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HomeMy WebLinkAboutMarch 2, 2010 Agenda AGENDA CITY OF DENTON CITY COUNCIL March 2, 2010 After determining that a quorum is present, the City Council of the City of Denton, Texas will convene in a Work Session on Tuesday, March 2, 2010 at 4:00 p.m. in the Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: WORK SESSION 1.Requests for clarification of agenda items listed on the agenda for March 2, 2010. 2.Receive a report and hold a discussion regarding Annexation Plans to initiate the Involuntary Annexation of approximately 1,594 acres, located in the City’s Extraterritorial Jurisdiction (ETJ), Division 1. The proposed annexation is in multiple ownerships, and consists of three (3) distinct areas, as presented in Exhibits 1, 2 and 3. The 3 areas are identified and generally located as follows: (A10-0002 – 2010 Annexation Plan) a. DH-7: Approximately 143 acres, generally located on the east and north side of Teasley Lane, south of Teasley Harbor Subdivision and west of Southlake Drive; b. DH-9: Approximately 298 acres, generally located north of Pockrus Page Road, north, south and northeast of Edwards Road; and c. DH-12: Approximately 1,153 acres, generally located south of E. University Drive, east of N. Mayhill Road, north and south of Blagg Road, north and south of Mills Road, east and west of S. Trinity Road. 3. Receive a report, hold a discussion and give staff direction regarding possible revisions to utility customer credit and collection policies. 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. Consultation with Attorney – Under Texas Government Code Section 551.071. 1. Receive a briefing and report from the City’s attorneys regarding the litigation entitled City of Denton, Texas v. Range Resources Corporation, Range Operating Texas, LLC, Stroud Energy, Ltd., and Dan A. Hughes th Co.; Cause No. 2008-19218-16, pending in the 16 Judicial District Court, Denton County, Texas. Discuss and deliberate, and provide the attorneys with direction. A public discussion of these legal matters would conflict with the duty of the City’s attorneys to the City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. City of Denton City Council Agenda March 2, 2010 Page 2 B. Deliberations Regarding Certain Public Power Utilities: Competitive Matters – Under Texas Government Code Section 551.086; Consultation with Attorney – Under Texas Government Code Section 551.071 1.Receive a presentation from DME staff, discuss, deliberate and consider possible changes to the ECA Rate Rider to the electric rate ordinance, which issues are public power utilities competitive and financial matters. Receive legal advice from the City’s attorneys regarding possible changes to the ECA Rate Rider. Provide the City’s attorneys with direction. A public discussion of these legal matters would conflict with the duty of the City’s attorneys to the City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. (Mike Grim) C. Consultation with Attorneys – Under Texas Government Code, Section 551.071. 1.Consultation, discussion, deliberation, and receipt of information from the city’s attorneys involving legal matters relating to possible annexations of property into the City of Denton where public discussion of these legal matters would clearly conflict with the duty of the City’s attorneys to the City of Denton and the Denton City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. ANY FINAL ACTION, DECISION, OR VOTE ON A MATTER DELIBERATED IN A CLOSED MEETING WILL ONLY BE TAKEN IN AN OPEN MEETING THAT IS HELD IN COMPLIANCE WITH TEXAS GOVERNMENT CODE, CHAPTER 551, EXCEPT TO THE EXTENT SUCH FINAL ACTION, DECISION, OR VOTE IS TAKEN IN THE CLOSED MEETING IN ACCORDANCE WITH THE PROVISIONS OF §551.086 OF THE TEXAS GOVERNMENT CODE (THE ‘PUBLIC POWER EXCEPTION’). THE CITY COUNCIL RESERVES THE RIGHT TO ADJOURN INTO A CLOSED MEETING OR EXECUTIVE SESSION AS AUTHORIZED BY TEX. GOV’T. CODE, §551.001, ET 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 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.” City of Denton City Council Agenda March 2, 2010 Page 3 2. PROCLAMATIONS/PRESENTATIONS A.Proclamations/Awards 1.Professional Social Work Month proclamation 2.Proclamation for Jim Witt 3. CONSENT AGENDA Each of these items is recommended by the Staff and approval thereof will be strictly on the basis of the Staff recommendations. Approval of the Consent Agenda authorizes the City Manager or his designee to implement each item in accordance with the Staff recommendations. The City Council has received background information and has had an opportunity to raise questions regarding these items prior to consideration. Citizens may speak on items listed on the Consent Agenda. A Request to Speak Card should be completed and returned to the City Secretary before Council considers the Consent Agenda. Citizen comments on Consent Agenda items are limited to three minutes. Listed below are bids, purchase orders, contracts, and other items to be approved under the Consent Agenda (Agenda Items A – W). 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 – W below will be approved with one motion. If items are pulled for separate discussion, they may be considered as the first items following approval of the Consent Agenda. A.Consider adoption of an ordinance of the City Council of the City of Denton, Texas authorizing the City Manager to execute a Supplemental Engagement Letter Agreement with Burford & Ryburn, LLP for professional legal services relating to the eminent domain assignments for West 380 (University Drive) Project; authorizing the expenditure of funds; and providing an effective date. B.Consider adoption of an ordinance of the City Council of the City of Denton, Texas, approving a grant application from Kanda Boonumpaichayakui from the Downtown Incentive Grant Program not to exceed $5,000; and providing for an effective date. The Economic Development Partnership Board recommends approval (5-0). C.Consider adoption of an ordinance accepting competitive bids and awarding an annual contract for the purchase of Water Treatment Chemicals for the City of Denton Water Treatment Plants; providing for the expenditure of funds therefor; and providing an effective date (Bid 4456–Annual Contract for Water Treatment Chemicals awarded to the lowest responsible bidder for each item in the annual estimated amount of $800,000). The Public Utilities Board recommends approval (5-0). D.Consider adoption of an ordinance rejecting any and all competitive bids for a public works contract for the construction of a 36 inch, 42 inch and 48 inch sewer line for the City of Denton (Bid Number 4457); and providing an effective date. City of Denton City Council Agenda March 2, 2010 Page 4 E.Consider approval of the minutes of: February 9, 2010 F.Consider a request for an exception to the Noise Ordinance for the purpose of performing live music during the NX35 Music Conferette. The concert will be held at the North Texas Fairground located at 2217 N. Carroll on Saturday, March 13, 2010. The sound check will be from 11:00 a.m. until 2:00 p.m. The sound check can be accomplished with 50% of the volume level. A playlist of recorded music will begin at 3:00 p.m. and live performances will begin at 6:00 p.m. and conclude at 9:45 p.m. This request is for an increase in sound from 70 decibels to 102 decibels. Staff recommends an increase to 75 decibels. G.Consider a request for an exception to the Noise Ordinance for the purpose of the 3rd Annual Bean Stock Music Festival, sponsored by Cool Bean’s Bar and Grill. The event will be held at Cool Beans, located at 1210 W. Hickory Street, on Saturday, April 10, 2010, beginning at 2:00 p.m. and concluding at 12:00 a.m. The exception is requested for extension of the hours of operation for amplified sound and for an increase in sound from 70 to 77 decibels. Staff recommends an increase to 75 decibels. H.Consider a request for an exception to the Noise Ordinance for the purpose of performing live music during the Glory of Zion International Ministries conference and celebration. The five day conference will be held from Wednesday, March 24th through Sunday, March 28th on the church property located at the corner of Windsor Drive and I-35N. The request is for a variance in decibels (dBs) for an outdoor concert from 70 to 75 decibels and for amplified sound on Sunday from 8:00 a.m. – 1:00 p.m. Staff recommends an increase to 75 decibels. I.Consider adoption of an ordinance of the City Council of the City of Denton, Texas, authorizing the City Manager or his designee to execute a third and final one-year extension to the depository services contract with Wachovia Bank, N.A.; and providing an effective date. J.Consider adoption of an ordinance of the City Council of the City of Denton, Texas, authorizing the City Manager or his designee to execute a two-year extension to the investment advisory services contract with First Southwest Asset Management Inc.; and providing an effective date. K.Consider approval of a resolution revising Administrative Policy No. 403.07 “Debt Service Management” and providing for an effective date. L. Consider adoption of an ordinance of the City of Denton, Texas amending the City’s Utility Credit and Collection policies that are contained in the Denton Code of Ordinances, Chapter 26, “Utilities,” Sections 26-3, 26-4, 26-5, 26-6, 26-8, and 26-9; providing an open meetings clause; providing a cumulative clause; providing a repealer; providing a severability clause; providing an effective date. The Public Utilities Board recommends approval (5-0). City of Denton City Council Agenda March 2, 2010 Page 5 M. Consider adoption of an ordinance of the City of Denton, Texas approving a Compromise Settlement Agreement between Range Resources and the City of Denton; authorizing the City Manager and the City’s attorneys to act on the City’s behalf in executing any and all documents, and to take other actions necessary to finalize the settlement; and declaring an effective date. N. Consider adoption of an ordinance of the City of Denton, Texas amending the Denton Municipal Electric ordinance contained in Ordinance No. 2009-218, solely as to rate rider ECA (Energy Cost Adjustment); providing for a repealer; providing for a severability clause; providing for an effective date. O. Consider adoption of an ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas and Tejas Storytelling Association for supplemental funding for entertainment at the Texas Storytelling Festival; providing for the expenditure of funds therefore; and providing for an effective date. ($550) P. Consider adoption of an ordinance providing for acceptance of eligible non- annexation agreements for agricultural, wildlife management or timberland use properties within an area of land adjacent to and abutting the existing city limits of the City of Denton, Texas, generally identified as DH-2 of approximately 258 acres located on the south side of University Drive, west and east sides of Thomas J. Egan Road, north of Jim Christal road, west of Masch Branch Road, and more specifically identified in Exhibit “A” attached hereto; providing for severability; and providing an effective date. Q. Consider adoption of an ordinance providing for acceptance of eligible non- annexation agreements for agricultural, wildlife management or timberland use properties within an area of land adjacent to and abutting the existing city limits of the City of Denton, Texas, generally identified as DH-3 of approximately 421 acres located on the south side of Spring Side Road, north, south and west of Corbin Road, west of I-35, and more specifically identified in Exhibit “A” attached hereto; providing for severability; and providing an effective date. R. Consider adoption of an ordinance providing for acceptance of eligible non- annexation agreements for agricultural, wildlife management or timberland use properties within an area of land adjacent to and abutting the existing city limits of the City of Denton, Texas, generally identified as DH-4 of approximately 347 acres located on the east side of Bonnie Brae Street, west of Fort Worth Drive, east and west of Vintage Boulevard, and more specifically identified in Exhibit “A” attached hereto; providing for severability; and providing an effective date. S. Consider adoption of an ordinance providing for acceptance of eligible non- annexation agreements for agricultural, wildlife management or timberland use properties within an area of land adjacent to and abutting the existing city limits of the City of Denton, Texas, generally identified as DH-11 of approximately 388 acres located southeast of the intersection of Mayhill Road and McKinney Street, and more specifically identified in Exhibit “A” attached hereto; providing for severability; and providing an effective date. City of Denton City Council Agenda March 2, 2010 Page 6 T. Consider adoption of an ordinance providing for acceptance of eligible non- annexation agreements for agricultural, wildlife management or timberland use properties within an area of land adjacent to and abutting the existing city limits of the City of Denton, Texas, generally identified as PAA1 of approximately 1,171 acres located on the south side of Jim Christal Road, the north side of Tom Cole Road, west of Masch Branch Road, and more specifically identified in Exhibit “A” attached hereto; providing for severability; and providing an effective date. U. Consider adoption of an ordinance providing for acceptance of eligible non- annexation agreements for agricultural, wildlife management or timberland use properties within an area of land adjacent to and abutting the existing city limits of the City of Denton, Texas, generally identified as PAA2 south of approximately 1,472 acres located on the south side of FM 1173, north of W. University Drive, west of I-35, and more specifically identified in Exhibit “A” attached hereto; providing for severability; and providing an effective date. V. Consider adoption of an ordinance providing for acceptance of eligible non- annexation agreements for agricultural, wildlife management or timberland use properties within an area of land adjacent to and abutting the existing city limits of the City of Denton, Texas, generally identified as PAA3 of approximately 1,075 acres located on the south side of Ganzer Road, north and south of Barthold Road, north of FM 1173, west of I-35, and more specifically identified in Exhibit “A” attached hereto; providing for severability; and providing an effective date. W. Consider adoption of an ordinance providing for acceptance of eligible non- annexation agreements for agricultural, wildlife management or timberland use properties within an area of land adjacent to and abutting the existing city limits of the City of Denton, Texas, generally identified as PAA4 of approximately 1,555 acres located on the south side of Milam Road, north of Loop 288, east of I-35, and more specifically identified in Exhibit “A” attached hereto; providing for severability; and providing an effective date. 4.PUBLIC HEARINGS A. Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, amending the Denton Development Code by deleting Subsection 35.14.3.B., to remove the current exemption of required parking standards for development in the Central Business District; providing for severability, and providing an effective date (DCA10-0001). The Planning and Zoning A Commission recommends denial of the request (5-1). SUPERMAJORITY VOTE C . BYOUNCIL IS REQUIRED FOR APPROVAL B.Continuation of a public hearing and consider adoption of an ordinance of the City of Denton, Texas, providing for zoning change from a Neighborhood Residential 3 (NR-3) zoning district classification and use designation to a Neighborhood Residential Mixed Use 12 (NRMU-12) zoning district classification and use designation, with an overlay district; on approximately 15.3 acres of land located west of Stuart Road and approximately 600 feet northwest of City of Denton City Council Agenda March 2, 2010 Page 7 the intersection of Windsor Street and Stuart Road; and providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date (Z08-0016). The Planning and Zoning Commission recommends AC approval of the request (4-2). SUPERMAJORITY VOTE BY OUNCIL IS . REQUIRED FOR APPROVAL 5. ITEMS FOR INDIVIDUAL CONSIDERATION A.Consider adoption of an ordinance accepting competitive bids and awarding a public works contract for the construction of the Downtown Denton Transit Center to be located at 604 E. Hickory Street, Denton, Texas.; providing for the expenditure of funds therefor; and providing an effective date (Bid 4444–awarded to the lowest responsible bidder meeting specification, Corbet Group, Inc. in the amount of $1,736,000). B.Consider appointments to the following Boards and Commissions: 1. Construction Advisory and Appeals Board 2. Human Services Advisory Committee C. Citizen Reports 1. Review of procedures for addressing the City Council. 2. Receive citizen reports from the following: a. Bob Clifton regarding Fry Street. b. James Davenport regarding speed limit enforcement. D. 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. E. Possible Continuation of Closed Meeting under Sections 551.071-551.086 of the Texas Open Meetings Act. F. Official Action on Closed Meeting Item(s) under Sections 551.071-551.086 of the Texas Open Meetings Act. City of Denton City Council Agenda March 2, 2010 Page 8 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 ___________________, 2010 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: March 2, 2010 DEPARTMENT: Planning ACM: Fred Greene SUBJECT A10-0002 2010 Annexation Plan Receive a report, and hold a discussion regarding Annexation Plans to initiate the Involuntary Annexation of approximately 1,594 (ETJ), Division 1. The proposed annexation is in multiple ownerships, and consists of three (3) distinct areas, as presented in Exhibits 1, 2 and 3. The 3 areas are identified and generally located as follows: 1.DH-7: Approximately 143 acres, generally located on the east and north side of Teasley Lane, south of Teasley Harbor Subdivision and west of Southlake Drive; 2.DH-9: Approximately 298 acres, generally located north of Pockrus Page Road, north, south and northeast of Edwards Road; and 3.DH-12: Approximately 1,153 acres, generally located south of E. University Drive, east of N. Mayhill Road, north and south of Blagg Road, north and south of Mills Road, east and west of S. Trinity Road. BACKGROUND The City of Denton is currently considering the annexation of eighteen (18) areas totaling approximately 9,089 acres. In accordance with Texas Local Government Code (Tx.LGC) Section 43.052.(c), an annexation plan that specifically identifies rd annexations that may occur beginning on the third (3) anniversary of the date the annexation However, Tx.LGC 43.052.(h) provide exceptions to the Annexation Plan requirement contingent upon the following: (1)the area contains fewer than 100 separate tracts of land on which one or more residential dwellings are located on each tract; (2)the area will be annexed by petition of more than 50 percent of the real property owners in the area proposed for annexation or by vote or petition of the qualified voters or real property owners as provided by Subchapter B; (3)the area is or was the subject of: (A)an industrial district contract under Section 42.044; or (B)a strategic partnership agreement under Section 43.0751; (4)the area is located in a colonia, as that term is defined by Section 2306.581, Government Code; (5)the area is annexed under Section 43.026, 43.027, 43.029, or 43.031; (6)the area is located completely within the boundaries of a closed military installation; or (7)the municipality determines that the annexation of the area is necessary to protect the area proposed for annexation or the municipality from: (A)imminent destruction of property or injury to persons; or (B)a condition or use that constitutes a public or private nuisance as defined by background principles of nuisance and property law of this state. Fifteen (15) of the 18 areas comply with Tx.LGC 43.052.(h).(1) in that each area contains fewer than 100 separate tracts of land on which one or more residential dwellings are located on each tract. Therefore, they are excepted from the Annexation Plan requirement. However, staff finds that none of the aforementioned three (3) areas (DH-7, DH-9 and DH-12) qualify for any of the exceptions provided for in Tx.LCG 43.052.(h), therefore, these areas are subject to the Annexation Plan requirement. These 3 areas are identified in Exhibits 1-3. Effect of Amendments to Annexation Plan If the City desires to add areas to the Annexation Plan, the City may do so at any time per Tx.LGC § 43.052(e). However, if an area is added to the Annexation Plan, the area may not be rd annexed until on or after the third (3) anniversary of the date the plan was amended (Tx.LGC § 43.052(c)). The City may also amend the Annexation Plan to remove an area proposed for annexation; th however, if the area is removed before the 18 month after the month the area was included in the three-year annexation cycle, the City may not amend the Annexation Plan to include the affected area until one (1) year after the area was removed from the Annexation Plan. th Additionally, if an area is removed from the Annexation Plan during or after the 18 month after the month the area was included in the three-year annexation cycle, the City may not amend the nd Annexation Plan again to include the area until the second (2) anniversary of the date the City amended the Annexation Plan to remove the area (Tx.LGC § 43.052(e)). Three-Year Annexation Plan Process strd The annexation of DH-7, DH-9 and DH-12 must be completed before the 31 day after the 3 anniversary of the date the area is included in the annexation plan. If the annexation is not th completed by the deadline, the City may not annex the area before the fifth (5) anniversary of the last day for completing the annexation. This means that annexation could potentially not be th able to take place prior to the 8 year after the adoption of the Annexation Plan. In addition to the adoption of the Annexation Plan, the City must perform the annexation process mandated in Chapter 43 of the Tx.LGC. This process includes the following steps: 1.Provide written Notice of Intent to Annex; 2.Conduct Inventory of Services and Facilities; 3.Prepare Service Plan for the extension of full municipal services; 4.City Council conducts two (2) public hearings; Page - 2 5.Post notices of the public hearings; 6.Conduct negotiation for the provision of services; 7.Conduct Arbitration, if required; 8.The City Council passes the Annexation Ordinance (after two (2) readings; and 9.Proper post-annexation preclearance and notice is completed. Additional detail for each of the above steps is provided in Exhibit 4. SUMMARY In summary, prior to the annexation of DH-7, DH-9, or DH-12, the City must adopt an Annexation Plan for these areas. The Annexation Plan must be posted on the C website until the areas are annexed. Annexation of the identified areas may not take place until rd after the third (3) anniversary of the date the Annexation Plan is adopted; however, the strd annexation of areas must be completed before the 31 day after the 3 anniversary of the date the area was included in the annexation plan. EXHIBITS 1.Exhibit 1 Maps of Potential Annexation Area DH-7 2.Exhibit 2 Maps of Potential Annexation Areas DH-9 3.Exhibit 3 Maps of Potential Annexation Areas DH-12 4.Exhibit 4 Texas Local Government Code Section 43.052 5.Exhibit 5 3-Year Annexation Process Prepared by: Mark A. Cunningham, AICP Director, Planning and Development Dept. Respectfully submitted: Fred Greene Assistant City Manager Page - 3 EXHIBIT I Potential Annexation Area DH-7 Location: East and north side of Teasley Lane, south of Teasley Harbor Subdivision and west of Southlake Drive Acreage: Approximately 143 Page - 4 DH-7 Existing Land Use Map FREESE INIICHOLS ~I T 0Q 1,-1 Use A-, , , I P,~~„rls ~_r-a. i= ,,u~i-~. ~.s T I SII I'i I Fie[ lU Occupied Parcel Count and F FI I Existing Land Use 0 ^,nl,, t4T-~! F_ t I,Uc 0 `Liri-F C I, 0't ' -`l!~if City of Denton Texas Fl 11 Potential Annexation Area 7 Page - DH-7 Area Survey cf, Hickory Creek Rd. _ «lT 1~TT _ 6 L OC, 1 J LighthOUse Dr. Fl -hjc~a, rail_ DH 7 Fulton Dr. e~ther"'ood mmm 10 - ry____f I TeasleyLn---l t Page - 6 EXHIBIT 2 Potential Annexation Area DH-9 Location: North of Pockrus Page Road, north, south and northeast of Edwards Road Acreage: Approximately 298 i t L4 71 i i ti n i pp Page - 7 DH-9 Existing Land Use Map Occupied Parcel Count and Existing Land Use ~ i.ra, - r5 e -FA I City of Denton, Texas Potential Annexation = Area 9 Page - 8 DH-9 Area Survey c:> F 1 _ _ DH 9 Il~[~ 'r= t I r ,i - Edwards Rd. Li CrI~ z I - ~J - Page - 9 EXHIBIT 3 Potential Annexation Area DH-12 Location: South of E. University Drive, east of N. Mayhill Road, north and south of Blagg Road, north and south of Mills Road, east and west of S. Trinity Road Acreage: Approximately 1,153 Page - 10 DH-12 Existing Land Use Map FREESE rmI WHOLS r~ g i i Tob' 794 1, L.., L\3% i F F=-r i i Occupied Parcel Count and Existing Land Use City of Denton, Texas ~ Potential Annexation Area 12 Page - 11 DH-12 Area Survey { f 1 1~I1I1, « i~-- -l1- - 1 I ~F! 4 i1 Y - - 4 . - Lj ~i Page - 12 EXHIBIT 4 § 43.052. Municipal Annexation Plan Required. (a)In this section, "special district" means a municipal utility district, water control and improvement district, or other district created under Section 52, Article III, or Section 59, Article XVI, Texas Constitution. (b)A municipality may annex an area identified in the annexation plan only as provided by this section. (c)A municipality shall prepare an annexation plan that specifically identifies annexations rd that may occur beginning on the third (3) anniversary of the date the annexation plan is adopted. The municipality may amend the plan to specifically identify annexations that may occur beginning on the third anniversary of the date the plan is amended. (d)At any time during which an area is included in a municipality's annexation plan, a municipal utility district or other special district that will be abolished as a result of the annexation, excluding an emergency services district, in which the area is located may not without consent of the municipality: (1)reduce the tax rate applicable to the area if the amount that would remain in the debt service fund after the reduction and after subtracting the amount due for debt service in the following year is less than 25 percent of the debt service requirements for the following year; (2)voluntarily transfer an asset without consideration; or (3)enter into a contract for services that extends beyond the three-year annexation plan period other than a contract with another political subdivision for the operation of water, wastewater, and drainage facilities. (e)A municipality may amend its annexation plan at any time to remove an area proposed for annexation. If, before the end of the 18th month after the month an area is included in the three-year annexation cycle, a municipality amends its annexation plan to remove the area, the municipality may not amend the plan to again include the area in its annexation plan until the first anniversary of the date the municipality amended the plan to remove the area. If, during or after the 18 months after the month an area is included in the three- year annexation cycle, a municipality amends its annexation plan to remove the area, the municipality may not amend the plan to again include the area in its annexation plan until the second anniversary of the date the municipality amended the plan to remove the area. th (f)Before the 90 day after the date a municipality adopts or amends an annexation plan under this section, the municipality shall give written notice to: (1)each property owner in the affected area, as indicated by the appraisal records furnished by the appraisal district for each county in which the affected area is located, that the area has been included in or removed from the municipality's annexation plan; (2)each public entity, as defined by Section 43.053, or private entity that provides services in the area proposed for annexation; and Page - 13 (3)each railroad company that serves the municipality and is on the municipality's tax roll if the company's right-of-way is in the area proposed for annexation. (g)If an area is not removed from the municipality's annexation plan, the annexation of the strd area under the plan must be completed before the 31 day after the third (3) anniversary of the date the area was included in the annexation plan. If the annexation is not completed within the period prescribed by this subsection, the municipality may not th annex the area proposed for annexation before the fifth (5) anniversary of the last day for completing an annexation under this subsection. (h)This section does not apply to an area proposed for annexation if: (4)the area contains fewer than 100 separate tracts of land on which one or more residential dwellings are located on each tract; (5)the area will be annexed by petition of more than 50 percent of the real property owners in the area proposed for annexation or by vote or petition of the qualified voters or real property owners as provided by Subchapter B; (6)the area is or was the subject of: (C)an industrial district contract under Section 42.044; or (D)a strategic partnership agreement under Section 43.0751; (5)the area is located in a colonia, as that term is defined by Section 2306.581, Government Code; (8)the area is annexed under Section 43.026, 43.027, 43.029, or 43.031; (9)the area is located completely within the boundaries of a closed military installation; or (10)the municipality determines that the annexation of the area is necessary to protect the area proposed for annexation or the municipality from: (A).imminent destruction of property or injury to persons; or (B).a condition or use that constitutes a public or private nuisance as defined by background principles of nuisance and property law of this state. (i)A municipality may not circumvent the requirements of this section by proposing to separately annex two or more areas described by Subsection (h)(1) if no reason exists under generally accepted municipal planning principles and practices for separately annexing the areas. If a municipality proposes to separately annex areas in violation of this section, a person residing or owning land in the area may petition the municipality to include the area in the municipality's annexation plan. If the municipality fails to take action on the petition, the petitioner may request arbitration of the dispute. The petitioner must request the appointment of an arbitrator in writing to the municipality. Sections 43.0564(b), (c), and (e) apply to the appointment of an arbitrator and the conduct of an arbitration proceeding under this subsection. Except as provided by this subsection, the municipality shall pay the cost of arbitration. If the arbitrator finds that the petitioner's request for arbitration was groundless or requested in bad faith or for the purposes of harassment, the arbitrator shall require the petitioner to pay the costs of arbitration. Page - 14 (j)If a municipality has an Internet website, the municipality shall: (1)post and maintain the posting of its annexation plan on its Internet website; (2)post and maintain the posting on its Internet website of any amendments to include an area in its annexation plan until the date the area is annexed; and (3)post and maintain the posting on its Internet website of any amendments to remove an area from its annexation plan until the date the municipality may again include the area in its annexation plan. (k)Notwithstanding the restrictions imposed by Subsection (e) and (g), under an agreement described by Section 43.0563, a municipality may annex an area for full or limited purposes at any time on petition of the owner of the area the annexation is the area: (1)I (2) Subsection (e). Page - 15 EXHIBIT 5 3-Year Annexation Process Activity Due By Notes Tx.LGC 1.Prepare 3-year Prior to conducting the The Plan covers DH 7, 9 43.052 Annexation Plan.Inventory of Services and and 12; and must be Facilities. internet until the areas are annexed. 43.052.(j) th Notice 2.Provide written Prior to the 90 day after the Send notices to property 43.052.(f) of Intent to Annex.City adopts the Annexation owners, DISD, railroad Plan. companies, and public and private service providers. Notice to service providers must include information necessary to compile Inventory of Services and Facilities. 43.053.(c) The City must also provide the written notice to DISD within the 43.905 period prescribed for st publishing of the 1 public hearing. The notice must include any financial impact on the district that may result from the annexation and the city's proposal to limit the effects of that financial impact. Inventory of 3.Conduct After adopting the The information provided 43.053 Services and Facilities . Annexation Plan. must include the type of services provided, the method of service delivery, and all information prescribed by Subsections (e) and Page - 16 (f). Must be completed within 5 months after adopting the Annexation Plan. (Service providers are given 90 days to provide information to the City, and the City has 60 days to complete the inventory and make it available to the public) 43.053.(c) and (g) It is very important to Service Plan 4.Prepare Must be completed within 9 43.056 read this entire section to for the extension of full months after completing the determine (1) the timing municipal services.Inventory of Services and of service delivery, (2) Also see Texas Facilities. the level of service Attorney delivery, and (3) the required services to be opinions GA- delivered. 0459. The Service Plan may not provide for services in the annexed area that would reduce the level of fire, police and emergency medical services within the City. Second, the Service Plan must provide the area with a level of services comparable to or superior to the level of services available in other parts of the City with land uses and population densities similar to those reasonably contemplated or projected in the area. However, if the area had level of services equal to the services provided within the City, the Service Plan must maintain that same level of services. Finally, if Page - 17 the annexed area had level of services for maintaining the infrastructure of the area superior to the level of services provided within the City, the Service Plan must maintain the infrastructure of the annexed area at level of services that is equal or superior to the level of services previously enjoyed in the annexed area. th 5.City Council conducts Not later than the 90 day 43.0561.(a) public two (2) after the date the Inventory of hearings . Services is available to the public notices of the 6.Post Must be published at least Notice of the hearings 43.0561.(c) th public hearings.once on or after the 20 day must be published in the th but before the 10 day before Denton Record- the date of the hearing. Chronicle and posted on the City's internet website. Must give additional notice by certified mail to each public entity, utility service provider that provides services in the area proposed for annexation; and each railroad company that serves the City and is on the City's tax roll if the company's right-of-way is in the area proposed for annexation. nd negotiation for 7.Conduct After the 2 public hearing, Denton County 43.0562 services for the but before adoption of the provision of services. Annexation Ordinance. shall select 5 representatives to negotiate with the City Page - 18 for the provision of services. Arbitration 8., if required The request must be made in If the City and the 43.0564 writing to the other party representatives of the th before the 60 day after the area proposed for date the service plan is annexation cannot reach completed an agreement for the provision of services, either party by majority decision of the party's representatives may request the appointment of an arbitrator to resolve the service plan issues in dispute. If the City does not agree with the terms of the arbitrator's decision, the City may not annex the area th before the 5 anniversary of the date of the arbitrator's decision . passes 9.The City Council Must be completed before the If the annexation is not 43.052.(g) strd the Annexation 31 day after the 3 completed by the Ordinance . anniversary of the date the deadline, the City may area was included in the not annex the area before th annexation plan (adoption of the fifth 5 anniversary the annexation plan). of the last day for completing the This means annexation. 8 years from the adoption of the Annexation Plan . 10.Proper post-annexation 43.906 preclearance and notice is completed. Page - 19 ̸·­ °¿¹» ´»º¬ ¾´¿²µ ·²¬»²¬·±²¿´´§ò AGENDA INFORMATION SHEET AGENDA DATE : March 2, 2010 DEPARTMENT : Finance ACM: Jon Fortune SUBJECT Receive a report, hold a discussion, and give staff direction regarding possible revisions to utility  customer credit and collection policies. BACKGROUND During the summer of 2008, the Customer Service department participated in the management study conducted by Navigant Consulting. The results of the study provided an evaluation of the including procedures related to customer credit issuance and revenue collection. especially for a small utility. Contributing factors to the bad debt included a lack of effective customer credit screening, inadequate deposit policies, and ineffective collection efforts. Based on these findings, Navigant recommended that Utilities Customer Service revamp procedures to To assist with prompt implementation of these recommendations, Customer Service once again partnered with Navigant in July 2009. The goal of this collaborative effort was to introduce a strategy that bases collection activity on customer credit risk. By adhering to a risk based system, Customer Service can make processes easier for good paying customers and protect the City from bad debt associated with high risk customers. The proposed processes can be used to guide decision making when working with new, existing, and former customers. An essential part of the proposed process will be to ask customers to verify their identity and participate in a credit check when requesting new service. ch, will not negatively affect their credit rating. Based on the results of the credit check or previous payment history with the City, Customer Service employees will determine the appropriate deposit for each customer. After an account is established rating within the utility billing software. On time bill payment has a positive impact on the credit rating while poor payment habits will affect it negatively. This credit rating will then be used as the basis for reevaluating deposit coverage and determining the timing and type of collection action. Agenda Information Sheet March 2, 2010 Page 2 payment history, Customer Service will have the ability to provide a custom experience to the rding the strategies mentioned above is provided in the accompanying PowerPoint presentation. If the City Council is in agreement with the proposed strategy, staff will begin implementing the plan as outlined in the presentation. PRIOR ACTION/REVIEW (Council, Boards, Commissions) During the summer of 2008, the City Council and Public Utilities Board reviewed the Navigant Management Report prepared for Denton Municipal Electric. On January 26, 2009, a Customer Service strategy was presented to the Public Utilities Board. The Board recommended that staff proceed with the suggested strategy. On March 10, 2009, a Customer Service strategy was presented to the City Council. The City Council recommended that staff proceed with the suggested strategy. On February 22, 2010, the Public Utilities Board (PUB) discussed this issue and recommended, by a vote of 5-0, implementation of the proposed ordinance changes. In addition, the PUB requested that staff conduct further research regarding whether interest should continue to be credited to customer deposits. This information will be researched and discussed at subsequent meetings with the PUB and City Council. EXHIBITS 1.PowerPoint Presentation 2.2009 Navigant Report prepared for Customer Service 3.Redline version of Utility Customer Credit and Collections Ordinance Revisions (Proposed Ordinance presented for Council consideration as a consent agenda item on nd March 2 Agenda) Respectfully submitted: Bryan Langley Director of Finance Prepared by: Ethan Cox Customer Service Manager r v O O 4-j u O U a~ U O .,,mot 3;; r c~ O V O c~ QJ • 0 ®r-.' QJ . w QJ V O U0 O _ O 0 O 0 ~ 71. O 71 O W b-0 a) c~ tO Q.., bb u u w Ca 0 ~a 4-j u 4-j 4-j • s s c~ P4 P4 - i I. 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IN GENERAL Sec. 26-1. Assistant city manager - utilities. (a)Definition. As used in this chapter and wherever it may appear in this Code, the term assistant city manager - utilities or public utilities director shall mean the assistant city manager - utilities of the utilities department. (b)Appointment. The assistant city manager - utilities shall be appointed by the city manager subject to confirmation by the public utilities board. (c)Powers and duties. The assistant city manager - utilities shall have such powers and duties as may be provided by ordinance. (d)Mapping of systems. The assistant city manager - utilities shall prepare and maintain complete, up-to-date maps of the electric, sanitary sewerage and water systems of the city. (Code 1966, § 25-1; Ord. No. 2001-200, § 1, 5-15-01) Sec. 26-2. Right of entry. Employees of the utilities department shall have the authority to enter any house or premises at any reasonable time in the regular line of duty for the purpose of inspecting any water, electric or sewer line or any water or electric meter or for the purpose of making necessary repairs. If such entry is refused, the employee shall have recourse to every remedy provided by law to secure entry. (Code 1966, § 25-5) Cross references: Inspection and abatement warrants, § 19-86 et seq. State law references: Inspection warrants, Vernon's Ann. C.C.P. art. 18.05. Sec. 26-3. Service deposits and alternatives. A service deposit will be required unless the applicant provides one (1) of the exemptions as listed below (a)--(c). Employees of the utilities customer service department will determine the appropriate service deposit requirement based on the customer’s credit rating with the city utility system or by a reliable external credit source available to the city. (a)Residential customers. If a customer receiving residential service is required to make a deposit, the amount of the deposit shall be a minimum of one hundred fifty dollars ($150.00). If the customer has an unacceptable credit rating, the deposit may be as much as an amount equal to one-sixth of the last twelve (12) months billing at the service location or a similar location as determined by the utility representative. An alternative to the deposit is available if the customer meets one of the following criteria: (b)Residential exemption from deposit. No service deposit will be required of an applicant for residential utility service if the applicant can provide and qualify for one (1) of the following: (1) The applicant has an acceptable credit rating for twelve (12) consecutive months within the last two (2) years with eitherthe city utility system.or another electric utility company. If the service was with another utility,the applicant must provide the city with a letter of good credit for utility services from the former utility company for verification within twenty (20) days of applying for service. (2)The applicant provides a cosigner who accepts responsibility and is verified to have an acceptable credit rating with the city utility system, and who is willing to be listed on the account to guarantee payment of the applicant's utility bills. This guarantee will be in effect until the applicant develops an acceptable credit rating. (32) The customer receives an acceptable credit rating from a credit source available to the city. The customer must pay the cost of obtaining the credit rating. This cost will be set annually within the utility rate ordinance, but will not exceed one hundred dollars ($100.00). (3) Customers with little credit history or a fair credit rating may be allowed to provide one of the following alternatives in lieu of deposit: a.A signed letter of good standing for utility services from a former utility company for verification within twenty (20) days of applying for service; or b. The applicant provides a cosigner who accepts responsibility and is verified to have an acceptable credit rating with the city utility system, and who is willing to be listed on the applicant’s account to guarantee payment of the applicant's utility bills. This guarantee will be in effect until the applicant develops an acceptable credit rating and the cosigner requests removal from the account. For purposes of this chapter, "acceptable credit rating" shall mean a credit rating which is based upon a commonly used formula or a formula approved by the city council. (c)Commercial customers. In the case of commercial or industrial service, if the applicant for service is required to make a deposit, the amount of the deposit shall be a minimum of three hundred dollars ($300.00) or an amount equalup to one-sixth of the last twelve (12) months of billing at the location where service is requested, whichever is greater. If no previous history is available for the location, a representative facility similar to the type where service is requested will be used to establish the amount of the deposit. (d)Commercial exemption from deposit. An applicant for utility service for a commercial or industrial entity or business may not be required to make a deposit if the applicant: (1) Provides the city an acceptable commercial/industrial credit rating for the last twenty-four (24) months the customer received service from the city utility system; oror a commercial letter of good credit from another utility system. The period has to be within the three (3) years prior to the date of application. The letter of commercial letter of good credit from a former utility company must be received for verification within twenty (20) days of signing for service. Credit references from residential utility accounts are not accepted for exemptions of commercial/industrial deposits; or (2) The customer receives an acceptable credit rating from a credit source available to the city. The customer must pay the cost of obtaining the credit rating. This cost will be set annually within the utility rate ordinance, but will not exceed one hundred dollars ($100.00). (2 3) If the credit of a commercial/industrial customer for service has not been established satisfactorily to the city, the applicant may provide an irrevocable letter of credit in lieu of a deposit within twenty (20) days of signing for service. The irrevocable letter of credit must be executed by a Texas bank to the satisfaction of and must be approved bythe city manager and city attorney. The customer must maintain the irrevocable letter of credit in effect at all times. If the customer allows the irrevocable letter of credit to expire, the customer shall pay a deposit in the amount provided as listed above, or the city may terminate utility service. (Code 1966, § 25-4; Ord. No. 94-132, § I, 7-19-94; Ord. No. 2001-200, § 1, 5-15-01; Ord. No. 2002-316, § 1, 9-17-02) Sec. 26-4. Additional deposit required. (a)Additional deposits. The city may require a customer to make an additional deposit in the event that a deposit made as specified in subsection (a),or (b), (c), or (d) is subsequently determined to no longer be sufficient. In no event will the amount of the deposit exceed one-sixth of the last twelve (12) months billing at the service location. The city may disconnect service if the customer does not remit the additional deposit within fourteen (14) days of the city's request, provided a written disconnect notice has been issued. Such disconnect notice may be issued concurrently with the written request for the additional deposit. A customer may be required to pay a deposit or put down an additional deposit amount if: (1) The customer has been terminated from thereceipt of utility service due to non-payment of a utility bill; or (2) The city has determined there is evidence of a customer tampering with the city's meter; or (3) The customer has an unacceptable credit rating and the city does not have in its files a current cosigner who meets the requirements of section 26-3(a) or (b); or (4) The customer has been required to pay or is paying off a utility account balance previously deemed uncollectible or is past due; or (5)The customer has filed a petition for relief under the applicable provisions of the United States Bankruptcy Code; or (65) The customer's irrevocable letter of credit filed with the city in lieu of a deposit has expired. (b)Interest. The city shall pay interest on deposits at an annual rate established by city council. If a refund of the deposit is made within thirty (30) days of receipt of the deposit, no interest will be paid. If the deposit is retained more than thirty (30) days, payment of interest shall be retroactive to the date the entire amount of deposit has been made. The deposit shall cease to draw interest on the date it is returned or credited to the customer's account. Payment of the interest to the customer shall be made at the time the deposit is returned or credited to the customer's account. If the customer's account is active, the deposit will automatically be applied to the customer's account to offset current billing. If the amount remaining after the offset is greaterthan one-sixth of the annual billing amount due, the amount will be refunded by check to the customer. (c)Credit checks. After making application for service, the customer service department may at any time pursue a credit reference check. The customer will be given service promptly after application, but If the credit check shows the customer does not have an acceptable credit rating, the customer will be required toproduce a cosigner or place a deposit on the account. Failure to do so will result in the discontinuance of service with no less than two (2) days of notification given verbally or in writing, to the prospective customer by the customer service department. (Ord. No. 94-132, § I, 7-19-94; Ord. No. 2001-200, § 1, 5-15-01; Ord. No. 2002-316, § 1, 9-17- 02) Sec. 26-5. Refunds of deposits. The city shall refund deposits to applicants and customers if one of the following events occurs: (1) The customer's service has been disconnected. The city shall refund the deposit plus accrued interest less any outstanding balances. A transfer of service from one service location to another shall not be deemed a disconnection and the city shall not require an additional deposit unless authorized by section 26-3 or section 26-4 hereof. (2) When the customer has paid bills and avoided delinquent status for service for twelve (12) consecutive residential billings or twenty-four (24) consecutive commercial or industrial billings without having service disconnected for non- payment of bills, or meter tampering, and with no more than two (2) occasions each year in which a bill was delinquent, as provided by section 26-9(a), and provided the customer is not delinquent in the payment of the current bill. The city shall then, in that event, refund the deposit (plus accrued interest) to the customer in the form of a credit to the customer's account. The city may also release the customer's irrevocable letter of credit. (Ord. No. 94-132, § I, 7-19-94; Ord. No. 2001-200, § 1, 5-15-01; Ord. No. 2002-316, § 1, 9-17- 02) Sec. 26-6. Other fees. (a)Installation charge. A first service connection charge in an amount established by the city council and on file in the office of the city secretary will be charged to customers requesting electric service, where no permanent service previously existed and where a new account number is established. (b)Connection charge. A connection charge in an amount established by the city council and on file in the office of the city secretary will be charged to customers requesting water and/or electric service (c)Delinquent service charge, reconnect charge, and deposit. If water and/or electric utility service is processed for nonpayment, then the customer will be required to pay a delinquent service charge or reconnect charge in an amount established by the city council and on file in the office of the city secretary and establish and maintain a deposit sum up to but not greater than one-sixth of the last twelve (12) months' billings on billing at the location where service is requested. If a twelve (12) month history is not available, an estimated usage will be used to assess determine the deposit amount. (d)Unauthorized usage penalty. If a customer fails to request a water and/or electric connection within twenty-four (24) hours of occupancy in a new service location, then the customer will be required to pay an unauthorized usage penalty in an amount established by the city council and on file in the office of the city secretary. (e)Meter reading charge. If a customer requests a reading of a city meter due to a contested billing more than two (2) times in the previous twelve (12) months and if no error is found, the customer will be charged a meter reading charge. The meter reading charge will be in an amount established by the city council and on file in the office of the city secretary. (f)Meter testing charge. If a utility customer requests the testing of a city meter that was previously tested within the past four (4) years and the meter is found to be within accuracy standards, the customer will be charged a meter testing charge. The meter is defined as within accuracy standards when found to be plus or minus two (2) percent or less. This meter testing charge will be established by the city council and on file in the office of the city secretary. (g)Meter tampering and/or damage charge. A meter tampering charge will be required of any person that tampers with, damages, or illegally connects to any city electric, or water, or wastewater system. The meter tampering charge will be established by the city council and on file in the office of the city secretary. (h)Meter inaccessibility charge. A meter inaccessibility charge will be required of any customer that prevents the regular and routine reading or repair, maintenance or replacement of any city electric or water meter. The meter inaccessibility charge will be established by the city council and on file in the office of the city secretary. (i)Returned payment charge. If a customer has a check, money order, or bank draft that has been dishonored by the maker's bank and returned to the city as unpaid, the customer will be required to pay a returned payment charge in an amount established by the city council and on file in the office of the city secretary. (j)Late payment charge due on delinquent balances. A late payment charge will be assessed on past due balances on the fifth business day following the due date. The late payment charge will be established by the city council and on file in the office of the city secretary. (k)Interest charge on past due account balances. Interest shall be assessed on any past due account balance (excluding late payment charges) that remains unpaid prior to the current month's billing calculation. Interest shall be assessed based on the customer's monthly billing schedule and the due date of the customer's past due bill. The interest charge shall be due and payable on the due date of the current month's billing. The interest charge will be established by the city council and on file in the office of the city secretary. (l)Credit report charge Application fee.A credit report chargeAn application fee may be charged if the customer (a) cannot provide a satisfactory credit rating through previous service history with Denton Municipal Utilities.or another utility service; or (b) cannot provide the city with a qualified cosigner, and (c) provides written authorization for the city to obtain a credit rating from a credit source available to the city. The credit report chargeThe application fee will be established by the city council and will beon file in the office of the city secretary. (Ord. No. 94-132, § I, 7-19-94; Ord. No. 2001-200, § 1, 5-15-01; Ord. No. 2002-316, § 1, 9-17- 02) Sec. 26-7. Service prohibited to premises in violation of city ordinances. No utility service of the city or connection for such service shall be furnished or provided to any person engaged in the erection, construction, alteration or repair of any building or premises or any part thereof or engaged in the excavation or the laying of the foundation for any building or premises or part thereof where any part of such building or premises is being erected, constructed, altered or repaired in violation of any ordinance of the city. (Code 1966, § 25-2; Ord. No. 94-132, § III, 7-19-94) Sec. 26-8. Grounds for discontinuance of service. (a) The assistant city manager-utilities, or his designee, shall discontinue service to any person violating any provision of this chapter or any published rule or regulation of the utilities department, or of the city, until such violation has been corrected. (b) The assistant city manager-utilities, or his designee, shall discontinue service to any person found defrauding the utilities department by tampering with any water or electric line or meter. Service disconnected for any such reason shall not be restored until the assistant city manager-utilities, or his designee, is satisfied that all loss to the utilities department has either been repaid, or is financed for repayment, and that service may be restored without undue risk of further loss through such acts or nonpayment. (c) Subject to the approval of the city council manager, the assistant city manager- utilities, or his designee, shall discontinue service to any person found to be unreasonably wasting or diverting electricity or water. (d) Utility services may be terminated if payments become delinquent. The city may terminate services at any time upon delinquent status of an account. Once services are terminated, any deposit held by the city will be applied to the delinquent account when the final bill is generated. If the customer wishes to reconnect services, the customer will be required to pay a delinquent service charge or a reconnect charge and the remaining balance of the delinquent amount or at least fifty (50) percent with a signed legal an agreement to pay the remainder with three (3) consecutive equalmonthly installments. The city may refuse service and require payment in full, based on the credit history of the customer. For continued service, the city will require an additional deposit amount as described in 26-4. (Code 1966, § 25-3; Ord. No. 94-132, § III, 7-19-94; Ord. No. 2001-200, § 1, 5-15-01; Ord. No. 2002-316, § 1, 9-17-02) Sec. 26-9. Billing and collection for services. (a)Due date for payment of statements. The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. Payment must bereceived in the established utility services locationsposted to the customer’s account by close of business on the due date, in order to avoid assessment of a delinquent penalty. Payments placed in the mail and showing a postmark on the due date will not be considered as being received on the due date. In addition payments made through alternative sources such as, telephone, remote payment locations, drop box, or internet, will be accepted according to the terms established for those services. These payment requirements will be established by city council, and available in the office of the city secretary,made available on the customer’s utility bill, the city’s website, and posted at customer access points when possible. (b)Discontinuance of service for nonpayment. Each customer of the city's utility system who has not paid by the due date as noted on the billing, or according to finance agreements, is eligible for disconnect after the due date without further notificationupon two (2) days notice. (c)Notice of termination of services. A customer will be notified on his current utility statement that his service is eligible for disconnection if payment is not received by the terms stated on the current bill. The notice will inform the customer that he should remit payment immediately to avoid disconnection. Should the customercontact the utility customer service department within the ten (10) business a five (5) day period and prior to disconnection of utility services to present any evidence or argument concerning the statement or amount of utility service provided by the city., the customer will be required to pay any amounts not registered by the customer service department as under dispute by the due date. Any disputed items must be resolved within sixty (60) days of notification to utility customer service. The city will attempt to call the customer and provide a verbal warning of termination of services at least two (2) days prior to actual termination. (d)Alternatives to termination of service. A customer with a past due or delinquent balance may avoid termination of utility service by doing one (1) of the following: (1) Paying the total amount due by the specified due date; (2) Requesting a payment arrangement with the utility customer service department that will allow five (5) additional days beyond the scheduled disconnection date to make payment. A customer may apply for a payment arrangement no more than once every six (6) months. (2 3) Arranging with the utility customer service department for a short-term payment agreement that would require down payment of at least fifty (50) percent of the outstanding bill and payment of the remaining amount in not more than three (3) consecutive equal monthly payments. A customer may apply for a short- term payment agreement no more than once every six (6) months. (3)If the customer is unable to meet the requirements in subsection (d), (1) or (2), the customer may request to apply for financing under the utility account review committee criteria. Criteria will be reviewed and approved by this committee at least annually. This committee will be composed of the city manager, city attorney, assistant city manager of finance, and the assistant city manager of utilities. Additionally, one (1) citizen representative selected and appointed by the assistant city manager of utilities will serve as a nonvoting member of the committee. If committee members are unable to attend the meeting, they may send a designatedrepresentative in their place. The utility account review committee is authorized to develop the criteria for long-term financing beyond the three-month period but cannot extend repayment beyond twelve (12) months. Neither the utility customer service department nor the utility account review committee will have the authority to waive all or any portion of the utility statement owing to the city except when an error in billing has occurred. Finance charges will be applicable as determined by this ordinanceand the utility account review committee criteria. Once financing has been established using the review committee criteria, obligations must be met according to that agreement. No additional delinquency will be accepted. Failure to pay under the agreed-upon finance terms will require payment in full for continued services. (e)Certain adjustments prohibited. No adjustment will be made in any monthly bill because of any water or electric leak or loss, unless otherwise stated in this ordinance. No allowance shall be made on utility bills because of use of less service than the quantity set as the basis for the minimum charge. (f)Service meters required. Each customer maintaining a separate residence, either house or apartment, shall have a separate water meter and electric meter and a separate service connection to the city sewer lines; provided, however, that multiple dwellings containing less than four (4) units may be served by one (1) water and one (1) electric meter and one (1) sewer service connection and will be billed under the residential multiple block rate. Multiple dwellings containing four (4) or more units which do not have separate metering and service facilities shall be classified as commercial buildings for utility purposes and shall be billed under the applicable commercial rates. (g)Notice of service changes required. Any customer or prospective customer of the city utility system moving into or out of a building where electric, water, sewer or solid waste service is or will be provided, shall give a minimum of twenty-four (24) hours notice to the customer service department prior to the proposed date of connection or disconnection of utilities. If the customer fails to give proper notification for connection, he will be required to pay an unauthorized usage penalty and payment for services shall be prorated based on evidence provided by the customer or available to utility services and the amount billed will be due and payable by the customer. (h)Proration of utility bills. The billings for utilities consumption may be calculated on a thirty-day basis and prorated higher or lower for longer or shorter billing periods respectively. (i)Proration of customer facility charge. All monthly customer facility charges contained in this chapter shall be prorated higher or lower for billing periods longer or shorter than thirty (30) days, respectively. In such cases, the actual number of days in the reading period shall be divided by thirty (30) days, then multiplied by the net monthly charge to arrive at a customer facility charge. (j)Estimated billings and billing adjustments. The city may estimate active utility services for no more than two (2) consecutive billing periods. This estimate shall be considered the current month billing and must be paid accordingly. The city shall also have the right to provide billing adjustments, consisting of back-billing or back credits, on prior billings for a period up to, but no greater than two (2) years. These prior period billing adjustments must be based on actual meter readings, verifiable evidence, or proration based on actual readings. (k)Rejection of application for services. An application may be rejected if utility customer service has a record of previous past due accounts owing by the applicant and/or any occupant therein that will receive benefit of the services provided to the service location. The city has the option of requiring these amounts to be paid in full or transferring the amounts to the new service account. after a down payment, and financing of the remaining amount, not to exceed a period of three (3) months. (Code 1966, § 25-6; Ord. No. 94-132, §§ III, IV, 7-19-94; Ord. No. 2001-200, § 1, 5-15-01; Ord. No. 2002-316, § 1, 9-17-02) Sec. 26-10. Budget billing customer option. Any residential or local government utility customer of the city may request to be billed for electrical, water, sewer and/or sanitation services based upon an average billing amount. The eligibility and calculation criteria are as follows: (1)The customer shall request budget billing in accordance with the provisions of this section. The customer must have established residence and have a good credit history within the past six (6) months with the city. Budget billing will not be open for enrollment during the four (4) months preceding the settlement month, or 12-month, of the budget billing year. (2)The city may accept or deny the request based on the customer's credit history and circumstances as presented by the customer. Upon acceptance of the request, the city will compute the budget billing amount based on the last twelve (12) months of billing, and adjusted for any rate changes that would affect the budget billing calculation and as described in this subsection. The customer shall be billed this budget billing amount for the remaining months after approval of the application. On the settlement month, or twelfth billing month, the city will credit the customer's account for any accumulated amount in excess of the actual twelve (12) months' consumption. If the amount is greater than two (2) average monthly billings, the customer can request that the amounts be refunded, if requested prior to the due date of the credit. If the amount remaining represents an amount owed by the customer to the city, the customer shall have until the due date of the current billing to pay the additional amount due. The customer's account may be reviewed quarterly, and the budget billing amount may be adjusted based upon the current billings. (3)Monthly billing amount calculation. The city will compute the customer's monthly budget billing amount by totaling the billings for the services for the previous twelve (12) months. If twelve (12) months of billing history is not available, utility customer service may estimate the billing based upon the best available information. These budget billing averages can be adjusted to reflect any rate changes that would likely increase or decrease the average annual billing amount. These annual billing amounts will be divided by eleven (11) to produce estimated usages per month for the next twelve (12) months. (4)The city may provide budget billing for utility services based upon the customer's length of residence, credit history, and upon information provided by the customer. Upon approval, the customer's written or oral consent shall constitute a legal agreement between the customer and the city. The customer must comply with the terms of this section, the terms of the agreement, and the budget billing policies of the city. (5)Termination of budget billing services. Any late payment (payment received after the billing due date) of any budget billing which occurs more than twice in a twelve-month period shall be cause for discontinuation of budget billing. Any returned check will also constitute a reason for termination of this service. Such customer may not re-qualify for such program until the customer re-establishes at least six (6) months of qualifying payment history. After a second removal from the program, a customer may not re-qualify for such program until after the expiration of one (1) year and a consecutive six (6) months of qualifying payment history. (Code 1966, § 25-6.1; Ord. No. 94-132, § III, 7-19-94; Ord. No. 2001-200, § 1, 5-15-01; Ord. No. 2002-316, § 1, 9-17-02) Sec. 26-11. Electrical meters, electrical meter terminal boxes and supply conductors; water meters and water distribution mains and lines. (a) It shall be unlawful for any person, other than an officer or employee of the city within the department of electric utilities or fire department, to knowingly or intentionally: (1) Remove or cause to be removed any electrical meter owned by the city from any electrical meter terminal box; (2) Remove or cause to be removed the cover or any other part or portion from any such meter or terminal box or loosen or cause to be loosened any part or portion thereof; (3) Insert or cause to be inserted any foreign object or inject or cause to be injected any foreign substance into any such meter or terminal box; (4) Make or cause to be made any adjustment in the mechanism of any such meter; or (5) Tap onto or connect or cause to be tapped onto or connected any wire to the supply conductor of any such terminal box. (b) In the prosecution of any offense charged under subsection (a)(1) of this section, it shall be a complete defense to such offense if the person charged shows to the court by legal and competent evidence: (1) That such meter was removed for the purpose of protecting life or preserving property being immediately threatened by a hazard on the premises served by such; (2) That such meter was removed for the purpose of preventing a hazard to the structure served by it due to a short circuiting in the electrical conductor between the terminal box in which such meter was housed and a main line switch or fuse box; or (3) That such meter was removed by a duly licensed electrician to facilitate the repair of the defective electrical conductor or for checking the supply voltage and at a time when an employee of the city within the department of electric utilities was not available to remove such meter. (c) In the event of the removal of any electrical meter by a duly licensed electrician under the circumstances enumerated in subsection (b)(3) of this section, the fact of such removal and the circumstances permitting the removal must be reported to the superintendent of the electric distribution division of the department of electric utilities by such electrician not later than one (1) hour after the commencement of the workday of such municipal employee next following such removal. (d) Unless written permission is first obtained from the superintendent of the water distribution division of the department of utilities of the city, it shall be unlawful for any person, other than an officer or employee of the city within the department of utilities, to knowingly or intentionally: (1) Tap onto or connect or cause to be tapped onto or connected any pipe with any water distribution main or line owned by the city; (2) Disconnect or cause to be disconnected any such water meter from any such water distribution main or line owned by the city; (3) Remove or cause to be removed the cover from any such water meter; or (4) Disconnect or cut off the water service to a structure, dwelling or building. All meters, curb cocks, valves and meter boxes connected with the city water mains and service pipes, including those furnished at the expense of the consumers or property owners, shall remain under the direct control of the department of utilities, and it shall be unlawful for any person other than those licensed to do plumbing or those with special permission from the city utilities department to connect, disconnect, move or tamper with any such meter or to turn on or off the water at the curb cock, valve or meter box in any way except with a regulation meter brass key. No bypass or connection between the meter and the main shall be made, maintained or permitted except upon written permission from the department of utilities. (e) If any such water meter is found to have been removed, if the cover or any part or portion of any such meter or terminal box is found to have been removed, if any part or portion thereof is found to have been loosened, if any foreign object is found to have been inserted or any foreign substance is found to have been injected into any such meter or terminal box, if any adjustment is found to have been made in the mechanism of any such meter, if any wire has been found to have been tapped onto or connected to the supply conductor of any such terminal box, if any pipe is found to have been tapped onto or connected with any such water distribution main or line, if any such water meter is found to have been disconnected from any such water distribution main or line or if there is the finding at any time of any fact, circumstance or condition on or about any such electrical meter, terminal box, conductor, water meter or water distribution main or line tending to show or evidencing that any such act has been committed or performed in violation of any portion or provision of this section, the fact, circumstance or condition shall be and constitute prima facie evidence and a rebuttable evidentiary presumption of knowledge on the part of the person having subscribed for electric or water service through any such electric or water meter or the person having the custody, control or management of the building, room or place for which such subscription is made of the performance or commission of any such act prohibited under the terms and provisions of this section that such subscriber or other person performed or committed such act or caused or occasioned the performance or commission of the act and shall bring such subscriber or other person prima facie within the scope, meaning and penalties of this chapter. (Code 1966, §§ 17-11, 25-8; Ord. No. 94-132, § III, 7-19-94) Secs. 26-12--26-35. Reserved. AGENDA INFORMATION SHEET AGENDA DATE: March 2, 2010 DEPARTMENT: Economic Development/Downtown Development CM: George C. Campbell SUBJECT Consider adoption of an ordinance of the City Council of the City of Denton, Texas, approving a grant application from Achava and Kanda Boonumpaichaiyakui from the Downtown Incentive Grant Program not to exceed $5,000; and providing for an effective date. (The Economic Development Partnership Board recommends approval 5-0) BACKGROUND Applicant: Achava and Kanda Boonumpaichaiyakui Denton, Texas City Council approved the Downtown Incentive Reimbursement Grant Program on April 3, 2007, and allocated $50,000 to fund the program for fiscal year 2009-2010. Two grants have been approved in FY 2009-2010, for a total of $28,000, leaving $22,000 unencumbered. PROJECT: This rehabilitation project entails signage and impact fees. REQUEST: The applicant requested $8,649.43. The Downtown Task Force and Economic Development Partnership Board recommended a grant of $5,000 to City Council; the cost of the total project is approximately $140,000. ELIGIBILTY: This project is eligible under the following criteria: Project compliance with all current building standards Design quality Compatibility of design in relation to other buildings Project compatibility with streetscape objectives Project compatibility in relation to Downtown Development goals Proximity to Courthouse-on-the-Square PRIOR ACTION The Downtown Development Task Force reviewed the application on January 12, 2010 and recommended a grant in the amount of $5,000 to the Economic Development Partnership Board. The Economic Development Partnership Board reviewed the application on February 2, 2010 and recommends approval 5-0. 1 EXHIBITS 1. Ordinance 2. Grant agreement 3. Exhibit A -Legal Description 4. Exhibit B - Grant Application 5. Ariel map of property Prepared by Julie Glover Economic Development Program Administrator Respectfully submitted: 1 r , Linda Ratliff Director of Economic Development off r 1 t o; cam,`\/ rz: ts F bi I ~Gi 221 E. HICKORY STREET D E NTO N T 76201 1 ' r. T PE E- , w: T 1-1 1 - i ~ I J r f , ~ f I ' I • I I f ~ ~ E 4 L) f ~ I 'w ~ Y ~ ~ i , j \ ~vr F I ' V ~ Y ~ l ~ f 1 L ~ im Y' ~ ~ '~i.:"'. J M~ I ~ w ~ ' I ~ 4 r ~ I ~ . b' Pt I..., , ~ , d.), . ^ ~ `d' la ~ w i-- 1 J ~ l ~ ...M ~ I~~~ I-••~ ,r I ~ P 1- ~ . ` 9~,,,~ ~ ~ r .a... t : _ , '"I ~ L~1 I I ~ n.:.. ~ ~ ~`Y i". 'j T ry r, 44 p i'v` r _I T~ t `a L. c i. I v1 , f~ { r r- ~•~,1T y ..~A1~ VI~1 ~ P~ t. a ~r G~~ 55~'~r ~yy~++ ah 1~ ,;r'f iiW, i1t~ +4. f t `{Pg'99 AP ' 1q Y, ]f i L y~ f 11r 9 t ~.ryIII ~ t jpt~ a: r1 \ ~ r ~ i h 4~J'~1~ ~5~ ■ Aw Ir p '_tx r t b f2 , r~ f y ~ti4 ss a t~~" "J 4 ti T f Ysr µd ~ It 4 7. ~ rS P Y , Rsf ' j 1~ t A S" J f # VW1 j a' . i ilk, Nf ` yi -h k,' ~`i AGENDA INFORMATION SHEET AGENDA DATE: March 2, 2010Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Jim Coulter 349-7194 ACM: Jon Fortune SUBJECT Consider adoption of an ordinance accepting competitive bids and awarding an annual contract for the purchase of water treatment chemicals for the City of Denton Water Treatment Plants; providing for the expenditure of funds therefor; and providing an effective date (Bid 4456- Annual Contract for Water Treatment Chemicals awarded to the lowest responsible bidder for each item in the annual estimated amount of $800,000). The Public Utilities Board recommends approval (5-0). BID INFORMATION This bid is for the annual contract to supply water treatment chemicals for the water production and wastewater treatment process. The chemicals are delivered in bulk quantities to on-site storage facilities. RECOMMENDATION Award to the lowest responsible bidder for each item as listed below: Item Description Price Vendor DPC INDUSTRIES LIQUID CHLORINE, NSF 60 CERTIFIED $0.3145/LB 1 (ONE TON) INC. DPC INDUSTRIES LIQUID CHLORINE, NSF 60 CERTIFIED $0.3185/LB 2 (BULK) INC. PETRA CHEMICAL $0.0482/LB 3 SODIUM HYPOCHLORITE COMPANY HARCROS FLUROSILICIC ACID, $0.3475/LB 4 CHEMICALS, INC. NSF 60 CERTIFIED KA STEEL LIQUID CAUSTIC SODA $0.1454/LB 5 NSF 60 CERTIFIED CHEMICALS, INC. $3.1300/LB 6 UNIVAR USA POTASSIUM PERMANGANATE AIRGAS SPECIALTY ANHYDROUS AMMONIA, $0.4800/LB 7 PRODUCTS NSF 60 CERTIFIED $0.6300/LB 8 CIBA CORPORATION CATIONIC POLYMER, NSF 60 CERTIFIED $.0326/LB 10 PRAXAIR LIQUID OXYGEN Agenda Information Sheet March 2, 2010 Page 2 RECOMMENDATION(CONTINUED) In reference to bid Item 5, FSTI Inc. may appear to have submitted a lower bid, but they bid wet pounds instead of bidding on a dry weight basis, therefore their bid did not meet specifications. The lowest responsible bidder that did meet specifications is KA Steel Chemicals, Inc. The lower bids submitted by American International Chemical, Inc. and Chemrite, Inc. for Item 6 did not meet specification regarding free flow grade. The lowest responsible bidder that did meet specifications is Univar USA. Item 9 had conflicting specifications in the bid document and will not be awarded at this time. PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS) The Public Utilities Board approved this item at its February 22, 2010 meeting. PRINCIPAL PLACE OF BUSINESS DPC Industries Inc. Univar USA Petra Chemical Company Cleburne, TX Dallas, TX Dallas, TX Harcros Chemicals, Inc. KA Steel Chemicals, Inc. Ciba Corporation Dallas, TX Lemont, IL Suffolk, VA Airgas Specialty Products Praxair Lawrenceville, GA Burr Ridge, IL ESTIMATED SCHEDULE OF PROJECT This is an annual contract with the option to renew for additional one-year periods contingent upon all prices, terms, and conditions remaining the same. Delivery of individual chemicals varies from two days to two weeks and will be ordered as needed. FISCAL INFORMATION Funding for these water treatment chemicals will come from account 630100.6334. Individual purchase orders will be issued as needed. EXHIBITS Exhibit 1: Bid Tabulation Respectfully submitted: _________________________________ Tom Shaw, C.P.M., 349-7100 Purchasing Agent 1-AIS-Bid 4456 ORDINANCE NO. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING AN ANNUAL CONTRACT FOR THE PURCHASE OF WATER TREATMENT CHEMICALS FOR THE CITY OF DENTON WATER TREATMENT PLANTS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (BID 4456-ANNUAL CONTRACT FOR WATER TREATMENT CHEMICALS AWARDED TO THE LOWEST RESPONSIBLE BIDDER FOR EACH ITEM IN THE ANNUAL ESTIMATED AMOUNT OF $800,000). WHEREAS, the City has solicited, received and tabulated competitive bids for the purchase of necessary materials, equipment, supplies or services in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described bids are the lowest responsible bids for the materials, equipment, supplies or services as shown in the "Bid Proposals" submitted therefor; and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds to be used for the purchase of the materials, equipment, supplies or services approved and accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The numbered items in the following numbered bids for materials, equipment, supplies, or services, shown in the "Bid Proposals" on file in the office of the City Purchasing Agent, are hereby accepted and approved as being the lowest responsible bids for such items: BID ITEM NUMBER NO VENDOR AMOUNT 4456 1-2 DPC Industries Inc. Exhibit A 4456 3 Petra Chemical Company Exhibit A 4456 4 Harcros Chemicals, Inc. Exhibit A 4456 5 KA Steel Chemicals, Inc. Exhibit A 4456 6 Univar USA Exhibit A 4456 7 Airgas Specialty Products Exhibit A 4456 8 Ciba Corporation Exhibit A 4456 10 Praxair Exhibit A SECTION 2. By the acceptance and approval of the above numbered items of the submitted bids, the City accepts the offer of the persons submitting the bids for such items and agrees to pur- chase the materials, equipment, supplies or services in accordance with the terms, specifications, standards, quantities and for the specified sums contained in the Bid Invitations, Bid Proposals, and related documents.   SECTION 3. Should the City and the winning bidder(s) wish to enter into a formal written agreement as a result of the acceptance, approval, and awarding of the bids, the City Manager or his designated representative is hereby authorized to execute a written contract in accordance with the terms, conditions, specifications, standards, quantities and specified sums contained in the Bid Proposal and related documents and to extend that contract as determined to be advantageous to the City of Denton. SECTION 4. By the acceptance and approval of the above enumerated bids, the City Council hereby authorizes the expenditure of funds therefor in the amount and in accordance with the approved bids. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this day of 12010. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: 3-ORD-4456 DRAFT MINUTES 1 2 PUBLIC UTILITIES BOARD 3 February 22, 2010 4 5 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was 6 present, the Chair of the Public Utilities Board thereafter convened into an Open meeting on 7 Monday, February 22, 2010 at 9:02 a.m. in the Service Center Training Room, City of Denton 8 Service Center, 901-A Texas Street, Denton, Texas 9 Present 10 : Chair Dick Smith, Bill Cheek, Phil Gallivan, Randy Robinson and Bill Grubbs 11 12 Ex Officio Members: 13 George C. Campbell, City Manager 14 Howard Martin, ACM Utilities 15 Absent 16 : John Baines and Barbara Russell, both excused 17 OPEN MEETING: 18 19 CONSENT AGENDA: 20 21 22 has had an opportunity to raise questions regarding these items prior to consideration. 23 24 2)Consider a recommendation of approval of competitive bids and awarding an annual contract 25 for the purchase of water treatment chemicals (Bid 4456Water Treatment Chemicals 26 awarded to the lowest responsible bidder in the total estimated amount of $800,000). 27 Board Member Cheek moved to approve Item 2 with a second from Board Member 28 Robinson. The motion was approved by a 5-0 vote 29 . 30 31 The meeting was adjourned by consensus at 10:20 a.m. 32 AGENDA INFORMATION SHEET AGENDA DATE: March 2, 2010Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to John Knight 349-8333 ACM: Jon Fortune SUBJECT Consider adoption of an ordinance rejecting any and all competitive bids for a public works contract for the construction of a 36 inch, 42 inch and 48 inch sewer line for the City of Denton (Bid Number 4457); and providing an effective date. BID INFORMATION The Engineering staff and the City Council have determined that it is in the best interest of the City to reject all bids received on Bid 4457. RECOMMENDATION Reject all bids submitted. ESTIMATED SCHEDULE OF PROJECT New bid specifications will be advertised and distributed contingent upon Council rejecting all bids currently submitted. FISCAL INFORMATION No impact. EXHIBITS Exhibit 1: Ordinance Rejecting Bids Respectfully submitted: Tom Shaw, C.P.M., 349-7100 Purchasing Agent 1-AIS-Bid 4457 ̸·­ °¿¹» ´»º¬ ¾´¿²µ ·²¬»²¬·±²¿´´§ò CITY OF DENTON CITY COUNCIL MINUTES February 9, 2010 After determining in Open Session that a quorum was present, the City Council convened in a Closed Session on Tuesday, February 9, 2010 at 3:00 p.m. in the Council Work Session Room at City Hall. PRESENT: Mayor Burroughs, Mayor Pro Tem Kamp, Council Member Engelbrecht, Council Member Gregory, Council Member Heggins, Council Member Mulroy and Council Member Watts. ABSENT: None 1. Closed Meeting: A. Consultation with Attorneys - Under Texas Government Code, Section 551.071. 1. Consultation, discussion, deliberation, and receipt of information from the city’s attorneys involving legal matters relating to possible annexations of property into the City of Denton where public discussion of these legal matters would clearly conflict with the duty of the City’s attorneys to the City of Denton and the Denton City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. B. 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 or DCTA, the limits of said corridor being all that certain lot, tract or parcel of land described in that certain Quitclaim Deed from Missouri Pacific Railroad Company to the City of Denton, Texas, dated August 9, 1993, and filed on August 24, 1993, as Clerk No 93-R0058485 in the Real Property Records of Denton County, Texas; and also being that same property described in that certain Correction Quitclaim Deed, dated June 1, 2001 and filed for record in the Real Property Records of Denton County, Texas as Volume 4857, Page 020211 where such deliberation in an open meeting would have a detrimental effect on the position of the City Council in negotiations with DART or 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. Following the completion of the Closed Session, the Council convened in a Special Called Meeting at 4:00 p.m. in the City Council Chambers to consider the following: A. Consider adoption of the following ordinances: City of Denton City Council Minutes February 9, 2010 Page 2 First Reading 1. An ordinance annexing an area of land to the City of Denton, Texas, generally identified as DH-6 of approximately 9 acres located on the east side of Teasley Lane, north of Hickory Creek Road, west of Lipizzan Court, more specifically identified in Exhibit "A" attached hereto, which area is adjacent to and abuts the existing city limits of the City of Denton, Texas, and which contains fewer than 100 separate tracts of land on which one or more residential dwellings are located on each tract; providing for inclusion of a service plan in this ordinance; providing for correction of the city map to include this annexed area; providing a savings clause; and providing an effective date. (First Reading) Council Member Mulroy motioned, Mayor Pro Tem Kamp seconded to adopt the ordinance. On roll call vote, Council Member Watts "aye", Mayor Pro Tem Kamp "aye", Council Member Mulroy "aye", Council Member Gregory "aye", Mayor Burroughs "aye", Council Member Engelbrecht "aye", and Council Member Heggins "aye". Motion carried unanimously. First Reading 2. An ordinance annexing an area of land to the City of Denton, Texas, generally identified as DH-8 of approximately 29 acres located west of Old Edwards Road, north and south of Edwards Road, more specifically identified in Exhibit "A" attached hereto, which area is adjacent to and abuts the existing city limits of the City of Denton, Texas, and which contains fewer than 100 separate tracts of land on which one or more residential dwellings are located on each tract; providing for inclusion of a service plan in this ordinance; providing for correction of the city map to include this annexed area; providing a savings clause; and providing an effective date. (First Reading) Council Member Mulroy motioned, Council Member Gregory seconded to adopt the ordinance. On roll call vote, Council Member Watts "aye", Mayor Pro Tem Kamp "aye", Council Member Mulroy "aye", Council Member Gregory "aye", Mayor Burroughs "aye", Council Member Engelbrecht "aye", and Council Member Heggins "aye". Motion carried unanimously. First Reading 3. An ordinance annexing an area of land to the City of Denton, Texas, generally identified as DH-13 of approximately 16 acres located on the west side of the intersection of North Locust Street and Bobcat Road, south of Chaparral Road, more specifically identified in Exhibit "A" attached hereto, which area is adjacent to and abuts the existing city limits of the City of Denton, Texas, and which contains fewer than 100 separate tracts of land on which one or more residential dwellings are located on each tract; providing for inclusion of a service plan in this ordinance; providing for correction of the city map to include this annexed area; providing a savings clause; and providing an effective date. (First Reading) Mayor Pro Tem Kamp motioned, Council Member Engelbrecht seconded to adopt the ordinance. On roll call vote, Council Member Watts "aye", Mayor Pro Tem Kamp "aye", Council Member Mulroy "aye", Council Member Gregory "aye", Mayor Burroughs "aye", Council Member Engelbrecht "aye", and Council Member Heggins "aye". Motion carried unanimously. City of Denton City Council Minutes February 9, 2010 Page 3 First Reading 4. An ordinance annexing an area of land to the City of Denton, Texas, generally identified as DH-10 of approximately 87 acres located on the south side of East McKinney, east and west of Lakey Circle, and more specifically identified in Exhibit "A" attached hereto, which area is adjacent to and abuts the existing city limits of the City of Denton, Texas, and which contains fewer than 100 separate tracts of land on which one or more residential dwellings are located on each tract; providing for inclusion of a service plan in this ordinance; providing for correction of the city map to include this annexed area; providing a savings clause; and providing an effective date. (First Reading) Council Member Watts motioned, Council Member Gregory seconded to adopt the ordinance. On roll call vote, Council Member Watts "aye", Mayor Pro Tem Kamp "aye", Council Member Mulroy "aye", Council Member Gregory "aye", Mayor Burroughs "aye", Council Member Engelbrecht "aye", and Council Member Heggins "aye". Motion carried unanimously. Ordinance No. 2010-033 5. An ordinance providing for acceptance of eligible non-annexation agreements for agricultural, wildlife management or timberland use properties within an area of land adjacent to and abutting the existing city limits of the City of Denton, Texas, generally identified as DH-1 of approximately 315 acres located east of H. Lively Road, south side of FM 2449, west side of John Paine Road, and more specifically identified in Exhibit "A" attached hereto; providing for severability; and providing an effective date. (First Reading) Council Member Gregory motioned, Mayor Pro Tem Kamp seconded to adopt the ordinance. On roll call vote, Council Member Watts "aye", Mayor Pro Tem Kamp "aye", Council Member Mulroy "aye", Council Member Gregory "aye", Mayor Burroughs "aye", Council Member Engelbrecht "aye", and Council Member Heggins "aye". Motion carried unanimously. First Reading 6. An ordinance annexing an area of land to the City of Denton, Texas, generally identified as DH-1 of approximately 315 acres (less those parcels identified in Exhibit "C") located east of H. Lively Road, south side of FM 2449, west side of John Paine Road, and more specifically identified in Exhibit "A" attached hereto, which area is adjacent to and abuts the existing city limits of the City of Denton, Texas, and which contains fewer than 100 separate tracts of land on which one or more residential dwellings are located on each tract; providing for inclusion of a service plan in this ordinance; excluding properties within DH-1 subject to non-annexation agreements for agricultural, wildlife management or timberland use from the annexation; providing for correction of the city map to include this annexed area; providing a savings clause; and providing an effective date. (First Reading) Council Member Heggins motioned, Mayor Pro Tem Kamp seconded to adopt the ordinance. On roll call vote, Council Member Watts "aye", Mayor Pro Tem Kamp "aye", Council Member Mulroy "aye", Council Member Gregory "aye", Mayor Burroughs "aye", Council Member Engelbrecht "aye", and Council Member Heggins "aye". Motion carried unanimously. City of Denton City Council Minutes February 9, 2010 Page 4 Ordinance No. 2010-034 7. An ordinance providing for acceptance of eligible non-annexation agreements for agricultural, wildlife management or timberland use properties within an area of land adjacent to and abutting the existing city limits of the City of Denton, Texas, generally identified as DH-2 of approximately 258 acres located on the south side of University Drive, west and east sides of Thomas J. Egan Road, north of Jim Christal Road, west of Masch Branch Road, and more specifically identified in Exhibit "A" attached hereto; providing for severability; and providing an effective date. (First Reading) Council Member Gregory motioned, Council Member Watts seconded to adopt the ordinance. On roll call vote, Council Member Watts "aye", Mayor Pro Tem Kamp "aye", Council Member Mulroy "aye", Council Member Gregory "aye", Mayor Burroughs "aye", Council Member Engelbrecht "aye", and Council Member Heggins "aye". Motion carried unanimously. First Reading 8. An ordinance annexing an area of land to the City of Denton, Texas, generally identified as DH-2 of approximately 258 acres (less those parcels identified in Exhibit "C") located on the south side of University Drive, west and east sides of Thomas J. Egan Road, north of Jim Christal Road, west of Masch Branch Road, and more specifically identified in Exhibit "A" attached hereto, which area is adjacent to and abuts the existing city limits of the City of Denton, Texas, and which contains fewer than 100 separate tracts of land on which one or more residential dwellings are located on each tract; providing for inclusion of a service plan in this ordinance; excluding properties within DH-2 subject to non-annexation agreements for agricultural, wildlife management or timberland use from the annexation; providing for correction of the city map to include this annexed area; providing a savings clause; and providing an effective date. (First Reading) Mayor Pro Tem Kamp motioned, Council Member Heggins seconded to adopt the ordinance. On roll call vote, Council Member Watts "aye", Mayor Pro Tem Kamp "aye", Council Member Mulroy "aye", Council Member Gregory "aye", Mayor Burroughs "aye", Council Member Engelbrecht "aye", and Council Member Heggins "aye". Motion carried unanimously. Ordinance No. 2010-035 9. An ordinance providing for acceptance of eligible non-annexation agreements for agricultural, wildlife management or timberland use properties within an area of land adjacent to and abutting the existing city limits of the City of Denton, Texas, generally identified as DH-3 of approximately 421 acres located on the south side of Spring Side Road, north, south and west of Corbin Road, west of I-35, and more specifically identified in Exhibit "A" attached hereto; providing for severability; and providing an effective date. (First Reading) Claudia Lynch, 2585 Underwood Road, Denton, 76207 spoke in opposition. City of Denton City Council Minutes February 9, 2010 Page 5 Council Member Gregory motioned, Council Member Heggins seconded to adopt the ordinance. On roll call vote, Council Member Watts "aye", Mayor Pro Tem Kamp "aye", Council Member Mulroy "aye", Council Member Gregory "aye", Mayor Burroughs "aye", Council Member Engelbrecht "aye", and Council Member Heggins "aye". Motion carried unanimously. First Reading 10. An ordinance annexing an area of land to the City of Denton, Texas, generally identified as DH-3 of approximately 421 acres (less those parcels identified in Exhibit "C") located on the south side of Spring Side Road, north, south and west of Corbin Road, west of I-35, and more specifically identified in Exhibit "A" attached hereto, which area is adjacent to and abuts the existing city limits of the City of Denton, Texas, and which contains fewer than 100 separate tracts of land on which one or more residential dwellings are located on each tract; providing for inclusion of a service plan in this ordinance; excluding properties within DH-3 subject to non- annexation agreements for agricultural, wildlife management or timberland use from the annexation; providing for correction of the city map to include this annexed area; providing a savings clause; and providing an effective date. (First Reading) Council Member Mulroy motioned, Mayor Pro Tem Kamp seconded to adopt the ordinance. On roll call vote, Council Member Watts "aye", Mayor Pro Tem Kamp "aye", Council Member Mulroy "aye", Council Member Gregory "aye", Mayor Burroughs "aye", Council Member Engelbrecht "aye", and Council Member Heggins "aye". Motion carried unanimously. Ordinance No. 2010-036 11. An ordinance providing for acceptance of eligible non-annexation agreements for agricultural, wildlife management or timberland use properties within an area of land adjacent to and abutting the existing city limits of the City of Denton, Texas, generally identified as DH-4 of approximately 347 acres located on the east side of Bonnie Brae Street, west of Fort Worth Drive, east and west of Vintage Boulevard, and more specifically identified in Exhibit "A" attached hereto; providing for severability; and providing an effective date. (First Reading) Mayor Pro Tem Kamp motioned, Council Member Gregory seconded to adopt the ordinance. On roll call vote, Council Member Watts "aye", Mayor Pro Tem Kamp "aye", Council Member Mulroy "aye", Council Member Gregory "aye", Mayor Burroughs "aye", Council Member Engelbrecht "aye", and Council Member Heggins "aye". Motion carried unanimously. First Reading 12. An ordinance annexing an area of land to the City of Denton, Texas, generally identified as DH-4 of approximately 347 acres (less those parcels identified in Exhibit "C") located on the east side of Bonnie Brae Street, west of Fort Worth Drive, east and west of Vintage Boulevard, and more specifically identified in Exhibit "A" attached hereto, which area is adjacent to and abuts the existing city limits of the City of Denton, Texas, and which contains fewer than 100 separate tracts of land on which one or more residential dwellings are located on each tract; providing for inclusion of a service plan in this ordinance; excluding properties within DH-4 subject to non- annexation agreements for agricultural, wildlife management or timberland use from City of Denton City Council Minutes February 9, 2010 Page 6 the annexation; providing for correction of the city map to include this annexed area; providing a savings clause; and providing an effective date. (First Reading) Council Member Mulroy motioned, Council Member Engelbrecht seconded to adopt the ordinance. On roll call vote, Council Member Watts "aye", Mayor Pro Tem Kamp "aye", Council Member Mulroy "aye", Council Member Gregory "aye", Mayor Burroughs "aye", Council Member Engelbrecht "aye", and Council Member Heggins "aye". Motion carried unanimously. Ordinance No. 2010-037 13. An ordinance providing for acceptance of eligible non-annexation agreements for agricultural, wildlife management or timberland use properties within an area of land adjacent to and abutting the existing city limits of the City of Denton, Texas, generally identified as DH-5 of approximately 307 acres located on the east side of Fort Worth Drive, west side of Country Club Drive, north of Brush Creek Road, and more specifically identified in Exhibit "A" attached hereto; providing for severability; and providing an effective date. (First Reading) Council Member Heggins motioned, Mayor Pro Tem Kamp seconded to adopt the ordinance. On roll call vote, Council Member Watts "aye", Mayor Pro Tem Kamp "aye", Council Member Mulroy "aye", Council Member Gregory "aye", Mayor Burroughs "aye", Council Member Engelbrecht "aye", and Council Member Heggins "aye". Motion carried unanimously. First Reading 14. An ordinance annexing an area of land to the City of Denton, Texas, generally identified as DH-5 of approximately 307 acres (less those parcels identified in Exhibit "C") located on the east side of Fort Worth Drive, west side of Country Club Drive, north of Brush Creek Road, and more specifically identified in Exhibit "A" attached hereto, which area is adjacent to and abuts the existing city limits of the City of Denton, Texas, and which contains fewer than 100 separate tracts of land on which one or more residential dwellings are located on each tract; providing for inclusion of a service plan in this ordinance; excluding properties within DH-5 subject to non- annexation agreements for agricultural, wildlife management or timberland use from the annexation; providing for correction of the city map to include this annexed area; providing a savings clause; and providing an effective date. (First Reading) Council Member Mulroy motioned, Council Member Engelbrecht seconded to adopt the ordinance. On roll call vote, Council Member Watts "aye", Mayor Pro Tem Kamp "aye", Council Member Mulroy "aye", Council Member Gregory "aye", Mayor Burroughs "aye", Council Member Engelbrecht "aye", and Council Member Heggins "aye". Motion carried unanimously. Ordinance No. 2010-038 15. An ordinance providing for acceptance of eligible non-annexation agreements for agricultural, wildlife management or timberland use properties within an area of land adjacent to and abutting the existing city limits of the City of Denton, Texas, generally identified as DH-11 of approximately 388 acres located southeast of the City of Denton City Council Minutes February 9, 2010 Page 7 intersection of Mayhill Road and McKinney Street, and more specifically identified in Exhibit "A" attached hereto; providing for severability; and providing an effective date. (First Reading) Council Member Gregory motioned, Mayor Pro Tem Kamp seconded to adopt the ordinance. On roll call vote, Council Member Watts "aye", Mayor Pro Tem Kamp "aye", Council Member Mulroy "aye", Council Member Gregory "aye", Mayor Burroughs "aye", Council Member Engelbrecht "aye", and Council Member Heggins "aye". Motion carried unanimously. First Reading 16. An ordinance annexing an area of land to the City of Denton, Texas, generally identified as DH-11 of approximately 388 acres (less those parcels identified in Exhibit "C") located southeast of the intersection of Mayhill Road and McKinney Street, and more specifically identified in Exhibit "A" attached hereto, which area is adjacent to and abuts the existing city limits of the City of Denton, Texas, and which contains fewer than 100 separate tracts of land on which one or more residential dwellings are located on each tract; providing for inclusion of a service plan in this ordinance; excluding properties within DH-11 subject to non-annexation agreements for agricultural, wildlife management or timberland use from the annexation; providing for correction of the city map to include this annexed area; providing a savings clause; and providing an effective date. (First Reading) Council Member Mulroy motioned, Council Member Engelbrecht seconded to adopt the ordinance. On roll call vote, Council Member Watts "aye", Mayor Pro Tem Kamp "aye", Council Member Mulroy "aye", Council Member Gregory "aye", Mayor Burroughs "aye", Council Member Engelbrecht "aye", and Council Member Heggins "aye". Motion carried unanimously. Ordinance No. 2010-039 17. An ordinance providing for acceptance of eligible non-annexation agreements for agricultural, wildlife management or timberland use properties within an area of land adjacent to and abutting the existing city limits of the City of Denton, Texas, generally identified as DH-14 of approximately 30 acres located on the south side of Robinson Road, east of Teasley Lane, and more specifically identified in Exhibit "A" attached hereto; providing for severability; and providing an effective date. (First Reading) Mayor Pro Tem Kamp motioned, Council Member Gregory seconded to adopt the ordinance. On roll call vote, Council Member Watts "aye", Mayor Pro Tem Kamp "aye", Council Member Mulroy "aye", Council Member Gregory "aye", Mayor Burroughs "aye", Council Member Engelbrecht "aye", and Council Member Heggins "aye". Motion carried unanimously. First Reading 18. An ordinance annexing an area of land to the City of Denton, Texas, generally identified as DH-14 of approximately 30 acres (less those parcels identified in Exhibit "C") located on the south side of Robinson Road, east of Teasley Lane, and more specifically identified in Exhibit "A" attached hereto, which area is adjacent to and City of Denton City Council Minutes February 9, 2010 Page 8 abuts the existing city limits of the City of Denton, Texas, and which contains fewer than 100 separate tracts of land on which one or more residential dwellings are located on each tract; providing for inclusion of a service plan in this ordinance; excluding properties within DH-14 subject to non-annexation agreements for agricultural, wildlife management or timberland use from the annexation; providing for correction of the city map to include this annexed area; providing a savings clause; and providing an effective date. (First Reading) Council Member Watts motioned, Council Member Heggins seconded to adopt the ordinance. On roll call vote, Council Member Watts "aye", Mayor Pro Tem Kamp "aye", Council Member Mulroy "aye", Council Member Gregory "aye", Mayor Burroughs "aye", Council Member Engelbrecht "aye", and Council Member Heggins "aye". Motion carried unanimously. Mayor Burroughs indicated that Comment Cards were received from the following for Items #11, #12, #13, and #14: Richard and Janelle Burch, 4478 Country Club Road, Denton, 76210 – opposed Charles and Nelda Hackett, PO Box 998, Argyle, 87226 - opposed Ordinance No. 2010-040 19. An ordinance providing for acceptance of eligible non-annexation agreements for agricultural, wildlife management or timberland use properties within an area of land adjacent to and abutting the existing city limits of the City of Denton, Texas, generally identified as PAA1 of approximately 1,171 acres located on the south side of Jim Christal Road, the north side of Tom Cole Road, west of Masch Branch Road, and more specifically identified in Exhibit "A" attached hereto; providing for severability; and providing an effective date. (First Reading) Speaker Cards were submitted by: Billie Glasser, 990 Tom Cole Road, Denton, 76207 – opposed Deborah Cottle, 480 Hickory Creek Court, Krum, 76249 - opposed Mayor Burroughs indicated that Comment Cards were received from the following for Items #19 and #20: Larry and Ladonna Pockrus, 9080 Wolf Run, Ponder, 76259 – opposed Council Member Heggins motioned, Mayor Pro Tem Kamp seconded to adopt the ordinance. On roll call vote, Council Member Watts "aye", Mayor Pro Tem Kamp "aye", Council Member Mulroy "aye", Council Member Gregory "aye", Mayor Burroughs "aye", Council Member Engelbrecht "aye", and Council Member Heggins "aye". Motion carried unanimously. First Reading 20. An ordinance annexing an area of land to the City of Denton, Texas, generally identified as PAA1 of approximately 1,171 acres (less those parcels identified in Exhibit "C") located on the south side of Jim Christal Road, the north side of Tom City of Denton City Council Minutes February 9, 2010 Page 9 Cole Road, west of Masch Branch Road, and more specifically identified in Exhibit "A" attached hereto, which area is adjacent to and abuts the existing city limits of the City of Denton, Texas, and which contains fewer than 100 separate tracts of land on which one or more residential dwellings are located on each tract; providing for inclusion of a service plan in this ordinance; excluding properties within PAA1 subject to non-annexation agreements for agricultural, wildlife management or timberland use from the annexation; providing for correction of the city map to include this annexed area; providing a savings clause; and providing an effective date. (First Reading) Silvia Pena, 470 Hickory Creek Court, Krum, 76249 spoke in opposition. Joey Hurst, 9711 Jim Christal Road, Krum, 76249 submitted a Comment Card in opposition. Council Member Mulroy motioned, Council Member Heggins seconded to adopt the ordinance. On roll call vote, Council Member Watts "aye", Mayor Pro Tem Kamp "aye", Council Member Mulroy "aye", Council Member Gregory "aye", Mayor Burroughs "aye", Council Member Engelbrecht "aye", and Council Member Heggins "aye". Motion carried unanimously. Ordinance No. 2010-041 21. An ordinance providing for acceptance of eligible non-annexation agreements for agricultural, wildlife management or timberland use properties within an area of land adjacent to and abutting the existing city limits of the City of Denton, Texas, generally identified as PAA2 South of approximately 1,472 acres located on the south side of FM 1173, north of W. University Drive, west of I-35, and more specifically identified in Exhibit "A" attached hereto; providing for severability; and providing an effective date. (First Reading) Mayor Pro Tem Kamp motioned, Council Member Heggins seconded to adopt the ordinance. On roll call vote, Council Member Watts "aye", Mayor Pro Tem Kamp "aye", Council Member Mulroy "aye", Council Member Gregory "aye", Mayor Burroughs "aye", Council Member Engelbrecht "aye", and Council Member Heggins "aye". Motion carried unanimously. First Reading 22. An ordinance annexing an area of land to the City of Denton, Texas, generally identified as PAA2 South of approximately 1,472 acres (less those parcels identified in Exhibit "C") located on the south side of FM 1173, north of W. University Drive, west of I-35, and more specifically identified in Exhibit "A" attached hereto, which area is adjacent to and abuts the existing city limits of the City of Denton, Texas, and which contains fewer than 100 separate tracts of land on which one or more residential dwellings are located on each tract; providing for inclusion of a service plan in this ordinance; excluding properties within PAA2 South subject to non- annexation agreements for agricultural, wildlife management or timberland use from the annexation; providing for correction of the city map to include this annexed area; providing a savings clause; and providing an effective date. (First Reading) Richard Harris, 425 Fry Street, Denton, 76201 submitted a Comment Card in opposition. City of Denton City Council Minutes February 9, 2010 Page 10 Council Member Heggins motioned, Council Member Watts seconded to adopt the ordinance. On roll call vote, Council Member Watts "aye", Mayor Pro Tem Kamp "aye", Council Member Mulroy "aye", Council Member Gregory "aye", Mayor Burroughs "aye", Council Member Engelbrecht "aye", and Council Member Heggins "aye". Motion carried unanimously. Ordinance No. 2010-042 23. An ordinance providing for acceptance of eligible non-annexation agreements for agricultural, wildlife management or timberland use properties within an area of land adjacent to and abutting the existing city limits of the City of Denton, Texas, generally identified as PAA3 of approximately 1,075 acres located on the south side of Ganzer Road, north and south of Barthold Road, north of FM 1173, west of I-35, and more specifically identified in Exhibit "A" attached hereto; providing for severability; and providing an effective date. (First Reading) Council Member Gregory motioned, Mayor Pro Tem Kamp seconded to adopt the ordinance. On roll call vote, Council Member Watts "aye", Mayor Pro Tem Kamp "aye", Council Member Mulroy "aye", Council Member Gregory "aye", Mayor Burroughs "aye", Council Member Engelbrecht "aye", and Council Member Heggins "aye". Motion carried unanimously. First Reading 24. An ordinance annexing an area of land to the City of Denton, Texas, generally identified as PAA3 of approximately 1,075 acres (less those parcels identified in Exhibit "C") located on the south side of Ganzer Road, north and south of Barthold Road, north of FM 1173, west of I-35, and more specifically identified in Exhibit "A" attached hereto, which area is adjacent to and abuts the existing city limits of the City of Denton, Texas, and which contains fewer than 100 separate tracts of land on which one or more residential dwellings are located on each tract; providing for inclusion of a service plan in this ordinance; excluding properties within PAA3 subject to non- annexation agreements for agricultural, wildlife management or timberland use from the annexation; providing for correction of the city map to include this annexed area; providing a savings clause; and providing an effective date. (First Reading) Council Member Mulroy motioned, Mayor Pro Tem Kamp seconded to adopt the ordinance. On roll call vote, Council Member Watts "aye", Mayor Pro Tem Kamp "aye", Council Member Mulroy "aye", Council Member Gregory "aye", Mayor Burroughs "aye", Council Member Engelbrecht "aye", and Council Member Heggins "aye". Motion carried unanimously. Ordinance No. 2010-043 25. An ordinance providing for acceptance of eligible non-annexation agreements for agricultural, wildlife management or timberland use properties within an area of land adjacent to and abutting the existing city limits of the City of Denton, Texas, generally identified as PAA4 of approximately 1,555 acres located on the south side of Milam Road, north of Loop 288, east of 1-35, and more specifically identified in Exhibit "A" attached hereto; providing for severability; and providing an effective date. (First Reading) Bent Carter, 2043 Chinn Road, Denton, 76206, spoke in opposition. City of Denton City Council Minutes February 9, 2010 Page 11 Melissa Vargas, 6954 Ganzer Road, Denton, 76207 spoke in opposition. Mayor Burroughs indicated that Comment Cards were received from the following in regards to Items #25 and #26: Kenneth Hatridge, 2062 Chinn Road, Denton, 76207 - opposed Linda Chapa, 6306 Milam Ridge, Sanger, 76266 – opposed Council Member Engelbrecht motioned, Council Member Heggins seconded to adopt the ordinance. On roll call vote, Council Member Watts "aye", Mayor Pro Tem Kamp "aye", Council Member Mulroy "aye", Council Member Gregory "aye", Mayor Burroughs "aye", Council Member Engelbrecht "aye", and Council Member Heggins "aye". Motion carried unanimously. First Reading 26. An ordinance annexing an area of land to the City of Denton, Texas, generally identified as PAA4 of approximately 1,555 acres (less those parcels identified in Exhibit "C") located on the south side of Milam Road, north of Loop 288, east of I-35, and more specifically identified in Exhibit "A" attached hereto, which area is adjacent to and abuts the existing city limits of the City of Denton, Texas, and which contains fewer than 100 separate tracts of land on which one or more residential dwellings are located on each tract; providing for inclusion of a service plan in this ordinance; excluding properties within PAA4 subject to non-annexation agreements for agricultural, wildlife management or timberland use from the annexation; providing for correction of the city map to include this annexed area; providing a savings clause; and providing an effective date. (First Reading) Council Member Heggins motioned, Council Member Gregory seconded to adopt the ordinance. On roll call vote, Council Member Watts "aye", Mayor Pro Tem Kamp "aye", Council Member Mulroy "aye", Council Member Gregory "aye", Mayor Burroughs "aye", Council Member Engelbrecht "aye", and Council Member Heggins "aye". Motion carried unanimously. With no further business, the meeting was adjourned at 5:30 pm __________________________ MARK A. BURROUGHS MAYOR CITY OF DENTON, TEXAS __________________________ JENNIFER WALTERS CITY SECRETARY CITY OF DENTON, TEXAS ̸·­ °¿¹» ´»º¬ ¾´¿²µ ·²¬»²¬·±²¿´´§ò AGENDA INFORMATION SHEET AGENDA DATE: March 2, 2010 DEPARTMENT: Parks and Recreation ACM: Fred Greene SUBJECT Consider a request for an exception to the Noise Ordinance for the purpose of performing live music during the NX35 Music Conferette. The concert will be held at the North Texas Fairground located at 2217 N. Carroll on Saturday, March 13, 2010. The sound check will be from 11:00 a.m. until 2:00 p.m. The sound check can be accomplished with 50% of the volume level. A playlist of recorded music will begin at 3:00 p.m. and live performances will begin at 6:00 p.m. and conclude at 9:45 p.m. This request is for an increase in sound from 70 decibels to 102 decibels. Staff recommends an increase to 75 decibels. BACKGROUND The second annual NX35 Music Conferette is a four-day music conference programming approximately 200 acts from all over the United States. The Conferette takes place at several participating venues around the Downtown area. The NX35 Music Conferette event featuring the Flaming Lips band and Denton's own Midlake band, is highly appreciated by Denton's, as well as DFW's, music fans. The economic impact of this event will make a positive impact on Denton businesses. There will be 15,000 tickets available for purchase. No tickets will be available at the door. The event organizers will notify the neighbors about the event and the live music. RECOMMENDATION Staff recommends approving the noise exception request up to 75 decibels. EXHIBITS 1. Letter of Request Respectfully submitted: ti Emerson Vorel, Director Parks and Recreation Department Prebared bv: Janie McLeod Community Events Coordinator MUSIC ONFERETTE MARCH 11 -14 2010 I `.TEXAS NOISE EXCEPTION REQUEST BY NX35 FOR THE FLAMING LIPS/MIDLAKE SHOW AT THE NORTH TEXAS FAIRGROUNDS: Date: 2.1.10 To the City of Denton, NX35 would like to request a noise exception for our live performance event taking place Saturday March 13, 2010 at the The North Texas Fairgrounds. Sound check for these acts begin at 11 a.m. and last until a little before 2 p.m. The sound check can be accomplished at 50% volume and with headphone monitoring. A playlist of recorded music starts at 3 pm, and the live performances begin 6 p.m. and last until 9:45 p.m. at the very latest. This show is rated by the talents' technicians at an A-weighted decibel level which lives around 96-98 Dba and at it's loudest contains brief peaks that do not exceed the 98-102 Dba range. This calculation was made at a distance of 70 ft from the source, at the sound booth. Playlist sound from 3 p.m. on will live at 80 Dba. This NX35 event featuring the Oklahoma City band the Flaming Lips, and Denton's own Midlake is highly anticipated amongst Denton's music fans, as well as DFW's. The show has already garnered national press, highlighting NX35 and our town, and influential music site Pitchfork called NX35 SXSW's "baby cousin". That site averages 1.8 million visitors a month, who generate some 23 million page views. The economic impact of this 1-day event will make a positive impact on Denton tourism and local business - especially during a period when both universities have dismissed students for spring break. It needs to be noted here, that while original, inventive music is NX35's method for growing outside attention for our town, our underlining mission and goal is to improve the quality of life and well-being for everyone that tries make Denton their home. Improvement has been NX35's prime motivation since its inception in 2005. Thank you in advance for this consideration, Chris Flemmons ~r~ons Creative Director, NX35 Music Conferette 211 CEDAR STREET DENTON,TEXAS 76201 001.940.312.7402 wtvw.nx35.coan AGENDA INFORMATION SHEET AGENDA DATE: March 2, 2010 DEPARTMENT: Parks and Recreation ACM: Fred Greene SUBJECT Consider a request for an exception to the Noise Ordinance for the purpose of the 3rd Annual Bean Stock Music Festival, sponsored by Cool Bean's Bar and Grill. The event will be held at Cool Beans, located at 1210 W. Hickory Street, on Saturday, April 10, 2010, beginning at 2:00 p.m. and concluding at 12:00 a.m. The exception is requested for extension of the hours of operation for amplified sound and for an increase in sound from 70 to 77 decibels. Staff recommends an increase to 75 decibels. BACKGROUND Rebecca. Lovell, with Cool Beans, has submitted a request for this annual event featuring live music provided by several (8-10) local musicians. The event will be held inside Cool Bean's and outside on the deck and in the parking lot. PRIOR ACTION/REVIEW (Council, Boards or Commissions) City Council approved the exception to the noise ordinance on April 7, 2009, for the 2nd Annual Bean Stock event. RECOMMENDATION Staff recommends approving the request for the extension of the hours of operation and to allow for an increase in sound level up to 75 decibels. The recommendation is based on previous events taking place in the same area (Fry Street Fair) that were approved to have 75 decibels for outdoor concerts. EXHIBITS 1. Letter of Request Respectfully submitted by: Emerson Vorel, Director Parks and Recreation Prepared By: Janie McLeod Community Events Coordinator Rebecca Lovell/ Martin Bruno Cool Beans Bar and Grill 1210 W. Hickory St. Denton, Tx 76201 Community Events Coordinator Attn: Janie Mcleod City of Denton, Parks and Recreation 601 E. Hickory St Denton, Tx 76201 Re: Exception to City Noise Ordinance and Request for Amplified Sound Ms Janie McLeod, Please accept this letter as an official request for an exception to the city's noise ordinance and request for an elevation decimal of amplified sound (the level will not exceed 77) as well as for an exceeded amount of time (hours of sound will run from 2pm until 12am), for our event planned on Saturday, April 10, 2010. On April 10, Cool Beans would like to host our 3rd annual music event named Bean Stock_ After last years' success we would like to continue on the tradition of opening our facilities up to Denton musicians, patrons, residents and visitors. Our intentions are to once again incorporate our existing parking lot for use as one stage and guest area as well as our existing deck. We are hoping to invite between 8-10 musical groups to provide entertainment. While our set list of bands is not yet available, we will provide a list at a later time. We will not be blocking any major arteries/streets before, during or after our event. Because of the nature of our existing business, we will be serving food and alcoholic beverages (to of age members only) with a current identification card, and doors open only to those individuals of age (21+). We will provide on-site security at all major entrances/exits, as well as roaming throughout the entire event. We will only be using word of mouth and local/in-house announcements this year for advertising. We will as well be contacting TABC, Denton Fire Department, and any other organizations necessary in order to make this years' Bean Stock another success. In the past years we have been able to provide the community with a safe environment to celebrate all genres of music together, it is our hope that we all can make this event once again a success and even better then the last. If there are any questions or concerns regarding the details and/or planning of this event, please contact us: Business: 940-382-7025 Rebecca Lovell: Cell: 940-368-7308 Martin Bruno: Cell: 940-390-5413 SJ''~cerely Rebecca Lovell AGENDA INFORMATION SHEET AGENDA DATE: March 2, 2010 DEPARTMENT: Parks and Recreation ACM: Fred Greene SUBJECT Consider a request for an exception to the Noise Ordinance for the purpose of performing live music during the Glory of Zion International Ministries conference and celebration. The five day conference will be held from Wednesday, March 24th through Sunday, March 28th on the church property located at the corner of Windsor Drive and I-35N. The request is for a variance in decibels for an outdoor concert from 70 to 75 decibels and for amplified sound on Sunday from 8:00 a.m. - 1:00 p.m. Staff recommends an increase to 75 decibels. BACKGROUND The Glory of Zion will be hosting a conference to celebrate Passover. They are expecting about 3,000-4,000 attendees from all over the nation and some international. The event will begin the evening of Wednesday, March 24th from 6:00 p.m.-10:00 p.m. and Thursday, March 25th through Saturday, March 28th from 8:00 a.m. - 10:00 p.m. The Sunday services will be held in a tent on the new site from 8:00 a.m. - 1:00 p.m. The stage and sound equipment is to face toward I-35 and away from surrounding neighborhoods. PRIOR ACTION/REVIEW (Council, Boards or Commission) At the August 4, 2009 City Council meeting, a noise exception was approved to allow amplified sound on Sunday and for an increase in decibels to 75 for a similar event held on the church's property. RECOMMENDATION Staff recommends approving the noise exception request. EXHIBITS 1. Letter of Request Respectfully submitted: Emerson Vorel, Director Parks and Recreation Department Prepared by: i; Community Events Coordinator AGENDA INFORMATION SHEET AGENDA DATE: March 2, 2010 DEPARTMENT: Finance ACM: Jon Fortune SUBJECT Consider adoption of an ordinance of the City Council of the City of Denton, Texas, authorizing the City Manager or his designee to execute a third and final one-year extension to the depository services contract with Wachovia Bank, N.A.; and providing an effective date. BACKGROUND Wachovia Bank, N.A. provides banking, depository, safekeeping, lockbox, and merchant and internet credit card payment services to the City. On June 6, 2006, the City of Denton entered into a two (2) year Depository Services Contract with Wachovia Bank, N.A. The contract terms allowed for three (3) one-year extensions after the period ending May 31, 2008. The City Council approved the first one-year extension to the contract in April 2008 and the second one- year extension in March 2009. Since the services provided to the City have been satisfactory, staff recommends the third and final one-year extension be approved for the period beginning June 1, 2010, and ending May 31, 2011. The Audit/Finance Committee recommended that this contract be presented to Council for consideration in March 2010. Account Analysis fees for the fiscal period ending September 30, 2009, were $271,779.22. These fees were offset by $17,646.3. Thus, net fees incurred were $254,132.91. On January 1, 2009, Wachovia Corporation was acquired by Wells Fargo & Company. Wells Fargo & Company has been in business since 1852 and is currently ranked #1 in banking and mortgage stores, small business lending, and commercial real estate lending, and #2 in deposits. 53 Wells Fargo and Wachovia banking stores. Wells Fargo & Company has one of the highest debt ratings of any financial services company. In this regard, staff is looking forward to working with a financially stronger, newly merged entity. At this point, there have been no changes i procedures, but it is likely that the City will need to alter some procedures over the coming year as a result of the merger between Wachovia and Wells Fargo. Agenda Information Sheet March 2, 2010 Page 2 RECOMMENDATION Staff is satisfied with the current banking relationship and recommends approval of a third and final one- Since the depository contract is scheduled to expire on May 31, 2011, staff will begin developing a new Request for Proposal (RFP) for banking services in the near future. A new five year banking services agreement will be presented for consideration to the Audit/Finance Committee in early 2011. PRIOR ACTION/REVIEW (Council/Boards/Commissions) On April 19, 2006, the Investment Committee reviewed depository bids and unanimously funds. On June 6, 2006, the City Council approved an ordinance designating Wachovia Bank, N.A. as On February 19, 2008, the Investment Committee unanimously recommended approval of a one- year extension to the depository services contract with Wachovia Bank, N.A. On April 1, 2008, the City Council approved an ordinance authorizing the City Manager or his designee to execute a one-year extension to the depository services contract with Wachovia Bank, N.A. On February 3, 2009, the Investment Committee unanimously recommended approval of a second one-year extension to the depository services contract with Wachovia Bank, N.A. On March 3, 2009, the City Council approved an ordinance authorizing the City Manager or his designee to execute a second one-year extension to the depository services contract with Wachovia Bank, N.A. On February 8, 2010, the staff investment committee unanimously recommended approval of a third and final one-year extension to the depository services contract with Wachovia Bank, N.A. On February 15, 2010, the Audit/Finance Committee unanimously recommended approval to forward the depository services contract extension with Wachovia Bank, N.A. to the City Council for consideration. Agenda Information Sheet March 2, 2010 Page 3 EXHIBITS 1.Ordinance 2.Contract Amendment Respectfully submitted: Bryan Langley Director of Finance ̸·­ °¿¹» ´»º¬ ¾´¿²µ ·²¬»²¬·±²¿´´§ò AGENDA INFORMATION SHEET AGENDA DATE: March 2, 2010 DEPARTMENT: Finance ACM: Jon Fortune SUBJECT Consider adoption of an ordinance of the City Council of the City of Denton, Texas, authorizing the City Manager or his designee to execute a two-year extension to the investment advisory services contract with First Southwest Asset Management, Inc.; and providing an effective date. BACKGROUND In May 2008, the City entered into a two (2) year professional services contract with First Southwest Asset Management, Inc. (FSAM) for investment advisory services. The contract term allowed for a two-year extension after the period ending May 31, 2010. The contract was an expansion of services provided to the City since 1998, which previously was limited to quarterly compliance reviews and strategy conference calls. By using an investment advisor, the City takes advantage of extensive network of 24 broker/dealers for the purchase and sale of securities. Previously, staff worked with five broker/dealers approved by the Investment Committee. Broker/dealers make their profit in the mark-up/mark-down of security purchases The higher the mark-up on a security purchase, the less the security will yield to the buyer. Investment advisors, on the other hand, generally charge a fee for their services and deliver the security to their customer at the same price they paid for it (i.e., with no additional mark-up). Since the amount of mark-up on securities purchased from broker/dealers is unknown, it makes it -up charged by broker/dealers. However, prior to the May 2008 contract, staff performed an informal survey by asking FSAM to participate in the security solicitation process so that different purchase prices on the same securities could be compared. At that time, FSAM offered more competitive pricing on most of the securities surveyed. As a result, the City receives a better yield (pays less) on securities than it would otherwise be able to obtain without using the FSAM contract. The May 2008 contract with FSAM was initially $10,000 per quarter or $40,000 per year. However, in July 2009, staff discontinued the quarterly compliance reviews in conjunction with changes/improvements to monthly and quarterly investment reports. This resulted in a decrease in fees of $1,000 per quarter or $4,000 per year. The current cost for the investment program util maintain this fee into the extension period. Agenda Information Sheet March 2, 2010 Page 2 Listed below are some additional advantages to using an investment advisory service for purchasing and selling securities: 1)There is more of an inherent fiduciary relationship with an investment advisor than with a broker/dealer. The broker/dealer only earns money if he/she buys or sells a security to the City. Little, if any, advice is provided. On the other hand, when the City determines, after studying its cash flows, that it is ready to purchase a security a discussion takes place with the investment advisor. This discussion helps formulate strategy while taking into account current market conditions to ensure an appropriate security purchase 2)An investment advisory relationship better utilizes staff time. Previously, staff fielded, on a daily basis, many security solicitations from a network of broker/dealers and, in some cases, inappropriate investments were offered. 3)The investment advisor is also available to help with special requests and research projects, such as: collateral valuation, money market fund/pool comparisons, investment accounting questions, U.S. Government Agency securities research, investment policy modifications, etc. FSAM stands out among other investment advisors due to the fact that their parent company, First Southwest Co., has a security clearing operation. Many other investment advisors cannot offer this service. This allows FSAM to have accounts with many broker/dealers (currently twenty-four) and, in turn, provides their customers access to many more security offerings. Other investment advisors, who do not have access to a security clearing operation, will have to set-up their clients individually with each broker/dealer, thereby limiting them to four or five security firms. RECOMMENDATION Staff recommends approval of a two-year contract extension with FSAM for investment advisory services. The Audit/Finance Committee recommended that the FSAM contract be presented to the City Council for consideration in March 2010. PRIOR ACTION/REVIEW (Council/Boards/Commissions) On May 13, 2008, the Investment Committee unanimously recommended approval of a two-year contract with FSAM for investment advisory services. This contract was not presented to the City Council for approval since it was less than the $100,000 threshold that can be approved by the City Manager. On February 8, 2010, the staff investment committee unanimously recommended approval of a two-year contract extension with FSAM for investment advisory services. On February 15, 2010, the Audit/Finance Committee unanimously recommended approval to forward the two-year contract extension to the City Council for consideration. Agenda Information Sheet March 2, 2010 Page 3 EXHIBITS 1.Ordinance 2.FSAM Renewal Agreement 3.Original FSAM Agreement Respectfully submitted: Bryan Langley Director of Finance ̸·­ °¿¹» ´»º¬ ¾´¿²µ ·²¬»²¬·±²¿´´§ò AGENDA INFORMATION SHEET AGENDA DATE: March 2, 2010 DEPARTMENT: Finance ACM: Jon Fortune SUBJECT Consider approval of a BACKGROUND 1995 and adopted by the City Council on March 5, 1996. Based on recommendations from the former Council Audit Committee, the policy was revised and adopted by the City Council on June 20, 2006. The Debt Policy provides general guidelines by which the City will issue debt and addresses the issues of process, use and limitations. The purpose of this revision is to update staff titles and eliminate language no longer consistent with City Charter provisions revised in 2006. Specifically, Section X (B) related to the sale of bonds had previously referenced our City Charter. Since this section of the City Charter was for the upcoming bond sale. In the near future, staff plans to consider comprehensive revisions to the policy. However, before doing so, staff would like to review further changes to the policy in more detail with our Bond Counsel and Financial Advisor. RECOMMENDATION Staff recommends approval of the resolution. PRIOR ACTION/REVIEW (Council/Boards/Commissions) On March 5, 1996, the City Council approved Resolution No. 96-013 adopting Administrative On February 14, 2006, the Audit Committee unanimously recommended approval of revisions to the Debt Service Management Policy. On June 20, 2006, the City Council approved Resolution No. 2006-024 revising Administrative Agenda Information Sheet March 2, 2010 Page 2 On February 15, 2010, the Audit/Finance Committee unanimously recommended approval to forward the revised Debt Policy to the City Council for consideration. EXHIBITS 1.Resolution 2.Red-line version of Debt Policy Respectfully submitted: Bryan Langley Director of Finance CITY OF DENTON 118 Page of POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE REFERENCE NUMBER: SECTION: FINANCE 403.07 INITIAL EFECTIVE DATE: SUBJECT: DEBT MANAGEMENT 03/05/96 LAST REVISION DATE: TITLE: DEBT SERVICE MANAGEMENT March 2, 2010 POLICY STATEMENT This policy shall provide general guidelines by which the City of Denton (the City) will issue debt. It is the objective of this policy that (1) the City obtain financing only when necessary, (2) the process for identifying the timing and amount of debt or other financing, proceed as efficiently as possible, and (3) the most favorable interest rate and other costs be obtained. This debt management policy applies to the financing activities of the City of Denton, Texas. It also addresses the issues of process, use and limitations. Obligations will be timed for issuance and delivery of proceeds as close as possible to the time that contracts are expected to be awarded so that the proceeds are spent in the most efficient manner. ADMINSTRATIVE PROCEDURES I. DEBT MANAGEMENT COMMITTEE A.Members The Debt Management Committee (the Committee) consists of the City Manager, Assistant City Managers, and as designated by the City Manager, the positions serving as the Director of Finance; and, financial advisor and bond counsel as ex- officio members. B.Scope The Committee shall meet as necessary to review the debt program. Included in its discussions will be such topics as: the Capital Improvement Program, status of financed projects, timing of additional financing needs, the effect of proposed financing activity on the related rates supporting the debt (i.e. property tax rate, utility rates, user fees, etc.). 218 Page of II. RESPONSIBILITY AND STANDARD OF CARE The Finance Department will coordinate all activities required for the issuance of all debt. A.Delegation The primary individual who shall be involved in the development of financing recommendations will be the Director of Finance. The Assistant City Manager (Finance) shall be responsible for all debt financing activities and shall establish a system of controls to regulate the activities of the Director of Finance. B.Conflicts of Interest All participants in the debt management process shall seek to act responsibly as custodians of public assets. Officers and employees involved in the debt management process shall refrain from personal business activity that could conflict with proper execution of the financing program, or which could impair their ability to make impartial financing decisions. C.Reporting The Director of Finance shall prepare at least annually a report summarizing all debt outstanding by type (tax supported and revenue backed), remaining balance of bond proceeds, update of arbitrage liability, and update of pertinent legislative changes. D.Investor Relations The City shall endeavor to maintain a positive relationship with the investment community. The Director of Finance and the City’s financial advisor shall, as necessary, prepare reports and other forms of communications regarding the City’s indebtedness, as well as its future financing plans. This includes information presented to the press and other media. The information includes annual program of services, comprehensive annual financial report, financial plans, capital improvement plans, comprehensive development plans, etc. All forms of media deemed appropriate and immediately available to the City will be utilized to disseminate information to all investors. Examples include Texas Municipal Report, The Bond Buyer, Nationally Recognized Municipal Security Information Repository and State Information Depository. Bond counsel will advise on the use of electronic media in connection with the City's debt program. 318 Page of E.Financial Advisor The City shall retain an independent financial advisor for advice on the structuring of new debt, financial analysis of various options, the rating review process, marketing debt issues, marketability of City obligations, sale and post- sale services, the review of the official statement and other services as necessary. The City will seek the advice of the financial advisor on an ongoing basis. The financial advisor will perform other services as defined by the agreement approved by the City Council. F.Bond Counsel The City shall retain bond counsel for legal and procedural advice on all debt issues. Bond counsel shall advise the City Council in all matters pertaining to its bond ordinance(s) and/or resolution(s). No action shall be taken with respect to new obligations until a written instrument has been prepared by the bond attorneys certifying the legality of the proposal. The bond attorneys shall prepare all ordinances and other legal instruments required for the execution and sale of any bonds issued which shall then be reviewed by the City Attorney and the Director of Finance. The City will also seek the advice of bond counsel on all other types of debt and on any other questions involving federal tax or arbitrage law. Special counsel shall be retained to protect the City's interest in complex negotiations and comment review. III. OFFICIAL STATEMENT The preparation of the Official Statement is the responsibility of the financial advisor in concert with the Director of Finance under the supervision of the Assistant City Manager (Finance). Information for the Official Statement is gathered from departments/divisions throughout the City. The City will take all appropriate steps to comply with the federal disclosure rules (i.e., Securities and Exchange Commission Rule 15C2-12). The City will provide annual and event disclosure to information repositories throughout the term of securities for the benefit of the primary and secondary municipal market. IV. DISCLOSURE A.With each bond offering, and at least annually, in the preparation of Financial Reports or Official Statements of any bond prospectus, the City will follow a policy of full and complete disclosure of financial and legal conditions of the City, in conformance with guidelines issued by the Government Finance Officers Association Disclosure Guideline, and as advised by disclosure counsel or financial advisor. Furthermore, all City finance and debt-related information which may appear in publicly distributed documents in anticipation of the issuance of bonds by the City Enterprise Funds, Redevelopment Agency or 418 Page of Housing Authority should be reviewed by the Finance Department prior to distribution to ensure that the information is presented on an accurate and consistent basis. B.Material Events Securities and Exchange Commission (SEC) Rule 15c2-12 lists eleven events that, if material, must be reported in a timely fashion to each Nationally Recognized Municipal Security Information Repository (NRMSIR) or to the Municipal Security Rulemaking Board (MSRB) and to the appropriate State Information Depository (SID). The events that must be reported, if material, are: 1.Principal and interest payment delinquencies; 2.Nonpayment related defaults; 3.Unscheduled draws on debt service reserves reflecting financial difficulties; 4.Unscheduled draws on credit enhancements reflecting financial difficulties; 5.Substitution of credit or liquidity providers, or their failure to perform; 6.Adverse tax opinions or events affecting the tax-exempt status of the security; 7.Modifications to rights of security holders; 8.Bond calls; 9.Defeasances; 10.Release, substitution, or sale of property securing repayment of the securities; 11.Rating changes. Unofficially considered, the twelfth material event to be reported is the failure of any obligated person to provide the required annual financial information on or before the date specified in the related undertaking. According to the SEC, this requirement would be satisfied if a disclosure contract states that the annual information would be provided within a specified number of days after the fiscal year end. Full disclosure of the operations will be made to the bond rating agencies. The City staff, with the assistance of the financial advisors and bond counsel, will prepare the necessary materials for and presentation to the rating agencies. V. RATING AGENCY COMMUNICATIONS & CREDIT OBJECTIVES The City will seek to maintain and improve its current bond rating so its borrowing costs are reduced to a minimum and its access to credit is preserved. In conjunction with the financial advisor, the City shall maintain a line of communication with the rating agencies (Moody's, Standard & Poor's, and Fitch), informing them of major financial events in the City as they occur. The Comprehensive Annual Financial Report, Annual Program of Services, and Capital Improvement Plan, shall be distributed to the rating agencies after they have been accepted/adopted by the City Council on an annual basis. 518 Page of When necessary, a personal meeting with representatives of the rating agencies will be scheduled when a major capital improvement program is initiated, or to discuss economical and/or financial developments which might impact credit ratings. The following documents may be required for the rating agencies: -Most recent annual audit reports, including a description of accounting practices. Accounting changes in the past three years and the impact on financial results should be explained. -Current budget. -Current capital improvement program/plan. -Official statements for new financings. -Description of projects being financed. -Sources and uses statement for project being financed. If additional funds are required to complete project, the source of the funds and any conditional requirements will be discussed. -Engineering and feasibility report (if applicable). -Zoning or land-use map (if applicable). -Cash flow statement, in the case of interim borrowing. Statement of long – and short-term debt with annual and monthly maturity dates as appropriate. Also, a report of any lease obligations, their nature and term. -Indication of appropriate authority for debt issuance -Investment policy (if applicable). -Statement concerning remaining borrowing capacity plus tax rate and levy capacity or other revenue capacity. VI. LIMITATIONS OF INDEBTEDNESS City staff, in conjunction with the financial advisor and bond counsel, will produce a comprehensive analysis of debt capacity prior to issuing bonds. This document should cover a broad range of factors, including: • Legal debt limits, tax or expenditure ceilings. • Coverage requirements or additional bonds tests in accordance with bond covenants. • Measures of the tax and revenue base, such as projections of relevant economic variables (e.g., assessed property values, employment base, unemployment rates, income levels, and retail sales). • Population trends. • Utilization trends for services underlying revenues. • Factors affecting tax collections, including types of property, goods, or services taxed, assessment practices and collection rates, evaluation of trends relating to the City’s financial performance, such as revenues and expenditures, net revenues available after meeting operating requirements. • Reliability of revenues expected to pay debt service. • Unreserved fund balance levels. • Debt service obligations, such as existing debt service requirements. 618 Page of • Debt service as a percentage of expenditures or tax or system revenues. • Measures of debt burden on the community, such as debt per capita, debt as a percentage of personal income, debt as a percentage of full or equalized assessed property value, and overlapping or underlying debt. • Tax-exempt market factors affecting interest costs, such as interest rates, market receptivity, and credit rating. The City has both revenue bonds and other indebtedness of the Electric, Water, Wastewater, and Solid Waste Funds. The City will endeavor to maintain two coverage ratios as provided in the City’s outstanding bond covenants (e.g. 1.25 and/or 1.50 times, or as required by individual bond covenants). The Electric, Water, Wastewater, and Solid Waste Funds' total long-term debt outstanding shall not exceed the amount of combined fund equity. VII. TYPES OF DEBT The City's bond counsel and financial advisor will present the different types of debt best suited and legally permissible under state law for each debt issue. These types may include: • short-term vs. long-term debt, • general obligation vs. revenue debt, • fixed vs. variable rate debt, • lease-backed debt, • special obligation debt such as assessment district debt, • conduit issues, and • taxable debt; A. The City will seek all possible federal and state reimbursement for mandated projects and/or programs. The City will pursue a balanced relationship between issuing debt and pay-as-you-go financing. B. The City will match the term of long-term debt issued up to the life of the projects financed. Current operations will not be financed with long-term debt. Debt incurred to finance capital improvements will be repaid within the useful life of the project. C. High priority will be assigned to the replacement of capital improvements when they have deteriorated to the point there they are hazardous, incur high maintenance costs, negatively affect property values, or no longer serve their intended purposes. D. An updated Capital Improvement Plan will be presented to the City Council for approval on an annual basis. This plan will be used as a basis for the long-range financial planning process. 718 Page of VIII. BOND STRUCTURE Structural features that may be considered are: • maturity of the debt, • setting the maturities of the debt equal to or less than the useful life of the project, • use of zero coupon bonds, capital appreciation bonds, deep discount bonds, or premium bonds, • debt service structure (level debt service payments, level principal payments or other repayment structure defined by state law), • redemption provisions (mandatory and optional call features), • use of credit enhancement, • use of senior lien and junior lien obligations, and • use of derivative products; IX. SHORT-TERM DEBT A. General Short-term obligations may be issued to finance projects or portions of projects for which the City ultimately intends to issue long-term debt; i.e., it will be used, when appropriate, to provide interim financing which will eventually be refunded with the proceeds of long-term obligations. Short-term obligations may be backed with a tax and/or revenue pledge or a pledge of other available resources. Interim financing may be appropriate when long-term interest rates are expected to decline in the future. In addition, some forms of short-term obligations can be obtained quicker than long-term obligations and thus can be used until long-term financing can be obtained. B. Commercial Paper Due to the issuance costs associated with the marketing and placement of commercial paper in amounts of less than approximately $25 million, it is not considered feasible for the City of Denton to issue this type of debt. Should the opportunity to participate in a commercial paper issuance pool present itself, the advantages and disadvantages shall be evaluated by the Director of Finance. C. Anticipation Notes Anticipation notes empower municipalities to issue debt without giving notice of intent. Anticipation notes may be secured and repaid by a singular pledge, but not a plural pledge, of revenue, taxes, or the proceeds of a future debt issue. 818 Page of Anticipation notes may be authorized by an ordinance adopted by the City Council. Anticipation notes may be used to finance projects or acquisitions that could also be financed with Certificates of Obligation. Anticipation notes have several restrictions, which include: 1)Anticipation notes issued for general purposes must mature before the seventh anniversary of the date the attorney general approves the issue, 2)Anticipation notes may not be used to repay interfund borrowing or a borrowing that occurred up to/or more than 24-months prior to the date of issuance, 3)A governing body may not issue anticipation notes that are payable from bond proceeds unless the proposition authorizing the issuance of the bonds has already been approved by the voters. X. LONG-TERM DEBT A. General Proceeds from the sale of long-term obligations will not be used for operating purposes, and the life of the obligations will not exceed the estimated useful life of the projects financed. A level debt service structure will be used unless operational matters and marketing considerations dictate otherwise. The cost of issuance of private activity bonds is usually higher than for governmental purpose bonds. Consequently, private activity bonds will be issued only when they will economically benefit the City. The cost of taxable debt is higher than for tax-exempt debt. However, the issuance of taxable debt may be more appropriate in some circumstances and may allow valuable flexibility in subsequent contracts with users or managers of the improvement constructed with the bond proceeds. Therefore, the City will usually issue tax-exempt obligations but may occasionally issue taxable obligations. B. Bonds Long-term general obligation or revenue bonds shall be issued to finance significant and desirable capital improvements. The general obligation bonds will be used for purposes set forth by voters in bond elections. All bonds shall be sold in accordance with applicable law. 918 Page of General obligation bonds will strive to have an average life of approximately fifteen (15) years or less, and revenue bonds will strive to have an average life of approximately twenty (20) years or less. C. Certificates of Obligation Certificates of obligation may be issuedto: finance permanent improvements and land acquisition, the need for which arose between bond elections finance costs associated with capital project overruns acquire equipment/vehicles leverage grant funding renovate, acquire, construct facilities and facility improvements construct street improvements provide funding for master plans/studies address necessary life safety needs In accordance with state law, a resolution authorizing publication of notice of intent to issue certificates of obligation shall be presented for the consideration of the City Council. The notice of intent shall be published in a newspaper of general circulation in the City once a week for two consecutive weeks with the first publication to be at least fifteen (15) days prior to the sale date. Certificates of obligation may be backed by a tax pledge under certain circumstances as defined by law. They may also be backed by a combination tax and revenue pledge eligible under state law. Some revenues are restricted as to the uses for which they may be pledged. Electric, Water, Wastewater, and Solid Waste revenues may be pledged without limit for Electric, Water, Wastewater, and Solid Waste purposes but may only be pledged up to $10,000 for non-utility system purposes. As stated in Section X, A., the life of the obligations will not exceed the estimated useful life of the projects financed. D. Public Property Finance Contractual Obligation Public property finance contractual obligations may be issued to finance the acquisition of personal property. E. Revenue Bonds In addition to the policies set forth above, when cost-beneficial and when permitted under applicable ordinances, the City may consider the use of surety bonds, lines of credit, or similar instruments to satisfy mandated debt service fund requirements on outstanding and/or proposed revenue bonds. 1018 Page of XI. REFUNDING AND RESTRUCTURING OPTIONS The City shall consider refunding debt whenever an analysis indicates the potential for present value savings of approximately 3.5% of the debt service being refunded or if beneficial to the City in another way. XII. METHOD OF SALE A.Competitive Sale When feasible and economical, obligations shall be issued by competitive rather than negotiated sale. Favorable conditions for a competitive method of sale include the following: • The market is familiar with the issuer, and the issuer is a stable and regular borrower in the public market. • An active secondary market with a broad investor base for the issuer's bonds. • The issue is neither too large to be easily absorbed by the market nor too small to attract investors without a concerted sales effort. • The issue is not viewed by the market as carrying overly complex features or requiring explanation as to the bonds' soundness. • Interest rates are stable, market demand is strong, and the market is able to absorb a reasonable amount of buying or selling at reasonable price changes. B.Negotiated Sale Bonds issued for the purpose of refunding and/or restructuring outstanding debt may appropriately be sold on a negotiated basis when maximum flexibility is required in order for the City to respond to day-to-day nuances in the marketplace and other complications peculiar to the issuance of refunding debt. Whenever the option exists to sell an issue on a negotiated basis, an analysis of the options shall be performed to aid in the decision-making process. The City will present the reasons and will actively participate in the selection of the underwriter or direct purchaser. In a negotiated sale, the underwriter may be selected through a request for proposals (RFP) or because of a relationship established by previous debt transactions. The criteria used to select an underwriter in a negotiated sale should include the following: • Overall experience • Marketing philosophy • Capability • Previous experience as managing or co-managing partner • Financial statement • Public finance team and resources 1118 Page of • Breakdown of underwriter's discount C.Private Placement When cost-beneficial, the City may privately place its debt. Since no underwriter participates in a private placement, it may result in lower cost of issuance. Private placement is sometimes an option for small issues. The opportunity may be identified by the financial advisor. D. Bidding Parameters The notice of sale will be carefully constructed so as to ensure the best possible bid for the City, in light of existing market conditions and other prevailing factors. Parameters to be examined include: • Limits between lowest and highest coupons • Coupon requirements relative to the yield curve • Method of underwriter compensation, discount, or premium coupons • Use of true interest cost (TIC) versus net interest cost (NIC) • Use of bond insurance • Deep discount bonds • Variable rate bonds • Call provisions XIII. INVESTMENT OF BOND PROCEEDS A.Strategy The City should actively monitor its investment practices to ensure maximum returns on its invested bond funds while complying with Federal arbitrage guidelines. Specific investment strategies for the investment of bond proceeds are provided in the City's investment policy # 403.06. B. Arbitrage Compliance The City will follow a policy of full compliance with all arbitrage rebate requirements of the federal tax code and Internal Revenue Service regulations, and will perform (internally or by contract consultants) arbitrage rebate calculations for each issue subject to rebate on an annual basis. All necessary rebates will be filed and paid when due. C. Arbitrage Liability Management The Director of Finance will maintain a system for tracking arbitrage rebate liability and ensuring that required calculations are performed on a timely basis. These calculations will be performed annually. Funds should be set aside in anticipation of potential rebate liabilities. Due to the complexity of the arbitrage 1218 Page of calculations and regulations, and to the severity of the penalties for noncompliance, the advice of Bond Counsel and qualified experts will be pursued on an ongoing basis. D. All bond proceeds will be separately accounted for in the financial accounting system to facilitate arbitrage tracking and reporting. Arbitrage rebate liability reports shall be generated semi-annually and submitted to the Investment Committee and to the Debt Management Committee for review. 13 18 Pageof POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) REFERENCE NUMBER: DEBT SERVICE MANAGEMENT TITLE: 403.07 GLOSSARY Amortization –The planned reduction of a debt obligation according to a stated maturity or redemption schedule Arbitrage – The gain which may be obtained by borrowing funds at a lower (often tax-exempt) rate and investing the proceeds at higher (often taxable) rates. The ability to earn arbitrage by issuing tax-exempt securities has been severely curtailed by the Tax Reform Act of 1986, as amended Average Life – The average length of time debt is expected to be outstanding Basis Point – One one-hundredth of one percent (0.0001) BBI – Bond Buyer Index. Comparison of current rates for various maturities Bid Form – The document used by an underwriter to submit his bid at a competitive sale Bond – A security that represents an obligation to pay a specified amount of money on a specific date in the future, typically with periodic interest payments Bond Counsel – An attorney (or firm of attorneys) retained by the issuer to give a legal opinion concerning the validity of the securities. The bond counsel’s opinion usually addresses the subject of tax exemption. Bond counsel may prepare, or review and advise the issuer regarding authorizing resolutions or ordinances, trust indentures, official statements, validation proceedings and litigation Bond Insurance – Bond insurance is a type of credit enhancement whereby a monoline insurance company indemnifies an investor against a default by the issuer to pay principal and interest in-full and on-time. Once assigned, the municipal bond insurance policy generally is irrevocable. The insurance company receives an up-front fee, or premium, when the policy is issued Book-Entry-Only – Bonds that are issued in fully-registered form but without certificates of ownership. The ownership interest of each actual purchaser is recorded on computer Bond Years - $1,000 of debt outstanding for one year used to compute average life and net interest cost Call Option – The right to redeem a bond prior to its stated maturity, either on a given date or continuously. The call option is also referred to as the optional redemption provision Capital Appreciation Bond – A bond without current interest coupons that is sold at a substantial discount from par. Investors are provided with a return based upon the accretion of value in the bond through maturity 14 18 Pageof POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) REFERENCE NUMBER: DEBT SERVICE MANAGEMENT TITLE: 403.07 Capital Lease – The acquisition of a capital asset over time rather than merely paying a rental fee for temporary use. A lease-purchase agreement, in which provision is made for transfer of ownership of the property for a nominal price at the scheduled termination of the lease, is referred to as a capital lease Closing – When bonds are exchanged for money (a/k/a delivery or settlement) Commercial Paper (Tax-Exempt) – By convention, short-term, unsecured promissory notes issued in either registered or bearer form with a stated maturity of 270 days or less Competitive Sale – A sale of securities in which the securities are awarded to the bidder who offers to purchase the issue at the best price or lowest cost Coupon Rate – The interest rate on specific maturities of a bond issue. While the term “coupon” derives from the days when virtually all municipal bonds were in bearer form with coupons attached, the term is still frequently used to refer to the interest rate on different maturities of bonds in registered form Cover Bid – The runner-up in a competitive bond sale Credit Enhancements – Credit enhancements are mechanisms which guarantee principal and interest payments. They include bond insurance and a line or letter of credit. A credit enhancement, while costly, will usually bring a lower interest rate on debt and a higher rating from the rating agencies, thus lowering overall costs. Cost effectiveness of credit enhancement will be evaluated for each debt issue CUSIP Number – The term CUSIP is an acronym for the Committee on Uniform Securities Identification Procedures. An identification number is assigned to each maturity of an issue, and is usually printed on the face of each individual certificate of the issue. The CUSIP numbers are intended to help facilitate the identification and clearance of municipal securities. As the municipal market has evolved, and the new derivative products are devised, the importance of the CUSIP system for identification purposes has increased Dated Date – A defined date at which interest begins to accrue from Debt Burden – The ratio of outstanding tax-supported debt to the market value of property within a jurisdiction. The overall debt burden includes a jurisdiction’s proportionate share of overlapping debt as well as the municipality’s direct net debt Debt Limitation – The maximum amount of debt that is legally permitted by a jurisdiction’s charter, constitution, or statutory requirements 15 18 Pageof POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) REFERENCE NUMBER: DEBT SERVICE MANAGEMENT TITLE: 403.07 Debt Service – The amount necessary to pay principal and interest requirements on outstanding bonds for a given year or series of years Debt Service Reserve Fund – The fund into which moneys are placed which may be used to pay debt service if pledged revenues are insufficient to satisfy the debt service requirements. The debt service reserve fund may be entirely funded with bond proceeds, or it may only be partly funded at the time of the issuance and allowed to reach its full funding requirement over time, due to the accumulation of pledged revenues. If the debt service reserve fund is used in whole or part to pay debt service, the issuer usually is required to replenish the funds from the first available funds or revenues. A typical reserve requirement might be the maximum aggregate annual debt service requirement for any year remaining until the bonds reach maturity. The size of the reserve fund, and the manner in which it is invested, may be subject to arbitrage regulations. Default – The failure to pay principal or interest in full or on time. An actual default should be distinguished from technical default. The latter refers to a failure by an issuer to abide by certain covenants but does not necessarily result in a failure to pay principle or interest when due. Defeasance – Providing for payment of principal of premium, if any, and interest on debt through the first call date or scheduled principal maturity in accordance with the terms and requirements of the instrument pursuant to which the debt was issued. A legal defeasance usually involves establishing an irrevocable escrow funded with only cash and U.S. government obligations Depository Trust Company (DTC) – A limited purpose trust company organized under the New York Banking Law. DTC facilitates the settlement of transactions in municipal securities Downgrade – A reduction in credit rating Enterprise Activity – A revenue-generating project or business. The project often provides funds necessary to pay debt service on securities issued to finance the facility. The debts of such projects are self-liquidating when the projects earn sufficient monies to cover all debt service and other requirements imposed under the bond contract. Common examples include water and sewer treatment facilities and utility facilities Final Official Statement (FOS) – A document published by the issuer which generally discloses material information on a new issue of municipal securities including the purposes of the issue, how the securities will be repaid, and the financial, economic and social characteristics of the issuing government. Investors may use this information to evaluate the credit quality of the securities 16 18 Pageof POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) REFERENCE NUMBER: DEBT SERVICE MANAGEMENT TITLE: 403.07 Flow of Funds – The order in which pledged revenues must be disbursed, as set forth in the trust indenture or bond resolution. In most instances, the pledged revenues are deposited into a general collection account or revenue fund as they are received and subsequently transferred into the other accounts established by the bond resolution or trust indenture. The other accounts provide for payment of the costs of debt service, debt service reserve deposits, operation and maintenance costs, renewal and replacement, and other requirements General Obligation Debt - Debt that is secured by a pledge of the ad valorem taxing power of the issuer. Also known as a full faith and credit obligation Good Faith Deposit – A sum of money given by the Underwriter to assure his bid Institutional Buyer – Banks, financial institutions, insurance companies, and bond funds Issuance Costs – The costs incurred by the bond issuer during the planning and sale of securities. These costs include but are not limited to financial advisory and bond counsel fees, printing and advertising costs, rating agencies fees, and other expenses incurred in the marketing of an issue Junior Lien Bonds – Bonds which have a subordinate claim against pledged revenues Letter of Credit – Bank credit facility whereby a bank will honor the payment of an issuer’s debt, in the event that an issuer is unable to do so, thereby providing an additional source of security for bondholders for a predetermined period of time. A letter of credit often is referred to as an L/C or an LOC. Letter of Credit can be issued on a “stand-by” or “direct pay” basis Level Debt Service – When annual payments are substantially the same each year Line of Credit – Bank credit facility wherein the bank agrees to lend up to a maximum amount of funds at some date in the future in return for a commitment fee Manager – The member (or members) of an underwriting syndicate charged with the primary responsibility for conducting the affairs of the syndicate. The managers take the largest underwriting commitment Lead Manager or Senior Manager The underwriter serving as head of the syndicate. The lead manager generally handles negotiations in a negotiated underwriting of a new issue of municipal securities or directs the process by which a bid is determined for a competitive underwriting. The lead manager also is charged with allocating securities among the members of the syndicate in accordance with the terms of the syndicate agreement or agreement among underwriters 17 18 Pageof POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) REFERENCE NUMBER: DEBT SERVICE MANAGEMENT TITLE: 403.07 Joint Manager or Co-Manager Any member of the management group Municipal Securities Rulemaking Board (MSRB) – A self-regulating organization established on September 5, 1975 upon the appointment of a 15-member Board by the Securities and Exchange Agreement. The MSRB, comprised of representatives from investment banking firms, dealer bank representatives, and public representatives, is entrusted with the responsibility of writing rules of conduct for the municipal securities market. New Board members are selected by the MSRB pursuant to the method set forth in Board rules Negotiated Sale – A sale of securities in which the terms of sale are determined through negotiation between the issuer and the purchaser, typically an underwriter, without competitive bidding Net Interest Cost – The average interest cost of a bond issue calculated on the basis of simple interest. Paying Agent – An agent of the issuer with responsibility for timely payment of principal and interest to bond holders Preliminary Official Statement (POS) – The POS is a preliminary version of the official statement which is used by an issuer or underwriters to describe the proposed issue of municipal securities prior to the determination of the interest rate(s) and offering prices(s). The preliminary official statement, also called a “red herring”, often is examined upon by potential purchasers prior to making an investment decision Present Value – The value of a future amount or stream of revenues or expenditures in current dollars Refunding – An advance refunding is a refunding that occurs more than 90 days before the call date of the refunded bonds. A current refunding is a process of selling a new issue of securities to obtain funds needed to retire existing securities. Debt refunding is done to extend maturity and/or to reduce debt service cost Retail Buyer – Individual investors Revenue Bond – A bond which is payable from a specific source of revenue and to which the full faith and credit of an issuer with taxing power is not pledged. Revenue bonds are payable from identified sources of revenue, and do not permit the bondholders to compel a jurisdiction to pay debt service from any other source. Pledged revenues often are derived from the operation of an enterprise activity. Generally, no voter approval is required prior to issuance of such obligations Secondary Market – The market in which bonds are sold after their initial sale in the new issue market 18 18 Pageof POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) REFERENCE NUMBER: DEBT SERVICE MANAGEMENT TITLE: 403.07 Senior Lien Bonds – Bonds having a prior, or first claim on pledged revenues Serial Bonds – A bond issue in which the principal is repaid in periodic installments over the issue’s life Split ratings – Different rating levels from different rating agencies Surety Bond – A bond guaranteeing performance of a contract or obligation Term Bonds – Term bonds usually refer to a particularly large maturity of a bond issue that is created by aggregating a series of maturities. A provision is often made for the mandatory redemption of specified amounts of principal during several years prior to the stated maturity, which effectively simulates serial bonds True Interest Cost (TIC) – An expression of the average interest cost in present value terms. The true interest cost is a more accurate measurement of the bond issue’s effective interest cost and should be used to ascertain the best bid in a competitive sale Variable Rate Bond – A bond on which the interest rate is reset periodically, usually no less often than semi-annually. The interest rate is reset either by means of an auction or through an index Upgrade – An increase in credit rating CITY OF DENTON PAGE 1 OF 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE REFERENCE NUMBER: SECTION: FINANCE 403.07 INITIAL EFECTIVE DATE: SUBJECT: DEBT MANAGEMENT 03/05/96 LAST REVISION DATE: TITLE: DEBT SERVICE MANAGEMENT 06/20/06 POLICY STATEMENT This policy shall provide general guidelines by which the City of Denton (the City) will issue debt. It is the objective of this policy that (1) the City obtain financing only when necessary, (2) the process for identifying the timing and amount of debt or other financing, proceed as efficiently as possible, and (3) the most favorable interest rate and other costs be obtained. This debt management policy applies to the financing activities of the City of Denton, Texas. It also addresses the issues of process, use and limitations. Obligations will be timed for issuance and delivery of proceeds as close as possible to the time that contracts are expected to be awarded so that the proceeds are spent in the most efficient manner. ADMINSTRATIVE PROCEDURES I. DEBT MANAGEMENT COMMITTEE A.Members The Debt Management Committee (the Committee) consists of the City Manager, Assistant City Managers, and as designated by the City Manager, the positions serving as the City Chief Financial Officer and Chief Budget Officer Director of Finance; and, financial advisor and bond counsel as ex-officio members. B.Scope The Committee shall meet as necessary to review the debt program. Included in its discussions will be such topics as: the Capital Improvement Program, status of financed projects, timing of additional financing needs, the effect of proposed financing activity on the related rates supporting the debt (i.e. property tax rate, utility rates, user fees, etc.). Page 2 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) REFERENCE NUMBER: DEBT SERVICE MANAGEMENT TITLE: 403.07 II. RESPONSIBILITY AND STANDARD OF CARE The Fiscal and Municipal Services Finance Department will coordinate all activities required for the issuance of all debt. A.Delegation The primary individual who shall be involved in the development of financing recommendations will be the Chief Financial Officer Director of Finance. The Assistant City Manager (Finance) shall be responsible for all debt financing activities and shall establish a system of controls to regulate the activities of the Chief Financial Officer Director of Finance. B.Conflicts of Interest All participants in the debt management process shall seek to act responsibly as custodians of public assets. Officers and employees involved in the debt management process shall refrain from personal business activity that could conflict with proper execution of the financing program, or which could impair their ability to make impartial financing decisions. C.Reporting The Chief Financial Officer Director of Finance shall prepare at least annually a report summarizing all debt outstanding by type (tax supported and revenue backed), remaining balance of bond proceeds, update of arbitrage liability, and update of pertinent legislative changes. D.Investor Relations The City shall endeavor to maintain a positive relationship with the investment community. The Chief Financial Officer Director of Finance financial advisor shall, as necessary, prepare reports and other forms of re financing plans. This includes information presented to the press and other media. The information includes annual program of services, comprehensive annual financial report, financial plans, capital improvement plans, comprehensive development plans, etc. All forms of media deemed appropriate and immediately available to the City will be utilized to disseminate information to all investors. Examples include Texas Municipal Report, The Bond Buyer, Nationally Recognized Municipal Security Information Repository and State Information Depository. Bond counsel will advise on the use of electronic media in connection with the City's debt program. Page 3 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) REFERENCE NUMBER: DEBT SERVICE MANAGEMENT TITLE: 403.07 E.Financial Advisor The City shall retain an independent financial advisor for advice on the structuring of new debt, financial analysis of various options, the rating review process, marketing debt issues, marketability of City obligations, sale and post- sale services, the review of the official statement and other services as necessary. The City will seek the advice of the financial advisor on an ongoing basis. The financial advisor will perform other services as defined by the agreement approved by the City Council. F.Bond Counsel The City shall retain bond counsel for legal and procedural advice on all debt issues. Bond counsel shall advise the City Council in all matters pertaining to its bond ordinance(s) and/or resolution(s). No action shall be taken with respect to new obligations until a written instrument has been prepared by the bond attorneys certifying the legality of the proposal. The bond attorneys shall prepare all ordinances and other legal instruments required for the execution and sale of any bonds issued which shall then be reviewed by the City Attorney and Chief Financial Officer Director of Finance. The City will also seek the advice of bond counsel on all other types of debt and on any other questions involving federal tax or arbitrage law. Special counsel shall be retained to protect the City's interest in complex negotiations and comment review. III. OFFICIAL STATEMENT The preparation of the Official Statement is the responsibility of the financial advisor in concert with the Chief Financial Officer Director of Finance under the supervision of the Assistant City Manager (Finance). Information for the Official Statement is gathered from departments/divisions throughout the City. The City will take all appropriate steps to comply with the federal disclosure rules (i.e., Securities and Exchange Commission Rule 15C2-12). The City will provide annual and event disclosure to information repositories throughout the term of securities for the benefit of the primary and secondary municipal market. IV. DISCLOSURE A.With each bond offering, and at least annually, in the preparation of Financial Reports or Official Statements of any bond prospectus, the City will follow a policy of full and complete disclosure of financial and legal conditions of the City, in conformance with guidelines issued by the Government Finance Officers Page 4 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) REFERENCE NUMBER: DEBT SERVICE MANAGEMENT TITLE: 403.07 Association Disclosure Guideline, and as advised by disclosure counsel or financial advisor. Furthermore, all City finance and debt-related information which may appear in publicly distributed documents in anticipation of the issuance of bonds by the City Enterprise Funds, Redevelopment Agency or Housing Authority should be reviewed by the Finance Department prior to distribution to ensure that the information is presented on an accurate and consistent basis. B.Material Events Securities and Exchange Commission (SEC) Rule 15c2-12 lists eleven events that, if material, must be reported in a timely fashion to each Nationally Recognized Municipal Security Information Repository (NRMSIR) or to the Municipal Security Rulemaking Board (MSRB) and to the appropriate State Information Depository (SID). The events that must be reported, if material, are: 1.Principal and interest payment delinquencies; 2.Nonpayment related defaults; 3.Unscheduled draws on debt service reserves reflecting financial difficulties; 4.Unscheduled draws on credit enhancements reflecting financial difficulties; 5.Substitution of credit or liquidity providers, or their failure to perform; 6.Adverse tax opinions or events affecting the tax-exempt status of the security; 7.Modifications to rights of security holders; 8.Bond calls; 9.Defeasances; 10.Release, substitution, or sale of property securing repayment of the securities; 11.Rating changes. Unofficially considered, the twelfth material event to be reported is the failure of any obligated person to provide the required annual financial information on or before the date specified in the related undertaking. According to the SEC, this requirement would be satisfied if a disclosure contract states that the annual information would be provided within a specified number of days after the fiscal year end. Full disclosure of the operations will be made to the bond rating agencies. The City staff, with the assistance of the financial advisors and bond counsel, will prepare the necessary materials for and presentation to the rating agencies. V. RATING AGENCY COMMUNICATIONS & CREDIT OBJECTIVES The City will seek to maintain and improve its current bond rating so its borrowing costs are reduced to a minimum and its access to credit is preserved. Page 5 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) REFERENCE NUMBER: DEBT SERVICE MANAGEMENT TITLE: 403.07 In conjunction with the financial advisor, the City shall maintain a line of communication with the rating agencies (Moody's, Standard & Poor's, and Fitch), informing them of major financial events in the City as they occur. The Comprehensive Annual Financial Report, Annual Program of Services, and Capital Improvement Plan, shall be distributed to the rating agencies after they have been accepted/adopted by the City Council on an annual basis. When necessary, a personal meeting with representatives of the rating agencies will be scheduled when a major capital improvement program is initiated, or to discuss economical and/or financial developments which might impact credit ratings. The following documents may be required for the rating agencies: -Most recent annual audit reports, including a description of accounting practices. Accounting changes in the past three years and the impact on financial results should be explained. -Current budget. -Current capital improvement program/plan. -Official statements for new financings. -Description of projects being financed. -Sources and uses statement for project being financed. If additional funds are required to complete project, the source of the funds and any conditional requirements will be discussed. -Engineering and feasibility report (if applicable). -Zoning or land-use map (if applicable). -Cash flow statement, in the case of interim borrowing. Statement of long and short-term debt with annual and monthly maturity dates as appropriate. Also, a report of any lease obligations, their nature and term. -Indication of appropriate authority for debt issuance -Investment policy (if applicable). -Statement concerning remaining borrowing capacity plus tax rate and levy capacity or other revenue capacity. VI. LIMITATIONS OF INDEBTEDNESS City staff, in conjunction with the financial advisor and bond counsel, will produce a comprehensive analysis of debt capacity prior to issuing bonds. This document should cover a broad range of factors, including: Legal debt limits, tax or expenditure ceilings. Coverage requirements or additional bonds tests in accordance with bond covenants. Page 6 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) REFERENCE NUMBER: DEBT SERVICE MANAGEMENT TITLE: 403.07 Measures of the tax and revenue base, such as projections of relevant economic variables (e.g., assessed property values, employment base, unemployment rates, income levels, and retail sales). Population trends. Utilization trends for services underlying revenues. Factors affecting tax collections, including types of property, goods, or services taxed, assessment practices and collection rates, evaluation of trends relating to revenues available after meeting operating requirements. Reliability of revenues expected to pay debt service. Unreserved fund balance levels. Debt service obligations, such as existing debt service requirements. Debt service as a percentage of expenditures or tax or system revenues. Measures of debt burden on the community, such as debt per capita, debt as a percentage of personal income, debt as a percentage of full or equalized assessed property value, and overlapping or underlying debt. Tax-exempt market factors affecting interest costs, such as interest rates, market receptivity, and credit rating. The City has both revenue bonds and other indebtedness, of the Electric, Water, Wastewater, and Solid Waste Funds. The City will endeavor to maintain two coverage or as required by individual bond covenants). The Electric, Water, Wastewater, and Solid Waste Funds' total long-term debt outstanding shall not exceed the amount of combined fund equity. VII. TYPES OF DEBT The City's bond counsel and financial advisor will present the different types of debt best suited and legally permissible under state law for each debt issue. These types may include: -term vs. long-term debt, -backed debt, istrict debt, A The City will seek all possible federal and state reimbursement for mandated projects and/or programs. The City will pursue a balanced relationship between issuing debt and pay-as-you-go financing. Page 7 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) REFERENCE NUMBER: DEBT SERVICE MANAGEMENT TITLE: 403.07 B. The City will match the term of long-term debt issued up to the life of the projects financed. Current operations will not be financed with long-term debt. Debt incurred to finance capital improvements will be repaid within the useful life of the project. C. High priority will be assigned to the replacement of capital improvements when they have deteriorated to the point there they are hazardous, incur high maintenance costs, negatively affect property values, or no longer serve their intended purposes. D. An updated Capital Improvement Plan will be presented to the City Council for approval on an annual basis. This plan will be used as a basis for the long-range financial planning process. VIII. BOND STRUCTURE Structural features that may be considered are: project, premium bonds, (level debt service payments, level principal payments or other repayment structure defined by state law), ns, and IX. SHORT-TERM DEBT A. General Short-term obligations may be issued to finance projects or portions of projects for which the City ultimately intends to issue long-term debt; i.e., it will be used, when appropriate, to provide interim financing which will eventually be refunded with the proceeds of long-term obligations. Short-term obligations may be backed with a tax and/or revenue pledge or a pledge of other available resources. Page 8 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) REFERENCE NUMBER: DEBT SERVICE MANAGEMENT TITLE: 403.07 Interim financing may be appropriate when long-term interest rates are expected to decline in the future. In addition, some forms of short-term obligations can be obtained quicker than long-term obligations and thus can be used until long-term financing can be obtained. B. Commercial Paper Due to the issuance costs associated with the marketing and placement of commercial paper in amounts of less than approximately $25 million, it is not considered feasible for the City of Denton to issue this type of debt. Should the opportunity to participate in a commercial paper issuance pool present itself, the advantages and disadvantages shall be evaluated by the Chief Financial Officer Director of Finance. C. Anticipation Notes Anticipation notes empower municipalities to issue debt without giving notice of intent. Anticipation notes may be secured and repaid by a singular pledge, but not a plural pledge, of revenue, taxes, or the proceeds of a future debt issue. Anticipation notes may be authorized by an ordinance adopted by the City Council. Anticipation notes may be used to finance projects or acquisitions that could also be financed with Certificates of Obligation. Anticipation notes have several restrictions, which include: 1)Anticipation notes issued for general purposes must mature before the seventh anniversary of the date the attorney general approves the issue, 2)Anticipation notes may not be used to repay interfund borrowing or a borrowing that occurred up to/or more than 24-months prior to the date of issuance, 3)A governing body may not issue anticipation notes that are payable from bond proceeds unless the proposition authorizing the issuance of the bonds has already been approved by the voters. X. LONG-TERM DEBT A. General Page 9 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) REFERENCE NUMBER: DEBT SERVICE MANAGEMENT TITLE: 403.07 Proceeds from the sale of long-term obligations will not be used for operating purposes, and the life of the obligations will not exceed the estimated useful life of the projects financed. A level debt service structure will be used unless operational matters and marketing considerations dictate otherwise. The cost of issuance of private activity bonds is usually higher than for governmental purpose bonds. Consequently, private activity bonds will be issued only when they will economically benefit the City. The cost of taxable debt is higher than for tax-exempt debt. However, the issuance of taxable debt may be more appropriate in some circumstances and may allow valuable flexibility in subsequent contracts with users or managers of the improvement constructed with the bond proceeds. Therefore, the City will usually issue tax-exempt obligations but may occasionally issue taxable obligations. B. Bonds Long-term general obligation or revenue bonds shall be issued to finance significant and desirable capital improvements. The general obligation bonds will be used for purposes set forth by voters in bond elections. All bonds shall be sold in accordance with applicable law. General obligation bonds will strive to have an average life of approximately fifteen (15) years or less, and revenue bonds will strive to have an average life of approximately twenty (20) years or less. Unless a compelling reason is identified by the Debt Committee, all bonds issued for the purpose of supplying new monies as needed for current, ongoing public improvements shall be sold at a public, competitive sale based upon sealed bids pursuant to terms and conditions specified in the City's Home Rule Charter which regularly includes municipal bond sale notices, stating pertinent facts relating to the proposed sale including, but not limited to, the time, the date, and the place (which shall be in the City of Denton) that all sealed bids will be publicly opened, read, and tabulated before the City Council. The date advertised for opening of C. Certificates of Obligation Certificates of obligation may be issued to: Page 10 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) REFERENCE NUMBER: DEBT SERVICE MANAGEMENT TITLE: 403.07 finance permanent improvements and land acquisition, the need for which arose between bond elections finance costs associated with capital project overruns acquire equipment/vehicles leverage grant funding renovate, acquire, construct facilities and facility improvements construct street improvements provide funding for master plans/studies address necessary life safety needs In accordance with state law, a resolution authorizing publication of notice of intent to issue certificates of obligation shall be presented for the consideration of the City Council. The notice of intent shall be published in a newspaper of general circulation in the City once a week for two consecutive weeks with the first publication to be at least fifteen (15) days prior to the sale date. Certificates of obligation may be backed by a tax pledge under certain circumstances as defined by law. They may also be backed by a combination tax and revenue pledge eligible under state law. Some revenues are restricted as to the uses for which they may be pledged. Electric, Water, Wastewater, and Solid Waste revenues may be pledged without limit for Electric, Water, Wastewater, and Solid Waste purposes but may only be pledged up to $10,000 for non-utility system purposes. As stated in Section X, A., the life of the obligations will not exceed the estimated useful life of the projects financed. D. Public Property Finance Contractual Obligation Public property finance contractual obligations may be issued to finance the acquisition of personal property. E. Revenue Bonds In addition to the policies set forth above, when cost-beneficial and when permitted under applicable ordinances, the City may consider the use of surety bonds, lines of credit, or similar instruments to satisfy mandated debt service fund requirements on outstanding and/or proposed revenue bonds. XI. REFUNDING AND RESTRUCTURING OPTIONS Page 11 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) REFERENCE NUMBER: DEBT SERVICE MANAGEMENT TITLE: 403.07 The City shall consider refunding debt whenever an analysis indicates the potential for present value savings of approximately 3.5% of the debt service being refunded or if beneficial to the City in another way. XII. METHOD OF SALE A.Competitive Sale When feasible and economical, obligations shall be issued by competitive rather than negotiated sale. Favorable conditions for a competitive method of sale include the following: The market is familiar with the issuer, and the issuer is a stable and regular borrower in the public market. An active secondary market with a broad investor base for the issuer's bonds. The issue is neither too large to be easily absorbed by the market nor too small to attract investors without a concerted sales effort. The issue is not viewed by the market as carrying overly complex features or requiring explanation as to the bonds' soundness. Interest rates are stable, market demand is strong, and the market is able to absorb a reasonable amount of buying or selling at reasonable price changes. B.Negotiated Sale Bonds issued for the purpose of refunding and/or restructuring outstanding debt may appropriately be sold on a negotiated basis when maximum flexibility is required in order for the City to respond to day-to-day nuances in the marketplace and other complications peculiar to the issuance of refunding debt. Whenever the option exists to sell an issue on a negotiated basis, an analysis of the options shall be performed to aid in the decision-making process. The City will present the reasons and will actively participate in the selection of the underwriter or direct purchaser. In a negotiated sale, the underwriter may be selected through a request for proposals (RFP) or because of a relationship established by previous debt transactions. The criteria used to select an underwriter in a negotiated sale should include the following: Page 12 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) REFERENCE NUMBER: DEBT SERVICE MANAGEMENT TITLE: 403.07 evious experience as managing or co-managing partner C.Private Placement When cost-beneficial, the City may privately place its debt. Since no underwriter participates in a private placement, it may result in lower cost of issuance. Private placement is sometimes an option for small issues. The opportunity may be identified by the financial advisor. D. Bidding Parameters The notice of sale will be carefully constructed so as to ensure the best possible bid for the City, in light of existing market conditions and other prevailing factors. Parameters to be examined include: o the yield curve XIII. INVESTMENT OF BOND PROCEEDS A.Strategy The City should actively monitor its investment practices to ensure maximum returns on its invested bond funds while complying with Federal arbitrage guidelines. Specific investment strategies for the investment of bond proceeds are provided in the City's investment policy #408.04 403.06. B. Arbitrage Compliance The City will follow a policy of full compliance with all arbitrage rebate requirements of the federal tax code and Internal Revenue Service regulations, and will perform (internally or by contract consultants) arbitrage rebate Page 13 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) REFERENCE NUMBER: DEBT SERVICE MANAGEMENT TITLE: 403.07 calculations for each issue subject to rebate on an annual basis. All necessary rebates will be filed and paid when due. C. Arbitrage Liability Management The Chief Financial Officer Director of Finance will maintain a system for tracking arbitrage rebate liability and ensuring that required calculations are performed on a timely basis. These calculations will be performed annually. Funds should be set aside in anticipation of potential rebate liabilities. Due to the complexity of the arbitrage calculations and regulations, and to the severity of the penalties for noncompliance, the advice of Bond Counsel and qualified experts will be pursued on an ongoing basis. D. All bond proceeds will be separately accounted for in the financial accounting system to facilitate arbitrage tracking and reporting. Arbitrage rebate liability reports shall be generated semi-annually and submitted to the Investment Committee and to the Debt Management Committee for review. Page 14 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) REFERENCE NUMBER: DEBT SERVICE MANAGEMENT TITLE: 403.07 GLOSSARY Amortization The planned reduction of a debt obligation according to a stated maturity or redemption schedule Arbitrage The gain which may be obtained by borrowing funds at a lower (often tax-exempt) rate and investing the proceeds at higher (often taxable) rates. The ability to earn arbitrage by issuing tax-exempt securities has been severely curtailed by the Tax Reform Act of 1986, as amended Average Life The average length of time debt is expected to be outstanding Basis Point One one-hundredth of one percent (0.0001) BBI Bond Buyer Index. Comparison of current rates for various maturities Bid Form The document used by an underwriter to submit his bid at a competitive sale Bond A security that represents an obligation to pay a specified amount of money on a specific date in the future, typically with periodic interest payments Bond Counsel An attorney (or firm of attorneys) retained by the issuer to give a legal opinion concerning the validity o the subject of tax exemption. Bond counsel may prepare, or review and advise the issuer regarding authorizing resolutions or ordinances, trust indentures, official statements, validation proceedings and litigation Bond Insurance Bond insurance is a type of credit enhancement whereby a monoline insurance company indemnifies an investor against a default by the issuer to pay principal and interest in-full and on-time. Once assigned, the municipal bond insurance policy generally is irrevocable. The insurance company receives an up-front fee, or premium, when the policy is issued Book-Entry-Only Bonds that are issued in fully-registered form but without certificates of ownership. The ownership interest of each actual purchaser is recorded on computer Bond Years - $1,000 of debt outstanding for one year used to compute average life and net interest cost Call Option The right to redeem a bond prior to its stated maturity, either on a given date or continuously. The call option is also referred to as the optional redemption provision Capital Appreciation Bond A bond without current interest coupons that is sold at a substantial discount from par. Investors are provided with a return based upon the accretion of value in the bond through maturity Page 15 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) REFERENCE NUMBER: DEBT SERVICE MANAGEMENT TITLE: 403.07 Capital Lease The acquisition of a capital asset over time rather than merely paying a rental fee for temporary use. A lease-purchase agreement, in which provision is made for transfer of ownership of the property for a nominal price at the scheduled termination of the lease, is referred to as a capital lease Closing When bonds are exchanged for money (a/k/a delivery or settlement) Commercial Paper (Tax-Exempt) By convention, short-term, unsecured promissory notes issued in either registered or bearer form with a stated maturity of 270 days or less Competitive Sale A sale of securities in which the securities are awarded to the bidder who offers to purchase the issue at the best price or lowest cost Coupon Rate derives from the days when virtually all municipal bonds were in bearer form with coupons attached, the term is still frequently used to refer to the interest rate on different maturities of bonds in registered form Cover Bid The runner-up in a competitive bond sale Credit Enhancements Credit enhancements are mechanisms which guarantee principal and interest payments. They include bond insurance and a line or letter of credit. A credit enhancement, while costly, will usually bring a lower interest rate on debt and a higher rating from the rating agencies, thus lowering overall costs. Cost effectiveness of credit enhancement will be evaluated for each debt issue CUSIP Number The term CUSIP is an acronym for the Committee on Uniform Securities Identification Procedures. An identification number is assigned to each maturity of an issue, and is usually printed on the face of each individual certificate of the issue. The CUSIP numbers are intended to help facilitate the identification and clearance of municipal securities. As the municipal market has evolved, and the new derivative products are devised, the importance of the CUSIP system for identification purposes has increased Dated Date A defined date at which interest begins to accrue from Debt Burden The ratio of outstanding tax-supported debt to the market value of property within a jurisdiction. Debt Limitation charter, constitution, or statutory requirements Page 16 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) REFERENCE NUMBER: DEBT SERVICE MANAGEMENT TITLE: 403.07 Debt Service The amount necessary to pay principal and interest requirements on outstanding bonds for a given year or series of years Debt Service Utility Bond Reserve Fund The fund into which moneys are placed which may be used to pay debt service if pledged revenues are insufficient to satisfy the debt service requirements. The debt service reserve fund may be entirely funded with bond proceeds, or it may only be partly funded at the time of the issuance and allowed to reach its full funding requirement over time, due to the accumulation of pledged revenues. If the debt service reserve fund is used in whole or part to pay debt service, the issuer usually is required to replenish the funds from the first available funds or revenues. A typical reserve requirement might be the maximum aggregate annual debt service requirement for any year remaining until the bonds reach maturity. The size of the reserve fund, and the manner in which it is invested, may be subject to arbitrage regulations. Default The failure to pay principal or interest in full or on time. An actual default should be distinguished from technical default. The latter refers to a failure by an issuer to abide by certain covenants but does not necessarily result in a failure to pay principle or interest when due. Defeasance Providing for payment of principal of premium, if any, and interest on debt through the first call date or scheduled principal maturity in accordance with the terms and requirements of the instrument pursuant to which the debt was issued. A legal defeasance usually involves establishing an irrevocable escrow funded with only cash and U.S. government obligations Depository Trust Company (DTC) A limited purpose trust company organized under the New York Banking Law. DTC facilitates the settlement of transactions in municipal securities Downgrade A reduction in credit rating Enterprise Activity A revenue-generating project or business. The project often provides funds necessary to pay debt service on securities issued to finance the facility. The debts of such projects are self-liquidating when the projects earn sufficient monies to cover all debt service and other requirements imposed under the bond contract. Common examples include water and sewer treatment facilities and utility facilities Final Official Statement (FOS) A document published by the issuer which generally discloses material information on a new issue of municipal securities including the purposes of the issue, how the securities will be repaid, and the financial, economic and social characteristics of the issuing government. Investors may use this information to evaluate the credit quality of the securities Page 17 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) REFERENCE NUMBER: DEBT SERVICE MANAGEMENT TITLE: 403.07 Flow of Funds The order in which pledged revenues must be disbursed, as set forth in the trust indenture or bond resolution. In most instances, the pledged revenues are deposited into a general collection account or revenue fund as they are received and subsequently transferred into the other accounts established by the bond resolution or trust indenture. The other accounts provide for payment of the costs of debt service, debt service reserve deposits, operation and maintenance costs, renewal and replacement, and other requirements General Obligation Debt - Debt that is secured by a pledge of the ad valorem taxing power of the issuer. Also known as a full faith and credit obligation Good Faith Deposit A sum of money given by the Underwriter to assure his bid Institutional Buyer Banks, financial institutions, insurance companies, and bond funds Issuance Costs The costs incurred by the bond issuer during the planning and sale of securities. These costs include but are not limited to financial advisory and bond counsel fees, printing and advertising costs, rating agencies fees, and other expenses incurred in the marketing of an issue Junior Lien Bonds Bonds which have a subordinate claim against pledged revenues Letter of Credit Bank credit facility where in the event that an issuer is unable to do so, thereby providing an additional source of security for bondholders for a predetermined period of time. A letter of credit often is referred to as an L- Level Debt Service When annual payments are substantially the same each year Line of Credit Bank credit facility wherein the bank agrees to lend up to a maximum amount of funds at some date in the future in return for a commitment fee Manager The member (or members) of an underwriting syndicate charged with the primary responsibility for conducting the affairs of the syndicate. The managers take the largest underwriting commitment Lead Manager or Senior Manager The underwriter serving as head of the syndicate. The lead manager generally handles negotiations in a negotiated underwriting of a new issue of municipal securities or directs the process by which a bid is determined for a competitive underwriting. The lead manager also is charged with allocating securities among the members of the syndicate in accordance with the terms of the syndicate agreement or agreement among underwriters Page 18 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) REFERENCE NUMBER: DEBT SERVICE MANAGEMENT TITLE: 403.07 Joint Manager or Co-Manager Any member of the management group Municipal Securities Rulemaking Board (MSRB) A self-regulating organization established on September 5, 1975 upon the appointment of a 15-member Board by the Securities and Exchange Agreement. The MSRB, comprised of representatives from investment banking firms, dealer bank representatives, and public representatives, is entrusted with the responsibility of writing rules of conduct for the municipal securities market. New Board members are selected by the MSRB pursuant to the method set forth in Board rules Negotiated Sale A sale of securities in which the terms of sale are determined through negotiation between the issuer and the purchaser, typically an underwriter, without competitive bidding Net Interest Cost The average interest cost of a bond issue calculated on the basis of simple interest. Paying Agent An agent of the issuer with responsibility for timely payment of principal and interest to bond holders Preliminary Official Statement (POS) The POS is a preliminary version of the official statement which is used by an issuer or underwriters to describe the proposed issue of municipal securities prior to the determination of the interest rate(s) and offering prices(s). The prelim examined upon by potential purchasers prior to making an investment decision Present Value The value of a future amount or stream of revenues or expenditures in current dollars Refunding An advance refunding is a refunding that occurs more than 90 days before the call date of the refunded bonds. A current refunding is a process of selling a new issue of securities to obtain funds needed to retire existing securities. Debt refunding is done to extend maturity and/or to reduce debt service cost Retail Buyer Individual investors Revenue Bond A bond which is payable from a specific source of revenue and to which the full faith and credit of an issuer with taxing power is not pledged. Revenue bonds are payable from identified sources of revenue, and do not permit the bondholders to compel a jurisdiction to pay debt service from any other source. Pledged revenues often are derived from the operation of an enterprise activity. Generally, no voter approval is required prior to issuance of such obligations Secondary Market The market in which bonds are sold after their initial sale in the new issue market Page 19 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE (Continued) REFERENCE NUMBER: DEBT SERVICE MANAGEMENT TITLE: 403.07 Senior Lien Bonds Bonds having a prior, or first claim on pledged revenues Serial Bonds A bond issue in which the principal is repaid in periodic installments over the Split ratings Different rating levels from different rating agencies Surety Bond A bond guaranteeing performance of a contract or obligation Term Bonds Term bonds usually refer to a particularly large maturity of a bond issue that is created by aggregating a series of maturities. A provision is often made for the mandatory redemption of specified amounts of principal during several years prior to the stated maturity, which effectively simulates serial bonds True Interest Cost (TIC) An expression of the average interest cost in present value terms. ive interest cost and should be used to ascertain the best bid in a competitive sale Variable Rate Bond A bond on which the interest rate is reset periodically, usually no less often than semi-annually. The interest rate is reset either by means of an auction or through an index Upgrade An increase in credit rating AGENDA INFORMATION SHEET AGENDA DATE : March 2, 2010 DEPARTMENT : Finance ACM: Jon Fortune SUBJECT Consider adoption and collection policies that are contained in the Denton Code of Ordinances, Chapter 26, -3, 26-4, 26-5, 26-6, 26-8 and 26-9; providing an open meetings clause; providing a cumulative clause; providing a repealer; providing a severability clause; providing an effective date (The Public Utilities Board recommends approval of this item by a vote of 5-0). BACKGROUND During the summer of 2008, the Customer Service department participated in the management study conducted by Navigant Consulting. The results of the study provided an evaluation of the including procedures related to customer credit issuance and revenue collection. especially for a small utility. Contributing factors to the bad debt included a lack of effective customer credit screening, inadequate deposit policies, and ineffective collection efforts. Based on these findings, Navigant recommended that Utilities Customer Service revamp procedures to To assist with prompt implementation of these recommendations, Customer Service once again partnered with Navigant in July 2009. The goal of this collaborative effort was to introduce a strategy that bases collection activity on customer credit risk. By adhering to a risk based system, Customer Service can make processes easier for good paying customers and protect the City from bad debt associated with high risk customers. The proposed processes can be used to guide decision making when working with new, existing, and former customers. An essential part of the proposed process will be to ask customers to verify their identity and participate in a credit check when requesting new service. Based on the results of the credit check or previous payment history with the City, Customer Service employees will determine the appropriate deposit for each customer. rating within the utility billing software. On time bill payment has a positive impact on the credit rating while poor payment habits will affect it negatively. This credit rating will then be used as the basis for reevaluating deposit coverage and determining the timing and type of collection action. Agenda Information Sheet March 2, 2010 Page 2 payment history, Customer Service will have the ability to provide a custom experience to the and limit the annual bad debt. This information is discussed in more detail in nd the Work Session materials that are included with the March 2 Agenda. PRIOR ACTION/REVIEW (Council, Boards, Commissions) During the summer of 2008, the City Council and Public Utilities Board reviewed the Navigant Management Report prepared for Denton Municipal Electric. On January 26, 2009, a Customer Service strategy was presented to the Public Utilities Board. The Board recommended that staff proceed with the suggested strategy. On March 10, 2009, a Customer Service strategy was presented to the City Council. The City Council recommended that staff proceed with the suggested strategy. On February 22, 2010, the Public Utilities Board (PUB) discussed this issue and recommended, by a vote of 5-0, implementation of the proposed ordinance changes. In addition, the PUB requested that staff conduct further research regarding whether interest should continue to be credited to customer deposits. This information will be researched and discussed at subsequent meetings with the PUB and City Council. Respectfully submitted: Bryan Langley Director of Finance Prepared by: Ethan Cox Customer Service Manager ORDINANCE NO. 2010-_______ AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING THE CITY’S UTILITY CREDIT AND COLLECTION POLICIES THAT ARE CONTAINED IN THE DENTON CODE OF ORDINANCES, CHAPTER 26, “UTILITIES,” SECTIONS 26-3, 26-4, 26-5, 26-6, 26-8, AND 26-9; PROVIDING AN OPEN MEETINGS CLAUSE; PROVIDING A CUMULATIVE CLAUSE; PROVIDING A REPEALER; PROVIDING A SEVERABILITY CLAUSE; PROVIDING AN EFFECTIVE DATE (THE PUBLIC UTILITIES BOARD RECOMMENDS APPROVAL OF THIS ITEM BY A VOTE OF 5- 0). WHEREAS, in the summer of 2008 the Customer Service department participated in the management study conducted by Navigant Consulting (“Navigant”). The results of that study provided an evaluation of the department’s current processes including procedures related to customer credit issuance and revenue collection. Navigant’s findings indicated that the City’s annual bad debt is high, especially for a small utility. These findings were a lack of effective customer credit screening, inadequate deposit policies, and ineffective collection efforts. Navigant recommended that Utilities Customer Service revamp procedure in order to reduce the City’s bad debt load as well as to enhance the utility customer experience; and WHEREAS, in order to implement the Navigant recommendations, Customer Service once again partnered with Navigant in July, 2009. The goal of this collaborative effort was to introduce a strategy that bases collection activity on consumer credit risk. By going into a risk-based system, Customer Service can make processes easier for good paying customers and protect the City from bad debt that is associated with high risk customers. The processes that are a part of this ordinance can be used to guide decision making when working with new, existing, as well as former customers; and WHEREAS, Chapter 26 of the Denton Code of Ordinances presently addresses the subjects of utility service deposits and the collection of accounts regarding all City utility customers; this ordinance clearly provides amended and updated collection procedures for all City utility customers that are beneficial to both the City and to its utility customers. This ordinance implements credit reporting requirements for all customers as well, and states the criteria and alternatives for establishing utility service; and WHEREAS, the City Council of the City of Denton deems it to be in the public interest to adopt these amendments to the Code of Ordinances as set forth herein, NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings contained in the preamble of this ordinance are incorporated herein as if fully set forth within the body of this ordinance. - 1 - SECTION 2. The following sections of the City of Denton Code of Ordinances, Chapter 26, “Utilities” are hereby amended to read as follows: Refer to Exhibit “A” attached hereto which sets forth the provisions of Sections 26- 3, 26-4, 26-5, 26-6, 26-8, and 26-9, in their entirety, as said Sections are now amended by this ordinance. SECTION 3. It is officially found and determined that the meeting at which this Ordinance was passed was open to the public as required by law, and that public notice of the time, place and purpose of this meeting was given as required by law. SECTION 4. This ordinance shall be cumulative of all other ordinances of the City of Denton and shall not repeal any of the provisions of said ordinances except for the sections specifically repealed by this ordinance and in those instances where the provisions of those ordinances are in direct conflict with the provisions of this ordinance. SECTION 5. If any section, subsection, paragraph, sentence, clause, phrase, or word in this ordinance, or the application thereof to any person or under any circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 6. Save and except as amended hereby, all the provisions, sections, subsections, paragraphs, sentences, clauses, and phrases of the City Code of Ordinances shall remain in full force and effect. SECTION 7. This ordinance shall become effective on the date of its approval. PASSED AND APPROVED this the _____ day of _____________ 2010. _______________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By:______________________________ - 2 - APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By:____________________________ - 3 - EXHIBIT “A” ARTICLE I. IN GENERAL Sec. 26-1. Assistant city manager - utilities. (a)Definition. As used in this chapter and wherever it may appear in this Code, the term assistant city manager - utilities or public utilities director shall mean the assistant city manager - utilities of the utilities department. (b)Appointment. The assistant city manager - utilities shall be appointed by the city manager subject to confirmation by the public utilities board. (c)Powers and duties. The assistant city manager - utilities shall have such powers and duties as may be provided by ordinance. (d)Mapping of systems. The assistant city manager - utilities shall prepare and maintain complete, up-to-date maps of the electric, sanitary sewerage and water systems of the city. (Code 1966, § 25-1; Ord. No. 2001-200, § 1, 5-15-01) Sec. 26-2. Right of entry. Employees of the utilities department shall have the authority to enter any house or premises at any reasonable time in the regular line of duty for the purpose of inspecting any water, electric or sewer line or any water or electric meter or for the purpose of making necessary repairs. If such entry is refused, the employee shall have recourse to every remedy provided by law to secure entry. (Code 1966, § 25-5) Cross references: Inspection and abatement warrants, § 19-86 et seq. State law references: Inspection warrants, Vernon's Ann. C.C.P. art. 18.05. Sec. 26-3. Service deposits and alternatives. Employees of the utilities customer service department will determine the appropriate service deposit requirement based on the customer’s credit rating with the city utility system or by a reliable external credit source available to the city. (a)Residential customers. If a customer receiving residential service is required to make a deposit, the deposit may be as much as an amount equal to one-sixth of the last twelve (12) months billing at the service location or a similar location as determined by the utility representative. (b)Residential exemption from deposit. No service deposit will be required of an applicant for residential utility service if the applicant can provide and qualify for one (1) of the following: (1) The applicant has an acceptable credit rating for twelve (12) consecutive months within the last two (2) years with the city utility system. (2) The customer receives an acceptable credit rating from a credit source available to the city. The customer must pay the cost of obtaining the credit rating. This cost will be set annually within the utility rate ordinance, but will not exceed one hundred dollars ($100.00). (3) Customers with little credit history or a fair credit rating may be allowed to provide one of the following alternatives in lieu of deposit: a.A signed letter of good standing for utility services from a former utility company for verification within twenty (20) days of applying for service; or b. The applicant provides a cosigner who accepts responsibility and is verified to have an acceptable credit rating with the city utility system, and who is willing to be listed on the applicant’s account to guarantee payment of the applicant's utility bills. This guarantee will be in effect until the applicant develops an acceptable credit rating and the cosigner requests removal from the account. For purposes of this chapter, "acceptable credit rating" shall mean a credit rating which is based upon a commonly used formula or a formula approved by the city council. (c)Commercial customers. In the case of commercial or industrial service, if the applicant for service is required to make a deposit, the amount of the deposit shall be an amount up to one-sixth of the last twelve (12) months of billing at the location where service is requested. If no previous history is available for the location, a representative facility similar to the type where service is requested will be used to establish the amount of the deposit. (d)Commercial exemption from deposit. An applicant for utility service for a commercial or industrial entity or business may not be required to make a deposit if the applicant: (1) Provides the city an acceptable commercial/industrial credit rating for the last twenty-four (24) months the customer received service from the city utility system; or (2) The customer receives an acceptable credit rating from a credit source available to the city. The customer must pay the cost of obtaining the credit rating. This cost will be set annually within the utility rate ordinance, but will not exceed one hundred dollars ($100.00). (3) If the credit of a commercial/industrial customer for service has not been established satisfactorily to the city, the applicant may provide an irrevocable letter of credit in lieu of a deposit within twenty (20) days of signing for service. The irrevocable letter of credit must be executed by a Texas bank and must be approved by the city manager and city attorney. The customer must maintain the irrevocable letter of credit in effect at all times. If the customer allows the irrevocable letter of credit to expire, the customer shall pay a deposit in the amount provided as listed above, or the city may terminate utility service. (Code 1966, § 25-4; Ord. No. 94-132, § I, 7-19-94; Ord. No. 2001-200, § 1, 5-15-01; Ord. No. 2002-316, § 1, 9-17-02) Sec. 26-4. Additional deposit required. (a)Additional deposits. The city may require a customer to make an additional deposit in the event that a deposit made as specified in subsection (a), (b), (c), or (d) is subsequently determined to no longer be sufficient. The city may disconnect service if the customer does not remit the additional deposit within fourteen (14) days of the city’s request, provided a written disconnect notice has been issued. Such disconnect notice may be issued concurrently with the written request for the additional deposit. A customer may be required to pay a deposit or put down an additional deposit amount if: (1) The customer has been terminated from the receipt of utility service due to non-payment of a utility bill; or (2) The city has determined there is evidence of a customer tampering with the city's meter; or (3) The customer has an unacceptable credit rating and the city does not have in its files a current cosigner who meets the requirements of section 26-3(a) or (b); or (4) The customer has been required to pay or is paying off a utility account balance previously deemed uncollectible or is past due; or (5) The customer's irrevocable letter of credit filed with the city in lieu of a deposit has expired. (b)Interest. The city shall pay interest on deposits at an annual rate established by city council. If a refund of the deposit is made within thirty (30) days of receipt of the deposit, no interest will be paid. If the deposit is retained more than thirty (30) days, payment of interest shall be retroactive to the date the entire amount of deposit has been made. The deposit shall cease to draw interest on the date it is returned or credited to the customer's account. Payment of the interest to the customer shall be made at the time the deposit is returned or credited to the customer's account. If the customer's account is active, the deposit will automatically be applied to the customer's account to offset current billing. (c)Credit checks. After making application for service, the customer service department may at any time pursue a credit reference check. If the credit check shows the customer does not have an acceptable credit rating, the customer will be required to place a deposit on the account. Failure to do so will result in the discontinuance of service with no less than two (2) days of notification given verbally or in writing, to the prospective customer by the customer service department. (Ord. No. 94-132, § I, 7-19-94; Ord. No. 2001-200, § 1, 5-15-01; Ord. No. 2002-316, § 1, 9-17- 02) Sec. 26-5. Refunds of deposits. The city shall refund deposits to applicants and customers if one of the following events occurs: (1) The customer's service has been disconnected. The city shall refund the deposit plus accrued interest less any outstanding balances. A transfer of service from one service location to another shall not be deemed a disconnection and the city shall not require an additional deposit unless authorized by section 26-3 or section 26-4 hereof. (2) When the customer has paid bills and avoided delinquent status for service for twelve (12) consecutive residential billings without having service disconnected for non-payment of bills, or meter tampering, and provided the customer is not delinquent in the payment of the current bill. The city shall then, in that event, refund the deposit (plus accrued interest) to the customer in the form of a credit to the customer's account. (Ord. No. 94-132, § I, 7-19-94; Ord. No. 2001-200, § 1, 5-15-01; Ord. No. 2002-316, § 1, 9-17- 02) Sec. 26-6. Other fees. (a)Installation charge. A first service connection charge in an amount established by the city council and on file in the office of the city secretary will be charged to customers requesting electric service, where no permanent service previously existed and where a new account number is established. (b)Connection charge. A connection charge in an amount established by the city council and on file in the office of the city secretary will be charged to customers requesting water and/or electric service (c)Delinquent service charge, reconnect charge, and deposit. If water and/or electric utility service is processed for nonpayment, then the customer will be required to pay a delinquent service charge or reconnect charge in an amount established by the city council and on file in the office of the city secretary and establish and maintain a deposit sum up to one-sixth of the last twelve (12) months' billings on billing at the location where service is requested. If a twelve (12) month history is not available, an estimated usage will be used to determine the deposit amount. (d)Unauthorized usage penalty. If a customer fails to request a water and/or electric connection within twenty-four (24) hours of occupancy in a new service location, then the customer will be required to pay an unauthorized usage penalty in an amount established by the city council and on file in the office of the city secretary. (e)Meter reading charge. If a customer requests a reading of a city meter due to a contested billing more than two (2) times in the previous twelve (12) months and if no error is found, the customer will be charged a meter reading charge. The meter reading charge will be in an amount established by the city council and on file in the office of the city secretary. (f)Meter testing charge. If a utility customer requests the testing of a city meter that was previously tested within the past four (4) years and the meter is found to be within accuracy standards, the customer will be charged a meter testing charge. The meter is defined as within accuracy standards when found to be plus or minus two (2) percent or less. This meter testing charge will be established by the city council and on file in the office of the city secretary. (g)Meter tampering and/or damage charge. A meter tampering charge will be required of any person that tampers with, damages, or illegally connects to any city electric, or water, or wastewater system. The meter tampering charge will be established by the city council and on file in the office of the city secretary. (h)Meter inaccessibility charge. A meter inaccessibility charge will be required of any customer that prevents the regular and routine reading or repair, maintenance or replacement of any city electric or water meter. The meter inaccessibility charge will be established by the city council and on file in the office of the city secretary. (i)Returned payment charge. If a customer has a check, money order, or bank draft that has been dishonored by the maker's bank and returned to the city as unpaid, the customer will be required to pay a returned payment charge in an amount established by the city council and on file in the office of the city secretary. (j)Late payment charge due on delinquent balances. A late payment charge will be assessed on past due balances on the fifth business day following the due date. The late payment charge will be established by the city council and on file in the office of the city secretary. (k)Interest charge on past due account balances. Interest shall be assessed on any past due account balance (excluding late payment charges) that remains unpaid prior to the current month's billing calculation. Interest shall be assessed based on the customer's monthly billing schedule and the due date of the customer's past due bill. The interest charge shall be due and payable on the due date of the current month's billing. The interest charge will be established by the city council and on file in the office of the city secretary. (l)Application fee. An application fee may be charged if the customer cannot provide a satisfactory credit rating through previous service history with Denton Municipal Utilities. The application fee will be established by the city council and will be on file in the office of the city secretary. (Ord. No. 94-132, § I, 7-19-94; Ord. No. 2001-200, § 1, 5-15-01; Ord. No. 2002-316, § 1, 9-17- 02) Sec. 26-7. Service prohibited to premises in violation of city ordinances. No utility service of the city or connection for such service shall be furnished or provided to any person engaged in the erection, construction, alteration or repair of any building or premises or any part thereof or engaged in the excavation or the laying of the foundation for any building or premises or part thereof where any part of such building or premises is being erected, constructed, altered or repaired in violation of any ordinance of the city. (Code 1966, § 25-2; Ord. No. 94-132, § III, 7-19-94) Sec. 26-8. Grounds for discontinuance of service. (a) The assistant city manager-utilities, or his designee, shall discontinue service to any person violating any provision of this chapter or any published rule or regulation of the utilities department, or of the city, until such violation has been corrected. (b) The assistant city manager-utilities, or his designee, shall discontinue service to any person found defrauding the utilities department by tampering with any water or electric line or meter. Service disconnected for any such reason shall not be restored until the assistant city manager-utilities, or his designee, is satisfied that all loss to the utilities department has either been repaid, or is financed for repayment, and that service may be restored without undue risk of further loss through such acts or nonpayment. (c) Subject to the approval of the city manager, the assistant city manager-utilities, or his designee, shall discontinue service to any person found to be unreasonably wasting or diverting electricity or water. (d) Utility services may be terminated if payments become delinquent. The city may terminate services at any time upon delinquent status of an account. Once services are terminated, any deposit held by the city will be applied to the delinquent account when the final bill is generated. If the customer wishes to reconnect services, the customer will be required to pay a delinquent service charge or a reconnect charge and the remaining balance of the delinquent amount or at least fifty (50) percent with an agreement to pay the remainder with three (3) consecutive equal monthly installments. The city may refuse service and require payment in full, based on the credit history of the customer. For continued service, the city will require an additional deposit amount as described in 26-4. (Code 1966, § 25-3; Ord. No. 94-132, § III, 7-19-94; Ord. No. 2001-200, § 1, 5-15-01; Ord. No. 2002-316, § 1, 9-17-02) Sec. 26-9. Billing and collection for services. (a)Due date for payment of statements. The due date for the payment of the bill for utility services shall not be less than ten (10) business days after issuance. Payment must be posted to the customer’s account by close of business on the due date, in order to avoid assessment of a delinquent penalty. Payments placed in the mail and showing a postmark on the due date will not be considered as being received on the due date. In addition payments made through alternative sources such as, telephone, remote payment locations, drop box, or internet, will be accepted according to the terms established for those services. These payment requirements will be made available on the customer’s utility bill, the city’s website, and posted at customer access points when possible. (b)Discontinuance of service for nonpayment. Each customer of the city's utility system who has not paid by the due date as noted on the billing, or according to finance agreements, is eligible for disconnect after the due date upon two (2) days notice. (c)Notice of termination of services. A customer will be notified on his current utility statement that his service is eligible for disconnection if payment is not received by the terms stated on the current bill. The notice will inform the customer that he should remit payment immediately to avoid disconnection. Should the customer contact the utility customer service department within a five (5) day period and prior to disconnection of utility services to present any evidence or argument concerning the statement or amount of utility service provided by the city, the customer will be required to pay any amounts not registered by the customer service department as under dispute by the due date. Any disputed items must be resolved within sixty (60) days of notification to utility customer service. The city will attempt to call the customer and provide a verbal warning of termination of services at least two (2) days prior to actual termination. (d)Alternatives to termination of service. A customer with a past due or delinquent balance may avoid termination of utility service by doing one (1) of the following: (1) Paying the total amount due by the specified due date; (2) Requesting a payment arrangement with the utility customer service department that will allow five (5) additional days beyond the scheduled disconnection date to make payment. A customer may apply for a payment arrangement no more than once every six (6) months. (3) Arranging with the utility customer service department for a short-term payment agreement that would require down payment of at least fifty (50) percent of the outstanding bill and payment of the remaining amount in not more than three (3) consecutive equal monthly payments. A customer may apply for a short- term payment agreement no more than once every six (6) months. (e)Certain adjustments prohibited. No adjustment will be made in any monthly bill because of any water or electric leak or loss, unless otherwise stated in this ordinance. No allowance shall be made on utility bills because of use of less service than the quantity set as the basis for the minimum charge. (f)Service meters required. Each customer maintaining a separate residence, either house or apartment, shall have a separate water meter and electric meter and a separate service connection to the city sewer lines; provided, however, that multiple dwellings containing less than four (4) units may be served by one (1) water and one (1) electric meter and one (1) sewer service connection and will be billed under the residential multiple block rate. Multiple dwellings containing four (4) or more units which do not have separate metering and service facilities shall be classified as commercial buildings for utility purposes and shall be billed under the applicable commercial rates. (g)Notice of service changes required. Any customer or prospective customer of the city utility system moving into or out of a building where electric, water, sewer or solid waste service is or will be provided, shall give a minimum of twenty-four (24) hours notice to the customer service department prior to the proposed date of connection or disconnection of utilities. If the customer fails to give proper notification for connection, he will be required to pay an unauthorized usage penalty and payment for services shall be prorated based on evidence provided by the customer or available to utility services and the amount billed will be due and payable by the customer. (h)Proration of utility bills. The billings for utilities consumption may be calculated on a thirty-day basis and prorated higher or lower for longer or shorter billing periods respectively. (i)Proration of customer facility charge. All monthly customer facility charges contained in this chapter shall be prorated higher or lower for billing periods longer or shorter than thirty (30) days, respectively. In such cases, the actual number of days in the reading period shall be divided by thirty (30) days, then multiplied by the net monthly charge to arrive at a customer facility charge. (j)Estimated billings and billing adjustments. The city may estimate active utility services for no more than two (2) consecutive billing periods. This estimate shall be considered the current month billing and must be paid accordingly. The city shall also have the right to provide billing adjustments, consisting of back-billing or back credits, on prior billings for a period up to, but no greater than two (2) years. These prior period billing adjustments must be based on actual meter readings, verifiable evidence, or proration based on actual readings. (k)Rejection of application for services. An application may be rejected if utility customer service has a record of previous past due accounts owing by the applicant and/or any occupant therein that will receive benefit of the services provided to the service location. The city has the option of requiring these amounts to be paid in full or transferring the amounts to the new service account. (Code 1966, § 25-6; Ord. No. 94-132, §§ III, IV, 7-19-94; Ord. No. 2001-200, § 1, 5-15-01; Ord. No. 2002-316, § 1, 9-17-02) Sec. 26-10. Budget billing customer option. Any residential or local government utility customer of the city may request to be billed for electrical, water, sewer and/or sanitation services based upon an average billing amount. The eligibility and calculation criteria are as follows: (1)The customer shall request budget billing in accordance with the provisions of this section. The customer must have established residence and have a good credit history within the past six (6) months with the city. Budget billing will not be open for enrollment during the four (4) months preceding the settlement month, or 12-month, of the budget billing year. (2)The city may accept or deny the request based on the customer's credit history and circumstances as presented by the customer. Upon acceptance of the request, the city will compute the budget billing amount based on the last twelve (12) months of billing, and adjusted for any rate changes that would affect the budget billing calculation and as described in this subsection. The customer shall be billed this budget billing amount for the remaining months after approval of the application. On the settlement month, or twelfth billing month, the city will credit the customer's account for any accumulated amount in excess of the actual twelve (12) months' consumption. If the amount is greater than two (2) average monthly billings, the customer can request that the amounts be refunded, if requested prior to the due date of the credit. If the amount remaining represents an amount owed by the customer to the city, the customer shall have until the due date of the current billing to pay the additional amount due. The customer's account may be reviewed quarterly, and the budget billing amount may be adjusted based upon the current billings. (3)Monthly billing amount calculation. The city will compute the customer's monthly budget billing amount by totaling the billings for the services for the previous twelve (12) months. If twelve (12) months of billing history is not available, utility customer service may estimate the billing based upon the best available information. These budget billing averages can be adjusted to reflect any rate changes that would likely increase or decrease the average annual billing amount. These annual billing amounts will be divided by eleven (11) to produce estimated usages per month for the next twelve (12) months. (4)The city may provide budget billing for utility services based upon the customer's length of residence, credit history, and upon information provided by the customer. Upon approval, the customer's written or oral consent shall constitute a legal agreement between the customer and the city. The customer must comply with the terms of this section, the terms of the agreement, and the budget billing policies of the city. (5)Termination of budget billing services. Any late payment (payment received after the billing due date) of any budget billing which occurs more than twice in a twelve-month period shall be cause for discontinuation of budget billing. Any returned check will also constitute a reason for termination of this service. Such customer may not re-qualify for such program until the customer re-establishes at least six (6) months of qualifying payment history. After a second removal from the program, a customer may not re-qualify for such program until after the expiration of one (1) year and a consecutive six (6) months of qualifying payment history. (Code 1966, § 25-6.1; Ord. No. 94-132, § III, 7-19-94; Ord. No. 2001-200, § 1, 5-15-01; Ord. No. 2002-316, § 1, 9-17-02) Sec. 26-11. Electrical meters, electrical meter terminal boxes and supply conductors; water meters and water distribution mains and lines. (a) It shall be unlawful for any person, other than an officer or employee of the city within the department of electric utilities or fire department, to knowingly or intentionally: (1) Remove or cause to be removed any electrical meter owned by the city from any electrical meter terminal box; (2) Remove or cause to be removed the cover or any other part or portion from any such meter or terminal box or loosen or cause to be loosened any part or portion thereof; (3) Insert or cause to be inserted any foreign object or inject or cause to be injected any foreign substance into any such meter or terminal box; (4) Make or cause to be made any adjustment in the mechanism of any such meter; or (5) Tap onto or connect or cause to be tapped onto or connected any wire to the supply conductor of any such terminal box. (b) In the prosecution of any offense charged under subsection (a)(1) of this section, it shall be a complete defense to such offense if the person charged shows to the court by legal and competent evidence: (1) That such meter was removed for the purpose of protecting life or preserving property being immediately threatened by a hazard on the premises served by such; (2) That such meter was removed for the purpose of preventing a hazard to the structure served by it due to a short circuiting in the electrical conductor between the terminal box in which such meter was housed and a main line switch or fuse box; or (3) That such meter was removed by a duly licensed electrician to facilitate the repair of the defective electrical conductor or for checking the supply voltage and at a time when an employee of the city within the department of electric utilities was not available to remove such meter. (c) In the event of the removal of any electrical meter by a duly licensed electrician under the circumstances enumerated in subsection (b)(3) of this section, the fact of such removal and the circumstances permitting the removal must be reported to the superintendent of the electric distribution division of the department of electric utilities by such electrician not later than one (1) hour after the commencement of the workday of such municipal employee next following such removal. (d) Unless written permission is first obtained from the superintendent of the water distribution division of the department of utilities of the city, it shall be unlawful for any person, other than an officer or employee of the city within the department of utilities, to knowingly or intentionally: (1) Tap onto or connect or cause to be tapped onto or connected any pipe with any water distribution main or line owned by the city; (2) Disconnect or cause to be disconnected any such water meter from any such water distribution main or line owned by the city; (3) Remove or cause to be removed the cover from any such water meter; or (4) Disconnect or cut off the water service to a structure, dwelling or building. All meters, curb cocks, valves and meter boxes connected with the city water mains and service pipes, including those furnished at the expense of the consumers or property owners, shall remain under the direct control of the department of utilities, and it shall be unlawful for any person other than those licensed to do plumbing or those with special permission from the city utilities department to connect, disconnect, move or tamper with any such meter or to turn on or off the water at the curb cock, valve or meter box in any way except with a regulation meter brass key. No bypass or connection between the meter and the main shall be made, maintained or permitted except upon written permission from the department of utilities. (e) If any such water meter is found to have been removed, if the cover or any part or portion of any such meter or terminal box is found to have been removed, if any part or portion thereof is found to have been loosened, if any foreign object is found to have been inserted or any foreign substance is found to have been injected into any such meter or terminal box, if any adjustment is found to have been made in the mechanism of any such meter, if any wire has been found to have been tapped onto or connected to the supply conductor of any such terminal box, if any pipe is found to have been tapped onto or connected with any such water distribution main or line, if any such water meter is found to have been disconnected from any such water distribution main or line or if there is the finding at any time of any fact, circumstance or condition on or about any such electrical meter, terminal box, conductor, water meter or water distribution main or line tending to show or evidencing that any such act has been committed or performed in violation of any portion or provision of this section, the fact, circumstance or condition shall be and constitute prima facie evidence and a rebuttable evidentiary presumption of knowledge on the part of the person having subscribed for electric or water service through any such electric or water meter or the person having the custody, control or management of the building, room or place for which such subscription is made of the performance or commission of any such act prohibited under the terms and provisions of this section that such subscriber or other person performed or committed such act or caused or occasioned the performance or commission of the act and shall bring such subscriber or other person prima facie within the scope, meaning and penalties of this chapter. (Code 1966, §§ 17-11, 25-8; Ord. No. 94-132, § III, 7-19-94) Secs. 26-12--26-35. Reserved. ̸·­ °¿¹» ´»º¬ ¾´¿²µ ·²¬»²¬·±²¿´´§ò ̸·­ °¿¹» ´»º¬ ¾´¿²µ ·²¬»²¬·±²¿´´§ò AGENDA INFORMATION SHEET AGENDA DATE: March 2, 2010 DEPARTMENT: Electric Department ACM: Howard Martin, 349-8232 SUBJECT: Consider adoption of an ordinance of the City of Denton, Texas amending the Denton Municipal Electric Rate Ordinance contained in Ordinance No. 2009-218, solely as to Rate Rider ECA (Energy Cost Adjustment); providing for a repealer; providing for a severability clause; providing for an effective date. The Public Utility Board recommends approval (5-0). BACKGROUND: Proposedamendment solely to Schedule ECA to the FY 2009-2010 Electric rate ordinance. The proposed amendment to Schedule ECA is attached hereto. OPTIONS: Approve, modify or deny the proposed amendment to ordinance. RECOMMENDATION: Staff recommends approval. CITY COUNCIL: Set for the March 2, 2010 Closed Meeting and the Consent Agenda for that Council Meeting. PRIOR ACTION: Presented and discussed in the January 4, 2010, January 11, 2010, and February 8, 2010 PUB Closed Meetings. Presented to the Council in its Closed Meeting on February 16, 2010. Presented again to the PUB on February 22, 2010 in its Closed Meeting. FISCAL INFORMATION: No impact upon DME ratepayers. EXHIBITS: 1. Ordinance 2. PUB Meeting Minutes Respectfully submitted, ___________________ Michael S. Copeland Utility Attorney ORDINANCE NO. 2010-_________ AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING THE DENTON MUNICIPAL ELECTRIC RATE ORDINANCE CONTAINED IN ORDINANCE NO. 2009-218, SOLELY AS TO RATE RIDER ECA (ENERGY COST ADJUSTMENT); PROVIDING FOR A REPEALER; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. The City of Denton, Texas sets rates for electric energy usage and electric services rendered for the ratepayers of Denton Municipal Electric that must take into account many financial factors, such as the price of energy, and these factors are constantly changing; the Public Utilities Board has received information and briefings during three of its meetings in the year 2010, and has fully discussed and now unanimously recommends to the City Council an amendment solely to Electric Rate Ordinance - Schedule ECA, in order to reflect and take into account the changed financial factors, the present needs of Denton Municipal Electric and the need to achieve rate stabilization for its ratepayers; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The Schedule of Rates for electrical services as provided for in Chapter 26 of the Denton Code of Ordinances, is amended solely by substituting the attached Schedule ECA (Energy Cost Adjustment), in lieu of and in substitution for the previous Schedule ECA, which appeared at pages 38-39 of Ordinance No. 2009-218, signed and approved by the Council on September 22, 2009: ELECTRIC RATE SCHEDULE Pages Schedule ECA - Energy Cost Adjustment 38-39 SECTION 2. All ordinances or parts of ordinances in force when the provisions of this ordinance become effective which are inconsistent, or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict. SECTION 3. If any section, subsection, paragraph, sentence, clause, phrase or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 4. The amended Schedule ECA – Energy Cost Adjustment is attached hereto as Exhibit “A” and is incorporated herewith by reference for all purposes. SECTION 5. This ordinance and the rate herein adopted as the amended Schedule ECA – Energy Cost Adjustment shall become effective, charged, and applied to the electric services rendered by Denton Municipal Electric and all energy usage pertaining to this rate, by customers of Denton Municipal Electric, on or after March 2, 2010, and a copy of said rates shall be maintained in the office of the City Secretary. PASSED AND APPROVED this the ______ day of __________________, 2010. __________________________________ MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: _________________________________ APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY By: _________________________________ SCHEDULE ECA ENERGY COST ADJUSTMENT (Effective 03/02/10) The Energy Cost Adjustment (ECA) rate shall be set by the Public Utilities Board (PUB). The ECA rate shall be reviewed on a monthly basis and adjusted as defined below to recover the variable cost of energy delivered to customers. Variable energy cost includes the variable cost of Texas Municipal Power Agency (TMPA) energy (excluding the portion of TMPA’s energy charge associated with fixed costs), the variable cost of purchased energy (excluding demand payments or fees for services), and fuel costs. ENERGY COST ADJUSTMENT BALANCING ACCOUNT CALCULATION The ECA Balancing Account shall be calculated using the following formula: ECA Balancing Account = (Actual plus Projected ECA revenue) – (Projected Energy Cost) Where: Projected Energy Cost = (Actual plus Projected cumulative cost of fuel) +(Actual plus Projected cumulative variable cost of TMPA energy) + (Actual plus Projected cumulative variable purchased energy cost). The General Manager, Denton Municipal Electric (DME) or his/her designee shall calculate the ECA Balancing Account balance monthly. In the event that the ECA Balancing Account balance calculated during the last month of each fiscal quarter (December, March, June, and September) is greater than or less than zero dollars ($0) by $5,000,000 or more during the next quarter, the General Manager, DME or his/her designee shall recommend to the PUB an ECA rate adjustment sufficient to recover/return any under/over collection, and maintain DME in a financially sound position. The PUB shall consider that recommendation and may adjust the ECA rate for the quarter immediately following as necessary to maintain DME in a financially sound position. ENERGY COST ADJUSTMENT CALCULATION ECA = [(Projected Energy Cost) + (ECA Balancing Account)]/(Projected kWh sales) ENERGY COST ADJUSTMENT CHARGE The Energy Cost Adjustment Charge shall be based on actual kWh consumption during the billing period. Energy Cost Adjustment Charge = kWh ECA rate EXTRAORDINARY CIRCUMSTANCE ECA RATE ADJUSTMENT In the event that the ECA Balancing Account balance calculated for any month is greater than or less than zero dollars ($0) by $10,000,000 or more during the next month, the General Manager, DME or his/her designee shall recommend to the PUB an ECA rate adjustment sufficient to recover/return any under/over collection, and maintain DME in a financially sound position. The PUB shall consider that recommendation and may adjust the ECA rate for the month immediately following as necessary to maintain DME in a financially sound position. DRAFT MINUTES 1 2PUBLIC UTILITIES BOARD 3February 22, 2010 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, February 22, 2010 at 9:12 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 and Bill Grubbs 11 12 Ex Officio Members: 13 George C. Campbell, City Manager 14 Howard Martin, ACM Utilities 15 Absent 16: John Baines and Barbara Russell, both excused 17 OPEN MEETING: 18 19 CONSENT AGENDA: 20 21The Public Utilities Board has received background information, staff’s recommendations, and 22has had an opportunity to raise questions regarding these items prior to consideration. 23 241)Consider recommendation of amendment of the Electric Rate Ordinance, Rate Rider ECA. 25 Board Member Cheek moved to approve Item 1 with a second from Board Member 26 Robinson. The motion was approved by a 5-0 vote 27. 28 29The meeting was adjourned by consensus at 10:20 a.m. 30 AGENDA INFORMATION SHEET AGENDA DATE: March 2, 2010 DEPARTMENT: City Manager’s Office CM/DCM/ACM: George C. Campbell, City Manager SUBJECT: Consider adoption of an ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas and Tejas Storytelling Association for supplemental funding for entertainment at the Texas Storytelling Festival; providing for the expenditure of funds therefore; and providing for an effective date. BACKGROUND: This agreement allows for the total expenditure of $550 ( Mayor Mark Burroughs, $100; Mayor Pro Tem Pete Kamp, $100; Council Member Charlye Heggins, $100; and Council Member Dalton Gregory, ) from Council Contingency Funds. Key provisions of the agreement include: $250 Funds shall be used by the Foundation to provide financial assistance for funding of entertainment for the Texas Storytelling Festival. In addition to other reporting requirements, documentation in the form of cancelled checks and/or corresponding receipts specifically detailing expenditure of funds for the purpose provided is required for reimbursement from these designated funds. FISCAL INFORMATION Funding for the contract will come from respective Council contingency fund accounts. Respectfully submitted: George C. Campbell City Manager Prepared by: Linda Holley Executive Assistant ̸·­ °¿¹» ´»º¬ ¾´¿²µ ·²¬»²¬·±²¿´´§ò AGENDA INFORMATION SHEET AGENDA DATE: February 9,2010 DEPARTMENT: Planning and Development ACM: Fred Greene ______________________________________________________________________________ SUBJECT- A10-0001 2010 City initiated involuntary annexation Consider the adoption of ordinances providing for acceptance of eligible Non-Annexation Agreements for agricultural, wildlife management, or timberland use properties within certain proposed annexation areas loca The areas are identified and generally located as follows: 1.PAA1: 1,158 acres, located on the south side of Jim Christal Road; north side of Tom Cole Road; west of Masch Branch Road; 2.PAA2 South: 1,479 acres, located on the south side of FM 1173; north of W. University Drive; west of I-35; 3.PAA3: 1,085 acres, located on the South side of Ganzer Road; north and south of Barthold Road; north of FM 1173; west of I-35; 4.PAA4: 1,550 acres, located on the south side of Milam Road; north of Loop 288; east of I-35; 5.DH-2: 258 acres, located on the south side of University Drive; west and east sides of Thomas J. Egan Road; north of Jim Christal Road; west of Masch Branch Road; 6.DH-3: 436 acres, located on the south side of Spring Side Road; north, south and west of Corbin Road; west of I-35; 7.DH-4: 347 acres, located on the east side of Bonnie Brae Street; west of Fort Worth Drive; east and west of Vintage Boulevard; and, 8.DH-11: 387 acres, located southeast of the intersection of Mayhill Road and McKinney Street. BACKGROUND Applicants: City of Denton On February 2, 2010, the Denton City Council conducted the first of two required readings to consider the adoption of fifteen (15) ordinances under the involuntary annexation procedures for areas exempted from the municipal annexation plan. The proposed annexation is in multiple ownerships, consists of fifteen (15) distinct areas, and totals approximately 7,496 acres. The 15 areas are located , and are identified as PAA1, PAA2 South, PAA3, PAA4, DH-1, DH-2, DH-3, DH-4, DH-5, DH-6, DH-8, DH-10, DH-11, DH-13, and DH-14. In addition to the adoption of the above mentioned annexation ordinances, the Denton City Council also adopted a Service Plan, and Non-Annexation Agreements for some of the eligible parcels within the annexation areas. There were several other parcels that qualified for a Non- Annexation Agreement; however, certain required documents were incomplete at the time of the February 9, 2010 first reading. These documents have since been completed, and it is therefore appropriate to adopt Non-Annexation Agreements for these parcels. SUMMARY OF ACTIONS The following is a summary of the actions taken by the City in associated with the annexations: 1.Staff conducted an annexation study including a priority ranking of areas identified for potential annexation; September 1, 2009 2.On , staff presented a priority ranking of the areas proposed for annexation and received direction from the City Council to proceed with the annexation process of specific areas; December 9, 2009 3.On , staff presented the results of the annexation study, including the goals of the proposed annexation, and planning rationale of selecting the areas identified for annexation to the Planning and Zoning Commission (P & Z) via a work session. At the conclusion of the presentation, the P&Z Commission voted unanimously to recommend annexation of the identified areas; January 12, 2010 4.On , City Council held the first of two (2) required public hearings; and January 19, 2010 5.On , City Council held the second of two (2) required public hearings. February 9, 2010 6.On , the Denton City Council conducted the first of two required readings to consider the adoption of fifteen (15) ordinances under the involuntary annexation procedures for areas exempted from the municipal annexation plan; the adoption of a Service Plan; and the adoption of Non-Annexation Agreements for some qualified parcels. OPTIONS 1.Adopt the Non-Annexation Agreements as proposed. 2.Amend the Non-Annexation Agreements. RECOMMENDATION Staff recommends that the adoption of the Non-Annexation Agreements as presented. EXHIBITS 1.Areas Proposed for annexation; 2.PAA1 Annexation Area Location Map (including area survey and metes and bounds description); 3.PAA2 South Annexation Area Location Map (including area survey and metes and bounds description); 4.PAA3 Annexation Area Location Map (including area survey and metes and bounds description); 5.PAA4 Annexation Area Location Map (including area survey and metes and bounds description); 6.DH-2 Annexation Area Location Map (including area survey and metes and bounds description); 7.DH-3 Annexation Area Location Map (including area survey and metes and bounds description); 8.DH-4 Annexation Area Location Map (including area survey and metes and bounds description); 9.DH-11 Annexation Area Location Map (including area survey and metes and bounds description); 10.Annexation Schedule Prepared by: Respectfully submitted: Mark Cunningham, AICP, CPM Fred Greene Director of Planning and Development Assistant City Manager EXHIBIT I Areas Proposed for Annexation EXHIBIT 2 PAA1- Area Survey Location: South side of Jim Christal Road; north side of Tom Cole Road; west of Masch Branch Road. Area: Approximately 1,158 acres PAA1- Legal Description BEGINNING at point at the northwest corner of property described in Ordinance 2006-205, and further described is said Ordinance as a 1/2 inch pin in the Center of Tom Cole Road (east-west road) and C. Wolfe Road from the south; THENCE along the northerly line of the property described in Ordinance 2006-205, and further described in said Ordinance as South 88° 55' 44" East, 4685.36, generally with center of said Tom Cole Road to an "x" cut in a concrete bridge; THENCE continuing along the northerly line of the property described in Ordinance 2006-205, and further described in said Ordinance as North 89° 43' 13" East, 2591.29, generally with the center of said Tom Cole Road, to a point described in Ordinance 2006-205 as a 3/4 inch iron pin set at the northeast corner of the property described in Ordinance 2006-205, said point also being described in Ordinance 69-40 as the southeast corner of the David Davis Survey, Abstract 356; THENCE northerly along the easterly line of the said David Davis Survey, said line also being the westerly line of the Wm Wilburn Survey, Abstract 1419, a distance as described in Ordinance 69-40 as 2642 feet to a point being the northeast corner of the said David Davis Survey; THENCE westerly, along the northerly line of the said David Davis Survey and described in Ordinance 69-40 as 341 feet to a point described in Ordinance 69-40 as the southwest corner of the said Wm Wilburn Survey; THENCE northerly along the westerly line of the said Wm Wilburn Survey a distance of approximately 1853 feet to a point described in Ordinance 69-40 as the southeast corner of the M H Davis Survey, Abstract 377, and also described as the northeast corner of a tract of land conveyed to Malcolm M Long by deed recorded in Volume 389, Page 389 of the Deed Records of Denton County, Texas; THENCE in South 89° 28' 15" West, a distance of 2359.92 feet (as described in Ordinance 83- 90) to a point for a corner; THENCE North 0° 05' 54" West a distance of 600.48 feet (as described in Ordinance 83-90) to a. point for a corner; THENCE West 675.60 feet (as described in Ordinance 83-90) to a point for a corner lying in the middle of Hickory Creek; THENCE north along the middle of Hickory Creek with its meanders to the center of Jim Christal Road (as described in Ordinance 83-90) to a point for a corner; THENCE westerly along Jim Christal Road, also the southerly line of the E.A. Orr Survey, Abstract 983 a distance of approximately 3399 feet to a point for a corner: THENCE southerly to the south right of way line of Jim Christal Road; THENCE westerly to the southeast corner of the southerly right of way of Jim Christal Road and easterly right of way of C Wolfe Road; THENCE in a southerly direction, along the easterly right of way line of C Wolfe Road, such line being the new westerly City Limit line for the City of Denton, to the point of beginning. EXHIBIT 3 PAA2 South - Area Survey Location: South side of FM1173; north of W. University Drive; west of I-35 Area: Approximately 1,479 acres F i•.'. 9973 c~ n~ - ,Y i U S. Highvv~iv .9,9, PAA2 -I PAA2S Legal Description BEGINNING at point on the present Denton city limit line, being the northwest corner of a tract described in annexation Ordinance 2007-268, and further described in said ordinance as a right- of-way marker post for a corner in the south line of Farm-to-Market 1173 and in the east line of the Gulf, Colorado and Santa Fe Railroad Company right-of-way; described in Ordinance 2007-268 and along the east line of the Gulf, Colorado and Santa Fe Railroad Company right-of-way a distance of 1,860.04 feet to a point for a corner, said point being the southwest corner of the tract described in said Ordinance 2007-268; described and depicted in Ordinance 2007-268 (Exhibit A and Exhibit A-3 therein) a total distance of 3,411 feet to a point for a corner, said point being the southeast corner of the tract depicted in Ordinance 2007-268 (Exhibit A-3) and said point also lying on the a westerly line of a City of Denton annexation tract established and described in Ordinance 1969-40 (Tract VI); Highway 35, same being the present Denton city limit line established and described in Ordinance 1969-40 (Tract VI), a distance of 1,103 feet to a point for corner, said point lying on the most northerly north line of a City of Denton annexation tract described in Ordinance 1965- 43 (Tract V); THENCE West along the present Denton city limit line as established and described in Ordinance 1965-43 (Tract V) a distance of 244 feet to a point for a corner, said point being the most northerly northwest of said City of Denton annexation tract established and described in Ordinance 1965-43 (Tract V); THENCE South along the present Denton city limit line as established and described in Ordinance 1965-43 (Tract V), being 600 feet from and parallel with the West right-of-way line of Interstate Highway 35, a distance of 1,860 feet to a point for a corner, said point being the northeast corner of a City of Denton annexation tract established and described in Ordinance 1985-31; described in Ordinance 1985-31 a distance of 1,961.87 feet to a point for a corner; established and described in Ordinance 1985-31 a distance of 1,165.47 feet to a point for a corner; THENCE Southeasterly continuing along the present Denton city limit line as established and described in Ordinance 1985-31 and along a curve to the left on the east right-of-way line of the A T & S R Railroad an arc distance of 1,324.91 feet as described in Ordinance 85-31 to a point for corner; THENCE Southeasterly continuing along the present Denton city limit line as established and described in Ordinance 1985-31 and along a curve to the left on the east right-of-way line of the A T & S R Railroad an arc distance of 254.27 feet as described in Ordinance 85-31 to a point for corner; and described in Ordinance 1985-31 and along the east right-of-way line of the A T & S R Railroad distance of 94.68 feet, as described in Ordinance 85-31, to a point for corner, said point lying on the most westerly north line of a City of Denton annexation tract described in Ordinance 1965-43 (Tract V); THENCE West continuing along the present Denton city limit line as established and described in Ordinance 1965-43 (Tract V) a distance of 119.22 feet to a point for corner, said point being on the west right-of-way line of the A T & S R Railroad and being the most westerly northwest corner of said annexation tract described in Ordinance 1965-43 (Tract V); THENCE Southeasterly continuing along the present Denton city limit line as established and described in Ordinance 1965-43 (Tract V) and along the west right-of-way line of the A T & S R Railroad a distance of 490 feet to a point for corner, said point being the northeast corner of a City of Denton annexation tract established and described by Ordinance 1970-34; ed and described in annexation Ordinance 1970-34 a distance of 2,612.8 feet to a point for corner, said point being the northwest corner of said tract described in annexation Ordinance 1970-34; nton city limit line as established and described in annexation Ordinance 1970-34 a distance of 2,680 feet to a point for corner, said point being the most westerly northeast corner of a City of Denton annexation tract established and described by Ordinance 1969-40 (Tract VII); and described in annexation Ordinance 1969-40 (Tract VII) a distance of 1,478 feet to a point for corner, said point being the most southerly southeast corner of a City of Denton annexation tract established and described by Ordinance 2006-364 and also lying on the east line of Masch Branch Road; THENCE North continuing along the present Denton city limit line as established and described in annexation Ordinance 2006-364 and along the east line of Masch Branch Road a distance of 2,603 feet to a point for corner, said point being the northeast corner of said Ordinance 2006-364 annexation tract; established and described in annexation Ordinance 2006-364 a distance of 50 feet to the west right-of-way line of Masch Branch Road to a point for corner, said point also being the southeast corner of a City of Denton annexation tract established and described by Ordinance 2007-76; THENCE North continuing along the present Denton city limit line as established and described in annexation Ordinance 2007-76 and along the west right-of-way line of Masch Branch Road a distance of 835.54 feet to a point for corner; established and described in annexation Ordinance 2007-76 and along a right-of-way flare of Masch Branch Road a distance of 70.76 feet to a point for corner; established and described in annexation Ordinance 2007-76 and along the south right-of-way line of Masch Branch Road a distance of 854.47 feet to a point for corner; THENCE South continuing along the present Denton city limit line as established and described in annexation Ordinance 2007-76 a distance of 883.64 feet to a point for corner, said point being the northwest corner of a City of Denton annexation tract established and described by Ordinance 2006-364; THENCE South continuing along the present Denton city limit line as established and described in annexation Ordinance 2006-364 a distance of 1,371.66 feet to a point for corner, said point being the southwest corner of a City of Denton annexation tract established and described by Ordinance 2006-364 and also lying on the north line of a City of Denton annexation tract established and described by Ordinance 1986-23; established and described in annexation Ordinance 1986-23 a distance of 1,168 feet to a point for corner, said point being the northwest corner of said Ordinance 1986-23 annexation tract; established and described in annexation Ordinance 1986-23 a distance of 969.60 feet to a point for corner, said point being the southwest corner of said Ordinance 1986-23 annexation tract and lying on the a northerly line of a City of Denton annexation tract established and described by Ordinance 74-36 (Tract V); THENCE North 88° 5 and described in annexation Ordinance 74-36 (Tract V) a distance of 1,905 feet to a point for corner, said point being on the west line of a 60.474 acre tract of land described in deed recorded under Instrument Number 2008-132154, Real Property Records, Denton County, Texas; feet to the northwest corner of the said 60.474 acre tract to a point for corner; feet to a point for corner, said point being the southwest corner of a 40.24 acre tract of land described in deed recorded under Instrument Number 2003-207507, Real Property Records, Denton County, Texas ; 2,280.05 feet to a point at the northwest corner of said tract and in the center of Masch Branch Road; THENCE North a distance of 25 feet to a point for corner, said point being the intersection of the implied east right-of-way line of a north/south section of Masch Branch Road and the implied north right-of-way line of an east/section of Masch Branch Road; THENCE northerly along the courses and distances of the implied east right-of-way line of Masch Branch Road a total distance of 5,545 feet to a point for corner, said point being on the southwest corner of a 4.998 acre tract described in City of Denton Ordinance 2001-318 (Krum/Denton Mutual Boundary Agreement (Exhibit A (Tract 4))); THENCE South 89 referenced in City of Denton Ordinance 2001-318, a distance of 418.50 feet to a point for a corner; ry Line referenced in City of Denton Ordinance 2001-318, a distance of 520.80 feet to a point for corner, said point being the northeast corner of the property described in Ordinance 2001-318 (Exhibit A (Tract 4)) and the southeast corner of the property described in Ordinance 2001-318 (Exhibit A (Tract 3)); Line referenced in City of Denton Ordinance 2001-318, a distance of 745.53 feet to a point for a corner, said point being the northeast corner of the property described in Ordinance 2001-318 (Exhibit A (Tract 3)) and located on the south right-of-way line of F.M. 1173; THENCE easterly along course and distances of the south right-of-way line of F.M. 1173, a total distance of 4,385 feet to the POINT OF BEGINNING and containing 1,480 acres of land. EXHIBIT 4 PAA3 - Area Survey Location: South side of Ganzer Road; north and south of Barthold Road; north of FM 1173; west of I-35. Area: Approximately 1,085 acres PAA3 Legal Description BEGINNING at a point on the present Denton city limits line, described as the southwest corner of an annexation tract established and described in Ordinance 1985-246 and further described therein as being on the centerline of F.M. 1173; city limit line as established in said Ordinance 1985-246 a distance of 310.5 feet to a point for corner; of F.M. 1173 and along the present Denton city limit line as established in said Ordinance 1985-246 a distance of 2,153.5 feet to a point for corner, said point also lying 500 feet west of and perpendicular to the center line of Interstate Highway 35, said point also being on the westerly line of a City of Denton annexation tract established and described in Ordinance 1969-40 (Tract VI); Highway 35, same being the present Denton city limit line established and described in Ordinance 1969-40 (Tract VI), a distance of 45 feet to a point for corner, said point lying on the south right-of-way line of F.M. 1173 and also being the northeast corner of a City of Denton annexation tract established and depicted in Ordinance 2007-268 (Exhibit A-3 therein); West along the south right-of-way line of F.M. 1173, same being the north line of said City of Denton annexation tract established, described and depicted in Ordinance 2007-268 (Exhibit A and Exhibit A-3 therein), a distance of 1,801 feet to a point for a corner; West along the south right-of-way line of F.M. 1173, same being the north line of said City of Denton annexation tract established and described in Ordinance 2007-268 (Exhibit A therein), a distance of 99.83 feet to a point for a corner; West along the south right-of-way line of F.M. 1173, same being the north line of said City of Denton annexation tract established and described in Ordinance 2007-268 (Exhibit A therein), a distance of 401.49 feet to a point for a corner; West along the south right-of-way line of F.M. 1173, same being the north line of said City of Denton annexation tract established and described in Ordinance 2007-268 (Exhibit A therein), a distance of 100.64 feet to a point for a corner; West along the south right-of-way line of F.M. 1173, same being the north line of said City of Denton annexation tract established and described in Ordinance 2007-268 (Exhibit A therein), a distance of 1,634.99 feet to a point for a corner, said point lying on the easterly right-of-way line of the Kansas City Southern Railway (formerly Gulf, Colorado and Sante Fe Railroad Company), said point also being the northwest corner of said Ordinance 2007-268 annexation tract; THENCE northwesterly, departing the existing Denton city limits and along the arcs, courses and distances of the said easterly railroad right-of-way line a total distance of 9,591 feet to a point for a corner; said point being the intersection of the said easterly railroad right-of-way line and the south right of way line of Ganzer West Road; THENCE in an easterly direction, along the courses and distances of the southerly implied right- of-way line of Ganzer West Road a total distance of 8,182 feet to a point for a corner, said point lying on the present Denton city limit line established and described by annexation Ordinance 1987-141; by annexation Ordinance 1987-141, a distance of 922 feet to a point for corner, said point being the southwest corner of said Ordinance 1987-141 annexation tract and also lying on the north line of a City of Denton annexation tract established and described in Ordinance 1969-40 (Tract VI); by annexation Ordinance 1969-40 (Tract VI) a distance of 250 feet to a point for corner, said point lying 500 feet west of the said center line if Interstate Highway 35 and being the northwest corner of said annexation Ordinance 1969-40 (Tract VI); llel to and 500 feet west of said center line of Interstate Highway 35 and along the present Denton city limit line established and described by annexation Ordinance 1969-40 (Tract VI) a distance of 6,087 feet to a point for corner, said point lying 500 feet west of the said center line of Interstate Highway 35 and being the northeast corner of said annexation tract established and described in Ordinance 1985-246; by annexation Ordinance 1985-246 a distance of 324.6 feet to a point for corner; described by annexation Ordinance 1985-246 a distance of 1,000 feet to a point for corner; by annexation Ordinance 1985-246 a distance of 1,034.21 feet to a point for corner; e established and described by annexation Ordinance 1985-246 a distance of 1,271.72 feet to a point for corner; by annexation Ordinance 1985-246 a distance of 426.35 to the POINT OF BEGINNING and containing 1,090 acres of land. EXHIBIT 5 PAA4 -Area Survey Location: South side of Milam Road; north of Loop 288; east of I-35 Area: Approximately 1,550 acres PAA4 Legal Description BEGINNING at the northwest corner of the property described in Ordinance 2008-137; -137 to a point for a corner at the southwest corner of the property described in Ordinance 2008-137; THENCE Sout-137 to a point for a corner described a corner of the property described in Ordinance 2008-137; -077 to a point for a corner; THENCE southerly along the westerly line of the property described in Ordinance 2007-077 (Tract 1) to a point for a corner described as the southwest corner of the property described in Ordinance 2007-077, said point also being on the north line of the property described in Ordinance 1985-151; THENCE westerly along the northerly line described in the property described in Ordinance 1958-151 to a point on a corner in the at the northeast corner the property described in Ordinance 2007-077 (Tract 2); -o77 (Tract 2); to a point for a corner; -077 (Tract 2); -077 (Tract 2) to the southwest corner of said Tract; 41.64 feet, as described in Ordinance 2007-077 (Tract 2) to a point for a corner; -077 (Tract 2) to a point for a corner; in Ordinance 2007-077 (Tract 2) to a point for a corner on the westerly line of the property described in Ordinance 2002-257; THENCE southerly along the westerly line of the property described in Ordinance 2002-257 to a point for a corner on the northerly line of the property described in Ordinance 2007-077 (Tract 3), this corner being the southwest corner of the property described in Ordinance 2002-257; THENCE westerly along the north line of the property described in Ordinance 2007-077 (Tract 3) to a point in the northwest corner of said tract; -077 (Tract 3) to a point for a corner, said point being the southwest corner of the said Tract 3, and also being on the north line of the property described in Ordinance 80-26; THENCE westerly along the northerly line of the property described in Ordinance 80-26, to a point being the northwest corner of said property; THENCE southerly along the westerly line of the property described in Ordinance 80-26 to an intersection point with the property described in Ordinance 1982-4; THENCE westerly along the north line of the property described in Ordinance 82-04 to a point for a corner; THENCE northwesterly along the north line of the property described in Ordinance 82-04 to a point, said point being the southeast corner of the property described in Ordinance 86-06; T-06, to a point; -06, to a point for a corner; nance 86-06, to a point for a corner, -06, to a point for a corner; -06, to a point, said point being the northwest corner of this property, and being the northeast corner of the property described in Ordinance 98-224; THENCE westerly along the north line of the property described in Ordinance 98-224 to a point of intersection with easterly line of the property described in Ordinance 69-40 (Tract VI); THENCE northerly along the easterly line of the property described in Ordinance 69-40 (Tract VI) to a point of intersection with centerline of Ganzer East; THENCE westerly to a point of intersection with the property described in Ordinance 87-141; THENCE northerly along the easterly line of the property described in Ordinance 87-141 to a point of intersection with the southwest corner of the property described in Ordinance 93-079; THENCE by a series of segments along the easterly limits of the property described in Ordinance 93-079 to point at the northeast corner of said property; THENCE easterly along the south right-of-way of FM 3103 to the Point of Beginning. EXHIBIT 6 DH-2 - Area Survey Location: South side of University Drive; west and east sides of Thomas J. Egan Road; north of Jim Christal Road; west of Masch Branch Road Area: Approximately 258 acres DH-2 Legal Description BEGINNING at the northwest corner of the subject property, this point being the northeast corner of property described in Ordinance 86-48; intersection of Egan Road and Jim Christal Road, being on the South side of the E.A. Orr Survey; THENCE along the centerline of Jim Christal Road in a series of metes and bounds, more completely described in Ordinance 83-90; THENCE to a point in Jim Christal Road described as the southeast corner of the property described in Ordinance 86-102; st corner of the property described in Ordinance 86-102; -102and called the northeast corner of the property described in said Ordinance, also being the northwest corner of the property described in Ordinance 2002-029; 1698.40 feet to point for a corner; THENCE North 89 known as the southeast corner of the property described in Ordinance 2002-209,said point also being on the north line of property described in Ordinance 69-40 (I); THENCE easterly along the northern line of the property described in Ordinance 69-40 (I) to a point described in Ordinance 82-52 as the southwest corner of said property; THENCE northerly along the west property line of the property described in Ordinance 82-52 to the northwest corner of said property at which point the property intersects with the south property line described in Ordinance 74-36, Tract V; THENCE following the south property line of the property described in Ordinance 74-36, Tract V to the Point of Beginning. EXHIBIT 7 DH-3 Area Survey Location: South side of Spring Side Road; north, south and west of Corbin Road; west of I-35 Area: Approximately 436 acres DH-3 Legal Description BEGINNING at a point at the intersection of Underwood and Springside Road as defined in Ordinance 2006-205, North Tract; THENCE in a southerly direction, along the east right-of-way of Underwood as more completely described in Ordinance 2006-205, North Tract, to a point of intersection with the north line of the property described in Ordinance 2001-451; THENCE in a easterly and southeasterly direction, along the north line of the property described in Ordinance 2001-451 to a point of intersection with the westerly line of the property described in Ordinance 69-40, Tract II; THENCE northeasterly along the westerly line of the property described in Ordinance 69-40, Tract II to a point of intersection with the southerly line of the property described in Ordinance 84-63; THENCE in a west and north direction along the south and west line of the property described in Ordinance 84-63 to a point of intersection with the property described in Ordinance 80-67; THENCE northerly along the west line of the property described in Ordinance 80-67 to a point of intersection with the property described in Ordinance 69-40, Tract I, being the existing City Limit line; THENCE along the existing City Limit line as described by ordinance 69-40, Tract I to the Point of Beginning. EXHIBIT 8 Area Survey DH-4 Location: East side of Bonnie Brae Street; west of Fort Worth Drive; east and west of Vintage Area: Approximately 347 acres DH-4 Legal Description BEGINNING at a point at the southeast corner of the property described in Ordinance 91-033, Tract I, being a point at the intersection of Allred Road and Bonnie Brae Road; being the northeast corner of the property described in Ordinance 91-033, Tract I, and also being the southeast corner of the property described in Ordinance 91-033, Tract III; THENCE northerly along Bonnie Brae Road to appoint, said point being the southwest corner of the property described in Ordinance 2001-092; Ordinance 2001-092 to a point; Ordinance 2001-092 to a point for a corner; THENCE southerly along and near the median of Hickory Creek, a series of meanders totaling approximately 2411.54 feet to a point; northwest corner of disannexation tract described in Ordinance 80-1, Tract III; THENCE southwesterly along the north boundary line of the property described in Ordinance 80-1, Tract III, same being the center of the channel of Hickory Creek to a point for a corner at the intersection of the north boundary line and the west right-of-way line of the Texas and Pacific Railroad; THENCE southwesterly along the right-of-way line of the Texas and Pacific Railroad to a point for a corner, said point being the southeast corner of the property described in Ordinance 80-1, Tract III and the northeast corner of the property described in Ordinance 79-082; THENCE continuing southwesterly along the right-0f-way line of the Texas and Pacific Railroad as described in Ordinance 79-082, to a point for a corner, said corner being the southeast corner of said ordinance and the also being the northeast corner of the property described in Ordinance 69-40, Tract III; Thence northerly to the Point of Beginning, containing 347 acres, more or less. EXHIBIT 9 DH-11 Area Survey Location: Southeast of the intersection of Mayhill Road and McKinney Street Area: Approximately 387 acres DH-11 Legal Description BEGINNING at appoint at the intersection of the properties described by Ordinance 65-43, Tract I and Ordinance 83-134, said point being the southwest corner of the property described in Ordinance 83-134; THENCE southwesterly along the south line of the property described in Ordinance 83-134 to a point intersecting the west line of the property described in Ordinance 86-13; int for a corner; property described in Ordinance 83-134; THENCE southeasterly along the south line of the property described in Ordinance 83-134 to a point, said point being the southeast corner of the said property and intersecting with the property described in Ordinance 86-129; THENCE southeasterly along the south line of the property described in Ordinance 86-129, approximately 1790.55 feet to a point for a corner; THENCE southerly along the west line of the property described in Ordinance 86-129 to an intersection with the property described in Ordinance 83-18; THENCE westerly along the center line of Pecan Creek, approximately 535.62 feet, as described in Ordinance 83-18, to a point in the center of Pecan Creek, said point being the southeast corner of the property described in Ordinance 81-094; THENCE along the center line of Pecan Creek, approximately 2317 feet, as described in Ordinance 81-094 to a point for a corner, said point being the southernmost point of the property described in Ordinance 83-19; THENCE along the center line of Pecan Creek, approximately 3454.72 feet, as described in Ordinance 83-19 to a point for a corner; described in Ordinance 81-94; THENCE along the center line of Pecan Creek, approximately 2232.33 feet as described in Ordinance 81-94 to a point for a corner; THENCE North 86° right-of-way of Mayhill Road; THENCE northerly along the east right-of-way line of Mayhill Road as described in Ordinance 73-08 to a point, said point being the southeast corner of the property described in Ordinance 65-43, Tract I; THENCE northerly along the east side of Mayhill Road as described in Ordinance 65-43, Tract I to the Point of Beginning. EXHIBIT 10 2010 Annexation Schedule Exempted Areas st Tuesday, 1/12/20101 Public Hearing City Council nd Tuesday, 1/19/20102 Public Hearing City Council st Tuesday, 2/9/20101 Reading of Annexation Ordinances Tuesday,4/2/2010 Publication of Annexation Ordinances in Denton Record Chronicles nd Tuesday,5/4/20102 Reading and Adoption of the Annexation Ordinances Final City Council action. Note: Annexations must be rigidly coordinated in conjunction with the City Council public hearing schedule due to specific timing mandates established by Texas State Law. The Texas Local Government st Code requires that City Council institute annexation proceedings (1 Reading of the Ordinance) more st than 20 days after the second City Council public hearing but less than 40 days from the 1 City Council public hearing. ̸·­ °¿¹» ´»º¬ ¾´¿²µ ·²¬»²¬·±²¿´´§ò AGENDA INFORMATION SHEET AGENDA DATE: February 16, 2010 DEPARTMENT: Planning & Development ACM: Fred Greene SUBJECT(DCA10-0001) Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, amending the Denton Development Code by deleting Subsection 35.14.3.B., to remove the current exemption of required parking standards for development in the Central Business District; providing for severability, and providing an effective date (DCA10-0001). The Planning A supermajority vote is and Zoning Commission recommends denial of the request (5-1). required by City Council to approve the amendment. BACKGROUND Acdevelopment of property within the Central Business District is exempt from the requirement to provide any additional parking spaces This provision, exempting the provision of any additional parking within the Central Business District (CBD) has contributed to a lack of adequate off-street parking within the CBD. This negative impact is most notable when new developments, such as multi-family, or student housing are constructed, but would also be encountered with a high traffic commercial or restaurant use. Planning staff has been working with Jacobs Engineering, Inc. on the development of the Downtown Implementation Plan (DTIP). The DTIP will include a downtown parking component that will detail the overall parking supply and demand for on-street and off-street parking and identify specific locations for additional parking, shared parking and new parking facilities. This element will research parking needs by land-use, peak usage by land-use, and availability of parking within the project area and within certain walking distances to the project area. It will also make recommendations for adequate parking ratios for Downtown development based on land-uses. within the project area, it will not be completed in time to prevent or mitigate the negative impacts that are a direct result of the off-street exception provision under 35.14.3(B) of the DDC. In the interim, to address any new developments from being constructed without providing adequate off- recommends that Section 35.14.3(B) of the DDC be repealed. All new developments, commercial or residential, within the CBD will therefore be required to provide adequate off- street parking at the ratios required by Subchapter 14 of the DDC. Any development that is unable to meet the parking requirements on-site may apply to the Board of Adjustment for a variance from the parking requirements; enter into a shared parking arrangement; or provide parking on an adjacent lot. All of these provisions, relief from the parking requirements, shared parking, and adjacent parking are subject to the requirements of Subchapter 14 of the DDC. On February 24, 2010 staff presented this amendment to the Planning & Zoning Commission. Several members of the development community attended and voiced their opposition to the request citing timing of the amendment, the Board of Adjustment procedure would add more time to the development process, and stating that this amendment would have the effect of preventing development. While Commissioners generally agreed with the need for the development code amendment, they forwarded a recommendation of denial (5-1). Commissioners based their recommendation on timing, applicability, and the potential for the amendment to hinder downtown development. Commissioners were of the opinion that given the pending recommendations of the DTIP they did not see a need for an interim amendment, that defining the intensity of a use would create obstacles for developers, and that defining the intensity of a use is very subjective and difficult to quantify for staff. They also noted that this amendment should be focused on multi-family development as that use potentially has the greatest negative impact on the Downtown. Applicability of Code Amendment Staff has reviewed how this amendment will be applied without discouraging development in the downtown. Originally, it was determined that this amendment would apply whenever there is a change in land-use that requires a Certificate of Occupancy, as well as for all new construction in the CBD. However, this may place an unintended burden on existing businesses. For example, if an insurance business relocated and a new insurance business moved into the same location a new Certificate of Occupancy would be necessary. Consequently, the parking standards would apply to the new business that is equally as intense as the previous business without generating any more parking requirement than what was previously demanded. The intent of this amendment is to address the intensity of uses that may locate downtown without parking. For example, if an office use vacated a location within the CBD and a restaurant moved into the same location, the restaurant could be more intense and have a greater demand for parking, thus worsen an existing off-street parking problem. Conversely, if a restaurant use vacated a location in the CBD and an office use moved into the same location, the office use could be less intense, therefore not needing as much off-street parking. Therefore, changes in land-use where a more intense use is proposed would be required to provide parking, whereas changes in land-use where the same or similar parking demand is proposed would not be affected. Accordingly, staff proposes that this amendment apply in the following situations: 1.For any use where new construction is proposed 2.For any use where redevelopment of an existing site is proposed 3.For any use where expansion of the existing structure is proposed 4.For any change in use where the new use is more intense than the use it is directly replacing Numbers 1 and 2 above can reasonably be interpreted and consistently applied to avoid any conflicts, Number 3 will follow section 35.11.6.2 of the DDC, Changing Nonconforming Structures. However, the last bullet may necessitate additional information. In these instances, staff may evaluate the intensity of a land use based on the following information: Traffic analysis of proposed use to determine how much traffic will be generated. Review use in the North American Industry Classification System (NAICS) Number of employees Hours of operation Staff may also request additional information that is necessary to verify the intensity of a land use and determine the appropriate amount of parking. Creation of Non Conforming Use The revocation of this section or any code amendment will create non conforming uses. Subchapter 11 of the DDC specifically addresses these situations and makes provisions for the continued use of a property, changes in land use and discontinuation of non conforming uses. This section also addresses expansion of non conforming uses and requires all changes follow the Board of Adjustment procedure. Issuance of Local Permit A concern of staff if this amendment is not adopted is the provisions of Texas Local Government Code Chapter 245, Issuance of Local Permit. This chapter notes that the City shall consider the approval, disapproval, or conditional approval of an application for a permit solely on the basis of any orders, regulations, ordinances, rules, expiration dates, or other properly adopted requirements in effect at the time the original application for the permit is filed. Essentially, if a development application is submitted before the provisions of the DTIP are adopted the regulations that are in place, the exemption from the requirement to provide any additional parking spaces, would apply to that development application. This would have the effect of negating the recommendations of the DTIP. Other Code Amendments Adoption of this code amendment will also necessitate other code amendments in the DDC. Staff is currently reviewing the approval procedure for variances from subchapter 14. Subchapter 11 is being reviewed to determine if other amendments should be made to address the CBD. These items and any other code amendment will be presented to the City Council in the future. PRIOR ACTION/REVIEW November 12, 2009 February 1, 2010 February 10, 2010 February 16, 2010 February 19, 2010 February 24, 2010 OPTIONS Downtown Task Force City Council Work Session Planning & Zoning Commission City Council Work Session Downtown Task Force Planning & Zoning Commission 1. Approve as submitted. 2. Approve subject to conditions. 3. Deny. 4. Postpone consideration. 5. Table item. RECOMMENDATION The Planning and Zoning Commission recommends DENL4L of the request (5-1). A supermajority vote is required by City Council to approve the amendment. The Planning Department recommends APPROVAL of the development code amendment. FXUrurTc 1. Map of Central Business District 2. Map of Downtown implementation Plan Study Boundary 3. Denton Development Code Subchapter 14 Parking Standards 4. Ordinance Prepared by Brian Lockley, AICP Development Review Administrator Respectfully Submitted: 1'1,1,~~ . Fred Greene Assistant City Manager Appendix A City of Denton Site Design Criteria Manual Appendix B Denton Centr.il Business District Alap F,7 BHrra- D(Mton Centlal m GIRT-F. Business District ; ;ad Fa r - m HMrz -ANN ~ ~ I I -JL i ~cl -TIP =FA-11 1~,.1. U. i-i M1♦t II WIORT- It Hlr `R 11 A X ~1 ~'~d!?IF I 50 J 'N O ~.i V .O ~i Ao Q `N • rl ei o~ 0 Q o w ~ on ~ ~ o Q ~ v tp I~ J -N i ; 1. d „_,ddd = s V r y ,I IdIMI I I I I I Subchapter 14 Development Code Subchapter 14 – Parking Standards Sections: íëòïìòï Ы®°±­»ò íëòïìòî Ù»²»®¿´´§ò íëòïìòí ß°°´·½¿¬·±²ò íëòïíòì Í°¿½»­ λ¯«·®»¼ò íëòïìòë Ý®»¼·¬ º±® Ѳóͬ®»»¬ п®µ·²¹ò íëòïìòê п®µ·²¹ ß½½»­­·¾·´·¬§ ͬ¿²¼¿®¼­ò íëòïìòé Ô·³·¬¿¬·±²ô Ô±½¿¬·±²ô Ë­» ±º Ú¿½·´·¬·»­ò íëòïìòè Ü»­·¹² λ¯«·®»³»²¬­ò íëòïìòç Ü»ª»´±°³»²¬ ¿²¼ Ó¿·²¬»²¿²½»ò íëòïìòïð Þ·½§½´» п®µ·²¹ò 35.14.1 Purpose. ײ ¿´´ ¦±²·²¹ ¼·­¬®·½¬­ô »¨½»°¬ ¬¸±­» ­°»½·º·½¿´´§ »¨»³°¬»¼ô ©¸»²»ª»® ¿²§ ¾«·´¼·²¹ ·­ »®»½¬»¼ô »²´¿®¹»¼ô ±® ¬¸» «­» ·­ ½¸¿²¹»¼ô ±ººó­¬®»»¬ °¿®µ·²¹ ­¸¿´´ ¾» °®±ª·¼»¼ ¿­ ­»¬ º±®¬¸ ·² ¬¸·­ Í«¾½¸¿°¬»®ò ̸» ®»¯«·®»³»²¬­ ±º ¬¸·­ Í«¾½¸¿°¬»® ¿®» ¿¼±°¬»¼ º±® ¬¸» °«®°±­» ±º »²­«®·²¹ ¬¸¿¬ ¿´´ ¼»ª»´±°³»²¬­ °®±ª·¼» ¿¼»¯«¿¬» ¿²¼ ®»¿­±²¿¾´» °¿®µ·²¹ ©¸·½¸ ·­ ®»¿­±²¿¾´§ ²»½»­­¿®§ ¿²¼ ¿¼»¯«¿¬» ¬± ­»®ª» ¬¸» ¼»ª»´±°³»²¬ ±® «­»ò 35.14.2 Generally. ײ ¿´´ ¦±²·²¹ ¼·­¬®·½¬­ô »¨½»°¬ ¬¸±­» ­°»½·º·½¿´´§ »¨»³°¬»¼ô ©¸»²»ª»® ¿²§ ¾«·´¼·²¹ ·­ »®»½¬»¼ô »²´¿®¹»¼ô ±® ¬¸» «­» ·­ ½¸¿²¹»¼ô ±ººó­¬®»»¬ °¿®µ·²¹ ­¸¿´´ ¾» °®±ª·¼»¼ ¿­ ­»¬ º±®¬¸ ·² ¬¸·­ Í«¾½¸¿°¬»®ò ̸»­» ­¬¿²¼¿®¼­ ¿²¼ ®»¯«·®»³»²¬­ ­¸¿´´ ¾» ´·¾»®¿´´§ ·²¬»®°®»¬»¼ ¿²¼ ¿°°´·»¼ ­± ¿­ ¬± ¿½¸·»ª» ¬¸» °«®°±­» ¿²¼ ·²¬»²¬ ±º ¬¸» ­¬¿²¼¿®¼ ±® ®»¯«·®»³»²¬ò ɸ»®» ´·¬»®¿´ ¿°°´·½¿¬·±² ±º ¿ ®»¯«·®»³»²¬ ·² ¿ °¿®¬·½«´¿® ½¿­» ©±«´¼ ½´»¿®´§ ²±¬ ¿½¸·»ª» ¬¸» °«®°±­» ¿²¼ ·²¬»²¬ ±º ¬¸» ®»¯«·®»³»²¬ô ¬¸» ¿°°´·½¿²¬ ³¿§ ­»»µ ¿ ª¿®·¿²½» º®±³ ¬¸» Þ±¿®¼ ±º ß¼¶«­¬³»²¬ «­·²¹ ¬¸» Þ±¿®¼ ±º ß¼¶«­¬³»²¬ Ю±½»¼«®»ò 35.14.3 Application. ßòÒ± °»®­±² ­¸¿´´ ½±²­¬®«½¬ô ®»½±²­¬®«½¬ô ®»°´¿½»ô ®»´±½¿¬»ô ¿´¬»®ô »²´¿®¹»ô ·³°®±ª»ô ±® °»®º±®³ ¿²§ ©±®µ ±² ±® ³¿µ» «­» ±º ¿²§ °¿®µ·²¹ ´±¬ ±® ¼®·ª»©¿§ ±² ¿²§ °®±°»®¬§ ©·¬¸·² ¬¸» Ý·¬§ º±® ©¸·½¸ ¿ °»®³·¬ ·­ ®»¯«·®»¼ «²¼»® ¬¸·­ ­»½¬·±²ô »¨½»°¬ ·² ¿½½±®¼¿²½» ©·¬¸ ¬¸» ®»¯«·®»³»²¬­ ±º ¬¸·­ Í«¾½¸¿°¬»® ¿²¼ ¬¸» Û¨°¿²­·±² ß°°´·½¿¾·´·¬§ Ì¿¾´» º±«²¼ ·² Í«¾½¸¿°¬»® ïíò ÞòÜ»ª»´±°³»²¬ ±º °®±°»®¬§ ©·¬¸·² ¬¸» Ý»²¬®¿´ Þ«­·²»­­ ·­ »¨»³°¬ º®±³ ¬¸» ®»¯«·®»³»²¬ ¬± °®±ª·¼» ¿²§ ¿¼¼·¬·±²¿´ °¿®µ·²¹ ­°¿½»­ò Ýò̸» »¨°¿²­·±² ±º ¿² »¨·­¬·²¹ °¿®µ·²¹ ´±¬ ·­ ­«¾¶»½¬ ¬± ¬¸» °®±ª·­·±²­ ±º ¬¸·­ Í«¾½¸¿°¬»® ¾¿­»¼ ±² ¬¸» Û¨°¿²­·±² ß°°´·½¿¾·´·¬§ Ì¿¾´»ò Üòß´´ °¿®µ·²¹ ¿²¼ ª»¸·½´» ­¬±®¿¹» ¿®»¿­ô ­¸¿´´ ³»»¬ ¬¸» ¿°°´·½¿¾´» ¾«ºº»®·²¹ ¿²¼ ­½®»»²·²¹ ®»¯«·®»³»²¬­ ±º ¬¸·­ ݸ¿°¬»®ò 14-1 Subchapter 14 Development Code 35.14.4 Spaces Required. ̸» ²«³¾»® ±º °¿®µ·²¹ ­°¿½»­ ®»¯«·®»¼ ­¸¿´´ ¾» ¾¿­»¼ ±² ¬¸» º±´´±©·²¹ ¬¿¾´»æ ßòλ­·¼»²¬·¿´ Ë­»­ò ïò Í·²¹´» º¿³·´§ ¼©»´´·²¹­ò Ì©± øî÷ ­°¿½»­ °»® ¼©»´´·²¹ «²·¬å ¬¸» ­°¿½»­ ½¿²²±¬ ¾» ¬¿²¼»³ °¿®µ·²¹ ­°¿½»­ò Ú±® ¼«°´»¨»­ô ±²» ¿¼¼·¬·±²¿´ °¿®µ·²¹ ­°¿½» ·­ ®»¯«·®»¼ º±® »¿½¸ ¿¼¼·¬·±²¿´ ¾»¼®±±³ ±ª»® ¬¸®»» ¾»¼®±±³­ò îò Ó·¨»¼ ¼»²­·¬§ ¼©»´´·²¹­ ±® ³¿²«º¿½¬«®»¼ ¸±«­·²¹ò ¿òͬ«¼·± «²·¬­ ±® ïó¾»¼®±±³ «²·¬­ ´»­­ ¬¸¿² ëðð ­¯ò º¬ò ïòðð ­°¿½»ñ«²·¬ò ¾òïó¾»¼®±±³ «²·¬­ ëðð ­¯ò º¬ò ±® ´¿®¹»® ïòëð ­°¿½»­ñ«²·¬ò ½òîó¾»¼®±±³ «²·¬­ ïòéë ­°¿½»­ñ«²·¬ò ¼òíó¾»¼®±±³ îòðð ­°¿½»­ñ«²·¬ò »òì ¾»¼®±±³ ¿²¼ ³±®» ïòðð ­°¿½»ñ¾»¼®±±³ò 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­°¿½» °»® ¬¸®»»ó¸«²¼®»¼ º·º¬§ øíëð÷ ­¯ò º¬ò ±º ¹®±­­ ¾«·´¼·²¹ ¿®»¿ò èò ̸»¿¬»®­ô ¿«¼·¬±®·«³­ô ­¬¿¼·«³­ô ¹§³²¿­·«³­ ¿²¼ ­·³·´¿® «­»­ò Ѳ» øï÷ ­°¿½» °»® º±«® øì÷ ­»¿¬­ò 14-2 Subchapter 14 Development Code Ýò ײ¼«­¬®·¿´ Ë­»­ò ïòײ¼«­¬®·¿´ «­»­ô »¨½»°¬ ©¿®»¸±«­·²¹ò Ѳ» øï÷ ­°¿½» °»® ­»ª»² ¸«²¼®»¼ øéðð÷ ­¯«¿®» º»»¬ ±º ¹®±­­ º´±±® ¿®»¿ ±® º±® »¿½¸ ¬©± øî÷ »³°´±§»»­ ±² ¬¸» ´¿®¹»­¬ ­¸·º¬ô ©¸·½¸»ª»® ·­ ´»­­ò îò É¿®»¸±«­·²¹ò Ѳ» øï÷ ­°¿½» °»® ±²» ¬¸±«­¿²¼ øïôððð÷ ­¯«¿®» º»»¬ ±º ¹®±­­ º´±±® ¿®»¿ ±® º±® »¿½¸ ¬©± øî÷ »³°´±§»»­ô ©¸·½¸»ª»® ·­ ´»­­ò íò Ы¾´·½ «¬·´·¬·»­ ø¹¿­ô ©¿¬»®ô ¬»´»°¸±²»ô »¬½ò÷ô ²±¬ ·²½´«¼·²¹ ¾«­·²»­­ ±ºº·½»­ò Ѳ» øï÷ ­°¿½» °»® ¬©± øî÷ »³°´±§»»­ ±² ¬¸» ´¿®¹»­¬ ­¸·º¬å ¿ ³·²·³«³ ±º ¬©± øî÷ ­°¿½»­ ·­ ®»¯«·®»¼ò Üòײ­¬·¬«¬·±²¿´ ¿²¼ Ы¾´·½ Ë­»­ò ïò Ü¿§ ½¿®» º¿½·´·¬·»­ ¸¿ª·²¹ ïí ±® ³±®» ½¸·´¼®»²ñ¿¼«´¬­ò Ѳ» øï÷ ­°¿½» °»® ¬©± øî÷ »³°´±§»»­å ¿ ³·²·³«³ ±º ¬©± øî÷ ­°¿½»­ ·­ ®»¯«·®»¼ò îò ݸ«®½¸»­ò Ѳ» øï÷ ­°¿½» °»® º±«® øì÷ ­»¿¬­ò íò Ù±´º ½±«®­»­ô »¨½»°¬ ³·²·¿¬«®»ò Û·¹¸¬ øè÷ ­°¿½»­ °»® ¸±´»ô °´«­ 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Ë­»­ò ɸ»®» °¿®µ·²¹ ®»¯«·®»³»²¬­ º±® ¿²§ «­» ¿®» ²±¬ ­°»½·º·½¿´´§ ¼»º·²»¼ ·² ¬¸·­ ­»½¬·±²ô ­«½¸ ®»¯«·®»³»²¬­ ­¸¿´´ ¾» ¼»¬»®³·²»¼ ¾§ ¬¸» Ü·®»½¬±® ±º д¿²²·²¹ ¿²¼ Ü»ª»´±°³»²¬ ¾¿­»¼ «°±² ¬¸» ³±­¬ ½±³°¿®¿¾´» «­» ­°»½·º·»¼ ¸»®»·²ô ¿²¼ ±¬¸»® ¿ª¿·´¿¾´» ¼¿¬¿ò Úò Ó¿¨·³«³ ß´´±©¿¾´» Ò«³¾»® ±º Í°¿½»­ò ̸» ²«³¾»® ±º ­°¿½»­ °®±ª·¼»¼ ¾§ ¿²§ °¿®¬·½«´¿® «­» ·² ¹®±«²¼ ­«®º¿½» ´±¬­ ­¸¿´´ ²±¬ »¨½»»¼ ¬¸» ®»¯«·®»¼ ²«³¾»® ±º ­°¿½»­ °®±ª·¼»¼ ¾§ ¬¸·­ Í«¾½¸¿°¬»® «²´»­­ ¿°°®±ª»¼ ¾§ ¬¸» Ü·®»½¬±® ±º д¿²²·²¹ ¿²¼ Ü»ª»´±°³»²¬ò ß²§ ­°¿½»­ ±ª»® ¬¸» ®»¯«·®»¼ ²«³¾»® ±º ­°¿½»­ ­¸¿´´ ¾» ½±²­¬®«½¬»¼ ©·¬¸ °»®ª·±«­ ­«®º¿½»­ò Í°¿½»­ °®±ª·¼»¼ ±²ó­¬®»»¬ô ±® ©·¬¸·² ¬¸» ¾«·´¼·²¹ º±±¬°®·²¬ ±º ­¬®«½¬«®»­ô ­«½¸ ¿­ ·² ®±±º¬±° °¿®µ·²¹ô ±® «²¼»®ó­¬®«½¬«®» °¿®µ·²¹ô ±® ·² ³«´¬·ó´»ª»´ °¿®µ·²¹ ¿¾±ª» ±® ¾»´±© ­«®º¿½» ´±¬­ô ­¸¿´´ ²±¬ ¿°°´§ ¬±©¿®¼­ ¬¸» ³¿¨·³«³ ²«³¾»® ±º ¿´´±©¿¾´» ­°¿½»­ò 35.14.5 Credit for On-street Parking. ßò̸» ¿³±«²¬ ±º ±ººó­¬®»»¬ °¿®µ·²¹ ®»¯«·®»¼ ­¸¿´´ ¾» ®»¼«½»¼ ¾§ ¬¸» º±´´±©·²¹ ½®»¼·¬ °®±ª·¼»¼ º±® ±²ó­¬®»»¬ °¿®µ·²¹æ ±²» ±ººó­¬®»»¬ °¿®µ·²¹ ­°¿½» ½®»¼·¬ º±® »ª»®§ ¬©± ±²ó­¬®»»¬ ­°¿½»­ «° ¬± º±«® ½®»¼·¬­ô ¬¸»®»¿º¬»® ±²» ­°¿½» ½®»¼·¬ º±® »¿½¸ ±²ó­¬®»»¬ °¿®µ·²¹ ­°¿½»ò ÞòѲ󭬮»»¬ °¿®µ·²¹ ­¸¿´´ º±´´±© ¬¸» »­¬¿¾´·­¸»¼ ½±²º·¹«®¿¬·±² ±º »¨·­¬·²¹ ±²ó­¬®»»¬ °¿®µ·²¹ô »¨½»°¬ ¬¸¿¬ ìë ¼»¹®»» ¼·¿¹±²¿´ °¿®µ·²¹ ³¿§ ¾» ¿´´±©»¼ ©·¬¸ ¬¸» ¿°°®±ª¿´ ±º ¬¸» Ü·®»½¬±® ±º Û²¹·²»»®·²¹ô ¬¿µ·²¹ ·²¬± 14-3 Subchapter 14 Development Code ¿½½±«²¬ ¬®¿ºº·½ º´±©­ ¿²¼ ­¬®»»¬ ¼»­·¹²ô ©·¬¸ ¬¸» °¿®µ·²¹ ­°¿½»­ ¼»­·¹²»¼ ·² ¿½½±®¼ ©·¬¸ Ì®¿²­°±®¬¿¬·±² Ý®·¬»®·¿ Ó¿²«¿´ò ̸» º±´´±©·²¹ ­¸¿´´ ½±²­¬·¬«¬» ¿² ±²ó­¬®»»¬ °¿®µ·²¹ ­°¿½»æ ïòп®¿´´»´ °¿®µ·²¹ô »¿½¸ îì º»»¬ ±º «²·²¬»®®«°¬»¼ ½«®¾ò îòìë ¼»¹®»» ¼·¿¹±²¿´ô »¿½¸ ïé º»»¬ ±º «²·²¬»®®«°¬»¼ ½«®¾ò ÝòÝ«®¾ ­°¿½» ³«­¬ ¾» ½±²¬·¹«±«­ ¬± ¬¸» ´±¬ ©¸·½¸ ½±²¬¿·²­ ¬¸» «­» ©¸·½¸ ®»¯«·®»­ ¬¸» °¿®µ·²¹ò Üòп®µ·²¹ ­°¿½»­ ³¿§ ²±¬ ¾» ½±«²¬»¼ ¬¸¿¬ ¿®» ©·¬¸·² îë º»»¬ ³»¿­«®»¼ ¿´±²¹ ¬¸» ½«®¾ ±º ¿²§ ½±®²»® ±® ·²¬»®­»½¬·±² ±º ¿² ¿´´»§ ±® ­¬®»»¬ô ²±® ©·¬¸·² ï𠺻»¬ ±º ¿² ·²¬»®­»½¬·±² ±º ¿ ­¬®»»¬ ¿²¼ ¼®·ª»©¿§ô ¿­ ³»¿­«®»¼ º®±³ ¬¸» ¾±¬¬±³ ±º ¬¸» ¿°®±² ©·²¹ô ²±® ¿²§ ±¬¸»® °¿®µ·²¹ ½±²º·¹«®¿¬·±² ¬¸¿¬ ª·±´¿¬»­ ¿²§ ´¿© ±® ­¬¿²¼¿®¼ ±º Ý·¬§ ±® ¬¸» ͬ¿¬» ±º Ì»¨¿­ò Ûòп®µ·²¹ ­°¿½»­ ´±½¿¬»¼ ±² ¿®¬»®·¿´­ ¿²¼ ½±´´»½¬±®­ ³¿§ ²±¬ ¾» ½®»¼·¬»¼ º±® ±²ó­¬®»»¬ °¿®µ·²¹ô «²´»­­ °¿®¬ ±º ¿² ¿¼±°¬»¼ ½±®®·¼±® °´¿² º±® ¬¸¿¬ ­¬®»»¬ «²´»­­ ¿¼¼·¬·±²¿´ ®·¹¸¬ó±ºó©¿§ ·­ ¼»¼·½¿¬»¼ º±® ¬¸¿¬ °«®°±­» ¾§ ¬¸» ¼»ª»´±°³»²¬ ¿²¼ ·¬ ·­ ¼»­·¹²»¼ °«®­«¿²¬ ¬± ¬¸» Ì®¿²­°±®¬¿¬·±² Ý®·¬»®·¿ Ó¿²«¿´ò ÚòѲ󭬮»»¬ °¿®µ·²¹ ­°¿½»­ ½®»¼·¬»¼ º±® ¿ ­°»½·º·½ «­» ­¸¿´´ ²±¬ ¾» «­»¼ »¨½´«­·ª»´§ ¾§ ¬¸¿¬ «­»ô ¾«¬ ­¸¿´´ ¾» ¿ª¿·´¿¾´» º±® ¹»²»®¿´ °«¾´·½ «­» ¿¬ ¿´´ ¬·³»­ò Ò± ­·¹²¿¹» ±® ¿½¬·±²­ ´·³·¬·²¹ ¹»²»®¿´ °«¾´·½ «­» ±º ±²ó­¬®»»¬ ­°¿½»­ ­¸¿´´ ¾» °»®³·¬¬»¼ò ÙòѲ󭬮»»¬ °¿®µ·²¹ º±® ³«´¬·°´» º¿³·´§ ¼©»´´·²¹­ ­¸¿´´ ¾» ´·³·¬»¼ ¬± °¿®¿´´»´ °¿®µ·²¹ ­°¿½»­ò 35.14.6 Parking Accessibility Standards. ß´´ ¿®»¿­ ±º ²»©´§ ¼»­·¹²»¼ ±® ²»©´§ ½±²­¬®«½¬»¼ ¾«·´¼·²¹­ ¿²¼ º¿½·´·¬·»­ ®»¯«·®»¼ ¬± ¾» ¿½½»­­·¾´» «²¼»® º»¼»®¿´ ¿²¼ ­¬¿¬» ´¿© ­¸¿´´ ½±³°´§ ©·¬¸ ¬¸» ­¬¿²¼¿®¼­ ­»¬ º±®¬¸ ·² ¬¸» Ì»¨¿­ ß½½»­­·¾·´·¬§ ͬ¿²¼¿®¼­ ±º 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½´»¿®¿²½» ­¬¿²¼¿®¼­ò 14-5 Subchapter 14 Development Code 35.14.9 Development and Maintenance. ̸» ¼»ª»´±°³»²¬ ¿²¼ ³¿·²¬»²¿²½» ¿­ °®±ª·¼»¼ ¾»´±© ­¸¿´´ ¿°°´§ ·² ¿´´ ½¿­»­ô »¨½»°¬ ­·²¹´» ¿²¼ ¬©±óº¿³·´§ ¼©»´´·²¹­ò ß´´ °¿®µ·²¹ ­¸¿´´ ³»»¬ ¬¸» ³·²·³«³ ®»¯«·®»³»²¬­ ±º Í«¾½¸¿°¬»® ïíò ïò пª·²¹ò ß´´ ®»¯«·®»¼ °¿®µ·²¹ ¿®»¿­ô ¿·­´»­ô ¬«®²ó¿®±«²¼­ ¿²¼ ¼®·ª»©¿§­ ­¸¿´´ ¾» °¿ª»¼ ©·¬¸ ½±²½®»¬»ô ¿­°¸¿´¬ ±® ½±³°¿®¿¾´» ­«®º¿½·²¹ô ½±²­¬®«½¬»¼ ¬± ­¬¿²¼¿®¼­ ±² º·´» ·² ¬¸» ±ºº·½» ±º ¬¸» Ü·®»½¬±® ±º Û²¹·²»»®·²¹ò п®µ·²¹ ´±¬­ ·² ®»­·¼»²¬·¿´ ¦±²»­ ¬¸¿¬ ½±²¬¿·² ´»­­ ¬¸¿² ïð ­°¿½»­ ³¿§ ¾» ­«®º¿½»¼ ©·¬¸ ¿ °»®³»¿¾´» ³¿¬»®·¿´ô ­«½¸ ¿­ ½®«­¸»¼ ®±½µô ¬± ¬¸» ­¬¿²¼¿®¼­ ±² º·´» ·² ¬¸» ±ºº·½» ±º ¬¸» Ü·®»½¬±® ±º Û²¹·²»»®·²¹ò îò Ü®¿·²¿¹»ò ß´´ ®»¯«·®»¼ °¿®µ·²¹ ¿®»¿­ô ¿·­´»­ ¿²¼ ¬«®²¿®±«²¼­ ­¸¿´´ ¸¿ª» °®±ª·­·±²­ ³¿¼» º±® ¬¸» ±²ó ­·¬» ½±´´»½¬·±² ±º ¼®¿·²¿¹» ©¿¬»®­ ¬± »´·³·²¿¬» ­¸»»¬ º´±© ±º ­«½¸ ©¿¬»®­ ±²¬± ­·¼»©¿´µ­ô °«¾´·½ ®·¹¸¬­ó ±ºó©¿§ô ¿²¼ ¿¾«¬¬·²¹ °®·ª¿¬» °®±°»®¬§ò íò Ü®·ª»©¿§ ¿°°®±¿½¸»­ò ß°°®±¿½¸»­ ­¸¿´´ ¾» °¿ª»¼ ©·¬¸ 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°¿®µ·²¹ ­°¿½» º±® »ª»®§ îð ®»¯«·®»¼ ¿«¬± °¿®µ·²¹ ­°¿½»­ò Þò Þ·½§½´» п®µ·²¹ Ü»­·¹² ͬ¿²¼¿®¼­ò ïòÞ·½§½´» °¿®µ·²¹ ­¸±«´¼ ¾» ª·­·¾´» ¿²¼ ½±²ª»²·»²¬ ¬± ½§½´·­¬­ ¿²¼ ¬¸¿¬ °®±ª·¼» ­«ºº·½·»²¬ ­»½«®·¬§ º®±³ ¬¸»º¬ ¿²¼ ¼¿³¿¹»ò îòÞ·½§½´» °¿®µ·²¹ ¼»­·¹² ¿´¬»®²¿¬·ª»­ ¿®» ­°»½·º·»¼ ·² ¬¸» Ì®¿²­°±®¬¿¬·±² Ý®·¬»®·¿ Ó¿²«¿´ò øß³»²¼»¼ Ñ®¼ò Ò±ò îððëóïéêô ðêñîïñîððë÷ øß³»²¼»¼ Ñ®¼ò Ò±ò îððëóîîìô ðèñïêñîððë÷ øß³»²¼»¼ Ñ®¼ò Ò±ò îððèóïëèô ðéñïëñîððè÷ 14-6 AGENDA INFORMATION SHEET AGENDA DATE: March 2, 2010 DEPARTMENT: Planning and Development ACM: Fred Greene SUBJECT- Z08-0016 (Pine Creek) Hold a public hearing and consider adoption of an ordinance of the City of Denton, Texas, providing for a zoning change from a Neighborhood Residential 3 (NR-3) zoning district classification and use designation to a Neighborhood Residential Mixed Use 12 (NRMU-12) zoning district classification and use designation, with an overlay district; on approximately 15.13 acres of land located west of Stuart Road and approximately 600 feet northwest of the intersection of Windsor Street and Stuart Road; and providing for a penalty in the maximum amount of $2,000.00 for violations thereof, severability and an effective date (Z08-0016, Pine Creek). The Planning and Zoning Commission recommends approval of the request (4-2). BACKGROUND The applicant (Rick Baria) is proposing to construct a multi-family development consisting of 113 dwelling units. The 113 units are comprised of 106 side-by-side units and 7 units with second-story dwellings. This equates to a density of 7.5 units to the acre. The subject site is currently zoned NR-3 which does not allow multi-family developments; therefore the applicant is requesting to rezone the site to NRMU-12 with an overlay district. Per the Denton Development Code (DDC) the NRMU-12 zoning district allows multi-family with a limitation. Limitation, L (4) reads -family is permitted only: (1) with a specific use permit; or (2) as part of a mixed- use development; or (3) as part of a master plan development, existing; or (4) if the development received zoning approval allowing multi-family uses within one year prior to the effective date of Ordinance No. 2005-224; or (5) if allowed by a City Council The site is currently undeveloped and is not platted. a multi-family development with 121, 2-bedroom units, equating a density of nine (9) dwelling units per acre if units were stacked vertically, and eight (8) dwelling units per acre if the units were placed in a side-by-side configuration. The original proposal was presented to the Planning and Zoning Commission (P&Z) on April 8, 2009. After conducting a public hearing, the P&Z recommended approval of the proposed development by a 4-2 vote, contingent upon the following conditions:` 1.Uses are limited to residential uses only; 2.The maximum building height shall be 33 feet; 3.A 40-foot wide vegetative buffer is required abutting the residential subdivision to the west, using existing vegetation; 4.The maximum density shall be eight (8) dwelling units per acre and dwelling units in each building shall be constructed in a side-by side arrangement; 5.The maximum impermeable area shall be 50% 6.The parkway shall have a minimum width of 9 feet; and 7.The minimum side yard, as measured between buildings shall be 30 feet; or 15 feet, if lots are individually owned. Subsequent to the P& Council via a public hearing on June 16, 2009. Due to extensive neighborhood opposition and concerns expressed at the public hearing, the proposal was tabled to allow the applicant the opportunity to revisit with residents of the neighborhood and to integrate their concerns into a revised plan. As such, the applicant hosted several meetings with the community in an effort to address their concerns. The last meeting was held at the North Branch Library on Saturday, January 23, 2010. The concerns raised at the meeting are consistent with concerns raised in rd meetings prior to the January 23 meeting. They are as follows: Rent range and occupancy factors; Residents suggested that they would like to see the property left vacant, developed as a park, community gathering space or a garden; Residents were concerned about the habitats and where wild life will go during construction; Air Pollution, disruption of the environment and safety during construction; Duration of construction; Residents to the north did not want to look through their windows to see large buildings in their backyards; Neighbors were concerned that the development of the site as a multi-family development would over-burden the neighborhood schools, sidewalks and roads. As a result of the community meetings, the applicant made several revisions to the proposed development including the following revised overlay conditions: 1.Uses are limited to residential uses only; 2.A 40-foot wide vegetative buffer is required abutting the residential subdivisions to the west (Cooper Landing), to the east (The Village, Phase 1) and to the north (The Village, Phase 2); 3. A 25-foot wide vegetative buffer is required abutting the residential subdivision to the south (The Village, Phase 4); 4. A restrictive building zone of 210 feet (identified as Zone 1: 7.58 acres on the attached Exhibit 7) as measured from subdivisions to the west (Cooper Landing), east (The Village, Phase 1) and north (The Village Phase 2) shall carry the following restrictions: 2 a.The maximum building height shall be 36 feet; b.Dwelling units shall be placed in a side-by-side configuration; 5. A less restrictive building zone (identified as Zone 2: 4.75 acres on the attached Exhibit 7) shall carry the following restrictions: a.Dwelling units may be stacked vertically, provided the upper story dwellings are provided access by a covered stairway; b.The maximum building height shall be 40 feet; 6.In both of the building restrictions zones (Zone 1 and Zone 2 shown on the attached Exhibit 7), the following limitations shall apply: a.Building setback from the buffers identified in condition #2 and condition # 3, shall be 12 feet, excepting typical projections such as eaves, bay windows, porches, etc.; b.Separation between all buildings shall be 30 feet, except in the case of one-story garages, which shall be placed no closer than 15 feet from other buildings; 7.The parkway width shall be 9 feet if the site is developed as a gated community with private streets, or as wide as allowed by City Engineers; 8.The maximum density shall be 7.5 units per acre; 9.The minimum permeable area shall be 50%, excepting any ponds. In addition to the aforementioned community concerns, the City Council expressed concerns regarding whether or not a super majority vote was required to approve the rezoning request. State statute requires a supermajority vote from City Council if at least 20% of the owners of the land within 200 feet of the site being proposed for rezoning are opposed to the request. - owned property from notifications and computations. Department that individual notifications to the City of Denton should not be mailed to the City because individual notifications are sent out per the most recent municipal tax rolls and because City-owned property is not on the tax rolls, notification is not required. However, city-owned land is to be included in the area calculations. State statute (Section 211.006) specifically states that the area of streets and alleys is included in the computation. Since the City does not typically voice opposition, the effect of City-owned land on the 20% ratio is typically in the denominator (diluting the protest.) At the time of the City Council public hearing, 17% of the landowners were opposed to the request. Additional notices in opposition of the request were received the night of the public hearing. City Council was concerned that this did not allow staff the opportunity to obtain an accurate count of all property owners within 200 feet of the site in opposition of the request. Staff has included all notices received to date in the calculations to determine the percentage in opposition. The Planning and Development Department sent notices of the P&Z public hearing to fifty six (56) property owners within 200 feet and one hundred twenty six (126) courtesy notices to residents within 500 feet of the subject property. As of this writing, staff has received twenty- 3 five (25) responses from property owners within 200 feet of the subject property in opposition to the request. The 25 responses received in opposition represents 24% of the total land area within a supermajority vote is required by City Council to approve 200 feet of the site. Therefore, the proposal. No additional notices have been received from residents in support of or neutral to the request. PRIOR ACTION/ REVIEW December 8, 2008 ESA08-0020 Western stream buffer running north and south has been removed. The configuration of the stream buffer located along the northern boundary of the subject property has been modified to run along the existing drainage creek located north of the site. The existing stream buffer will not affect development of the site. April 8, 2009 Planning and Zoning Commission public hearing June 16, 2009 City Council public hearing February 16, 2010 City Council continued this item to March 2, 2010. OPTIONS 1.Approve as submitted. 2.Approve subject to conditions. 3.Deny. 4.Postpone consideration. 5.Table item. RECOMMENDATION The Planning and Zoning Commission recommends approval of the request (4-2) subject to the conditions identified on pages 1 and 2 of this report. DENIAL The Development Review Committee (DRC) recommended of the original proposal. APPROVAL However, the DRC is recommending of the rezoning request contingent upon the concept plan presented as Exhibit 7, and the overlay conditions identified on pages 1 and 2 of this report. A detailed description of ing for recommending approval is provided on pages 13 and 14 of this report. 4 EXHIBITS 1. Staff Analysis 2. Location Map 3. Existing Zoning Map 4. Proposed Zoning Map 5. Future Land Use Map 6. Notification Map and Response Information 7. Graphic Depiction 8. Planning and Zoning Commission Minutes (April 8, 2009) 9. City Council Minutes (June 16, 2009) 10. Zoning Ordinance 11. Site Photos Prepared by: u Johnna. Matthews Associate Planner Respectfully submitted: Mark Cunningham, AICP Planning and Development Director EXHIBIT 1 PLANNING & DEVELOPMENT STAFF ANALYSIS DATE TO BE CONSIDERED: CASE NO.: Z08-0016 March 2, 2010 LOCATION: The subject property is located west of Stuart Road and approximately 600 feet northwest of the intersection of Stuart Road and Windsor Street. APPLICANT Mr. Rick Baria 5138 Edwards Road Denton, TX 76208 OWNER: Trans-Atlas Financial P.O. Box 2051 Del Mar, CA 92014 REQUEST: Rezone the approximately 15.13 acres of land from a Neighborhood Residential 3 (NR-3) zoning district to a Neighborhood Residential Mixed Use 12 (NRMU-12) zoning district to allow a multi-family development. The applicant is also proposing an overlay district with conditions/restrictions. RECOMMENDATION: The Development Review Committee recommends approval of this zoning change request, subject to the conditions listed on page 2 and Exhibit 9 (Zoning Ordinance) of this report. COMPREHENSIVE The subject site is located within an Existing Land Use/Infill PLAN Compatibility future land use designation. DESIGNATION: SITE AND The site is currently undeveloped and is not platted. SURROUNDINGS: North: Neighborhood Residential 4 (NR-4) Single Family Homes South: Neighborhood Residential 6 (NR-6) Duplexes & Multi-family East: Neighborhood Residential 3 (NR-3) Single Family Homes West: Neighborhood Residential 3 (NR-3) Single Family Homes BACKGROUND The applicant is requesting to rezone the subject property from NR-3 to INFORMATION: NRMU-12 to allow a multi-family development, with consideration being given to an overlay district. According to the applicant, the bsequent owner will be proposed overlay conditions are included on page 2 of this report. The subject site has been vacant for more than twenty-five years and is 6 currently not platted. ANALYSIS: The subject site is located within the COMPREHESIVE PLAN ANALYSIS Plan reads as follows: ential areas, new development should respond to existing development with compatible land uses patterns, and design standards. The plan recommends that existing neighborhoods within the City be vigorously protected and preserved. Housing that is compatible with the existing density, neighborhood service, and commercial land The proposed zoning district; NRMU-12 is consistent with the above Comprehensive Plan Designation. That said, a comprehensive plan amendment is not required. The proposed use of the site as a multi- family development is consistent with land uses in the immediate area. Directly to the south of the site are similar land uses including multi- family dwellings such as Windsor Village Apartment Homes and Cooper Glen Apartment Homes and various other quadra-plexes as well as duplexes. The density of these existing multi-family dwelling range from 9 units per acre to 20 units per acre. The proposed NRMU-12 zoning district allows a maximum density of 12 dwelling units per acre. However, the applicant is proposing 7.5 dwelling units per acre, which is substantially less dense than existing multi-family dwellings in the area as well as what is allowed by the proposed zoning district. The Comprehensive Plan states th vigorously protected and preserved. neighborhood preservation and will be an enhancement to the neighborhood. In order to preserve and protect the single family neighborhoods to the north (The Village, Phase 2), west (Cooper Landing) and east (The Village, Phase 1), the applicant is proposing a 40-foot wide vegetative buffer. Additionally, the existing berm which blocks the view from the north will remain. Although land uses to the providing a level of protection to the south by providing a 25-foot wide vegetative buffer abutting the residential subdivision. At several meetings hosted by the applicant, residents expressed concerns of not wanting to look through windows and see extremely tall buildings in their backyards. In addition to the existing berm to remain, located on the north side of the site, in order to further preserve and protect the neighborhoods to the north, west and east, the applicant is proposing a 210-foot restrictive building zone. (See Exhibit 7). Within this restrictive building zone, the applicant is proposing additional 7 restrictions which limit the height of the buildings to a maximum 36 feet and buildings will not be stacked vertically in this restrictive building zone. In the current zoning district of NR-3 and the proposed zoning district of NRMU-12, the maximum height is 40 feet. Also within this restrictive zone, the applicant is proposing that buildings are setback 12 feet from the proposed 40-foot wide vegetative buffer abutting residential subdivisions to the north, west and east. The 12 foot building setback is also required from the 25-foot vegetative buffer abutting the residential subdivision to the south. In addition to the above, one of the primary residential housing policies of the Denton Plan is to provide alternative types of housing that respond to the differing economic and individual life- citizens that should be developed in all areas of the city to achieve balance and diversity. Further, the Plan encourages the development of affordable housing types for those with moderate incomes. According to the applicant, this project proposes to address the above needs identified in the Denton Plan. The NRMU-12 zoning district could potentially introduce uses that are DEVELOPMENT considered undesirable by the community, such as retail sales and CODE/ZONING services, laundry facilities, bed and breakfast facilities, temporary uses ANALYSIS and gas wells. To prevent future developers or landowners from developing the site with these uses and to assure neighbors that future owners will be obligated to the concept, the applicant is proposing that the ordinance only permit residential dwellings at this site. This will have the effect of being more restrictive than the existing zoning district of NR-3, as temporary uses, gas wells, and semi-public halls, clubs and lodges are permitted in the existing zoning district with limitations. The tables below highlight the above differences in uses permitted between the existing zoning district of NR-3; the proposed zoning district of NRMU-12, without an overlay district; and the proposed zoning district of NRMU-12 overlay: NRMU- NRMU- NR-3 12 Residential Land Uses 12 w/o Existing w/ overlay overlay Agriculture P P P Livestock L(7) L(7) L(7) Single Family Dwellings P P P SUP Accessory Dwelling Units L(1) L(1) L(1) Attached Single Family Dwellings SUP P P 8 Dwellings Above Businesses N P P Live/Work Units N P P Duplexes N P P Community Homes For the Disabled P P P Group Homes N SUP SUP Multi-Family Dwellings N L(4) L(4) Manufactured Housing Developments N N N NRMU- NRMU- NR-3 12 Commercial Land Uses 12 w/o Existing w/ overlay overlay Home Occupation P P N Sale of Products Grown on Site N N N Hotels N N N Motels N N N Bed and Breakfast N L(10) N Retail Sales and Services N L(15) N Movie Theatres N N N Restaurant or Private Club N N N Drive-through Facility N N N Professional Services and Offices N L(14) N Quick Vehicle Servicing N N N Vehicle Repair N N N Auto and RV Sales N N N Laundry Facilities N P N Equestrian Facilities N N N Outdoor Recreation P SUP N Indoor Recreation N N N Major Event Entertainment N N N Commercial Parking Lots N N N 9 Administrative or Research Facilities N N N Broadcasting of Production Studio N N N Sexually Oriented Businesses N N N Temporary Uses L(38) L(38) N NRMU- NRMU- NR-3 12 Industrial Land Uses 12 w/o Existing w/ overlay overlay Printing/Publishing N N N Bakeries N N N Manufacture of Non-odoriferous Foods N N N Feed Lots N N N Food Processing N N N Light Manufacturing N N N Heavy Manufacturing N N N Wholesale Sales N N N Wholesale Nurseries N N N Distribution Center N N N Wholesale Storage and Distribution N N N Self-service Storage N N N Construction Materials Sales N N N Junk Yards and Auto Wrecking N N N Kennels N N N Veterinary Clinics N N N Sanitary Landfills, Commercial N N N Incinerators, Transfer Stations SUP SUP Gas Wells N L(7) L(7) NRMU- NRMU- NR-3 12 Institutional Land Uses 12 w/o Existing w/overlay overlay Basic Utilities L(25) L(25) N Community Service N P N 10 Parks and Open Space P P N Churches P P N Semi-public, Halls, Clubs, and Lodges SUP SUP N Business/Trade School N N N Adult or Child Day Care SUP P N Kindergarten, Elementary School SUP SUP N Middle School N N N High School N N N Colleges N N N Hospital N N N Elderly Housing N L(13) N Medical Centers N N N Cemeteries N N N Mortuaries N N N Legend: P= Permitted N = Not permitted SUP = Specific Use Permit L(xx) = Limitations Apply L(1) = Accessory dwelling units are permitted, subject to the following additional criteria 1.The proposal must conform with the overall maximum lot coverage and setback requirements of the underlying zone. 2. The maximum number of accessory dwelling units shall not exceed 1 per lot. 3.The maximum gross habitable floor area (GHFA) of the accessory residential structure shall not exceed 50% of the GHFA of the primary residence on the lot, and shall not exceed 1000 sq. ft. GHFA unless the lot meets the requirements of L(1).5. 4.One additional parking space shall be provided that conforms to the off-street parking provisions of this Chapter. 5.The maximum gross habitable floor area (GHFA) of the accessory residential structure shall not exceed 50% of the GHFA of the primary residence on the lot, where the lot size is equal to or greater than ten acres in size. An SUP is not required for such an accessory residential structure where the lot size is 11 equal to or greater than ten acres. L(4) = Multi-family is permitted only: 1.With a Specific Use Permit; or 2.As part of a Mixed-Use Development; or 3.As part of a Master Plan Development, Existing; or 4.If the development received zoning approval allowing multi- family use within one year prior to the effective date of Ordinance No. _2005-224; or 5.If allowed by a City Council approved neighborhood (small area) plan. L(7) = Limited to two (2) animals on parcels one (1) to three (3) acres in acres in size. Additional animals may be added at a rate of one per each acre over three. L(10) = All restrictions of L(8), but limited to no more than 5 guest units L(13) = Uses are limited to no more than 55,000 square feet of gross floor area per lot. L(14) = Uses are limited to no more than 10,000 square feet of gross floor area. L(15) = Uses are limited to no more than 5,000 square feet of gross floor area per lot. An SUP is required for additional square footage for Semi-Public Halls, Clubs and Lodges. L(25) = If proposed use is within 200 feet of a residential zone, approval is subject to a Specific Use Permit. L(38) = Must meet the requirements of Section 35.12.9. The applicant is proposing more restrictive changes to the general regulations. For example, the Denton Development Code requires a Type B buffer based on a multi-family development abutting a single family subdivision. Single family homes directly abut the site on all sides; north, south, west and east. A Type B buffer includes a ten (10) foot planted strip that includes a combination of 5 evergreen and deciduous trees and 30 shrubs per 100 linear feet. The applicant is proposing to substantially exceed the buffer requirements identified in Subchapter 35.13 by providing a 40-foot wide vegetative buffer abutting the single - family subdivisions to the north, west and east; and a 25- foot vegetative buffer to the residential subdivision to the south. Additionally, the existing berm to the north (See Exhibit 10, Site Photos), which blocks the view from the north will remain. The applicant is also proposing building setback requirements of 12 feet from both buffers. The proposed zoning district allows a maximum density of 12 units/acre; the applicant is proposing 7.5 units/acre, which is substantially less dense than what is allowed by Code and substantially less dense than what is nearby within the existing neighborhood. 12 Neighborhood density for existing multi-family developments range from 9 units/acre to 20 units/acre. The minimum side yard for non- attached buildings is 6 feet in the existing zoning district of NR-3; 10 feet in the proposed zoning district of NRMU-12; however, the applicant is proposing 30 feet in restrictive Zone 1 and 15 feet in restrictive Zone 2. The maximum building height in both the existing zoning and proposed zoning districts is 40 feet; however, the applicant is proposing 36 feet in restrictive Zone 1. The following table illustrates the above differences between the general regulations of the existing zoning district (NR-3), the proposed zoning district (NRMU- NRMU- NRMU- 12 NR-3 12 General Regulations w/ w/o Existing overlay overlay 10 feet 15 feet Minimum Front Yard Setback 10 feet L(2) 6 feet Minimum Side Yard 6 feet 6 feet 10 feet Minimum Side Yard Adjacent to a Street 10 feet 10 feet 10 feet Minimum Rear Yard 10 feet 10 feet 7.5 Maximum Density, dwelling units per 3.5 12 (See acre Overlay Rules) 30 feet & Minimum Side Yard for Non-attached 15 feet 6 feet 10 feet buildings (See Overlay Rules) 50% Maximum Lot Coverage 50% 60% (See Overlay Rules) Minimum Landscaped Area 50% 40% 50% 36 feet & 40 feet Maximum Building Height 40 feet 40 feet (See Overlay Rules) 40 & 25- foot buffer on all sides 10 feet + 15 feet + + 210- 1 foot for 1 foot for foot each each restrictiv Minimum Side Yard when abutting a foot of foot of e zone + single family use or district building building 12 foot height height setback above above from 20 feet 20 feet buffers (See Overlay Rules) 13 DISD ANALYSIS One of the concerns raised at the neighborhood meetings is that the proposed development, if approved as a multi-family development would over-burden the existing neighborhood schools. Staff consulted with representatives from DISD and the following information was provided. The Denton Independent School District (DISD) determines where a student will attend school based primarily on the location of their residence in relation to a particular school zone. Elementary School: Based on the location of the subject site, elementary school aged students would attend Ginnings Elementary School located northeast of the site at 2626 Yellowstone Place. According to DISD, the functional capacity for Ginnings Elementary School is 740 students. To date, the number of students attending Ginnings Elementary School is 561 students. The DISD standard student generation multiplier for elementary schools is .06 students per unit in a multi-family development. That said, the Pine Creek Development would yield 7 additional elementary school aged students who would attend Ginnings Elementary School for the academic year commencing after completion of the Pine Creek project. The additional 7 students is well within the current student enrollment of 561 students and the current functional capacity of 740 students. Middle School Middle school aged students would attend Strickland Middle School located southwest of the site at 324 E. Windsor Drive. The functional capacity for Strickland Middle School is 1,000 students. To date, the number of students attending Strickland Middle School is 855 students. Based on the standard generation multiplier for middle schools, multi-family developments will yi proposal of 113 units, the proposed development would add 4 additional students who would attend Strickland Middle School the academic year after completion of the project. The additional 4 students would be within the current functional capacity of 1,000 students. High School: High school aged students would attend Denton High School located approximately 1.7 miles southwest of the site at 1007 Fulton Street. The functional capacity of Denton High School is 2,000 students. To date, the number of students attending Denton High School is 1,546 students. Based on the standard generation multiplier for high schools, multi-family developments will yield .03 high school students per unit. Based on the attend Denton High School the academic year after completion of the project. The 4 additional students would be within the current functional capacity of 2,000 students. 14 The above information is reflected in the table below: Current Proposed Functional School Attendance Student Yield Total Capacity Ginnings Elementary 561 568 School Students 7 Students Students 740 Students Strickland Middle 855 859 1,000 School Students 4 Students Students Students Denton High 1,546 1,550 2,000 School Students 4 Students Students Students The Development Review Committee (DRC) has reviewed the request DEPARTMENT AND and has provided comments and general information to the applicant. AGENCY REVIEW approval Staff recommends of the request based on the following reasons, which are explained in greater detail in the body of this report: 1. consistent with the existing density in the area and is substantially less dense than what is allowed in the proposed zoning district. 2.The considerable space in landscape buffer provides protection to the surrounding neighborhoods. 3.sed overlay district meets the City Council stated desire for adjustments to zoning rules, to allow fine tuning neighborhood protection, while allowing for reasonable development. 4.The 210-foot wide Restricted Building Zone provides the neighborhoods with less density and a more compatible building configuration. It serves as a transition between the more dense area to the south and the less dense neighborhoods beyond the 40- foot landscape buffer. 5.The proposed overlay district will not introduce any uses that are inconsistent with the Comprehensive Plan designation in the area or that are considered undesirable by the neighborhood. 6.The proposed use is consistent with the goals and policies of the Denton Plan in providing alternative housing types in all areas of the City and by encouraging the development of affordable housing types for those with moderate incomes. 7.Tmotes infill and reinvestment into a neighborhood in need of revitalization. 15 FINDINGS The criteria for approval of Zoning Amendments, per Subchapter 35.3.4.B.2 of the Denton Development Code require that: The proposed zoning conforms to the Future Land Use 1. element of the Denton Plan. The proposed zoning district (NRMU-12) will not require a Comprehensive Plan Amendment and is consistent with uses in the immediate area. The proposed development is consistent with the density within a ¼ mile walking density of the site. The proposed rezoning facilitates the adequate provision of 2. transportation, water, sewers, schools, parks, other public requirements and public convenience. Facilities are generally adequate. The applicant may be required to extend the waterline on Wolftrap Drive into the proposed development. This will be determined at the time of platting. 16 EXHIBIT 2 LOCATION MAP 17 EXHIBIT 3 EXISTING ZONING MAP 18 EXHIBIT 4 PROPOSED ZONING MAP 19 EXHIBIT 5 FUTURE LAND USE MAP / INFILL COMPATIBILITY 20 EXHIBIT 6 NOTIFICATION MAP & RESPONSE INFORMATION Public Notification Date: 24.38%) In opposition: 25 ( In Favor: 0 Neutral: 0 *A copy of the notification list can be picked up at City Hall West, 221 N. Elm Denton TX 76201 21 EXHIBIT 7 GRAPHIC DEPICTION 22 EXHIBIT 8 PLANNING AND ZONING COMMISSION MINUTES (April 8, 2009) 23 24 25 26 27 28 29 30 31 32 33 34 35 EXHIBIT 9 CITY COUNCIL MINUTES (June 16, 2009) 36 37 38 39 EXHIBIT 10 ZONING ORDINANCE 40 41 42 43 44 45 EXHIBIT 11 SITE PHOTOS Photo looking at the west side of the site looking at existing trees to be saved for a 40-foot wide vegetative buffer. Photo looking at existing berm on the north side of the site. The existing berm currently blocks the view of the neighbors to the north and will remain. 46 Photo taken on the east side of Stuart Road looking west at the site. Photo taken on the east side of the property looking southwest. 47 AGENDA INFORMATION SHEET AGENDA DATE: March 2, 2010Questions concerning this acquisition may be directed DEPARTMENT: Materials Management to Herman Lawson 349-7755/ Mark Nelson 349-7702 ACM: Jon Fortune SUBJECT Consider adoption of an ordinance accepting competitive bids and awarding a public works contract for the construction of the Downtown Denton Transit Center to be located at 604 E. Hickory Street, Denton, Texas.; providing for the expenditure of funds therefor; and providing an effective date (Bid 4444-awarded to the lowest responsible bidder meeting specification, Corbet Group, Inc. in the amount of $1,736,000). BID INFORMATION This bid is for the construction of the Downtown Denton Transit Center that will be located at 604 East Hickory, directly south of City Hall East. The City of Denton received a discretionary earmark in the amount of $3.1 million for the development of a bus multimodal transit facility in Downtown Denton, now known as the Downtown Denton Transit Center. Core City of Denton staff, Denton County Transportation Authority (DCTA) staff and Jacobs Consulting project team members met regularly beginning in July 2008 to outline project scope and design criteria on this joint project. The project will include the adaptive reuse of an existing City of Denton owned property at 604 East Hickory providing approximately 8,800 square feet of conditioned office and public meeting space. The eastern half of the facility will include general office space for DCTA bus operations staff and a joint use training and public meeting room. The remainder of the conditioned facility will include a public waiting area for transit passengers, a ticket office, ticket kiosk, restrooms and retail space to be finished out in the future by the private sector. The existing parking lot will be renovated to allow for approximately 60 parking spaces for transit patrons, DCTA employees, a passenger drop off area, and bike storage. The bus lane, bus shelters and the terminus of the Rail Trail Hike and Bike Corridor will be located along the western side of the parking lot and renovated structure. Additionally, the project will include a 45-foot clock tower and landscaped public plaza area at the intersection of Hickory Street and Railroad Avenue. This tower will serve as a focal point for the transit center and was designed to serve as an outdoor performance venue for local musicians and artists. The Downtown Denton Transit Center will compliment the proposed construction of the DCTA rail platform which will be located on an adjacent property along the west side of the Transit Center development. Agenda Information Sheet March 2, 2010 Page 2 BID INFORMATION (CONTINUED) The lower offerings of Speed Fab-Crete, Panattoni Construction, Inc. and Core Construction Services of Texas, Inc. failed to meet specification by not including the required Disadvantaged Business Enterprise (DBE) certification of 11% participation as outlined in the bid documents. RECOMMENDATION Award to Corbet Group, Inc. in the amount of $1,736,000. PRINCIPAL PLACE OF BUSINESS Corbet Group, Inc. Dallas, TX ESTIMATED SCHEDULE OF PROJECT A tentative ceremonial ground breaking event has been scheduled for March 22, 2010. Construction should start within two-weeks of that date. The completion target date, as advertised in the bid, is December 15, 2010. This will allow DCTA to transfer bus operations from the existing Connect Central at Williams Trade Square to the new facility prior to the initial FISCAL INFORMATION This project will be funded from account 950293001.1360.10100. Requisition 97637 has been entered in the Purchasing software system. This project is funded through an 80:20 Federal Transit Administration Grant and through an Interlocal Agreement with DCTA who will fund the local twenty-percent funding match. EXHIBITS Exhibit 1: Bid Tabulation Respectfully submitted: _________________________________ Tom Shaw, C.P.M., 349-7100 Purchasing Agent 1-AIS-4444 ORDINANCE NO. _________ AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A PUBLIC WORKS CONTRACT FOR THE CONSTRUCTION OF THE DOWNTOWN DENTON TRANSIT CENTER TO BE LOCATED AT 604 E. HICKORY STREET, DENTON, TEXAS.; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN EFFECTIVE DATE (BID 4444-AWARDED TO THE LOWEST RESPONSIBLE BIDDER MEETING SPECIFICATION,CORBET GROUP, INC. IN THE AMOUNT OF $1,736,000). WHEREAS, the City has solicited, received and tabulated competitive bids for the construction of public works or improvements in accordance with the procedures of State law and City ordinances; and WHEREAS, the City Manager or a designated employee has received and recommended that the herein described bids are the lowest responsible bids for the construction of the public works or improvements described in the bid invitation, bid proposals and plans and specifications therein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The following competitive bids for the construction of public works or improvements, as described in the "Bid Invitations", "Bid Proposals" or plans and specifications on file in the Office of the City's Purchasing Agent filed according to the bid number assigned hereto, are hereby accepted and approved as being the lowest responsible bids: BID NUMBER CONTRACTOR AMOUNT 4444 Corbet Group, Inc. $1,736,000 SECTION 2. The acceptance and approval of the above competitive bids shall not constitute a contract between the City and the person submitting the bid for construction of such public works or improvements herein accepted and approved, until such person shall comply with all requirements specified in the Notice to Bidders including the timely execution of a written contract and furnishing of performance and payment bonds, and insurance certificate after notification of the award of the bid. SECTION 3. The City Manager is hereby authorized to execute all necessary written contracts for the performance of the construction of the public works or improvements in accordance with the bids accepted and approved herein, provided that such contracts are made in accordance with the Notice to Bidders and Bid Proposals, and documents relating thereto specifying the terms, conditions, plans and specifications, standards, quantities and specified sums contained therein. SECTION 4. Upon acceptance and approval of the above competitive bids and the execution of contracts for the public works and improvements as authorized herein, the City Council hereby authorizes the expenditure of funds in the manner and in the amount as specified in such approved bids and authorized contracts executed pursuant thereto. SECTION 5. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 12010. MARK A. BURROUGHS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ANITA BURGESS, CITY ATTORNEY BY: 3-ORD-Bid 4444 AGENDA INFORMATION SHEET AGENDA DATE: March 2, 2010 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: Construction Advisory & Appeals Board – Daniel Hurt has moved outside the city limits. A nomination is required from Council Member Heggins. Human Services Advisory Committee – Mayor Burroughs has a nomination for the vacant position held by Angie Jester. 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 2-16-10.doc r F ; HANDOUT TO COUNCIL 3212.0 p 1 MINUTES 2 PUBLIC UTILITIES BOARD 3 February 8, 2010 4 5 After determining that a quorum of the Public Utilities Board of the City of Denton, Texas was 6 present, the Chair of the Public Utilities Board thereafter convened into an Open meeting on 7 Monday, February 8, 2010 at 9:00 a.m. in the Service Center Training Room, City of Denton 8 Service Center, 901-A Texas Street, Denton, Texas. 9 10 Present: Chair Dick Smith, Bill Cheek, Phil Gallivan, John Baines, Randy Robinson, Bill 11 Grubbs and Barbara Russell 12 13 Ex Officio Members: 14 George C. Campbell, City Manager 15 Howard Martin, ACM Utilities 16 17 OPEN MEETING: 18 19 ITEMS FOR INDIVIDUAL CONSIDERATION: 20 21 Consider rejection of all bids received in conjunction with Bid No. 4457 for the construction of 22 the Pecan Creek Interceptor I project. 23 24 ACM Martin called on City Engineer Frank Payne to present this item. Payne stated that on 25 January 28, 2010 the City received thirteen bids for the Pecan Creek Interceptor I project. One 26 bid was rejected because it was deemed non responsive by the purchasing agent and out of the 27- twelve remaining bids, eight.out of twelve bids were within a ten percent range. The two lowest 28 bids were within $15,000 of each other. Payne stated that he normally does not ask for backup 29 data from the two lowest bidders, but because the bids were so close and staff did not know 30 either one of the low bidders, staff asked for backup data (financials, equipment lists and 31 references) from both. When staff received the backup from Whitewater Construction out of 32 Waco, Texas staff found that Whitewater's experience was somewhat lacking. It has not done 33 any sanitary sewer projects larger than fifteen inches in size. Payne stated this is a big project of 34 about 6,000 feet of line primarily sized from 36" up to 48". This is one of the most important 35 lines and one of the influent lines into the Pecan Creek Water Reclamation plant which means 36 there is an amount of risk associated with construction. 37 38 When staff received the experience record, staff also asked for an equipment list and financials. 39 Staff did not see anything unusual; Whitewater had about $3 million in projects on tap, but the 40 equipment listing caused some concern. Whitewater. had two excavators with one purchased in 41 1973 and the other in1998 which would likely have a lot of hours on it. The City has had a 42 number of bidders received lately that did not have any experience in the City of Denton and has 43 had difficulty with the low bidder in performance and in finishing the project. Staff does not 44 believe that the City has that kind of flexibility with this project and felt the City needed a 45 reputable contractor as well as a good bid. 46 47 Payne then stated that the engineering staff is relying on the general provisions and the general 48 section of the specification which states: "This project shall be constructed by utilizing the 49 October 2004 edition of the North Central Texas Council of Government's Standard 50 Specifications for Public Works Construction (NCTCOG, hereafter). Any permissible deviation 51 from those standard specifications shall be noted either in the General Provisions, Special Minutes of the Public Utilities Board, meeting February 8, 2010 Page 2 of 3 1 Contract Requirements and Bid Item Definitions, City of Denton Amendments to NCTCOG 2 Specifications, or the Construction Plans." Section 102.12 of the October 2004 edition of the 3 North Central Texas Council of Governments Public Works Construction Standards states that 4 "bidders may be disqualified and their proposals not considered for any of the following reasons" 5 and then provides a list of eight items for consideration. Item (5) in this listing states that the 6 bidder can be disqualified and their proposal not considered because of a "lack of competency, 7 skill, judgment, financial capability, integrity, reputation, reliability or responsibility to perform 8 the work as revealed by the bid proposal, bid questionnaires, financial statement, performance 9 history or other relevant information obtained by the OWNER." In the judgment of Utility and 10 CIP Engineering staff, based on a review of the information provided by Whitewater I 1 Construction Inc. this bidder can be disqualified on the basis of the language in the NCTCOG 12 standards. 13 14 Payne added that the Legal Department believes that if staff was to evaluate the bidder on its 15 experience with this specific size and type of pipe, it should have included those criteria in the 16 specifications; it was not. The recommendation by Legal is to reject all bids and to rebid the 17 project. Payne then stated that there are three options; one, the City can take the risk and award 18 to the low bidder Whitewater; two, roll the low bidder and award to the second low bidder, John 19 Burns Construction; and, three, reject all bids and-redo the process. Based on Legal's 20 recommendation, staff is recommending option three. 21 22 Chair Smith questioned did not the bidding process ask for experience in laying the larger pipe. 23 Payne stated that typically staff would expect that someone who bidding a project of this nature 24 would not bid unless they had similar wet utility experience. The bid did not ask for experience 25 specifically, but usually staff will ask that question after receiving the bids which is a normal 26 thing to do. Chair Smith questioned that staff does not know a lot about John Burns 27 Construction. Payne replied that is correct. Chair Smith then added there is the work Burns has 28 done for the City of Dallas. Payne stated that Burns submitted the same documentation asked of 29 Whitewater and Burns' company matched well with the scope of this project. Chair Smith asked 30 if in the bidding process there is a way to not only qualify the bids by dollar amount but to 31 qualify the bidders by past performance by asking specific questions which are feasible. Payne 32 replied there is and that staff thought that the bid specifications were tight enough based on the 33 cost and that is why when staff asked for experience documentation and-in his opinion this was 34 not a responsible bid; but that is not the way Legal defines it. 35 36 Chair Smith then asked if the project is rebid what additional information will be asked for so 37 this issue does not reoccur. Payne replied that it is going to be somewhat difficult but that staff 38 would insert language regarding the length of time doing this particular type of work and 39 experience with these types of pipes. 40 Board Member Grubbs asked how long the project would be delayed. Payne replied if this item 41 is considered during the February 16, 2010 Council meeting the delay will be approximately one 42 to two months. If Council considers it in March it be will be an additional month. 43 44 Board Member Gallivan asked how the city is going to rebid without it being fairly obvious. 45 Chair Smith asked about the risk of legal action by the low bidder. Board Member Cheek asked 46 if there is a precedent of the City doing this before. Payne discussed his past experience with 47 bypassing the low bidder on a large water line project. Assistant Director Fisher replied on two Minutes of the Public Utilities Board meeting February 8, 2010 Page 3 of 3 1 occasions the City rolled low contractors because when in reviewing the work history it was 2 determined that the contractor was a financial risk on similar jobs and had been thrown out of the 3 State of New York for falsifying records and at that time staff felt that project had enough 4 importance and complexity to take that risk. 5 6 Board Member Russell asked for Utility Attorney Copeland's opinion. Copeland stated in his 7 recollection that in the eighteen year of employ by the City, he cannot remember a time when the 8 City was taken to task at the courthouse by a bidder. This is a very protective decision that Legal 9 is taking. 10 Board Member Cheek stated that rejecting all bids could possibly open the City up for suits from 11 other bidders. 12 13 Chair Smith asked if staff is satisfied with the capability of the number two bidder, John Burns. 14 Payne replied that to the best of knowledge and based on calling references and looking at the 15 work experience record Burns appears to be well qualified. 16 17 Board Member Gallivan stated that if the low bidder was ten to twenty percent less than the next 18 bidder, one might be more apt to question the judgment, but considering the tightness of the 19 difference he does not believe that will happen. Board Member Gallivan stated that the City just 20 needed to make a business decision here. City Manager Campbell stated he is inclined to agree 21 that there is some risk from a number of other bidders if the City doesn't make a decision on one 22 of the two low bids. 23 24 Board Member Robinson stated that by not awarding a bid, prices and the cost of the project will 25 go up and one should weigh the potential damages that the low bidder might have against the 26 profit margin. 27 .28 Chair Smith called for a motion. 29 30 Board Member Gallivan moved to approve Option 2 that recommends award of the 31 contract to the second low bidder, John Burns Construction Company of Texas, Inc., with 32 a second from Board Member Grubbs. The motion was approved by a 7-0 vote. 33 34 The meeting was adjourned by consensus at 11:30 a.m. 35 36 37 Richard E. Smith, Chair Howard Martin, ACM Utilities 38 39 Ann Forsythe, Coordinator Boards and Commissions 40