HomeMy WebLinkAbout2006-090ORDINANCE NO. 2006- eM
AN ORDINANCE OF THE CITY OF DENTON, TEXAS APPROVING THE "FIRST
AMENDMENT TO INTERLOCAL COOPERATION AGREEMENT BY AND BETWEEN
THE DCTA AND THE CITY OF DENTON FOR THE ELAP PROGRAM DATED JANUARY
1, 2004;" AUTHORIZING THE MAYOR TO EXECUTE AND DELIVER SAID FIRST
AMENDMENT; ACCEPTING AND RECOGNIZING THAT CERTAIN LETTER OF
UNDERSTANDING DATED MARCH 14, 2006, ISSUED TO THE CITY BY THE
EXECUTIVE DIRECTOR OF THE DENTON COUNTY TRANSPORTATION AUTHORITY;
PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, in early 2004 after the creation of the Denton County Transportation
Authority ("DCTA"), City of Denton staff initiated a dialogue with DCTA staff and expressed
concerns of equitability regarding the amount of sales tax revenue being generated by the
allocation method used by DCTA for its Enhanced Local Assistance Program ("ELAP"); and
WHEREAS, the City of Denton staff pointed out to DCTA staff that since state
legislation which became effective in October 2001, that the City of Denton had opted to retain
the portion of the sales and use tax and retain that portion of the sales tax that the municipality
collects and that constitutes the municipality's own tax; in availing itself of this option; in so
doing, the City legally avoids a two -percent administrative charge that the State Comptroller's
office applies to sales tax revenues for municipalities; and
WHEREAS, the other member cities of DCTA are required to remit all of their sales tax
collections to the State Comptroller, therefore the DCTA allocation formula that was initially
established did not recognize a portion of sales tax revenues generated in the City of Denton; this
resulted in a lower and an inequitable ELAP allocation for the City of Denton; and
WHEREAS, the Board of Directors of DCTA, in late 2005 recognized this inequity and
passed its Resolution No. 90-06 and amended the guidelines for the ELAP program on the 261h
day of January, 2006, attached hereto as Exhibit "A'; further the Board at that time approved
entering into a "First Amendment to Interlocal Cooperation Agreement by and between the
DCTA and the City of Denton for the ELAP Program dated January 1, 2004" ("First
Amendment"); said First Amendment is attached hereto as Exhibit `B".; and
WHEREAS, after legal review of Resolution No. 90-06 of DCTA and of the First
Amendment, by the City of Denton's attorneys, it was noticed that several provisions were not
expressed that clarify the effective date of the audit and re -allocation; the City therefore obtained
a Letter of Understanding from DCTA, dated March 14, 2006, which clarified the provisions of
the First Amendment; and which Letter of Understanding is attached hereto after the final page
of Exhibit `B."
WHEREAS, the City Council of the City of Denton hereby finds that the "First
Amendment to Interlocal Cooperation Agreement by and between the DCTA and the City of
Denton for the ELAP Program dated January 1, 2004" which is attached hereto, is made a part
hereof and is incorporated by reference (hereafter the First Amendment'). This First
Amendment serves a municipal purpose and a valid lawful purpose which helps fund public
transportation activities of DCTA, and is therefore found to be in the public interest of the
citizens of the city; the City Council also finds that the "Letter of Understanding" dated March
14, 2006, and executed by the Executive Director of DCTA, further clarifies the meaning of the
First Amendment, is also incorporated by reference in this ordinance, and is accepted by the City
of Denton; NOW THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings set forth in the preamble of this ordinance are incorporated
by reference into the body of this ordinance, as if fully set forth herein.
SECTION 2. The Mayor, or her designee, is hereby authorized to execute and deliver
the First Amendment, attached hereto as Exhibit `B" to DCTA; in addition, the Mayor, or her
designee, is also hereby authorized to accept and recognize the Letter of Understanding dated
Mar h 14, 2006 on behalf of the City; and the Interim City Manager is authorized to carry out the
duties and responsibilities of the City under the First Amendment, including the expenditure of
funds as provided in the First Amendment and the Letter of Understanding.
SECTION 3. This ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the day of 2006.
eaA'4� X Ct—
EULINE BROCK, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
By:
APPRO D AS TO LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
By: ,1
SAOur Documents\Ordinances\06\D A -First Amendment-ELAP-Ordinance-Ldoc
Page 2
EXHIBIT A -�C j /FD 1 0 lODB
Denton County
1 Transportation Authority
1660 South Stemmons, Suite 250
DJ4 Lewisville, Texas 75067
www.d=.net
Ph: (972) 221-4600 Metro: (972) 434-9922 Fax: (972) 221-4601
Hoard of Directors
Chairman February 6, 2006
Charles Emery
Vice Chairman Mr. Howard Martin
Jae Roy Interim City Manager
City of Denton
Secretary City Hall 215 Fast McKinney
Dorothy Palumbo Denton, TX 76201
Treasurer Dear Mr. Martin:
Charles Corcell
Randy Corr
At the request of a Member City, the Denton County Transportation Authority Board of
90-06 on January 26, 2006 to amend the Interlocal
Skip Kalb Directors passed Resolution R
Jason Pierce Cooperation Agreement by and between the DCTA and the City of Denton for the
Doug Peach Enhanced Loco! Assistance Program. The amendment was adopted to more equitably
PaRobertson
Paul Ruggierc allocate program funding to the eligible cities of Denton, Highland Village and
Jeff Snowden Lewisville.
Tom spencer
Femando Villarreal
Sill Walker I have enclosed the Resolution and the amendment to the Interlocal Cooperation
Agreement. Please forward a signed copy of the ICA amendment when approved by the
Denton City Council.
Executive Director
John O. Hedrick
Please call the FLAP coordinator, ]arod Varner, Director of Finance an
Administration, Terry Howerter, or tree if you have questions about the amendment. If
you wish, a DCTA representative can attend the council meeting that will consider the
resolution.
Since el ,
Hedrick
ve Director
DENTON COUNTY TRANSPORTATION AUTHORITY
COPY
RESOLUTION NO.9M6
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE DENTON COUNTY
TRANSPORTATION AUTHORITY (DCTA) APPROVING AMENDMENTS, AS PROVIDED IN
MUBIT "A", TO THE ENHANCED LOCAL ASSISTANCE PROGRAM GUIDELINES
ADOPTED BY BOARD OF DIRECTORS OF THE DCTA; AND PROVIDING AN EFFECTIVE
DATE.
WHEREAS, the Board of Directors of the DCTA adopted guidelines for the Enhanced Local Assistance
Program; and
WHEREAS, The Board of Directors of the DCTA finds that it is in the best interest of the DCTA to
amend the guidelines of the Enhanced Local Assistance Program as provided in Exhibit "A".
NOW, THEREFORE, BE IT RESOLVED 13Y THE BOARD OF DIRECTORS OF THE DENTON
COUNTY TRANSPORTATION AUTHORITY THAT:
SECTION 1. That the Enhanced Local Assistance Program Guidelines are amended as provided in Exhibit
SECTION 2. The Board of Directors authorizes the Executive Director to republish the Enhanced Local
Assistance Program Guidelines in their entirety with the approved amendments.
SECTION 3. The Board of Directors of the Denton County Transportation Authority hereby finds and declares
that all the recitals contained herein to be true and correct and approves and adopts the sane herein as part of this
Resolution.
SECTION 4. If for any reason any section, paragraph, subdivision, clause, phrase or provision of this Resolution
shall be held invalid, it shall not affect any valid provisions of this or any other Resolution of the Denton County
Transportation Authority to which these rues and regulations relate.
SECTIONS. This Resolution shall become effective immediately upon its passage.
DULY PASSED AND APPROVED BY THE BOARD OF DIRECTORS OF THE DENTON
COUNTY TRANSPORTATION AUTHORITY THE 26ra DAY OF JANUARY, 2006_
APPROVED:
f C/b.�KcEru ,
ATTEST:
poroy4,y 4?-1uVMV , Secretary
APPROVED AS TO FORM:
Peter G. Smith, General Counsel
{
Exhibit "A"
"GUIDELINES FOR THE ENHANCED LOCAL ASSISTANCE PROGRAM
(ELAP)
C. PROGRAM FUNDL\'G
Funding for The FLAP is exclusively firom the sales and use tax received by DCTA. A
percentage of the net mombly collections, derived by a formula applied to not collections of
each Eligible City, will be apportioned to the ELAP fend for the benefit of the eligible city.
Net monthly collections are identified using the pubbsbed Texas State Comptroller's
Allocation Payment Detail for each eligible city. Net collections for an eligible city are the
total collections each month less the service fee and current retained amount, with credit for
the prior retained amount, as defined by the Comptrollers "Components of Allocation
Payments." In addition the City of Denton will increase its mombly Net Collections by
adding the City of Denton sales tax on municipal sales to customers within the mtmicipal
limits collected by the City of Denton and not remitted to the Comptroller service fee
currently set at 2%
I -
Exhibit B
STATE OF TEXAS § First Amendment to Interlocal Cooperation
§ Agreement by and Between the DCTA and the
§ City of Denton for the ELAP Program dated
COUNTY OF DENTON § January 1, 2004
THIS AGREEMENT is made and entered into by and between the City of Denton,
Texas, a home rule city, a political subdivision of the State of Texas (hereinafter the "City") and
the Denton County Transportation Authority, (hereinafter the "Authority'), each acting by and
through and under the authority of their respective governing bodies and officials in accordance
with the Interlocal Cooperation Act, Chapter 791 of the TEX. GOVERNMENT CODE (the "Act");
and
RECITALS:
WHEREAS, the City and the Authority find that the Enhanced Local Assistance
Program, intended to improve mobility within the City for projects approved by the Authority, is
in the public interest of the City and the Authority; and
WHEREAS, the City and the Authority previously entered into that certain Interlocal
Cooperation Agreement dated January 1, 2004 ("the Original Agreement") in regards to the
Authority's Enhanced Local Assistance Program ("ELAP");
WHEREAS, the City and the Authority desire to amend Exhibit A to the Original
Agreement which provided for the Enhanced Local Assistance Program Guidelines (hereinafter
the "Guidelines"); and
NOW THEREFORE, for and in consideration of the promises and the mutual covenants
set forth in this Agreement, the Parties hereby agree as follows:
l . That Exhibit "A" of the Original Agreement is hereby amended by amending Section C;
"Program Funding" to read as follows:
"C. PROGRAM FUNDING:
Funding for the ELAP is exclusively from the sales and use tax received by DCTA. A
percentage of the net monthly collections, derived by a formula applied to net collections of each
Eligible City, will be apportioned to the ELAP fund for the benefit of the eligible city during the
program. Net monthly collections are identified using the published Texas State Comptroller's
Allocation Payment Detail for each eligible city. Net collections for an eligible city are the total
collections each month less the service fee and current retained amount, with credit for the prior
retained amount, as defined by the Comptrollers "Components of Allocation Payments." In
addition the City of Denton will increase its monthly Net Collections by adding the City of
Denton sales tax on municipal sales to customers within the municipal limits collected by the
City of Denton and not remitted to the Comptroller less the Comptroller service fee currently set
at 2%."
63035
2. That the Interlocal Cooperation Agreement by and between the DCTA and the City of
Denton effective January 1, 2004 shall remain in full force and effect except as amended herein.
3. The amendment to the Original Agreement as set forth herein shall become effective on
the last date of execution by the parties.
IN WITNESS WHEREOF, the parties have executed this Agreement in multiple originals to be
effective as of the date first written above.
ATTEST:
fIn
City
APP=derCity
ORM:
By:
ATTEST:
THE CITY OF DENTON,
M
Hon. F,,uiine Brock, Mayor
DENTON COUNTY TRANSPORTATION
AUTHORITY
By:
a es Emery, Chai an
Denton County Tran portation Authority
Dorothy Flalumbo, Secretary
Denton County Transportation Authority
APPROVED AS TO LEGAL FORM:
By: "" "' ' ' Z
Peter G. Smith, General Counsel
2
63035
CITY OF DENTON, TEXAS
A Texas Municipal Corporation
By: �Gt �' `� Aa,
EULINE BROCK, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
By:
APPROVED AS TO LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
ki
By:
'P
—
SdOur DocummN Contracts\06\DCTA-First Amendment-ELAP ProgrnmSig Pg.d«
DCTA
March 14, 2006
Mr. Mark Nelson
City of Denton
215 East McKinney
Denton, TX 76201
Denton County Transportation Authority
1660 S. Stemmons, Suite 250 • Lewisville, TX 75067
972-221-4600 • fax 972-221-4601 • wwwActa.net
RE: Letter of Understanding by and between DCTA and the City of Denton
Modified ELAP Apportionment
Mr. Nelson:
As you are aware, the Enhanced Local Assistance Program provided to the participating cities by
Denton County Transportation Authority (DCTA) was modified on January 26, 2006, at the
request of the City of Denton.
For clarification, this letter is being circulated in addition to the amended Interlocal Agreement to
incorporate the following:
➢ Modification to the ELAP apportionment process will apply to collections from January
1, 2004 through the end of the program on December 31, 2007.
➢ DCTA will provide all participating cities with revised apportionments according to the
prescribed modification and change in methodology.
➢ Effective date of the modification is dependent on all parties' execution of the
Amendment outlined in DCTA Resolution 90-06.
Please let me know if you need additional information as DCTA stands ready to assist you with
this important program.
Jelin O. Hedrick
Executive Director
Cc: Paul Ruggiere
Terry Howerter
Jarod Varner