to Treasury Regulations Section 1.148-7(d), the gross proceeds of this Property Schedule will be expended for the governmental purposes for which this Property Schedule was entered into, as follows: at least 15% within six months after the Commencement Date, at least 60% within 12 months after the Commencement Date, and 100% within 18 months after the Commencement Date. If Lessee is unable to comply with Section 1.148-7(d) of the Treasury Regulations, Lessee shall compute rebatable arbitrage on this Agreement and pay rebatable arbitrage to the United States at least once every five years, and within 60 days after payment of the final Rental Payment due under this Agreement. Lessee: City of Denton By: Name: Title: KEYCORP CONFIDENTIAL - This is counterpart # _____ of _____ manually executed counterparts. Only counterpart # 1 constitutes chattel paper **Please fill out this form and fax it to your insurance company** Request for Certificate of Insurance TO: Insurance Carrier: ________________________ (Name)_ _________________________ (Address) _________________________ (Address) ___________________________ (Contact Name) _____________________________ (Contact Phone) _______________________________ (Contact Fax) FROM: Customer/Lessee: City of Denton 215 E. McKinney Denton, TX 76201 Contact Name: Director of Technology Kevin Gunn Contact Phone: 940-349-8595 Contact Fax: 940-349-8533 City of Denton is in the process of financing Networking equipment with Key Government Finance, Inc. City of Denton requests that Key Government Finance, Inc. be listed as "Key Government Finance, Inc., their successors and assigns" and that it be named ADDITIONAL INSURED as to liability coverage and LOSS PAYEE as to property coverage. A copy of said certificate should be forwarded to Key Government Finance, Inc. as described below. NOTE: Coverage is to include: (1) insurance against all risks of physical loss or damage to the Equipment; (2) commercial general liability insurance (including blanket contractual liability coverage and products liability coverage) for personal and bodily injury and property damage of not less than $1,000,000; and (3) if applicable, automobile liability coverage of not less than $3,000,000. 30 days Key Government Finance, Inc. is to receive prior written notice of cancellation or material change in coverage.Qualifying language such as “endeavor to provide”; “but failure to do so shall impose no obligation or liability of any kind upon the insurer, its agents or representative” or the like will NOT be accepted and will delay funding. 1.FAX Please this completed information to: Key Government Finance, Inc. Suzanne Wagner, Account Manager Phone Number: 720-304-1419 Fax Number: 866-840-3016 2.MAIL Please a Certificate of Insurance to: Key Government Finance, Inc. Suzanne Wagner 1000 S. McCaslin Boulevard Superior, CO 80027 3.CONTACT Please the Account Manager: When faxing this Certificate. If this cannot be completed today. If you have any questions. KEYCORP CONFIDENTIAL - This is counterpart # _____ of _____ manually executed counterparts. Only counterpart # 1 constitutes chattel paper Notification of Tax Treatment Key Government Finance, Inc. is required to collect and remit sales/use tax in the taxing jurisdiction where your equipment will be located. In the event we do not receive a valid sales tax exemption certificate prior to the date your lease commences, you will be charged sales/use tax. Personal property tax returns will be filed as required by local law. In the event that any tax abatements or special exemptions are available on the equipment you will be leasing from us, please notify us as soon as possible and forward the related documentation to us. This will ensure that your leased equipment will be reported correctly. Please indicate below if you feel that your lease is subject to tax or whether a valid exemption exists. _______ I agree that my lease is subject to sales/use tax. I am exempt from sales/use tax and I have attached a completed exemption certificate to Key X Government Finance, Inc. _______ I have previously provided a completed exemption certificate to Key Government Finance, Inc. which is valid for this transaction. _______ I am exempt from state tax but subject to local tax. I have attached a completed exemption certificate. _______ I have a valid abatement or property tax exemption (documentation attached). If applicable to the tax rates in your state, are you outside the city limits or in an unincorporated area? _______ Additional comments: ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ Lessee: City of Denton By: Name: Title: KEYCORP CONFIDENTIAL - This is counterpart # _____ of _____ manually executed counterparts. Only counterpart # 1 constitutes chattel paper INSTRUCTIONS FOR COMPLETING THE 8038 FORM Per the Internal Revenue Service, you are required to fill in the Report Number information for Line 4 (the form included in your package is an 8038-G). **We must have this information in order to complete your financing.** 8038-G Line 4. 3 After the preprinted , enter two self-designated numbers. Number the reports consecutively during each calendar year. (If this is the first tax-exempt financing that you have entered into this year, you would use the number 01. If this is the eleventh tax-exempt financing that you have entered into this year, you would use the number 11.) Additionally, please sign at the bottom of the form and remember to print your name and title. Thank you. KEYCORP CONFIDENTIAL - This is counterpart # _____ of _____ manually executed counterparts. Only counterpart # 1 constitutes chattel paper Information Return for Tax-Exempt Governmental Obligations 8038-G Form (Under Internal Revenue Code section 149(e)) (Rev. November 2000) OMB No. 1545-0720 See separate instructions. Department of the Treasury (Caution: If the issue price is under $100,000, use Form 8038-GC ) Internal Revenue Service Reporting Authority Part I Amended Return If , check here 1 Issuer's name 2 Issuer's employer Identification number City of Denton 75-6000514 3 Number and street (or P. O. box if mail is not delivered to street address) Room/suite 4 Report number 215 E. McKinney 3 5 City, town, or post office, state, and ZIP code 6 Date of issue Denton, TX 76201 7 Name of issue 8 CUSIP number Property Schedule to Tax-Exempt Lease/Purchase Agreement 9 Name and title of officer or legal representative whom the IRS may call for more information10 Telephone number of officer or legal representative Kevin Gunn, Director of Technology 940-349-8595 Part II Type of Issue (check applicable box(es) and enter the issue price for each) See instructions and attach schedule 11Education............................................................................................................................................................ 11 12 Health and hospital ............................................................................................................................................ 12 13 Transportation .................................................................................................................................................... 13 14 Public Safety....................................................................................................................................................... 14 15 Environmental (including sewage bonds)........................................................................................................... 15 16 Housing............................................................................................................................................................... 16 17 Utilities................................................................................................................................................................ 17 $1,477,134 18 Other. Describe (see instructions) Networking 18 19If obligations are TANs or RANs, check box If obligations are BANs, check box 20 If obligations are in the form of a lease or installment sale, check box . . . . . . . . . . . . . . . . . . . . . . . . Part III Description of Obligations (Complete for the entire issue for which this form is being filed.) (c) Stated redemption (d) Weighted (a) Final maturity date (b) Issue price (e) Yield price at maturity average maturity 21$1,477,134$1,477,134 2.01 years 4.72 Part IV Uses of Proceeds of Bond Issue (including underwriters' discount) 22 Proceeds used for accrued interest..................................................................................................................................... 220.00 23Issue price of entire issue (enter amount line 21, column (b)).............................................................................................. 23$1,477,134 24 Proceeds used for bond issuance costs (including underwriters' discount)............................. 24 25Proceeds used for credit enhancement................................................................................... 25 0.00 26 Proceeds allocated to reasonably required reserve or replacement fund................................ 26 0.00 27 Proceeds used to currently refund prior issues ....................................................................... 27 0.00 28 Proceeds used to advance refund prior issues ....................................................................... 28 0.00 29(Total add lines 24 through 28)29 30 Nonrefunding proceeds of the issue (subtract line 29 from line 23 and enter amount here)................................................ 30 Part V Description of Refunded Bonds (Complete this part only for refunding bonds.) N/A years 30Enter the remaining weighted average maturity of the bonds to be currently refunded................................................ N/A 31Enter the remaining weighted average maturity of the bonds to be advance refunded................................................ years N/A 32Enter the last date on which the refunded bonds will be called ................................................................................... N/A 33 Enter the date(s) the refunded bonds were issued Part VI Miscellaneous 35Enter the amount of the state volume cap allocated to the issue under section 141(b)(5)......................................................350.00 36aEnter the amount of gross proceeds invested or to be invested in a guaranteed investment contract (see instructions)36a0.00 b Enter the final maturity date of the guaranteed investment contract ___________________ 0.00 37Pooled financings: a Proceeds of this issue that are to be used to make loans to other governmental units37a b If this issue is a loan made from the proceeds of another tax-exempt issue, check boxand enter the name of the issuer and the date of the issue 38 If the issuer has designated the issue under section 265(b)(3)(B)(i)(III) (small issuer exception), check box ................................................ 39 If the issuer has elected to pay a penalty in lieu of arbitrage rebate, check box ............................................................................................. 40 If the issuer has identified a hedge, check box ................................................................................................................................................ Under penalties of perjury, I declare that I have examined this return, and accompanying schedules and statements, and to the Please best of my knowledge and belief, they are true, correct, and complete. Sign ________________________________________________________________________________________________ Here Signature of Issuer’s authorized representative Date Type or print name and title For Paperwork Reduction Act Notice, see page 2 of the Instructions. Cat. No. 63773S Form 8038-G (Rev. 11-2000) KEYCORP CONFIDENTIAL - This is counterpart # _____ of _____ manually executed counterparts. Only counterpart # 1 constitutes chattel paper LESSEE INVOICE INSTRUCTIONS (The information you provide enables us to invoice you correctly.) City of Denton BILL TO ADDRESS: BILLING CONTACT: First, M.I. and Last Name: Title: Phone Number: Fax Number: PURCHASE ORDER NUMBER: Invoices require purchase order numbers: YES _________ NO _________ Purchase Order Number: FEDERAL TAX ID NUMBER: EQUIPMENT LOCATION (: If different from Billing Address) ADDITIONAL INFORMATION NEEDED ON INVOICE: KEYCORP CONFIDENTIAL - This is counterpart # _____ of _____ manually executed counterparts. Only counterpart # 1 constitutes chattel paper Escrow Disbursement Instructions for Tax-Exempt financing In reference to your equipment financing, we will be depositing the financing proceeds directly into an escrow account. This account will provide you with the ability to disburse funds incrementally (either directly to vendors or to reimburse yourself) based on equipment invoices (any $ size and frequency). You will control the disbursement of funds by completing the attached documents. Escrow Disbursements – The following are the steps that you will need to take when making disbursements of proceeds from your escrow account: Exhibit A 1. Complete and sign “FORM OF REQUISITION OF COSTS OF PROPERTY”. This needs to be on your letterhead. Schedule 1 2. Complete and sign – “DISBURSEMENT SCHEDULE” complete with payment information. 3. Attach – Invoice(s) from the Vendor(s). Exhibit A, Schedule 1 and the Vendor invoices 4. Mail a completed and signed copy of the to my attention at the address listed below. Note: If the disbursement from the escrow is for the reimbursement of funds already expended, you must attach proof of payment (front and back of cancelled checks). **PLEASE NOTE THAT WE MUST RECEIVE THE ORIGINAL DOCUMENTS** Once you are ready to do the final disbursement out of the Escrow account: Exhibit 4 “ Final Disbursement – Include the signed and dated original of the ACCEPTANCE CERTIFICATE” (this document was part of your original document package), along with the Exhibit A “FORM OF REQUISITION OF COSTS OF PROPERTY” and the rest of the attachments needed. Additionally, please include a letter stating that this is the final disbursement and that you wish to close the Escrow account. If there is any money remaining in the Escrow account, after the final disbursement to the Vendor(s), the balance will be applied to your next payment. If you have any questions regarding this information, please give me a call. Thank you. Suzanne Wagner Key Government Finance 1000 S. McCaslin Blvd. Superior CO 80027 720-304-1419 866-840-3016 Fax KEYCORP CONFIDENTIAL - This is counterpart # _____ of _____ manually executed counterparts. Only counterpart # 1 constitutes chattel paper ESCROW AGREEMENT This Escrow Agreement (the "Escrow Agreement"), dated as of 9/3/2009 and entered into among Key Government Finance, Inc. ("Lessor"), City of Denton ("Lessee") and KeyBank National Association (the "Escrow Agent"). RECITALS: A. Lessor and Lessee are parties to a Tax-Exempt Lease/Purchase Agreement, dated as of 9/3/2009 and the Property Schedule thereunder (the "Lease") whereunder Lessee is acquiring from Lessor certain personal property more particularly described therein (the "Property"). B. Lessor and Lessee intend to cause or have caused certain funds to be deposited with Escrow Agent to pay for costs of the Property, and Escrow Agent has agreed to disburse said funds in accordance with the terms and conditions of this Agreement. C. Each of the parties has authority to enter into this Agreement and has taken all actions necessary to authorize the execution of this Agreement by the officers whose signatures are affixed hereto. NOW, THEREFORE, the parties agree as follows: 1. Appointment of Escrow Agent. Lessor, Lessee and Escrow Agent agree that Escrow Agent shall act as sole Escrow Agent under the Lease and this Escrow Agreement, in accordance with the terms and conditions set forth in this Escrow Agreement. The Escrow Agent, in its capacity as escrow agent hereunder, shall not be deemed to be a party to the Lease, and this Escrow Agreement shall be deemed to constitute the entire agreement regarding the Acquisition Fund (as hereinafter defined) among Lessor, Lessee and Escrow Agent. 2. Acquisition Fund. There is hereby established in the custody of Escrow Agent a special trust fund designated as the "City of Denton Acquisition Fund" (the "Acquisition Fund") to be held and administered by Escrow Agent in trust for Lessee in accordance with this Escrow Agreement, subject to Lessor's rights under Section 3 hereof. It is anticipated that the funds in the Acquisition Fund and earnings thereon shall be sufficient to pay the cost of acquisition of the Property. In the event such sums are insufficient, Lessee shall be responsible for the timely payment of any deficiency. The moneys and investments held by Escrow Agent under this Agreement are irrevocably held in trust for the benefit of Lessee and Lessor, and such moneys, together with any income or interest earned thereon, shall be expended only as provided in this Agreement, and shall not be subject to levy or attachment or lien by or for the benefit of any creditor of Lessee (other than Lessor) or Lessor. Lessor, Lessee and Escrow Agent intend that the Acquisition Fund constitute an escrow account in which Lessee has no legal or equitable right, title or interest until satisfaction in full of all conditions contained herein and in the Lease for the disbursement of funds by Escrow Agent therefrom. However, if the parties' intention that Lessee shall have no legal or equitable right, title or interest until all conditions for disbursement are satisfied in full is not respected in any legal proceeding, the parties hereto intend that Lessor have a security interest in such account, and such security interest is hereby granted to Lessor by Lessee, to secure payment of all sums due to Lessor under the Lease. For such purpose, Escrow Agent hereby agrees to act as agent for Lessor in connection with the perfection of such security interest and agrees to note, or cause to be noted, on all books and records relating to such accounts, Lessor's interest therein. 2.A. Deposit in Acquisition Fund. There shall be deposited in the Acquisition Fund the sum of $1,632,392.40. Escrow Agent shall maintain accounting records sufficient to permit calculation of the income on investments and interest earned on deposit of amounts held in the Acquisition Fund, and such income and interest shall become part of the Acquisition Fund and may be expended as provided herein. 2.B. Disbursements from Acquisition Fund. Escrow Agent shall make payments from the Acquisition Fund to pay costs of the Property upon receipt of requisitions from Lessee, signed by an authorized individual substantially in the form attached hereto as Exhibit A, which is incorporated by reference herein. In the event Escrow Agent is directed or requested by Lessee to hold or deposit any retained funds or to accept a retainage bond (in lieu of funds) as may be required by law or the terms of the acquisition contract to which Lessee is a party, Escrow Agent shall act in accordance with Lessee's instructions, and such retained funds (or performance bond) and any interest thereon shall be paid as provided in instructions to Escrow Agent from Lessee. The final requisition shall include the final acceptance certificate required in the Lease, which shall be executed by the Lessee and delivered to the Escrow Agent. Where requisitions involve titled motor vehicles, the requisition shall also include: (i) Manufacturer's Certificate of Origin. lien (ii) Motor vehicle paperwork appropriate to state of registration, noting Key Government Finance, Inc. as holder . (iii) Insurance certificate naming Key Government Finance, Inc., its successors and assigns as sole loss payee and additional insured for the specified equipment. 3. Termination of Escrow. KEYCORP CONFIDENTIAL - This is counterpart # _____ of _____ manually executed counterparts. Only counterpart # 1 constitutes chattel paper (a) Acquisition of Property. Upon the final acceptance of the Property by Lessee, as evidenced by execution by Lessee of a final acceptance certification pursuant to the Lease and delivered to Escrow Agent, and the payment of all costs related thereto (i) any retainage shall be disbursed as directed by Lessee, and (ii) any amounts remaining in the Acquisition Fund (including the earnings from investments thereof) shall be transferred to Lessee and be applied toward reimbursement of Lessee for funds advanced for the Property. To the extent that additional moneys in excess of those needed to reimburse Lessee for the acquisition of the Property exist in the Acquisition Fund, such amounts shall be paid to Lessor and applied first to the next payment due on the Lease and then applied to prepayment of the principal component of installment payments and Lessor shall recalculate the lease payment schedule for the remaining term such that the remaining lease payments shall be level. Upon disbursement of all sums in the Acquisition Fund, this Escrow Agreement shall terminate, provided that the indemnifications by Lessee shall survive the termination of this Escrow Agreement. (b) Eighteen Months. This Escrow Agreement shall terminate eighteen (18) months from the date of this Escrow Agreement. It may, however, be extended by mutual consent of the Lessee and Lessor in writing to the Escrow Agent either in advance of the termination or retroactively. Any money remaining in the Acquisition Fund at the time of termination under this subsection (b) shall be transferred to Lessor and shall be applied first to the next payment due under the Lease, and then, if there are amounts remaining, applied to the prepayment of the Lease being applied to principal and Lessor shall recalculate the lease payment schedule for the remaining term such that the remaining lease payments shall be level. Lessee shall be deemed to have accepted all Property paid for from the Acquisition Fund at the time of termination under this subsection (b). Upon disbursement of all sums in the Acquisition Fund, this Escrow Agreement shall terminate, provided that the indemnifications by Lessee shall survive the termination of this Escrow Agreement. (c) Event of Default; Nonappropriation. Upon receipt of written notice from Lessor of an event of default by Lessee under the Lease or an event of nonappropriation, if provided for under the Lease, Escrow Agent shall disburse the funds in the Acquisition Fund to Lessor for application in accordance with the Lease. Upon such payments from the Acquisition Fund, this Escrow Agreement shall terminate, provided that the indemnifications by Lessee shall survive the termination of this Escrow Agreement. 4. Investment of Acquisition Fund; Arbitrage Rebate. (a) Investment of Acquisition Fund. Monies held by Escrow Agent hereunder shall be invested and reinvested by Escrow Agent upon written instructions from Lessee in an investment which is a permitted investment for Lessee under the laws of the state in which Lessee is organized. Escrow Agent shall have no responsibility for advising Lessee or Lessor as to the permissibility of any investment of monies in the Acquisition Fund. If Escrow Agent does not receive a written direction from Lessee as to the investment or reinvestment of monies in the Acquisition Fund, Escrow Agent may hold such monies uninvested until such direction is received. Escrow Agent shall have no responsibility for any losses suffered from any investment of monies on deposit in the Acquisition Fund authorized by Lessee. (b) Arbitrage Rebate. Lessee hereby represents, covenants and warrants that pursuant to Treasury Regulations Section 1.148-7(d), the gross proceeds of the Lease will be expended for the governmental purposes for which the Lease was entered into, as follows: at least 15% within six months after the Commencement Date, such date being the date of deposit of funds into the Acquisition Account under Section 2.A., hereof, at least 60% within 12 months after the Commencement Date, and 100% within 18 months after the Commencement Date. If Lessee is unable to comply with Section 1.148-7(d) of the Treasury Regulations, Lessee shall, at its sole expense and cost, compute rebatable arbitrage on the Lease and pay rebatable arbitrage to the United States at least once every five years, and within 60 days after payment of the final rental or installment payment due under the Lease. 5. Amendment and Modification. This Escrow Agreement may not be amended, modified, altered, supplemented or waived except by a written instrument executed by Lessor, Lessee and Escrow Agent. 6. Regarding the Escrow Agent. (a) Duties of Escrow Agent. Escrow Agent undertakes to perform only such duties as are specifically set forth in this Escrow Agreement. Escrow Agent shall be under no implied obligation or subject to any implied liability hereunder. Escrow Agent shall incur no liability whatsoever except for its gross negligence or willful misconduct so long as it is acting in good faith. Escrow Agent shall not be required to take notice of any of the provisions of the Lease or any document or instrument executed in connection therewith, except as expressly set forth in this Escrow Agreement. The permissive right of the Escrow Agent to do things enumerated in this Escrow Agreement shall not be construed as a duty. (b) Escrow Agent Reliance. Escrow Agent may act in reliance upon any writing or instrument or signature which it, in good faith, believes to be genuine, may assume the validity and accuracy of any statement or assertion contained in such a writing or instrument, and may assume that any person purporting to give any writing, notice, advice or instructions in connection with the provisions hereof has been duly authorized to do so. Escrow Agent shall not be liable in any manner for the sufficiency or correctness as to form, manner and execution, or validity of any instrument deposited with it, nor as to the identity, authority or right of any person executing the same; and its duties hereunder shall be limited to those specifically provided herein. KEYCORP CONFIDENTIAL - This is counterpart # _____ of _____ manually executed counterparts. Only counterpart # 1 constitutes chattel paper (c) Counsel and Fees; Reliance upon Counsel. If Escrow Agent believes it to be reasonably necessary to consult with counsel concerning any of its duties in connection herewith, or in case the Escrow Agent becomes involved in litigation on account of acting hereunder, then, in either case, its cost, expenses and reasonable attorneys fees shall be paid by Lessee. Escrow Agent's right to receive its attorneys’ fees and expenses shall survive the termination of this Escrow Agreement. If Escrow Agent consults with counsel, Escrow Agent may act, in good faith, in reliance upon the advice of counsel concerning its duties in connection herewith or in acting hereunder. (d) No Obligation to Take Legal Action. Escrow Agent shall not be under any obligation to take any legal action in connection with this Escrow Agreement or for its enforcement, or to appear, prosecute or defend any action or legal proceeding which, in its opinion, would or might involve it in any costs, expense, loss or liability, or to otherwise expend or risk its own funds or incur any financial liability in the performance of this Escrow Agreement, unless and as often required by it, it shall be furnished with security and indemnity satisfactory against all such costs, expenses, losses or liabilities. If any controversy arises between the parties hereto or with any third person, the Escrow Agent shall not be required to resolve the same or to take any action to do so (other than to use its best efforts to give notice of such controversy to Lessor and Lessee) but may, at its discretion, institute such interpleader or other proceedings as it deems proper. (e) Quarterly Statement. Escrow Agent shall issue a quarterly accounting statement showing receipts to and disbursements from the Acquisition Fund. Such statement shall be mailed to Lessor and Lessee. (f) Resignation and Termination. Escrow Agent may, upon providing thirty days written notice, resign its position as Escrow Agent and terminate its liabilities and obligations hereunder. In the event Escrow Agent is not notified within thirty days of a successor Escrow Agent, Escrow Agent shall be entitled to transfer all funds to a court of competent jurisdiction with a request to have a successor appointed, at the expense of Lessee. Upon filing such action and delivering such assets, Escrow Agent's obligations and responsibilities shall cease. Lessor and Lessee may jointly terminate Escrow Agent and appoint a successor Escrow Agent by providing 15 days written notice to Escrow Agent. 7. Indemnification. To the extent permitted by law, Lessee hereby assumes liability for, and hereby agrees (whether or not any of the transactions contemplated hereby are consummated) to indemnify, protect, save and keep harmless the Escrow Agent and its respective successors, assigns, agents, employees and servants, from and against any and all liabilities, obligations, losses, damages, penalties, claims, actions, suits, costs, expenses and disbursements (including reasonable legal fees and disbursements) of whatsoever kind and nature which may be imposed on, incurred by or asserted against, Escrow Agent at any time (whether or not also indemnified against the same by Lessee or any other person under any other agreement or instrument, but without double indemnity) in any way relating to or arising out of the execution, delivery and performance of this Escrow Agreement, the establishment hereunder of the Acquisition Fund, the acceptance of the funds and securities deposited therein, the purchase of any securities to be purchased pursuant thereto, the retention of such securities or the proceeds thereof, and any payment, transfer or other application of moneys or securities by Escrow Agent in accordance with the provisions of this Escrow Agreement; provided, however, that Lessee shall not be required to indemnify, protect, save or keep harmless Escrow Agent against Escrow Agent's own gross negligence or willful misconduct or gross negligence or willful misconduct of Escrow Agent's respective successors, assigns, agents and employees or the material breach by Escrow Agent of the terms of this Escrow Agreement. The indemnities contained in this Section shall survive the termination of this Agreement. 8. Notices. Any notices permitted or required under this Escrow Agreement shall be made in writing and shall be deemed given upon the date of personal delivery or 48 hours after deposit in the United States mail, certified or registered, postage fully prepaid, return receipt requested, addressed to the addresses set forth on the signature page of this Escrow Agreement. The party to whom notices or copies of notices are to be sent shall have the right at any time and from time to time to change its address for notice or person to receive notice by giving notice in the manner specified in this paragraph. 9. Escrow Agent's Fee. Escrow Agent shall be paid no fee for setting up the escrow. In the event that Escrow Agent is made a party to litigation with respect to the Acquisition Fund, or brings an action in interpleader, or Escrow Agent is required to render any service not provided for in this Escrow Agreement, or there is any assignment of interests in this escrow or any modification hereof, Escrow Agent shall be entitled to reasonable compensation for such extraordinary services and reimbursement by Lessee for all fees, costs, liability and expenses, including attorney fees. Lessee also agrees to pay any investment fees or other charges of Escrow Agent, such as wire transfer charges and disbursement charges and agrees such fees and charges may be deducted by and paid to the Escrow Agent from funds in or to be deposited in the Acquisition investment earnings to be deposited in the Acquisition Fund. 10. Counterparts. This Escrow Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. This Escrow Agreement is to be executed by the parties hereto in sufficient numbers so that an Escrow Agreement bearing each party's original signature can be held by the Escrow Agent. 11. Waiver. Any waiver by any party of any breach of any term or condition of this Escrow Agreement shall not operate as a waiver of any other breach of such term or condition or any other term or condition, nor shall any failure to enforce such provision hereof operate as a waiver of such provision or of any other provision hereof, nor constitute nor be deemed a waiver or release of any other party for anything arising out of, connected with, or based on this Escrow Agreement. KEYCORP CONFIDENTIAL - This is counterpart # _____ of _____ manually executed counterparts. Only counterpart # 1 constitutes chattel paper 12. Exhibits. All exhibits, schedules and lists attached to this Escrow Agreement or delivered pursuant to this Escrow Agreement shall be deemed a part of this Escrow Agreement and incorporated herein, where applicable, as if fully set forth herein. 13. Applicable Law. This Escrow Agreement shall be governed by the laws of the state in which Lessee is located. 14. Successors and Assigns. This Escrow Agreement shall be binding on and shall inure to the benefit of the parties and their respective successors and assigns. Any corporation or association into which the Escrow Agent may merge, or to which Escrow Agent may sell or transfer its banking business, shall automatically be and become successor Escrow Agent hereunder and vested with all powers as was its predecessor without the execution or filing of any instruments or further act, deed or conveyance on the part of the parties hereto. 15. Severability. In the event any provision of this Escrow Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. IN WITNESS WHEREOF, Lessor, Lessee and Escrow Agent have caused this Escrow Agreement to be executed by their duly authorized representatives, all as of the date first above written. Key Government Finance, Inc. City of Denton By By Authorized Officer Authorized Officer Title _______________________________ Title _______________________________ Address: 1000 S. McCaslin Blvd. Address: 215 E. McKinney Superior, CO 80027 Denton, TX 76201 KEYBANK NATIONAL ASSOCIATION By Authorized Officer Address: 127 Public Square Cleveland OH 44114 KEYCORP CONFIDENTIAL - This is counterpart # _____ of _____ manually executed counterparts. Only counterpart # 1 constitutes chattel paper [Please type on your letterhead] EXHIBIT A FORM OF REQUISITION COSTS OF PROPERTY C/O Key Government Finance, Inc. 1000 South McCaslin Blvd. Superior, CO 80027 Attn: Suzanne Wagner 720-304-1419 On Behalf of: KeyBank National Association 127 Public Square Cleveland OH 44114 Amount Requested: $___________________ Total Disbursements to Date: $ ____________________ Requisition No.: ________________ 1. The undersigned, an officer or official of Lessee, hereby requests and authorizes KeyBank National Association, as Escrow Agent under the Escrow Agreement dated as of 9/3/2009, among City of Denton (the "Lessee"), Key Government Finance, Inc. (the "Lessor") and Escrow Agent, to pay to or upon the order of the Lessee the amount specified above for the payment or reimbursement of costs of Property described in Schedule 1 attached. 2. The Lessee hereby certifies that: (a) each obligation mentioned in Schedule 1 has been properly incurred, is a proper charge against the Acquisition Fund and has not been the basis of any previous disbursement; (b) no part of the disbursement requested hereby will be used to pay for materials not yet incorporated into the Property or for services not yet performed in connection therewith; (c) insurance requirements of the Lease have been complied with and such coverage is in force; (d) as of the date of this Requisition no event of default or event of nonappropriation, if any, as such terms are defined in the Lease between Lessor and Lessee has occurred and is continuing and no event which with notice or lapse of time, or both, has occurred and is continuing which would constitute such event of default or event of nonappropriation; and (e) the Property acquired with this disbursement is functionally complete and operationally independent and is hereby accepted. If this is the final requisition, the final acceptance certification required in the Lease is attached hereto. 3. All capitalized terms herein shall have the meanings assigned to them in the Escrow Agreement 4. The list of equipment, set forth in the equipment/property description to the Lease, shall be deemed amended upon payment of this requisition to include the property set forth in Schedule 1 hereto and any property paid with funds of this requisition. City of Denton By: __________________________________________________ Name: _______________________________________________ Title: ________________________________________________ Date: ________________________________________________ Approved by Lessor, or in the event Lessor’s right, title and interest in the Lease has been assigned, by the current assignee of Lessor’s right, title and interest in the Lease Agreement: Key Government Finance, Inc. By: __________________________________________________ Name: _______________________________________________ Title: ________________________________________________ Date: ________________________________________________ [Lessee to attach final acceptance certification if final disbursement request.] KEYCORP CONFIDENTIAL - This is counterpart # _____ of _____ manually executed counterparts. Only counterpart # 1 constitutes chattel paper SCHEDULE 1 DISBURSEMENT SCHEDULE To Requisition No.________ for the Acquisition Fund: 1. Amount: $ Payee: By check ____ By wire transfer____ If by check, Payee's address: If by wire transfer, instructions as follows: Pay to: Bank Name: Bank Address: Bank City, State, Zip: Bank Phone: For Account of: Account No.: ABA No.: 2. Amount: $ Payee: By check ____ By wire transfer____ If by check, Payee's address: If by wire transfer, instructions as follows: Pay to: Bank Name: Bank Address: Bank City, State, Zip: Bank Phone: For Account of: Account No.: ABA No.: City of Denton By: _________________________________________________ Name: ______________________________________________ Title: ________________________________________________ Date: _______________________________________________ KEYCORP CONFIDENTIAL - This is counterpart # _____ of _____ manually executed counterparts. Only counterpart # 1 constitutes chattel paper ORDINANCE NO. AN ORDINANCE AUTHORIZING THE FINANCING OF PHONE EQUIPMENT, RECURRING MAINTENANCE SUPPORT AND INSTALLATION SERVICES FOR THE CITY OF DENTON THROUGH A LEASE PURCHASE FINANCING AGREEMENT; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (FILE 4391THIRD PARTY LEASE PURCHASE OF PHONE EQUIPMENT THROUGH KEY GOVERNMENT FINANCE IN THE AMOUNT OF $1,632,392.40 WITH FIVE ANNUAL PAYMENTS OF $326,478.48 EACH.) WHEREAS, Section 271.005 of the Local Government Code authorizes the City council, in its discretion, to contract for the financing of personal property; and WHEREAS, the City Council finds that the herein authorized financing of the budgeted equipment through a lease purchase agreement with Key Government Finance is appropriate and in the public interest; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be expended for the herein authorized lease purchase agreement; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Council hereby authorizes a lease purchase agreement to finance the acquisition of phone equipment and maintenance as listed on Exhibit A with Key Government Finance, said agreement providing for a financed amount of $1,632,392.40 having five annual payments of approximately $326,478.48 with the interest cost assumed by the equipment provider. SECTION 2. The City Manager, or the Purchasing Agent as his designee, is authorized to enter into a lease purchase agreement on behalf of the City in accordance with the terms set forth in Section 1 and to expend the funds provided for in Section 1. SECTION 3. 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-4391 AGENDA INFORMATION SHEET AGENDA DATE: September 1, 2009 DEPARTMENT: City Manager’s Office CM: George Campbell, City Manager SUBJECT Consider nominations/appointments to the City’s Boards and Commissions. BACKGROUND The following boards/commissions require nominations: Historic Landmark Commission – a nomination from Council Member Watts and an “All” position for the entire Council. Zoning Board of Adjustment – two “All” alternate positions for the entire Council. If you require any further information, please let me know. Respectfully submitted: Jennifer Walters City Secretary S:\City Secretary\Boards & Comm\Agenda Info Sheet for Vacancies 9-1-09.doc 4m do A +0 a \\codad\departments\legal\our documents\ordinances\09\dcta roe rail line amended 090109.doc ORDINANCE NO. 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, AND EXTENDED ON MAY 5, 2009, AND SUBSEQUENTLY EXTENDED ON JUNE 235 20095 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 ACTIVITY AS DESCRIBED IN ATTACHMENT "A" HERETO; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of Denton, Texas is a Home-Rule City and a Municipal Corporation (hereafter "Grantor"), and claims an interest in and to the following described tract of land: 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 02021 (hereafter the "Property"). WHEREAS, the Denton County Transportation Authority (hereafter "DCTA") expects to acquire an easement in the Property from the City of Denton, Texas for the purpose of constructing, operating and maintaining DCTA's passenger rail line (the "Project") for approximately eight miles, extending southward through the City of Denton, and much of which easement tract lies within the City of Denton, Texas; and WHEREAS, the City of Denton, Texas expects to grant unto DCTA a perpetual easement upon reaching acceptable terms of agreement, in order that DCTA can immediately commence preliminary construction activities on the above-referenced Project; and WHEREAS, DCTA needs immediate possession of the Property in order to prepare the Property for DCTA construction activities, pending final negotiation of the terms of the easement with the City of Denton and the Dallas Area Rapid Transit; and WHEREAS, both the City of Denton and DCTA recognize the urgency of commencing construction on the Project as soon as is reasonably possible; and WHEREAS, on March 3, 2009 the City Council adopted Ordinance No. 2009-059 authorizing the execution of a Right of Entry and Possession to DCTA; and WHEREAS, on May 5, 2009 the City Council adopted Ordinance No. 2009-118 extending the expiration of the Right of Entry and Possession for a period of 30 days from the date of expiration set forth in Ordinance No. 2009-059; and \\codad\departments\legal\our documents\ordinances\09\dcta roe rail line amended 090109.doc WHEREAS, on June 23, 2009 the City Council adopted Ordinance No. 2009-149 expanding the scope of activities and extending the term of the said Right of Entry and Possession until September 8, 2009; and WHEREAS, The City Council deems it to be in the best interest of the City to execute an amendment to expand the scope of activities and extend the term of the said Right of Entry and Possession in favor of DCTA until November 6, 2009; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS- SECTION 1. The City Manager, or his designee, is hereby authorized and directed to execute a Right of Entry and Possession for the above described property in favor of DCTA. A copy of the said Right of Entry and Possession is attached hereto as Attachment "A" and incorporated herein for all purposes. SECTION 2. The authority granted DCTA pursuant to this Ordinance shall be conditioned upon DCTA's compliance with all applicable federal, state or local laws and regulations including, but not limited to, any and all City of Denton mandated standard requirements, procedures and processes for obtaining permits prior to the commencement of any activity authorized herein. Failure to comply with all such requirements, including the obtaining of required permits, prior to the commencement of such activities shall cause the immediate suspension of all authority granted DCTA pursuant to this ordinance. SECTION 3. The authority granted DCTA pursuant to this Ordinance shall expire on November 6, 2009 after which date all authority granted herein shall cease and this Ordinance shall be of no further force and effect. 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: Page 2 of 2