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01-10-1989 w i t r AGENDA CITY OF DENTON CITY COUNCIL Janur.3y 10, 1989 special Call Meeting of the City of Denton City Council on Tuesday, January 10, 1489, at 5:30 p.m. In the Civil Cefense Room of City Hall, 215 E. McKinney, Denton, Texas at which the frllowi^y item will be considered: `p 5:30 p.n,. 1. Consider legislation to create a Regional Mater and Wastewater System for Denton County. At 7:00 p.m., the City Council will convene in the Council Chambers of City Hall, 215 E. McKinney, Denton, Texas at which the following item will be considered: 7:00 p.m. 1. Consider adoption of an ordinance annexing 135 acres located south of Mills Road, east of Mayhill Road, and north of McKinney Street adjacent to existing city limits (A-55). (The Planning and Zoning Commisson recommends approval). f ~I C E R T I F I C A T E I 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 , 1980 at o'clock (a.m.) p.m. SECRETARY "ZTTY 3022C 1 I J s January 3, 1989 / CITY COUNCIL WORK SESSION TO: IdAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Lloyd V. Harrell, City Manager SUBJECT: Upper Trinity Municipal Water Agency 1 RECOMMENDATION No action required at this time. SUMMARY/BACKGROUND f In the early 1980's, Denton began to be asked to provide %vholesale water to Its neighbors and, In 19860 the Public Utilities Board Included in their Master 'tan, the following paragraphs regarding reglonal water/wastewater pinnnings Water "Denton will establish Itself as a regional water supplier utilizing Dallas water for entitles other then the citizens of Denton. However, Denton will explore participation In a regional water treatment entity to meet the region and Denton's future needs. Such entity shall have appropriate controls placed upun it that Denton could appropriately share in the control of Its functions, operations, pricing and growth" Wastewater "Denton will establish itself as a regional war~.ewater treatment entity. Denton will, where economically feasible, encourage discharge of wastewater Into Denton's wastew~s.er collection and treatment system. Where not feasible, Denton will take an active role In operatingg ans; monitoring wastewater treatment systems} developed in the northwest Denton County region, and area generally bounded by the Elm Fork of the Trinity River on the east and the Hickory Creek Branch of Lewisville on the south." z t I` Y II I I y 2 I lsted with Lake Cities Municipal Utility As events progressed and Denton negot Y~ater Supply Corporation for Authority, hiickory Creek, Argyle and Argyle sale of wholesale water and weslewater services, the i ublic Utllite`tBoard and City Council expressed serious concerns about Denton ullizing lte i cost water plant to serve whoiesola customers, and then r ter plant to replace rolatively low cap e.we, essences the concerns required to build a new and much more Wholesale Gusto expensive capacity being utilized revolved around providing water at averorle costs ve highest incremental costs. How recedcnt regarding Providing average cost for _ rr, llegal and regulatory p e eve wholesale water vs highest incremental cost had been set In the case of Delles Dallas o In the m.1970s. vs itre wholesale watlcrc~siomerrcitiea basedduponttheIncremental tcost Pof new 4 develop terse for the haa euilicient water suppt for it's own liesend reaer)o're and treatment facilities and to retain cit;r;ns, Delles claimed correctly that they plants for the citizens of Dallas and that high cost new reto such atr sheep treesment Rey Roberts, and treatmer,l, pionts wsre Primarily vequired serve Issue the rapidly growing suburb customer. In fact, this was a major reason f Of Rey Roberts Reservoir being delayed for several years. W The Texas Department of Water Resources (now the Texas Water Commission) T Uallas being required to change its position and and court action resulted in acllitlea offer all water rights, reservoirs end treatment f on essentleliy an average cost basis to its own citizens and customer cities alike. With this background, Denton structured its wholesale water Lake Cities Municipal Plater Authority and Hickory water contracts until Denton required builii its pcovide ntheir own capital sand become pert ere customers would be neighboring city with Denton in a new water plant. In addition, each time a I 62621Jo2 ti4 S i k ii 3 s? would discuss purchasing wholesale water from Denton and request assistance in building a water transmission line from Denton's s)stem to their community, the Public Utilities Board and City Council expressed serious reluctance to spend Denton citizens' funds to help extend water lines for other communities. These issues and concerns led the Denton Staff to shy away from taking on the role of a regional water/wastewater supplier. The focus wed then directed toward helping develop an independent regional water agency who could provide these services. The Staff believes there are four basic alternatives Plr Denton. Each has pros and cans. These alternatives arei 1. Denton become a Regional Agency i 7 ! Pros a) Denton has complete control. i U) Denton may Increase Its influence in the county. I ~ Cons a) Probably would be required to provide services at average cost vs Incremental costs b) Customer cities may become resentful of Denton's control over their water services i c) May have to stare Denton's water rights In Lewisville and Flay Roberts Lakes. d) Regulatory bodies and courts may exercise more authority over Denton. I ,I e) Would have to provide all up-front capital for new reservofis, plants and pipelines. i f) Major staff effort in maintaining negotiations with customer cities. 2. Denton, alone or with partners, create a 11511' non-profit corporation to serve as a Regional Agency. (Denton and Lewisville have already done this.) 1 Pros a) Denton maintains majority control. b) Denton maintains influence In the County. c) Denton somewhat limits Its liability relative to option 1. d) Denton could possibly avoid sharing water rights and "everage" facility costing (but this is not certain). j 626211x3 l z 3 4 r;ons a) Customer cities may reject concept citing lack of control In decisions but carrying full obligation for payment of costs. b) Denton would have to odd staff to handle this effort. c) Regulatory bodies and courts may exercise more authority over Denton. d) Council would have to spend ^mhstantial time in ratifying contracts, bond issues, rates, etc. e) Denton may have to share more costs in pipelines then in option 3 or 4. 3. Denton participate in Creation of an Independent Regional Agency Pros a) Denton maintains some degree of control and, by its j membership and dominant size in the County, can maintain a substantial degree of influence. b) Much more acceptable to all entitles in the region relative to options I and 2. c) Removs any liability from Denton except that for which Uenton may specifically contract. j d) ices support of Texas Water Commission, Water Development hoard and North Central Texas Council of Governments. e) Reduces Denton's staff time requirements relative to options I dod 2. d) Reduces regulatory and legal oversight of Ucnton's system relative to options l and 2. Cone e) Denton does not have complete control. b) Denton's Influence would be less than options 1 and 2 c) Could create an entity that may exercise some Influence over Demon's raw water options In the future. r~ 4, Do not participate In Creation of a Regional Agency Pros o) Ocnton is removed from any obligations of the agency. ! b) Denton's staff time Is substantially reduced. I 6262U:4 i l V I cons o) Agency will probably be created and Oenton would have no Influence b) Agency may embark on projects Denton does not think are in the best interests of Denton. c) Denton may find it necessary to be partners with the Agency in water supplies or facilities, but have less influence In structuring the arrangement than in option 3. d) Denton may occeslunally have to resort to an adversarial role with the Agency to gain desired ' Influence over the Agency's actions. All of the above pro and con issues should be supplemented with the general "advantages and disadvantages" listed on page 4 and 5 of the Council backup information of December 13, 1988. I I RESPONSES TO COUNCIL QUESTIONS OF DECEMBER 13, 1988 C A number of questions and Issues were raised at the last meeting and others submitted to the Staff in writing. Following is a listing of these questions and Issues and the Staff's responsesr 1 Issue Denton Contracts with Neighbor Cities i 1 i In conjunction with the sale of "surplus" water and wastewater services to neighboring communities, Denton has repeatedly taken the position that each of the neighbors must make plans for permanent service without reliance on Denton's infrastructure. is the proposed legislation consistent with that j • policy? Response Yes. In fact, the legis!atlon will provide us a tool for carrying out that policy. That was one of our mein purposes for helping fund the study. Denton's water contracts with Lake Cities Municipal Water Authority ar, f Hickory Creek, at the request of the PU13 and Council, are interim contracts only. These contracts have provlclons whereby we agree to treat water for I ' these customers at our existing plant only until Denton builds another plant. At that time, these wholesale 1 i 6262Ui5 d t i, i 6 customers nerd to become an equity owner In Denton's new plant and Lrovide capital construction funds. The Regional District will provide a method for these wholesale customers, J and several other area cities who have requested wholesale 1 services from Denton, provide the needed financing. Issue Demon's Embedded System Cost i Will the proposed regional system be able to Impose new costs on Denton or ts!<e control of Denton's low cost facilities? I Response No. The legislation prohibits the District from taking over any city facility without that city's permission. The District may { not Impose any cost on ttie city. All services will be voluntary. ` The city would request such service from the District only if the District could do It better or et less cost. If the District is available to the other cities, it provides us a mechanism to retain our existing, lower cost facilities, for the benefit of Denton citizens. 1 ~ J Issue Another TMPA What will keep the Upper Trinity Regional Water District from creating similer concerns that Denton has with TMPA? Response The legislation will prevent another TNIPA because the concerns of Denton about TMPA were taken into account when It was drafted. Denton can serve on the Board, help establish the policies of the agency, then observe the track record of the h agency for a few years before deciding If It wants to negotiate a contract for service. If Denton exercises Its leadership role, there is no reason to believe that the agency will not always i serve the best interests of Denton. i 6262Ui6 1 t 7 The legislation does not impose any obligation on Denton. However, It will give Denton some additional choices for water and raw water supply, wastewater treatment and solid waste, but we are under no obligation to take any of the choices. We can continue to take care of our own citizens within our own capabilities. If we are convinced that the District offers an advantage for a specific service, then Denton contracts for that specific service. One of the concerns with the TMPA contract has been Its "full requirements" provision. Although there is a "backout" clause from this "full requirements" provision, it is difficult to Initiate. The Regional District will not have a "full requirements" provision. For each service that Denton desires, whether that be for a raw water supply or if Denton should change Its present policy of owning all of Its own water/wastewater plants and decide to contract for an Incremental amount of water or wastewater treatment capability, Denton would only be obligated to th3 amount for which It contracted. Thereafter, on future plant requirements, Denton could either build its own or it could again contract f with the District for an Incremental amount of service. Another concern with TMPA ties been that of control. Since the District will he only cne of many options that Denton will have for any particular service that the District Is authorized to provide, the District will have to structure and offer those services so that they will be economically attractii a to Denton. This element of "competition" will give Denton a high degree of control over how the District operates. Regarding representation, Denton City Council will appoint one member to the Board and that member can be recalled "without ' cause" by the Council. There will also be an advisory committee established that will have a representative from each entity. This committee will help to maintain a line of ^ommunlcetlon to the cities. 6262Ut7 (A i r Y- ~ e~ A 8 Issue Service Alternatives What are the choices or alternatives the District will offer Denton? Response Specifically, It is envisioned Denton will have the following alternativest i I. Become a "contract member" and have a position on the i Board and have equal voting regarding water/wastewater plans for the region and general policies of the District. This will cost a nominal fee each year, limited to not more then 50¢ per capita. 2. Denton may become a "participant member" In a water ! or wastewater pipeline. Denton would have a vote on matters associated with that project with some degree r i4 of proportionality to Denton's financial commitment to ` the project. L There are two alternatives for how this participation could be structured. Denton could either, 1) contract for this specified service or, 2) could enter a specific rontrect for a "facility band" agreement, wherein the j District would finance the projectp or proportion thereof, and Denton would pay the actual debt service cost of Denton's share of the project. J. Denton may enter into a "partnership" agreement with 4 the District for a share of Denton's new water plant wherein the District takes a 25% to 50% ownership. This arrangement would continue to give Denton control and operation of the plant but could result In substantial savings to Denton customers because of economies of scale In building perhaps a 20 million gallon per day plant ve a IU million gallon per day plant. 6262U:8 i I r. rl >p r, i d 9 1 4. Long term, Denton would probabl, become a "participant I member" for securing additional raw water supplies. The District will provide Denton with much stronger bargaining pc •!er end political influence when attempting to get water rights or in negotiating for vlater reservoir ownership. In a more general sense, the District could provide the following range of services to its members: 1. An agency to obtain a supplemental source of raw water. ~I 2. A specific capacity in a specific treatment plant or i pipeline. 3. Service to a limited area of the city somewhat remote f from the city's own facilities. 4. Full service for either wholesale water or wastewater service. I 5. An alternative vehicle for financing some of the city's requirements through "special facility bonds". 6. Sclid waste disposal. j 7. Response to EPA concerning etormwater dlsche• gea. 8. Coordination of watershed protection stroterles. Issue The Legislation vs the Contrecte The draft legislation does not seem to answer many of the f questions and concerns that have been raised. I 6262Ui9 I 1 t I Iy S k~ I t. 10 Response Legislation Is not the proper place to cover the details. The legislation is very broad but enables the creation of a District with sufficient power and latitude to address a variety of needs. The details will be addressed in individual contracts to be negotiated with each agency, accorc:ng to the needs and preferences of that agency. Issue Why a Regional 5ystern? We have done very well without a regional utility system up to this point. Why change now? r i --1 Response The truth is that we have parts of several regional systems serving Denton County, but none of them ere coordinated or under control of Denton County citizens. I fJ11A4iAs Provides water and wastewater services on the e6st side. Dallas Provides long-range raw water supply and treated water service to several communities. TRA Provides wastewater treatment in the southern r tier. I I'~ 1 A regional systern providing a coordinated plan of service under a board of Denton County citizens does three things) ~ I. Gives us assurance that the service and evlply viii be , adequate. 1 2. Makes economic sense. 3. Responds to new regulatory requirements for a coordinated regional strategy for safe drinking water and a clean environment. I i 6262Ut1U f ti Issue Local Prerogatives Won't the move toward regionalization take away some local freedoms? Response At first blush, it may seem so; but, on reflection, the correct answer is "No". There is no reason to believe that the r regulatory bodies will deny a permit to a city which demonstrates a preference and a capability to do their own thing--especially If they can do it cheaper. Issue High Costs ` Mrinicipal Utility Districts (MUDS) around the state have F exceptionally high rates. This system could make Denton's high water rates even higher. Response l*i Denton's situation, this system will not be like a municipal l utility district. It will not provide retail service to customers ` who have no choice. It will provide wholesale service on a more efficient basis then each city can accomplish on its own. Otherwise, It will have no customers because the service Is voluntary. Issue More Municipal Utility Districts (MUDS) Denton has always opposed the creation of MUDS. Will this legislation open the door? Response_ No. In fact, it will provide more local control over special districts than presently exists. The draft legislation recognizes the right of MUDS to be created and pieces more control then titles now have over the creation and operation of such I districts. In fact, each city must concur before a sub-district can be created within either its limits or ETJ. The main purposes for Including sub-districts In the legislation is so existing water supply corporations can be reconstituted so they can r i 12 have on opportunity for membership in the District, and for rural residents to have a mechanism to finance and operate a retail water and wastewater system. Issue Getting Out If we choose to become a participating member of the District, can we ever get out? f j Res onse A city that joins the regional system for purposes of h constructing a facility will be obligated for the same length of time that it would be if it constructed the same facility by using its own bonds; that is, the obligation continues until the bonds are retired. However, In the regional system it may be able to transfer that obligation to another member who needs the capacity. As long as we remain a "contract member", we can withdraw at any time. I I r Issue Future Raw Water Rights 1he recently completed Ray Roberts project does not meet ell of Denton's future needs for water supply. How will this legislation help? Response Two ways. A regional agency, if we chose to use it, will give us more clout In competing for the limited supplies available. Also, it will provide a mechanism for getting rights to our return flows. Issue Administratlve Costs Whet assurance do we have that this will not be another t I bureaucratic organization with high coats? We need a detailed I statement now. 6262Ui12 13 Response If Denton chooses to be a contract member so it can be on the I oard and set policy, it will help pay the administrative cost of the agency; bu', it can withdrew at any time. Therefore, the board will not impose unreasonable charges on Its members; otherwise, it could find itself without anyone to help carry the freight. Furthermore, the legislation sets an upper limit on any such fees at 50¢ per capita. In addition to the general questions received, Councilmember Hopkins posed the following specific questions. Listed ere responses to those questions and concerns which have not been addressed In the material immediately j preceeding. 0. Are thr attorneys in Hutchison's firm preparing the draft for legislation? I~ A. Bob Dransfield of the firm of Hutchison, Boyle, Brooks and Dransfield, has been the primary author of the legislation. This firm was selected by ' the Denton County Water Study Steering Committee as pert of the Engineering, Finance end _egal Team hired to conduct the Denton County Water/Wastewater Study. 0. If that la the case, which bond attorneys will be representing the district? A. Bond attorneys for the District have not been determined at this time. The selection of bond attorneys will be done by the Board of Directors of the Agency. However, only minimal legal fees have been paid to date, and there may be some anticipation by the attorneys that they will be selected as the bond attorneys. Q. If It Is the same firm, is this customary? A. It Is not uncommon for the law firm who has worked r,ith all of the entitiee In the region In studying the regions' needs and In drafting legislation for a regional agency, to then be selected as bond counsel. k i 6262LI03 P f ` tr 14 Subsequent to the December 13, 1968, meeting, we asked Paul Norton, Denton's Bond Counsel, to review the legislation. Attached as Exhibit 11 are his comments. Also Attached (Exhibit 1) is a copy of the Legislation (draft of 12/23188) revised and blacklined to reflect changes from the draft of December 18, 1988. Prepared/Approved Byl P.espe ry,~ ~~J Lloyd Harrell . Nelson, Exe uttve Director City Manager Department of Utilitl CC W7 I Exhibit li Proposed Legislation (revised) i Ill Ltr of 12128188- Comments from Paul B. Horton, Denton's Bond Counsel nl: Newspaper Articles , lVo CC Agenda Item of December 13, 1986 V3 Minutes PUB Meeting i i i I I I 6262Ui I4 1 t, Hutchison Boyle Brooks & Dransfield AM WiS,ONAL C.':NaA V CN Y105VE.S 11 Ltly 3900 FIRST CITY CENTER AuST N WFIr_E DALLAS, TEXAS 752016622 Ioo0 SAN ACm1C CEN1tF TOWN IAeE AUSTIN. TE05 16101 403G (lobes D. Dransfield 121« 754 8600 45121 n11.{-21 214) 754 863 riAlLAS TE Ii CCU' F+VMBEFs 1214, 15, C1540 December 23, 1988 D The Honor&ble Mayor and City Council 0 3 0 City of Denton 215 E. McKinney d M 40EERSOF ICE Denton, Texas 76201 I~ h Re: Proposed Legislation Creating Upper Trinity Regional Water District Dear Mayor and Councilmembers: In accordance with the requirements of Article XVI, f Section 59(e) of the Texas Constitution, I am forwarding herewith one copy of the proposed legislation referenced above, together with one copy of the Notice of Intention to Introduce a Bill published on December 7, 1988, in The Dallas Morning I News, a newspaper of general circulation in Collin, Dallas, and 1 Denton Counties. 1{ The proposed bill, if enacted and signed into law, would create a regional water and wastewater district located primarily in Denton County, Texas. It would be empowered to serve cities whose boundaries are wholly or partially within Denton County. The legislation is the outgrowth of a detailed planning process which has taken place over the past two years and which has involved approximately 30 governmental and quasi-governmental entities in Denton County. The district has no taxing power. The primary purpose of the bill is to create an entity that can provide water and wastewater planning and implementation services in Denton County on a regional basis. + The district would also be empowered to provide solid waste disposal services and non-hazardous liquid waste disposal I services as the circumstances would dictate. 1 A copy of the bill has been forwarded to Governor Clements in accordance with other constitutional requirements. it 1 EXHIBIT a` 1 1 J The Honorable Mayor and City Councilmembers December 23, 1988 Page Two Should you have any questions, please do not hesitate to contact me. Sincerely, I HUTCHISON BOYLE BROOKS 5 DRANSFIELD Robert D. Dransfield RDD/als I 4112W ENCLOSURE I I i I 010tD 1 t R 6 5 1011CE OF INTENTION TO INTRODUCE A BILL STATE OF TEXAS COUNTY OF DENTON i NOTICE is hereby given that the undersigned intends to app; to the Legislature of the State of Texas, Regular providing then oUpperr tTrinity a9RegionaliliWatertinDistrict; creation definitions and legislative findings; providing for a board of directors and the management of the District; providing the I rights, powers, duties, and functions of the District and its board of r establishment of oa s cusand tomer other Personnel; providing fgeneral and specific powers and duties of the District; Providing procedures for the issuance of bonds, notes, and other obligations, end the use of the proceeds thereoflroiding for the designrtion of a depository; providing procedures entering into and letting contractsi providing certain regulatory and police powers; authorizing the creation of subdistricts and providing procedures for the operation of such subdistrict.; providing for the payment of creation expenses; providing an exemption from ad valorem taxation; providing severability; making findings is to compliance with requirements of Article XVI, Section 59(d) and Section 59(e), Texas Constitution; and declaring an emergency. THIS NOTICE is given in accordance with the requirements legislation will Afind lthatlsaid requirements o have Constitution said Section meta of the Taxis GIVEN this Docember S, 1988. BOARD OF DIRECTORS UPPER TRINITY MUNICIPAL WATER AUTHORITY, INC. k i araU I ~6 EXHIBIT_____ t R ' F Hutchison Boyle Brooks & Dransfield ~ VR pFF SSDNAI [M POF XigN A!rORNFr! n FAn 3900 P057 r' + ENTER AUSTIN OFFICE L)ALLA$,TEXA3 ;32014622 1000SANJACINTOCENTERTOWNLAME Robert D• 3L mfeld 1214; 7548600 AUSTIN, TEXAS 76701,4039 171 d) 751.56333 1512) 477 4121 DALLAS tELECOC9 NUMBER, 12,41 754 0640 MEMORANDUM DEC 2 71988 Tot The Attached Distribution List FROM: Bob Dransfield REi December 23, 1988 RE: Vpper Trinity Regional Water District Enclosed herewith please find a draft of the legislation authorizing the creation of the captioned district, marked to reflect the changes reviewed at the December 21, 1988 worksession. Please do not hesitate to contact me shruld you have any questions, j If 111 ~ r I I I EXHIBIT f p t I t, I DISTRIBUTION LIST Commissioner Lee Walker Courthouse on the Square 110 W. Hickory Denton, Texas 76201 I Mr. Steven Bacchus 1 151 W. Church Street i Lewisville, Texas 75067 Mr. R. E. Nelson i 215 E. McKinney Street ]1 Denton, Texas 76201 I V Mr. Austin Adams I 122 Brookdale i Lewisville, Texas 75067 I Mr. Don Cline 1945 Jackson Road Carrollton, Texas 75006 Mr. Tim Fisher 1123 Fort Worth Drive Denton, Texas 76202 Mr. Martin Highbaugh I 501 N. Shady Snores P. 0. Box 355 Lake Dallas, Texas 75065 l Mr. Dick Sellars 100 E. Main Pilot Point, Texas 76258 Mr. Tommy Turner J P. 0. Box 56008 The Colony, Texas 75056 Mr. Tom Taylor 1100 N. Kealy Lewisville, Texas 75067 ' Mr. Frank Medanich Mr. David Medanich 500 First City Center Dallas, Texas 75201 I 1 I 1 } s Mr. Ronald S. Meyerson Assistant City Attorney City of Denton 215 E. McKinney Street Denton, Texas 76201 Mr. Ronald J. Neiman City Attorney City of Lewisville 386 W. Main Lewisville, Texas 75067 Ms. Karen Brophy City Attorney h City of Carrollton 1945 Jackson Road Carrollton, Texas 75006 I ~ I j { i I I ~ 1 I I / 1 61AcKi,rit'd to ru~ic~i} c1141001 4UM 11 -11. Sr -D 4r o4 o./%1[ A BILL TO BE ENTITLED B + M Z 1 AN ACT relating to the creation, administration, and powers, including the power of eminent domain subject to limitations, and to the r duties, operations, and financing of the Upper Trinity Regional ii water District, and to the creation therein of subdistricts with the power to levy and collee.t ad valorem taxes within the subdistricts; and containing other matters related thereto. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: i SECTION 1. Purpose. It is the purpose and intent of this act to establish a mechanism that can provide on an orderly basis for the water, wastewater, solid waste, and liquid waste needs of Denton County and the entitles that ray be served by the authority herein created. To accomplish this I purpose, a conservation district, without taxing power, is i created, with the power included to create subdistricts having the power of taxation, subject to limitations, all for the j purpose of providing for such sarvices on a coordinated basis that is consistent with the regionalization objectives to be satisfied by the creation of the authority. SECTION 2. Definitions. In this act: (a) 'district' means Upper Trinity Regional Water District created in section 1 of this act and any other public body at any time succeeding to the property, principal rights, powers, end obligations of said Upper Trinity Regional Water District, (b) "basic service area" means the geographic area contained within the corporate limits of all participating members, all contract members, and all customers and such areas i as are served by said members and customers. (c) 'board" means the govetniog board of directors of the district. (d) 'contract member" or 'contracting member" means one or more, as the case mry be, of the governmental entlti.rs which 1'. UMBRIA; 1 2rovides retail utility service within its boundaries, that i contract with the district within two (2) years from the effective date of this act to preserve the option to become a J participant within 10 years from the effective date of this act awl ogree to pay+an annual pro rata share of the cost of administering the district which share shall never exceed for any contract member fifty cents per ca its unless otherwise agreedto by at least seventy-five percent .of said members. (e) 'county" means Denton County. Texas. wholesale user of the water or (t) customer' means any I wastewater services provided by the dlstLict which user provides retail utility service within&Lhe boundaries of said user. f41 'participant' or "porticipating member' means one or more, as the case may be, of the governmental entities which provides retail utility service within its boundaries that contract with the district for the construction of and payment for the water and/or wastewater projects to be financed from I time to time by the district. (h) "service area" means that geographic area contained within the boundaries of the district. (i) "state' means the State of Texas, (j) •rrbdlstrlct" means one or more of tAE subdistricts authorized to be etested under Part 11 of this Mt. _ SECT10fl 3. a lsla Sve findings, laJ it is hereby found by the legislature that the creation and establishment of the district and the creation and establirhment of subdistricto within the district are essential to the accomplishment of the y1 Purposes of Article XV1, section $9, of the Texas Constitution. 1 li (b) it is hereby found by the legislature that all of the land and other property included in the boundaries of the district and in the boundaries of a subdistrict will be benelltted by the improvements, works, and projects thrt are to be provided by the distrle.t and by swbdistricts pursuant to the -2- cello I i ( f ~ 'r R. F powers conferred on the district and svbdistricts by this Act, and that the district is created to serve a public use and benefit and any subdistrict created will serve a public use and ff. will be for a public purpose. 1 (c) The legislature specifically finds and declares that the requirements of Article XVI, Section 59(d) and Section 59(e), of the Texas Constitution, to the extent applicable, have been met and accomplished in due course, time, and order L f I any! that all notices required to be given relating to this act have been given, that all approvaI& required to be obtained j pursuant thereto have been obtained, and that the legislature I I. has the authority and power to enact this act. PART I J THE DISTRICT I SECTION 1. Creation. (a) A conservation and i reclamation district having the boundaries prescribed herein is hereby created and shall be known as the Upper Trinity Regional 1 Water District, (b) The district is a conservation and reclamation I district under Article xvl, Section 59 of the Texas i Constitution, and is s governmental agency, body corporate and politic, and a political subdivision of the State, (c) The boundaries of the district are coterminous with the duly established and existing boundaries of the county plus i - the entire incorporated limits of any contract member or patlicipating member, a portion of whose incorporated limits is partially within the corporate limits of the county. (d) An election confirming the creation of the district is not required. SECTION 5, tKagenent of District. The district shall be governed by a board of directors consisting of persons who are residents of the districti provided, however, that no member of the board of directors shall be an alerted official e~,f+ ( 1 J ' 1 1 jA 1 of say govecnmental entity that has the authority to appoint a member of the board. The terms of office shall be four (4) years. Members of the board shall be appointed by the governing bodies of the participants _+nd the contract members f in the manner set forth herein. The members of the board are subject to removal with or without cause by duly adopted action of the governing body of the entity that originally appointed such member. The board shall have complete authority over the management and affairs of the district under this act. i (b) The initial board shall consist of the persons who served as the initial board of directors of the Upper Trinity AMunicivsl Water w Authority. Inc., a nonprofit corporation organized under the laws of the State of Tessa and those k persons who are appointed by those entities that become k E participating members or contract members within two years of the effective date of this act. Each such participating member or contract membor shall appoint one member to the board and the county shall appoint one member to theA board; provLded, however, that the county may appoint one additional member to the board if the board determines that such appointment is in i I the best interests of the district, Those entities that k contract with the district after two years from the effective date of this act shall be entitled to representation on the boars only pursuant to the rules and procedures established by j the board for the admission of board members so such rules and i procedures may from time to time be amended. (c) Members of the board who are appointed by the participating members shall be entitled to vote on all matters before the board. Members of the board who are appointed by I contract members which are not participating members shall be 9 untitled to vote on all matters before the board except those mitts[s that require a weighted vote. The board shall establish rules for the implementation of a system of weighted -4- 1 I : 1141 r financial commitments for 4 votes concerning authorization of and capital projects which system shall be determined according to ' each entity's parttcipetton in service and in projects of the ' district. (d) Except as provided herein, the initial based shall serve staggered terms in accordance with the procedures to be adopted by the initial board, provided that no initial board member shall be appointed for a term in excess of four years. Thereafter each board member shall be appointed to a four year h term. Members of the board may serve consecutive terms. The ~ members of the board that served on the board of directors o the Upper Trinity Muntci al Water&Authority, Inc. shall have the rights and privileges as members of the board appointed by i~ participating memberat pcovided, that such members ` shall not be entitled to a weighted vote on any matter coming before the booed and shall be entitled to vote as a participating member without the right to a weighted vote. y T o i i~ boardmembets that served on the board of directors of the Upper ~ Srinity Munl 1 watar.AutR,_ or1tY• Inc, shall serve an initial term of two years from the effective date of this act. Thereafter, such potions are eligible to be appointed to the board by a contract member or a participating member. (a) Members of the boned shall quality to serve by j and furnishing evidence of their !eking the oath of office qualifications to serve on the board consistent with the requirements of this act prior to assuming the duties of a board member. A The board may establish a category of es-Officio I Y~ membership to the board and may provide for the duties and responsibilities of the ex-officio members in bylaws, rules, or regulations to be adopted by the board. SECTION e. Board Pcoce ute (a) The board shall prepare and adopt the bylaws of the district, and shall hold ` such regular, special, or emergency meetings at such times and I -5- cilia , LJ M- 2 k ri 1 4 ~ os sach aays or dates as are specified therein. (b) A majority of the members of the board constitutes a quorum for the transaction of business of the district, and approval of at least a majority of the members of the board present at a meeting is necessary for approval of any matter coming before the board, except where a weighted vote is required in accordance with the rules of the board In which case a majority of the weighted vote of all board members eligible to vote is necessary for approval of any such matter coming before the board. (c) The board shall provide in its bylaws for the method of execution for all contracts, the signing of checks and the handling of any other matters approved by the board. The board shall annually recognise and elect new officers. (d) The officers of the board shall consist of the president, one or more vice presidents, a secretary, and a h treasurer. The board shall elect a president and any vice president from its members. T'.c board may appoint a secretary, 1 E one or more assistant Secretaries, a treasurer, in assistant i treasurer, and such other officers as in the judgment of the E board sit necessary, provided that such officers are not required to be members of the board, The president shall be the chief executive officer of the district and shall preside over the meetings of the board. Any vice president shall perform all duties and exercise all powers conferred on the president when the president is absent or fails, refuses, or it unable to act. The secretary of the board or one of the assistant secretaries shall be responsible for keeping the minutes of the meetings of the board and all official records ' of the board and may certify as to the accuracy or authenticity of any actions, proceedings, minutes, or records of thr, board or of the district. The duties of the other officers may be I provided in the bylaws of the district. aria z 9 I ! os such aays or dates as are specified therein. (b) A majority of the members of the board constitutes a quorum for the transaction of business of the district, and approval of at least a majority of the members of the boar present at s meeting is necessary for approval of any matter i coming before the board, except where a weighted vote is required in accordance with the rules of the board in which case a majority of the weighted vote of all board members eligible to vote is necessary for approval of any such matter coming before the board. (c) The board shall provide in its bylaws for the method of execution for all contracts, the signing of checks and the handling of any other matters approved by the board. The board shall annually recognize and elect new officers, ` (d) The officers of the board shall consist of the I president, one r more vice presidents, a secretary, and a I treasurer. iae board shall elect a president and any vice ' president from its members. The board may appoint a secretary, one or more assistant secretaries, a treasurer, an assistant i i treasure[, and such other officers as in the judgment of the I ' board are necessary, provided that such officers are not requited to be members of the board. The president shall be the chief executive officer of the district and shall preside over the meetings of the board. Any vice president shall perform all duties and exorcise all powers conferred on the president when the president is absent or fails, refuses, or is h unable to art. The secretary of the board or one of the assistant secretstles shall be responsible for keeping the minutes of the meetings of the board and all official records of the board and may certify se to the accuracy or authenticity 1 of any actions, proceedings, minutes, or records of the board or of the district. The duties of the other officers may be provided in the bylaws of the district, -6- er~ro i t le) ire tegular meeting place of the board shall be at such place as may be designated in the bylaws. (f) The board may appoint and employ all persons, firms, corporations, partnerships, and other entities deemed necessary by the board to conduct the affairs of the district, including but not limited to, engineers, attorneys, financial advisors, accoultants, general manager, and other employees or consult.nts. (g) The board shall establish a customer advisory ~ council composed of one representative from each customer receiving service from *he district. The members of the customer advisory council shall be empowered to act as provided in the bylaws or other rules and regulations of the district, but such customer advisory council shall have no voting power on matters coming before the board. (h) The board shall adopt a seal of the district and may adopt bylaws to govern the matters deemed appropriate by the board provided such bylaws are consistent with this act and the ` laws of the State of Texas. SECTION 7. General Powers and Duties. (a) Subject to the specific provisions of this act, the district AIMLIU-kUlL of directors hays the rights, powers, privileges, authority and I functions granted, conferred, contemplated, and described in Article XVI, Section 59, of the Texas Constitutions, including the rights, powers, privileges, authority .and functions conferred by the general laws of the state applicable to municipal utility districts operating under the applicable provisions of the Texas water Code, together with the additional rights, powers, privileges, authority and functions enumerated, described, expressed or implied by this act, (b) The district shall not have the lower to levy or collect +d valorem taxes. f' (c) if any general law is in conflict or inconsistent I I D,IID t a vi<h ta6i3 act. ttiis act shall prevail. SECTION B. Specific Powers and Outies of Authority' i (a) The district has the additional tights. Powers, privileges, authorities and functions provided by this Section. (b) The district may plan, lay out, purchase, construct, acquire, own, operate, maintain, repair and improve, inside or outside its boundaries, any works, improvements, facilities, plants, equipment and appliances, including any administrative properties and facilities, any permits, franchise, licenses or contract or property rights, and any levees, drains, waterways, lakes, reservoirs, channels, ronduits, sewers, dams, stormwater detention facilities or other similar facilities and improvements, whether for municipal, industrial, agricultural, flood control, or related purposes, that are necessary, helpful or incidental to the exercise of any right, power, privilege, authority or function provided by this act, including the E supplying of water for municipal, domestic, and industrial j uses, and all other beneficial uses or controls; the i f collection, treatment, processing, disposal of, and controlling of all domestic or industrial wastes whether in fluid, solid, i or composite state; the gsthnting, conducting, diverting,& controlling and treating of local storm water or local harmful excesses within the boundaries of the district, irrigation, and j the altering of land elevations within the boundaries of the l district where it is needed, (c) The district may acquire, by purchase or by exercise of the power of eminent domain, which power is hereby granted subject to the limitations imposes thereon by this subsection, any land, easements, rights-of-way or other property or improvements within or without the boundaries of the district (including land obove the probable high water line around any reservoirs in which the district has an ownership or operational interest) which are needed or are appropriate to 4- a~„o i r ~ carry out the powers and functions of the district, as herein described and contemplated; provided, however, that the power of eminent domain shall be exercised in the manner and with the privileges, rights and immunities available under the laws of the state, including specifically the Texas Property Code, it is provided further that the district shall not exercise the power of eminent domain (i) against any property located within an incorporated city located in whole or in part within the cowity without the prior consent of the governing body of the city in whose jurisdiction the subject property is located, (i ii) against any property owned by the county, by any municipality or ny agency or instrumentality thereof, 0rAU-1 U to acquire a waterworks system or a wastewater system that is owned by any municipality, or by private parties, or by any non-profit corporation, (d) The district is hereby vested with and shall have ss.d may exercise the following additional rights, powers, f privileges, authorities and functionas to provide for the acquisition, construction, improvement, maintenance and operation of wholesale water and wastewater systems and treatment works necessary to provide service to its customers, and the acquisition, construction, improvement, and maintenance of any water supply, reservoir or interest therein necessary to fully Implement the powers and duties of the district as provided in this act. (a) The district may elect to provide water, wastewater, solid waste, or non-hazardous liquid waste services outside its service area, but the district may not be compelled to supply such services for use outside its service Area except by order j of the applicable state agency having jurisdiction over such matters applied in accordance with applicable law, (f) The basic service area has the prim+ry right to water or wastewater treatment capacity and to water supply in w t I w each classification which the district secures under permit from the applicable :Mate agency having jurisdiction over such matters. (g) This act does not compel any customer or prospective { customer to secure water or wastewater service fro- the district, except pursuant to contracts voluntarily executed. (h) This act dues not alter any outstanding permit, contract, or other obligation, (1) The district is hereby vested with and shall have and may exercise all the powers needed to establish, acquire, i operate and maintain a regional solid waste disposal system and a hon-hazardous liquid waste disposal system. In connection with said system, the district shall provide the services ' afforded by ouch system to (i) any use[ as determined by the board if the services are to be rendered within the basic service area of the district, and (ii) any customer if the services are to be rendered outside the basic service area, + (j) The district is hereby empowered to establish. and I ! ( enforce rules and regulations for the protection of water ` quality in and flowing to or from the areas in of surrounding i the lakes, reservoirs and other sources of water supply owned, . operated, or controlled by the district for the prevention of I waste of the unauthorized use of water controlled by the district and for the regulation of privileges on any land, reservoir, or any ersement owned or controlled by the district. Such rules and regulations shall be enacted and F enforced in accordance with the procedures provided in Subchapter D of Chapter 54 of the Texas Water Code, as amended, and shall be consistent with the applicable rules and regulations of any agency of the state having jurisdiction over J such sources of water supply, (k) The district shall have the power to establish rates I and charges to be assessed to customers of the district for -10- dr,kd -1 4 K eaca service rendered to such cl.stort,ers which rates and charges may be established by classes of customers, by project, or by area of service. ( i ) Where bonds or other obligations of the district payable wholly from revenues are issued, it shall be the duty of the board to fix, and from time to time revise, rates of compensation for water sold and for wastewater or other services rendered by the district which will be sufficient to pay the expense of operating and maintaining the facilities of the district and to pay such obligations as they mature and the interest as it accrues and to maintain the reser,le and other j funds as provided in the resolution or order authorizing such k ~ obligations. • (m) The district may adopt, enforce, and collect all necessary charges, fees, or rentals for providing any district facilities or service and may require a deposit for any service or facilities furnished, and the district may or may not ` provide that the deposit will bear interer'. The district may f discontinue a facility or service to prevent in abuse or enforce payment of an unpaid charge, fee, or rental due to the ` district, A,I cities, public agencies, political subdivisions end any other entities that contract with the district are authorized to fix, charge, and collect fees, rotes, charges, rentals, and other amounts for any service or facilities provided pursuant to or in connection with any contract with the district, and to pledge such amourts sufficient to Malta, all payments required uw,dor the contract. SECTION 9. Bonds, Notes and Contracts off, Auttnit_X• The district is authorised to issue, sell and (a) f ~ deliver its [avenue bonds, notes, revenue anticipation notes, bond anticipation notes, short term obligations, refunding bonds, or other obligations for any and all of its purposes, without an election ;nd upon such [arms as the board shell -11- r of la 3 i A F' K. determine aPPropri Such obligations may be made payable from all or any part of the revenues of the district derived from any lawful source, including, but not limited to, any contract with any customer or user of the facilities owned or operated by the district under the provisions of this act or from the ownership and operation of any waterworks system, wastewater system, sewer system, solid waste disposal system, or non-hazardous liquid waste system, or any combination of such systems. Additionally, such obligations may be payable from and secured by liens on and pledges of all or any part of any of the revenues, income, or receipts derived by the district from its ownership, operation, lease, or sale of any such property, buildings, structures, of facilities, including the proceeds or revenues from contracts with any person, firm, corporation, city, public agency, or other political subdivision or entity. Sur obligations may be issued to mature serially of otherwise within not to exceed 40 years from { their date, and provision may be made for the subsequent issuance of additional parity obligations, or subordinate lien be set obligations, under any terms or conditions that may forth in the resolution authorizing the issuance of the obligations. Such obligations are and shall constitute negotiable instruments within the meaning and for all purposes of the Texas Uniform Commercial Code, provided that the obligations shall be executed, and may be made redeemable prior to maturity, and may be issued in such form, denominations, and manner, and under such terms, conditions, and details, and may be sold in such manner at such price, and under such terms, and said obligations shall bear interest at such rates, all as shall be determined and provided in the resolution authorizing the issuance of the obligations. if so provided in the authorizing resolution, the proceeds from the sale of the j obligations may be used for paying interest on the obligations I -12- e.ora I Y i I 4 z I 4 3errng cLe period of the acquisition or construction of any facilities to be provided through the issuance of the obligations, for paying expenses of operation and maintenance of facilities, for creating a reserve fund for the payment of the principal of and interest on the obligations, and for creating any other funds, and such proceeds may be placed on time deposit or invested, until needed, all to the extent and in the manner provided in the authorizing resolution. Thr district may pledge all or any part of its revenues, income, or I receipts from fees, rentals, rates, charges, and contract proceeds or payments to ti:a payment of the obligations, including the payment of principal, interest, and any other amounts required or permitted in connection with the obligations. The pledged fees, rentals, rates, charges, procerds or payments shall be fixed and collected in amounts i that 4111 be at least sufficient, together with any other pledged resources, to provide for the payment of expenses in 1 connection with the obligations, and operation, maintenance, and other expenses in connection witn the aforesaid I j facilities Said obligations may be additionally secured by I mortgages u- deeds of trust on any real property owned or to be i acquired by the district, and by chattel mortgages or liens on II any personal property appurtenant to such real property; and 1 the board may authorize the execution of trust indentures, mortgages, deed: of trust, or other forms of encumbrances to evidence same. Also, the district may pledge to the payment of the obligations all or any part of any grant, donation, I revenues, or incone received or to be received from the united 1 States government or any other public or private source, r + whether pursuant to ;n agreement or otherwise. All bonds, within the meaning of Article 717k-8, Vernon's Texas Civil Statutes, as amended, issued pursuant to this act, and the appropriate proceedirgs authorizing their issuance shall be or~ro 4 V f I the Attorney General of the State of Texas for ,uthaitted co are secured by a examination. If said bonds recite that they hof such contract and pledge of revenues of any contract, + the proceedings relating thereto shall be sub.aitted to the that such bonds have been .1 attorney general. If he finds 711 authorized and any such contract has been made in accordance with law, he shall approve the bonds and any such contract, and thereupon the bonds shall be registered by t;:, Comptroller cf 0 Public Accounts of the State of Texas: and after such approval a shall be and registration, such bonds and any such contract incontestable in any court or other forum for any reason, and shall be valid and binding obligations in accordance with their The issuance of obligations by terms for all Qurposes. ro•,isions of Article district shall be in acco[dancernanhs thAnnotated Texas civil 717q and Article 711k-6, licable. 1 { Statutes, as amended, as app to enter into any (b) The district is authorized any encies, its contracts with the United States of America, or non-Profit, municipality, or other party, public, a of the powers and purposes ary i i considered necessn the exero, i of the district. The diarict 1s also authorized rental or leasing Or contracts for the acquisition, purchase, Of the water Production, water supply, water operation filtration or purification, water suPD1Y facilities, at other water or wastewater facilities which are owned or operated by The district is authorized to acquire such contracting PartY• Permits water approDri+tion permits and other neeesserY D directly room the aPP[oPriate agency of the state or from requiring + Payment Of money by its, contracts owners of perm Source of funds, the district may be made payable from any be determined by the board. general or specific, as may and 811 Contracts b 14unlci SECTION 10. alines. Any mu as, political subdivisions, ant ublic agenci municipalities, p -14- ,y G t rA i r Y any nom-protit water supply corporation doing business wholly or patcially within the district, and all subdistricts are expressly authorizer) to enter into any contracts with the district that are deemed appropriate by the respective governing bodies thereof. Such governing bodies are authorized to pledge to the payment of any such contracts any source of revenues thi.t may be available to the governing body, including the levy and collection of ad valorem taxes, if such _ municipality or subdistrict has the power to levy and collect such taxes, subject only to the elections, it any, that are required by applicable law, to be held prior to the levy of ad valorem taxes. To the extent a governing body pledges funds to the payment of any such contract that are to be derived from its own water system or its wastewater system or its combined i { system, such payments shall constitute an operating expense of such system. SECTION 11. Deocslto[y. The board, by order or 1 Y resolution, shall designate one or more banks inside or outside 4 the district to serve as depository for the funds of the district. Except as herein provided, all funds of the district shell be deposited in the depository bank or banks. The funds of the district may be invested as provided in the fawn of the State c[ Texas for the investment of county funds and may be i invested in accordance with the provisions of the Public Funds investment Act of 1987, as the acme may be amended from time to time. The funds of the district shall be secured in the manner provided by t.° 1%ws of the State of Texas for public funds. SECTION 12. Regulatory Power of Municipalltles. This act does not exempt the district or any subdistrict or any lend 1i situated within the district from the terms and provisions of any applicable ordinances, codes, resolutions, platting and coning requirements, rules or regulations of any municipality. j -LS- i e~ffn J 1 1 J is } V d ~ i PART LI SUSDISTRICTS WITHIN AUTHORITY SECTION 13, Creation Of SubdiStriCta. (a) To provide for the orderly development of water, 1 wastewater, and other services of the district within its 1 boundaries and to prevent unnecessary duplication of facilities, the district is authorized to create subdistricts. A petition requesting the creation of subdistricts within the district may be presented to the board of the district. Any such petition must be signed by at least twenty-five (25) persons who own property within the boundaries of the propose subdistrict, or such petition may be submitted by the governing body of a municipality when accompanied by a resolution or ordinance of such governing body authorizing the submission of such petition. Any such petition shall specify, at a minimum, a metes and bounds description of the boundaries of the , proposed subdistrict, the general nature of the improvements to be acquired, constructed or otherwise implemented within. the subdistrict, the necessity and feasibility of such improvements, and the proposed method for funding such improvements. The petition shall state on its face whether the power to levy and collect ad valorem taxes within and solely within the subdistrict is requested. If a subdistrict is +I proposed within the corporate limits or extraterritorial jurisdiction of a municipality, the petition requesting the creation of the subdistrict shall be accompanied by an official action of the governing body of the municipality in whose jurisdiction the auhdistrict is proposed approving the creation of such subdistri6,. Should the governing body of the municipality in whose jurisdiction the subdistrict is proposed object to the creation of such subdistrict, then the ' subdistrict shall not be created within the incorporated limits ! or the extraterritorial jurisdiction of that municipality. i -16- I I k kb) The board shall set a date for a hearing on such petition not less than thirty (30) no. more than ninety (90) days after the day the petition is presented to the district. Notice of such hearing shall be given to each municipality within whose boundaries or extraterritorial jurisdiction the proposed subdistrict would be located. A copy of the notice of the hearing shall also be posted in three (3) public places located within the proposed subdistrict and at the county courthouse at least fourteen (11) days prior to the date set for the hearing. Notice of the hearing shall also be published at least one (1) time in a newspaper of general circulation published in the county at least ten (10) days prior to the date of the hearing. (c) Any interested person may appear at the hearing for the purpose of supporting or opposing the creation of the subdistrict in accordance with the petition. The hearing shall be conducted in accordance with the procedures established by the board, (d) After the public hearing, the board shall enter an i order making its findings in the official records of the district. If the board deems the creation of a subdistrict to be feasible and practical and finds that the creation of the proposed subdistrict will be beneficial to the public, will benefit the residents of and the land included in the ;roposed subdistrict and will contribute to the orderly growth and development of the regional water and wastewater systems within the district, then the board shall enter an order granting the petition and ordering the creation of the subdistrict in accordance with sub.ectlon (e) of this section. The board shall include its findings in the order which shall be filed in the official records of the district. The order shall define the boundaries of the subdistrict, but it does not have to include all of the land described in the petition if the board i -17- o U 1 0 j , 9 v~ L y i is its judq-eat determines that a modification or change in the subdistrict is necessary or beneficial to the public. If the board finds to the contrary, it shall enter an order dismissing the petition and the proposed subdistrict shall not be created, but a dismissal order shall be without prejudice to the ability to petition for the creation of a subdistrict covering the same territory at a later time. (e) If the board orders the creation of a subdistrict for which the power to levy and collect ad valorem taxes was not requested in the petition, the subdistrict shall be created and in existence from and after the date stated in the order of the district, without the necessity of a confirmation election within the boundaries of the subdistrict and any such subdistrict shall not have the power to levy or collect ad I valorem taxes. If the board enters an order granting a petition that seeks the power to levy and collect ad valorem j ~ taxes within the subdistrict, then the subdistrict shall not be created until and unless a confirmation election is called, conducted and held by the district within the proposed boundaries of the subdistrict and a majority of the qualified i voters voting thereat confirm the creation of the subdistrict in accordance with the provisions of subsection (f) of this section. If the subdistrict is confirmed at such election, then the subdistrict shall have the power to levy and collect ad valorem tares for the maintenance and operation of the subdistrict aoJ for the payment of contracts of the districts provided that no such taxes shall be levied and collected until and unless previously voted at elections held in accordance 6 with subsection (t). f (f) A confirmation election, when required by this section, and any election to authorize the levy and collection of ad valorem taxes within a subdistrict for maintenance purposes shall be conducted in the manner required by Chapter -lA- a+i+e 4 t ( 4 ya I I 54, Texas Water Code, for the levy and collection of maintenance taxes by municipal utility districts. Elections to levy taxes in support of contracts shall be held in the manner and with the effect provided by Chapter 54, Texas Water Code, for the issuanc.- of bonds by municipal utility districts. The confirmation election required by this subsection, a maintenance tax election and an election authorizing the levy of taxes to support bonds or contracts of the subdistrict may be combined into a single election, and any or all of such elections may be held on any day or date selected by the board. Each such election shall be called, convened and held by the board in accordance with the Texas Election Code and Chapter S4, Texas Water Code. (q) A subdistrict, if created in accordance with this section, shall be a conservation and reclamation district under Article XVI, Section 59 of the Texas Constitution with the i limited powers granted in this section. The subdistrict constitutes a political subdivision and a corporate body and t politic under the laws of this state. A subdistrict shall have the powers specified herein and shall have the same powers as I the district, but subject to the some limitations, and provided I that a subdistrict shall not be authorized to provide services i outside its boundaries, except that it may provide retail water i and sewer services within its customer service area a3 i certificated by any applicable regulatory agency of the State of Texas. (h) If a subdistrict is created as specified above, the subdistrict shall be governed by a board of supervisors I' consisting of at least five (5) supervisors. The initial board of supervisors shall be appointed by the district from among the residents of the subdistrict. The district shall make such appointments for terms specified in the order creating the I subdistrict but not exceeding four (4) years from the date of -19- e0,5o !E I S ' - S l appointment. Svch initial supervisors are subject to removal, with or without cause, by action of the district. All vacancies shall be filled by the district. After the initial appointment of the board of supervisors and prior to the issuance of any bonds, notes, or other obligations of the subdistrict, members of the board of supervisors shall be elected in the manner provided by the laws of the State of Texas applicable to municipal utility districts. Notice and the conducting of such election shall be in accordance with such laws, (i) The subdistrict rhall have all the powers provided elsewhere in this act and shall have ownership of and general management powers over the affairs, works and projects of the subdistrict subject to the provisions of any contracts with the j district. However, the issuance of bonds by the subdistrict shall not be effective until such issuance is approved by official action of the district. li i (j) In those Subdistricts having the power to levy and collect ad valorem taxes, the tax rates shall be established by j the board of supervisors on the basis of annual budgets i established at the same time and in the same manner as for counties, and taxes shall be levied by the board of supervisors, (k) The members of the board of supervisors shall receive no compensation for carving as a supervisor but may be - reimbursed for actual expenses incurred on behalf of the subdistrict or in the discharge of their official duties. (1) Subdistricts created in accordance with this act may only become participating members of the district, SECTION 14. Conversion of Water Supply Corporation to Subdistricts, (a) Upon the adoption of a resolution by the board of directors of any non-profit water supply corporation doing business wholly or partially within the boundaries of the j district and requesting such action, the board may consider the Ef -20- OfIID i i f question of converting such non-profit water supply corporation to a subdistrict by following the same procedures otherwise i required by section 13 of this acs. and subsection (b),below. (b) The resolution of the board of directors required abcve shall include, in addition to the information specified I in section 13(a) for petitions to be filed with the board of the district, a plan of conversion, including, among others, the proposed method for the transfer of assets and the I assumption of debts to the subdistrict. 1J (c) If determined to be appropriate by the board, the j district, at the request of the board of directors of such non-profit water supply corporation, may establish a board of supervisors in greater number than specified herein for other such subdistricts. (d) Notwithstanding any provision of this act to the { J contrary, any water supply corporation that was a member of the Denton County Steering committee in connection with the Denton County :rater and Wastewater Study Regional Master Plan for 2010 may become either a contract member or a participating member i in accordance with the provisions of this act. SECTION 15. Meetings of Board of Supervisors. The board of supervisors of a subdistrict shall hold regular, i special or emergency meetings at those times and on those dates the board determines. SECTION 16. Subdistrict Office: Meeting Place. The board of supervisors of each subdistrict shall designate a place within the subdistrict as the regular office and meeting l~ place, except that the regular meeting place may be at the ( regular meeting place of the district if approved by order of (r ± the district. i SECTION 17, Collection of Taxes Within Subdistricts. (a) The county tax assessor-collector of the county shall maintain the tax rolls and collect taxes for any I -21- a~rro R r i subdistrict located In the unincorporated area of the county and having taxing power in the same manner as for taxes for the county. The tax assessor-collector for the other subdistricts shall be as selected and shall perform the duties determined by the board of supervisors, (b) Reimbursement of the costs of the tax assessor- collector for such services shall be paid by the subdistrict. (c) Taxes and other revenues collected within a subdistrict shall be used solely for purposes within the subdistrict, except that the costs of administration of the affairs of a subdistrict may be paid to the district in accordance with contracts between the district and the subdistricts. All taxes and revenues of a subdistrict as collected shall be deposited as public funds into accounts of i the subdistrict approved by the district. All accounts of a i subdistrict may be audited by the district. 1,11 such funds may i be deposited or invested as permitted for public funds. PART III MISCELLANEOUS f SECTION 18. Creation Expenses. The district is authorized to pay All, costs and expenses incurred in the creation and organization of the district, including but not limited to the relnbursement of costs and expenses incurred by the Denton County Steering Committee in the preparation of the Denton County Water and wastewater Study Regional Master Plan for 7010, and the Upper Trinity a Municipal Waters Authority, Inc., in the development and implementation of such study. The district is authorized to succeed to and assume the rights, privileges, duties and responsibilities, including contractual d obligations, incurred by the Upper Trinity AMunicipal Water A Authority, Inc., a nonprofit corporation created to serve on an interim basis pending the creation of the district. i -22- D~nID I i J M. ' I 4~ I SECrlO1i 19. Tax Exemption. The accomplishment of the purposes stated in this act being for the benefit of the people of the state and for the improvement for their properties and industries, the district and the subdistricts in carrying out the purposes of this act will be performing an essential public I function under the Constitution and shall not be required to pay any tax or assessment on any property or project owned, operated, leased, or controlled by the district or any part thereof, and the bonds or other obligations issued hereunder and their transfer and the income therefrom, including the profits made on the sale thereof, shall at all times be free from taxation within the state. SECTION 20. SeverabilitY• if any provision of this act or its apolication to any person or circumstance is held invalid, the invalidity does not affect other provision or I .pplication of this act that can be given effect without the h lication, and to this and the nvalid provision or aPP i provisions of this act are declared to be severable. The terms t and provisions of this act are to be construed liberally to j effectuate the purposes, powers, tights, functions, and authorities herein set forth. r SECTION 2I. Notice. The legislature specifically i finds and declares that the requirements of Article RVI, i Section 59(d) and Section 59(e) of the Texas Constitution, to the extent applicable, have been met and accomplished it due course, time and order and that all notice requited to be given relating to this act has been given, that all approvals required to be obtained pursuant thereto have been obtained, and that the legislature has the authority and power to enact i this act. I SECTION 22. Emergency. The importance of this legislation and the crowded condition of the calendars in both houses create an emergency and an imperative public necessity -23- 1{ 1 1 1 1 r r that the ccastitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended, and that this act take effect and be in force from and after its passage, and it is so enacted. k I i I ~ i i a a I ~ J 1 _ia_ 1j k r LAW 07F1CCS MCCALLI PARKHURST 6 HORTON MO,SV M, MCCALL 717 NORTH HARWOOD JOHN 0 MCGLL :CAUL S MO►70M 416,1.18,11 rC7911 M TAUT NINTH FLOOR MILLAAD ►a► "LOST SICHA►0 C. ►O►T(► u6o6.16" 0 CHAS 10204M DALLAS, T(XAS 7SSOI-eS07 THOMAS L POSCHA►SKY- CLARCNCC 0 C►OIV( M(NN(TM ( 101 Te'e -HON, 4A RIO-r(OO Veas ISNI M. PAVIL MA WIN 79,6CO.14 a,. S&S-O.a6 JOHN * W. 1 JA ,u0 ONC AMpIUN C(NUO ALAN N, ►XY4011? ► AUSTIN, T(AA1 VS.01g1). "UNOTIram JOHN W. A L"SCH T490.4V4 44 .116.1,05 JErP*CT THOMAS A. S►yRO(OM December 28, 1988 - L( S►C10LA11A. 111 .Of ONE►IV(A'NALK PL.LCL HA:OLD T 7LANAOAN DANNY S CuLVC, SAN ANTONIO. TGUy 6118 O,•)1O) ALVPIO 0 JOHNSON T1LVH0.4 all fit-a100 14CSN698 IN NCM TOA60NN ~I Mr. R. E. Nelson Executive Director, Dept. of Utilities DEC 3 019 city of Denton Municipal Building CITY nF D060N Denton, TX 76201 CITY MrJA,,LRS OFFI~ I ~ . Re: Upper Trinity Regional Water District Dear Bob: ` I On December 23, 1988, 1 read your letter of December 22, 1988, concerning the proposed captioned District. Due to the Christmas holidays and the fact that I have planned a trip over the New Year holidays, a quick review of the November 18, 1988, draft of the proposed legislation and the questions posed by Jane Hopkins is all I have been able to manage to date. This letter contains my initial comments, and if further study or analysis is required, I will be glad to resume the study later next week. With reference to the technical legality and validity of 1 the proposed legislation, there might be a problem with the boundaries of the proposed District insofar as territory outside Denton county is concerned. There is a legislative finding of benefits with respect to all territory within the District, which includes the entire County. However, the boundaries of the District: also can include territory outside the County if it is part of an incorporated entity located partially in the county. Such entities are not named and cannot be known at this time. Thus a finding of benefits to I unknown areas seems to be questionable. In somewhat similar instances we have providad for hearings on benefits with respect to the inclusion of undefined areas. It is noted that Section 8(e) of the proposed Act author- izes the District to condemn any property within or without its boundaries, excepting only property owned by "the county, any i i EXHIBIT.9?:L 1 r I i municipality or any agency or instrumentality thereof", and any "waterworks system or a wastewater system that Is noon profit any municipality, or by private parties, or by any corporation". Many other types of political subdivisions own property which would be subject to condemnation under this language, and it is likely that such entities might object. h1so, section 8(e) gives the District broad extraterritorial Vowers which could put it in conflict with other political ns outside its service area. s~tibdivisio 1 Another technical point is that section 9(a) requires all +'bonds" as defined in Article 717k-8 to be approved by the At.orneY General and registered by the Comptroller of Public Accounts. The Article 717k-8 definition of "bonds" includes short term obligations such as commercial paper and other obligations that may be issued pursuant to Vernon's Article 717q. This would result in a conflict with the use oti rt c e 717q under circumstances where approval and obligations is not practicable. Part II of the proposed Act authorizes the Board of Directors of the District to create subdistricts. in effect this authorizes the creation of the substantial equivalents of municipal utility districts, basically in accordance with the procedures in existing general laws, except that the Board of Directors acts in the place of the Texas Water Commission. Whether or not the 'T'exas Water Commission would oppose such procedure remains to ba seen. In the past it has been extreme- ly jealous of its powers. The foregoing comments relate only to a few technicalities which could be taken care of easily, and to the possible opposition to certain provisions by parties outside the Denton County area. Whether or not the City of Denton should support, - oppose, or ignore the proposed legislation is another matter altogether. Obviously, this decision should be based on the City Council's determination of what is best for the City. Frankly, I am not familiar with the problems, if any, that the proposed legislation would solve for the City. I assume that the City staff as well as thg Council members have assessed this matter thoroughly, and =,till make a decision based on f 4 practical as well as political grounds. However, since my firm and I have acted as bond counsel j for almost all of the major regional water supply systems, i regional wastewater treatment nyatems, and solid waste disposal systems in the State of Texas, 1 do fee'1 qualified to make a few observatiors concerning regional operations. i IA i f I Insofar as a city is concerned, the first question must be o'what is the problem t elved11 better thane then C ityn by regional entity blems the pro have over oins a what system"? It is obvious itself,,? y of various the opation successful regional systems The ifiit js 'what control will th that a number of very ri' functioning. You are aware that the kinds presently d several separate and unrelated Trinity River Authority operates functioning. various cities multi city regional wastewater systems serving including such in Tarrant, Dallas, Ellis, and Denton Counties, and cities as Carrollton atlitss ce tralo Regionalh Wastewater including arts stem to serve p ingitsDentontCreek Regionalso is in the al Wastewater gY cabs of construct- Treatment Southlake, and the Lake Turner of Fort Worth, Roanoke, Haslet, osal problem Municipal 1 in Tarrant and Denton Coun- Utility District No. ti ton has a wastewbeeihats a regional es. If the City of Den it may that it cannot solve by itself, could islp. However, the proposed District would not The TRA certainly has the experience, agency ractical way. The same staff the only Legal power r to help in any p staff and egal p ities. is true with respect to solid waste problem disposal obtaining lan additional ones If the City of Dentdiff future water supply, a different situation exists. With the Roberts I had been under the impression that advent of Lake Ray the City's foreseeable needs would be met. If this is not true, then the situation becomes much more complex and serious. Additional reservoir sites will be difficult to the find an rester in future, competition for water will become much greater can help in Of course, we know that multi-city which some, but not all, instances. We see the Dallas Area Rapid Transit System (DART) as an example toaps is Tonal sintegratentityng, in doesn't seem to be working, and p large part, I believe, because its Board of Directors is too large, and the interests of its constituent cities a,etoand diverse, ractic with the result that cohesive an with the ae7~peoditure even projects have not been forthcoming . Onpthe other hand, the Hater of enormous amounts of moneyney. Texas Municipal Water District and the Tarrant county area, Control and improvement District t Nuu berion operate regional water supply systems very successfully musimilar st be emphasized, hovever, h that in each and a number of other quite succe sfu - operations, the question of control of the Board of of these rincipal Directors has been ct major multi city regi~ al systems with problems with reape member cities have been in connection w{ on the Board of Directors and the resulting control. Large city vs. ~eY The actual p small city has been the most serious problem i I ' i r' rights of the parties to regional systems are determined by the applicable statutes and also the specific contracts between each city and its regional district. However, it is obvious that nothing can be done without the approval of a majority of the Boare? of Directors of the regional district, and the control of such Board becomes vitally important to each member city. As to the proposed District, it should be emphasized that the City of Denton is nowhere rewire to become a "contracting member" or a "participating member". In other words, the City could elect not to have anything to do with the District if it is created. However, if it does, within two years, choose to become a "contracting member" it will be entitled to appoint inly one member to the Board of Directors. Even if the City becomes a "participating member", it would have only one Direc- tor. We do not know how many members there would be on the Board, but presumably it would be a fairly large number. In any event the City would have no actual control over the planning or implementation of projects, or the expenses in- curred in connection therewith. There can be no "participating member" until the District actually has a project to partici- pate in. It is left up to the Board of Directors to write by-laws and rules relating to "weighted votes" for "participat- ing members", but these could be changed, and again the City could not have any real control of where the District was or whether the City's interests would be served. To going, become a "contracting member" the City would have to agree to pay a pro rata share of the cost of administering the District, but the term "pro rata" is not defined and presumably would be determined by the Board of Directors. In conclusion, the City must determine whether or not it needs a regional system of any kind, and whether it needs it now or at a later date when the City's future needs are better analyzed and known. If the City's needs are known in this respect it can be determined in a rational manner whether or not the proposed District would be the best solution, whether or not existing laws are adequate, or whether or not new legislation designed to fit the City's exact needs is neces- sary. Please advise me how to proceed. sincerely yours, i j Paul B. Horton ces Lloyd V. Harrell City Manager i r" y~ December 13, 1988 CITY COUNCIL WORK SESSION TO: MAYOR AND ME-f 1BCRS OF THE CITY COUNCIL FROMi Lloyd V. Harrell, City Manager RE: Upper Trinity Regional Water District RECOMMENOATION: No action is requested at this time. Exhibit 11 is a Resolution ciat has 1 been circulated to all of the Denton County Water Committee rnernber 1 cities for support of the proposed legislation. This Item will be sut.mitu,~d to the City Council at their December 20th meeting for action. SUM MARY/BACKGROuriD: i For the past two and one-half years, the City of Denton has been { working with the Denton Canty Water Steering Committee In an effort I to address the present and long term water and wastewater needs of the various cities and water systems in the Denton County Area. This effort 1 resulted In a comprehensive water study and a recommendation that a regional water agency is needed to provide raw water, treated water and i wastewater treatment services for many of the cities in the area. ~i i The City of Denton and Lewisville subsequently created the non-profit Upper Trinity Municipal Water Authority, and the Denton County Water Steering Committee charged it with beginning to implement some of the study's recommendations including development of legislation that would create a regional water district. The draft legislation has been developed (see Exhibit 1) and the 31 member Denton County Steering Committee has approved the draft legislation and authorized It to be submitted to the Texas legislature. The Steering Committee also recommended that the name of the entity be changed to the "Upper Trinity Regional 4'later District". This name helps emphasize the "reglonal" nature of the entity and avoids confusion with other "river authorities" In North Texas. f 6225U:1 EXHIBITl r i r r This Act viii create a conservation and reclamation district under the terms of Article XVI, Section 59 of the Texas Constitution, that will be able to help secure long term raw water supplies, build and operate water plents, water transmission fines, wastewater plants, wastewater trunk lines, lift stations, landfills, solid waste bulk collection systems, non-hazardous wastes (such as grease trap oils, etc.), and s' •rrr wu,Li control systems. I Membership in the entity will be voluntary and established via contract. The entity will have no taxing powers. Everyone who becomes a member 1 has a seat on the Board of Directors. Board members v.ould be appointed M by the respective City Councils, but would not be members of the City Council. Board members' terms are four years. in order to maintain a transition continuity, the Board members that the City of Denton and Lewisville appointed to the Board of the existing Upper Trinity Municipal Vister Authority, Inc., would continue for two years on the Board of the new entity. I Actions of the Board would be by a majority of the members present, ' except where a weighted vote is required, such as for Initleting a capital project, wherein a majority of the weighted vote Board member will be required. There would be two types of members, a "Participant Member" and a E "Contract Member". Contract Members are cities (or other retail utilities, such as water districts), that contract with the entity, within two years of it's formation, that then preserves the right to become e "Participant Member" anytime within the next ten years. A Contract ` Member would agree to pay pro rets costs associated with the continued regional water/wastewater planning activities. "Participating Members" are cltieo (or other entitles), that contract for specific 4 water/wastewater, or other services. The fees for these services wadd I be based on actual debt service and O&M costs and be allocated on a "postage stamp basis", i.e., everybody pays the same average cost, I I Page 2 I { but would be divided according to the region, i.e., Worth and Northwest Denton County, South and Southwest Denton County, and East Denton County. The entity will have the normal powers of a utility, except it will not J serve retail utility service, and will not have powers of eminent domain 1 uver facilities of retail utilities, or property of the counties or cities. The entity may issue revenue bonds pledged by the revenues of the sale of wholesale water and wastewater services or other authorized services, \ which are backed by contracts with a participating member. Bond terms are limited to 40 years. Recognizing that the main beneficiary of this entity in the early years may be some of the rural areas end smaller communities In the County, the legislation allows the creation of sub-districts that could be formed , 1i in those areas and communities for the purpose of financing, installing, i and operating the water distribution and wastewater collection systems. Such sub-districts would require a confirmation election by the people of the proposed sub-district if an ad valorem tax Is proposed to help finance I the sub-district Infrastructure. The sub-district would have a board of supervisors that would menage the affairs of the sub-districts. The role I envision Denton playing, Is one as a "Contract" member Initially, and perhaps as a "Participant" member later. This entity will , help many of the smaller communities get a wholesale water supply and wastewater service, thereby, relieving Denton of a regional responsibility to provide this service. In the future, Denton may want to become a "Participant", and have the entity waist in securing future raw water supplies. With the assistance of a large number of communities In the region, Denton will be able to share in a greater bargaining power for water rights, reservoir f I i Page 3 J~ i construction, and other water supply issues. Also, a regional entity will help in developing wastewater collection and treatment systems that will help keep our lakes and streams environmentally safe. Initially, there is a possibility that this entity would participate with Denton on our Ray Roberts Water Treatment Plant, which could substantially reduce our costs because of the economies of scale that could be realized by constructing a 16-20 mgd plant vs the planned 10 mgd plant. The PUB raised several good Issues at their 11/16188 meeting and these issues were addressed at their 11/23/88 meeting. The following is the response to the PUB's 11116/88 concerns: I The Public UG!itles Board asked for an analysis of the advantages and disadvantages to the City of Denton of an agency such as the Upper Trinity Regional Water District. In addition, the Board asked that specific concerns with the proposed legislation drafted to implement this authority be provided. , Advantages to the City of Denton i 1. Would provide a mechanism to more easily acquire future raw water supply for the City. a 2. Would provide a regional entity that would have ereater influence with State and local governments In securing water rights fcr the region and thus, for Denton, in the future. 3. Would promote the development of wastewater facilities in the County, thus helping to protect our two water supply reservoirs. 4. Would make It possible for smaller commt.:,ities to "buy Into" our facilities providing an opportunity for economy of scale savings and thus, have a favorable effect on our utility rates. 5. Would provide a vehicle to construct a waste-to-energy plant if such was deemed desirable by the City sometime in the future. 6. Would be another vehicle to promote regional cooperation. 7. Would help to avoid crisis type decision making which might force Menton to provide water/wastewater services to other jurisdictions. Page 4 8. ~iould provide a vehicle to make basin-wide drainage improvements should such be desired by the community in the future, and to assist in addressing stonnwater r,uality monitoring and treatment if the Environmental Protection Agency deems necessary in the future. 9. Would minimize the amount of time which the Dentoi utility staff would have to spend dealing with the many small jurisdictions in the County regarding utility matters. Instead, these discussions could occur with the professional administrative staff of the Age icy. Disadvantages to the City of Denton I. `Mould make it much easier for small towrs, rural water districts, etc., to provide more sophisticated utility servic: then they could provide on their own. The result of this capacity cou!.u be much more rapid development of the smaller towns and -ural areas or even a shifting of population growth from the C;.ty of Denton to the ..naller towns in rural areas. 2. Nould create sn agency which may not be politically responsive, i.e., Tax apprel3al Districts. if the legisiatlc--, allows creation of sub-districts within the City without City approvr.i, utility improvements could be financed with general obligation :onds that may cause Increases in property taxes ?ndJor higher utility rates, resulting in adverse public reaction for the city. 4. Might result in policy making being dominated by sma!i towns because of the representation procedure. 5. Participant members may become "locked in" to the regional entity for wholesale water snd wastewater services. r The following represents specific observations, possible questions and responses about items found within the proposed legislation: Page l-Definitions B. Basic service area- includes area within corporate limits of all participating and contract members (County is a member). 0. Does that mean that all of the unincorporated area of the County is part of the District? i A. Yes. All of Denton County is within the service area of tt a District plus any poet of a city located in another county which la also in Denton County. Service can also be provided nutside of Denton County, but any city located totally, outside of Denton County cannot be a member. 0. Contract member- "pay a pro rate share of the eo~t of operating the Authority". Q. What is pro- rate? How does it relate to "equal votes for ell"? A. Pro rate costs have not been defined yet, but are Page 5 d 1 1 k_ envisioned to be costs associated with the administration and direct costs of regional planning efforts (not costs of administration associated with provising a service such as water treatment). These costs areenvmer to which Is similar to fee" plus perhaps k¢ 1custo Denton County FZegional Water Study. Votingi If a city Is a "contract" member, they will have a vote on the Board; however, on cop tal projects, where a "participant" member has sinned a contract for services from such capital of this are be a "weighted" vote. project, there will planned to be worked out In the By-Laws ofEhe District. Page 4-Section IVs C. Boundaries-county wide "plus"; U. (1) Why must others have part of their boundaries within the County to become of member of the Authority? (2) Might not others within the drainage basin went to join the Authority, and why shoule they be prohibited from so doing? A. (U Cities in the County: See response In "B" above. (2) The Steering Committee felt that they needed to place a boundary on the District and a limit on the number of potential members of the Board. If the district boundaries for membership were left open, the sire of the Board could become very large. ~ I i Page 4-Section Vs "loo member of the Board shall be an elected official of any goveromental entity having the authority to appoint a member of the Board". Comments This provision helps to insure that the agency will be even less politically responsive than one would expect from a special district. Board factors A. bThe ecoming "political" and e possibly specifically decisions based on the other than good sound economics and prudent stewardship :f the wet:r resources and the environment of the region. Comments 'I Everyone appoints one member to the Board. III A. This allows all members, contract or participant, to have a voice in the decisions of the District, even at the risk of having a very large board. Page 6 I 4 F t 5 a. The Board establishes rules for implementation of s systern of weighted votes for specific projects. What would prevent the Board from determining that everyone would have equal votes irrespective of the amount which they put into a particular project? In other words, the procedure for assigning weighted votes should be spelled out. A. the Steering Committee decided not to tie this down by legislation J which would require an act of the legislature to change. Also, the l Steering Committee felt it would be best to leave this issue to the parties who will become board members. It was anticipated that no one at the present time knows who will be the larger or smaller particlpants and those roles may reverse from project to projectl therefore, the methodology that Is determined in the future would, hopefully, be structured so that It is as equitable as possible. An example of this concept is perhaps the City of Uentor's Involvement in the Texas Municipal Power Pool. In this pool relationship, no project or major policy Is adopted unless it is unanimous. The 4 concept ties always been that no one should be Injured by their membership In the Pool and the concept has worked very well. Page 7 , F. Board members may receive up to $5U per meeting plus expenses is provided. This remuneration Is more than that received by council members within the County. I Commend This is similar to other districts and authorities In the State of Texas. This is a permissive provision and it may or may not be implemented. Page 12 E. Authority could provide service outside the service area (no votes for these entitles.) Comments See paragraph "B" above. Page I8- Section X, - Any municipality...etc., doing business wholly or partially within the Authority could enter Into contracts for services. 0, What about customers outside of the boundaries of the Authority I and County? Could there not be such entities? A. See Paragraph "B" above. Page 7 J 1 z Page 20- Pert It, Section Mil, Subdistrictet Authority can create subdistricts; notice must to given to earh municipality in the subdistrict. Comment: 1 This section has been changed to require cities' approval. It appeals that areas within the subdistricts do not have to be geographically connected. Subdistricts can be authorized taxing power after a vote of the people _ within such district: Commentt MUD's not favored by the City Council, and everyone connected did not went Lakeview to be able to provide utility services with taxes because that would be contrary to the way that utility services are provided to all of the remaining taxpayers within the City. - Local governments have no approval right in connection with the creation of a subdistrict within theirJurlsdlctions. Comment This section has been changed to require cities' approval. 1 i Page 20- Section XIVI Existing water supply corporation can convert to a subdistrict. 0. Is this good? It might give the corporation taxing powers which they do not have now. A. It is envisioned that they can do this only with approval of the cities. This also allows them to become members. Otherwise, they cannot be members due to IRS regulation relating to use of tax exempt bonds, Page 20- Section XiXr 1 Creation ex enses- authority to pay all the cost incurred In creation of the Authority, etc. 0. (I) Does this mean that it will pay entities back for expenses incurred up to the present in creating the Authority? (2) Since County paid a major portion of the costs, v,ould they expect to be tepaid? A. Pest £Kpensesi Past expenses that have been "untied by the cities ere not envisioned to be repaid, but the legislation would allow this. However, some legal expenses have been incurred, and it is anticipated that such expenses will be paid by the District after its creation. Page 8 J i r ~ t Mr, Hugh Ayer, City._Gouncilnon and member of the Citizens Task Farce J addressed the PUB with the following comments at that meeting. 1 "I appreciate the concerns these people have. They are the same concerns that we had when working on these things. One of the things we have to consider is that, In the final analysis, we Fire all In this together. We have a community responsibility. You pay money now or you pay money later. 1 am positively convinced that this whole system it the way to help resolve the problems all of us have with wastewater treatment, water treatment, etc. This is the most feasibly appropriate and most economical. There may be some political problems -there always are. But this is the most practical, the most economical and has the best chance to meet the needs for the future. Somewhere down the line, all of us will be affected by what noes on in Krum and Sanger. Fifty years from now, it will make an even bigger impact. On balance, I think this is the best solution to these long range water plans. i They (Lewisville) have becn directly involved from day one and are very much in favor of this agency. 1 am hearing an opinion that Denton doesn't have any responsibility for our neighbors, but I think we do. i think the state Is going to see to it. Just as Dallas has had a responsibility to take care of us and as time yoes on, we are going to have more and more responslbility for outlying communities around Denton. In any case, we can't just think about ourselves. We are too Interwoven among one another." At the conclusion of the PUB's 11/23188 meeting, the PUB recommended the City Council approval of the tipper Trinity Regional Water District and associated legislation but noted certain Issues that the Council may went to offer as amendments prior to legislative approval. i r Page 9 I tA A , These items ere: 1. Tha recommendation that the cities' voting rights be a direct relationship to the amount of money %ve are expected to provide. 2. The recommendation that the City of Denton's liability for bonds be clarified. { 3. The recommendation that board members may be City Council members, and that each member's council have prior approval in terms of Issuance of bonds and capital expenditures. These issues and several of the issues raised in the PUB's 11/16/88 meeting have been reviewed with the members of the Upper Trinity Regional Water Authority and the Citizens Task Force. These groups 4 have acknowledged these concerns and have commented on these Issues or recommended that the draft legislation be amended as follows; 1. Voting rights and limits to financial contribution by "contract" members. The groups, i.e., UTMWA Board and Citizens' Task Force, expressed a very strong position that for "contract" members wherein their main participation on the Board will relate to regional water/wastewater planning issues, that a "one-member"- "one vote" is the desired manner of voting rights in order to maintain harmony with all members of the region. This philosophy has served the 31 member steering committee well and has proven that if a "plan" is submitted that does not generally have full support of the group, that the "plan" needs to be altered. Therefore, they continue to support the "one-member"= one vote" voting rights. i The groups have recommended that a limit be placed on the contribution that a contract member must pay. A figure of $1 per capita was suggested. 2. Clarification of the Cities' liability for bonds be clarified. The City of Denton would have no obligation for any revenue bonds Issued unless the City became a "participant member. Upon becoming a "participant" member, the cities' financial obligation will be spelled out in the contract between the City and the District. 3. A concern that a participant member becomes "locked into" the District forever. 1 There was a general consensus that this Issue be clarified'so that if a member signs up for a service from the District, such as two million gallon per day treated water, that this Is the limit of the member's obligation, £.e., if when the member needs to Increase their treated water supply, they may choose to do so with an amendment to the contract for greater volumes, or they can put In their own water plant. f Page 10 I l S I { The group expressed concern on changes to the following eressi 1. Bonds requiring member city approvals The concern is that with perhaps I0-15 members, this provision would be extremely cumbersome. The group felt that by having each member amend its contract with the District when they needed additlonal service, this provides the checks and balances on the issuance of bonds and thus, obligations of the members. 2. Elected officials constituting the board. The group (with the most vocal parties being council members from some of the communities) expressed that the board should be appointed by the ' governing bodies of the members, rather than being elected at large, or j appointed by the County Commissioners or the Governor and should not be elected officials of the members governing body. I 1 I The thoughts of the group are that with this process of board selection, the member cities could best select persons for the board who are vitally interested in the environmental and water/wastewater issues of the entire region, who have the time to dedicate to the District and who are not i encumbered by a tremendous load of local city Issues that may cloud their objectivity to regional water issues. Respe fully, 1 Lloyd V. Harrell City Manager PREPARED/APPR VEO BY: i R. c. Ne eon, P.E~-- Executive Director of Utilities Exhibit Is Proposed Legislation [Is Proposed Resolution "-J i S MINUTES PUBLIC UTILITIES BOARD November 23, 1986 7{0O AM Civil Defense Room MEMBFR5 PRESENTt Roland Laney, Chairman, Mark Chew, Robert LeForte, John Thompson, Kenneth Frady, Mark Chew, Lloyd Harrell, R. E. Nelson STAFF PRESENTi David Ham, Ron Meyerson, Legal Department, Lloyd McClendon, Gay Racine OIFIERS PRESENTi Jim Alexander, Denton City Council, Hugh Ayer, Denton City Council Member representing the Citizens Task Force on the Denton County Regional Water Study, Terry Tate, Denton Record Chronlele ABSENT: Ernie. Tulloe, (Excused) 1. CALL TO ORDER. Chairmen Laney brought the meeting to order at 70 AM. 2. CONSIDER LEGISLATION FOR UPPER TRINITY REGIONAL WATER f lSTli CT. A general discussion of this item and the City Manager's and Executive nirertor of Utilities' letter of November 22, 1968, follows: item 07. LeForte asked if it is necessary that Denton provide wastewater services for the smeller surrounding cities. Nelson explained that in the rnid-19711's, Denton was designated as a i "regional wastewater treatment system" based on Denton's 1975 Facility Plan. Denton received 75% EPA funding for a new wastewater treatment plant. The facility plan included the cities of Corinth, Lake Dalles, Hickory Creek, Argyle, and all of our service territory from Denton to the Lake, north to Krum, and dust this side of Sanger. Based on this history, Denton may have some obligation to serve these entitles. 1 By utilizing the Upper Trinity Regional Water District to contract for wastewater treatment services for the smaller surrounding entitles, it Is possible to get the smeller cities to share in future costs of wastewater treatment plants that may be required to satisfy the government mandates. he same holds true with any water plants that may be required. LeFLrte Indicated that the real flew with the legislation as proposed is In the voting and decision making process. He felt there should be a relationship between how much the City pays and how much voice it has. EXHIBIT I V PUB P.linutes Page 2 osed Chew indicated he had o problem with the Board orfthe grope come envy having complete authority and Indicated he could o between this agency and problems such as protection of water supply reservoirs. Nelson explained that the State and County do not have good control over package sewer plants and septic tenk systems which create environmental problems for local reservoirs and that this Regional Water Distribuilt an ct could ' operated, thereby wastewater reducing his environmental threat, properly Chew indicated there are problems with getting various governments and organizations together on regulation of this kind. Thompson stated that without State regulation, the quality of water is j progressively deteriorating. 1 LeFotte inquired if the Agency would still develop even if Denton did not loin. Nelson Indicated that yes, the need existed for such a regional j system for the surrounding communities and that this Agency would { probably continue to develop. 1 LeForte referred the Board to Item OD, asking for an explanation of the , "ante-up fee". i Nelson explained that when the initial funding of the Denton County Water Supply Study was set up, all members joining had to "ante-up" $1000, $2000 or $5000, depending on the city's size. There was also an additional fee of 100 per capita. + Laney of the wiording'"...complete ote would be a authority". acceptable the indicate removel that to him9 plus again agreed with this stating that the By-Laws of the proposed agency would I need to address these items. Chew asked about the "disadvantages" as set forth in the memo, most particularly, "..the shifting of population growth to smaller towns..", "..creating an agency which may not be politically reap onsible...could create high tax and utility rates", and N5, "...participating members may becomt locked Into the wholesale member for water/wastewater services", further stating he did not want to get "locked In" to another TMPA. He asked if there was a way out of the agreement. i Harrell explained that until Denton buys Into a project, we can drop out anytime. i i i i g l ];1 C PUB Minutes Page 3 Nelson further added that if Uenten becomes a "contract" member, 1 Denton can drop out; but once Denton becomes a "participating" member, we cannot drop out, but we are not "locked Into" s "full requirements" contract, as he understands the legislation. Nelson gave examples of other agencies, I.e., Tarrant County Water District and the North Texas Municipal Vleter District made up of several different cities In Northeast Dallas County. Thompson asked if the cities could develop water systems outside of the Agency's authority. Nelson expressed that he understands that they could. Meyerson stated there Is nothing in the legislation that precludes Denton from operating its own system. Harrell commented that he felt we needed to think about what role the City of Denton Is going to play In providing water/ wastewater in the future. Staff sees the role of the City of Denton as being a primary one and for this reason, encouraged development of the proposed legislation. ~ I Overall, major concerns of the Board ere: 1. Too much authority on the Board of the proposed Agency. I 2. Denton needs a way out in order to avoid getting locked In as it Is perceived we are with 1 MPA. 3. That City Council members should be able to hold a position on the Board of the proposed Agency. 4. The concern of sub-districts needs to be addressed. 5. The power to issue bonds perhaps should rest with the City Councils. Harrell slated that an amendment to the legislation now protects Denton In-so-far as stern 04 Is concerned; l.e., the cities would have power over sub-districts. Nelson explained that the Agency will be an Independent utility agency authorized to operate as a water/wastewater wholesaler. Hugh Ayer, City Council member, and member of the citizens task force working on these Issues, then addressed the Board. "I appreciate the concerns these people have. They are the same concerns that we had when working on these things. One of the things we have to consider, to that in the final analysis, we are all In this together. Vie have a community responsibility. You pay f I J r PUB Minutes Page 4 money now, or you pay money later. 1 am positively convinced that this whole regulotory system Is the way to help resolve the problems ell of us have with wastewater treatment, water treatment, etc. This Is the most feasibly appropriate and most economical. There may be some political problems, there always are. But this is the most practical, the most economicel, and has the best chance to meet the needs for the future. E k Somewhere dawn the line, ell of us will be affected by what goes on In Krum and Sanger. Fifty years fro- now, it will make an even bigger Impact. On balance, l think this is the best solution to these long range water plans." Ayer then asked that Bob Nelson describe whet may develop with the building of the new water treatment plant. Nelson stated that Denton is planning to build a 10 mgd water treatment plant at Lake Ray Roberts. The cost is estimated to be $7,000,OUO plus $5 to $6,000,000 more for the pipeline, pump and storage facilities to get the water to the Denton system. v The City of Lewisville is in the process of planning to build another water plant. If Denton could increase this 10 MGD water plant to , 20 MGI) water plant, the cost Increase would be only $3 million more to double the plant cepecity by sharing the costs with another entity. If the proposed Regional Agency could become a partner In behalf of the smaller communities for this additional 10 mgd, Lie citizens of Denton could see their cost of water plant capacity being reduced because of economies of scale. This is the kind of thing the regional agency could do--bring together communities to work together to solve common water and wastewater Issues In a more cost effective manner. Nelson further commented that he, the manager of the Agency and representatives of Lewisville met with the manager of the City of Commerce. Commerce had, In the past, asked for a part of Cooper f Reservoir. Right now, Commerce no longer needs that water from t Cooper Reservoir end they are tryiny to find a market for it. The cost of this water is 6¢ to 711!J1000 gallons compered to the Ray Roberts cor' of water of 40¢ to 50¢/iU00. Denton cannot get access to that water by Itself, but through a regional agency, Denton could get that low cost water. These are the types of economies of scale that a regional agency could provide. i ~I PUB Minutes Page 5 Long term, Denton will use the Agency for raw water supply and get the 1 strength that is possible from twenty communities working tor,ether for water rights. Some day, the State is going to have to address who has the water rignts to wastewater effluent. Presently, this wastewater becomes State water when it is returned to the stream. The State then reallocates this water. Denton should be using its own wastewater resources in the future, but it will take political clout to accomplish this goal. Thompson stated that in twenty years Denton will be :ooking for a new source of water rights. It is necessary to begin now to get these rights. LeForte asked if Lewisville has been involved In this process. Ayer explained they have been directly Involved from the beginning and are j very much in favor of this agency. l I Ayer further stated, "I am hearing an opinion that Denton doesn't have any { responsibility for our neighbors, and I think we do. I I think, the State is going to see to it. Just as Dallas has had a responsibility to take care of us and as time goes ' on, we are going to have more and more responsibility ! for outlying communities around Denton. In any case, I we can't just think about ourselves. We are too interwoven among one another." Nelson advised the Board that there are other ways to select the Board of this agencyi 1. With a Board elected by the public in the region. 2. The Governor appoints members to the Board. I However, the Steering Committee felt It best that each entiry should select It's own beard member. LeForte stated that the Board should pass the item on to the City Council, pointing out two Iterns; 1) Financial disparity to voting strength Is inequitable and, 2) voting relative to population Is also Inequitable. Chew asked that Staff include the board's reservation to the City Council about the concern about legal Issues of bonds, revenues, etc. 1 LeForte further asked that our City Attorney review the material. 1 1 J II t 'f a PUB Minutes Page 6 Thompson sretcd that he would desire a 12 member governing board and the vote on participation if they are not involved, I.e., bond issue, projects, etc. Only those members that were participating In that project would vote on it. Nelson explained that bonds will be secured only by the entity being provided services. ' Harrell suggested the Board generally recommend the item to the City Council and reserve special amendments to the legislation before it is passed. Motion: LeForte made a motion to recommend to the City Council approval of the Upper Trinity Regional Water Oistrict and associated legislation reserving I special amendments to the legislation prior to passage Involving: I 1. The recommendation that the amount of money we are expected to contract into beers a direct relationship to the size of the City. Second by Chew, plus, 2. The recommendation that the City of Denton's liability for bonds be clarified, and 3. Thompson made a further recommendation that Board members may be City Council members since In terms of Issuance of bonds and capital expenditures, the City Council should have prior approval. j Laney celled for a vote. All ayes, no neys, motion carried. Meeting adjourned approximately 9:15 AM. 6214U:1-6 I M 11111 J 1 I I I q f DENTON RECORD CHRONICLE NEWSPAPER CLIPPINGS 11/23/86 "Water Board Approves Grant for Supply, Treatment System" 02/12/87 "Justin to Join Water Study Group" 03/19/87 "Sanger Joins County In Study" 10/05/87 "Long Range Water Supply Tops Agenda" 10/06/87 "Strategy Targeted at Water (Plan Establishes County --1 Regional Water Authority)" Ih 11/10/87 Within the body of the Article "PUB Advises Council to OK Turbine"--A resolution supporting participation of Denton with Lewisville as the interim Denton County area Water Agency E was passed.-- 11/22/87 "Regional Water Study Examined" 11/27/87 "Water Plan Gives County Roadmap Into 21st Century" (Editorial) 01/31/88 "Water Plan Heads Area to Future" 02/09/88 "Water Authority Proposed" j 02/23/88 "Interim Agency on Board's Agenda" 02/24/68 "Interim Agency on County Water Plans OkV' i 06/07/88 "County OKs $300 million Water Proposal" I 08/18/88 "Set Course Now for Sufficient Supply of Water In the Future" -(Editorial) 09/13/88 "Legislators Discuss Area Water Issues" 09/28/88 "Little Elm Studies Water Treatment Plan" 11/23/88 "PUB Endorses Proposed Law on Water Districts" 1 i I/25/88 Officiai Praises Idea of Water District" C~ f EXHIBIT l _L S X v Water board approves grant for supply ~treatment system Amt In Dumas Development of the plan is aimed I n part at decreasing the Austin-The Water useofground water, andpro- Development Board onThurs• vidingeconomical long•te~m day approved a $125,000 plann- surface water supplies. ing grant to Denton and area ' Water needs for the area are cities to plan and develop a to be analyzed through the year regional water supply and 2010, e1ongwithadetermination wastewater treatment system. of wastewater treatment needs. ~I Local funds will be used to Precinct 3CommissionerLee match the WDB grant. Walker said elfo, is on the planning project began more Rep. Jim Horn, R•Denton, f P. than a year ago. The area has urged the board to approve the been increasing in populaI!on, request, saying the planning resulting In the nmi for in- effort is"one of the first times creased waterandwastewater in our history our municipalities servlce,shesaid. are talking to each other." Denton utilities director Bob Denton, Denton County, Nelson said the work is intended Dallas and 11 other to benefit all area conununities. municipalities and several private water supply corpora- The water board'splavming dons are involved in the effort, chief, Dr, Herb Grubb, said which involves Denton County Denton County is "one of Lhe excluding the area south and most rapidly growing areas in west of Dentev Creek, accor• the state" and supported the ding to theWUL'>taff, grant request. C' I s staff repots Justin to join eWSW study jroup t I~ 1 shin - 7be City Council o0 Monday night voted to join a VWP of area cities studying wa W needs for the Dallas Oa Wtihed. 71he city win pays 4,110 fee required to join the {P WA council members said. Jlmtio and Roanoke originally we" excluded from the%ow II ~ do~0 in Newatershed. gut Dada officials agreed to include Justin w13e0 it became apparent that the city could not Join another group, a city official sait members made the4mLWcjp4 J4e Post an elected pW tioo. t b~a~ ~s A. L/I s a Long-range water supply - tops agenda staff report The City Council, in one of two meetings i scheduled this week, on Monday will discuss the Denton County water study, a regional approach to addressing long-range water supply needs of citiee and towns In the county. The city of Denton's share toward the cost of the I study was $11,310. Denton County provided 1100,000, the city of Dallas 940,000 sad the state 1125,000, se- cording to city records. ' Also on Monday, council members will discuss a report on traffic access around the Texas Instru- ments plant and a new state law that allows an In- crease in the maximum fines for violation of city ordinance. J The Monday meeting starts at 5 p.m. In the Municipal Building's Civil Defense Room. On Tuesday, counell members will discuss a joint venture with the Denton public schools to build an Indoor swimming pod at the new high school, which i is scheduled to open In 1910. A Tuesday work session begin at 5:15 p.m. in the Civil Defense Room, The regular meeting' '*gins at 7 p.m. in the Council Chambers of the Municipal - - Bull". Other'hleday agenda Items Include: 8 A public hearing on a request by the Cross Timbers Girl Scouts Council to allow overn:ghl camping at the council'& new site on 4000 W. Uni- versity Drive. Council members are scheduled to consider an amendment to an ordinance to allow - \ overnight camping. 1 f A proposed increase In the dumping tee al the city la ■ Several petitions for rezoning, described as "peaceful" by City Manager Uoyd Harrell, f An ordinance naming a proposed North Wes Part tennis and got( buildird "Goldfield Sports Center," after a major contributor to the building's fund-ratstng campaign. 9 A resolution of participation in the Denton County Area 911 Emergency District. I I Strategy targeted at water Plan establishes county regional uater authority rry Tate vd ~qb7 Strategy - 9 staff y Te W rfter 81, ftOM11A One passible saeg, he acid, will An estimated 000 miMoo water supp- be getting the diverse com- ly network in east, north sod south Den- authOrity could be wor" by mu In the county to agree too County should be created to tend to sumaMMIM, ~ tso work t on thepLn. the future water and wastewater s and Dentod : The city of Dentoo's share treatment needs of county communities, County oemamaildes, according to toward the cat of the engineer's according to a plan presented Monday to N46,14 am study was $11,310. Denton County tbeCityCotmcil. ■ Doctors s water supy~y Deeds Fa 1100,000. the city of by a steering agar 3010 WOUld be anted. WM Dallas $0,00 and.. the state committee that began s'udying water and then, Denton's water supplies an 11!6,000, accadlag ooeity reoorcM. wastewater needs In Jahmq, is expected ade4rtata praseW and ass The steering commltlx also to be ready for presentawn to Denton ticipatedpoputatao,Nelson said. recommends selection of a Countycommunitles by next month. ■ nSmmaalttsserr camatwdda around bhaxlbboo oommit$ee that would Called the Tai-Regional Strategy, It Dotson would bseose PUUWS help with education of the com. would establish a county regional water with Denton in a water plant, a munitles and the development of authority that would develop water Donlon would not hove to upand 1406tloo to create the regional systems in the north, lacluding Denton, its water f&cMty to supply the authority. Argyle, Sanger, Pilot Point, Aubrey; in needs of thoseeommunltias. In other council business Moo- the south, Including Lewisvilie with a ■ A comprehensive, well- day: plant built In the Plower Mound are; end JALMW waNV aed wastewatW O rV* qty Unger Rick to the east, Including Tb; Colony, Little plan for the reogn would STeblaarld a median cut an Loop Elm and poesibly north Carrollton. stimulate sosante tl vwtb and 1M would be an apprmule no- Under the plan, meb regioo would set grow theeovkoomeoL , ow for the Tom Instruments oats hued on eeonoaw,:c factors within 0 Smaller eammuoities wool l plant In ttoetk Denton. Alp, the the reem. To the year 9010, the water mt have a ty Weds for Hmited city ban suggested that one drive system Is estimated to cost loch mllllaa welarsupplics. athoaae from U A 77 to TD Is esp and the wastewatersystem1100mlltion Lewisville Lake and Ray psepriate, v ft one scam an • ,IN water rates would be based on the Robasfs Lea would be water - street built oo the and side of the fixed out of each city's share of the ea- Nelson aaltL plant, be said. paciand the variable cat would be based on cats associated with purdmw IV, trains and Qumping water to the respecllve city, ' Deotoo Utilities Director Bob Nelson told council members to it summary of the Committee members consist of rep• resentatives of each of the communities In the county and five water supply districts. Committee chairwoman is Denton County Commissloaer Lee Walker. f By January two, legislation to crate the water authority would be submitted to the Tax" lature for a Neisoa, whocworkked with theenenglneerriq I firm that helped developed the plan. The I ~ See STRATEOYI6A i l t r w PUB advises council to 4K turbi~n~ 8e By Terry Tate ' Staff Miter {lIw The Public Utilities Board advised the City Council on Monday to push ahead with a 13.5 million power source to be 1 built at LewisvUk We despite legal concerns expressed by the Texas Municipal Power Agency. The action recommends approval of a contract with Dominion Bridge-Sulzer to buy a hydroelectric turbine. City Council I members consider the proposal today during a work session that begins at 5 p.m. In the Civil Defense Room of City Ball. Bob Nelson, executive director of ' utilities, Bald the 2800 kilowatt turbine would supply energy to the city's water and wastewater departments at an average cost of 6 cents per kilowatt hour for the first 25 years. TMPA, an energy cooperative com• priaing the cities of Denton, Garland, Greenville and Bryan, is questioning whether Denton's venture violate a power sales contract. The city of Denton was granted a license for the project by the Federal Energy Regulatory Commission in 1664 and has had It under study since 1661. Two previous whlee bids to won project officlals sought ~ amend the TMPA contract Nelson told PUB members Monday that be expects Uie amendment to be approved and that the city would not be in viols dort of Its contract until the turbine begin producing power, which Is expected in the second quarter tai 1666. Denton must begin construction by March 1966 or risk toeing Its dce se, Nelson, sold. Engineering for the turbine 9 lwustag pinta and awd iary equipment must immediately, beW In other business, PUS members sp- proved: A resolution suWocd g the par. f 0 tlclpatloa of Denton with Lewisville as the interim Denton County Arr. Water Agency. The interim agency will male ap- pliadon for grant., employ an engineer I if and spend money relating to time ac• 1 tlvides. A countywide water study committee i has recommended a long-range water and wastewater phn for Denton County cities. A county water agency is expected to be appointed and operating in mid•t989. Regional water study examined By Candies Stephen$ Staff Writer For their first meeting back in the Courthouse-on-the-Square, county commissioners have prepared a lengthy agenda Including aiscwsalon of a Regional Water and Wastewater Study. Study The Denton Committee, formed Intlate 1916, consists of 25 representatives from area cities, towns and water supply systems, Their countywide study outlines several plans dealgmed to ensure wholesale surface water and wastewater servke to par= licipating cities and water sup¢fy systems wiw the county. Al a cost of x300 million, water ,availability for the county will be met through the expansion of water and wastewater systems, according _to the study. The estimated cost of all facWties :required to 2010, including some expau} alon plans already begun, is approx. 44mately $ 00 million for the water system and 0100 million for the wastewater - Lf iced, the factiides would be !f inanced by revenue bonds sold by the xegionsi agency which would be ap- pointed by the Legislature. The agency would pay oft the bonds from sales of ;water and wastewater service to par- ticipating members. ! The population in Denton Cownty Is projected to Increase from the 1996 level of 226,206 to 651,601) by 2016, a 33 percent Scompotmded growth. Water consumption ha projected to Increase from ad average tot S41 million gallons per day (MOD) to X119,1 MGD by 2010, and to 171 MOD dur- ing drought conditions. The use of well water will be ph&W out lm all area communities by 2010, sem- i to the study. The eommfttee i !recommends water treatment be pro -vided In a Trl-Regional concept with a 53 ;MGD water pldt+t ow fake Pay Roberts ~Wving the northern part of the calmly, a 1100 MOD water plant west of Lewlavllle ;serving the south and southwestern part ,of the county, and a 23 MGD plant serving the astern and southeastern part of the county, Each area would be provided (water at a cost based upon the facilities serving it, Other recommendations Include the ,expansion of the existing wastewater ;treatment planes in the county, plus the ladditlso of-three plants. i r a 6 F y i n EDITORIAL ll-`i-s"7 Water plan gives county roadmap into 21st century egionallsm Is the approach for the rest of the 'W and through the '90s. RAs Dallas Mayor Annette Strauss said at a recent meeting of the North Texas Commission, "Freelancing as cities and chambers of commerce just won't work any more." That from a Dallas mayor harkens back to the days when Dallas and Fort Worth fought tooth and toenail over everything from shows to airports to the detriment of both. This week the Benton County commis- sioners approved a water study designed to put cities, towns and water supply systems to the same harness for solving future water a lies and systems and seweraregional approach is going tot- man- for auc6 utilities In the suture. The Donuts Uon of the county is expected to In. crew from about 226,000 now to about 660,000 within 26 years. Just as Dallas cooperation made DentoWs eater o-ppl possib a cooperation among the cities of the coun"f going to assure future water for the increasing ~opul&don. The county will need a peak of 13? million gallons otwater a day by 2010, a big ln- crease from the 34.7 million average now. It will cost money - maybe $300 million - but It Will coal less money cooperatively than it would Individually. The work of the Denton County Water Study Committee will go to the Texas Water Development Board Dec. 17. It should be reassuring to all the residents of the county - and those to come - that farsighted efforts are being made to assure that there is adequate water to sustain the 1 growth that is coming. 3 Y p i Water plan heads area to future/ City officials in Denton County In 1987 pushed ahead on a plan to create a countywide water and waetewatersystem. Officials adopted the concept of a water supply network linked by plants In east, north and south _ Denton County. Ray Roberts and Lewisville tales would be the sources of water. To the year Will, the network would cat and estimated 0900 millim Wo mllllon for the water system sad 1100 million for the wutewater system and would be web rrevenuebonds sold by a agency. The agency would pay off the bonds through water and wastewater sales to participating members, Laoslatlon to create the coun- tywide agency will be submitted to the Tessa Legislature In Jamutry 100. The agency could be workhV by the mmom of 1988, said Bob Nelson, executive director of utilities for the city of Demos. TING oomprsbeosive water and wastewater plan for the region is expected to stimulate growth and dl~to tbant' scent: Water would link Dentoo,t Argyle, the south Pilot Point mW Lewisville, with implant built In the Flower Mound area; and the east, The Colony, uttN rrout L possibly north Car. ~ f + .popul+tiaa Data, Cot Is 7 J4 to rye to 051,80 by Soto am~ p In 10K Water p to We ase to 110.1 million gallons per day by 01010 -1" milllen gallons per day ~ g cond does -tram $1.7 million gallma per day in fi ~ 1 a jA k 3 Water authority proposed staff report master plan to eruure adequate The Public Utilities Board will ommunities~ to Denton County water consider establishment of a The agency will be responsible non-profit interim agency to con- for developint legislation to create tinue wort on the creation of the a permanent regional agency, proposed Denton County water inform participating cities of the authority. agency concept and administer i Board members meet at the wortonthewater supply plan. Service Center Tralning Room, PUB members also will con 901 Texas, at 5:30 p.m We&es• eider a bid of 165,789 by Jay Mat day. Corp, for Installation of a service 1 The proposed Interim water pump at the water treatment i authority is part of a regional plant. I f~ I I y M. ClInterrinm gency 's agenda StaffrepoH The Public Utilities Board on Wednmday will consider recommending to the City Council the establishment of a non-profit interim Igency that will work to dei'=A permanent water au The authority eventually is to adminlster a countywide water and wastewater plan completed tote lutyar. Attlon on the interim agency was tabled at the board's Feb. 1o mewing.: r-, 7bey w am" at 7 a.m. In the, I1wlN'a Ream of the Sheraba 1 Also to bt ceoaldered Is adiylfoe ~ O(OW ~rew~t board potlclr, i I ~E i I I• f 1 I r l . i Interim agency on county water plans OK'd By Terry Tate wanted to ensure that Denton county's water and wastewater guidelines and conditions of ser- Starrwriter plays a leadership role in the In- needs for the next 20 years. A vice before permanent creation or 'I terim agency's operations. steering committee was formed the countywide water agency, The Denton Public Utilities A steering committee com- by the Denton County Commis- tentatively named the Upper Bard this morning approved prising representatives from sloners Cant in February 1987. Trinity Municipal Water creation of a nom-profit interim Denton, Lewisville, Carrollton, The county also hired the firm Authority. water agency to direct water and The Colony, Pilot Point, lake Espey, Huston k Associates Inc,, wastewater plans for Denton Cities std Bolivar will oversee to conduct the study. ■ Serving as the legally liable County through the year 2010. action of the Interim agency. The Twenty-five water agencies and entity during the development of The action allows the Denton agency's purpose 4 to give legal cities participated in the study, the permanent agency. I mayor to eater into an lnterlocal status to plans for a permanent which was finlahed In December. agreement between Denton and regional water authority, said Bob The interim agency's respon• The action today Included ap LewisvUle. authorising the two Nelson, executive director of sibilitleswill Include: proval of on ordinance, to be cities to lad the agency's activi- utilities for Denton. ■ Entering into necessary con- considered by the Denton City ties. The agreement was the result of tracts and kgal arrangements, Council, that would enact the Denton city officials have a comprehensive study of the ■Establiahing organisational proposals. I'~ 1 i 1 } County OKs $300 million water proposal Jla lredrtcto Q ~ G euawneer DOOM Cif s wat amid trere ~mooor plas oodi o aboue~ po0 muna am me nat a ova Woiowotat3ao until = entity is cromod by tht Tens ~ylt~oowsadAT"MOCtf"ortos, 41 be fbsl J ~ri5e vW hosboa rsvieewnd ad I mush W0"itTRY do r ' s~eacy 0" be meted. M P &M castor sad se a r u°W mtl~itlnat tM vow ON amp, cost sboat $M 111111011 and 49 j wa.bwsisr hratmoot padm could 001 goo mom by do yes: 2019, TITW 1"; bonds. in Y b" any 0immio0ionot EM Wam csllod tb coonsitiott of this map of tho pm obi bocom of the blAt %4vd of oomcopnre:`rdo Means Moty citw& i 4 . f. w i 1 I Set course now for sufficient supply of Water ~f the future 11M peak of a Cady drought, CarinN has became the county's Hnt troretm unity to tvlGcCo n water usage. Corinth Mayor S" Spellerbero has declared an emer4eney n tlanln` pprrogram for lawn wad and car waahino. She also has asked ag Commenfal operations to cut back on tbetr daily water usage. CaoeervaUon meesuree of this kind are not mcasmm " long, hut, dry Communities lb DealToo County Npve an adequate water supply and a sufficient westee water treatment srtem to SCOm- modma to~da~y7 seeds But penomc drought CwAtims not wide County experts fear"im- pact off poptdatfonandexpanded raalden CammerClalwater Y"oe. to order to to" with such all expansion before it becamea I problem *(CA (AstroWc 31 dues, low its and water till Ir ve worked togedter to draft a Coon vv muter pan for water 1 wbenlmplem ated,'VW teM the environment and the quality 'r Wa E to the Denton County region until tht yes 3010." the V04 says. Accordimtoloformatkn compiled by Ufa a committee for the Denim Cotmq Wdv Study, "moat muniCipal and I rural utditlo depend m a declining Cglnbwater Iuoohr.Odra few duel ob- ~jlp water ham flwlocal bkw" H" much is mmobl The Rutty Idkalu the "by die !'ear 3010, we will said about lit M Olod gallors a day imgd):'AboudlaemedwillbeavailaNd tram the thew WAI1 ku; LewlwUle. Grasevltw and Ray Rob" Out Wa must + b o a harad amaog "Mal canmudtla. tar aamak r~to to do water belong to pantos, ea. oigdi D"q tao.n mod; CrapavIm 3.IT mgd mA Fart Cidu MUD, 9.04 m4 for a Wfal of IC.91 mod. Authorltlaa antklpaL &At We& will be Wo t0 "a 0 mgd to Denton county. 9~ by 1910, the OLD County noon will sold L esyand Its walls trial UMt Capa- billty, Only two does in tin minty have water wreatmw plants, and there will be a need to dry* WN new regksal plants, the at"rletg eommitlea says to sddtll06 a re~tosal distrthudan system will be mmkd to get the water to local 01110ea. a no waste watee oroceaa is an soled area i of MCgen, Molt Ci 4$ OWto their own wulawstrtreatmedpaanu Same oommue UM In Omitd to "bC tanks, whkb dm't alws wort we0.'lbere b n reg"id system. 3lrlsermare, Is Ne 1my ham users meat of need to peopaah fa trwwl plant meatW futon Oman, dig camntittee'a term there Is a Lek d tm capacity to accommodate growth. study reflects a remmeedabla lob d [pac evmwA ntaa abort 3p mod, Wig-r tip planning And u partlctp " adby 10adNil nes @b out 84madaaploldslornatmdarepaoat tnrreaae to a mgd, E a I advW Dle to to gygings ad "d m la IM, public tupporl Sou both utned al three e L sew reQaul wastewater eswodwl Coouit tam Os I me lecNalop make it paea bla to treat w astewater t* an I encind wwoWd Oo&m hiiggh QaHtY tthe rrut~ed water whkb eauld b! rettroe0 W she takes u a valuableweearreaw".ds report eaya. AI lha soma Hone, addd pmvUlorm would 1 offer wounbed orolecUos provass in the repoa deeigwd io keep Us water asd en, virmmonl Assn 1 i D~ Legislators discuss areal water issues 1.5.I Y ~Jimh ~ stale, eL:-e Ws population is mambas of IM district's beard, eta Wrnv grswtag npidty. gleine coustlss We optlm d 16e1r dUlrkLL and irate Geo. Bob Glasgow and Cwisy= fa Ib act=audtaed Denton abollahlLe Mme rafbg the lime in Rep. Jim Horn sold Monday lbey Our a tadM& system at water pretssb and appeak of bow hip hopes for the Yptaaw trasloaot. &pAa pr&Yay WO moaWdee. r talon of ■ proposed interim "I eommmd Item. Them People for 'Gmpbatl wldha a~eee~ Is oversee ImpiemwLLlir Vw the ~o6l0~, and of Dealm County's rater and nooprwd they bad better asst Wnha the n lure ~vW nod wastSwUr treatmed asd water sew, waras of water baton it saom ray b awn ~ a" study. booemr a problem for them," he Me stab prim Yang Glasgow, Ham sad Rap. Br said. state Imatas an bdag bared in (am" spoke to Commissioners Other gnu touched on by eamb Jail. Mbld ben placed s Court an satud wotia srmedl{%day sbatill ocuoty~yb ~IaaM~ " Worcrowd6 'M and Tnu Therded armal Dallas torothsuch u . The appear t e4! leedoa of the alvve69 prohil d t am Donlan ~by zoW to be We. erfk4Lbaas not aDrMored 9b Wpatature wW per that curate and uolair sppppnnYaY by Weraa~rdhy prdlems, a1 1•ast ff MIL" Glass". D4kapbesv* central appraisal dY4ftis wreee Wm the rrw Jain wm twatpbbd, I rW d the *star gmey. "We dwsteb, Khre wig be some sttentka to hswslrsdtlaclntheMasaeael Hon, RDwtou, said there It because the public Is awte that Deolos County folks sh dut cartaioly will be lspslatlm slgaineantly upset about 1I;' , J Ism aotsp to , able b pea Deo- rscade~ tYs eaotnS appaYal CempbeL said. WMlhee we The eommhttss that has waled "LL's g to realty a lot more Admla a pard" of the S" Us as ON water and wabwstor aaenllao Ikea LL hu In the pet," sales bapr !w 'b Oe Md be rma r study new must pentios the be sat MOMrataedlaeudprism." Hsu mW then m.y be s teal tasmature la the authority to 4 create an agency that WW oversee algpHsg IJvI the cwoly Ls OYyow mid the problem of MelmphemeoLLtlos. ameaor•eollutor and otber phm overcrowding needs N be Gimgor mid the prt6lcra d docfed dnclAk be more involved aaacked al whin ten mid were Ilk 4 . " raelesmlug wutewater fa human W W process possibly by nerving route: the high number of high tea end d noding adequate m s G•trict's board. school dropouts, Un prohtern d oaarawrrua nrarcuS. ~r.k anima d surface wale fa Camybe11, R riower Mound, day abuse W the schoota send Senator Bob GlaVm talks wilh Holm. Horn and Den Campbell. to tell Countl f eveerryyday erb Y • g ++v mid ft!!rr LLee~aYYYYtun would a• olber societal We he days create da Wetker, of LewslOlle, and bcuna cornentssionen of ppoossrble Ieylsllattot problem to Teas, especiellrr is amlwat ka/iYn4esplrachato ea eovifoamml Ihal Produced GrOln. of Corinth. Monday. Glasgow uws from the next trplslatlve sesslon tha. IhesortbsndeaulApoftionsoftM IheWus.buldtrtgelecuanlafbe erlminaY. In town. along with Hrpreseniulives Jim miphlaffect DentonCounlip. I i~ J I ~ i 1 r` "Over the next 21 years there's a projected groN Little Elm of 5 0 percent within Denton County, and mcsl of than will take place within the municipalities," said in- terim manager Tom Taylor, an engineer with Espey studies water Houston and Associates engineering firm in of "The regional plan is designed to meet the needs eeds of that population rr.ost efficiently." While lute] cities will d ~~~:o manage the delivery of clean water and the collection of wastewater, the process of treatment plan an treating and proceasirg the water would be handled 6r Cathy Allen p G p on a regional basis. Correspondent -1 p 6 In numerous planning sessions with Lilte Elm U%de Elm - The provision of clean water and council member,, Taylor has recommended an lo- the management of wastewater are issues that most terim plan until e t the ca s water treatment bullten the people don't think about on a daily basin However, quirements townofficisis in Uttle Elm are studying the necessity area. Rather than constructing the new 390,000• of clean wear in terms of present-day Population gallon-perday plant, Taylor recommends that Little requirements, as well as for generations well into the Elm make fu use of the current plant with the future, addition of interim facilities for a capacity of 200,000 With its current l00,o00•gallon-perday water gallons per day. The Interim fakility would consist of protection capacity Agency order one yin an a small ear conJunctiioo with the city's present pla1nt. band in trea E vvironmentall at ago to remedy the problem, the town of Little Elm „ThIs plan would tdequstely serve the needs of j has come up with It solution that will serve the needs Uttie Elm for five to seven - may 5e ten - years," of the city for the next 20 years, The fact that the Tayfor said. " 8 tie sod of that time the regional Upper Trinity Municipal Water Authority has a plan tive will be much mom In place; there's a lot designed to meet all future water and wastewater going 00 right no to institutionalize the regional treatment needs of the community has presented concept of facilities." town planner, with extensive options. "Over the peat two years we failed to meet our The Interim facility, as well as the yro}ected (EPA) permit specifications for a couple of ]non- regional wastewater treatment plan, would be owned i consecutive) months, and the EPA commanded tm to and operated by the Upper Trirsty Water Authority, do something about Lt," said Jeff Stauffer, mayor of thereby removing the burden of maintenance and Little Elm. "The perlmill requires a certain standard chemical analysis from the municipalities, I of clesdinee+, + with the growth of our comnuNty since the plant w" built over u years ago, we've had comparatively of the interim package operation, a b mallita those eriteris. som Followilrig e pe ble the dlrecti e~by the EPA and „ the Texas reswungin IOU cost gt~ ex Water Commission, town officiate immediately plalned, However, the rotatrucdoo expense Of the authorized their city engineer to design a plan to more efficient 3W,000-gallon system moat by weighed serve the projected community growth effectively In terms of its tmpact on the community, he added over the not 20 years. Sta uffer Bald flat while the case a has yet to mate The resulting design, completed within the last two a decision one way or another, he believes that the months, Calls for a 350,0*llallon-per-day treatment rseouirces and political endorsement of the plant to be constructed next to the present system at regiong wept will provide a more manageable an estimated cat of {900,000. Although the system is system over the long run. deigned to serve adequately the needs of the cmamunity'e growth In 20 years, Stauffer said the "We're slid in the preliminary stage of comparing concern is that tie capacity would far exceed the costa betwaen the two options, and although 1 am commuNty's oasis to the Immediate future - and it Il we can go the regional route, we're is the present populalion that would foot the bill. Pa~b do ha~ er Is economically beet for the ,,We have submitted the plan to the Texas Water p+opie y Commisaloa and received their approval;' Stauffer PpP1ewtollyehere,"Stsuffercoacluded. said. "'t'he problem Is that the debt service would be there from day one, and people's water bills would So "if we go with the interim 200,0009+ll0o facility, up -you'd have a Imo number of people plying we'll haw to depend on our faith that there will be a for the larger Capacity." mayor regional facility built," be said. "Otherwise, we'll be Sikh in seven at eight yeah with having to Toward the end of completion of the new ay+tem s upgrade our system again. design, city officials lit Little Elm learoed of the long-term water atudla being conducted In the Upper TyWty Municipal Water Authority. Comprised of agencies (includittg numerous ]owns) In Denton County, the I" sou funded In Part by a 1125,000 t state grant. Each particlpaling entity Contributed to a latching amount on a pro rata basis, toward the common goal of planning for the cOun II future water to well "wastewater treatment needs ,Over tie next 20 years there's a projected growth of 5.1 percent within Denton County, and most of that will take place within the municipalities;" said In• ~ !seam manager Tom Taylor, in engineer with EsPey { I I I E ould cot written, HLA,P expected to own 47 filing, but per cent of ST1•P because It ysion staff planned to swap part of a e been told lignite-powered plant to East it massive Texas for the city of Austin's chart of the project. hich was a The swap, the centerpiece of a the case plan to end a lawsuit by Austin eaday ito- spLost HL&P, fell apart in late I au, of the October after the PUC declared the exchange would Dot be In the MAP Is Interest of Houston ratepayers, ecovering The plan also was based on 'oit I of the HIAP ending construction of Unit oject. 1 by July. Last-minute bugs, men, the however, postponed the date of 1J Ivocate In operation until Aug. R rate cases, lanksgiving ;es for the - - j i t S aid, it n a loclay PUB endorses propos Sd ,e company p Jamountol Ia1w on water districts. a yes to four it," Ms. Ot• Taus Legislature, which coo- wbo was a member of the steering ,llday !!ling. TWAS Tate Van" indaauary, committee told PUB members be 6ud to spend the PUB member this March, understood their coreerm sad ng HLkP's The Public Utilities Board tills however, attached tries] ref- believed they should be looked morns reluctantly endorsed arvationa to their recommenda- into. But he added that the city r11114 PWOW be bwdoo *Watloc that would do' could not Isolate lba from tutwr create a countywide water Among them were cattcerm that water supply and trestment Issues it I and unit district, the legislation would make Denton in the region. is Electric The action torwards the pro- PAY more money lot* the district "1t seems to me " regfomi poWtotheDenton CItyCputtcii. than Its proportionate voting approach is the most feasible, the "It's all yours,"board duLirman power and the city's repre- most p, ractical, the most J Roland Laney said. etobtlon on the districts board erlttibbte and has the chance t 1 "And thank toll for that," board would not be proportlonate to the In the future," to member Mark Chew added. Ilse of its pcpulatioa. meet our needs said The proposal, the work of a Board members also wanted countywide steering committee assurances that the tegislatim According to city utilities staff, comprising representatives of 91 would not leave the city liable on tbewater district would: awl county cities and towns, would bond ~ s Lnued ratfor projects ts in as•]P acquire vide !more raw waist create the Upper Trinity Regional city Pat Water District U approved by the City Couecilmae Hugh Ayer, supply for the city. I ~ 1 i I I I 1 i A I Official praises idea of . ' >t T Tat ~5 19~F water distrzci y;R a TtfPA wbtchleh f/ aoerp hole cal, trouldn'l mwH en nntltmenle on behalf Of W ~mY•r wandl ud I>aflbn wu the elry of aenloo, la example, Taylor . , ~'m atramit:l~e, Import:11 e~ffoN •va W"W r•/CI,:WW k u grw told, e mrubrnd tWn/ la.uar however, y~1kyy~ pIa City utilities department lists eecuae fM As el Denton ca,aty. ' wch wtil hove one vwa Thal Is TampronT.CAf uumatiood the PUB member Nally posted the • ptlea a uuAllu that wane to tup Owill . of a Primed eayotyeldo wow Prepwal b W pty Qaavru, exprualn, Pa+ eyalem a,I an rive yet ready b pros, colts of proposed district TaylorYtadclpal paata ea/ora V tleoanl the, Deelwo was td+e be 111110 receive oarvkear ouy became "contract' s a1r of the U{ppptr t othrl powr relative to Its population T6es0 membre already nuY y 4' w MMIiry n1 e.r, ~<tPatedfloam4l asd/Ibudlu. bonol b wdDapart ptr4 auaulw aplantsea• snd+es , Dui ma r. nr Nr.mwn„., aus.,rr•or,A /w•.,,4 r,ixmia e,, ,,.,,,,arum, ln,r ry w6eN blarlm etrtrbud cammlttae lad Taylor, Dos uNanrt" crrw,w o,nlwHltmr.n.awn,wrwn•r.ura I •ametl~~tlrarrOr. uW the l+rapotal waservierv0 'hoolwrne4rtnrao.n4nw~NIM w+tnn4 kn.nltrM+ctrr4Yr.tan~r w ma i cruga b •verylaw,auulywt Ih0►Wtoneelwsrricslaw. aw:rw. r,wanewm....rMMarnwar,,.r, It/Wst{s/ may weal jolty and Donal Ibs ty yta4.ttrr+tnin.►s.,,i,,,Ywm~niu,t will be aubmtlUd 1• lb4 TeeaM eeamttles601trafu 'Made of d ~ ae ~en1an which of ..k w.r. (~plt[• wblelemYtnptoJamry, reiepa••esta"M of 01 eluu, 1"M or Medl a fir tly fa hotel, evA um, the a/wrH,►,Nr,m, nNlbn4ma„7h Oe•euwefor, n !!e district mould be am~ teB utlutll sibcy a Darrowlry pawn to tlkv Mr, rrw w,4 rush a actor 6atda r He mOmEus ywqlea, a a b a1/lelu to Dealaa ry Tfila Nsl a^•4►w a. nrw4 w nn n,r w 4 ■ w«4 r a T, n au. a u n w.nt. f '/t111 la 1D•rn. wa41dMINDIe the Mw /Hive h,wltof lla N,N city 4t NNr nra MIM NIhkh NtwpsrI"'nly., trwabneot water plants and wastaeaaLar We A rWy pal draft that reptprua eb?a id encumbering its borrawtrld a4`re'"""4f o: 140:1"'n Oft rwrw4nw 4ra4h,MHII1=, aw~MY twICM, ra Pub. and to dYrgpe d mN all 1110ruta of Denton Q4*.'- M Y uld. n►wt`~` r•, rr twe4 Mute, /waN►Na4 nvywlopmarrr,rwHw w44r,Wm,•IMR•brara Own l]del beruelkwM• an 4b to be the WIU Br• run, be mid, many Donlon IKIIM4,4 Mtanfi,awn.wne b►,4t1 WMNaN1Y,wn, Nl4lnraoa I,I H nNwn',Mr,M MOh nwrar, w..lb hat, a4 tlhra,n4n41N bra br l••r. rwabrawt.r wMYw,N, rslyl,/ 1u1lb hywPr~lsloaallMlylaL IwnaedcllllsadWi/af, an eare /ww4"wlr my uMW Dn4n san"tier towns, W"are Oak ~ Yille annd San M w't 4cnitw,pala 0 a wady el w a ardn, an: •>ptct0d to eyed wow .n fi M"~I 4,N url N ar °e ■ wa4 en,4 Y •a,r r Inn m,Y a w w da sot ve Anincfd tMgN b buy • Not every community will have to wisuwetwbuta wm. aka and r r•w ,w.IMr,n o. n..vnl v o a"r ~`1 W°eeu e wake amwastewater p6ou, MW a water PIMA, uwerPlant or "d .entreMW-M rrn4Hter,a►•a.Hlufirm At teat the memDen of Lim Dents weel•dlapowelwy$UM. Tentative plane Include buddl a /wN4M abMw wnk4 b►MM• 1,ebra ►Mm,nbe,u4MtbrtN rl rawV ra Public Utilities Board, Dowever an 0d a cv;q Dlle s exY that r• sepente Plant or parlleipountl nwith ``www`a°° ,e Nl4nmre,rY nhtwrb n,r,rn nwtliMaucla 1 pa N►4,w4<ntuhNet um Taira ~ .wwaaY+AUfiniwnwu,, tladideafor Deocoo. belpoW YW Deacon In 1o Ray Robtep r4ne. onbawra...t, relknwlr,nMn„tlfi On Wedoudsy, WY q gloved the membsblL•M javaral% Ppoint one bard wbkD al prwot Is to help supply ~Den riwwaMtilaiwrw: a'mr.e.t,.rar w/irµi rb:ueiwr ~r,`i'nalnomr, as Pout prtlop~s dotrIM Offuld be ADnlq to be to to bartleor cluu, there CA w.t« heir Tame I loo's water Node WWO the fleet do. NNrwiro Mm,n4vauu ne,arlrNer entNaw, WW be a eve tarrn,al, w er, NM, M4 4,LItl m N "WW Amoclallon, whirl W city helped afsal, it Dr vft based on unount Y tha A maair Plea MUMMlu Owls w.,rre' a n r, a a uifi Ml a ne,rr / ea k Form I* ten wiNUueeolhrciuu 60 reylanal durtnil 4a.`"mt~«!wiir`rarvr,a►n4ttbnbe.nr bn4n.4~,niitiM ` 4ri+T°.t;,~N,nthesaenID crioloof the early 11M. ;nQrrtkl+rtr+Lim of capital proJecta, wow and wastewater system. flnAed ■44r, arnica of som Mull clues Dy"yW3DI4,woWdcal;=i" I i l i 1 -I titi@ i r AGENDA CI1Y OF LESION CITY COUNCIL January 10, 1989 Work Session of the City of Denton City Council on Tuesday, January 10, 1989, at 5:30 p.m. In the Civil Defense Room of City hall, 215 h. Mchlnuey, Denton, Texas at which the following items will be considered: Note: Any Item listed on the Agenda for the Work Session may also be considered as part of the Agenda for the Regular Meeting. 5:30 p.m. 1. Discussion concerning the funding criteria to be utilized by the Human Resources Committee. 2. Receive presentation of results of the financial audit from Deloitte, Haskins 6 Sells. j ! 3. Consider legislation to create a Regional Water and Wastewater System and consider giving direction to the staff. I ( 4. Executive Session: A. Legal. Matters Under Sec. 2(e), Art. 6252-17 V.A.T.S. 1. Discussion of Ali Al-khafaji vs. City of Denton. 2. Discussion of Flow Memorial Hospital Bankruptcy. B. Real Lstate Under Sec. 2(fArt. 6252-17 Y.A. I.S. C. Personnel/Board Appointments Under Sec. 2(g), Art 6252.17 Y.A.T.S. 1. Consider appointments to the Airport Board, Community Development Block Grant Committee - and the Low Income Housing Task Force. Regular Meeting of the City of Denton City Council on Tuesday, January 10, 19890 at 7:00 p.m. in the Council Chambers of City Hall, ZIS E. McKinney, Denton, Texas at which the following items will be considered: i 7:00 p.m. I 1. Consider approval of the minutes of the Regular Meetings of December 13 and 200 1988. t f r City of Denton City Council Agenda January 10, 1989 Page 2 2. Consent Agenda: Each of these items is recommended by the Staff and approval thereof will be strictly on the basis of the Staff recommendations. Approval of the Consent Agenda authorizes the City Manager or his designee to implement each item in accordance with the Staff rccor„mendations. Listed below are bids and purchase orders to be approved for payment under the Ordinance section of the f agenda. Detailed back-up information is attached to the ordinances (Agenda items 3.A, 3.B). This listing is provided on the Consent Agenda to allow Council Members to discuss any item prior to approval of the ordinance. A. Bids and Purchase Orders: f 1. Bid 19893 - Change Order 1 1 - Woodrow Lane/Burning Tree Lane ` 2, bid 19893 - Change Order 12 - Woodrow Lane/Burning 'free Lane ! 3. bid 19912 - Padmounted Switchgear 4. bid 19920 - Denton Municipal Lab Expansion/ ` building (The Public Utilities board recommends approval) B. Tax Refunds 1. Consider approval of a tax refund for First Quality Foods Inc. for $1,803.20. 2. Consider approval of a tax refund for Selwyn E School for 52,216.13. 3. Consider approval of a tax refund for Glen W. Justice for $1,549.80. f i 3. Ordinances A. Consider adoption of an ordinance accepting competitive bids and providing for the award of contracts for the purchase of materials, equipment, supplies or services. I j J ry s i 7 a City of Lenton City Council Agenda January 10, 1989 Page S b. Consider adoption of an ordinance accepting competitive bids and providing for the award of contracts for public works or improvements. C. Consider adoption of an ordinance authorizing the execution of Change Order 11 to a contract between the City of Denton and Sunmount Corporation and providing for an increase in the contract price. D. Consider adoption of an ordinance authorizing the 1 execution of Change Order 12 to a contract between the City of Denton and Sunmount Corporation and providing for an increase in the contract price. L. Consider adoption of an ordinance approving a lease between the City of Denton and Bert E. I i Mahon and Mary L. Mahon for property located at 1 the City of Denton Municipal Airport, Denton, , Texas. (The Airport Advisory board recommends approval). i F. Consider adoption of an ordinance approving a contract with Freese and Nichols, Inc. for professional engineering services in connection i with the development of a twenty year master plan for improvements to the %astewater Treatment System. (The Public Utilities Board recommends approval.) 4. Resolutions f A. Consider approval of a resolution adopting the 11I boundaries of moderate activity center 140 as a I N1-. part of Appendix A and amending the Intensity Planning Area boundary Map. (Ihe Planning and Zoning Commission recommends approval). S. Receive a report from Gene Douglas and Mr. and Mrs. Tillman Uland regarding the City of Lenton operating defensive driving classes in free competition with their programs. 6. Miscellanrous matters from the City Manager. 7. Official Action on Executive Session Items: j A. Legal Matters B. Real Lstate C. Personnel D. Board Appointments J i I i ti ~ i city of Benton City Council Agenda Jinuary 101 1988 Page 4 g, New business! ThisSitem items for provideEuturesction eagendas ~r Council Members to Bugge 9. Lxecutive Session% A. Legal Matters Under Sec. 2(0), Art. 6252-17 V.A.T.S. - B. Real Lstate - Under Sec. 2([), Art. 6252-17 f V.A.T.S. C. Personnel/board Appointments Under Sec. 2(g), Art 6252.17 V.A.T.S. 1 C L R T I F 1 C A T L ' J ` I I certify that the above notice of meeting was posted on the bulletin board at the a ofity Hall of the City of Denton, oTexas, on the at 'clock (a.m.) T .m. 3026C I i i I 4. WHIIIH 1 ff~ 4 1 III I I r 1 p L i M DATE 11 /10/69 r I CI'IY_C0uNCSL RCPORT FORMAT # 1 701 Mayor and Members of the City Council FROMI Lloyd V. Ilarrell, city Manager SUB16CT1 Continue discussion of Human Resources Committee funding process. RECOMLAENDATION: Staff recommends the HRC policies and procedures document be revised to incorporate changes requested by Council, 1U6iMgQ I The Human Resources Committee had requested some 900 once from Council on what the basic philosophy for funding k of human services agencies should bo. I ' PR06RAM?. DEPARTMEtiTS OR yR0UPSJ9PFEC1ED: Human Resources Committee and those agencies requesting funding from the City. ; E FISCA.L-IMPACT Actions could significantly reduce or possibly maintain at current levels V4 amount of funds prov`Ied to service agencies in the future. t t Re c m i t t arre City Manager prepjred bYI r milty °Comeau Development Coordinator _ A? pi d ' rank bb in e xeCU19bl 8lrector i for Planning and Ue.velopment I i rl s %a u 0 city of DLNTON 1 Community Development Office 110 West Oak Suite B Denton, Texas 78201 (817( 5088480 MCMORANDUM DATE: January 10, 1989 TO: Mayor and Members of City Council THROUGH: Frank Robbins, Executive Director for Planning and Community Development j FROM: Barbara Ross, Community Development. Coordinator 1 I SUBJ: Human Resources Funding Process Attached are copies of the Human Resources Committee's policies and procedures. The copy with highlighted areas indicates changes made to the original. These changes are intended to incorporate your suggestions into the basic framework of the HRC decision- making process. i Section Al explains that these policies and procedures, when revised, will be submitted to Council for their approval, The 1 revision of this document may be used as a basis for discussion 1 in the joint City Council - HRC meeting. ( If You have any •uestions • r comments 'lease advise. Thank you. i Barbara Ross 1 I In The Amerir an Tradition Tlie('ommunIIyllc% lonnrnthlakGrua- Kirel Ing nis at home. In the farnllyt and thruuchout the nelotlmrhotxl. 46 i T 1 1 } `lI HUMAN RESOURCE ADVISORY COMMITTEE I. Statement or Purpose of Ccmmittesi The Human Resources Committee acts as an advisory committee to the City Council. Its members are appointed by the Council. The purpose of this Committee is to interact with community groups in order to bring about improvements in the human services delivery system and provide a forum which promotes better communication and coordination among the agencies, to work close] with he n d Way and other funding Agencies in order to coordinate funding affotto within the N L" to serve in an advisory capacity and encourage continuous in-depth evaluation of the effectiveness of the human service dellvecv evLUZ in Dentonr and to recommend to the City Council, actions for implementation that would improve human services in the City of Denton, its II j I Human Resources Defined, The term human resources (services) refers to those 1 agenciesices that are designed to be available to targeted groups o individuals throughout the community. Basic services normally provided at th`/ local government level may be carried out by human service agencies in en effort to improve the general quality of community life. 1 III, Goneral TYpes of Requests to be Considered by the Commltteei Human resource agencies, individuals, or organizations currently operating in the City of Denton, and/or new agencies proposing to conduct operations within the City will probably request an appearance before the Committee for one or more of the following reasons I a. To coordinate their agency's program with other community agencies. b. To disseminate information to the Committee. c. To request unofficial recognition and support by the Committee* d. To request a letter of support by the Committee and/or an official letter or resolution by the City Council# e. To request financial assistance from the City Council. 1f~ ~ 1 V, I General Policies and Prtcedures for Considering a Request by a Human Resource Agency, Individual or Organizations The policies and procedures adopted by the Human Resource Committee will apply to all individuals and agencies that have made a request to appear before the Committee, 1 A. The Committee normally meets on the first Thursday of each month, Agencies or individuals wishing to appear before the Committee shall request to be included on the agenda at least seven (1) working days prior to the Committee meeting, J rl i Human Resource Advisory Committee Page 2 Be Each agency or individual will complete and return to the staff prior to the seven 17) working days, a questionnaire entitled 'Questionnaire for a Human Resource Agency,' Theme will be made available through the City Staff, C. Presentations bi representatives of a human service agency will make every effort to limit their presentationo to 20 minutes, The Committee reserves the right to interrupt or halt a presentation which exceeds this period of time, D. The Committee reserves the right to limit the number of agency requests per meeting, E, Agencies or individuals making presentations before the Committee will be responsible for all had out materials and audio/video equipment which they may desire to use during this presentation, i All Human Resource Committee meetings are open to the public and news media, however, the Committee may request that representatives of agencies wait outside while the Committee is discussing and deciding what appropriate action to take in regard to that particular agency's request. V. Subject Matter to be Considered b the Committest All agencies, individuals or other types of organtcations requesting to appear before the Human Resourca ' 1 Committee will complete the Human Resources Agency questionnaire which will be provided by the Staff. The questionnaire will bo placed in a file and copies distributed to the Committee, The questionnaire is designed as a comprehensive effort by the Committee to learn as much as possible about th- agency$ Section I deals with general infotmationt Section ti focuses on the nature of the agency's tequestt Section III is used it any agency is requesting fundst Section IV dwells on OMB circular A•95 informatlont Section V includes questions on organizational and general characteristics of the agencyt Section VI deals with the policy making bodyt Section VII is the agency's financial repottt and Section Viii concerns itself with the services i provided by the agency. The questionnaire was developed to allow for specific changes during the year. The questionnaire would only be updated in the areas that have experienced some type of change, deletion or addition and/or perhaps expansion, Agencies requesting an official letter of support by the Committee, Council resolution or financial assistance from the City should be prepared to provide the following information in addition to completing the questionnaire. L Proposed budgets by overall agency and by program. 2, An auditor's opinion statement as to the agency's financial position, 1 3, Coals and objectives of any new proposed program, project or service. I i 1 2197a i I t A DI. 1!aman Resource Advisory Committee Page 1 4. Monitoring or evaluation Statement by the funding agency or licensing agency. S. Annual report for the latest fiscal, grant or calendar year. J 6, For new agencies or new projects, etc. the Committee will look closely i at the methods for continuing operations after the first year, 1. Documentation as to the community's need. 0, A brea%lown reflecting administrative costs as compared to the type and amount of service cost per client. 9. Turn down letters by state or federal funding agencies, { 10. A list of other sources from whom the agency may intend to solicit financial assistance. i i I vie Types of Actions or Recommendations to be Made by the Committee) h A. where agencies are only desiring to disseminate information or coordinate their agency's efforts with the Committee, the Committee will probably j take no action, Be where agencies are requesting unofficial recognition or letter of support from the Committee, the Committee shall act by a motion and approval by a majority of the Committee, C, where agencies desire official support or recognition bl the City Council or requesting financial assistance, the committee shell act by a motion and approval by a majority of the Committee, The Committee will prepare A formal recommendation which will be transmitted to the City Manager's Office, The Committee's recommendation will follow one of the three recommendations listed belows 14 Favorable Recommendations A favorable recommendation will mean that the agency has satisfied all the Committee's request for information, has met the committee's standards as set forth in the Comprehensive Human Resource Plan end has documented the community's need. 2, Favorable Recommendation with Stip_lationss A favorable recommendation with stipulations will mean that as agency has satisfied all of the committee's requests for information, met their standards and has documented the Community's need 69Cept where the stipulation applies. An agency may resolve the stipulation and precede on to a formal presentation before the City Council without reappearing before the Committce. 2401a I I 2 I human Resource Advisory Committee 1 Page 4 1 1. Unfavorable Recommendations An unfavorable recomnendation will mean that the agency has [ailed to satisfy the Colnmlttea'a request for information, met their standards or documented the I community's need. D. Agencies soliciting financial support from the City should be aware that there may be more requests than there is money and that a favorable recommendation by the Committee does not necessarily guarantee that their agency will receive a financial commitment by the City Council. The Committee will Attempt to recomr,end a specific dollar amount to the Council for those agencies requesting financial assistance, however, the 1 City Council may elect to revise this upocifrz dollar amount. Vil. Estebl shmsnt of Priorities for financial Aesistancs RequeaeeE Realizing ehnt the City has limited financial resources for the Human Service Delivery System and that the demand by agencies may exceed these resources, the Committee will rank the agencies aad/or their projects in accordance with the following criteria. The priority criteria will determine the appropriateness of the activity for funding by the City. Capacity criteria will allow ranking based on the ability of agencies to deliver services. i New agencisa will normally receive funding for a maximum of three years. Agencies ere required to request funding each year from the Human Resources Committee. City funds will not be utilized to fund activities generally regarded as the domain of another level of government, i.e., County health care function. Priority Criterias i transportation I (6, vices constitute a fundamental activity of local governmenti public safety co law enforcement environmental services I ncy provides service more cost effectively than would City artment/persorinel. 1 ves target population i.e., elderly, children, low income, } dicapped. E E ~ vices are unduplicated within the City of Denton. funding constitutes leas than 501 of total budget. I nistrative costs constitute less than 201 of total budget. I I I i i t f Human Resource Advisory Committee Page S Capacity Criteria: A. Fiscal 1. Tracking of city funds is adequate 2. Timely submittal of quarterly reports 3. Independent annual audit performed B. Programmatic 1. Services objective met 2. Timely submittal of quarterly service reports 3. Services coordinated with other agencies C. Administrative to Complete proposal submitted 2. Acceptable policies and procedures for provision of services 2. Board of Directors 1 VIII. 1 Public Hearings Conducted by the Committee; In order that the Committee can assist the City in developing its annual budget where it pertains to the Human Service Area, the Committee will conduct meetings or public hearings. These meetings or public hearings will be specifically held for agencies, individuals or organizations which are seeking financial j assistance from the City. i The meetings and hearings will be scheduled to coincide with the development of the City's annual budget. Once the Committee has been notified by the finance director and provided with a proposed time schedule, the Committee will formulize its schedule and process. Although, the schedule may vary from year to year, it will generally convene sometime in the spring each year. The method to be used by the Committee in determining fair share allocation and distribution of funds will be decided in accordance to City policy for that proposed budget year. This method will need to be defined each year prior to conducting meetings and public hearings. Notices of public hearings and meetings will be published in the newspaper and by other means as decided by the Committee. { IX. i Appeal Procedures[ Since the Haman Resource Committee serves in an 4 advisory capacity to the City Council, there are no formal appeal procedures established to provide guidance to a particular agency who has ~I received an unfavorable recommendation, ranked as a low priority, or had a stipulation attached to the Committee's recommendation. It will be at the discretion of the City Council to either uphold or disaffirm an 2407a 1 1 ~ a Human Resource Advisory Committee Page 6 ` unfavorable recommendation, stipulation, or other requirement passed by the committee in reference to a particular agency. An agency however, may elect to reappear before the Committee at a later date to produce new information, facts, or findings which may cause the Committee to alter or revise its initial recommendation. X4 Adoption and Dissemination of these Policies and Procedures: The Committee will review and adopt a set of policies and procedures. The Committee will I~ then present the policies and procedures to the City Council for their review and adoption if so desired by the Council, The policies and procedures will remain in effect until amended, at which time a revised set will be approved by the Committee and resubmitted to the City Council. The Committee will furnish the council and all future Councils with a copy of the policies and procedures, Agencies requesting to appear before the Committee will receive a copy by staff at the same time the questionnaire is requested. Copies may also be requestO directly from the staff. 3 i { 2/07a I I LJ !Jy t HUMAN RESOURCE ADVISORY COMMITTEE 1. Statement or Ynreeof Committee! The Human Resources Committee acts as an advisory committee to the City Council. Its members are appointed by the Council. The purpose of this Committee is to interact with community groups in order to bring about improvements in the human services delivery system and provide a forum which promotes better communication and coordination among the agencies, to serve in an advisory capacity and encourage continuous in- depth evaluation of the effectiveness of thn social service delivery system in Dentona and to recommend to the City Council, actions for implementation that would improve human services in the City of Denton. it, I Hums Aesourees Defined_t The term human resources (services) refers to those agencies and services that are designed to be available to all individual families and groups throughout the community in an effort to fulfill unmet human needs and improve the general quality of lifer III. is auesta to be Conside[e4 by the Committees Human resource General Tvoss of- agencies, individuals, or organitations currently operating in the City of Denton, and/or new agencies proposing to conduct operations within the City will probably request an appearance before the Committee for one or more.of. the following ressonst a. To coordinate their agency's program with other community asteneiaae b. To disseminate information to the Committee. c. To request unofficial recognition and support by the Committeeo d. To request a letter of support by the Committee and/or an offi- cial letter or resolution by the City Council, j e, To request financial assistance from the City Council. i l Paso Two -.opt IV. ' General Policies and Procedures for Considering a Request by a Human Raaource A enc Individual or Oraanlzationi The policies and procedures adopted by the Human Resource Committee will apply to all individuals and agencies that have made a request to appear before the Committee. A. The Committee normally meets on the first Thursday of each month. Agencies or individuals wishing to appear before the Committee shall request to be in- cluded on the agenda at least seven (7) working days prior to the Committee meeting. B. Each agency or individual will complete and return to the staff prior to the seven (7) working days, a questionnaire entitled "Questionnaire for a Human Resource Agency." These will be made available through the City Staff. C. Presentations by representatives of a human service agency will make every effort to limit their presentations to 20 minutes. The Committee reserves the right to interrupt or halt a presentation which exceeds this period of time. D. The Committee reserves the right to limip the number of agency requests per meeting. E. Agencies or individuals making presentations before the Committee will be responsible for all hand out materials and audio/video equipment which they may desire to use during this presentation. F. All Human Resoures Committee meetings are open to the public and news media, however the Committee may request that representatives of agencies wait outside while the Committee is discussing and deciding what appropriate action to take in regard to that particular agency's request. V. I Subiect Matta to CoDgldsred by the Committees All agencies, individuals or other types of organizations requesting to appear before the Human Resource Committee will complete the Human Resources Agency questionnaire which will be provided by the Staff. The questionnaire will be placed in a file and copies distributed to the Committee. The questionnaire is designed as a comprehensive effort by the Committee to learn as much as possible about the agency. Section t deals with general information{ Section It focuses on the nature of the agency's requestj Section III is used if any agency is requesting fundsi Section IV dwells on OMB circular A-95 informations Section V includes questions on organizational and general characteristics of the agency= Section VI deals with the policy making budyi Section VII is the agency's financial reports and Section VI1t concerns it- self with the services provided by the agency. The questionnaire was developed to allow for specific changes during the year. The questionnaire would only be updated in the areas that have experienced some type of change, deletion or add- ition and/or perhaps expansion. i ~ Agencies requesting an official letter of support by the Comraittes, Council resolution or financial assistance from the City should be prepared to provide the following information in addition to completing the questionnaire. I ~ page Three Proposed budgets by overall agency and by program. 1, An auditors opinion statement as to the agency's financial position. 3. Coals and objectives of any new porposed program, project or service. 4. Monitoring or evaluation statement by the funding agency or licensing agency. 5. Annual report for the latest fiscal, grant or calendar year. r _ 6. For new agencies or new projects, etc. the Committee will look closely 1 at the methods for continuing operations after the first year. Documentation as to the community's need. 1j 8. A breakdown reflecting administrative costa as compared to the type and amount of service cost per client. 9. Turn down letters by state or federal funding agencies. 10. A list of other sources Erom'whom the agency may,ittend to solicit ' financial assistance. Vl. 4 Types of Actions or RecoMendstions to a Had Y the_Coasaitteas As where agencies are only desiring to dessaminste information or coordinate their agency's efforts with the Committee, the Committee will probably take no action. 8. Where agencies are requesting unofficial recognition or letter of support from the Committee, the Committee shall act by a motion and approval by _j majority of the Committee. 'I C. Where agencies desire official support or recognition by the City Council ~f or requesting financial assistance the Committee shall act by a motion and approval by a majority of thu Committal. The Committee will prepare a formal rocommandation " anich'pill-ba transmitted •to-ehe-"ty-Manager' s Office. The Comaitteals racommenda- tion will follow one of the three recommendations listed belows 1 Favorable Reaosmlendati0 1 A favorable recommendation t g F.'!Jul mean that the agency has satisfied all the Coromittes'e at for in formation, has met the Committee's standards at forth in the Comprehensive Human Resource Plan and has documented the comunity's need, 1 Fay2a le Recommendation with Stioulat oAw A favorable recommendation with stipulations will moan that an agency has satisfied all of the Committee's requests for information, met their standards and has documented the community's need except where the stipulation applies. An agency may resolka the stipulation and preceed on to a formal presentation before the City Council without reappearing before the Committee, { I E f l Page tour 3. Unfavorable Recommendations An unfavorable recommendation will mean that the agency has failed to satisfy the Committee's request for information, met their standards or documented the community's need. D. Agencies soliciting financial supportfrom the City should be aware that there may be more requests than there is money and that a favorable recommendation by the Committee does not necessarily guarantee that their agency will receive a financial committment by the City Council E. The Committee will attempt to recommend a specific dollar amount to J the Council for those agencies requesting financial assistance, however 1 the City Council may elect to revise this specific dollar amount, f I VII. Establishment of Priorities for Financial Assistance Requestss Realising that the City has limited financial resources for the Human Service Delivery System and that the demand by agencies may exceed these resources the Committee will rank the agencies and/or their projects in accordance to the established priorities which are discussed in the Comprehensive Human Resource Plan, Ranking will in- clude four different categories, which aret a. It is Urgent that the City maintain or improve services in these state. ? b. It is Essential that the City maintain or improve services in these areas. 1 I` I c. It is Desirable that the City maintain or improve services in these areas. d. Maintaining or improving services in these areas ate Deferrable. The Human Rosources Committee will not accept requests for funding from agencies outside the regular budget cycle unless specifically asked to do so by the City Council. VIII. I ` Public Hearings ConduCted by the Committeet In order that the Committee can assist the City in developing its annual budget where it pertains to the Human Service Area, the committee will conduct meetings or public hearings. These meetings or public hearings will be specifically held for agencies, individuals or organizations which are seeking financial assistance from the City. rho meetings and hearings will be scheduled to coincide with the development of the City's annual budget. Once the Committee has been notified by the finance Committee will formulize director and provided with a proposed time schedule, the its schedule and process. Although, the shcedulo may vary from year to year, it will generally convene sometime in the spring each year. The method to be used by the Committee in detormining fair share allocation and distribution of funds will be decided in accordance to City policy for that 1 proposed budget year, 11iis method will need to be defined each year prior to conducting meetings and public hearings. ' 1 1 a d Prp Five I Notices of public hearings and meetings will be published in the newspaper and by other means as-decided by the Committee. IX. Appeal Proceduresi Since the Human Resource Committee serve, in an advisory capacity to the City Council, there are no formal appeal procedures established to provide guidance to a particular agency who has received an unfavorable recom- mendation, ranked as a low priority, or had a stipulation attached to the Committee's recommendation. It will be at the discretion of the City Council to either uphold or disaffirm an unfavorable recommendation, stipulation, or other requirement passed by the Commites in reference to a paticular agency. An agency however, may elect to reappear before the Committee at a later date to produce new information, facts, or findings which may cause the Committee to altar or tevi%e its initial recommendation. I X. (Adoption and Dissemination of theme Policiu and ProWu_reai The Committee will review and adopt a set of policies and procedures. The Committee will then pre- sent the policies and procedures to the City Council for their review and adoption if to desired by the Council. The policies and procedures will remain in effect j until smanded,atwhich time a revised set will be approved by the Committee and resubmitted to the City Council. The Comities will Eurniah the Council and all future Councils with a copy of the policies and procedures. Agencies requesting to appear before the Committee will receive a copy by staff At the same time the questionnaire is requested. Copies may also be requested directly from the staff. i I { , J I i I I FYI r I 1 I 1 I r i i i Delcitte . Haskins Sells 801 Cherry Street. Suite 2340 Fort Worth, Teas 76102-6801 1817) 338-2531 Metro, 654-2777 Cable DEHANDS i The Honorable Mayor and City Council and City Manager December 9, 1988 215 E. McKinney f City of Denton, Texas 76201 1 Dear Mayor, Council Members and City Manager: We have audited the financial statements and supplemental schedules of the City of Denton ("City") for the fiscal year ended September 30, 1988, and have issued our report thereon dated December 9, 1988. As part of our audit, we made a accountingecontrolotoothehextent we system considered internal necessary to evaluate the system as required by generally accepted auditing standards. The purpose of our study and evaluation was to determine tho nature, timing, and extent of the 4 1 auditing procedures necessary for expressing an opinion on { the City's general purpose financial statements. Our study I and evaluation was more limited than would be necessary to J express an opinion on the system of internal accounting control taken as a whole. The observations reported herein should be considered in the context of the responsibility of management for establishing and maintaining a system of internal accounting control, the objectives of and inherent limitations on such a system, and the definition of a material weakness for purposes of this report, which are described in the Appendix of this report. Our study and evaluation made for the limited purpose described in the first paragraph would not necessarily disclose all material weaknesses in the system. Accordingly, we do not express an opinion on the system of Howeveinterns our accounting g ontrol of the City taken as a that ' i we believe is a material weakness. 1 I ' I 1 k ~ 1 A y! s. Our audit did however, disclose the conditions as set forth in the following table of contents that, although not considered by us to be material weaknesses, are weaknesses in internal accounting control and other matters for which corrective actior. might be taken. This report is intended solely for the use of the City Council and management and should not be used for any other purpose. We will be pleased to discuss these recommendations with you further and to assist you in implementing them. - Yours truly, i l I k j i i1 I -2- ~I V r' TABLE OF QSThj Page CASH AND INVESTMENT ACTIVITIES 4 Repurchase Agreements Savings and Loans 4 Cash Transfers 4 Safekeeping Receipts* 5 ACCOU14TING PROCEDURES AND ISSUES 5 Cash Disbursements Fixed Assets Inventory 5 I~ Reconciliation of Utility Receivable Records 6 INTERNAL AUDIT* 6 REPORTS* 6 I EMPLOYEE BENEFITS Health Care Budgeting 7 Deficit Fund Balance 7 Actuarial Study 7 Sick Leave 8 I TAX INFORMAT1014 REPORTING EVALUATION 8 Forms 1099-MISC Magnetic Media Filing Requirements 8 MUNICIPAL COURT 9 I{ HOTEL/MOTEL OCCUPANCY TAX 9 1i Formal Contracts Reporting of Revenues 9 APPENDIX *Noted in prior year 1 3 i w.w•w , ~w uwi . a I CASH AND INVESTMENT AC IV TI ReR rchase Agreements Observation: The City's investment policies with regard to required collateral on repurchase agreements are vague. Recommendation: To strengthen the policies regarding repurchase i agreements, tie city should consider amending the investment policy to: Require 102% collateralization of all repurchase agreements. { During times of interest rate instability, consider requiring 105% collateralization (standard in the brokeragge industry). This would protect tho C{ty more fully from marke• erosion. Include a time limit for repurchase agreements. When a repurchase agreement exceeds thirty days and sophisticated security pricing mechanisms are not in place, the probability of j market exposure is increa;ied. Include a listing of approved securities for use as collateral. If a time limit is not introduced, only securities that can be price tested easily should be allowed (such as U. S. Treasuryy securities and other allowable securities that can be I priced by reference to the Wall Street Journal). II Savings and Loans ' Observation: The City has invested in certificates of deposit and of erFi accounts of savings and loans institutions. Recommendation: Although not prohibited by law, currently cities in e state of Texas are discouraged by current state guidelines from depositing funds in savings and loans institutions. The City should consider amending its investment policies to reflect the current environment. Cash Transfers Observation: Cash held at various banks can be transferred BeEween ,Uy accounts by phone with no written authorization. d Also, these banks do not have a list of authorized accounts to which tho cash may be transferred. These procedures currently do not provide the City much assurance against unauthorized transfers of cash. Recommendation: Banks where cash is held and which allow rFans`fera between accounts by phone should be provided with a list of authorized accounts. In addition, there should be a maximum amount allowed by phone. -4- { i i Also, the person at the City who made the transfer by phone should complete a transfer notice and give it to the proper Finance Department personnel. The transfer confirmation received from the bank should be agreed with this notice and the appropriate journal entry made. Safekeeping Receipts Observation: The City does not receive original safekeeping receipts of the collateral pledged against the City's bank deposits from the custodian bank Requests to the custodian bank to forward the original safekeeping receipt to the City have been denied. 1 Recommendation: The depository agreement should be revised to spec ca y state that original safekeeping receipts should be forwarded to the City. Alternatively, the agreement should be revised to state what other documents or procedures would be acceptable to the City and the custodian bank, This procedure E would ensure that the securities are owned by the Uity in the event of any bank uncertainties. 1 ACCOUNTI~ZC PRUC6D~ N~ISSU~ Cash Disbursements Observation: A special escrow account was opened at a bank for purchasing equipment. When the bank received authorization to disburse the funds in the account, a cashier's check was prepared and the equipment was purchased. However, no documentation was forwarded to the Accounting Department personnel responsible for recording these transactions. As a result, the purchase of the equipment was not recorded on a timely basis. Recommendation: All cash disbursement documentation, especially when tie cesK-disbursement involves special procedures, should be forwarded to the proper Finance Department personnel. Fixed Assets Inventory Observation: The City has performed periodic physical even or es of fixed assets purchased with federal funds. However, a complete physical inventory has not been performed within the last two years for all City fixed assets. Recommendation: Perform a complete City-wide fixed asset physical nventory. 1 i -S- i .low, Reconciliation of Utility Receivable Records observation: The monthly accounts receivable detail ledger prepa--`uDy the Customer Information System ("CIS") was not reconciled to the general ledger. The City has reconciled the daily CIS to the general ledger; however, instances were noted where the sum of daily CIS reports did not agree to the monthly CIS report. Recommendation: Reconcile the daily CIS reports and general e ger to the monthly CIS summary. ~ INTEkNA AUllIT Observation: Currently, the City relies on its system of nterna accounting control and annual independent audit to j provide assurance that the financial statements are fairly presented. While this reliance is adequate, an internal audit function would provide an additional control level and establish a system which would better monitor operations and the accounting system of the City. Recommendation: Consider establishing an internal audit j unct on. Internal auditors' duties and responsibilities vary widely among cities. Frequently internal auditors are involved with operational reviews and special projects as contrasted with the traditional role of financial auditing. The internal auditor should have no authority over nor responsibility for the activities examined. In order for objectivity to be maintained, we suggest that the individual performing this function report directly to the City Manager and report semiannually to the Audit Committee of the Board. This I type of arrangement should provide a level of internal control through segregation of responsibility and give the internal auditor the authority required to operate across departmental lines to best perform the job. $E;QKTS Utilizing Report Writer Function Observation: Financial statistics, taken from the LCFS reports, 4 are being input into the Wang word processing system or into LOTUS spreadsheets to allow for ad hoc reporting or other changes. The American Mansgement I stem's report writer function is not being utilized by the user departments. The AMS report writer is perceived to be extremely complicated to use and users have not been properly trained. Recommendation Users should be trained to use the report writer function or ocher report writing systems should be considered, •6- I ,1 V i 1 q EMPLOYEE BENEFITS Health Care Budgeting Observation: Duringg fiscal year 1987-88, expendituresforhealth .Observation: s gnificantly exceeded budgeted revenues. This yy j a 00deficit AlthouQhself-insurance entities have experiencedat $800 pprnblems ,000. magnitude of thia deficit is estimating health benefits coats, the a concern. Recommendation,modelewhich incorporatesekeysfactors develop variables Personnel met o 0 ogy These may include essential for more accurate rojectionsconsumer price indices, projected claims activity, health workforce utilization profiles, relevant legislation, incurred claims data and other identified variables impacting e future level of health care claims. Once re metiahe ology of should be fully documented and reviewed with app P levels management and thu City's outside contractor, CBS and an actuarial firm. Deficit Fund Balance Observation: The City is projecting a deficit position in thegh s- - naurance fund through the 1991-1992 fiscal year. Althou steps are proposed to offset this deficit through increases in premiums and a one time contribution by the City of $170,000, the fund will be unable to pay total incurred claims during this time period without borrowing from other funds. Recommendation: The City should take immediate steps to balance t e ee - ns`urance fund for the current fiscal year and subsequent years through additional city contributions, additional rate increases and/or changes in the plan design. Actuarial Study Observation: There has been no actuarial analysis to determine t e cgs ow requirements, reserve requirements and other relevant financial issues relating to the self-insurance fund. outside firbudget hCompletiondofuthisgstudyaand Recommendation: The act" en do y by implementation of recommendations early in the fiscal year ghoul be a major priority. -7- Sick Leave Observation: The Personnel Department performed a preliminary rev ew w lch determined that the potential for sick leave abuse exists. ppe related osts. an leave n polMstandt should c Rncernan - uoy of sick Personnel TAXte1NFQRMATION REP ORTING VALU ~ ION sas Forms 1099-MISC Observation: The Cit is required to file forms 1099-MISC in regara-Fo-paymenta of 600 or more to all unincorporated businesses of rent or compensation for services rendered. Such forms are not required for payments for merchandise, freight, storage or similar charges. In the past, the City has filed such forms in regard to payments to individuals only. It is probable that there is a subtantial number of unincorporated businesses with which the City does business for which such forms are required to be filed The penalty for failure to file correct information returns is $ 0 per occurrence ($100,000 maximum). Recommendation: The Citgty's Finance Department is now aware of 099pMISCearenfiledtforn1988eandtfutureryearet the proper Forme 109 Magnetic Media Filing Reguirements Observation: In cases where an entity is required to file 250 or more orms -2 or Forms 1099-MISC, such forms cannot be filed on paper, but must be filed using magnetic media. The City is required to file Forms w-2 on magnetic media and has been doing so. However, no efforts have been made to develop the capability to file Forme 1099-MISC magnetically. It is possible that the City will be subject to the magnetic media filing requirement in regard to its Forma 1099-MISC. The penalty for failure to file magnetically where required is $50 per occurrence ($100,000 maximum). It makes no difference that the required information is filed on paper if it is not filed magnetically; the penalty still applies. Recommendation: The Finance Department is analyzing whether to eve op a magnetic media filing capability internally or to go with an outside vendor. Unless the capability can be developed internally at very low cost, we consider it likely that an outside vendor would be the lees expensive alternative. I y a y z I .r y F Observation: The City has implemented a municipal court software pac age which appears to support several key operational areas. The system is not integrated with the City's general ledger or other financial systems. Recommendation: Study the feasibility of integration of the court system with the financial system. This may require development of conversion software or other special programming, U21U1 MOTEL. QCCUPANCY TAX i Formal Contracts Observation: The City has entered into a formal contract with the Von n Chamber of Commerce which defines all requirements for uses of tax revenues including reporting of performance. However, formal contracts have not been executed between the City and other recipients of occupancy tax revenues including the Arts Council, Historical Society and North Texas Fair Association. Recommendation: The City should enter into formal contracts with all refc pients of occupany tax revenues. i Reporting of Revenues Observation: Tha ordinance providing for the levy and collection of a io[eTToccupancy tax requires that each hotel provide a report to the City detailing revenues and other data requested by the City. The ordinance also requires the hotel to submit a copy of the report filed with the State Comptroller in connection with the State of Texas Hotel Occupancy Tax. A majority of hotels are not complying with this requirement, yet are filing the standard City report. Recommendation: Require all hotels to submit a copy of the State ompL~trolTer s-report for additional verification of revenue received. i -9- I J ,p APPENDIX MANAGEMENT'S RESPONSIBILITY FOR, AND THE OBJECTIVES AND LIMITATIONS OF, INTERNAL ACCOUNTING CONTROL AND THE DEFINITION OF A MATERIAL WEAKNESS The following comments concerning management's responsibility for internal accounting control, the objectives of and the inherent limitations of a system of internal accounting control, and the definition of a material weakness are excerpts from Statements on Auditing Standards of the American Institute of Certified Public Accountants. Management's Responsibility Management of the City is responsible for establishing and maintaining a system of internal accounting control. In 3 fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. Ob ectivee The objectives of a system are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Limitations Because of inherent limitations in any system of internal accounting control, errors or irregularities nevertheless may occur and not be detected. Also, projection of any evaluation of the system to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate. Material Weakness A material weakness for the auditor's purpose is a condition in h which the specific control procedures, or the degree of compliance 3 with them, do not (in the auditor's judgment) reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. These criteria may be broader than those that may be appropriate for evaluating weaknesses in accounting control for management or other purposes. f I CITY OF DENTON, TEXAS SINGLE AUDIT REPORTS FOR THE YEAR ENDED SEPTEMBER 30, 1988 TABLE OF CONTEN'a PAGi Auditors' Report on Supplementary Information Schedule of Federal and State Financial Assistance 1 Schedule of Federal and State Financial Assistance 2-3 Auditors' Compliance Report Based on an Audit of General Purpose Financial Statements Performed in Accordance With the Standards for Audit Issued by the 4 U. S. General Accounting Office I Auditors' Report on Internal Accounting Controls Based Solely on a Study and Evaluation Made as a Part of an Audit of the General Purpose Financial Statements 5-6 Auditors' Report on Compliance With Laws and Regulations Related to Major and Nonmajor Federal Financial -g Assistance Programs Schedule of Findings and Questioned Coate 9 Auditors' Report on Internal Controls (Accounting and Administrative) Based on a Study and Evaluation Made as a Part of an Audit of the General Purpose Financial Statements and the Additional Teets Required by the 10-12 Single Audit Act Il i i I , 1 J a r I Delcitte Haskins -Sells 801 Cherry Street. Su to 2340 Fort Worth, Teas 781026801 (817) 338 2531 Metro 654.2777 Cable DEHANDS I AUDITORS' REPORT 014 SUPPLLAENTAKY INFORMATION SCHEDULE OF FEDERAL AND STATE FINANCIAL ASSISTANCE The Honorable Mayor and Members of the City Council City of Denton, Texas: We have audited the general, purpose financial statements of the City of Denton, Texas or the year ended September 30, 1988, and have issued our report thereon dated December 9, 1988. Our audit of such general purpose financial statements was made in accordance with generally accepted auditing standards and the standards for financial and compliance audits contained in the Standards for Audit of Governmental Or anizations Pro rams c v t es an unct ohs, ssue by the-U. enera ccount ng ice, and; accordingly, included such teats of the accounting records and such other auditing procedures as we considered necessary in the circumstances. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole, The accompanying Schedule of Federal and State Financial Assistanco for the year ended September 30, 1988 is presented for purposes of additional analysis and is not a required part of the general purpose financial statements. The information in that schedule has been subjected to the auditing procedures applied in the audit of the general purpose financial statements ands in our opinion is fairly stated in all material respects. when considered In relation to the general purpose financial statements taken as a whole. 9 December 9, 1988 IIj f i 4 • 1 - i R, .r 1 j CITY or DENTON, TEXAS SCNEDULt Or FEDERAL AND STATE FINANCIAL ASSISTANCE FOR THE YEAR ENDED SEPTEMBER 30, 1915 f CATALOG OF A FEDERAL FUND FEDERAL CMNIOR/ DOMESTIC PROCKAM FUND BALANCE PASS•THROUCH GRANTOR/ GRANT ASSISTANCE OR AWARD BALANCE REYENUES 6EPTEM6ER 30, PROGRAM TITLE It D_NUMBEI% 1,0, NUMBER AMOUNT OCTOBEA It 1911 "~FY6C~1-~~•{TAl'E ~~CAL-~ ERPENDITURC! 1966 U. B. oeparternt of Mowing i and Urban h1viil •~ab'"iFt i CoaTun32y Tlavelopaan'E Block t Grant 1.64•NC•41.0036 14.215 $614,000 ( 4,695 1 3,302 1 234 1 1,743 Community bevalopment Block 1 Clint 1.65.71'•41.0036 14,111 671,916 16,173 56,664 3,369 56,712 19,114 i Community Development Block 1 I Grant 1.66-MC•41.0036 14.111 551,SI4 (21,101) 2),970 179 20,719 (17,011) Cc unity Development Block I Crent B•S1•MC•41.0036 14,211 571,551 6,173 360,929 1,061 446,111 86,970 ` Cc jnity Development 11ork Grant 1.96•MC•41.0036 24,211 553,966 NIL 112,125 1,463 42,39) 12,915 raised Through !tote of Tares Wppartment 61 Comwnlty , Aflalri Rental Rehabilitation Program 00010404563, { 455051, 456051 8.11006, R•61•NC•46.0022 14,730 135,913 :I14 M T`!17 149,119 _ 'iT;9r13 120 )411, "'637T `7 U. 1, Department of Neolth and r "11u+tTR~i taaa"0ThiO.V,Vt, Ittato of Fume Mhabllltatlon Cnalmelonl Recreation Service Model Tfatning DDA1309 13.630 41,711 11-Ij 9S 29.160 47,042 67 U, 1, Decca4amen! et Trrnapottat on ;port Administration Alirport Improvement Program 11/)4600610)66 20.106 226,450 S},lOS) IIS,21f 34,029 21610)1 i I ,2• I 1 C11V Or DENTON, TEXAS SCHEDULE or rf.DERAL AND STATE FINANCIAL ASSISTANCE (Continued) rOR THE YEAR ENDED SEPTEMBER 30, 961 CATALOG Of rEMAL FUND FEDERAL GRANTORI DOMESTIC PROGRAM FUND BALANCE rASS•TNROUGN CRANTOR/ GRANT ASSISTANCE OR AWARD BALANCE REVENUES SErTENBER 30, 1100 *4 SITU I,0, NUNUt 1,1, N11111, 1801"T DCTOBER 1961 -TTDER)(1----59r LOCAL` EXPENDITURES 1961 U, S. Department of tdutatlo 064 tht Ii StiTi'oar LlkrIrr ou`` N A Archive comIWonl 1roJect lead C00817153 14,45! 11,634 f 11,634 Dfudvantela Population 315.1 41,041 N IL - =5 -Tr.Sm - - 1411. Total Federal Financial An(atanca 4,611 930,191 193,06 3 1,011,316 6,311 fate of Tnu Crialna I ~ Ju?t ~ea'~-~[[--vG on L TJJi11TiTitT[8toreeunt Un{t S 81811CO21694 1 15,41i0 4 794 SS 13 ~ 10,429 r_ 'r and n o f to park 10.00111 113.001 _ 6.1,61, 64.65 11J20 161,?11 _],11H) Total State flnanetal Anluanca 6,161 79,241 147,115 S 213,34 0,17 1 TOTAL FEDERAL AND STATE , FINANCIAL ASSISTANCI Man 1!24.841 MW 4ULU2 11.125.441 1A 141 i i I 3 i Deloitte Haskins- Sells 801 Cherry Street, Suite 2340 Fort Worth, Texas 76102.6801 (817(336-2531 Metro, 654-2777 Cable DEHANDS AUDITORS' COMPLIANCE REPORT BASED Oil AN AUDIT OF GENERAL PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH THE STANDARDS FOR AUDIT ISSUED BY THE U. S. GENERAL ACCOUNTING OFFICE The Honorable Mayor and Members of the City Council I City of Denton, Texas: We have audited the general purpose financial statements of the City of Denton, Texas ("City") for the year ended 1 September 30, 1988, and have issued our report thereon dated { December 9, 1988. Our audit was made in accordace with for enerally ac g cepted auditing standards and the standards financial and compliance audits contained in the Standards for Audit of Governmental 0r anizations Pro rams ct v t es an unct ons, ague y t e eneral Account ng ce, an , accordingly, tncluded such teats of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The management of the City is responsible for the City's h compliance with laws and regulations. In connection with our audit referred to above, we selected and tested transactions and records to determine the City's compliance with laws and regulations, noncompliance with which could have a material effect on the general purpose financial statements of the City. The results of our tests indicate that for the items tested, the City complied with those provisions of laws and with which noncompliance e Nothing came to our attention that caused us to believe that q for the items not tested the City was not in compliance with laws or regulations, noncompliance with which could have a material effect on the City s general purpose financial i statements. December 90 1988 - 4 - 1 J I i ' Deloitte Haskins Sells 801 Cherry Street. Since 2340 Fort Worth, Texas 761026801 18171 336-2531 Metro. 6542777 Cable DEHANDS AUDITORS' REPORT ON INTERNAL ACCOUNTING CONTROLS BASED SOLELY ON A STUDY AND EVALUATION HADE AS A PART OF AN AUDIT OF THE GENERAL PURPOSE FINANCIAL STATEMENTS The Honorable Mayor and Members of the City Council City of Denton, Texas: We have audited the general purpose financial statements of the City of Denton, Texas City") for the year ended September 30, 1988, and have issued our report thereon dated December 9, 1988. As a part of our audit, we made a study and evaluation of the system of internal accounting control of the City to the extent we considered necessary to evaluate the system as required by generally accepted auditing standards and the standards for financial and compliance audits contained in the U. S. General Accounting Office Standards for Audit of Governmental Or anizations Pro rams Act v t es an unct ons. For the purpose o this report, we nave classified the significant internal accounting controls into the following categories: Billings Receivables Cash receipts Purchasing and receiving Accounts payable Cash disbursements Payroll Inventory control Property and equipment General ledger Our study included all of the control categories listed above. The purpose of our study and evaluation was to determine the nature, timing and extent of the auditing procedures necessary for expressing an opinion on the City's general purpose financial statements. Our study and evaluation was more limited than would be necessary to express an opinion on the system of internal accounting control taken as a whole or on any of the categories of controls identified above. -5- 4 I v s The management of the city is responsible for establishing and maintaining a system of internal accounting control. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of J a system are to provide management with reasonable, but not l absolute, assurance that assets are safeguarded against loss from unauthorised use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any system of internal accounting control, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the system to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate. Our study and evaluation made for the limited purpose disclose described alin the l material first weparagraph aknesses in would the n systemessarily di I Accordingly, we do not express an opinion on the system of internal accounting control of the City, taken as a whole or on any of the categories of controls identified in the first paragraph. However, our study and evaluation disclosed no I condition that we believe to be a material weakness. 1 This report is intended solely for the use of management and federal and state grantor agencies, and should not be used for any other purpose. This restriction is not intended to a matter which, upon bym the t City distribution Council, of this December 9, 1988 I I 3 -6- i i it J r Deloitte Haskins Sells 801 Cherry Street. Suite 2340 Fort Worth, Texas 76102-6801 (817) 336.2531 Metro. 654-2777 Cable DEHANOS AUDITORS' REPORT ON COMPLIANCE WITH LAWS AND REGULATIONS RELATED TU MAJOR AND NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS The Honorable Mayor and Members of the City Council City of Denton, Texas: We have audited the general purpose financial statements of the City of Denton, Texas ("City") for the year ended September 30, 1988, and have issued our report thereon dated December 9, 1988. Our audit was made in accordance with enerally accepted auditing standards; the standards for financial and compliance audits contained in the Standards for Audit of Governmental Or anizations Pro rams Div t es an unct ons, ssue y t e eneral A counting 6 ce; t e Ingle Audit Act of 1984; and the provisions of OM8 Circular A-128, Audits of State and Local Governments and, accordingly, included suc tests o tie - account ng records and such other auditing procedures as we considered necessary in the cir,:umstances. The management of the City is responsible for the City's compliance with laws and regulations. In connection with tke examination referred to above, we selected and tested transactions and records from each major federal financial assistance program and certain non.major federal financial assistance programs. The purpose of our testing of transactions and records from those federal financial assistance programs was to obtain reasonable assurance that the City had, in all material respects, administered major programs, and executed the tested nonmajor program transactions, in compliance with laws and regulations, including those pertaining to financial reports and claims for advances and reimbursements, noncompliance with which we believe could have a material effect on the allowability of program expenditures. r Our testing of transactions and records selected from major federal financial assistance programs disclosed no instances of noncompliance with those laws and regulations. 1 - 7 - i ,i f y , 1 S y T . Y In our opinion, for the year ended September 30, 1988, the City administered each of its major federal financial assistance programs in compliance, in all material respects, with laws and regulations, including those pertaining to financial reports and claims for advances and reimbursements, noncompliance with which we believe could have a material effect on the allowability of program expenditures. The results of our testing of transactions and records selected from nonmajor federal financial assistance programs indicate that for the transactions and records tested the i City complied with the laws and regulations referred to in the second paragraph of our report. Our testing was more limited than would be necessary to express an opinion on whether the City administered those programs in compliance in all material respects with those laws and regulations, noncompliance with which we believe could have a material effect on the allowability of program expenditures; 1 however, with respect to the transactions and records that were not tested by us, nothing came to our attention to indicate that the City had not complied with laws and regulations. i i December 9, 1988 i i J i i I i I i 1 -8 I i 1, _ g II f CITY OF DENTON TEXAS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED SEPTEMBER 30 1988 QUESTIONED h % PROGRAM FINDING/NONCOMPLIANCE COSTS IM STATU_PRIOR YEAR COMMENT CDBG Gren86-MCb48-0036 Findln The Grantee Performance None _ eport for the period July 17, 1986 to July 18, 1987 was not reconciled to the ' City's general ledger. The Report was understated by $49,000. The Summary of Resources and Expenditures section of the abov-v PerformanceeReportoc ntainedee mathematical errors totaling $2,000 in the captions "total CDBG funds available for use during this reporting period" and "unexpended balance of CDBG Funds at the end of this reporting period." Status: Procedures are now in place to perform reconciliation on a oonthly and yearly basis. i i _9. i i 1 1 Deloitte Haskins Sells 801 Cherry Street. Suite 2340 Fort Worth. Texas 76102.6801 i 18171336.2531 it Metro, 6542777 Cable DEHANDS 1 AUDIADTORS' BASED REPORT ON INTFRNAL CONTROLS (ACCOUNTING MADE AS A PART OF AN AUDIT OF THE GENERAL PURPOSE FINANCIAL STATEMENTS AND THE ADDITIOrZAL TESTS REQUIRED BY THE SINGLE AUDIT ACT I The Honorable Mayor and Members of the City Council City of Denton, Texas: j We have audited the general purpose financial statements of the City of Denton, Texas ("City") for the year ended September 30, 1988, and have issued our report thereon dated December 9, 1988. As a part of our audit, we made a study and evaluation of the internal control systems, including 1 applicable internal administrative controls, used in administering federal financial assistance programs to the extent we considered necessary to evaluate the systems as r required by generally accepted auditing standards, the standards for financial and compliance audits contained in the Standards for Audit of Governmental Or anizations Pro rams ct v t es an 6 7 - unct one, issued y the S I enera ccount ng ce; the File Audit Act of 1984• I and the PProvisions of OMB Circular A-1281 Audits of State and Local Governments. For the purpose of this report, we ave c ass e t e significant internal accounting and administrative controls used in administering federal financial assistance programs into the following categories; Accounting Controls Billings Receivables Cash receipts Purchasing and receiving Accounts payable . Cash disbursements Payroll Inventory control Property and equipment General ledger i I , 10 1 i 1 I I~ i r~ i 1 Administrative Controls General Requirements Political activity Davis-Bacon Act Civil Rights Cash management Federal financial reports Specific Requirements Types of services Reporting Special requirements The management of the City is responsible for establishing and maintaining internal control systems used in administering federal financial assistance programs. In fulfilling that responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of internal control systems used in administering federal financial assistance programs are to provide management with reasonable, but not absolute, assurance that, with respect to federal financial assistance programs, resource use is consistent with laws, regulations and policies; resources are safeguarded against waste, loss and misuse; and 1 reliable data are obtained, maintained and fairly disclosed in reports. Because of inherent limitations in any system of internal accounting and administrative controls used in administering + federal financial assistance programs, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the systems to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate. our study included all of the applicable control categories listed above. During the year ended September 30, 1988, the City expended 55X of its total federal financial assistance for the major federal financial assistance program. With respect to internal control systems used solely in administering the major federal financial 9 assistance program of the City, our study and evaluation included considering the types of errors and irregularities that could occur, determining the internal control procedures that should prevent or detect such errors and irregularities, determining whether the necessary procedures are prescribed and are being followed satisfactorily, and evaluating any weaknesses. - 11 - I f 4 1 7 With respect to the internal control systems used solely in administering the nonmajor federal financial assistance programs of the City, our study and evaluation was limited to a preliminary review of the systems to obtain an understanding of the control environment and the flow of transactions through the accounting system. our study and evaluation of the internal control systems used solely in administering the nonmajor federal financial assistance i programs of the City did not extend beyond this preliminary review phase. Our study and evaluation was more limited than would be i necessary to express an opinion on the internal control systems used in administering the federal financial assistance programs of the City. Accordingly, we do not express an opinion on the internal control systems used in administering the federal financial assistance programs of the City. Further, we do not express an opinion on the internal control systems used in administering the major federal financial assistance program of the City. Also, our audit, made in accordance with the standards mentioned above, would not necessarily disclose material weaknesses in the internal control systems used solely in administering nonmajor federal financial assistance programs. However, our study and evaluation and our audits disclosed no condition that we believe to be a material weakness in relation to a federal financial assistance program of the City. This report is intended solely for the use of management and 1 federal and state grantor agencies, and should not be used I for any other purpose. This restriction is not intended to I limit the distrib-'+on of this report which, upon acceptance by the City Coun%L'., is a matter of public record. ~,,.etseG~G~4~►'~-sue ►~'p~~ i December 4, 1988 i ~ i , I - 12 - i { t j h. i I Ll~ L r ' 1 ' I I I ' fI1 I ]fly It T-M t I - -T rl t a. • t ,S 3d JANUARY 10, 1989 1 CITY COUNCIL AGENDA ITEM i TO: MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: LLOYD V. HARRELL, CITY MANAGER RE: UPPER TRINITY REGIONAL WATER DISTRICT LEGISLATION I RECOMMENDATION: Staff requests direction on issues that are "essential" and items "strongly desired" in order that a Resolution supporting draft legislation can be considered at the I Council meeting of January 17, 1989. I SUMMARY/BACKGROUND: At the Council Work Session on Tuesday, January 3, 1989, the Council raised several questions. These questions can be divided into two general categories: A) Issues that can easily be incorporated into the legislation, and B) Issues that represent substantial changes. The following list represents issues that are consistent j with Steering Committee discussions and that can easily be incorporated into the legislation according to Tom Taylor and Bob Dransfield. These changes are currently being j 4 drafted and will be presented to the Council on January 10, 1989. 1. Reimbursement of Board and Staff expenses. Insert words similar to "reasonable & necessary" 2. Better define "administrative and planning" expenses to be charged to contract members and assure that all "project" related administrative expenses be charged I i to "projects" and, therefore, participant members, rather than to contract members. 3. clarify that each city retains the right to build and expand its system and that the District cannot compel service be taken from the District. 4. Revise the rule on any change to the 50 cent per capita cap on administrative and planning expenses for contract members. 1 The proposal is to have a clause that essentially states that this cap may be chanced only if 75% of the voting members and the votes of the members representing 759 of the population of all members vote for such change. ! I I 5. Require that the District have an annual financial audit by a recognized external auditing firm. 6. Establish that no Board member or staff have a conflict of interest in the affairs of the District. The following represents issues that will require a substantial change from direction previously received from the Steering Committee. These items will require additional negotiation with the Steering Committee members. It would be helpful if the council could specify which of these items are "essential" and which are "strongly desired". With this direction, the Staff will prepare a resolution for the Council's consideration at the January 17th meeting expressing Decton's support of the subject legislation contingent upon the incorporation of the "essential" issues with an additional list of issues which Denton "strongly" urges to be incorporated. These issues are: 1. Weighted vote Participating Members- concept being suggested is: a) 1 vote for each member b) 1 vote for population over 50,000 G ' c) 1 addl. vote for each 4 MoD increment of combined capacity obligation for wtr. treatment, wastewater treatment & raw water (which is not being treated in a District plant) 1 2. Remove prohibition on elected officials being appointed to the Board. 3. At large (rural) Board members- concept being suggestedr r a) Allow the Board to appoint instead of the county commissioners b) Require residence in area being represented 4. Tighten the qualifications for Board members. 5. Prohibit compensation to Board me ers. Res fully, Prepared b 7s Lloyd V. Harrell, C y Mlgr. R.E. Nelson, P.E, Executive Dir. of Utilities 1 I ptss0l/06/89sdisk 1 i I 1 I i 1 1 I January 3, 1989 CITY COUNCIL WORK SESSION TO: MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Lloyd V. Harrell, City Manager SUBJECT. Upper Trinity Municipal Water Agency RECOMME_NDATION E No action required at this time. ~I SUMMARY/BACKGROUND In the early 1984'x, Denton began to be asked to provide wholesale water to its neighbors and, In 19861 the Public Utilities Board included In their Master Plan, f the following paragraphs regarding reglonAl water/wastewater plannings Water "Denton will establish Itself as a regional water supplier utilizing Dallas water for entities other than the citizens In a Oenton. regional Hwater, etresstmem enitityxt lomeetparticipation egion and Denton's future needs. Such entity shell have appropriate controls placed upon it that Denton could appropriately share in the control of its functions, operations, pricing and growth" W.Ast~ e water + will wastewater treatment entity. Denton itself wllla where al economically feasible, encourage discharge of wastewater Into Denton's wastewater collection and treatment system. Where not feasible, Denton will take an active role in in to the northwest wastewater Denton treatment s County oeratl ystem(s) developed monitoring region, and area generally bounded by the Elm Fork of the l of Lewisville on the south." the Hickory Creek Branch O r r r i L 2 As events progressed and Denton negotiated with Lake Cities Municipal Utility Authority, Hickory Cref.k, Argyle and Argyle Water Supply Corporation for sale of wholesale water ind wastewater services, the Public Utilites Board and City Council expressed serious :oncerns about Denton ullizing Its existing relatively low capital cost water plant to serve wholesale customers, and then be required to build a new and much more expensive water plant to replace the capacity being utilized by the wholesale customers. In essence, the concerns revolved around providing water at average costs vs highest incremental costs. However, legal and regulatory precedent regarding providing average cost for wholesale water vs highest Incremental cost had been set in the case of Dallas vs It's wholesale water customers In the mid-1970'x. Dallas had attempted to develop rates for their customer cities based upon the Incremental cost of new reservoirs and treatment facilities and to retain It's water rights for It's own citizens. Dallas claimed correctly that they had sufficlent water supplies and treatment plants for the citizens of Dallas and that high cost new reservoirs, such as Ray Roberts, and treatment plants were primarily required to serve the rapidly growing suburb customer. In fact, this Issue was a major reason for Ray Roberts Reservoir being delayed for several years. The Texas Department of Water Resources (now the Texas Water Commission) 4 and court action resulted In Dallas being required to change its position and offer all water rights, reservoirs and treatment facilities on essentially an average cost basis to its own citizens and customer cities alike. JI With this background, Denton structured its wholesale water contracts with Lake Cities Municipal Water Authority and Hickory Creek to be "interim" water contracts until Denton builds its next water plant, at which time, those customers would be required to provide their own capital and become partners with Denton In a new water plant. In addition, each time a neighboring city I i 626202 1 1 I t i 3 would discuss purchasing wholesale water from Denton and request assistance I in building a water transmission line from Denton's system to their If community, the Public Utilities Board and City Council expressed serious reluctance to spend Denton citizens' funds to help extend water lines for other communities. These Issues and concerns led the Denton Staff to ally away from taking on the role of a regional water/wastewater supplier. The focus was then directed toward helping develop an independent regional water agency who could provide these services. The Staff believes there are four basic alternatives for Denton. Each has pros and cons. These alternatives eres i• Denton become a Regional Agency Pros a) Denton has complete control. b) Denton may increase its Influence In the county. Cons a) Probably would be required to provide services at average cost vs incremental cost. i b) Customer cities may become resentful of Denton's control over their water services c) May have to share Denton's water rights In Lewisville end Ray Roberts Lakes. d) Regulatory bodies and courts may exercise more authority over Denton. e) Would have to provide all up.frdnt capital for new reservoirs, plants end pipelines. f) Major staff effort in maintaining negotiations with customer cities. 2. Denton, alone or with partners, create a "5I1" non-profit corporation to serve as a Regional Agency. (Denton and Lewisville have already done this,) Pros a) Denton maintains majority control. I b) Denton maintains influence In the County. j c) Denton somewhat limits Its liability relative to option 1. d) Denton could possibly avoid sharing water rights and "average" facility costing (but this Is not certain). 6262Ur3 1 r `t f 4 4 cons a) Customer cities may reject concept citing lack of control in decisions but carrying full obligation for payment of costa. b) Denton would have to add staff to handle this effort. c) Regulatory bodies and courts may exercise more authority over Denton. d) Council would have to spend substantial time In I ratifying contracts, bond issues, rates, etc. e) Denton may have to share more costs in pipelines than in option ) or 4. 3. Denton participate In Creation of an Independent Regional Agency Pros a) Denton maintains some degree of control and, by its membership and dominant size in the Couoty, can maintain a substantial degree of Influence. b) Much more acceptable to all entities in the region relative to options I and 2. I c) Removes any liability from Denton except that for which Uenton may specifically contract. ; d) Has support of Texas Water Commission, Water ~ Development Board and North Centrel Texas i Council of Governments. e) Reduces Denton's staff time requirements relative I to options I end 2. d) Reduces reguldtory and legal oversight of Denton's J system relative to options I and 2. Cons a) Denton does not have complete control. b) Denton's influence would be less then options I and 2 c) Could create an entity that may exercise some Influence over Denton's raw water options in the future. 4. Do not participate In Creation of a Regional Agency Pros e) Denton Is removed from any obligations of the agencyo b) Denton's staff time Is substent[ally reduced. i I 6262UA t I J j 5 cons a) Agency will probably be created and Denton would have no influence b) Agency may embark on projects Denton does not think are in the best Interests of Denton. c) Denton may find it necessary to be partners with the Agency in water supplies or facilities, but have less influence In structuring the arrangement than in option 3. lJ d) Denton may occasionally have to resort to an adversarial role with the Agency to gain desired influence over the Agency's actions. Ail of the above pro and con Issues should be supplemented with the general "advantages and disadvantages" listed on page 4 and 5 of the Council backup information of December 13, 1988. RESPONSES TO COUNCIL QUESTIONS OF DECEMBER 13, 1988 I E A number of questions and Issues were raised at the last meeting and others f submitted to the Staff in writing. Following is a listing of these questions and , issues and the Staff's responses: i Issue Denton Contracts with Neighbor Cities In conjunction with the sale of "surplus" water and wastewater services to neighboring communities, Denton has repeatedly taken the position that each of the neighbors must make plans i for permanent service without reliance on Denton's J infrastructure. Is the proposed legislation consistent with that policy? Response Yes. In fact, the legislation will provide us a tool for carrying out that policy. That was one of our main purposes for helping fund the study. Denton's water contracts with Lake Cities Municipal Water Authority and Hickory Creek, at the request of the PUB and Council, are interim contracts only. These contracts have provisions whereby we agree to treat water for these customers at our existing plant only until Denton builds another plant. At that time, these wholesale I 6262U:5 { L 6 customers need to become an equity owner in Denton's new plant and provide capital construction funds. The Regional 1 District will provide a method for these wholesale customers, and several other area cities who have requested wholesale services from Denton, provide the needed financing. Issue Denton's Embedded System Cost i Mli the proposed regional system be able to Impose new costs on Denton or take control of Denton's low cost facilities? Response No. The legislation prohibits the District from taking over any city facility without that city's permission. The District may not impose any cost on the city. All services will be voluntary. The city would request such service from the District only If the District could do it better or at less cost. If the District is ' provides us a mechanism to available to the other cities it 1 retain our existing, lower cost facilities, for the benefit of Denton citizens. Issue Another TMPA it What will keep the Upper Trinity Regional Water District from creating similar concerns that Denton has with TMPA? Response The legl3latlon will prevent another TMPA because the concerns of Denton about TMPA were taken Into account when 1 it was drafted. Denton can serve on the Board, help establish the policies of the agency, then observe the track record of the agency for a few years before deciding if It wants to negotiate a contract for service. If Denton exercises its leadership rode, there is no reason to believe that the agency will not always j serve the best interests of Denton. I 62620:6 1 j 7 The legislation does not impose any obligation on Denton. However, it will give Denton some additional choices for water and raw water supply, wastewater treatment and solid waste, but we are under no obligation to take any of the choices. We can continue to take care of our own citizens within our own capabilities. If we are convinced that the District offers an advantage for a specific service, then Denton contracts for that specific service. One of the concerns with the TMPA contract has been Its "full requirements" provision. Although there is a "beckout" clause from this "full requirements" provision, It is difficult to initiate. The Regional District will not have a "full j requirements" provision. For each service Chet Denton desires, wheti*,er that be for a raw water supply or If Denton should change its present policy of owning all of Its own water/wastewater plants and decide to contract for an Incremental amount of water or wastewater treatment capability, Denton would only be obligated to the amount for which It contracted. Thereafter, on future plant requirements, Denton could either build Its own or it could again contract with the District for an Incremental amount of service. Another concern with TMPA has been that of control. Since the District will be only one of many options that Denton will have for any particular service that the District Is authorized to provide, the 01strict will have to structure and offer those services so that they will be ecunomically attractive to Denton. This element of "competition" will give Denton a high degree of control over hour the District operates. Regarding representation, Denton City Council will appoint one member to the Board and that member can be recalled "without cause" by the Council. There will also be an advisory committee established that will have a representative from each entity. This committee will help to maintain a line of communication to the cities. 6262W i ,A ti 8 Issue Service Alternatives Whet are the choices or alternatives the District will offer Denton? 1 Response Specifically, it is envisioned Denton will have the following alternatives: 1. Become a "contract member" and have a position on the Board and have equal voting regarding water/wastewater I, plans for the region and general policies of the District. This will cost a nominal fee each year, limited to not more than 500 per capita. 2. Denton may become a "participant member" In a water or wastewater pipeline. Denton would have a vote on j matters associated with that project with some degree of proportionality to Denton's financial commitment to ; I the project. r I I ~ f There are two alternatives for how this participation J could be etructured. Denton could either, 1) contract for { this specified service or, 2) could enter a specific contract for a "facility bond" agreement, wherein the District would finance the project, or proportion thereof, i I and Denton would pay the actual debt service coat of { Denton's share of the project. 3. Denton may enter into a "partnership" agreement with I the District for a share of Denton's new water plant wherein the District takes a 25% to 50% ownership. This E 4 arrangement would continue to give Denton control and I operation of the plant but could result In substantial savings to Denton customers because of economies of scale in building perhaps a 20 million gallon per day plant ve a 10 million gallon per day plant. 6262U:8 k i' 9 4. Long term, Denton would probably become a "participant member" for securing additional raw water supplies. The District will provide Denton with much stronger bargaining power and political Influence when attempting to get water rights or In negotiating for water reservoir ownership. In a more Seneral sense, the District could provide the following renge of services to its membersi 1. An agency to obtain a supplemental source of raw water. i 2. A specific capacity in a specific treatment plant or pipeline. Service to a limited area of the r-ity somewhat remote from the city's own facilities. 4. Full service for either wholesale water or wastewater service. 5. An alternative vehicle for financing some of the city's requirements through "special facility bonds". 6. Solid waste disposal. 7. Response to EPA concerning stormweter discharges. 8. Coordination of watershed protection strategies. Issue The Legislation vs the Contracts { i The draft legislation does not seem to answer many of the questions and concerns that have been ralsed. i 6262Ui9 I i I t V . 1 >0 Res onse Legislation is not the proper place to cover the details. The legislation is very broad but enables the creation of a District with sufficient power and latitude to address a variety of needs. The details will be addressed In individual contracts to be negotiated with each agency, occording to the needs and i preferences of that agency. Issue 1lh~a Regional System? ~Ve have done very well without e regional utility system up to this point. Why change now? Res onse The truth Is that we have parts of several regional systems serving Denton County, but none of them are coordinated or under control of Denton County citizens. I'MAWA: Provides water and wastewater services on the east side. Dallas Provides long-range raw water supply and treated water service to several communities. TRA Provides wastewater treatment In the southern I Her. A regional system providing a coordinated plan of service under a board of Denton County citizens does three things: 1. Gives us assurance that the service and supply will be i adequate. i 2. Mekes economic sense. 3. Responds to new regulatory requirements for a coordinated regional strategy for safe drinking water and a clean envircoment. i i 6262U:10 i I 1 J ~ ti F 4 N, I Issue Local Prerogatives Won't the move toward reglonalization take away some local freedoms? Response At first blush, it may seem so; but, on reflection, the correct answer is "No". There is no reason to believe that the regulatory bodies will deny a permit to a city which demonstrates a preference and a capability to do their own thing--especially If they can do It cheaper. s Issue HI by Costs I ` Municipal Utility Districts (MUDS) around the state have exceptionally high rates. This system could make Denton's high water rates even higher. ~ I Response In Demon's situation, this system will not be like a municipal utility district. It will not provide retail service to customers who have no choice. It will provide wholesale service on a more efficient basis then each city can accomplish on its own. Otherwise, it will have no customers because the service is voluntary. i issue More Municipal Utility Districts (MUDS) Ii Denton has always opposed the creation of MUDS. Wili this legislation open the door? Response No, in fact, it will provide more local control over special districts then presently exists. The draft legislation recognizes the right of MUDS to be created and places more control than f i 1 cities now have over the creation and operation of such districts. In fact, each city must concur before a sub-district can be created within either its limits or ETJ. The mein purposes for including sub-districts In the leglsietion Is so existing water supply corporations can be reconstituted so they can I I k Y/ r t y. r j 12 have an opportunity for membership in the District, and for rural residents to have a mechanism to finance and operate a retell water and wastewater system. IssuU 9SULi Out if we choose to become a participating member of the District, can we ever get out? Rea onse A city that joins the regional system for purposes of constructing a facility will be obligated for the some length of E time that It would be If it constructed the same facility by using Its own bondsl that is, the obligation continues until the bonds are retired. However, in the regional system It may be able to transfer that obligation to another member who needs the capacity. As long as we remain a "contract member", we can withdraw at any time. Issue Future Row Water Rights The recently completed Ray Roberts project does not meet all of Denton's future needs for water supply. Now will this i legislation help? Rea onse Two ways. A regional agency, it we chose to use it, will give us more clout in competing for the limited supplies available. Also, it will provir s a mechanism for getting rights to our -`1 return flows. Adminlstrative Costs 189Ue What assurance do we have that this will not be another bureaucratic organization with high costs? We need a detailed statement now. 6262U02 1 I y . s, I 13 Response If Denton chooses to be a contract member so it can be on the board end set policy, it will help pay the administrative cost of the agency; but, it can withdraw at any time. Therefore, the i board will not impose unreasonable charges on Its members; otherwise, it could find itself without anyone to help carry the -1 freight. Furthermore, the legislation sets an upper limit on any such fees at 500 per capita. In addition to the general questions recelved, Councllm em ber Hopkins posed the following specific questions. Listed are responses to those questions and concerns which have not been addressed in the meterial Immediately preceeding. I 0. Are the Attorneys in Hutchison's firm preparing the draft for legislation? A. Bob Dransfield of the firm •f Hutchison, Boyle, hBrooos and Mansf i by has been the primary author op the legislation. ected the Denton County Water Study Steering Committee as pert of the Engineering, n Finance and Study. Team hired to conduct the Denton Q. If that is thr case, which bond attorneys will be representing the district? A. TBond attorneyn he selection off bond attorneys will bendone eby the Board of Directors of the Agency. However, only minimal legal fees have been paid to date, and there may be some anticipation by the attorneys that they will be selected as the bond attorneys. I 0. If it is the same f irm, is this customary? A. It is not uncommon for the law firm who has worked with all of the entities In the region in studying the regional needs and in drafting f legislation for a regional agency, to then be selected as bond counsel. E 62621J 0 3 a 1 ~ I t 14 Subsequent to the December 13, 19881 meeting, we asked Paul Horton, Denton's Bond Counsel, to review the legislation. Attached as Exhibit II are his comments. Also Attached (Exhibit 1) Is a copy of the Legislation (draft of 12/23/88) revised and blacklined to reflect changes from the draft of December 18, 1988. Prepared/Approved Byt Respe ly,~ N Lloyd (f. Harrell hlelson, xe utive Dlrector City Manager 1 Department of Utlliti ey;~'f f ; Exhibit [I Proposed Legislation (revised) III Ltr of 12/28/88- Comments from Paul B. Horton, Denton's Bond Counsel III$ Newspaper Articles IVi CC Agenda Item of December 13, 1988 1 V1 Minutes PUB Meeting r 1 i 1 6262Ut14 1 J r i Hutchison Boyle Brooks & Dransfield i • a.E S ..n 3900 FPST CITE CENTER LN F$CE 000 5,N 1.10 . EN' En • N ~A r E DALLAS. TE'(AS 75201-6622 41„•1N •Er,S W31 4;39 Robert D. DnmCeld 7+4) 7646600 V21 4'r 47' 1214 r5, 5633 CALLAS'ELECQF. NUWBEn. 2.4. 754 1040 December 23, 1988 D OEC 300 The Honorable Mayor and City Council City of Denton ;MM Of RS RNT"O' ICE 215 E. McKinney Denton, Texas 76201 Re: proposed Legislation Creating Upper Trinity Regional i Water District Dear Mayor and Councilmembers: j In accordance with the requirements of Article XV1, Section 59(e) of the Texas Constitution, I am forwarding herewith one copy of the proposed legislation referenced above, together with one copy of the Notice of Intention to Introduce a Bill published on December 7, 1988, in The Dallas Morning News, a newspaper of general circulation in Collin, Dallas, and Denton Counties. i , The proposed bill, if enacted and signed into law, would create a regional water and wastewater district located primarily in Denton County, Texas. It would be empowered to serve cities whose boundaries are wholly or partially within Denton County. The legislation is the outgrowth of a detailed planning process which has taken place over the past two years and which has involved approximately 30 governmental and quasi-governmental entities in Denton County. The district has no taxing power. The primary purpose of the bill is to create an entity that can provide water and wastewater planning and implementation services in Denton County on at regional basis. The disposal district would and o nobe emowered to n-hazardous liquid provide solid disposal services as the circumstances would dictate, A copy of the bill has been forwarded to Governor Clements in accordance with other constitutional requirements. 1 i EXHIBIT J M The Honorable Mayor and City Councilmembers December 23, 1988 Page Two Should you have any questions, please do not hesitate to contact me, Sincerely, HUTCHISON BOYLE BROOKS 6 DRANSFIELD L 1wxf-,A' 4+~ Robert D. Dransfield h RDD/als 111 4112W ENCLOSURE II I i E I` i i o~~~o ,I 6011CE OF INTENTION TO INTRODUCE A BILL STATE OF TEXAS COUNTY OT DENTON NOTICE is hereby given that the undersigned intends to apply to the Legislature of the State of Tells, Regular Session, for the passage of a Bill relating to the creation of the Upper Trinity Regional Water Districts providing definitions and legislative findings; providing for a board of directors and the management of the Districts providing the rights, powers, duties, and functions of the District and its board of directors and other personnels providing for the establishment of a customer advisory councils providing general and specific powers and duties of the District; providing procedures for the issuance of bonds, notes, and other obligations, and the use of the proceeds thereof; providing for the designation of a depoaitorys providing procedures for entering into and letting contracts; providing certain regulatory and police powers; autborieing the creation of subdistrict& and providing procedures for the operation of such subdi9tricts; providing for the payment of creation expenses; providing an exemption from ad valorem taxation; providing aeverability; making findings of to compliance with requirements of Article XVI, Section S9( 6) and Section St(s), Texas Constitution; and declaring an emergency. I THIS NOTICE is given in accordance with the requirements of Section 59(d) of Article XVI of the Taxes Constitution and said legislation will find that said requirements have been met. GIVEN this December S, 1968, 1 I BOARD OP DIRECTORS ~ UPPER TRINITY MUNICIPAL WATER AUTHORITY, INC. ' I 1 I ~ I I EXHIBIT- d F w P F i . Hutchison Boyle Brooks & Dransrield A KDFIiS,014, CCAPOPAM1DN [ A"riP bk E ~ 3900 FIRST CITY CENTER AUSTIN OFFICE DALLAS, TEMS 75201.4622 X009 SAN r.CO.WC CENTER TCAN LAKE Robert D. Dransrield 1214; 7646600 AUSTIN TE:A5 1E70, 4039 (214) 7646633 15-21471F 4121 D4U6 TELECOA'Y NUMBER. 12u1 r54-0040 MEMORANDUM Orr ~ h lJnQ I (18 T03 The Attached Distribution List FROMt Bob Dransfieid REE December 23, 1988 RE6 Upper Trinity Regional water District r Enclosed herewith please find a draft of the legislation authorizing the creation of the captioned district, marked to reflect the changes reviewed at the December 21, 1988 worksession. Please do not hesitate to contact me should you have any questions. i EXHIBIT i a, DISTRIBUTION LIST Commissioner Lee Walker courthouse on the Square 110 W. Hickory Denton, Texas 76201 Mr. Steven Bacchus 151 W. Church Street Lewisville, Texas 75067 Mr. R. E. Nelson 215 E. McKinney Street Denton, Texas 76201 Mr. Austin Adams 122 Brookdale Lewisville, Texas 75067 I E Mr. Don Cline 1945 Jackson Road Carrollton, Texas 75006 f Mr. Tim Fisher 1123 Fort Worth Drive Denton, Texas 76201 Mr. Martin Highbaugh 501 N. Shady Shores P. O. Box 355 Lake Dallas, Texas 75065 Mr. Dick Sellars 100 E. Main Pilot Point, Texas 76258 j Mr. Tommy Turner P. 0. Box 56008 The Colony, Texas 75056 Mr. Tom Taylor 1100 N. Kealy Lewisville, Texas 75067 Mr. Frank Medanich Mr. David Medanich 500 First City Center Dallas, Texas 75201 Mr. Ronald S. Meyerson Assistant City Attorney City of Denton 215 E. McKinney Street Denton, Texas 76201 Mr. Ronald J. Neiman City Attorney City of Lewisville 386 W. Main Lewisville, Texas 75067 Ms. Karen Brophy City Attorney -~i City of Carrollton 1945 Jackson Road f Carrollton, Texas 75006 { I ~ l I, { f 4 ~ I a x.,. Gt9Aa&rfJ ~R~4T o~ :i/>L1J H. _'2 r ~3 A BILL TO HE ENTITLED -DEC ! AN ACT relating to the creation, administration, and powers, including the power of eminent domain subject to limitations, and to the duties, operations, and financing of the Upper Trinity Regional Water District, and to the creation therein of subdistricts with the power to levy and collect ad valorem taxes within the subdistricts; and containing other matters related thereto. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Purpose. It is the purpose and intent of ' this act to establish a mechanism that can provide on an orderly basis for the water, wastewater, solid waste, and liquid waste needs of Denton County and the entities that may be served by the authority herein created. To accomplish this II purpose, a conservation district, without taxing power, is 1 created, with the power included to create subdistricts having the power of taxation, subject to limitations, all for the purpose of providing for such services on a coordinated busts that is consistent with the regionalization objectives to be satisfied by the creation of the authority. SECTION 2. Definitions. In this act: J I (a) 'district' means Upper Trinity Regional Water District created in section 4 of this act and any other public body at any time succeeding to the property, principal rights, powers, and obligations of said Upper Trinity Rey.onal Water District. (b) 'basic service area' means the geographic area contained within the corporate limits of all participating members, ■ll conttaat members, and all customers and such areas as are served by said members and customers. + (c) 'board" means the governing board of directors of the district. (d) 'contract member' or 'contracting member' means one i or more, as the case may be, of the governmental entities which EXHIBIT t I t. r i i provides retail utility service within its boundaries, that contract with the district within two (2) years from the effective date of this act to preserve the option to become a participant within 19 years from the effective date of this act and agree to pay son annual pro rata share of the cost of administering the district which share shall never exceed for any contract member fifty cents per capita unless otherwise agreed to by at least seventy-five percent of said members. L (e) 'county- means Denton County, Texas. (f) 'customer' means any wholesale user of the water or I wastewater services provided by the district which user h provides retail utility service withlnAtAe boundaries of said user. f (g) -participant' or 'participating member' means one or more, as the case may be, of the governmental entities which provides retail utility service within its boundaries that contract with th't district for the construction of and payment for the water and/or wastewater projects to be financed from time to time by the district. (h) 'service area' means that geographic area contained within the boundaries of the district. (i) -state' means the State of Texas. (j) -subdistrict- means one or more of the subdistricts authorized to be created under Part 11 of this Act. SECTION 3. Leoislative tindinos. (a) It is hereby f found by the legislature that the creation and establishment of the district and the creation and establishment of skbdistricts within the district are essential to the accomplishment of the purposes of Article XVI, Section 59, of the Texas Constitution. (b) It is hereby found by the legislature that all of the land and other property included in the boundaries of the ` district and in the boundaries of a subdistrict will be benefitted by the improvements, works, and projects that era to be provided by the district and by subdistricts pursuant to the s $$ssa I 1 v k powers confetred on the district and subdistricts by this Act, and that the district is created to serve a public use and benefit and any subdistrict created will serve a public use Ind will be for a public purpose. (c) The legislature specifically finds and declares that the requirements of Article %VI, Section 59(d) and Sect lcn 59(e), of the Texas Constitution, to the extent applicable, have been met and accomplished in due course, time, and order and that all notices required to be given relating to this act have been given, that all approvals required to be obtained pursuant thereto have been obtained, and that the legislature has the authority and power to enact this act, PART I THE DISTRICT SECTION Creation. (a) A conservation and reclamation district having the boundaries prescribed herein is hereby created and shall be known as the Upper Trinity Regional Mater District, (b) The district is a conservation and reclamation I district under Article kVI, Section St of the Texas j III i Constitution, and is a governmental agency, body corporate and politic, ■nd a political subdivision of the State. I (c) The boundaries of the district are coterminous with the duly established and existing boundaries of the county plus the entire incorporated limits of any contract member or participating member, a portion of whose incorporated limits is partially within the corporate limits of the county, + (d) An election confirming the creation of the district is not required. SECTION S. Management of District. The district shall be governed by a board of directors consisting of persons who f i are residents of the district; provided, however, that no 1 member of the board of directors shall be an elected official I~,ro I f I k 7 4 I of any governmental entity that has the authority to appoint a member of the board. The terms of office shall be four (4) years. Members of the board shall be appointed by the governing bodies of the participants and the contract members i in the manner set forth herein. The members of the board are subject to removal with or without cause by duly adopted action of the governing body of the entity that originally appointed 1 such member. The board shall have complete authority over the management and affairs of the district under this act. (b) The initial board shall consist of the persons who served as the initial board of directors of the Upper Trinity i ► Municipal Water A Authority, Inc., a nonprofit corporation organized under the laws of the State of Texas and those persons who are appointed by those entitles that become participating members or contract members within two years of the effective date of this act. Each such participating member at contract member shall appoint one member to the board and 41 the county shall appoint one member to the/board; provided, however, that the county may appoint one additional member to the board if the board determines that such appointment is in I the best interests of the district. Those entitles that contract with the district after two years from the effective date of this act shell be entitled to representation on the board only pursuant to the rules and procedures established by the board for the admission of board members is such rules and procedures may from time to time be amended. (c) Members of the board who ate appointed by the participating members shell be entitled to vote on all matters ' before the board. Members of the board who are appointed by contract members which are not participating members shall be E entitled to vote on all matters before the board except those matters that require a weighted vote, The board shall establish rules for the implementation of a system of weighted IE e,uo ( r . I I I votes concerning authorization of and financial commitments for capital projects which system shall be determined according to each entity's p+[tlcipatien in service and in projects of the district. (d) Except as provided herein, the initial board shall J serve staggered terms in accordance with the procedures to be l adopted by the initial board, provided that no initial board member shall be appointed for a term in excess of four years. Thereafter each board member shall be appointed to a four year term. Members of the board may serve consecutive terms. The members of the board that served on the board of directors of f the Upper Trinity kj ni pal WateraAuthorInc. shall have 'F the rights and privileges as members of the board appointed by ` participating members; provided, however, that such members shell not be entitled to a weighted vote on any matter coming t E I before the board and shall be entitled to vote as a 1 participating member without the right to a weighted vote. &The h` l bossdmembers that served on the board of directors of the Upper i Trinity MunScl a Water .Aut ority. Inc. shall serve an initial ~ term of two years from the effective date of this act. Thereafter, such persons are eligible to be appointed to the board by a contract member or a participating member. (e) Members of the board shall qualify to serve by taking the oath of office and furnishing evidence of their qualifications to serve on the board consistent with the requirements of this act prior to assuming the duties of a board member. of es-officio f -f) The board may establish a category membership to the board and may provide for the duties and responsibilities of the a:-oftleSo members in bylaws, rules, or regulations to be adopted by the board. SECTION 6. Board Procedures. (a) The board shall prepare and adopt the bylaws of the district, and shell hold I such regular, special, or emergency meetings at such times and -S- 01710 rA 4 J oa sach nays nr 48tes as are specified therein. (b) A majority of the members of the board constitutes a quorum for the transaction of business of the district, and approval of at least a majority of the members of the board present at a meeting is necessary for approval of any matter coming before the board, except where a weighted vote is required in ac:ordance with the rules of the board in which case a majority of the weighted vote of all board members eligible to vote is necessary for approval of any such matter coming before the bard. (c) The board shall provide in its bylaws for the method of execution for all contracts, the signing of checks and the handling of any other matters approved by the board. The board shall annually recognize and elect new officers. (d) The officers of the board shall consist of the president, one or more vice presidents, a secretary, and a treasurer. The board shall elect a president and any vice president from its members. The board may appoint a secretary, one or more assistant secretaries, a treasurer, an assistant r f treasurer, and such other officers as in the judgment of the board are necessary, provided that such officers are not i required to be members of the board. The president shall be i the chief executive officer of the district and shall preside over the meetings of the board. Any vice president shall perform all duties and exercise all powers conferred on the president when the president is absent or fails, refuses, or is I unable to act. The accretary of the board or one of the assistant secretaries shall be responsible for keeping the minutes of the meetings of the board and all official records I of the board and may certify as to the accuracy or aulhanticity of any actions, proceedings, minutes, or records of the board or of the district. The duties of the other officers may be provided in the bylaws of the district. I .S I ( 1 I 1 k e, i ie) Tne regular meeting place of the board shall be at such place as may be designated in the bylaws. ( f ) The board may appoint and employ all persons, firms, corporations, partnerships, and other entities deemed necessary by the board to conduct the affairs of the district, including but not limited to, engineers, attorneys, financial advisors, accountants, general manager, and other employees or consultants. (g) The board shall establish a customer advisory council composed of one representative from each customer I receiving service from the district. The members of the 1 customer advisory council shall be empowered to act as provided in the bylaws or other rules and regulations of the district, but such customer advisory council shall have no voting power on matters coming before the board. + (h) The board shall adopt a seal of the district and may 1 adopt bylaws to govern the matters deemed appropriate by the board provided such bylaws are consistent with this act and the laws of the State of Texas. SECTION 7, General Powers and Duties. (a) Subject to ' the specific provisions of this act, the districtAond its board i of directors have the rights, powers, privileges, authority and v functions granted, conferred, contemplated, and described in Article XV1, Section 59, of the Texas Constitutions, including I the rights, powers, privileges, authority ■nd functions II conferred by the general laws of the state applicable to 1 municipal utility districts operating under the applicable provisions of the Texas crater Code, togethsr with the additional rights, powers, privileges, authority and functions enumerated, described, expressed or implied by this act. {r/~ (b) The district shall not have the power to levy or collect ad valorem taxes. (c) if any general law is in conflict or inconsistent 1 I -7- a,,,o JI 1 I t 1 M ~ I i with tifis act. this act shall prevail. SECTION 8. Specific Powers and Duties of Authority. (a) The district has the additional rights, powers, privileges, authorities and functions provided by this Section. (b) The district may plan, lay out, purchase, construct, acquire, own, operate, maintain, repair and improve, inside or outside its boundaries, any works, improvements, facilities, plants, equipment and appliances, including any administrative properties and facilities, any permits, franchise, licenses or I contract or property rights, and any levees, drains, waterways, lakes, reservoirs, channels, conduits, sewers, dams, stormwater detention facilities or other similar facilities and improvements, whether for municipal, industrial, agricultural, I ~ I flood control, or related purposes, that are necessary, helpful or incidental to the exercise of any right, power, privilege, authority or function provided by this act, including the supplying of water for municipal, domestic, and industrial uses, and all other beneficial uses or controls; the k collection, treatment, processing, disposal of, and controlling ` of all domestic or industrial wastes whether in fluid, solid, or composite state; the gathering, conducting, diverting,& controlling and treating of local storm water or local harmful excesses within the boundaries of the district, irrigation, and the altering of land elevations within the boundaries of the district where it is needed, (c) The district may acquire, by purchase or by exercise of the power of eminent domain, which power is hereby granted I subject to the limitations imposed thereon by this subsection, 1J any land, easements, rights-of-way or other property or ` improvements within or without the boundaries of the district I~ 1 (including land above the probable high water line around any 1 reservoirs in which the district has an ownership or operational interest) which are needed or are appropriate to 8- rr„o r, 4 j 4 4 ca¢sY out the powers and functions of she district, as herein described and contemplated; provided, however, that the power of eminent domain shall be exercised in the manner and with the y privileges, rights and Lmmunities available under the laws of the state, including specifically the Texas Property Code. It is provided further that the district shall not exercise the power of eminent domain (i) against any property located within an incorporated city located in whole or in part within the county without the prior consent of the governing body of the city in whose jurisdiction the subject property is located, A (ii) against any property owned by the county, by any municipality or any agency or instrumentality thereof, orA(M) to acquire a waterworks system or a wastewater system that is owned by any municipality, or by private parties, or by any non-profit corporation. (d) The district is hereby vested with and shall have and may exercise the following additional rights, powers, privileges, authorities and functions[ to provide for the acquisition, construction, improvement, maintenance and 1 operation of wholesale water and wastewater systems and { treatment works necessary to provide service to its customers, V I and the acquisition, construction, improvement, and maintenance of any water supply, reservoir or interest therein necessary to fully implement the powers and duties of the district as provided in this act, (a) The district may elect to prooide water, wastewater, solid waste, of non-hazardous liquid waste services outside its service area, but the district may not be compelled to supply such services for use outside its service area except by order of the applicable state agency having jurisdiction over such 1 matters applied in accordance with applicable law. (f) The basic service area hex the primary right to water or wastewater treatment capacity and to water supply in I JI 1 I I 5 J each classification which :he district secures under permit from the applicable state agency having jurisdiction over such matters, (a) This act does not compel any customer or prospective customer to secure water or wastewater service from the district, except pursuant to contracts voluntarily executed. (h) This act does not alter any outstanding permit, J contract, or other obligation. (i) The district is hereby vested with and shall have and may exercise all the powers needed to establish, acquire, 1 1 operate and maintain a regional solid waste disposal system and a non-hazardous liquid waste disposal system. In connection j with said system, the distric: shall provide the services afforded by such system to (i) any user as determined by the i I board if the services are to be rendered within the basic 1 service area of the district, and (ii) any customer if the services are to be rendered outside the basic service area, j (j) The district is hereby empowered to establish. and enforce rules and regulations for the protection of water quality in and [lowing to or from the areas in or surrounding the lakes, reservoirs and other sources of water supply owned, operated, or controlled by the district for the prevention of i waste or the unauthorised use of water controlled by the district and for the regulation of privileges on any land, reservoir, or any easement owned or controlled by the ' district. Such rules and regulations shall be enacted and enforced in accordance with the procedures provided in Subchapter D of Chapter 51 of the Texas water Code, as amended, and shall be consistent with the applicable rules and regulations of any agency of the state having jurisdiction over such sources of water supply. (k) The district shall have the power to establish rates and charges to be assessed to Custome a of the district for 1 I -10- a.,fe Yk y f r 0. 1 1 l I eaca. sEr.ece rendered to such customers which rates and charges may be established by classes of customers, by project, or by area of service. (l) where bonds or other obligations of the district payable wholly from revenues are issued, it shall be the duty of the board to fis, and from time to time revise, rates of compensation for water sold and for wastewater or other services rendered by the district which will be sufficient to pay the expense of operating and maintaining the facilities of the district and to pay such obligations as they mature and the interest as it accrues and to maintain the reserve and other funds as provided to the resolution or order authorizing such obligations. (m) The district may adopt, enforce, and collect all necessary charges, fees, or rentals for providing any district facilities or service and may require a deposit for any service or facilities furnished, and the district may or may not provide that the deposit will beat interest, The district msy discontinue a facility or service to prevent an abuse or enforce payment of an unpaid charge, fee, or rental due to the 1 i district. All cities, public agencies, political subdivisions and any other entities that contract with the district are authorized to fix, charge, and collect fees, rates, charges, i rentals, and other amounts for any service or facilities provided pursuant to or in connection with any contract with the district, and to pledge such amounts sufficient to make all payments required under the contract. SECTION 9. bonds Notes, and Contracts of Authority, (a) The district is authorised to issue, sell and deliver its raven" bonds, rotas, revenue anticipation notes, bond anticipation notes, short term obligations, refunding bonds, or other obligations for any and all of its purposes, without an election and upon such terms as the beard shall I -11- a,r,o ]1 1 i I II J d r a ,a r 9 I r determine appropriate. Such obligations may be made payable from all or any part of the revenues of the district derived from any lawful source, including, but not limited to, any contract with any customer or user of the facilities owned or operated by the district under the provisions of this act or from the ownership and operation of any waterworks system, wastewater system, sewer system, solid waste disposal system, or non-hazardous liquid waste system, or any combination of 111' F such systems. Additionally. such obligations may be payable from and secured by liens on and pledges of all or any part of any of the revenues, income, or receipts derived by the I district from its ownership, operation, lease, or sale of any such property, buildings, structures, or facilities, including the proceeds or :avenues from contracts with any person, firm, 1 corporation, city, public agency, or other political I subdivision or entity. Such obligations may be issued to ` mature serially or otherwise within not to exceed 10 years from their date, and provision may be made for the subsequent issuance at additional parity obligations, or subordinate lien ~ I ~ obligations, under any terms or conditions that may be set forth in the resolution authorizing the issuance of the I obligations. Such obligations are and shall constitute negotiable instruments within the meaning and for all purposes of the 'texas Uniform Commercial Code, provided that the 1 ~ obligations shall be executed, and may be made redeemable prior to maturity, and may be issued in such form, denominations, and I manner, and under such terms, conditions, and details, and may be sold in such manner, at such price, and under such terms, I and said obligations shall De+r interest at such rates, all as 11 shall be determined and provided in the resolution authorizing the issuance of the obligations. If so provided in the authorizing resolution, the proceeds from the sale of the obligations may be used for paying interest an the obligations -12- auto 1 • I J i R u G i 4 4 Y r ?acing .h.-e period )f the acquisition or construction of any C facilities to be provided through the issuance of the I obligations, for paying expenses of operation and maintenance of facilities, for creating a reserve fund for the payment of the principal of and interest on the obligations, and for creating any other funds, and such proceeds .sy be placed on h time deposit or invested, until needed, all to the extent and in the manner provided in the authorizing resolution. The district may pledge all or any part of its revenues, income, or receipts from fees, rentals, rates, charges, and contract proceeds or payments to the payment of the obligations, including the payment of principal, interest, and any other ` amounts required or permitted in connection with the obligations. The pledged fees, rentals, rates, charges, proceeds or payments shall be fixed and collected in amounts that will be at least sufficient, together with any other pledged resources. to provide for the payment of expenses in f connection with the obligations, and operation, maintenance, and other expenses in connection with the aforesaid facilities. Said obligations may be additionally secured by mortgages or deeds of trust on any real property owned or to be acquired by the district, and by chattel mortgagee or liens on any personal property appurtenant to such real property) and the board may authorize the execution of trust indentures, mortgages, deeds of trust, or other Corms of encumbrances to evidence some. Also, the district may pledge to the payment of the obligations all or any part of any grant, donation, revenues, or income received or to be received from the United States government or any other public or private source, whether pursuant to an agreement or otherwise. All bonds, within the meaning of Article 717k-S, Vernon's Texas Civil j I Statutes, am amended, issued pursuant to this act, and the appropriate proceedings authorising their issuance shall be r„~o I L d A ' F siti%ttted to the Attorney General of the State of Texas for examination, It said bonds recite that they are secured by a pledge of revenues of any contract, a copy of such contract and the proceedings relating thereto shall be submitted to the attorney general, If he finds that such bonds have been authorized and any such contract has been made in accordance with law, he shall approve the bonds and any such contract, and thereupon the bonds shall be registered by the Comptroller of Public Accounts of the State of Texas., and after such approval and registration, such bonds and any such contract shall be incontestable in any court or other forum for any reason, and i shall be valid and binding obligations in accordance with their j terms for all purposes. The issuance of obligations by the district shall be in accordance with the provisions of Article 717q and Article 717k-6, Vernon's Annotated Texas Civil Statutes, as amended, is applicable. (b) The district is authorized to enter into any contracts with the United States of America, its agencies, any municipality, or other party, public, private, or non-profit, Considered necessary in the exercise of the powers and purposes of the district, The district is also authorized to enter into contracts for the acquisition, purchase, rental or leasing or operation of the water production, water supply, water filtration or purification, water supply facilities, or other j water or wastewater facilities which are owned or operated by i such contracting party. The district ii authorized to acquire water appropriation permits and other necessary permits directly from the appropriate agency of the state or from owna,rs of permits. Contracts requiring a payment of money by the district may be made payable from any source of funds, I general or specific, as may be determined by the board, SECTION 10, Contracts by Municipalities. Any and all municipalities, public agencies, political subdivisions, and -li- aas$$ ~II 1 1 any nos-grotit water supply corporation doing business wholly or partially within the district, and all subdistricts are expressly authorited to enter into any contracts with the district that are deemed appropriate by the respective governing bodies thereof. Such governing bodies are authorized to pledge to the payment of any such contracts any source of 1 revenues that may be available to the governing body, including the levy and collection of ad valorem taxes, it such municipality or subdistrict has the power to levy and collect I such taxes, subject only to the elections, if any, that are required by applicable law, to be held prior to the levy of ad valorem times. To the extent a governing body pledges funds to the payment of any such contract that are to be derived from its own water system or its wastewater system or its combined system, such payments shall constitute an operating expense of 1 I such system. SECTION 11, Depository. The board, by order or f resolution, shall designate one or mote bankc inside or outside ~ the district to serve as depository for the funds of the ' district, Except as herein provided, all funds of the district shall be deposited in the depository bank or banks. The funds of the disttlct may be invested as provided in the laws of the State of Texas for the investment of county funds and may be I invested in accordance with the provisions of the Public Funds Investment Act of 1957, as the some may be amended from time to time, The funds of the district shall be secured in the manner provided by the laws of the State of Texas for public funds. SECTION 12. Aeauiatory Power of Municipalities. This 1. act does not exempt the district or any subdistrict or any land situated within the district from the terms and provisions of any applicable ordinances, codes, resolutions, platting and toning requirements, rules or regulations of any municipality. i i ~ -15- eeeeo ~i J C a g ~ v l f PART II SUBDISTRICTS WITHIN AUTHORITY SECTION 13. Creation of Subdistricts. la) To provide for the orderly development of water, wastewater, and other services of the district within its boundaries and to prevent unnecessary duplication of facilities, the district is authorized to create subdistricts, A petition requesting the creation of subdistricts within the district may be presented to the board of the district. Any such petition must be signed by at least twenty-five (25) persons who own property within the boundaries of the proposed subdistrict, or such petition may be submitted by the governing body of a municipality when accompanied by a resolution or ordinance of such governing body authorizing the submission of such petition. Any such petition shall specify, at a minimum, a metes and bounds description of the boundaries of the proposed subdistrict, the general nature of the improvements to be acquired, constructed or otherwise implemented within. the subdistrict, the necessity and feasibility of such improvements, and the proposed method for funding such improvements. The petition shall state on its face whether the power to levy and collect ad valorem taxes within and solely within the subdistrict is requested. If a subdistrict is proposed within the corporate limits or extraterritorial jurisdiction of a municipality, the petition requesting the creation of the subdistrict shall be accompanied by an official action of the governing body of the municipality in whose jurisdiction the subdistrict is proposed approving the creation of such subdistrict. Should the governing body of th• ' municipality in whose jurisdiction the subdistrict is proposed object to the creation of much subdistrict, then the 1 subdistrict shall not be created within the incorporated limits or the extraterritorial jurisdiction of that municipality. i ~ -16• oi~~a y kb) The board shall set a date for a hearing on such petition not less than thirty (30) nor more than ninety (90) days after the day the petition is presented to the district. Notice of such hearing shall be given to each municipality within whose boundaries or e:trateLritorial jurisdiction the proposed subdistrict would be located. A copy of the notice of the hearing shall also be posted in three (3) public places located within the proposed subdistrict and at the county courthouse at least fourteen (la) days prior to the date set for the hearing. Notice of the hearing shall also be published 1 at least one (l) time in a newspaper of general circulation published in the county at least ten (10) days prior to the 1 date of tho hearing, (c) Any interested person may a I pPear at the hearing for i the purpose of supporting or opposing the creation of the subdistrict in accordance with the petition. The hearing shall be conducted in accordance with the procedures established by I the board. j (d) Attar the public hearing, the board shall enter an order making its findings in the official records of the district, It the board deems the creation of a subdistrict to l be fusible and practical and finds that the creation of the proposed subdistrict will be beneficial to the public, will benefit the residents of and the lend included in the proposed subdistrict and will contribute to the orderly growth and development of the regional water and wastewater systems within the district, then the board shall enter an order granting the petition and ordering the creation of the subdistrict in accordance with subsection (e) of this section. The board shall include its findings in the order which shall be filed in r li the official records of the district, The order shall define the boundaries of the subdistrict, but it does not have to include all of the land described in the petition if the board I -L7• J [p• Y I is its )ndgae%t determines that a modification or change in the subdistrict is necessary or beneficial to the public, if the board finds to the contrary, it shall enter an order dismissing the petition and the proposed subdistrict shall not be created, but a dismissal order shall be without prejudice to the ability to petition for the creation of a subdistrict covering the same territory at a later time. (e) it the board orders the creation of a subdistrict for which the power to levy and collect ad valorem taxes was not requested in the petition, the subdistrict shall be created and in existence from and after the date stated in the order of the district, without the necessity of a confirmation election within the boundaries of the subdistrict and any such • subdistrict shall not have the power to levy or collect ad valorem taxes. If the board enters an order granting a petition that seeks the power to levy and collect ad valorem taxes within the subdistrict, then the subdistrict shall not be created until and unless a confirmation election is called, conducted and hold by the district within the proposed I ! boundaries of the subdistrict and a majority of the qualified voters voting thereat confirm the creation of the subdistrict in accordance with the provisions of subsection (L) of this section. It the subdistrict is confirmed at such election, then the subdistrict shall have the power to levy and collect ad valorem taxes for the maintenance and operation of the subdistrict and for the payment of contracts of the districts provided that no such taxes shall be levied and collected until and unless previously voted at elections held in accordance with subsection (f). (L) A confirmation election, Then required by this section, and any election to authorise the levy and collection of ad valorem taxes within a subdistrict for maintenance { purposes shall be conducted in the manner required by Chapter -16- ~ errro R t Z 3 0 l ~ % ar 54. Zexas Water Code, for the levy and collection of maintenance taxes by municipal utility districts. Elections to levy taxes in support of contracts shall be held in the manner and with the effect provided by Chapter 54, Texas Water Code, for the issuance of bonds by municipal utility districts. The conflrmatien election required by this subsecti,,n, a maintenance tax election and an election authorising the levy of taxes to support bonds or contracts of the subdistrict may be combined into a single election, and any or all of such elections may be held on any day or date selected by the board. Each such election shall be called, convened and held by the board in accordance with the Texas Election Code and Chapter 54, Texas Water Code. (g) A subdistrict, if created in accordance with this section, shall be a conservation and reclamation district under Article XVI, Section 59 of the Texas Constitution with the limited powers granted in this section. The subdistrict constitutes a political subdivision and a corporate body and politic under the laws of this state. A subdistrict shall have the powers specified herein and shall have the same powers as the district, but subject to the same limitations, and provided i that a subdistrict shall not be authorised to provide services outside its boundaries, except that it may provide retail water and sewer services within its customer service area as I certificated by any applicable regulatory agency of the State of Texas. ' (h) if a subdistrict is crested as specified above, the subdistrict shall be governed by a board of supervisors consisting of at least five (5) supervisors, The initial board of supervisors shall be appointed by the district from among 'i the residents of the subdistrict. The district shall make such I` appointments for term„ specified in the order creating the subdistrict but not exceeding four (4) years from the date of -19- a~e~e t t appoinUnen:. Swch Initial supervisors are subject to removal, with or without cause, by action of the district. All vacancies shall be filled by the district, After the initial appointment of the board of supervisors and prior to the I issuance of any bonds, notes, or other obligations of the 1 subdistrict, members of the board of supervisors shall be elected in the manner provided by the laws of the State of Texas applicable to municipal utility districts. Notice and the conducting of such election shall be in accordance with such laws. (i) The subdistrict shall have all the powers provided elsewhere in this act and shall have ownership of and general management powers over the affairs, works and projects of the subdistrict subject to the provisions of any contracts with the district. However, the issuance of bonds by the subdistrict shall not be effective until such issuance is approved by official action of the district. (j) In those subdistricts having the power to levy and collect ad valorem taxes, the tax rates shall be established by 4 the board of supervisors on the basis of annual budgets ~ established at the same time and in the some manner as for counties, and toles shall be levied by the board of supervisors. (k) The members of the board of supervisors shall 3 receive no compensation for serving to a supervisor but may be reimbursed for actual expenses incurred on behalf of the subdistrict or in the discharge of their official duties. (1) Subdistricts created in accordance with this act may only become participating members of the district. SECTION 11, Conversion of Water-Supply Corporation to Subdistticts. (a) upon the adoption of a resolution by the board of directors of any non-profit water supply Corporation doing business wholly or partially within the boundaries of the district and requesting such action, the board may consider the -20- ee~io i 4 ~ z 77 r1 w , question of converting such non-profit water supply corporation to a sutdistrict by following the same procedures otherwise required by section 13 of this act and subsection (b) below. (b) The resolution of the board of directors required above shall include, in addition to the information specified In section 13(6) for petitions to be filed with the board of the district, a plan of conversion, including, among others, the proposed method for the transfer of assets and the assumption of debts to the subdistrict. 1 (c) If determined to be appropriate by the board, the district, at the request of the board of directors of such j non-profit water supply corporation, may establish s board of supervisors in greater number than specified herein for other such subdistricts. (d) Notwithstanding any provision of this act to the contrary, any water supply corporation that was a member of the Denton County Steering Committee in connection with the Denton County Hater and wastewater Study Regional Master Plan for 2010 I may become either a contract member or a participating member in accordance with the provisions of this act. The SECTION 35. Meetings ?f ~oacd of Supa[vl r board of supervisors of a subdistrict shell hold regular, special or emergency meetings at those times and on those dates the board determines. \ SECTION 16. Subdistrict Officer Merino plan . The board of supervisors of each subdistrict shall designate a place within the subdistrict as the regular office and meeting place, except that the regular meeting place may be at the regular meeting place of the district if approved by order of the district. SECTION 17, Collecticn of Taxes Within Subdistriqil• (a) The county tax assessor-collector of the county shall maintain the tai rolls and collect taxes for any I -21- e,er6 u suodistrict located in the unincorporated area of the county and having taxing power in the same manner as for taxes for the county. The tax assessor-collector for the other subdistricts shall be as selected and shall perform the duties determined by the board of supervisors. (b) Relmburse^ent of the costs of the tax assessor- collector for such services shall be paid by the subdistrict. (c) Taxes and other revenues collected within a subdistrict shall be used solely for purposes within the subdistrict, except that the costs of administration of the affairs of a subdistrict may be paid to the district in j accordance with contracts between the district and the subdistricts. All taxes and revenues of a subdistrict as collected shall be deposited as public funds into accounts of the subdistrict approved by the district. All accounts of a subdistrict may be audited by the district. All such funds may i be deposited or invested as permitted for public funds. PART III MISCELLANEOUS SECTION 18. Creation Expenses. The district is authorized to pay alL costs and expenses incurred in the creation and organization of the district, including but not limited to the reimbursement of costs and expenses incurred by the Denton County Steering Committee in the preparation of the i Denton County Water and Wastewater Study Regional Master Plan for 2010, and the Upper Trinity k2!IL cipal Water► Authority, Inc., in the development and implementation of such study. The district is authorized to succeed to and assume the rights, privileges, duties and responsibilities, including contractual obligations, incurred by the Upper Trinity AMunleipal Water A Authority, Inc., a nonprotit corporation created to serve on in interim basis pending the creation of the district. ~ E o~i~a , t II~ VVV t 1 i i l t. 1 SECTIS" 19. Tax Exemption. The accomplishment of the purposes stated in this act being for the benefit of the people of the state and for the improvement for their properties and industries, the district and the subdistricts in carrying out the purposes of this act will be performing an essential public function under the Constitution and shall not be required to pay any tax or assessment on any property or project awned, operated, leased, or controlled by the district or any part f thereof, and the bonds or other obligations issued hereunder and their transfer and the income therefrom, including the r 1 profits made on the sale thereof, shall at all times be free f from taxation within the state. i + SECTION 20. Severability. If any provision of this act or its application to any person or circumstance is held 1 invalid, the invalidity does not affect other provision or f` application of this act that can be given effect without the invalid provision or application, and to this and the , provisions of this act are declared to be severable. The terms and provisions of this act are to be construed liberally to effectuate the purposes, powers, rights, functions, and authorities herein set furth. l i SECTION 21. Notice. The legislature specifically finds and declares that the requirements of Article XVI, Section 59(d) and Section 59(e) of the Texas Constitution, to i the extent applicable, have been met and accomplished in due course, time and order and that all notice required to be given relating to this act has been given, that all approvals required to be obtained pursuant thereto have been obtained, and that the legislature has the authority and power to enact this act. SECTION 22. Emer enc . The importance of this legislation and the crowded condition of the calerdar. in both houses create an emergency and an imperative public necessity -23- o~l,a I 1 z that the constitutional rule requiring bills to be read on three several days in each house be suspended, and this rule is hereby suspended, and that this act take effect and be in force from and after its passage, and it is so enacted. I I i i E I aaiia { ' I I i 1 ~L [ V T S. M LAW OFFICES MCCALL, PARKHURST 6 HORTON MOON H MCCALL ?IF NORTH HARWOOD JOHN 0 MCCALL ►.VL { NORTON n1u•4{tI ►CTLR y TART NINTH FLOOR ■ICNANO C ►OPTER MILLAAD .CAIRN UR{! IpJf O OHAIILE{RO{O[H DALLAS, TEXAS 78101.65P37 11,04 TwOHAO 1. ►O RHA MAT• Cult NC! L CPOW[ KENNETH It ILTE thPHO.I •4110-loco 403 low M .AOL MA RTIM Tµ ICD.[A L . \L10f]\ -y JO w r. W IA NILR JP 1{{O ONE AMto'CAN CENTER .LAN H. UINOR JOHN W RVOOTICH AL7TI N, TIME 1{l cJ l]A THOMAS K SPJROLON December 28, 1980 TN V.O.[ ■N tlo-J O0\ L t 64 920u RA. Iu .oo ONE RIVlRWALK PLACE w AROLO T Iu NAOAN SAN ANTONIO TCUS iooC6,]60] OANNI S CVLVtR Th P.O.I H! po1100 ALIPLO D J0-%S0" •VCa"t0 i. NO. IDA. 041. _ 1~ t 1 Mr. R. E. Nelson Executive Director, Dept. of Utilities flEC 3 City of Denton Municipal Building Vf cf "0,014 Denton, TX 76201 CITY M!'4AI;'L{S GFFlC Re: Upper Trinity Regional Water District Dear Bob: j ~ On December 23, 1988, i read your letter of December 22, 1988, concerning the proposed captioned District. Due to the Christmas holidays and the fact that I have planned a trip over the New Year holidays, a quick review of the November 18, 1988, r draft of the proposed legislation and the questions posed by Jane Hopkins is all I have been able to manage to date. This letter contains my initial comments, and if further study or I analysis is required, I will be glad to resume the study later j next week. with reference to the technical legality and validity of I the proposed legislation, there might be a problem with the boundaries of the proposed District insofar as territory outside Denton County is concerned. There is a legislative finding of benefits with respect to all territory within the District, which includes the entire county. However, the boundaries of the District also can include territory outside the County if it is part of an incorporated entity located partially in the County. Such entities are not named and i cannot be known at this time. Thus a finding of benefits to unknown areas seems to be questionable. In somewhat similar instances we have provided for hearings on benefits with j respect to the inclusion of undefined areas. It is noted that Section 8(c) of the proposed Act author- izes the District to condemn any property within or without its boundaries, excepting only property owned by "the county, any I { ~ I EXHIBIL2' V . municipality or any agency or instrumentality thereof", and any "waterworks system or a wastewater system that is owned by any municipality, or by private parties, or by any non profit c property orporation". Many other types of political subdivisions own language, which and it would is likely subject that such entities condemnation might under object. Also, Section 8(e) gives the District broad extraterritorial powers which could put it in conflict with other political subdivisions outside its service area. Another technical point is that Section 9(a) requires all "bonds" as defined in Article 717k-8 to be approved by the Attorney General and registered by the Comptroller of Public Accounts. The Article 717k-8 definition of "bonds" includes short term obligations such as commercial paper and other obligations that may be issued pursuant to Vernon's Article 717q. This would result in a conflict with the use of Article 717q under circumstances where approval and registration of obligations is not practicable. Part II of the proposed Act authorizes the Board of Directors of the District to create subdistricts. In effect this authorizes the creation of the substantial equivalents of municipal utility districts, basically in accordance with the procedures in existing general laws, except that the Board of ' Directors acts in the place of the Texas Water Commission. Whether or not the Texas Water Commission would oppose such procedure remains to be seen. In the past it has been extreme- I ly jealous of its powers. J The foregoing comments relate only to a few technicalities +I which could be taken care of easily, and to the possible opposition to certain provisions by parties outside the Denton County area. Whether or not the City of Denton should support, oppose, or ignore the proposed legislation is another matter altogether. Obviously, this decision should be based on the city Council's determination of what is best for the City. Frankly, I an not familiar with the problems, if any, that the - proposed legislation would solve for the City. I assume that the City staff as well as the Council members have assessed this matter thoroughly, and will make a decision based on practical as well as political grounds. However, since my firm and I have acted as bond counsel for almost all of the major regional water supply systems, s regional wastewater treatment systems, and solid waste dispaial systems in the State of Texas, I do feel qualified to make a few observations concerning regional operations. I i I i Insofar as a City is concerned, the first question must be "what is the problem to be solved"? The second is "can a regional entity solve the problem better than the City by itself"? The third is "what control will the City have over the operation if it joins a regional system"? It is obvious that a number of very successful regional systems of various kinds presently are functioning. You are aware that the Trinity River Authority operates several separate and unrelated multi-city regional wastewater systems serving various cities in Tarrant, Dallas, Ellis, and Denton Counties, including such Cities as Fort Worth, Dallas, and about 20 other cities, including Carrollton, at its Central Regional Wastewater Treatment Plant. The TRA also is in the process of construct- ing its Denton Creek Regional Wastewater System to serve parts of Fort Worth, Roanoke, Haslet, Southlake, and the Lake Turner Municipal Utility District No. 1 in Tarrant and Denton Coun- ties. If the City of Denton has a wastewater disposal problem that it cannot solve by itself, it may be that a regional agency could help. However, the proposed District would not be the only solution. The TRA certainly has the experience, staff, and legal power to help in any practical way. The same is true with respect to solid waste disposal facilities. If the City of Denton's problem is obtaining an additional future water supply, a different situation exists. With the advent of Lake Ray Roberts I had been under the impression that the City's foreseeable needs would be met. If this is not true, then the situation becomes much more complex and serious. Additional reservoir sites will be difficult to find and competition for water will become much greater in the future. Of course, we know that multi-city regional systems can help in some, but not all, instances. We see the Dallas Area Rapid Transit System (DART) as an example of a regional entity which doesn't seem to be working, and perhaps is disintegrating, in large part, I believe, because its Board of Directors is too large, and the interests of its constituent cities are too diverse, with the result that cohesive and practical plans and projects have not been forthcoming, even with the expenditure of enormous amounts of money. on the other hand, the North Texas Municipal Water District and the Tarrant County Water Control and Improvement District Number One operate regional water supply systems very successfully in this general area, j and a number of other similar operations around the State are quite successful. It must be emphasized, however, that in each of these operations, the question of control of the Board of Directors has been a major stumbling block. The principal problems with respect to multi-city regional systems with member cities have been in connection with membership on the Board of Directors and the resulting control. Large city vs. small city has been the most serious problem. The actual Ii I I I I i i i 1A 1 rights of the parties to regional systems are determined by the applicable statutes and also the specific contracts between each city and its regional district. However, it is obvious that nothing can be done without the approval of a majority of J the Board of Directors of the regional district, and the control of such Board becomes vitally important to each member city. As to the proposed District, it should be emphasized that the City of Denton is nowhere required to become a "contracting member" or a "participating member". In other words, the City could elect not to have anything to do with the District if it is created. However, if it does, within two years, choose to become a "contracting member" it will be entitled to appoint only one member to the Board of Directors. Even if the City becomes a "participating member", it would have only one Direc- tor. we do not know how many members there would be on the Board, but presumably it would be a fairly large number. In any event the City would have no actual control over the planning or implementation of projects, or the expenses in- curred in connection therewith. There can be no "participating member" until the District actually has a project to partici- pate in. It is left up to the Board of Directors to write by-laws and rules relating to "weighted votes" for "participat- ing members", but these could be changed, and again the City could not have any real control of where the District was going, or whether the city's interests would be served. To become a "contracting member" the City would havo to agree to 1 pay a pro rata share of the cost of administering the District, but the term "pro rata" is not defined and presumably would be determined by the Board of Directors. in conclusion, the City must determine whether or not it needs a regional system of any kind, and whether it needs it now or at a later date when the City's future needs are better analyzed and known. If the City's needs are known in this respect it can be determined in a rational .manner whether or not the proposed District would be the best solution, whether or not existing laws are adequate, or whether or not new legislation designed to fit the city's exact needs is neces- sary. 1 Please advise me how to proceed. d sincerely yours, Paul B. Horton cc: Lloyd V. Harrell City Manager i I I t : t a December 13, 198a CITY COUNCIL WORK SESSION TO: bIAYOR AND MEh1BE:dS Or THE CITY COUNCU_ FROM- Lloyd V. Harrell, City Manager 4 RE: Upper Trinity Regional Water District 41 RECOMMENDATION: r No action is requested at this time. Exhibit II is a Resolution that has been circulated to all of the Denton County Water Committee member ' cities for support of the proposed legislation. This item will be submitted to the City Council at their December 20th meeting for action. SUMMARY/BACKGROUND: ` For the past two and one-half years, the City of Denton has been I f working with the Denton County Water Steering Committee in an effort to address the present and long term water and wastewater needs of the various cities and water systems in the Denton County Area. This effort resulted in a comprehensive water study and a recommendation that a regional water agency Is needed to provide raw water, treated water and wastewater treatment services for many of the cities in the area. it The City of Denton and Lewisville subsequently created the non-profit Upper Trinity Municipal Water Authorlty, and the Denton County Yrater Steering Committee charged it with beginning to implement some of the study's recommendations Including development of legislation that would create a regional water district. The draft legislation has been developed (see Exhibit i) and the 31 member Denton County Steering ! Committee has approved the draft legislation and authorized it to be submitted to the Texas legislature. The Steering Committee also i recommended that the name of the entity be changed to the 'Upper Trinity Regional Water District". This name helps emphasize the "regional" nature of the entity and avoids confusion with other "river authorities" in North Texas. 6225U:1 EXHIBIT,41? 8 a I 5 ' This Act wizi create a conservation and reclamation district under the terms of Article XVI, Section 59 of the Texas Constitution, that will be able to help secure long term raw water supplies, build and operate water plants, water transmission lines, wastewater plants, wastewater trunk lines, lift stations, landfills, solid waste bulk collection systems, non-hazardous wastes (such as grease trap oils, etc.), and storm water control systems. Membership in the entity will be voluntary and established via contract. The entity will have no taxing powers. Everyone who becomes a member has a seat on the Board of Directors. Board members would be appointed by the respective City Councils, but would not be members of the City Council. Board members' terms are four years. In order to maintain e transition continuity, the Board members that the City of Denton and Lewisville appointed to the board of the existing Upper Trinity Municipal Plater Authority, Inc., would continue for two years on the Board of the new entity. { Actions of the Board would be by a majority of the members present, except where a weighted vote is required, such as for initiating a capital j project, wherein a majority of the weighted vote Board member will be required. There would be two types of members, a "Participant Member" and a "Contract Member". Contract Members are cities (or other retail utilities, such as water districts), that contract with the entity, within two years of It's formation, that then preserves the right to become a "Participant Member" anytime within the next ten years. A Contract Member would agree to pay pro rate costs associated with the continued regional water/ wastewater planning activities. "Participating Members" are cities (or other entitles), that contract for specific water/wastewater, or other services. The fees for these services would i be based on actual debt service and 06M costs and be allocated on a "postage stamp bests', i.e., everybody pays the some average cost, Page 2 ~ k x but would be divided according to the region, i.e., North and Northwest Denton County, South and Southwest Denton County, and East Denton County. The entity will have the normal powers of a utility, except it will not serve retail utility service, and will not have powers of eminent domain over facilities of retail utilities, or property of the counties or cities. The entity may issue revenue bonds pledged by the revenues of the sale of wholesale water and wastewater services or other authorized services, which are backed by contracts with a participating member. Bond terms 1 are limited to 49 years. Recognizing that the main beneficiary of this entity in the early years may be some of the rural areas and smaller communities in the County, the legislation allows the creation of sub-districts that could be formed I ` in those areas and communities for the purpose of financing, installing, , and operating the water distribution and wastewater collection systems. Such sub-districts would require a confirmation election by the people of the proposed sub-district if an ad valorem tax is proposed to help finance k the sub-district infrastructure. The sub-district would have a board of I supervisors that would manage the affairs of the sub-districts. The role I envision Denton playing, is one as a "Contract" member initially, and perhaps as a "Participant" member later. This entity will help many of the smaller communities get a wholesale water supply and wastewater service, thereby, rellevirg Denton of a regional responsibility to provide this service. In the future, Denton may went to become a "Participant", and have the entity assist in securing future raw water supplies. With the assistance of a large number of communities in the region, Denton will be able to share in a greater bargaining power for water rights, reservoir I Page 3 I I J 5 1. r construction, and other water supply issues. Also, a regionel entity will help in deveioping wastewater collection and treatment systems that will help keep our lakes and streams environmentally safe. Initially, there is a possibility that this entity would participate with Denton on our Ray Roberts Water Treatment Plant, which could substantially reduce our costs because of the economies of scale that could be realized by constructing a 16-20 mgd plant vs the planned i0 mgd plant. The PUB raised several good issues at their 11/16/68 meeting and these issues were addressed at their 11/23/88 meeting. The following is the response to the PUB's 1111618E concerns: The Public Utilities Board asked for an analysis of the advantages and disadvantages to the City of Denton of an agency such as the Upper Trinity Regional Water District. In addition, the Board asked that specific concerns with the proposed legislation drafted to implement this authority be provided. l Advantages to the City of Denton 1. Would provide a mechanism to more easily acquire future raw water supply for the City. i 2. Would provide a regional entity that would have greater Influence with State and local governments In securing water rights for the region and thus, for Denton, in the future. 3. Would promote the development of wastewater facilities In the County, thus helping to protect our two water supply reservoirs. 4. Would make It possible for smaller communities to "buy Into" our facilities providing an opportunity for economy of scale savings and thus, i have a favorable effect on our utility rates. I j 5. Would provide a vehicle to construct a waste-to-energy plant if such was deemed desirable by the City sometime In the future. ~ I 6. Would be another vehicle to promote regional cooperation. 7. Would help to avoid crisis type decision making which might force Denton to provide water/wastewater services to other jurisdictions. Page 4 LJ f E g, iiould provide a vehicle to hake basin-wide drainage improvements should such be desired by the community in the future, and to assist in addressing stormwater quality monitoring and treatment if the Environmental Protection Agency deems necessary in the future. ould 9. have Would i spend spend s the amount of the ' many small jur sdictionsllin thef County he to dealing with these professioneliedrninistretive staff of the Agency. discussions could occur with the matters. Instead, Disadvantages to the City of Denton 1. Would make it much easier for small Lawns, rural water districts, etc., to provide more sophisticated utility service than they could provide on their own. The result of this capacity could be much more rapid development area and of the own shift growth i omlthetC tysof Dentonlto thessmaller towns in rlural atreasPuletion p. YJOUId create an agency which may not be politically responsive, i.e., Tax appraisal Districts. If the legislation allows creation of sub-districts within the City without City approval, utility improvements could be financed with general obligation bonds that msy cause increases in property taxes end/or higher E utility rates, resulting in adverse public reaction for the city. l 4. Might result in policy making being dominated by small towns because of the representation procedure. 5. Participant members may become "locked in" to the regional entity for wholesale water and wastewater services. The oabout items found wsthinf the oervationsi possible questions and responses Page l-Definitions is a member). limits of all B. Basic rervicc area- and contract members (County within participating d. Does that mean that all of the unincorporated area of the County is part of the District? A. Yes. All of Denton County is within the service area of the District y plus any Mt of a city located in another coun.y which is also in Denton County. Service can also be provided outside of Denton County, but any city located totally outside of Denton County cannot be a member. D. Contract member- "pay e pro rata share of the cost of operating the Authority". p. What is pro- rats? How does it relate to "equal votes for all"? A. Pro rate costs have not been defined yet, but are Page 5 I I C envisioned to be costs associated with the administration and direct costs of regional planning efforts (not costs of administration associated with proviaing a service such as water treatment). These costs are envisioned to be shared on an "ante-up fee" basis plus perhaps "h¢"/customer which is similar to how we have funded the Damon County Regional Water Study. Voting: If a city is a "contract" member, they will have a vote on the Board; however, on capital projects, where a "participant" member has signed a contract for services from such capital project, there will be a "weighted" vote. Exact details of this are planned to be worked out in the By-Laws of the District. Page 4-Section IVs C. Boundaries-county wide "plus"; U. (1) Why must others have part of their boundaries within the County to become of member of the Authority? (2) Might not others within the drainage basin want to join the Authority, ana why should they be prohibited from so doing? A. (1) Cities in the County: See response in "B" above. fE (2) The Steering Committee felt that they needed to place a boundary on the District and a limit on the number of potential members of the Board. If the district boundaries for membership s were left open, the size of the Board could become very large. j Page 4- Section Vs "No member of the Board shell be an elected official of any governmental entity having the authority to appoint a member of the Board". 1 Commentt This provision helps to insure that the agency will be even less politically responsive than one would expect from a special district. A. The Steering Committee specifically wanted to avold the Board becoming "political" and possibly ma'dng decisions based on factors other than good sound economics and prudent stewardship of the water resources and the environment of the region. Comments f' Everyone appoints one member to the Board. A. This allows all members, contract or participant, to have a voice in the decisions of the District, even at the risk of having a very large board. 1 s ~ j Page 6 C. The Board establishes rules for implementation of a system of weighted votes for specific projects. What would prevent the Board from determining that everyone would have equal votes irrespective of the amount which they put into a particular project? In other words, the procedure for assigning weighted votes should be spewed out. A. The Steering Committee decided not to tie this down by legislation which would require an act of the legislature to change. Also, the Steering Committee felt it would be best to leave this Issue to the parties who will become board members. It was anticipated that no one at the present time knows who will be the larger or smaller participants and those roles may reverse from project to projectl therefore, the methodology that is determined in the future would, hopefully, be structured so that it is as equitable as possible. An example of this concept is perhaps the City of Denton's involvement in the Texas Municipal Power Pool. In this pool relationship, no project or major policy is adopted unless it is unanimous. The concept has always been that no one should be injured by their membership in the Pool and the concept has worked very well. I I t Page 7 i F. Board members may receive up to $50 per meeting plus expenses is provided. This remuneration is more than that received by council members within the County. Commenti i This is similar to other districts and authorities in the State of Texas. This is a permissive provision and it may or may not be Implemented. Page 12 E. Authority could provide service outside the service area (no votes for these entitles.) Comments See paragraph "B" above. Page 18- Section Xs - Any municipality ...etc., doing business wholly or partially within the Authority could enter into contracts for services. o. What about customers outside of the boundaries of the Authority and County? Could there not be such entitles? 4 A. See Paragraph "B" above. Page 7 Page 20- Part 11, Section X1111 Subdistricts: Authority can create subdistricts; notice must be given to each municipality in the subdistrict. Comment: This section has been changed to require cities' approval. - It appears that areas within the subdistricts do not have to be geograp`Ically connected. Subdistricts can be authorized taxing power after a vote of the people 'h within such district. Comment: h MUO's not favored by the City Council, and everyone connected d!d not want Lakeview to be able to provide utility services with taxes j because that would be contrary to the way that utility services are Ih , provided to all of the remaining taxpayers within the City. - Local governments have no approval right in connection with the creation of a subdistrict within their jurisdictions. Commentr This section has been changed to require cities' approval. 1 Page 20. Section XN: t Existing water supply corporation can convert to a subdistrict. 0. Is this good? It might give the corporation taxing powers which they do not have now. A. It i$ envisioned that they cen do this only with approval of the cities. Thl-i also allows them to become members. Otherwise, they cannot be members due to IRS regulation relating to use of tax exempt bonds. Page 20. Section XIXs - Creation expenses- authority to pay all the cost Incurred in creation of the Authority, etc. 0. (l) Does this mean that It will pay entities beck for expenses Incurred up to the present in creating the Authority? (2) Since County paid a major portion of the costs, would they 1 expect to be tepeid? A. Past Expenses: Pest expenses that have been funded by the cities are not envisioned to be repaid, but the legislation would allow this. J i However, some legal expenses have been Incurred, and it is anticipated that such expenses will be paid by the District after Its j creation. Page 8 i i l i ` ?.lr. Hu h A er Cit Councilman and member of the Citizens Task Force 1 addressed the PUB witi. the followin comments at that meeting. I appreciate the concerns these people have. They are the same concerns that we had when working on these things. One of the things we have to consider is that, in the final analysis, community we are all in this together. We have e responsibility. You pay money now or you pay money later. 1 em positively convinced that this whole system is the way to help resolve the problems all of us have with wastewater ---1 treatment, water treatment, etc. This is the most feasibly appropriate and most economical. There may be some political problems -there always are. But this is the most practical, the most economical and has the best chance to meet the needs for the future. Somewhere down the line, all of us will be affected by what noes on in Krum and Sanger. Fifty years from now, it will make an even bigger impact. On balance, I think this is the best solution to these long range water plans. f They (Lewisville) have been directly involved from day one and are very much In favor of this agency. I am hearing an opinion that Denton doesn't have any responsibility to teig Just 69 but I think we do. I think the state is going to sea Dallas has had a responsibility to take care of us and as time goes on, we are going to have more and more responsibility for outlying communities around Denton. In any case, we can't just think about ourselves. We are too Interwoven among one another." a recommended the At the conclusion of the PUB's l 1/23/BB meeting, the PUB ee District and City Council approval of the Upper Trinity Regional associated legislation but noted certain issues that the Council may went to offer as amendments prior to legislative approval. f i Page 4 r These items are. 1. The recommendation that the cities' voting rights be a direct relationship to the amount of money we are expected to provide. 2. The recommendation that the City of Denton's liability for bonds be clarified. 3. The recommendation that board members may be City Council members, and that each member's council have prior approval In terms of issuance of bonds and capital expenditures. These Issues and several of the issues raised In the PUB'S 11/16/68 meeting have been reviewed with the members of the Upper Trinity Regional Water Authority and the Citizens Task Force. These groups have acknowledged these concerns and have commented on these issues or recommended that the draft legislation be emended as follows; ' 1. Voting rights and limits to financial contribution by "contract" members. The groups, I.e., UTlv1WA Board and Citizens' Task Force, expressed a I very strong position that for "contract" members wherein their main participation on the Board will relate to regional water/wastewater planning issues, that a "one-member"- "one vote" is the desired manner of voting rights in order to maintain harmony with all members of the region. This philosophy has served the 31 member steering committee well and has proven that if a "plan" Is submitted that does not generally have full support of the group, that the "plan" needs to be altered. Therefore, they continue to support the "one-member"="one vote" voting rights. The groups have recommended that a limit be placed on the contribution that a contract member must pay. A figure of $1 per capita was suggested. 2. Clariflcatlon of the Cities' liability for bonds be clarified. The City of Denton would have no obligation for any revenue bonds issued unless the City became a "participant member. Upon becoming a participant member, the cities' financial obligation will be spelled out in the contract between the City and the District. 1 3. A concern that a participant member becomes "locked into" the District forever. I f There was a general consensus that this Issue be clariffed'so that if a member signs up for a service from the District, such as two million gallon per day treated water, that this Is the limit of the member's obligation, I.e., if when the member needs to increase their treated water supply, they may choose to do so with an amendment to the contract for greater volumes, or they can put In their own water plant. 1 i Page 10 The group expressed concern on changes to the following areas: 1. bonds requiring member city approval: The concern is that with perhaps I0-15 members, this provision would be extremely cumbersome. The group felt that by having each member emend its contract with the District when they needed additional service, this provides the checks and balances on the issuance of bonds and thus, obligations of the members. 2. Elected officials constituting the board. The group (with the most %ocel parties being council members from some of the communities) expressed that the board should be appointed by the governing bodies of the members, rather then being elected at large, or appointed by the County Commissioners or the Governor and should not be elected officials of the members governing body. The thoughts of the group are that with this process of board selection, the member cities could best select persona for the board who are vitally Interested in the environmental and water/wastewater issues of the entire region, who have the time to dedicate to the District and who are not encumbered by a tremendous toad of local city Issues that may cloud their objectivity to regional water issues. Respe fully, LloyZdVd.2r e ll City Manager PREPARED/APPR ',ED 6Ys R. L. Ne son, P.E~-- £xecutive Director of Utilities 4 Exhibit Is Proposed Legislation Us Proposed Resolution r MINUTES PUBLIC UTILITIES BOARD November 230 1988 7:00 AM Civil Defense Room MEMBERS PRESENT: Roland Laney, Chairman, Mark Chew, Robert LaForte, John Thompson, Kenneth Frady, Mark Chew, Lloyd Harrell, R. E. Nelson STAFF PRESENT: David Ham, Ron Meyerson, Legal Department, Lloyd McClendon, Gay Recina OTHERS PRESENT: Jim Alexander, Denton City Council, Hugh Ayer, Denton City Council Member representing the Citizens Task Force on the Denton County Regional Water Study, Terry Tate, Denton Record Chronicle ABSENT: Ernie Tullos, (Exru;ed) I 1. CALL TO ORDER. Chairman Laney brought the meeting to order at 7:10 AM. 2. CONS10£R LEGISLATION FOR UPPER TRINITY REGIONAL WATER D STRICT. A general discussion of this Item and the City Manager's and Executive Director of Utilities' letter of November 22, 1988, follows: r I Item 07. LaForte asked if it Is necessary that Denton provide wastewater services for the smeller surrounding cities. Nelson explained that In the mid-1970's, Denton was designated as a "regional wastewater treatment system" based on Denton's 1975 Facility Plan. Denton received 75% EPA funding for a new wastewater treatment plant. The facility plan included the cities of Corinth, Lake Dallas, Hickory Creek, Argyle, and all of our service territory from Denton to the Lake, north to Krum, and just this side of Sanger. Based on this history, Denton may have some obligation to serve these entities. By utilizing the Upper Trinity Regional Water District to contract for wastewater treatment services for the smelter surrounding entities, It is possible to get the smaller cities to share in future costs of wastewater treatment plants that may be required to satisfy the government mandates. The same holds true with any water plants that may be required. LaForte indicated that the real flaw with the legislation as proposed is in the voting and decision making process. He felt there should be a relationship between how much the City pays and how much voice It has. EXHIBIT r~ PUB Minutes Page 2 Chew Indicated he had a problem with the Board of the proposed Agency having complete authority and Indicated he could not draw a correlation 1 between this agency and problems such as protection of water supply 1 reservoirs. Nelson explained that the State and County do not have good control over I package sewer plants and septic tank systems which create environmental ii problems for local reservoirs and that this Regional Water District could provide wastewater treatment systems that are properly built and operated, thereby reducing this environmental threat. I Chew indicated there are problems with getting various governments and organizarions together on regulation of this kind. Thompson stated that without State regulation, the quality of water is progressively deteriorating. I LaForte inquired if the Agency would still develop even if Denton did not join. Nelson indicated that yes, the need existed for such a regional system for the surrounding communities and that this Agency would probably continue to develop. LaForte referred the Board to Item ID, asking for an explanation of the ; "ante-up fee". I Nelson explained that when the initial funding of the Denton County Water Supply Study was set up, all members joining had to "ante-up" $1000, $2000 or $5000, depending on the city's size. There was also an additional fee of 10¢ per capita. LaForte again indicated that a "weighted" vote would be more acceptable to him, plus the removal of the wording "...complete authority". Laney agreed with this stating that the By-Laws of the proposed agency would need to address these items. Chew asked about the "disadvantages" as set forth In the memo, most particularly, "..the shifting of population growth to smeller towns..", "..creating an agency which may not be politically responsible... could create high tax and utility retes", and 05, "...participating members may become locked into the wholesale member for water/wastewater services", further stating he did not went to get "locked in" to another TMPA. He asked if there was a way out of the agreement. Harrell explained that until Denton buys Into a project, we can drop out anytime. i I I r~ i V PUB Minutes Page 3 Nelson further added that if Denton becomes a "contract" member, Denton can drop out,, but once Denton becomes a "participating" member, we cannot drop out, but we are not "locked into" a "full requirements" contract, as he understands the legislation. Nelson gave examples of J other agencies, i.e., Tarrant County Water District and the North Texas I Municipal Water District made up of several different cities in Nottheast Dallas County. Thompson asked if the cities could develop water systems outside of the + Agency's authority. 1 Nelson expressed that he understands that they could. Meyerson stated there is nothing In the legislation that precludes Denton from operating I Its own system. Harrell commented that he felt we needed to think about what role the City of Denton is going to play In providing water/ wastewater in the future. Staff sees the role of the City of Denton as being a primary one and for this reason, encouraged development of the proposed legislation. Overall, major concerns of the Board aces 1. Too much authority on the Board of th:t proposed Agency. 2. Denton needs a way out in order to avoid getting locked In as it is perceived we are with TMPA. 3. That City Council members should be able to hold a position on the Board of the proposed Agency. i 4. The concern of sub-districts needs to be addressed. 5. The power to Issue bonds perhaps should rest with the City Councils. Harrell stated that an amendment to the legislation now protects Denton in-so-far as item 84 is concerned; i.e., the cities would have power over sub-districts. Nelson explained that the Agency will be an independent utility agency authorized to operate as a water/wastewater wholesaler. Hugh Ayer, City Council member, and member of the citizens task force working on these issues, then addressed the Board. "I appreciate the concerns these people have. They are the same concerns that we had when working on these things. One of the things we have to consider, Is that in the final analysis, we are all in this together. We have a community responsibility. You pay i I ~ i i PUB r,linutes I Page 4 I money now, or you pay money later. I am positively convinced that this whole regulatory system is the way to help resolve the problems all of us have with wastewater treatment, water treatment, etc. This Is the most feasibly appropriate and most economical. There may be some political problems, there always ere. But this is the most practical, the most economical, and has the best thence to meet the needs for the future. Somewhere down the line, all of us will be effected _ by what goes on in Krurn and Sanger. Fifty years from now, it will make an even bigger impact. On balance, I think this Is the best solution to these long range water plans." I i Ayer then asked that Bob Nelson describe what may develop with the building of the new water treatment plant. Nelson stated that Denton Is planning to build a 10 mgd water treatment plant at Lake Ray Roberts. The cost is estimated to be $7,000,000 plus $5 I to $6,000,000 more for the pipeline, pump and storage facilities to get the water to the Denton system. I The City of Lewisville Is in the process of planning to build another water plant. If Denton could Increase this 10 MGD water plant to a 20 MGD Ii water plant, the cost Increase would be only $J million more to double the plant capacity by sharing the costs with another entity. If the proposed Regional Agency could become a partner in behalf of the smaller communities for this additional 10 mgd, the citizens of Denton could see their cost of water plant capacity being reduced because of economies of scale. This Is the kind of thing the regional agency could do--bring together communities to work together to solve common water and wastewater Issues In a more cost effective manner. Nelson further commented that he, the manager of the Agency and representatives of Lewisville met with the manager of the City of Commerce. Commerce had, In the pest, asked for a part of Cooper Reservoir. Right now, Commerce no longer needs that water from Cooper Reservoir and they are trying to find a market for it. The cost of this water Is 6¢ to 70/1000 gallons compared to the Ray Roberts cost of water of 40¢ to 500/1000. Denton cannot get access to that water by Itself, but through a regional agency, Denton could get that low cost water. These are the types of economies of scale that a regional agency could provide. , I E I PUB f•linutes Page 5 Long term, Denton will use the Agency for raw water supply and get the strength that is possible from twenty communities working together for water rights. Some day, the State Is going to have to address who has the water rignts to wastewater effluent. Presently, this wastewater becomes State water when it Is returned to the stream. The State then reallocates t;iis water. Denton should be using its own wastewater resources in the future, but it will take political clout to accomplish this goal. Thompson stated that in twenty years Denton will be looking for a new - source of water rights. It is necessary to begin now to get these rights. LeFcrte asked if Lewisville has been involved in this process. Ayer explained they have been directly Involved from the beginning and are ! very much in favor of this agency. i Ayer further stated, i "I am hearing an opinion that Denton doesn't have any responsibility for our neighbors, and I think we do. I think the State Is going to see to it. Just as Dallas has had a responsibility to take care of us end as time goes on, we are going to have more and more responsibility for outlying communities around Denton. In any case, we can't just think about ourselves. We are too Interwoven among one another." Nelson advised the Board that there are other ways to select the Board of this agency: 1. With a Board elected by the public in the region. 2, The Governor appoints members to the Board. However, the Steering Committee felt it beat that each entity should select it'a ovan board member. LaForte stated that the Board should pass the item on to the City Council, pointing out two items; 1) Financial disparity to voting strength Is Inequitable end, 2) voting relative to population is also inequitable. Chew asked that Staff Include the Board's reservation to the City Council about the concern about legal Issues of bonds, revenues, etc. LaForte further asked that our City Attorney review the mnteriai. I I ` t s i : PUB Minutes Page 6 Thompson stated that he would desire a 12 r,)ember governing board and the vote on Only those members that were participating in that project projects, etc. would vote on it. Nelson explained that bonds will be secured only by the entity being provided services. Harrell suggested the board generally recommend the Item to the City Council and reserve special amendments to the legislation before it is passed. Motioni to recomm to LaF made a motion ` UppertTrinity Regional water Districrt andhasso iat Council d legislationvrelserving j special amendments to the legislation prior to passage involvings 1. 1 he recommendation that the amount of money we are expected contract into bears 9 direct relationship to the size of the City. ~ Second by Chew, plust 2. The recommendation that the City of Uenton's liability for bonds be 1 clarified, end Thomps that ation rec mbers 3, be CityoCo ncll membe s since ire terms of is trance of bonds and be Ctty approval. capital expenditures, the City Ccuncli should have prior Laney coiled for a vote. All eyes, no nays, motion carried. Meeting adjourned approximately 905 AM. I 6214Ui1-6 I~ 4*1 I I I F I 1 9-1 1- lee ~ i iI E '1 -j I-LI-IJET-T7-T-1 1 +4 111144444 111111 1 JA a-TI -T "I I 144 MEN i i .,Vv CITY OF DENTON CITY COUNCIL MINUTES DECEMBER 13, 1988 The Council convened into the Work Session at 5:30 p.m in the Civil Defense Room. PRESENT: Mayor Stephens: Mayor Pro Tem Hopkins) Council Members Alexander, Ayer, Boyd, Gorton and Mr,Adams. ABSENT: None 1. The Council held a discussion regarding legislation to create a Regional Water and Wastewater System for Denton County. Bob Nelson, Executive Director for Utilities, reviewed the history of Denton's policy goals regarding requests from other cities for water. He presented Dallas' policy and region concerns. Nelson reviewed Denton's concept of a regional agency's purpuse and goals. Primary goal for the agency would be to provide raw water, treated water, wastewater, pipelines, solid waste and storm water treatment. Austin Adams, Chairman-Citizens Task Force, stated that a regional agency was needed for towns not having a long range Manning department for direction. Adams felt that the smaller communities needed the agency without great financial involvement and the larger communities needed to take on responsibility for their requirements. Tom Taylor, Interim General Manager, presented regional goals in the area of water supply, wastewater treatment, regulatory, environ.rsental, ground water, economy, orderly planning. He reviewed the issues impacting these goals such as bias/fears/politics, other regional systems, rate problems, and uncertainty. Taylor reviewed the provisions for the System including boundaries, membership, make-up of the Board and voting power. Feeling of the Council was that another work session would be necessary in order to devote enough time for discussion of concerns. 2. The Council received a report regarding Neighborhood Improvement/Planning Programs and a proposed plan for Community Oriented Policing. t David Ellison, Assistant to the City Manager, reviewed the project presenting potential advantages, concerns/problems, a proposed timetable and recommendations for Denton. Due to time constraints, the remainder of the presentation was held for the regular session. 1 1 k F r r ; E` i I I I City of Denton City Council Minutes I December 13, 1988 ' Page 2 3• The Council was to hold a discussion on a resolution by the City of Denton, Texas, authorizing the City Manager to sign and submit to the Texas Historical Commission a request for Certified Local Government Status, in accordance with the National Historic Preservation Act of 1966, and the amendments to the act approved in 1980, as well as rules arid procedures for certified local governments published by the Texas Historical Commission. This item was hold for consideration at the regular session. 4. The Council did not meet in Executive Session during the Work Session. The Council convened into the Regular Session at 7;OU p.m, in E the Council Chambers. PRESENT: Mayor Stephens, Mayor Pro Tem :lopkinsr Council Members Alexander, Ayer, Boyd, Gorton and McAdams, ABSENT; None The Mayor presented a proclamation regarding National Drunk and Drugged Driving Awareness Fortnight. 1. The Council considered approval of the minutes of the Regular Meetings of November 1 and 15, 1988, the Joint meeting of November 14, 1988, and the Work Session of November 22, 1988. McAdmas motioned, Hopkins seconded to approve the minutes as presented. Motion carried unanimously, 2. Public Hearings A. The Council was to hold a public hearing on a detailed plan in an existing Planned Development District (PD-6). Petitioner was Pep Boys of California, Inc, The property was located on I-35E in San Jacinto Plaza Shopping Cencer adjacent to Wolie's Nursery. If approved, the property may be utilized for an automobile service center and automobile parts store. Z-88-016. (Planning and Zoning commission recommended denia-IT. Frank Robbins, Executive Director for Planning and Community ' Development, stated that the Planning Department had received a written request from the petitioner requesting a postponement of the public hearing until the January 3, 1989 City Council meeting. As the January 3 meeting would be a work session only, it was requested that the public hearing be postponed until January 17, 1989. The petitioner had requested the ` postponement so as to allow them more time to work with the neighborhood. i C f P k City of Denton City Council Minutes December 13, 1988 Page 3 of Alexander motiod, Hopkins seconded to postpone consideration unanimously. B. The Council held a public hearing and considered adoption of an ordinance amending Planned Development-6 and approving a detailed plan The npr p5.7 erty acres. locatedtialong the Siepiela Interests, north side of wilderness Street, the east side of Timberidge Street, and the west side of Kenwood Street. The property was part of the Mary Austin Survey, Abstract No. 4, and the R. H. Hopkins Survey, Abstract No. 1694, and was included in The Woodlands of Township II Addition. If the detailed plan were approved, the property may be developed into single family lots ` with 6,800 square feet. Z-88-021. (Planning and Zoning Commission recommended approval). The Mayor opened the public hearing. s Lynn Meyer, representing Siepiela Inte:os•s, Inc., stated that the request was for a reduction in oinsity at the site. He reviewed the site plan indicating that lager homes would be built on larger lots which would reduce the number of lots. Meyer showed Council a number of slides Taken of the area showing the type of home proposed to be built on the lots. Robert Brown questioned drainage in the area. He lived at the with the number of building problems sites flooding. He cwas concerned which that had would adversely affect drainage in the area and add to an already difficult problem. Meyer replied that the ultimate situation would be improved. Ms. Billy Harkins stated that she was in favor of the petition. No one spoke in opposition. The Mayor closed the public hearing. deczoning rease for the Urban Cecile Carson, Planner, She stated that the density Qthe past lot size increased. A drainage channel would be built behind lots to modify the current drainage situation. The Planning and Zoning Commission had recommended approval of the petition at its meeting of September 28, 1988. i i h City of Denton City Council Minuses December 13, 1988 Page 4 The following ordinance was considered: NO, 68-191 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR THE APPROVAL OF AN AMENDED DETAILED PLAN FOR 5,7 ACRES OF LAND LOCATED WITHIN PD-6, ALONG THE NORTH SIDE OF WILDERNESS STREET THE NORTH SIDE OF TIMBERRIDGE STREET, AND THE WEST SIDE OF KEN400D STREET, AS MORE ?ARTICULARLY DESCRIBED HEREIN) PROVIDING FOR A PEN%L^'Y IN THE MAXIMUM AMOUNT OF 2,000.00 FOR VIOLATIONS THEREOF) AND PROVIDING FOR AN EFFECTIVE DATE. V Hopkins motioned, Alexander seconded to adopt the ordinance. On roll vote, McAdams "aye,' Alexander 'aye,' Hopkins 'aye,' Gorton 'aye,' Ayer "aye," Boyd 'aye,' and Mayor Stepnens 'aye.' Motion carried unanimously. C. The Council held a public hearing and considered E a petition of the City of Denton requesting a variance of Article 4.09 of the City of Denton Subdivision and Land Development regulations on Woodrow Lane. This property was further described as a portion of Lot 2 of the Adkisson Addition at Woodrow Lane south of E. McKinney. Article 4.09 required the extension of a sewer line across the full width of the development lot in accordance with the Master Sewer Plan for the City of Denton. The Petitioner was requesting a variance from this extension requirement. V_-47. (planning and Zoning Commission recommended approval). The Mayor opened the public hearing. No one spoke in favcr. No one spoke in opposition. The Mayor closed the public hearing. Elizabeth Evans, Planning Administrator, stated that this was a request from the City of Denton for a variance of the Subdivision Regulatf.ons at the Animal Control Center. The j Subdivision Regulations required the extension of a sewer line across the full frontage of the property. As there was no one { to be served by the extension and it was not necessary for proper development to occur, the City was requesting a variance. The '.Tanning and Zoning Commission felt that all three criteria hsd been met to grant the variance. l I 1 1 r City of Denton City Council Minutes December 13, 1988 Page 5 McAdams motioned, Alexander seconded to adopt the ordinance based on the criteria presented by the Planning and Zoning Commission. On roll vote, McAdams "aye," Alexander "aye," Hopkins "aye," Gorton 'aye," Ayer "aye,' Boyd 'aye,' and Mayor Stephens "aye." Motion carried unanimously. 3. The Council received a report from Gene Douglas and Mr. and Mrs. Tillman Uland regarding the City of Denton operating defensive driving classes in free competition with their programs. Gene Douglas stated that he owned one of the defensive driving schools in the City of Denton. It had come to his attention that one of the defensive driving schools was being operated by the City of Denton. After the City published ads in the phone book last summer, his business dropped off to nearly nothing. He had to discontinue his Monday-Tuesday classes and might be forced to discontinue his whole business, He thought that NTSU j had to lay off one instructor and TWU had discontinued its I classes. He felt that there were adequate private schools to do the same job and just as cheaply and well as the City did. He felt that socialized business was necessary in order to provide the public with a service. This could not be compared to operating a public school and there was a fee charged and a profit made. He felt that the net result of the City's j operation was to cause less service to the public elsewhere rather than to increase the service to the community. The City had access to free classroom space, City personnel already on salary for other ?urposes were being used to supervise the program, the City did not have to pay a tax. The City was teaching outside the City of Denton such as in Decatur. He felt that the City was using deceptive advertising with the white pages listing in which defensive driving was listed immediately under the Municipal Court Clerk's Office. He had researched the idea of the school being a 'utility'. He found that a city may not operate an enterprise unless it was a utility. The City may operate services and if a service was a utility, it would fall under the regulatory agency of the PUC or Railroad Commission. Tillman Uland referred to a report he presented to Council. He started his own defensive driving school after the City of Denton 's school went downhill. He stated that the City's school originally was started to fill in a need as the City did i not have any defensive driving courses in Denton. Now there were enough schools to fulfill that need and the City's program was no longer needed. He felt that there was a conflict of interest with the City running a defensive driving school. He felt that the City was using improper ads in the phone book as they did not indicate that the City was running the schools. He asked if the cost of the ads was a budget item that the council approved. He also brought up the white pages ad with defensive I I 1 is q- City of Denton City Council Minutes December 131 1988 Page 6 driving noted under the "Municipal Court Clerk He felt that there had been a law violated in that the City did not use its full licensed name in the phone ads. Mayor Stephens asked Mr. Douglas if all of the schools were the same price. Douglas stated that he had to reduce his price due to the competition from the City. He felt that all of the other schools were charging $2U, the same as the City. He stated that the City could not do the service any cheaper or better than any one else, Lloyd Harrell, City Manager, stated that the city's defensive driving school was not anything new, as the school had been in operation for 16 years, The school was a good program and had been recognized by the National Safety Council. All of the expenses for the program were paid out of the fund established by the program and was able to return to the City's General Fund approximately $30,000 per year. That money went to support other public safety programs such as police and fire protection. He felt that the problem eras a philosophical question of whether it was an appropriate function for the City of Denton to be involved in. If the Council had a problem with the City involvement, perhaps the best time to discuss continuation of the program would be during the budget process as the money raised from the program would be forfeitted and other sources would have to be found for that lost money, Consensus of the Council was to take this matter up during the next budget process. i Item 5.M. was moved ahead in the agenda order. 5, Ordinances M. The Council considered adoption of an ordinance directing the issuance of notice of sale of General Obligation Bonds. Frank Medanich, First Southwest, stated that this was an order directing issuance of the notice of sale which needed to be published in the local newspaper and the Bond Buyer. I I John McGrane, Executive Director for Finance, stated that this would be for the third year of a five year program. The following ordinance was considered: I i t k City of Denton City Council Minutes December 13, 1988 Page 7 NO. 88-204 AN ORDINANCE DIRECTING THE ISSUANCE OF NOTICE OF SALE OF GENERAL OBLIGATION BONDS. McAdams motioned, Alexander t On roll v~ee, Ayer seconded to adopt Gorton •a " he ordinance, "aye," Alexander •a e " "aye." Motion c1 Hopkins "aye," aBoyd 'aye," and Mayor Stephens Item 3, on arried Unanimously. the Work Session and Item 6,D, were combined for consideration. 6. Resolutions by th D. The Council considered approval of a resolution sign and submit to the Texas Historical Commission a for Certified Local Government Status g Y Manager to National Historic Preservation Act of # 19660 and ttje In accordance with uthe to the act approved in 1980, as well for certified local as rules and amendments Historical Commission, governments published by the procedures Texas Elizabeth Evans, Planning Administrator matching grant program that was funded by stated that this was a of Interior uthronds tugho the the filtered the f Historiocalcalth Commisslonartment ceTretxiasfied l the state of Texas. This resolution would allow the cit hick status but not government cities in apply for is ` was needed before for funds at this time. The stYatus application could be made for the funds Mike Cochran, Chairman-Historic Landmark Commission that this was a good program for the City and presented advantages for the City, + stated ~ The following resolution was considered: RESOLUTION NO. R88-075 A RESOLUTION BY THE CITY OF DENTON, TEXAS, AUTHORIZING THE CITY MANAGER TO SIGN AND SUBMIT COMMISSION A REQUEST FORCERTIFIED LOCAL 1 GOVERNI•;ENT STATUS, IN ACCORDANCE WITH THE NATIONAL I HISTORIC PRESERVATION ACT OF 1966, AND THE AMENDMENTS j i TO THE ACT APPROVED IN 1980, AS WELL AS RULES PROCEDURES FOR CERTIFIED LOCAL GOVERNMENTS PUBLISHED 13Y THE TEXAS HISTORICAL COMMISSION! AND PROVIDING AND EFFECTIVE DATE. I 1 { 1 O w City of Denton city council Minutes December 131 1988 Page 8 McAdams motioned, Alexander seconded to approve the resolution. On roll vote, McAdams 'aye," Alexander 'aye," Hopkins 'aye," Gorton 'aye,' Ayer 'aye," Boyd "aye,' and hayor Stephens 'aye.' Motion carried unanimously. The Council returned to the regular agenda order. 4. Consent Agenda Mayor Pro Tem Hopkins requested Item 4.A.1. be pulled for special consideration. McAdams motioned, Hopkins seconded to approve the Consent Agenda with the exception of Item 4.A,1. Motion carried unanimously. A. Bids and Purchase Orders: 2. Bid 09914 - 30 gal, plastic refuse bags B. Tax Refunds 1. Consider approval of a tax refund for Charles Wilson/Michael Wilson (Account 08904-0U621) 2. Consider approval of a tax refund for Charles Wilson/Michael Wilson. (Account 08904-00622) C. Plats and Replats 1. Consider approval of preliminary and final replat of Lots 1-23 to Lots 1R-16R and Lots 42-43 to Lots 42R-51R, Block At The Woodlands of Township II, (Planning and Zoning Commission recommended approval) 2. Consider making a recommendation on preliminary replat of Lot 2A of the Adkisson Addition. (Planning and Zoning Commission h ¢ recommended approval) Item 4.A.1. was considered. Mayor Pro Tem Hopkins questioned wiry the low bid was not taken. City Manager Harrell stated that the base bid was rejected because it did not meet the specification by the City. r City of Denton City Courcil Minutes December 13, 1983 page 9 Mayor Stephens asked how it did not meet the specifications. John Marshall, Purchasing Agent, stated the specifications had requested a Lees carpet of a certain weave and weight which was a brand that everyone had equal opportunity to obtain. The bid from Smitty's Floor Coverinq was for a Philadelphia carpet. If the carpet had been the surge weight, the same weave, etc., it would have been considered but what was bid did not meet the specifications in the weight and weave. It did have the same type of back but not the weight and the weave. Thus the bid was disallowed and the next low bid was taken. McAdams motioned, Gorton seconded to approve Consent Agenda 1 Item 4.A.1. Motioned carried unanimously. 5. Ordinances A. The Council considered adoption of an ordinance accepting competitive bids and providing for the award of contracts for the purchase of materials, equipment, supplies or services. i The following ordinance was considered: N0. 88-192 AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWARDING A CONTRACT FOR THE; PURCHASE OF MATERIALS, EQUIPMENT, SUPPLIES OR SERVICES: PROVIDING FOR THE EXPENDITURE OF + FUNDS THEREFORE: AND PROVIDING FOR AN EFFECTIVE DATE. f McAdams motioned, Gorton seconded to adopt the ordinance. On roll vote, McAdams 'aye," Alexander 'aye,' Hopkins 'aye," Gorton 'aye,' Ayer 'aye,' Boyd 'aye,' and mayor Stephens •aye.' Motion carried unanimously. B. The Council considered adoption of an ordinance authorizing the expenditure of funds by the City of Denton for the Power annual afee nd for membership the in the Public funds therefore. (The Public Utilities Board recommended approval). The following ordinance was considered: 1 I I J City of Denton C4ty council ;Minutes December 13, 1988 Page 10 NO, 88-193 AN ORDINANCE AUTHORIZING THE EXPENDITURE OF FUNDS BY THE CITY OF DENTON FOR THE ANNUAL .SERVICE FEE FOR MEMBERSHIP IN THE AMERICAN PUBLIC POWER ASSOCIATION A14D APPROVING THE EX?ENDITURE OF FUNDS THEREFORE] AND PROVIDING FOR AN EFFECTIVE DATE. McAdams motioned, Alexander seconded to adopt the ordinance. On roll vote, McAdams •aye," Alexander 'aye,' Hopkins 'aye," Gorton "aye,' Ayer 'aye,' Boyd 'aye,' and Mayor Stephens - 1 'aye.' Motion carried unanimously. C. The Council considered adoption of an ordinance establishing classified positions in the Fire Department of the City of Denton, Texas; providing for the number of persons authorized for each classified position; and repealing all ordinances and resolutions in conflict herewith. M John Cook, Fire Chief, stated that Chapter 143 of the Civil ServicE Law required that higher classification pay be paid to employees who acted in temporary positions. Currently based on cne number of hours that vacation, holida; i,nd compensatory time that were generated by members of the Fire Department at the level of Captain, three people c.•uld be promoted to the i F II position of Captain to act when the other people were out without having to pay higher classification pay. This would result in an even balance in the budget but would provide better management control. The following ordinance was considered: N0. 88-194 AN ORDINANCE ESTABLISHING CLASSIFIED POSITIONS IN THE FIRE DEPARTMENT Of THE CITY OF DENTON, TEXAS) PROVIDING FOR THE NUMBER OF PERSONS AUTHORIZED FOR EACH CLASSIFIED POSITIONS REPEALING ALL ORDINANCES AND RESOLUTIONS IN CONFLICT HEREWITH; AND DECLARING AN EFFECTIVE DATE, McAdams motioned, Alexander seconded to adopt the ordinance. On roll vote, McAdams "aye," Alexander 'aye," Hopkins 'aye," q Gorton 'aye,' Ayer 'aye,' Boyd 'aye,' and Mayor Stephens aye. Motion carried unanimously. i i 1, S I f x City of Denton City Council Minutes December 13, 1988 Page 11 D. The Council considered adoption of an ordinance authorizing and allowing under the act governing the Texas Municipal Retirement System, 'Updated Credits' in said system for service performed by qualifying members of such system who presently are in the employment of the City of Denton; providing for increased prior and current service annuities for retirees and beneficiaries of deceased retirees of the City. Tom Klinck, Director of Personnel, stated that the update of the service credits had been approved with the 1988-89 budget ` and this ordinance would implement that update. The following ordinance was considered: NO. 88-195 II j AN ORDINANCE AUTHORIZING AND ALLOWING, UNDER THE ACT GOVERNING THE TEXAS MUNICIPAL RETIREMENT SYSTEM, 'UPDATED SERVICE CREDITS" IN SAID SYSTEM FOR SERVICE ` PERFORMED BY QUALIFYING MEMBERS OF SUCH SYSTEM WHO I PRESENTLY ARE IN THE EMPLOYMENT OF THE CITY G: DENTONJ PROVIDING FOR INCREASED PRIOR AND CURRENT SERVICE ANNUITIES FOR RETIREES AND BENEFICIARIES OF DECEASED RETIREES OF THE CITY; AND ESTABLISHING AN EFFECTIVE DATE. McAdams motioned, Hopkins seconded to adopt the ordinance. On roll vote, McAdams 'aye,' Alexander "aye," Hopkins 'aye,' Gorton 'aye,' Ayer 'aye," Boyd "aye,' and Mayor Stephens 'aye.' Motion carried unanimously. E. The Council considered adoption of an ordinance approving a contract for Flexible Benefits/Section 125 administration to Employee Resource Administration Corporation, The following ordinance was considered: NO. 88-196 AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT WITH EMPLOYEE RESOURCES ADMINISTRATION CORPORATION FOR ADMINISTRATIVE SERVICES RELATIVE TO 1! THE CITY'S PROPOSED FLEXIBLE BENT-ITS PLAN1 1 AUTHORIZING THE EXPENDITURE OF FUNDS ZHEREFORi AND { PROVIDING AN EFFECTIVE DATE. I i E k r ~ F 'i r I i. City of Denton City Council Minutes December 131 1988 ! Page 12 Alexander motioned, McAdams seconded to adopt the ordinance. On roll vote, McAdams 'aye,' Alexander "aye,' Hopkins 'aye,' Gorton "aye," Ayer 'aye,' Boyd 'aye,' and Mayor Stephens 'aye.' Motion carried unanimously. F. The Council considered adoption of an ordinance approving a funding agreement between the City of Denton and Services Program for Aging Needs (SPAN) relating to Handihop service; authorizing the Mayor to execute the agreement; and approving the expenditure of funds therefor. The following ordinance was considered: - NO. 88-197 AN ORDINANCE APPROVING A FUNDING AGREEMENT BETWEEN THE CITY OF DENTON AND SERVICES PROGRAM FOR AGING NEEDS (SPAN) RELATING TO HANDIHOP SERVICE; AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT; APPROVING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN l EFFECTIVE DATE. McAdams motioned, Alexander seconded to adopt the ordinance. On roll vote, McAdams 'aye,' Alexander "aye,' Hopkins 'aye,' Gorton 'ayr_," Ayer 'aye,' Boyd "aye,' and Mayor Stephens 'aye.' Motion carried unanimously. 1. G. The Council considered adoption of an ordinance approving a funding agreement between theheCity yayf Denton oexecute the Fred Moore Child Care Center; authorizing the agreement; and approving the expenditure of funds therefor. The following ordinance was considered: NO. 88-198 AN ORDINANCE APPROVING A FUNDING AGREEMENT BETWEEN THE CITY OF DENTON AND FRED MOORE CHILD CARE CENTER; AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT; APPROVING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE. Alexander motioned, Hopkins seconded to adopt the ordinance. On roll vote, McAdams 'ayu,' Alexander 'aye,' Hopkins 'aye,' Gorton 'aye," Ayer 'aye,' Boyd "aye,' and Mayor Stephens "aye." Motion carried unanimously. H. The Council considered adoption of an ordinance approving a funding agreement between the City of Denton and Denton County Friends of the Family; authorizing the Mayor to execute the agreement; and approving the expenditure of funds therefor. { J s II[r1 Z fi I • t i 1 City of Denton City Council Minutes December 13, 1988 Page 13 I Tne following ordinance was considered: NO. 88-199 AN ORDINANCE APPROVING A FUNDING AGREEMENT BETWEEN THE CITY OF DENTON AND DENTON COUNTY FRIENDS OF THE FAMILYE AUTHORIZING 'iHE MAYOR i0 EXECUTE THE AGREEMENT! APPROVING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE. Alexander motioned, Hopkins seconded to adopt the ordinance. - On roll vote, McAdams 'aye,' Alexander 'aye,' Hopkins 'aye," Gorton 'aye,' Ayer 'aye," Boyd "aye," and Mayor Stephens 'aye.' Motion carried unanimously. 1. The Council considered adoption of an ordinance approving a funding agreement between the City of Denton and j i Denton City-County Day Nursery; authorizing the Mayor to execute tha agreement; and approving the expenditure of funds therefor. The following ordinance was considered: j NO. 88-200 i AN ORDINANCE APPROVING A FUNDING AGREEMENT BETWEEN THE CITY OF DENTON AND DENTON CITY-COUNTY DAY NURSERYI AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENTI APPROVING THE EXPENDITURE OF FUNDS THEREFORE AND PROVIDING FOR AN EFFECTIVE DATE. Ayer motioned, Alexander seconded to adopt the ordinance. On roll vote, McAdams 'aye,' Alexander 'aye,' Hopkins 'aye,' Gorton 'aye,' Ayer "aye," Boyd 'aye,' and Mayor Stephens 'aye.' Motion carried unanimously. J. The Council considered adoption of an ordinance approving an agreement between the City of Denton and the Denton County League of United Latin American Citizens Council { No. 04366E authorizing the Mayor to execute an agreement entitled 'English As A Second Language"r and approving the expenditure of funds therefor. The following ordinance was considered: I I 1 I ~f I I sF City of Denton City Council :Minutes , December 13, 198? Page 14 NO. 88-201 AN ORDINANCE APPROVING AN AGREEMENT BETWEEN THE CITY OF DENTON AND THE DENTON COUNTY LEAGUE OF UNITED LATIN AMERICAN CITIZENS COUNCIL N0. 04366; AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT ENTITLED 'ENGLISH AS A SECOND LANGUAGE", APPROVING THE EXPENDITURE OF FUNDS THEREFORE; AND PROVIDING FOR AN EFFECTIVE DATE. Alexander motioned, Ayer seconded to adopt the ordinance. On roll vote, McAdams 'aye," Alexander 'aye,' Hopkins 'aye," Gorton "aye,' Ayer 'aye,' Boyd "aye,' and mayor Stephens "aye." Motion carried unanimously. approving X.an aThe greement Council considered dethe City of Dof an enton ordinance the toAmerican executeCitizens ~MayorLatin n agreement Denton No. 04366;~tyautLeague of hor zing United entitled 'Educational Assistance Program'; and approving the expenditure of funds therefor. The following ordinance was considered: NO. 88-202 AN ORDINANCE APPROVING AN AGREEMENT BETWEEN THE CITY i OF DENTON AND THE DENTON COUNTY LEAGUE OF UNITED LATIN AMERICAN CITIZENS COUNCIL NO. 04366; AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT ENTITLED PENDITUREONOF ASSISTANCE PROGRAM NO APPROVING THE FUNDS THEREFORE; AND PROVIDING FOR AN EFFECTIVE DATE. Alexander motioned, Ayer seconded to adopt the ordinance. On roll vote, McAdams 'aye,' Alexander "aye,' Hopkins "aye,' Gorton 'aye,' Ayer "aye,' Boyd 'aye," and Mayor Stephens "aye.' Motion carried unanimously. L. The Council considered adoption of an ordinance approving a funding agreement between the City of Denton and execute s the Program AandgappNeeds; r ving atheo expenditure of Mayor I therefor. The following ordinance was considered: NO. 86-203 r AN ORDINANCE APPROVING A FUNDING AGREEMENT BETWEEN THE CITY OF DENTON AND SERVICES PROGRAM FOR AGING NEEDS; AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT; APPROVING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE. f I ~ 1 1 I f 'v u i ( I City of Denton City Council Minutes December 13, 1563 Page 15 M. This item was considered earlier in the agenda. N. The Council considered adoption of an ordinance of the City of Denton, Texas, providing for the correction of the erroneous designation of 9.2 acres of land as a Single-family (SF-10) zoning district as contained in Ordinance No. 73-25 and No. 73-27, by amending those ordinances to provide the correct designation of the 9.2 acre tract as a Planned Development (PD) zoning district for General Retail use; and providing for an effective date. Cecile Carson, Urban Planner, stated that staff believed the intent of the Council in 1973 was to zone the property at the corner of Teasley and Teasley to be PD-Retail with the remaining portion to be single family. The minutes were changed to reflect the intent of the Council but the ordinance was not changed. TLe following ordinance was considered: NO. 88-105 I AN URDINANCE OF THE CITY OF DENTON, TEXAS, PROVIDING FOR THE CORRECTION OF THE ERRONEOUS DESIGNATION OF 9.2 ACRES OF LAND AS SINGLE FAMILY (SF-10) ZONING DISTRICT AS CONTAINED IN ORDINANCE NO. 73-25 AND NO. 73-27, BY AMENDING THOSE ORDINANCES TO PRO7IDE FOR THE CORRECT DESIGNATION OF THE 9.2 ACRE TRACT AS A PLANNED DEVELOPMENT (PD) ZONING DISTRICT FOR GENERAL RETAIL USE; AND PROVIDING FOR AN EFFECTIVE DATE. i Ayer motioned, McAdams seconded to adopt the ordinance. On roll vote, McAdams 'aye,' Alexander "aye,' Hopkins "aye," Gorton 'aye,' Ayer "aye,' Boyd "aye," and Mayor Stephens 'aye," Motion carried unanimously. 0. The Council considered adoption of an ordinance of the City of Denton, Texas abandoning and vacating a portion of the public streat right-of-way located at the intersection of Peach Street and North Locust Street, more particularly described herein; and declaring an effective date. (Planning and Zoning Commission recommended approval). Elizabeth Evans, Planning Administrator, stated that the property had been determined to be undevelopable. The adjacent { property owner did not want to purchase the property but would i be willing to maintain the property. I I I I i I I i I t i r i . i City of Denton City Council Minutes December 13, 1988 Page 16 I The following ordinance was considered: I NO. 88-206 All ORDINANCE OF THE CITY OF DENTON, TEXAS, ABANDONING AND VACATI14G A PORTION OF THE PUBLIC STREET RIGHT-OF-WAY LOCATED AT THE INTERSECTION OF PEACH STREET AND NORTH LOCUST STREET, AS MORE PARTICULARLY DESCRIBED HEREIN; A.ND DECLARING AN EFFECTIVE DATE. McAdams motioned, Hopkins seconded to adopt the ordinance. On roll vote, McAdams "aye," Alexander "aye," Hopkins 'aye,' Gorton "aye," Ayer 'aye," Boyd 'nay," and Mavor Stephens 'aye.' Motion carried with a 6-1 vote. P. The Council considered adoption of an ordinance approving Supplemental Agreement No. 1 between the Cities of Dallas and Denton; authorizing the Mayor to execute the agreement; and approving the expenditure of funds therefor. 1 ; The following ordinance was considered: N0. 88-207 AN ORDINANCE APPROVING SUPPLEMENTAL AGREEMENT NO. 1 BETWEEN THE CITIES OF DALLAS AND DENTON; AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT; APPROVING THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE. McAdams motioned, Hopkins seconded to adopt the ordinance. On roll vote, McAdams 'aye,' Alexander 'aye," Hopkins "aye,' Gorton 'aye,' Ayer 'aye,' Boyd 'aye,' and Mayor Stephens 'aye.' Motion carried unanimously. 6. Resolutions A. The Council considered approval of an resolution adopting the boundaries of the special purpose activity center as parO of Appendix A of the Denton Development Plan; and providing for an effective date. (The Planning and Zoning Commission recommended approval). The following resolution was considered: 4 f i, Y h n Y V City of Denton City Council Minutes December 13, 1988 Page 17 RESOLUTION NO. R88-072 A RESOLUTION ADOPTING THE BOUNDARIES OF THE SPrCIAL PURPOSE ACTIVITY CENTER AS PART OF APPENDIX A OF THE DENTON DEVELOPMENT PLANT AND PROVIDING FOR AN EFFECTIVE DATE, Alexander motioned, McAdams oeconded to approve the resolution. On roll vote, McAdams 'aye," Alexander 'aye," Hopkins "aye,' Gorton 'aye,' Ayer 'aye,' Boyd "aye,' and Mayor Stephens "aye." Motion carried unanimously. B, The Council considered approval of a resolution amending paragraph A.3.b, of Chapter V of the Denton Development Plan (19881; and providing for an effective date. Frank Robbins, Executive Director for Planning, stated that this resolution would excluded the technical analysis and details requirement update be approved by Council every time a Certificate of Occupancy was issued. The following resolution was considered: NO. R88-073 1 A RESOLUTION AMENDING PARAGRAPH A.3.b. OF CHAPTER V OF THE DENTON DEVELOPMENT PLAN (1988); AND PROVIDING FOR AN EFFECTIVE DATE. McAdams motioned, Hopkins seconded to approve the resolution, On roll vote, McAdams 'aye,' Alexander 'aye,' Hopkins 'aye,' Gorton 'aye,' Ayer "aye,' Boyd 'aye,' and Mayor Stephens 'aye.' Motion carried unanimously. C, The Council considered approval of a resolution adopting the technical analysis and intensity calculation for Area No. 41 as part of Appendix A of the Denton Development Plan; and providing for an effective date. The following resolution was considered: RESOLUTION NO. R88-074 4 A RESOLUTION ADOPTING THE TECHNICAL ANALYSIS AND INTENSITY CALCULATION FOR AREA NO. 41 AS PART OF APPENDIX A OF THE DENTON DEVELOPMENT PLANS AND PROVIDING FOR AN EFFECTIVE DATE, 1 1 i City of Denton city council minutes December 13, 1988 Page 18 Hopkins motions, McAdams seconded to adopt the ordinance. On roll vote, McAdams 'aye,' Alexander 'aye,' Hopkins 'aye,' Gorton 'aye,' Ayer "aye,' Boyd 'aye,' and Mayor Stephens "aye." Motion carried unanimously. D. The Council considered of a resolution leasing parking spaces located on the Williams Trade Square and declaring an effective date. The following ordinance was considered: RESOLUTION NO. R88-076 A PESOLUTION LEASING PARKING SPACES LOCATED ON THE WILLIAMS TRADE SQUARE AND DECLARING AN EFFECTIVE DATE. Ayer motioned, Hopkins seconded to approve the resolution. On roll vote, McAdams "aye,' Alexander 'aye,' Hopkins 'aye," Gorton 'aye," Ayer "aye," Boyd 'aye,' and Mayor Stephens 'aye.' Motion carried unanimously. 7. Miscellaneous matters from the City Manager. I ~ Item #2 from the Work Session was continued. I 2. The Council received a report regarding Neighborhood improvement/Planning Programs and a proposed plan for Community Oriented Policing. Mike Jez, Chief of Police, reviewed the highlights of the C.O.P. program in which the residents of a neighborhood and the Police Department would work together to improve the quality of life in the neighborhood. A. City Manager Harrell updated the council on the 9-1-1 situation and stated that the City Managers from Carrollton, Lewisville and Denton had met regarding a position that those three cities would take at the upcoming public hearing. He asked for approval from Council on two points to make at the public hearing on behalf of th(: City of Denton: (1) tha 39 charge authorized by the voters as the maximum fee for the E911 system should not be increased at this time without a vote of the people, (2) technical expertise be offered to the Board and Administration to evaluate the system. Staff was asking for authority to state the position that prior to the Hoard seeking voter authorization to increase the monthly charge, that a thorough analysis be presented and shared with the citizens of Denton County as the various alternatives available to implement the E911 system. The analysis should include an examination of the financing, equipment, and operational alternatives for the system, The City of Denton I ' { k x q i Y City of Denton city council minutes December 13, 1986 Page 19 stood ready to provide a staff member to assist with the development of this information and was certain that other jurisdictions within the County would supply technical expertise for this assignment if requested by the 911 Board. It was the intention to have John McGrane, Executive Director for Finance, serve as the City's representative to work with the 911 Board and Administration to try and develop those sets of alternatives and look at the details in presenting to all the governmental bodies and the citizens of Denton County what the alternatives were. Consensus of the Council was to have Council Member Alexander represent the Council at the public hearing and make the above points. i 8. There was no Executive Session held during the work session. 9. New Business The following items of New Business were suggested by Council Members for future agendas: A. Mayor Pro Tem Hopkins requested a report/study regarding a new policy on the procedure for street closings, 10. The Council convened into Executive session to discuss legal matters (tax suit against Maverick Aircraftet. al.), real estate (considered acquisition o an or ?ire sites and considered acquisition of right-of-way for bridge on c Masch Branch Road), and personnel/board appointments (held a discussion regarding vacancies on the Airport Board, Community Development Block Grant Committee, the Low Income Housing Task Force and the Appendix A Committee and held a discussion on applicants for a alternate municipal judge). No official action was taken. With no further business, the meeting was adjourned at 10:36 p.m. RAY STEPHENS, MAYOR CITY OF DENTON, TEXAS i JENNIFER WALTERS, CITY SECRETARY CITY OF DENTON, TEXAS 3020C r RECOMMENDATION TO CHY COUNCIL V-47 The City Council held a public hearing on December 13, 1988 to consider the petition of the City of Denton requesting a variance of Article 4.09 of Appendix A of the Code of Ordinances of the City of Denton, Texas. After consideration and discussion of the following criteria, the Council recommended by a vote of _ 11/-0 at its meeting on f~J~j~/ The Council based its recommendation on the I following responses to the criteria: I 1. Uranting of the request would not violate any master plans. 1 This extension does not appear on any Master plans. 2. The special or peculiar Condit?one upon which the request is based relate to the topography, shape, or other unique physical features of the prop- , erty, which are not generally common to other properties. i All adsoining properties have sewer service, so there is no physical need to extend the sewer line. I 3. The special or peculiar conditions upon which the requer.t is based did not result from or were not created by the owner's or any prior owner's action or omission. The situation is not a result of any action by the owner or any previous owner. i k Ray S h s, M: or i 1 i CITY OF DF.NTON CITY COUNCIL MINUTES DECEMBER 20, 198b The Council convened into the Joint 4ork Session with the Library Board at 5:30 p.m. in the Civil Defense Room. PRESENT: Mayor Stephens; Mayor Pro 'lem Hopkins; Council Members Ayer, Boyd, Gorton and McAdams. ABSENT: Council Member Alexander LIBRARY Members Speck, Schaake, Pickens, Adkins and BCARD Glasgow PRESENT 1. The Council and the Library Board held a discussion regarding library expansion options. Joella Orr, Library Director, stated that the charges for the consultant were to look at the present building in terms of needs and also future needs and options. Dick Waters, HBW Associates, presented a synopsis of his report to Council. The first part of his work dealt with looking at i the existing building and the available bond funds. His recommendation was not to expand the existing building as the site was difficult for expansion, usage would be further complicated by additional expansion, the present building was located in a site that was primarily service/government orientated, and parking would need to be greatly expanded if the present location were greatly expanded. Recommendation for the present site was a modest expansion for better use of existing space a,i the purchase of two new sites for major branches for the community. HbW was also recommending the purchase of a book mobile tj serve the community while the new sites were being developed. In terms of budget, the recommendation was to increase the materials budget over the next 7-8 years so that it would reach 201 of the total budget. Flture site recommendations would be a branch iii saatheast Denton and one in north Denton. Additional recommendations consisted of continued use of children's programs, more programs for adults, and automation of the program which was badly needed. Dr. David Speck, Library Board, stated that the Board agreed with all of the recommendations from HBW and was ready to proceed. f Lloyd Harrell, City Manager, stated that staff felt the priority for the $1 million was to proceed with the modest renovations of the current building, purchase the two branch sites and build as much as possible on the first building. i i 11101 s. City of Denton City Council Minutes December 20, 1988 Page 2 Consensus of the Council was to receive a report from the CIP Committee before proceeding with the proposed calendar. 2. The Council convened into Executive Session to discuss legal matters (County of Denton vs. City _of Denton, Flow Memorial Hospital Bankruptcy, Struble v. Cites Denton, worker's compensation claims by David Huc2ey and Jerry Tanner), real estate and personnel and board appointments. The Council then convened into the Regular Sesoion at 7:00 p.m. in the Council Chambers. PRESENT: Mayor Stephens: Mayor Pro Tern Hopkinsi Council Members Ayer, Boyd, Gorton and McAdams. i4 ABSENT: Council Member Alexander 1. The Council received a presentation of the Certificate f of Achievement Award to the City of Denton for excellence in financial reporting from the Government Finance officers Association of the United States and Canada. Jerry McHorter, represer:ting the Government Finance Officers Association of Texas, presented the award to the Mayor and Council, 2. The council received a Corporation to SPAN. Presentation by the Southland Clint Donsback, lExecutive Director anofeSPAN, wtth~ a presented tPfor o$1000 for its operation. 3. Public Hearings A. The Council held a an ordinance amending Planned Detielopmental8nandnda considered concept plan on 19.0704 aerea which expandedPr Planned Development-18 to 24.4 acres. Petitioner was Safety Kleen Corporation, ThA property was located at the southeast corner of Cooper Creek Road and the Texas and Pacific Railroad and + Mingo Road. The property was currently zoned agricultural and planned development industrial and mere fully described in the Moreau Forrest Survey, Abstract No. 417. If approved, the property may be used for industrial uses. Z-88-020. (The Planning and Zoning Commission recommended approva"Tj- - 1 f f City of Denton City council minutes December 200 1988 Page 3 The Mayor opened the public hearing. Tom Jester, representing Safety Kieen, stated that the proposed planned development was for warehouse space, locker roort space and office space. He stated that at a previous Planning and Zoning Commission meeting, there had been allegations of chemical spills. He stated that there had never been any spills at the site and no employee had ever complained about illness from their chemicals. Any construction on the site must not only be approved by tiie City of Denton but also by the State, Roy Appleton, Denton Economic Development Board, stated that the charge of the Board was to encourage economic development in Denton. He stated that this was a local company that had been in Denton a long time. The company supported the community and was a good neighbor. He recommended approval of the request, Joy Powell, resident of the area, spoke in opposition. She played a portion of a tape recording of the noise in the area which interrupted her sleep during the night. She presented f the Council with a list of hazardous chemicals found at Safety Kleen. She stated that she had become sick from breathing fumes from the plant. She felt that it was not fair to the residents in the area to have the plant there and did not want it expanded. Allen Lubbers, resident of the area, questioned the zoning classification of LI (light industrial) for the area, How could the zoning be correct if heavy trucks were going in and out and a railroad was being used. He did not see how a light industrial classification fit the current use for the property. His concept of light industrial was mini-warehouses and gas stations, not heavy trucks and a railroad. Tom Jester was allowed a rebuttal. Mr. Jester introduced Dennis Glenn, Facility Manager-Safety Kleen, Mr. Glenn stated that the plant was highly regulated by the Texas Air Control Board, the Texas Water Commission, and the Environmental Protection Agency. Those agencies did an annual inspection and since the facility had been there, they had never received a violations not fined for a violation, He stated that he had ' provided Ms. Powell with the list of hazardous chemicals and that a more complete list was on file in the City offices. E Council Member Gorton asked if spills had to be reported to the EPA, Texas Air Control Board, etc. i I I E ~ i r 1 City of Denton City council minutes December 10, 1986 Page 4 i Glenn replied that there were definitions of what the EPA considered spills. Since the facility was opened in 1975, there were three incidence.3 recorded of spills on-site. They did not go outside the facility and were reported voluntarily. Follow-up was not made by any agency. The Mayor closed the public; hearing. Cecile Carson, Urban Planner, stated that th.o was an expansion of an existing planned development approved in 1974 for a tank area/recycling of various chemical and warehousing facilities. In 1985 the Council considered and recommended that en ordinance be prepared for an expansion of the site which included additional warehouse facilities. Since that time, Safety Kleen had been constructing the facility under the operation of a planned development district and were requesting an expansion for warehousing and distribution land uses on property which was currently zoned agricultural/planned development/light industrial. A number of staff personnel had been involved in the review of the request because of the types of uses concerned. Howard Martin, Municipal Lab-City of Denton, had provided detailed information about the Safety Kleen operation. He stated that this was one of the cleanest operations from an industrial standpoint in the city of Denton. The site had chemicals which were highly explosive and i flammable being transported in and around the area. All of that information had been supplied to Ross Litman, Emergency Management Coordinator, who stated that there was a very detailed evacuation plan for that area. It was also regulated by the Texas Water Commission, the Texas Air Control Board and the Environmental Protection Agency. The property was located in a low intensity area which the Denton Development Plan indicated should be predominately residential and low intensity in nature. However, the area was 364 over intensity based on current zoning with mixed land uses. The Planning and Zoning Commission considered the request under the policy of economic development which stated that the City might chive application of intensity policies to accommodate certain industrial uses. Based on the information provided by Safety Kleen, the site would meet those classifications and approximately 904 of the materials processed at the site would go outside the City limits, one of the major criteria for that consideration, Council Member Boyd asked if there were any indications of r activity that would hamper ground water in the area. tt I Carson replied not to her knowledge. Nothing was released into the sewer system or into the ground water itself until it was inspected by the city with certain items not being allowed in the storm water system. i 1 I y t City of Denton City Council Minutes December 20, 1988 Page 5 The following ordinance was considered: NO. 88-208 AN ORDINANCE OF THE CI'CY OF DENTON, TEXAS, PROVIDING FOR A CHANGE FROM AGRICULTURAL (A) TO PLANNED DEVELOPMENT (PD) ZONING DISTRICT CLASSIFICATION AND USE DESIGNATION FOR 17.1 ACRES OF LAND, AS MORE PARTICULARLY DESCRIBED HEREIN; PROVIDING FOR A CHANGE FROM LIGHT INDUSTRIAL (LI) TO PLANNED DEVELOPMENT (PD) ZONING DIST'RIC'T CLASSIFICATION AND USE DESIGNATION FOR 1.9 ACRES OF LAND? PROVIDING THAT THE 19 ACRES OF LAND HEREIN REZONED, LOCATED AT THE SOUTHEAST CORNER OF THE INTERSECTION OF COOPER CREEK ROAD AND THE TEXAS AND PACIFIC RAILROAD TRACKS, SHALL BE INCLUDED WITHIN AND BE A PART OF PD-18, AS ESTABLISHED BY ORDINANCE NO. 74-31; PROVIDING FOR THE APPROVAL OF A CONCEPT PLAN FOR THE 19 ACRES OF LAND HEREIN REZONED AND ADDED TO THE DISTRICT; ACID PROVIDING FOR AN EFFECTIVE DATE. Hopkins motioned, Gorton seconded to adopt the ordinance. On roll vote, McAdams 'aye,' Hopkins "aye," Gorton 'aye," Ayer "aye," Boyd 'aye,' and mayor Stephens "aye.' Motion carried unanimously. Council Member Gorton asked that the record show that he had voted against allowing residential property to the north of the j Safety Kleen site. 4. Consent Agenda McAdams motioned, Gorton seconded to approve the Consent Agenda as indicated. Motion carried unanimously, A. Tax Refunds 1. Considered approval of a tax refund for Southridge Village P/S - 48907-00128. 2.' Considered approval of a tax refund for Southridge Village P/S - 48907-00130. 5. Ordinances A, The Council considered adoption of an ordinance authorizing the Mayor to execute an agreement between the City of Denton and Bracewell 6 Patteraon and Winstead, McGuire, Sechrest 6 Minick for legislative representation. i I n, City of Denton City Council Minutes December 20, 1986 Page 6 Lloyd Harrell, City Manager, stated that this was a formal agreement with Tom Forbes and Charles Evans to help in the legislative session with legislative representation with the indigent health care issue. There was a clause in the agreement that if other cities joined the effort and those cities caused substantially extra work, Forbes and Evans reserved the right to renegotiate the agreement. Formal conversations had taken place with the four other cities affected as Denton and had a tentative agreement with two of the cities and expected the other two to follow suit. Council Member McAdams expressed concern about there being no cap on expenses. Was there any idea of the total cost of the - package? City Manager Harrell stated that that item had been discussed during negotiations and no reasonable estimate could be determined. The Council held a discussion regarding expenses and what were reasonable expenses with a determination that along with the monthly itemization received by the City, monthly expenses would be included. The following ordinance was considered: i NO. 88-209 AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF DENTON AND BRACEWELL 6 PATTERSON AND WINSTEAD# MCGUIRE, SECHREST 6 MINICK FOR LEGISLATIVE REPRESENTATION AND PROVIDING FOR AN EFFECTIVE DATE. Gorton motioned, Hopkins seconded to adopt the ordinance. On roll vote, McAdams 'nay,' Hopkins 'aye,' Gorton 'aye,' Ayer 'aye,' Boyd 'aye,' and Mayor Stephens 'aye.' Motion carried with a 5-1 vote. 81 The Council considered adoption of an ordinance amending Sec. 4-10 of the Code of Ordinances of the City of Denton relating to the required distance between certain dwellings and the er.closed spaces in which livestock may be keptr and providing for a penalty in the maximum amount of five - j hundred dollars for violations therefor. Rick Svehla, Deputy City Manager, stated that the present ordinance read that certain animals could not be kept within 200 feet of any dwelling. The change w.~uld allow the owner of the livestock to live closer that 200 feet if they chose to do $o. ~I i f f ~ I t i yi City of Denton City Council Minutes December 20, 1988 Page 7 Council Member Ayer asked why a property owner sho"ld be allowed to live closer than 200 feet if others could not due to sanitation and health reasons. Council Member Boyd suggested"ot at there might be to problem with the ordinance reading The owner could put individual decided to rent the property. animals closet than the hfeet to ealth, asaf tyrenter's andrewelfare ofetother possibly affecting individuals. He suggested that the ordinance be changed to "owned and occupied by said person". Boyd notionedr Gorton seconded to adopt the ordinance with a change to read ' owned and occupied by said person". McAdams motioned, Gorton seconded to postpone action on the vote FebruarMcAdy order to w Hopkins item until the second meeting in j payee," legal language On Gorton "aye," Boyd "aye,' and Mayor Stephens 'aye,' 3 "aye," Motion carried unanimously. Item S.E. was moved ahead in the agenda order. E. The Council considered adoption of an ordinance authorizing the publication of notice of intention to issue Certificates of Obligation. Frank Medanichr First Southwest, stated that this was the beginning of a funding process for purchases and improvements. It was the most cost effective way as opposed to a lease-purchase arrangement. lease/purchaseatitemshaand ha John MejExecutive jects for money would be for CIP pro Hall. renovation of the heating air conditioning system for City The following ordinance was considered: - NO. ee-zll AN ORDINANCE AUTHORIZING PUBLICATION OF NOTICE OF INTENTION TO ISSUE CERTIFICATES OF OBLIGATION OF THE CITY OF DENTOC f ~ I I 1 1 1 r City of Denton City Council Minutes December 20, 1988 Page 8 McAdams motioned, Boyd seconded to adopt the ordinance. On roll vote, McAdams 'aye," Hopkins 'aye,' Gorton "aye," Ayer 'aye," Boyd "aye," and Mayor Stephens "aye.' Motion carried unanimously. The Council returned to the regular agenda order. C. The Council considered adoption of an ordinance portion tof 9Hanthe arking over vehicles on severability clause; fand providing a penalty not to oxceed two hundred dollars. {The Citizens Traffic Safety Support Commission recommended approval). The following ordinance was considered: N0. 88-210 AN ORDINANCE OF THE CITY OF DENTON, TEXAS, PROHIBITING THE PARKING OF VEHICLES ON THE NORTH SIDE OF A PORTION OF HANOVER STREET; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A PENALTY NOT TO EXCEED T40 HUNDRED DOLLARS; AND DECLARING AN EFFECTIVE DATE. McAdams motioned, Gorton seconded to adopt the ordinance. On roll vote, McAdams 'aye," Hopkins 'aye,' Gorton "aye,' Ayer "aye,' Boyd 'aye,' and mayor Stephens 'aye.' Motion carried unanimously. D. The Council considered adoption of an ordinance Appthe endix A of the code of establishing lot/driveways pas mlrequired by for Ordinances. The following ordinance was considered: NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, ESTABLISHING FEES FOR THE PARKING LOT/DRIVEWAY PERMITS REQUIRED BY APPENDIX A OF THE CODE OF ORDINANCES; AND O PROVIDING FOR A4 EFFECTIVE DATE. Rick Svehla, Deputy City Manager, stated that tnis would incorporate the permit charge when tha Appendix A, chapter 4 was approved. The fee would be based on the number of hours estimated spent on different sized lots. McAdams motioned, Gorton seconded to adopt the ordinance. Council Member McAdams stated that if the parking lot were in fo paid iun there would not building n or addiwhich tionalpermit permit s fe Ce r for the parking lot. l 41 City of Denton City Council Minutes December 200 1988 Page 9 Svehla replied that there would be a separate fee regardless if it were a new building or an existing building constructing a new lot. McAdams stated that that was not the information Council had received earlier - only lots in conjunction with a new building would not be required to pay an additional permit fee. Lloyd Harrell, City Manager, stated that the fee structure was being proposed to cover the cost of the actual inspection of the parking lot and making sure it met the new specifications adopted by the City. Previously, that was not done. In the _ past the inspection only involved making sure that the lot was 8 a hard surface. Mayor Stephens stated that the fee schedule was just to recover cost and not to show surplus. Council Member Boyd expressed a concern with the fee being separated out from other fees. He felt that it should be ! included in the original inspection fee and not broken out from the other general inspection fees. i Staff Members Evans and Carson confirmed that original discussions stated that there would not be an additional fee for new buildings. A discussion was held by Council Members centering on whether to charge a separate fee for the parking lot inspections or to include the fee in the original inspection fee. On roll vote, McAdams 'nay,' Hopkins 'nay,' Gorton "nay,' Ayer "nay," Boyd "nay,' and Mayor Stephens 'aye.' Motion failed 1 with a 5-1 vote. I F. The Council considered adoption of an ordinance J authorizing the City Manager to execute a contract between the City of Denton and Freese 6 Nichols Consulting Engineers to prepare airport preapplications for submittal to the F.A.A, for airport improvement projects eligible to receive airport improvement program funds. (The Airport Advisory Board recommended approval). The following ordinance was considered: NU. 88-112 AN ORDINANCE AUTHORIZING :CHE MAYOR TO EXECUTE AN AGREEMENT f BETWEEN THE CITY OF DENTON AND FREESE AND NICHOLS, INC. F02 PROFESSIONAL ENGINEERING SERVICES AND PROVIDING FOR AN EFFECTIVE DATE. AIINIPW ~t I City of Denton City Council Minutes December 20, 1988 Page 10 McAdams motioned, Body seconded to adopt the ordinance. On roll vote, McAdams 'aye," Hopkins 'aye,' Gcrton 'aye,' Ayer 'aye,' Boyd 'aye," and Mayor Stephens 'aye.' Motion carried unanimously. G. The Council considered adoption of an ordinance ai.nroving a lease between the City of Denton and Bert E. Mahon and Mary L. Mahon for property located at the City of Denton Municipal Airport, Denton, Texas. (The Airport Advisory Board recommended approval). Rick Svehla, Deputy City Manager, stated that this was a lease for hanger space at the north end of the airport. I Council Member Ayer stated a concern regarding the low rental fee. He questioned why the rent was only 80 per square foot when the lease was for 25 years. He felt it was too low for too long. Svehla replied that the property was at the furthest north piece of ground at the airport. The Master Plan had designated that area for 80. I Ayer stated that there would soon be improvements to the north section of the airport and that perhaps the improvements would increase the value of that portion of the airport. In that ` case, a long term lease of 25 years would not be beneficial to If the City. l McAdams motioned, Ayer seconded to table consideration of the l item until staff could provide additional information to 1 Council including a map of the area showing rental charges and why those charges were applied to those portions of the airport and how the CIP projects would affect the land and potential rental fees, On roll vote, McAdams "aye," Hopkins "aye,' Gorton 'aye,' Ayer "aye," Boyd "nay,' and isayor Stephens "aye.' Motion carried with a 5-1 vote. 6. Resolutions A. The Council considered approval of a resolution postponing the regular meeting of January 31 1989 to January 10, 1989. The following ordinance was considered: N0. R88-077 A RESOLUTION CHANGING THE REGULAR COUNCIL MEETING OF JANUARY 3, 1989 TO JANUARY 10, 19891 AND PROVIDING AN f EFFECTIVE DATE, I I 1 . v k :l F ~ k- City of Denton City Council Minutes December 20, 1988 Page 11 Boyd motioned, Gorton seconded to approve the resolution. On roll vote, McAdams "aye,' Hopkins "aye,' Gorton 'aye," Ayer "aye," Boyd `aye," and Mayor Stephens "aye.' Motion carried unanimously. 7. Miscellaneous matters from the City Manager Lloyd Harrell, City Manager, presented the following items: A. November Budget Recap - Harrell stated that this item was explained in the back-up materials and would answer any questions Council might have. B. Considered street names and the 911 system - Harrell referred to the report from Frank Robbins. Staff was recommending to Council that it was not necessary to rename k streets in Denton at this point in time. i C. Considered annexation of property along the Elm fork of the Trinity River from the City limits to the Lake Ray Roberts Dam. A-58. Cecile Carson, Urban Planner, stated that the City may proceed with the annexation of property up to the dam. Beginning the process sometime in January would put completion in late March. Notices had bean sent to property owners in the area regarding the proposed annexation with a request to consider voluntary annexation of 140'. The annexation would begin with a 1004' strip because all of the signatures may not be received for the voluntary 1001. D, Considered General Telephone's request to expand local measured service to the Denton area. Roger Nelson, Administrative Aide, updated the Cuuncil regarding local measured service. Consensus of the Council was to draft a letter to the PUC in opposition to the service in Denton with a resolution to follow at a later Council meeting. 8. There was no official action taken on Executive Session items discussed during the Work Session. 9. The Council then convened into Executive Session to continue previous discussions, No official action was taken. With no further business, the meeting was adjourned at 9:54 p.m. RAY STEPHENS# MAYOR CITY OF DENTON, TEXAS JENNIFER WALTERS l CITY SECRETARY CITY OF DENTON, TEXAS 3024C )1 1 i r t I I rj~ 11-1 LJZLD= Llm~ 1-1 I ~II I 1 I 1 ~ r I I ~I I 1 J I I t-I I 11111 Mild 111 11 I' I 4 F yr f i CITY COUNCIL REPORT FORMAT TO: Mayor and Members of the City Council FROM: Lloyd V. Harrell, City Manager SUBJECT: Approval of a tax refund to First Quality Foods Inc. RECOMMENDATION: The Tax Technician has determined that a tax refund should be issued. SUMMARY: Chapter 31.11 of the Texas Property Tax Code requires the approval of the governing body of the taxing unit for refunds in excess of $ 500.00. Taxpayer First Quality Foods Inc, has requested a refund in the amount of $ 1,803.20 since a DISD payment was made on their account # 8520-01120. BACKGROUND: Taxpayer paid I of their City tax on 10-31-88 for $ 1,287.88. On 11-21-88 Taxpayer intended to pay § of DISD tax for $ 1,803.20, but paid j it to the City instead. First Quality Foods inc. wants a refund of the PROJAMh?ODEPARTNI OR GROUPS AFFECTED: r k The :ax Department and the tax account of First Quality Foods Inc. FISCAL IMPACT: $ 1,803.20 RES TF ITT oy a'ff'rief City Manager Prepared by: ' Name Vic Schneider Title Tax Technician j Approved: i Name -Monte Mercer Title Controller 2633C/3 I I ! I sula Propely Tax Dowd APPLICATION FOR TAX REFUND Rehuid Applkatoa 27.11(4112) Collecting Office Namr. Collecting Tax For. (ax g nits) _r?/S E. ,'J7c~r~nnet~ ✓lert ort y~a~l Address City, State, Zip Code - - - - - - - - - - - - - - - In order to apply for a tax refund, the following information must be provided by the taxpayer. IDENTIFICATION OF PROPERTY O NER: Name: Fi r,t f 1 I Address: ' _ telephone Number (if additional information is me ed): IDENTIFICATION OF PROPERTY: ,f / / ~D ~}r rU 0.97 Description of Property: .SC ~7dQ it s J+ Address or Location of Property U Account Number of Property: or Tex Roc 1 Number INFORMATION ON PAYMENT OF TAXES: Name of Taxing Unit Year for Amount of From Which Refund Which Refund Date of the Amount of Tax Refund Is Requested Is Requested Tax Payment Taxes Paid Requeste! •03 l 19 $ 2. ' 3. 19 $ j f.Z o f -fig/ Taxpayer's reason for refund {attach supporring documentation): ~s~LEL 47 1 , / L n POP- 78$ i On ~~..t~c XOAYrt:n ildrCl 7C. !~aY/,Z 1l ~d ~o % 03dd T--?i 2171/-e h/s~ / refino (hereby a y or th re nd o th a ovedescribed taxes and certify at the information I have given on this form is true and correct" Si Date of Application for Tax Refund gnatu OETEWINATION FOR TAX REFUND: Approval Disapproval ► Signature of Authorized Officer Oate Signature of Presiding Officer(s) of Taxing Date Unit(s) for refund applicatlons over $SW Any person who makes a false entry upon the forpolnq record shelf be subjeet io one of"followlnq penalbee; 1, knpAsaiment M not more than 10 teen not lees than 2 yeah and/or a One of not none then !6,000 or both such fine and Imprisonment; 2. confinement In {elf for a form up to 1 year or a one nail* exceed 62,000 or both ouch lift and Imprisonment as wl forth In Section 27.10, Panel Code. nnuw 7+» I i ~i s 5 A I r' 1 YOUR TAXES ARE DUE OCTOBER Cft,r of Crolee TAN WDArtm~ot TAX STATEMENT tst AND BECOME DELINQUENT --~Yv,faa-I .Tfrvnangl'~ EBRUARY Ist. SEE REVERSE DImw, Tnn 74-04, jIDE FOR PENALTY AND INTER- PHONE 444--0],! ESf DETAILS. PROPERTY DESCRIPTION ACODUMTHUMBER TAXYR lunIftoo O LOCATION EXEMPT; - TAXABLE VALUE TAX DUE ED, SURVEY A PENALTY 1\ UY TOTAL j I f i . . I II , f WESTERN SIZZLIN STEAKHOUSE lass 3727 7000 W. UNIVERSITY PH. 817.703.1157 DENTON. TEXAS 78701 PAY TO THE ORDER OF__~L.Y~~_~r____ $ ~~'~f', y.. --DOLLARS I C t3 ~ e 14 I 'i ri1 f..j1/f4~11j fpT~l~~ VC~GV4. ~~~d Y 4 91003727E' E:&1&9239 098 at 1'0000& 28788~' i i I I F t WESTERN SIZZLIN STEAKHOUSE to es 3' 2000 W. UNIVERSITY PH. e17Je7-1153 DENTON. TEXAS 70201 ~ r~J.~r + / / 256//111/ _ - { PAY R - t I r -_18-- TOTHE oRoEROF~4X~+r_71;,62`✓~\.!-1L{ $ i t 1 -774 `ttt - .-DOLLARS - r'TITi i3r ro ran ~iTrPTTiiG3-~~I ,wTi6____ _ 1- _ P u'00349611' 1:iLL923982 1: 098 8~'• 2n' 11'0000 180 3 20 ' ~ GCr1~-' .~~Iti:;l L'fl 1 Lt,7L~ ~<•c.~ i 1 I . i a y R a it t 1 m Y J h A m y Ab O 2 I ~ OF l C T NUMBER RE CEiPT NUMBER 0000 _ 115-8 EAST OAK STREET TAX STA ET MENT0011 89 P.O. BOX 947 [7NOV0 DUE DENTON TX 76202-0947 3 0 , 0 THIS STATEMENT VALID AS AN OFFICIAL 3b06.40 RECEIPT ONLY WHEN VALIDATED. AUTNDRiTT P.AL.aP3606.40 RATE [%f MPTiON TA% SCL 100 50 3o 3606.4a 3 0 o 3858.85 F IF FIRST ALF PAID Y 11/30/8 THEN BALANCE ITHOUT 1488 MAR 3930-98 PENALTY I DUE BY 6 30/89. APR I1 4003.10 AMOUNT OF JUN 13 LiNS 23 DELIN UEN Y DATE: F BRUARY 1 1 89 TAxo60 <15 7.36 HFBHR S~rrs~ Quc> fi FpLtls Ti)C. SCOTT S Ea 1, LOT 2 .3 07. 2000 UNIVERSITY DR W1s4- ACRES: 0.975 DENTON TX 76201 tFp$STATEMENT fko WIT YO PAY NT. 1 / ~}.n w.E..N.a P.r.aLL.DENTON I S D V ~ "TOTAL APPRAISED VALUE 434506 I I i f I~ I J D 02 851100300 1988 THRU: 8530008C0 1988 D 03 ,CST HOaTH DATE 11!30166 1AA TRIAL BALANCE REAL PAGE 302 PENXrV EM7EC'3VE %ck, "v p' IOIAL DUE ACCOW K YEAR NNE YET TM CODE A PO-DATE TM PAID P" MID IAA OA M DUE L'Ll 336.25 681800300 ba J 6 L PARTWMS. 12026 YWWOM .00 .20.20 .00 atl•:! nm#o i 11130 71..W- .00 771.80 .00 ►7i; 30.77 655511p0pp0p~33t110~ 66 PPEENTTON JAMES E~LrLJpRRA 1,549:60 A ~iT1008DS"6$ F[1wT~ WSSTE-EJD'CORATTOOR"C0_9~9`P ~~90 ;83 359 aloof 461.49 151200100 66 J i PARTNERS 7'75:61 P MM i0 0 775:6? .0 775.8+ 00 ~.?~G.S! 349.96 651 200200 66 J i L PARTNERS 231,74 652000400 68 GREAT AMERICAN $000 Clow 2,759.33 14lMMM .00 .00 2,759.11 ..00 325.06 p 652000500 ds BARtJCH, 6MLNA C TR 5,117.02 r7~L+1tMJ 00 .00 8,411.02 .00 0• 00 00 4 4 :0-- - 4,33610+;. 239:14 R W.07 652001000 - ADKINS N s- - : ' ` .k`. X .6v bb , DWGt.Af 4,361.30 r""Oft . 1 2h1.45 652001100 M $MINA, CARLO JR ETAL ,555.69 r7IfWll.00 , ,565.60 00 164.12 - 61 01 C 7z1.'N 8520041 66 73AST g1AL[T7 /0005 INC 2,57S.aS r NO" 10/31 1, .l N 11J 1 7 x, 227 ' : +;4A6:7e 166.21 652001300 bb 7XLE00, JSMtt D 4.393.26 rM.N 0000 :CO ;.34-•e! .'e .00 , 466.21 652101100 da M TJJSIAVE L M.72 652101200 MISS ESS CAAOIE $ 507.16 t'rfllMM 11!29 255.59- .00 M:.6V .00 n3.59 3502a.~22 65 01300 LLAAtTNS(~A,, ~Nµ"Ut 472.49 1MMNN 00 .00 672.49 .00 uz•L5, 'Zb2"bD 101'650QQ0-6pN6"'YE~-~ALR~..L~ ~R4y]5677~_r7 1 ORD 4216:9u1 a 21,,1700 60 C WATRNER ETVK: 430:A1 r7MMM, 00 0000 43o.a1 .00 65C.61 324.56 852101600 M PCYE{L PATRICIA.L 496.69 rNMMM A .o0 196.69 .00 L9@.69 ~ 507.M 652200900 M $LETCHb J IN»MLD 496.60 rNIMM4 00 .00 496.60 .00 49e.NJ ''s 162.61 06 S35.91 652201200 b6-JACKS~N, $ERCH R `10:" ~ :00 ;0 475:70 00 - 1 SM.7S 6522013 66 CROUCH, TIMOTHY C 475.79 65.60 652201400 bb PAW1S, ALLEN $ 464.48 "00~ OD 0 X6.48 .00 !6t,Dp 540,4' Ywff@M IW.bt 8 5 2 201 600 eb M4AAOr AWCCA 569.06 Y7MM1M •00 .00 W.x .0 ~;x 434.33 $52~p1900 66 ENGE WFCHT, JAMES x 458.67 TWOO M .00 .00 .00 .k. 19 466.70 852202000 6E KING SCOTT R 480.29 pp 00 .00 xa65g22021 36 PRUEfT ELqDqO~N 0 3Z933..y59 Tt14444111 10!24 393:59- .00 .0000 00 X 4 1t1N_» 216.31 6 S2 4000 86 SRA , C E 431.34 ~ :0 431':319 4 :x X3,-:34 4-51.92 652 1100 66 JONEsS, RARCE 450.69 962 / eb COREY, CLUE MARGARET 517• St5:26 .0 5":2* 1 r116MM1 ~4S -4yb,y,~, Sf]9.9p2p B SNlik CIELTi1E~ 1 S~1S`p 00 !2 NE' CK NGEA, M WAM L 456.52 rMN+n6M 9/w 29 44- 397.d24T- 00 8303'7.6:4 06 S2 t NECRIMIGER, KENNETH L 532.6} 176MNMA MTO 0p0p '0p0p ' 632.63 or, S":..-3 cz1,19 652 NOIT IYMM W. 1. 1MMMM .04 :00 30+.37 or, 194.94 852 66 SMAG~G, MNK,MET A p 6 t 1 - p~ qp ~qJ~~ } SM7 7S 6524A2TRC~A" ]aRICE-F. 603.34 x '~-'•'w ;94,41 652 86 YILLIAMS& TIMgMr C. .80 M6MM 126A 440.04 6S 6ROOK3 KE{lV L 00 65 DdM /tAWtr x JR 5p~ 4S TMI6M6M 75 51 454: 65 NIMIES CuRTIf L 57.50 rWHOO MTV 74, MAPS HA~L, JAMES L ETAL t YMMMM p[~ 225. + .7, ze..'- 223. 1 S 6AR+ARTH CORD 602.21 t1NMM1 :00 6t9.i~ :7 J X0.70 65 SiAOUO, CHARLES ROem 669.47 YYMN/M E oz- 853001-000 1988 THRU• 863000100 1987 E 03 TAA TRIAL OALAME REAL PM,,E 3_3 ~p•J,. (,t:• ; t AtM. PA ' ACCCWTEa YEAR NAM t(1 TAR CODE A PD-DATE TM P410 7'6% 9t16 'AJ It 1 I I lL a 1 T-" L 1 , I k !+R++44441 1-f+H 111 I .P } . , R e V ` ~I VV CITY COUNCIL REPORT FORMAT TO: Mayor and Members of the City Council FROM: Lloyd V. Harrell, City Manager SUBJECT: Approval of a tax refund to Selwyn School RECOMMENDATION: The Tax Technician has determined that a tax refund should be issued. SUMMARY: Chapter 31.11 of the Texas Property Tax Code requires the approval of the governing body of the taxing unit for refunds in excess of $ 500.00. Selwyn School is iue a refund of $ 2,216.13 because the Denton Central Ap- praisal District gzAve them exempt status for 1986 c account # 8905-01797. { BACKGROUND: Selwyn School paid 1986 tax of $ 2,216.13 on 1-30-87. On 8-22-88 the Denton Central Appraisal District issued a supplement giving them exempt status for 1956. A refund in the amount of $ 2,216.13 is due. PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED: The Tax Department and the tax account of Selwyn School. FISCAL IMPACT: i $ 2,216.13 :4F L4Y/SU TTE oy arre City Manager Prepared by: ame Vic Schneider { Title Tax '--clinician i Approved: n ame Monte Mercer Title Controller 2633C/3 { i a S II l • g-3v -SY cc ~~.~e~.k. 1986 SUPPLEMENT I T0: ~,akn P,,W DATE:~j LZ FROM: DENTON CENTRAL APPRAISAL DISTRICT P.O. BOX 2816 DENTON, T% 78202 LEGAL OWNER: ,sa ~n ~I,o521 DESCRIPTION:AplG2 RJJS.% 1-Iwy_ 3 FRc„~ Srz.c.+ IA i ~J AC. PEA 4 (~„Q POAc n . `j 17b2,01 1q.1 J, ACCOUNT 3~Ibr~ Id5'-Q17 q, PREVIOUS VALUE: CORRECTED VALUE: IMP HS - IMP HS`- 2j3 "s LAND HS _ LAND HS IMP NHS IMP NHS S20 LAND NHS 1407 `S, Ili< LAND kHS 3?3, i A4 MKT AO MKT i AO USE _ AO USE EXEMPT EXEMPT 64 tM2f TAXABLE_ TAXABLE (o/5 IMP SPTB LAND SPTB£L SIONATURE:z2&,~j yl/D REQUESTED BY: C9 J REASONS: _~XC~nD~ ~CIC~$G Ll 19"I'7 11,7ow I I /I 00 09000119/ M Myna, J. 1KIITON E.~3 12171 • 00 "ON McCaw TOTAL L 4711141199 loll Tolvi 110f•1110 11100 1 is Man 913WN TAX TRIAL OKAKI mm PAGE 1247 8 TV EFFECTIVE 11UMKN1111M Atc04 ACMAR 0 no we MY TAX COOS A 1'N9AT[ TAX Mf ft^ I" fpp7pp:: pp~~ pppp 7{R A 090001115 N MAYW: Kp1IAA P 12!31 17:N- AO H :00 :00 M. E90W MrtOR E1K611A P 17. 12 M M_ t2:01- .00 .86 .QQ 12. Motif , T1MM994 00 00 w 0101 VjmIA P . ...........I?.. 12131 010001P90 my Go: 0 • McCaw TOTAL 12: .:..«.._..«:TMAW. -1170' 16. 16.1! 2,211. 13t. 1.ri. ACCOIRR TO9K 1 _ ""AM "DIONIAL PAW l19i41D1«Iw_IOi ..».---..1,221.09 . I , -1 'MM t11C.. MQ~p1 186 ~1 MOULAIMN~pR IAL PARK 2 1 63 rI0N011 i Qp pp 231. A pp 231.p~p~~ pp3017M 86 OOOE1M01 NEIIORIK PAW 106:29 t2131 186:29- :00 CTAAfT MAL 231:OS VFW wr ,"l P"1f3t...».._....». t1. i .Q»... isappT 911MLA, ON / [TK 4,162. W 138 6,862. 1,215.13- • ACCOUNT TOTAI»... 6S 0 ;-f~l14- -.9w ACCOUNT TOTAL 37. Ogpfp MOE0100E N CA" OF 04WON .00 1NMMM .00 .00 .00 .00 .OD E9010 WIN --ice' !I-04 « 9.93 Qu .-..lg~.~...9-83 McCaw MAL 0: Alamm 17 .00 CAAAIMr, I=A1 J. iNU9986~1 2:[1 592.00 59Q.17 "s pppp •-"'-"~~ACC«N 592. i2' i ~p~pt~py +7 ORARfORO, JpN 657:~ rNMMN1 1/!0 K3:71 ~•qpt 159. 860301105 M OMiPOM, JOHN - «»..«_....._.«..w«« ICC~I.IQIN..._»Ii! 860301106 01 OAVIE, )OW 0. ETAL .00 "NOWN .00 .00 .00 .00 .00 gyp/ 01 CARAWAY CAA1861, A00tRT , R01ER1 JJ, . 1.39 TMMRON 12103 n:W pp- :00 pp nZ A $.71 ~ ~Q . . « . - Qp p~ "n + 1010301'101 86 Y11TI: L 861 N 113:6861 11107 tnl- :pp 00 1:0 t01Ert ►OIK 221:30 AC,.; TOTAL 39. 19060 W ES {{7 RJl 2011• J NWON E/AL 1.{7 r100011M pppp pp 27.N pppp MAY 190 ES M RAf200, J maoN tlA 17.71 12131 21:11- .00 .OD :00 .00 190501011 lost ?Nave $96501626 1906 N~ 1t 190 trell . I ACCOU TE! TEM O WN PAX TRIK 86MY TAX CCOON A 86-04% 186 PAID POPM 1244 N P010 TAX ~Tr P" k* TOTAL MIA ~ ~ Or i 1 810307769 / 7 WARD, ELKS W 4126 29.5,8• 3.26• .00 00 pp I i 1 ACCOUNT T61AL 332,51 I 890501790 1988 THRU: 890501805 1987 N 08 Am 9150/68 TAX TRIAL MALANC( REAL PAGE 1144 PENALTY EFFECTIVE NEAT MONTH ACCOUNI 0 YEAR NAME NET TAX COOS A PD-DATE TAX ►A16 PEN PAID TAX DUE PEN DUE TOTAL DUE 19D 9014 170 1190 17 YAAD, YARD, ILItELLIS E 218,49 YNNNNNNN 00 .00 216.49 00 216.49 1SU It 193,11 6129 19),1! 21.96 X00 '00 ...s..__.....` ........................................)......._..--------•--•-----............._.pp...._........HS4UNI.I9M.....i14a54. 198801991 t1 YAAD, ELLIS 1959:6i YNNNNNNN 6/20 459 64 143:94- 1,130 T,I30:00 ACCOUNT TOTAL 1,150.91 7•• . , 1441 00 A gg....._ 11981192 J-118$;"68 IN .......................1P~. I t6 1 INNNNNNN, 1::6-..._1eI.QP:...... AR 144a _...__.1 ACCOUNT TOTAL 166, 1 890504793 88 ST, PAUL LUTHERAN CHURCH 00 YNNNNNNN .00 DO .00 .00 .00 6 pQ pp ~y 1$888;9$1" 37 8~928p;:"~'E~'1SA . ..INNNNNNN-.. V . ...,...._111 ........a ........E1 1,1$ )703......-6.69= -"'-.88 .00 - ACCOUNT TOTAL 6:89 1 905 1195 1 RAY20A,EUGENIA P 76,49 YNNNNNNN 72/28 71:06 00 76.49 .00 76.49 9DS01795 17 RAYIOA,EUGENIA P 78.06 00 00 00 ESSOUNI.IP]lU......i41l4. 190501996 67 RAY[OA; EUGENIA P 12.19 TNNNNNNK 12121 120• 80 12 1 00 12:1 ACCOUNT TOTAL 12.0409 I ~ 17$7.. 9..1FC0911-111160[...._.. ---•--••-••-12 s41: ..Inr64eee...~~ T -.....44........ 140......... A. YYN S`(CNaTL A 17s•' $1 mmNil SCNOOi _ A 1l 1 T6 1 16 1- 2 1 1-WVR l .............i......_....... pp.._.....pp............6fsom.lQTet......_.... AW4 PAR 19196 .1.AYN MEMORIAL PAR122109 YNNNNNNN 12114 1,221,09• :DO 10221 09 9050?7 JOSELK :00 M 1,2 t1 9 ACCOUNT TOTAL 1,211.0900 5 q yyEE yy Ehq L 1~eeKK q p¢..2NNNtlNNe..i271 L t)t;pppp.......a 6 - .it4, ........10000-.....Q~. 1$858195$ at ~BSEEAP~ AERORIIC LIAR 231;65 b7 8AC000NT TOTAL 229:1 3 45. 89)501600 68 SINGLA, OM 0 fTAL 45.65 YNN'ANNVN 89050180) N fINGLA, OM P EIAL 45.6 2723 45:67- 19- ...............................................................•--.....................................`..eDSS4UNL14Il...._..51/4 . 190501601 88 MY, BELLY M 37,73 YNNNNRNN QO 00 31.13 00 37 J 90$ 18 1 81 1101, KELLY M VA 12!03 37,73- w : COUNT TOTAL 37.10!0 a4444I14i..ele9..91I L9I.9ENI9N 140_.IjwNtN............... ap4p4.......,04...........`44........,44..........e44}. A, P 190501603 11 AAYZ0P, EUGE41A PORTER 9:61 Y'INNNNNH 12126 9:/3• :00 9:00 A ACCOUNT TOTAL 9. 489iNNNNHNy_, 12727 .....592;17• pp....... .441 ggg.... 108 44Lj~. 1$888188x "17 f1l081d,188811 :9 ;8$ p • e u p ACCOUNT TOTAL 601• S 1190501665 118 B ADFOAD; J084 659:897 3 iMNNNNNN 1129 b39:83• :00 721:GO :.N 121: X890501806 1988 THRU: 890501822 1988 0 08 DRTE 90508 TAX TRIAL BALANCE REAL PAr.f 1175 PENALTY EFff'TIVE NEXT MONTH Ir rn.~o.T 1' •.u u....! Nil TIY MNS 1 PN-1110 t11 DI' Nr r~r nr,~ .r f a S , r CITY of DENrON, TEXAS 215E. MCKWNEV I DENTON, TEXAS 762011 TELEPHONE (817) 566.8200 MEMORANDUM DATE: January 5, 1989 E TO: ',loyd V. Harrell, City Manager FROM: John F. McGrane, Executive Director of Finance I SUBJECT: SELWYN SCHOOL TAX REFUND Selwyn School has applied for a refund of 1986 property taxes paid on January 30, 1987. On August 22, 1988 under Section 11.21 of the State Property TTaxx Code, the Denton Central Appraisal District exempted property owne33y Selwyn c3`~iool from property tax.. The State Pro ert ax Code allows for exemptions cr terTas tEat is delineated within of a school if the school meets certain the section. We have been notified by John Brown, Deputy Chief Appraiser of the Central Appraisal District, that Selwyn School has complied with Section 11.21 of the Property Tax Code. He also indicated to us that Selwyn School has taken this matter to the court on individual tax years and the district court has ruled that the school is exempt from property taxation. Since this refund is in excess of $500 it must be approved by City Council. 1i If you have any questions regarding this matter, please advise. o n F. .c cane i JFMcG:af i i I 1 E f 4 Sec. 11.20 Property Tax Code raxabl^ a Property and Exemptions Sec. 11.21 A radio and television studio used for religious program. (1) the school is operated exclusively by the person ming was an actual place of religious worship under Sec. owning the property; 11.20. More restrictive distinctions between religious work of this sec- and religious worship probably do not apply under the new statute. The studiowas a separately secured part of a build. don the except basuildings permitted and by Subsection tangible person(b)al property statute. and the exemption applied only to that part of the build- lio, ing. The temainderof the building was rented to commercial are used exclusively for educational functions; and tenants, and therefore taxable. Highland Church of Christ v. Powell, 644 SN21 177 (Tex. App.-Eastland 1983, writ refd (3), the buildings and tangible personal property are nx.e.), distinguishing Davies v. Meyer, 641 S.W.2d 827 (Tex. reasonably necessary for the operation of the school. 1976). Sea also Swearingen v. City of Texarkana, 696 S.W.2d 167 (Tex. App.-Texarkana 1979, refd n.r.e.); Radio Bible (b) Use of exempt tangible property for functions other Hcur, Inc. v. Hurst-Euless Independent School Distriet 341 than educational functions does not result in loss of an el- S.W2d 467 (Tex. App.-Fort Worth 1960, refd nx,e.), emption authorized by this section if those other functions In Swearingen v. C9ty of Texarkana, 696 S.W.2d 167 (Tex, are incidental to use of the property for educational functions and benefit the students or faculty of the school. i i Gl'v. App.-Texarkana 1979), the court noted on rehearing that Sec. 11.20 of the Property Tax Code supported its hold. j ing under art. 7160 (now repealed) that a bookstore operated (e) A person who operates a school that is qualified as by a religious organization could qualify for the exemption provided by Subsection (d) of this section is entitled to an ex- only if it functioned as an actual place of religious worship. emption from taxation of those a dowment funds he owns Mere dissemination of religious information was insufficient that are used exclusively for the support of the school and are for that purpose. invested exclusively in bonds, mortgages, or property pur- chased at a foreclosure sale for the purpose r _ Ai0ving or In Davis v. Congregation Agudas Achim, 456 S.W.2d 459 protecting the bonds or mortgages. However, foreclosure- (Tex. App.-San Antonio 1970), the court inflicated that the sale property that is held by an endowment fund for longer constitution did not require exclusive use of property as an than the two-year period immediately following purchase at actual place of religious worship. The court also said that oc• the foreclosure sale is not exempt from taxation. casional rental of parts of a synagogue did not destroy the exemption where the proceeds were used for the mainte- nonce of the synagogue, (d) To qualify as a school for the purposes of this section, an organization (whether operated by an individual, as a Ahouse owned by a religious organization and used to house corporation, or as an association) must. a needy family was not an actual place of religious worship. A tax lien on property in the hands of the church could be (i) normally maintain a regular faculty and curric- foreclosed, even though the church was not the owner at the ulunt and normally have a regularly organized time the lien attached. Op. Tex. Att'y Gen. No. MW-663 body of students in attendance at the place where its (1982). educational functions are carried on; (2) be operated in a way that does not result in accrual 4 See. 11.21. Schools. (a) A person is entitled to an exemp- of distributable profits, realization of private gain re• tion from taxation of the buildings and tangible personal sulting from payment of compensation in excess of a property that he owns and that are used for a school that is reasonable allowance for salary or other compensa• qualified as provided by Subsection (d) of this section if. tion for services rendered, or realization of any other 11.34 11-35 I Sec. 11.21 Property Tax Code form of private gain and, if the organization is a :or- poration, be organized as a nonprofit corporation as ` defined by the Texas Non-Profit Corporation Act; r and E (3) by charter, bylaw, or other regulation adopted by the organization to govern its affairs: 4 I (A) pledge its assets for use in performing the or- ganization's educational functions; and (B) direct that on discontinuance of the organiza- i tion by dissolution or otherwise the assets are to be transferred to this state or to an educational, charitable, r..ligious, or other similar organiza- tion that is qualified as a charitable organization under Section 601(c)(3), Internal Revenue Code of 1954, as amended. I (e) In this section, `building" includes the land that is reasonably necessary for use of, access to, and ornamenta- tion of the building. Amended by 1981 Tex. Laws (let C.S.), p• 130, ch. 13, See. 36. Crose Reference= Exemption application form, see SPTB Rule Sec, 1$5.20. Annual application not required, see Sec. 11.43(c). Constitutional authorization, see art VI11, Sec. 2, Tex. Const. Notes To qualify for exemption under the constitution, school prop- arty must be owned exclusively by the persons who operate the school. The supreme court has held that where one part- 4 ner of a partnership operating a school owned no interest in I the property, the property could not qualify for exemption. Smith v. Feather, 234 S.W.2d 418 (Tex. 1951). Where school operators lease a iriilding and use it for a school, the bidding cannot qualify for the exemption. Red v. Morris, 72 Tex. 654,10 S.W. 681 (To x. 1889). ' 11-36 I r. -1 L i I I 1 i i FFII I I Nail] i E l I CITY COUNCIL REPORT FORMAT TO: Mayor and Members of the City Council FROM: Lloyd V. Harrell, City Manager SUBJECT: Approval of a tax refund to Glen W. Justice RECOMMENDATION: The Tax Technician has determined that a tax refund should be issued. SUMMARY: Chapter 31.11 of the Texas Property Tax Code requires the approval of the governing body of the taxing unit for refunds in excess of $ 500.00, Taxpayer Glen W. Justice is due a refund of $ 1,549.80 because the DCAD issued supplements for 1985 thru 1987 correcting the Improvement values BACKGROUND: on account # 7320-00210. Denton Central Appraisal District supplements for 1985, 1986, and 1987 corrected the Improvement values on this account, resulting in a total refund due of $ 1,549.80. PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED: The Tax Department and the tax account of Glen W. Justice FISCAL IMPACT: $ 1,549.80 i RESPE ULLY SUBM TTED: ~ oy ar e Cit Manager Prepared by: { Name Vic Schneider Title Tax Technician Approved: C ~ Name Monte Mercer Title Controller 1 2633C/3 I ~ 1 L E 1986 SUPPLEMENT TO: DATE: 10-1~~~ _ FROM: DENTON CENTRAL APPRAISAL DISTRICT P.O. BOX 2816 DENTON, TX 76202 LEGAL OWNER: .IJSiit`le vii. DESCRIPTION: CJWS14j'~u~. rror 1►~ E (VCA4 Q1 . LoE %1 t-s. `Ti( 15201 ACCOUNT PAEVIOUS VALUE: CORRECTED VALUE: IMP HS _ IMP HS LAND HS____. JOA06 LAND HS I5,15O _ i Q IMP NHS 1161,TIol IMP NHS 80,736 s LAND NHS LAND NHS AS MKT AS MKT I a i AS USE AS USE EXEMPT Sa EXEMPT /Ve , TAXABLE TAXABLE OS OR GAIN: S 6 x 7 l IMP SPTB: 62- LAND SPTO-Jd SIGNATURE: ~L1,21SOE- lNry2 REQUESTED BY: i I REASONS:6rflLf 1-4,vd 01,1 (t yG1ye5 ,)I-,;k d 1986 SUPPLEMENT ' TO: ; e Ln C~i1.I -DATE: 1U-13-8ei FROM: DENTON CENTRAL APPRAISAL DISTRICT P.O. BOX 2816 OENTONs TX 76202 LEGAL OWNER: 0,jSi~Le , Cole, \`J DESCRIPTION:: w5l ~ ~tkc1ti ..1,~„ Y4cna _ 1 rt--7 vu~ ~%a f 7.II~s 'Tx 757-01 ACCOUNT R a7N0~ I PREVIOUS VALUE: CORRECTED VALUE: f IMP HS _ IMP HS I LAND HS?-A c LAND HS IMP NHS 7N IMP NHS ~`1N LAND NHS LAND NHS AG MKT AG MKT AQ USE _ AG USE _ EXEMPT _ EXEMPT e bf~.3 TAXABLE abli Nql~TAXABLE kcR,IZN 50011 + 5 OS OR GAIN: Q3, 371 X S IMP SPTB:_Z SPTB&L j~t LAND SIGNATURE: RCS}e- ~ REQUESTED BY: 4L REASONS: l~flft«} IY~ ~uIUL I { i r n 1997 SUPPLEMENT PROM: DENTON CENTRAL APPRAISAL. DISTRICT P.0. BOX 2916 DENTON, TX 79202 OWNER LEGAL us4;CC 4U. OESCRIPTION:Av,r, f,~ J(A 5 0ri'rh 131k `1 Lri FIcOR 11tr-rc y52 0 ACCOUNT f_ a hq tq73,Z PREVIOUS VALUE: CORRECTED VALUE_ IMP HS IMP HS LAND HS 5,_750 LAND HS_ /5;j 7750. I IMP NHS_ r~o,'1 Ll~ IMP NHS C~ 3r7y LAND NHS LAND NHS AO MKT A8 M%T } i AG USE AO USE EXEMPT- EXEMPT _____e 89 TAXABLE TAXABLE h/ OR GAIN t~ Q3-~: '?f~ x IMP SPTS:~d LAND SPTBj SIGNATURE: f?:SFG q (0 REQUESTED BV: a~ j REASONS: -~O,rec} Iw.n YQI~~ y I 3 1 I I H 17 ?310011001986 THRU: 734001200 1988 H 18 a Pam DATE 11/3WI6 TAX TRIAL BALANCE REAL MBE 262 PEIMLTY EffE rxw NEAT PC" OTK DUE ACCOUNT B/ TEAK WDE Wt TAX CM A PD-GATE TAI( PAM M PAID TA9 DUE PEN L JJEE TOTAL DUE OXM mas L 19'7:11 Y'VNWM 11121 96:7p0- :800 196:7r{6 DO 196.?s su.a 7m710012~ 'I Ei LEN SaeA6 731 86 C~Y JAP" LEN U34 e1.9S : 8 :00 01 95 21 dl $3.63 l LS OOiNY, JAIU LEN et. 2S 11 COWY, JAPES LEN 41. 61.1 21 ~ 56 65.66 n COMM. JAl4n LEN 00 7 A1 K 94 Uzi& -4mK2T- .33 Nd.21 W?3 r27: 27.09 S . 0 COt044Y, JAPES LEN 26. ~f 1 52.99 r3tom CdW1, JAPES LIN 2.~51 54.55 4 JAMFS ES ~LEII- 24. 24.48 S' .21 's:d9 Q~pp ACCOUNT 'OTAL 693.91 00 OD 4M. J1ATICE,QJBBIM 6J •45 YNNiDNN 11/01 676.E :TD 61:95 1,~ OOTT~~ 340. I M 1~1aD.t1 Y i1MME~ 110 ASTI ILMM , IN 9ro M. 0 ~a31:1 0831:19 'JOE PLOYD p TIM H MO 62 fa. ICTT 7AP'O.t R lf3i• iE0R6Ul A 3 1 1 YIIi988M 7,21 1 3, 210:17 f . 7 MS 411. 66~ 469 f J A 64: 66.M 9 7. J? 8899.61 .6.10 M.35 446:K PENL9ON, MS J A 9.62 71.62 44i. PE/RSfM, WS J A 236. E:3 /fA'RlW,~ IRS J A 9.OS 50.85 MOON, PM J A 26:64 ' 1.07 61.?1 19.64 72 PEARSOI, 1816 J A a: I 1.}}16, gyp, ACCOUNT rOTAL WSAGrJm ASSOCIATION 1, r.mma 11/29 703: 1 i 3W IS 346.. 2 811CIM K DALE wMNN AEG i "BBBNN So"m do. 60.02 YT S 321.27 MaLl JUKY 001 L0 A 6. YtBBBBBN 6: 6.06 wuiwm- p lumve , Y Y 11Y M 750:s 6%875:15 k i7 ,Z35000100 1988 THRM: 740000690 1985 118 TAX TRIAL *%I REAL MBE 263 PENALTY EFFE TIVE NEXT WWH RM IIE I ACfg~E 11TW O" 030E A IRATE TAK PAID PEN PAID AAA DUE PEN WE TOTAL Olc • I1 .I1 ~~MMM Y LW NV •.•r .u. 111 M .o.ur. M M ..r M ill l i IF 1111 IF! 444+11 H' J~ 1 { I i J I I i 1 -1 -A m 1 T. r~ I i ✓I r , 2516L/1589 NO. AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND AWWARDINORA SCONTRACT FOR THE PURCHASE OF MATERIALS EQUIPMENT SUPPLIES PROVIDING FOR THE EXPENDITGRE OF FUNDS THEREFORE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the city has solicited, received and tabulated competitive bids for the purchase of necessary materials, equip- ment, supplies or services in accordance with the procedures of 'M state law and City ordinances; and WHEREAS, the City Manager or a designated employee has reviewed and recommended that the herein described bids re the i lowest responsible bids for the materials, q P supplies services as shown iu the "Bid Proposals" equipment, submitted therefor; I and WHEREAS, the City Council has provided in the City Budget for the appropriation of funds be used for esheapproved a and the materials, equipment, supplies o h i accepted herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: That the numbered items in the following SECTION i. ~ numbere3-6~'de-for materials, equipment, supplies, or services, shown in the "Bid Proposals' attached hereto, are hereby I accepted and approved as being the lowest responsible bids for such items: BID ITEM AMOUNT NUMBER NO. VENDOR 9912 All Temple, inc. $ 539620.00 SECTION 11. That by the acceptance and approval of the above numbere tams of the submitted bids, the City accepts the offer of the persons submitting the bids for such items and as rees to purchase the materials, equipment, supplies or services in ` accordance with the terms, specifications, standards quantitiies and for the specified sums contained in the Bid Invitations, + Proposals, and related documents. 14 SECTION III. That should the City and persons submitting rittenndagrof the eement seas ita eresult of wish the formal witems enterVe into a-accepted i 1 K . a acceptance, approval, and awarding of the bids the City Manager s designated representative is hereby authorized to or h i rovSded the written contract which shall be attached hereto; p that the written contract is in accordance iestandthe terms, conditions, specifications, standards, quantit specified Proposal and related bid documents sums contained in the Bid herein approved and accepted, SECTION IV. That by the acceptance and approval of the above numbers toms of the submitted bids the City Council hereby 111 to o a t and in J ac tborizes the expenditure of funds there for in nt the -~1 accordance with the approved contract made pursuant thereto as authorized herein, approval shall become effective SECTION V. That this i•eme ate y upon its passage a PASSED AND APPROVED this 10th day of January, 1989• I 1 AT': EST: ER TER , CITY S CRETARY APPROVED AS TO LEGAL FORM: DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY BY: X111 i^^^^ PAGE TWO I V ~ I 3 DATE: JANUARY 10, 1989 CITY COUNCIL REPORT TO: Mayor and Members of the City Council FROMt Lloyd V. Harrell, city MorKwr SUBJECTr Eidt 9912 - Padmount Svitchgear RECOMMENDATION: We recommend this hid be awarded to the lowest bidder meeting specifi- cations, Temole, inc., in the total amount of $53,420.00, POE Denton, delivery in 18-20 weeks. Item I - 4 Units at $4,648.00 each a $ 19,888.09 Item 2 - 2 Units at $6,866.00 each ■ $ 13,732.00 SUMMARYs TOTAL S 53,620.00 This bid is for the purchase of padnount switcha;ear for the 4lectrical Distribution Department. This equipment is used in the new construe- tion and maintenance of the electrical distribution system. r The lessor price offered by Poleline would require additional fuse and 1 fittings. 1 BACKGROUND: Tabulation Sheet PROGRAMS, DEPARTMENT OR GROUPS AFFECTED: 1 Electrical Distribution Department I FISCAL iMPACTt This ourchase will he funded from Electric Utility Bond funds accor:nt number 611-008-0252-5422-9222. , Respect ly submitted: Lloyd V. Harre City Manager Prepared by: omes DE14 SE t1ANN NC ` E Title: BUYER I 1 Approved: i ~ 'Ttal PII I I I I I I I I 118 1 9912 1 1 1 1 1 I I I BIO 1111E ' PAOMOUNT~"""""'•..--•----- I I I 1 1 I I I ~I SYITCNfi£AR I I I i I I I I l OPENED 11...00 P,.M....................._...I PRIESTER I PRISSIER I CUMMINS I TEMPLE I ERAYBAR i NELSON I POLELINE I NOVEMBER 22, 1988 SUPPLY I ISUPFLY COMPANYI ELECTRIC i ELFaRIC 1 ELECTRIC I I ACCOUNT 1 611-008.4252-5422.9222 I I I I 1 I I I ..I.........` ................................I...-----------I..............I..............I I I I .i i.............. ......_.......I I I BTY I ITEM DESCRIPTION I VENDOR I VENDOR I VENDOR I VENDOR I VENDOR I VENDOR I VENDOR I { ...._..1.......• I•° .............................1..._......... T••••-••....._.I..............I.............. I 1 I 6 IPADMDUNT SYITCNGEAM 1 7,228 00 I .12,553.04 1 6,696,00 1 61648.00 I 21531.00 1 N0 BID t 61331.00 I 1 1 I I 1 I I 1 1 I 1 I FUSE AND FITTINGS 1 NIA i MIA I NIA I MIA I MIA I NO 010 1 624.00 1 1 1 1 1 1 1 1 1 1 1 2 1 2 IPADMOUNI SWITCHGEAR I 2,464.00 t 4,856.00 1 6,891.00 1 6,166.00 1 8,557.50 1 ND BID 1 61602.00 1 I I 1 I I I 1 1 1 1 1 I I FUSE AND FITTINGS I NIA I MIA 1 NIA I NIA i NIA I ND 111 I 624. D0 I 1 1 t I I 1 I 1 I t ~ I IF08 I DENTON I FACTORY I DENTON I UNION I DENTON I NO 110 1 DENTON I I I r 1 I 1 I I t I I IDELI V£RY 1 130 t 12-14 NKS 1 126 1 126 1 16 YKS I NO 010 1 14 1 I I 1 I 1 I I I 1 HERMS I NET 30 1 1 NET U 1 NET 30 1 NET 30 I NO 110 1 NET 30 1 I 1 1 I 1 I 1 I 1 I ~ I I,FB I SIC I RIE I sic I Sic I SAC I NO BID I ABC I I I i I 1 I t I I i I 1 1 I I I I I I I 1 I I I 1 i I I I I i s I w i f E f I~ I 1A f ~ 2516L/1589 Q NO. _ AN ORDINANCE ACCEPTING COMPETITIVE BIDS AND PROVIDING FOR THE AWARD OF CONTRACTS FOR PUBLIC WORKS OR IMPROVEMENTS; PROVIDING FOR THE EXPENDITURE OF FUNDS THEREFOR; AND PROVIDING FOR Ali EFFECTIVE DATE. 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 R or improvements described in the bid invitation, bid proposals and plans and specifications therefore; NOW, THEREFORE, i THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That the following competitive bids for the construct o-i ri o1 4ublic works or improvements, as described in the "Bid Invitations', "Bid Proposals' or plans and specifications attached hereto are hereby accepted and approved as being the lowest responsible bids: i BID NLMBER CONTRACTOR AMOUNT 9920 Landmark Company $2240103.00 SECTION II. That the acceptance and approval of the above 1 compet t vi-i TRTs 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, after notification of the award of the bid, SECTION III, That the City Manager is hereby authorized to execute all necessary written contracts for the performance of 4 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 apeci£ying the terms, conditions, plans and specifications, standards, quantities and specified sums contained therein. z~ s d I M, T w SECTION IV. That upon acceptance and approval of the above compet t ve a 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 V. That this ordinance shall become effective imme aupon its passage and approval. PASSED AND APPROVED this the 10th day of January, 1989. i PLAY STEPHENS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY I BY: I M 1 PAGE TWO r rJ ~J e DATE: JANUARY 10, 199 CITY COUNCIL REPORT TO. Mayor and Members of the City Council FROM: Lloyd V. Harrell, City MarwWr SUBJECT: BID/ 9920 - DENTON MUNICIPAL LAB RXPANSION/BUILDING RECOMMENDATION: J We recommend this bid be awarded to the low bidder i.andmark Company of Denton, Texas for $224,103.00 with 190 calendar days for construction. r SUMMARY: This bid is for the building expansion for the Municipal Laborstory. Architectural Collective, Mr. Gerald Stone is the principal architect on this project. The project was bid earlier on Bid 09696 and received on September 22, 1966. This bid was rejected as the low bidder did not submit a Bid Bond and the next low bidder did not submit a valid Bid Bond. This bid is GZ lower or $13,297.00 less than the first low unacceptable bid. A I BACKGROUND: Tabulation Sheet, Recommendations From Department and the Public Utility Board minutes. PROGRAMS DEPARTMENT OR GROUPS AFFECTED: J Completion of Lab Project and Lab Work. ' FISCAL IMPACTr There is no additional impact on the Government Funds. v Respect( ly/$Vbbmitted: w v Lloyff V. Harrell City M onager Prepared by: om j Title: PURCBASIMG AGENT A roveds I : J J.MARSflALt Itle. PURCRASINC AGENT t ~ I 1 I I I I I 6ID i 9920 1 1 1 1 1 1 I I I I 1 I SID liflf DEN10N MUNICIPAL LAB i1PANSION IDAVID SNAIRO, I DIR C051. I LANDMARK I CARDINAL ITEM, 61LLWORE I ..................................................I INC. I COMPANY ;DENTON, TEXAS ISUILDERS, INC,Ii CALVIN 1AKERI OPENED 2100 P.M, DECEMBER S3, I4BB I i I I I I ACCDUNr B I I I I ••-•---•--I i 1 1 L__.........._I _ i _._..__i.......-- •---•-•--.....i.............. ;._............I I i 1 QTY I ITEM DESCRIPTION i VENDOR I VENDOR i VENDOR I VE40DA I VENDOR I L........I ................................I....---•..._..I I.............. I I.............. I f I I I I I I I I (11ASE SID 1 242,000 1, 241,313 1 224,103 1 240,00 1 281,000 I + I I I I I I I I I I IALTERNATE I DELETED $ NS I NO I N8 I NB I NB ! I I I I I I I I ! I IALTERNATE 2 1 21637 1 21214 1 I,r30 1 21300 1 21700 1 I I I I I r I I I ]ALTERNATE 3 DELETED I NB I N8 I NB 1 N8 1 N8 I I I I I I I I I I IADDERDA RECEIVED I 3 1 3 1 3 1 3 1 3 1 I I I i I I I I I IDAYS CONSIKKIION 1 160 1 190 1 110 1 160 I 220 I I i I I I I I IBID BOND RECEIVED I YES I YES I YES I YES I YES I ~ I I I I I I I I r I I I 1 I I r I I I I I I I i j1 Y ~ 1 A MY I MEMORANDUM DATEe January 3, 1989 TOE Mr, John Marshall, Purchasing FROMi Mr. C. David Ham, Director Water/Wastewater Utilities SUBJECTi Municipal Laboratory Expansion i i At the December 21, 1988 meeting of the Public Utility Board, the PUB approved the low bid from Landmark Construction Company for the expansion of the municipal laboratory facility. Attached with this memorandum is a copy of the PUB minutes for this meeting. The Utility Department is requesting that this project be added as an agenda item to tKe January 10, 1989 meeting of the City Council. If you have any questions or need edditional Information please call. C. David Ham, Director I i labnxp fi~ a r ' !;hew s=uyg0sted P,hat th{.- lten b~? trabJLd far fut"'har di C:Zion at tl'e Utility Department Annual Planning Retreat. The Board atirsed. Q- CONSIDER CONTRAI:T WITH FF'EESE NICHOLS, INC. FOR PROFESSIONAL ENGINEERING SERVICES IN CONNECTION WITH THE DEVELOPMENT OF A TWENTY-YEAR MASTER FLAN FOR IMPROVEMENTS TO THE WASTEWATER TREATMENT PLANT Ham explained that state law requires that when monthly average flows of a wastewater treatment plant reach 75% of permitted flows, planning must be initiated. Denton's plant is now at 77% of permitted flow, When a plant reaches 90% of permitted flow, construction must be initiated or a permit application filed to amend the rated permitted flows. Ham recommended approval of the proposed agreement with Freese & Nichols, Inc. for planning of expansion of the wastewater treatment plant. Chew asked if we have been completely satisfied with Freese & Nichols. Nelson stated that their work with wastewater treatment plants is very good. Chew moved approval of the contract. Frady second. All ayes, no nays, motion carried. It. CONSIDER APPROVAL OF LOW BID FOR THE MUNICIPAL LABORATORY i I EXPANSIONL i Ham explained the need and urgency of this item. Ham added that the low bidder on this project was a Denton firm. Frady moved approval of the low bid of Landmark: Construction Co. for Phase I construction of the Mr.inicipal Laboratury expansion. Chew 4econd. All ayes. no nays, motion carried. 12. NEW BUSINESS The annual planning session was scheduled for Saturday. January 7, 1989, in the Civil Defense Room. 13. UTILITY DIRECTOR'S UPDATE Nelson advised the Board that notice of intent to file legislation creating the Upper Trinity Municipal Water District had been submitted 4 to authorities in thR State legislature. Nelson and the Board °oviewed the ad-vantages and disadvantages of the new agency. LaFo-te and L+tney strongly opposed the creation of the new agency, seeing it to be a threat to Denton's control of its own destiny. Nelson assured the Board that sufficient contralti and safeguards had been built into tho legislation to protect Denton. r r i r E i I I! t 1 a , Lj.:j~ T71=77= I IF 4,; of; ff; +1; IF +1 31 i t ~ lr f ORDINANCE NO. AN ORDINANCE AUTHORIZING THE EXECUTION OF CHANGE ORDER NO. 1 TO A CONTRACT BETWEEN THE CITY OF DENTON AND SUNMOUNT CORPORATIONt PROVIDING FOR AN INCREASE IN THE CONTRACT PRICE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on October 18, 1988, the City awarded a contract for I the construction of certain improvements to Woodrow Lane's Twenty- 1 four Inch Sewer Line Replacement in the amount of Twenty-one Thousand Eight Hundred Fifty Dollars ($21,850.00); and - WHEREAS, the City Manager having recommended to the Council that a change order be authorized to amend such contract with respect to the scope and price and said change order being in compliance with the requirements of Chapter 252 of the D)cal Government Code; NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF DENTON: SECTION I. That Change Order No. 1 to the contract between the City and Sunmount Corporation, a copy of which is attached hereto, in the amount of Twenty-one Thousand Eight Hundred Fifty Dollars ($21,850.00), is hereby approved and the expenditure of funds therefor is hereby authorized. SECTION II. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the 10th day of January, 1989. RAY STEPHENS, MAYOR j I ATTESTt JENNIFER WALTERS, CITY SECRETARY 1 APPROVED AS TO LEGAL FORMS I DEBRA A. DRAYOVTTCH, CITY ATTORNEY By l ti I 7 1 Y fA 1 January 10, 1989 CITY COUNCIL AGENDA ITEM ` TO: MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Lloyd Harrell, City Manager RE: CONSIDER CHANGE ORDER Ml, WOODROW LANE/BURNING TREE UTILITY RELOCATIONS, SECTION Y. RECOMMENDATION: The Public Utilities Board, at their meeting of December 21, 1988, recommended approval of Change Order fl. SUMMARY: Change Order 01 regards a deteriorated asbestos concrete 24" sanitary sewer main located acress Woodrow Lane near the Juvenile Detention Center. The line is over 40 years old and was not discovered as deteriorated until the contractor had ` begun excavation for the Woodrow Lane paving and bridge project, The Wastewater Master Plan calls for this main to be paralleled by a 24" sewer main between the years 1991 and 2000. Because the existing main is in such deteriorated shape and cannot be salvaged, a new 36" pvc sanitary sewer line is required to ` handle the total existing capacity plus the proposed capacity r required by the Master Plan. This Change Order involves only that portion of the 24" AC pipe that lays within the Woodrow Lane right-of-way. We will request that the remainder of the line be replaced during a future Capital Improvements Plan. BACKGROUND: The City Council awarded the contract to relocate utilities affecting the Burning Tree Drainage project on October 18, 1988, in the amount of $499693. This amount included all administrative fees related to Section Y of the Woodrow Lane Paving and bridge/burning Tree drainage project, Requested I Change Order 01 of $21,850 reflects a 4.4% increase, revising the original contract amount of $11,543. Ik ~ PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED: City of Denton, Denton Municipal Utilities, Publit Works Department, Sunmount Corporation, and Citizens. ~I r I ~ i L i R City Council ( Page 2 I FISCAL IMPACT: I FY b`J CIP Budgeted $100,000.00 Replace Sewer Line St Program Original Contract Amt Sewer $43,228.88 Water $ 6,464.12 F Total $49,693.00 Change Order d1 $21,850.00 M Revised Contract Amt $71,543.00 Amount Over(under) ($28,457.00) 1 Budget Total Amt Change Orders to Date $21,850.00 l Percent Increase (decrease) I of Original Contract Amount 4.4% i ` Source of Funds: Wastewater Collection Bonds 623-008-0471-9138 I R*0y---aa--r-r-eT"1 lysyl~r tto - ty Manager ` Prepared/Approved by, kos , xecut ve rector Department of Utilities ~Pi--- Exhibit I Change Order N1 II Project Location III Letter from Sunmount Corporation IV PUB Minutes of December 21, 1988 ' I 6275U:5-6 I~ 1 I CITY Or DENTON CHANGE ORDER 1. Division (Department) 2. Purchase Order No. Public Works (En ineerin 8772 3. Change Order No. 4. Name of Project S. Project Acct No. Sec. S w Ln 6. Data Prepared 1. Name and Address of Contractor-7. 1988 S. Description of Work Included in Contract Y I 9. Changes ordered and reason ordered (List !ndlVldual changes ast C, D, etc. I A. Relocate and replace deteriorated sever line on Woodrow Lane I 10. Bid Original Contract Revised Negotiated `r Contract Item Estimated Unit Original Revised Estimated C.O. Unit Changes No. Quantity Price Estimated Estimated Quantity Price Cost Cost A. Additio al Workt f B. Contrac Items and price on C. Attache sheet fro Sunmoun D. Corpora ton. Appro ed PVC L ne by Util ty Departm nt. Total Total 11, Origlrtal Contract Price _sea,RO~ nn Increase In Contract Price syi acn nn f NOW Contract Price -97t-%&"A-An L Decrease in Contract Price ` + 11. Contract time increased/decreased Dy~_daya. NOW Contract time days r THE AFOREMENTIONED CHANGE, AND WORK AFFECTED THEREBY, CONTRACT STIPULATIONS AND COVENANTS, IS SUBJECT TO ALL I ! 13, ISSUED FOR REASONS INDICATED ASOVEr action Supsrvisot Date 14. ACCEPTED BY CITY ENGtNEERr Slgna ure Title D« ` t i 15, ACCEPTED BY CC)V ACTORr ~ j2 i'2 [ a ( Signature Date 16a AASZSTANT CITY MANAGER Signature Tttle Date DIRECTOR Of UTILITIES II 8 grtltute ?iris Date CONDITIONS Of APPROVALt 11. PURCHASING/FINANCE Signature T111e Date COUNCIL APPROVAL (if needed) Date EXHIBIT., nroto i :.WlIW lllilll lillll ~I~MeVi ~ lL,//' • Oo ~ i WA f AA ~i Ir ®®v ! ` PROJECT LOCATION r.W. a ~ ~ o o I ' r~ EXHIBIT II it i i Y5P 1 F 1 L w+ P.O. BOX 1770 A' ~ ROANOKE, TEXAS 76262 SUYMUN, METRO 8 2741 17/430-0552 CORPORATION GENERAL CONTRACTORS December 6, 1988 Mr. Jerry Clark, City Engineer City of Denton 215 E. McKinney Denton, TX 76201 REFERENCE: WOODROW SEWER RELOCATION Our Mr. Clark: We have put together a price to relocate the 24 inch sewer line at i station -2+50 on Woodrow lane as requested, The new 36 inch line would be relocated to the south using either PVC or Hobas Pipe, Three new manholes would be required, two built ti the existing line and one on the new line. The following is a breakdown for Sumount to complete this work; , HO"S EN Pipe Materials $110000.00 9,750.00 6 foot Manholes - 3 each 4,900.00 41900.00 Bedding and Concrete 11100.00 16100.00 Labor, Equipment, Overhead 5 Profit 6 .0 6 100.00 TOTAL 321; If you have any questions, please feel free to call. Sincerely, SUNMOUNT CORPORATION Thomas A. Barber Plant Manager TRB/cs cc: AOR i EXHIBIT 3 # EXCERPT f' Public Utilities Board Minutes December 21, 1988 7. CONSIDER CHANGE ORDER #1, WOODROW LANE/BURNING TREE uc UTILITY Ham explained that a deteriorated asbestos concrete sanitary sewer main crossing Woodrow Lane collapsed durfng other construction, and would now need to be replaced at an additional cost of $21,850. Ham added that the entire sewer line, approximately one mile, would need to be replaced due to the deterioration. LaForte moved approval of the change order. Chew second. All 1 ayes, no nays, motion carried. I ~ III i I 1 I I I t 6276U:2 r, ti r Rij 11 H44~H 1111111 Ell= 1 it j 1 I 1 j no a III I m M. - - - - - - - - - - - - - - - min t 4 1 v l An. . ORDINANCE NO. AN ORDINANCE AUTHORIZING THE EXECUTION OF CHANGE ORDER NO. 2 TO A CONTRACT BETWEEN THE CITY OF DENTON AND SUNMOUNT CORPORATION; PROVIDING FOR AN INCREASE IN THE CONTRACT PRICE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on October 18, 1988, the City awarded a contract for the construction of certain improvements to Woodrow Lanets Fifteen Inch Sewer Line Replacement in the amount of Sixteen Thousand Seven Hundred Fifty Dollars ($16,750.00); and WHEREAS, the City Manager having recommended to the Council that a change order be authorized to amend such contract with respect to the scope and price and said change order being in compliance with the requirements of Chapter 252 of the Local Government Code; NOW, THEREFORE, { BE IT ORDAINED BY THE COUNCIL OF THE CITY OF DENTON: SECTION I. That Change order No. 2 to the contract between the City and Sunmount corporation, a copy of which is attached hereto, in the amount of Sixteen Thousand Seven Hundred. Fifty Dollars ($16,750.00), is hereby a funds therefor is hereby authorizedproved and the expenditure of 1 SECTION IT, That this ordinance shall become effective immediately upon its passage and approval. i PASSED AND APPROVED this the 10th day of January, 1989. 1 1 I RAY STEP-HENS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY i APPROVED AS TO LEGAL FORM: DEBRA A. DRAYOVITCH, CITY ATTORNEY BY: V~/1M i 1 v i a. DATE: JANUARY in, 1989 w CITY COUNCIL REPORT TO: Mayor and Members of the City Council FROM: Lloyd V. Harrell, City Manager SUBJECTt BID CONTRACT# 9893 - PURCHASE ORDER V a 87273 and 87728. r:NANGR ORDER WOODROW LANE AND BURNING TREE. RECOMMENDATION: We recommend this Change Order be approved for $16,750.00 to replace and relocate 15" sever line on Woodrow Lane. SUMMARYr This project was bid and awarded in October, 1988. The project is well underway and it was determined that after damaging the shallow sever line several times, the sewer line should be 1 replaced. This is the Change Order to allow Sunmount to replace the line and still continue the other construction vithout.adding anymore construction time. The amount shown on the Change Order is only for the utilities portion. The original total contract amount f was $1,513,097.49. BACKGROUNDt Change Order and Memo E PROGRAMS, DEPARTMENT OR GROUPS AFFECTED: j Utility Department and the stability of roadbed on Woodrow Lane affecting the City and the Citizens of Denton. FISCAL IMPACT, There is no additional impact on the General Tund Respectfully submitted: Lloyd V. H acre 11 City Manager Prepared byt 9 tile: PURCHASING ~AGKXT i Approvedi ATIO,rlnel JMARSAt, 3 IN0 GE MT A I. Division (Department! 2. Purchase der No. .3. Change Order No, -Public Works (Engineerin } v,.87728 Y_797-11 2 4. Name of Project 5. Project AcC! No. 6. Date Prepared Sec. 5 Woodrow b Burnin Tree 624-008-0471-9138 anuar j 1989 7, Name and Address of Contractor Sunmount Corporation P.O. Box 1770 Roanoke Texas 76262 E. Description of Work Included in Contract Relocate 15" Sewer Line - Woodrow Lane 9. Changes ordered and reason ordered (List individual changes age A, 8, C, D, ate. A. Relocate and Replace 15" Sewer Line on Woodrow Lane, (See Back-up Attached) 10. Did Original Contract Revised Negotiated Original Revised Contract Item Estimated Unit Estimated C.O. Unit Estimated Estimated Changes No, Quantity Price Quantity Price Cost Cost A. Additio al Worke ee backu informatio Be attache for contr ct price from C, Sunmoun Corporation, D, 71 543 88 293 Total Total 110 Original Contract Price _$71,5433 Increase in Contract price $16.750 Nev Contract Price 588,293 Decrease In Contract Price 120 Contract time increased/decreased Dy_ -0_ days. New contract time days I THE AFOREMENTIONED CHANOEp AND WORK AFFECTED TBERE$Ye I9 SUBJECT TO ALL CONTRACT STIPULATIONS AND COVENANTS. 13e ISSUED FOR REASONS INDICATED ASOVEe lei .8 ection supetvisar Date 14, ACCEPTED BY CITY ENOINEERe X--e C040_1~ r. Sign Cure Title Da e I 16. ACCEPTED BY CONTRACTORI Signature - Tile - Date lie ASSISTANT CITY MMAOER 81 a ure Title D' a(e l DIAECTOR OF UTILITI m t signature Title Data a^ CONDITIONS OF APPROVALI f 17. PURCBAAINO/FINA S J signature Title Date COUNCIL APPROVAL (If needed) Date n4ee/ 3 h CITY of DENTON, TEXAS MUNICIPAL BUILDING / DENTON, TEXAS 76201 / TELEPHONE (817) 566.820 { MEMORANDUM DATE: December 30, 1988 TO: Rick Svehla, Deputy City Manager FROM: David Salmon, Engineering Associate 11 SUBJECT: Change Order for Sewer Relocation on Woodrow,Lane Due to an extremely irregular horizontal and vertical alignment, the existing 15" sewer line along Woodrow Lane unexpectedly turned up to be under the proposed pavement at a shallow depth. The main has already been damaged several tines during the construction process due to Its age and shallow cover. It has been deemed necessary by the Water/Wastewater Division of the Utilities Department and the Engineering Division of Public Works to replace the 15" sewer main. We have prepared a change order in the amount of $16,750.00 for your consideration. The $16,750.00 will include installing 646 feet of 1S" PVC { sewer main, removing the old main, installing a 36" x 24" wye connection and modifying two existing manholes. ! Construction in the immediate area of the sewer line can not resume until either the existing clay the sewer line is replaced, or a very expensive concrete cap is placed over the line. The latter would leave both the street and the sewer line with questionable structural integrity. Please contact me if you need further information. 0 4 C I { \ a mon' j Engineering Associate 11 0613E f ~ { j i r MEM0RANDUM DATE: Uecember 19, 1988 TO: Lee Allison, Engineering Administration FROM: David Salmon, Engineering Associate II~P SUBJECT: Sewer Relocation on Woodrow Lane 1 As has been brought to your attention, it will be !ieecssary to relocate a portion of the 15" clay tile sewer line in Woodrow Lane in order to facilitate the street's reconstruction. This sewer line is very old and therefore had no "as-built" plans for us to consult during our design of Woodrow Lane. As is common procedure, we assumed a straight line horizontal and vertical alignment between existing manholes. This indicated that the sewer line would be behind the proposed curb and would have sufficient depth. In actuality, the line varies quite a bit from a straight alignment and is under the proposed pavement at a shallow depth. We have redesigned the portion of the sewer that is in conflict and seek your approval of the design so that we may start k inking the plans. Also, time is of the essence as we would like to avoid the contractor charging us for delays on the street project. We feel that this change could be included in the change order for the replacement of the 24" transite line. You will notice in the list of estimated quantities an item for removal of the existing line. W'e feel this is necessary due to the line being clay tile and having such shallow cover. Enclosed is a list of estimated quantities. We would like to use it as soon as possible to pet a price from the contractor. ITEM t,~AN:IITY NOTE 1S" PVC Sanitary Sewer 66S if Tie-in new 15" sewer 1 ea Includes all labor and f to existing manhole materials necessary to per- form tie-in Remove existing 1S' 42S if Is accurate + or - $0' clay the sewer 0613E l y F + r P 0 BOX 1770 ROANOKE, TEXAS 76262 R~~~IVP 59 SUNMOUNT A171648.2'a, JAN METRO 8171430-0552 , CORPORATION J GENERAL CONTRACTORS 1 December 30, 1988 Mr. Jerry Clark City of Denton 215 E. McKinney Denton, T% 76201 REFERENCE: WOODROW PAVING AND DRAINAGE Dear Mr. Clark: We have worked up prices to install a new 15 inch sewer line from the new manhole on the 36 inch line back to the existing I manhole at station -9+100. With the 2 sack backfill the price is $20,475.00. Without the 2 sack backfill the price is $16,750.00. These prices include the fitting and sewer service relocations as well as removal of the old line. j Sincerely, SUNMOUNT CORPORATION j Thomas R. Barber Plant Manager TAB/cs cc: SLM J~ 1 I I i T T-1 j 1 1If I f I II i r I i I I i 1 CITY of DENTON, TEXAS MUNICIPAL BUILDING / DENTON, TEXAS 78201 / TELEPHONE (8 17) 560.8307 Office of the City Manager 1 `1 E M 0 R A N U li M TUI Llovd V. Harrell, Citv Manager PROMI Rico Svehla, Deputy City Manager - DATEI January 6, 1989 SUBJECTI Additional Information on the Burt Mahon Lease i i i At the last Council meeting, several Council members had questions about specific information in relation to the Burt Mahon lease. I have included a number of pieces of information to address those 1 questions. I ~ The first question concerned using the CIP escalating clause, and what would the lease be now if we had started it five years ago, Attached is a document showing the difference in rent each year. As you can see, the rent would increase some $222 or about 10% over, the initial lease payment. Another way of looking at that is the current lease is 8 cents a square foot. An approximate 10% increase would make it go to almost 9 cents a foot. The second question concerned how we arrived at the 8 cent per foot factor. I have included two pages out of the Airport Master Plan that was approved by Council several years ago. The first is a drawing of the Airport with particular area designations on the Airport. You will note that the Mahon lease is in Area 03 toward the north end of the Airport. Looking at the accompanying table, you will note that Land Class 03 would be at that 8 cent per square foot value since there are no improvements in this area at versus the southeast corner, Finally, there was a question of where the projected CIP improvements to the Airport are located. I have included a map in the back up that J has numbers from 1 to 13 on it, Those numbers correspond to the written documentation that is in the back up as to each of the improvements that are in the CIP program. There is one exception to that which is number one, the overlay on the runway ttself. We've f been advised by the FAA during the last year or so of the need to do j that. Our strategy for funding on that would be to submit an J application for 90110 funding and submit our 102 funding as part of the budget process this coming year. The rest of the projects are included in the proposed CIP funding for the early 1990'x, F i r Lloyd V. Harrell January 6, 1988 Page 2 If you or the Council has any further questions, we would be happy to try and answer them at your pleasure. 4~ Rick Svehl a - L'Ieputy City Manager FSibw Attachments I h i l c , a Starting from base year using base amount into base January, Annual Rental Adjustments Base amount 2150.48 CPI-U divided multiplied 1 YEAR January October into base by January October { 1984 198X f e 1984 322,7 333,7 6,6640223 2223,78 1985 343.9 6,6640223 2291,76 1986 345,9 6,6640223 2305,09 1987 360,6 6,6640223 2402,38 1988 370.0 6,6640223 2465.69 i .Cl IA .~lJ v C ~ ¢ ~I ! ytLGy41 J }L O ® 1 • L' ' _Q] '""44CC 41 . 000 . . 3 N co .p ig w 7 i{{i is to • : • I ' tl N .g ' CV• M C%j II r , WAD% M i.._ - - r¢ 14 I. R ! 8,15 IULJNWUI•.•...••.g ` r . k a:l 5. The term of the lease, which is an important factor in deter- mining lease rates. The airport administration must dettzmi.ne whether or not a longer term lease at lower rates is desirable for certain types of uses. It must also be recognized, however, that in marrf cases, financing for major improvements -is possible only through a long term leass (20 years, or more) and the les- see/developer may require some form of inventive to make a larger investment that will ultimately benefit the airport and the camamity. Gnxmd Lease Paten Table 8.2 shows the average ground lease rates that could be established at Denton Municipal Airport, by land classification. There are also variations possible such as rentals or leases of improved properties, reimbursements for infrastructural improvements for additional facility construction# etm The recommended locations of the land use classification areas are identified in Figure 8.2. UM 8.2 E`EW Op 7MPPJ0VV11r.F 5 ; I Um CWS NCI SCZo MINO[2 M#1.TCR I N/A N/A N/A N/A 11 010 .12 .14 .20 III 408 .10 .12 .16 IV .OS 608 110 .14 It is strongly recommended that a competent leasing or real estate development firm be consulted to further define the leasing policies and idde Denton provi further guld~ the adeterminatico cot lease rat~ess.rt and to I 8.14 } 4 t f } PART IV - PROGRAM NARRATIVE STATEMENT Denton Municipal Airport currently serves as a reliever airport for the Dallas/Fort Worth Metroplex area. An on going effort is being made to meet the current facility demands as well as plans for future growth. In order to meet to be these made. The npra safe oposed and efficient manner, improvements project are several as follows- need ITEM 1 - OVERLAY RUNWAY 17/35 ITEM The existing runway pavement is showing signs of distress. In order to provide adequate strength to support the aircraft using the facility as well as to provide a waterproof all-weather surface it is necessary to overlay the 150'X 5000 runway and restore the pavement markings. ITEM 2 - ACQUIRE LAND FOR CLEAR ZONES The existing approach to runway 17 is a 50:1 precision approach. The City already controls most of the clear zone. It is necessary to acquire the remaining 24.7 acres of land in order to ensure that the approach remains obstructed. j ITEM 3 - SEAL TAXIWAYS AND APRON The existing taxiway and apron pavement surfaces are showing signs of i distress. In order to protect the pavement from further deterioration and provide a waterproof all weather surface, it is necessary to seal coat the taxiways and aprons. ITEM 4 - DRAINAGE I14PROVEMENTS Much of the airport drainage is piped through metal pipe that was installed when the airport was built in the late 1940 s. Much of this pipe is collapsing or rusting away causing safety and erosion problems. As the airport expands, more of this pipe will be covered over increasing the cost coremove ncrete the n*tal repair replace replacement. it c with t either Therefore, pipe pipe. pen e channel drainage or to ITEM 5 - NORTH HOLDING APRON f A new 250' X 100' holding apron is proposed that will be located on the east j side of the north taxiway. The holding apron is needed tor duce a place unnecessary delays and reduce taxiway occupancy time by providing off the taxiway for engine run-ups. I 1 I. I 3 a v ITEM 6 - ACQUIRE LAND FOR CLEAR ZONES A utility parallel runway is proposed to meet the airport's future capacity requirements. The runway is planned to have visual approaches only. An addition 13.5 acres of land is needed to adequately protect the clear zone for this runway. In addition, a 1000 foot extension is planned for the south end of Runway 17/35. When the extension is constructed, en additional 31 acres will be required for the clear zone on this approach. ITEM 7 - EXTEND RUNWAY 17/35 - 1000' In order to provide sufficient runway length to adequately serve the existing jet and turboprop traffic, and at the same time attract additional traffic, Runway 17/35 must be extended 1000 feet to the south. This extension will include grading, paving and marking. ITEM B - EXTEND MIRL When the runway is extended, the threshold lights will need to be relocated and runway light system extended in order to fully utilize the runway for , night operations. I ! ~ ITEM 9 - PARALLEL TAXIWAY EXTENSION AND HOLDING APRON In order to maximize the safety and efficiency of the runway, it is I, necessary to extend the parallel taxiway when the runway is extended. To enhance the capacity of the taxiway by reducing taxiway occupancy time, it is necessary to construct a holding apron. ITEM 10 - TAXIWAY LIGHTING In order to increase taxiway safety and decrease taxiway occupancy time 1 during night operations, it is necessary to install taxiway lighting is the form of MITL system. 1 ITEM 11 - COMMERCIAL SERVICE APRON In order to isolate the commercial service aircraft parking area from the general aviation parking area as a means of increasing passenger safety, it is necessary to construct additional apron space. ITEM 12 - FBO AREA PAVING In order to provide additional capacity for aircraft parking, as well as to provide access to the designated FBO area, it is necessary to pave an additional area 160' X 280 . i I 2. i ,rrr ! L ~ , ITEM 13 - EXECUTIVE JET APRON Because of the peculiar operating characteristics and generally greater physical size of Jet aircraft, it is recommended that the parking and hangar facilities for jet aircraft be isolated from that needed for piston aircraft. Therefore, it is necessary to pave an access taxiway and apron for jet aircraft. ITE14 14 - ROAD ACCESS TO SOUTH HANGAR ARIA In order to provide a hard surfaced access road to hangars for emergency and service vehicles, as well as to provide a portion of the perimeter road, it is necessary to construct a 32' X 1600' access road. ITEM 15 - TAXIWAY TO INDUSTRIAL AREA In order to provide air access to a designated industrial area on the airport property, it is necessary to construct a 40' X 800' paved taxiway. { I E I I I I 1 i i 3. SI _ 2593E 3,'. b r I ORDINANCE NO. AN ORDINANCE APPROVING A LEASE BETWEEN THE CITY OF DENTON AND BERT E. MAHON AND PROPERTY MUNICIPAL AIRPORT, DENTON, TEXAS AND PROVIDING THE OF IAN EFFECTIVE DATE. WHY'REAS, the City of Denton hapertain Texas; located at the Denton Municipal Airport, WHEREAS, the City of Denton desires to lease the property for aircraft storage hangar and - constructing aciand iities maintaining and associated WHEREAS, Bert E. Mahon and Mary L. Mahon desire to lease the land at the airport on the terms continued in the attached lease; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: ` SECTION I. That it approves the lease of airport property to thetattached pleaand Mar L. Mahon in se and the City Manager o isa authorizedhtot execute the lease on behalf of the city. SECTION Ii. That this ordinance shall become effective imme ate y upon its passage and app Passed and Approved this the day of 1989. I i ATTEST: JENNIFER W TERS, C1 S CRET C APPROVED AS TO LEGAL FORM: { DEBRA A. DRAYOVITCH, CITY ATTORNEY BY: C f I ~ I r AIRPORT LEASE BETWEEN THE CITY OF DENTON AND BERT c MAHON ND MARY L MMQ This agreement, hereinafter referred to as "Lease" is made and executed this day of , 1989, at Denton, Texas, by and between the CITY OF DENTON, a municipal corporation of the State of Texas, hereinafter referred to as "Lessor", and BERT E. MASON AND MARY L. MASON, husband and wife, having their residence at 1803 Concord Lane, Denton, Texas, hereinafter referred to as "Lessee". WITNESSETH: WHEREAS, Lessor now owns, controls and operates the Denton Municipal Airport ("Airport") in the City of Denton, County of Denton, State of Texas; and WHEREAS, Lessee desires to lease land on the Airport and construct and maintain an aircraft storage hangar and associated facilities thereon; i ~ NOW, THEREFORE, in consideration of the premises and the mutual covenants contained in this Lease, the parties agree as follows: I. CONDITIONS OF LEASE NOTWITHSTANDING ANY LANGUAGE TO THE CONTRARY HEREINAFTER CONTAINED, THE LANGUAGE IN PARAGRAPHS A THROUGH C OF THIS SECTION SHALL BE BINDING. A. Non-Discrimination. The Lessee, for itself, its personal representatives, successors in interest, and assigns, as t part of the consideration hereof, does hereby covenant and agree as a covenant running with the land that: (1) In the construction of any improvements on, over, or under such land and the furnishing of services thereon, no person on the grounds of race, religion, color, sex, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination. (2) The Lessee, shall use the Premises incompliance with all requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, 3 Subtitle A, Office of the Secretary, Part 21, Non- discrimination in Federally Assisted Programs of the MASON LEASE/Page 1 i i I Department of Transportation-Effectual of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. In the event of breach of any of the above non-discriminatory covenants, Lessor shall have the right to terminate the Lease and to reenter and repossess said land and the facilities thereon, and hold the same as if said Lease had never been made or issued. This provision does not become effective until the procedures of 49 CFR Part 21, as amended, are followed and competed, including the expiration of appeal rights. H. Public Areas. (1) Lessor reserves the right to further develop or improve the landing area of the Airport as it sees fit, regardless of the desires or view of the Lessee, and without interference or hindrance. (2) Lessor reserves unto itself, its successors and assigns, for the use and benefit of the flying public, a right of flight for the passage of aircraft above the surface of the Premises described herein, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft now known or hereafter used, for navigation of or flight in the said airspace, and for use of said airspace for landing on, taking off from, or operating on the Airport. (3) Lessor shall be obligated to maintain and keep in repair the landing area of the Airport and shall have the right to direct and control all activities of Lessee in this regard. (4) During time of war or national emergency, Lessor shall have the right to lease the landing area or any part thereof to the United States Government for military or naval use, and, if such lease is executed, the provisions of this instrument insofar as they are inconsistent with the provisions of the lease to the Government, shall be suspended. (5) Lessor reserves the right to take arty action it considers necessary to protect the aerial approaches of the Airport against obstruction, together with the right to prevent Lessee from erecting, or permitting to be erected, any building or other structure on or adjacent to the Airport which, in the opinion of the Lessor, would limit the ' usefulness or safety of the Airport or constitute a I1 hazard to aircraft or to aircraft navigation. MAHON LEASE/Page 2 I I i I i rA J t g (6) This Lease shall be subordinate to the provisions of any existing or future agreement between Lessor and the United States or agency thereof, relative to the operation or maintenance of the Airport. II. LEASED PREMISES Lessor, for and in consideration of the covenants and agreements herein contained to be kept by Lessee, does lease to Lessee, and Lessee does hereby lease from Lessor the tract of land as shown in Attachment "A", attached hereto and incorporated herein by reference, described as follows: All that certain tract or parcel of land situated in the Thomas Toby Survey, Abstract Number 1285, Denton County, Texas, and being part of a tract shown by deed to City h of Denton, recorded in Volume 304, Page 503, Deed Records of Denton County, Texas, and being more particularly described as follows: BEGINNING at a set half-inch rebar at a point north 131 39' 31" east 229.68 feet from a concrete monument marked , DTO-B-1979; THENCE north lQ 33' 09" east a distance of 180.0 feet to a point for corner; ` THENCE south 880 14' 51 east a distance of 110.74 feet to a point for corner; THENCE south 212 45' 54" east a distance of 195.52 feet 'I to a set half-inch rebar for corner; THENCE north 882 33' 54" west a distance of 188.24 feet to the Point of Beginning and containing 0.6171 acres of land (or 26,881.03 square feet). For the purposes of this Lease, the term "Premises" shall mean the property located within the land described above. J 4 III. TERM ~ I The term of this Lease shall be for a period of twenty-five I (25) years, commencing on 15th day of January, 1989, and continuing through the 14th day of January, 2014, unless earlier terminated under the provisions of this Lease. Lessee shall have ~I the right and option to extend the term of this Lease for two additional five (5) year terms after the expiration of the initial twenty-five (25) year term. Should Lessee desire to exercise MAHON LEASE/Page 3 ~CC I 1 I either such option, Lessee shall give written notice thereof to Lessor at least one hundred eighty (180) days prior to the expiration of the initial term or first additional five-year term of this Lease, whichever the case may be. In the event Lessee fails to give written notice within the required time, the option to extend shall automatically terminate. In the event Lessee timely exercises the option to extend, this Lease shall be extended for an additional five-year term upon the same terms and conditions provided for in this Lease. IV. RENTALS AND PAYMENTS Lessee covenants and agrees to pay to Lessor, as consideration for this Lease, payments and rentals as follows: A. First Year Rent. Lessee shall pay to the Lessor rent for the use and occupancy of the Premises for the first year of this Lease, on or before January 15, 1989, the sum of eight cents (80) per square foot per year, for a total of Two Thousand One Hundred Fifty Dollars and Forty-eight Cents ($2,150.48). B. Annual Rental Adjustments. For subsequent years the yearly rental shall be based on the All Urban Consumer Price Index (CPI-U) for the Dallas/Fort Worth, Texas, Standard Metropolitan Statistical Area, as compiled by the U.S. Department of Labor, Bureau of Labor Statistics, using 1967 - 100 as the base period. The rental for each year subsequent to the initial year of this Lease, including any year in any additional term provided for in this Lease, shall be computed by dividing the sum of $2,150.48, the amount of rent for the initial year of the Lease, by the index number for January 1989, the first month of the initial year of the Lease, then multiplying that amount by the index number for the month of October in the year immediately preceding the initial month of the subsequent year of the Lease. Lessor shall notify Lessee of the rental amount to be paid for each subsequent year of the Lease at least thirty (30) days prior to the beginning of each subsequent year. The annual rental so calculated for each subsequent year shall be paid annually as provided herein. C. Payment and Penalty. All payments made hereunder by Lessee shall be made to Lessor at the offices of the Finance Department of the Lessor of Denton, Accounts Receivable, 215 E. McKinney, Denton, Texas 76201, unless Lessee is notified to the contrary in writing by Lessor. All yearly rental payments shall be due and payable in advance on or before January 15 of each year and shall be paid by Lessee without demand or notice from Lessor. All rental amounts paid by Lessee after the twenty-fifth (25) day of January in the year due will be delinquent and shall include an additional monetary amount (penalty) which shall equal five percent (5%) of 9 the annual rental amount due. Failure of Lessee to pay the five MAHON LEASE/Page 4 E I ~ { I I t h i~ i percent (5%) monetary penalty on delinquent rent shall constitute an event of default of this Lease. V. RIGHTS AND OBLIGATIONS OF LESSEE A. Use of Premises. Lessee is granted the right to use the Premises for the storage, maintenance, fueling and repair of aircraft owned and operated by the Lessee and Lessee's family or invitees. Lessee may not use any portion of the Premises for any use not authorized by this Lease, including any industrial, commercial or retail business or any other business operations which furnish or provide any product or service to the general public or other lessees of Airport property. No permanent dwelling or domicile may be built, moved to or established on or within the Premises nor may the Lessee, its tenants, invitees, or guests be permitted to reside or remain as a resident on or within the Premises or other Airport Premises. B. General Access to Premises. Subject to the reasonable rules, regulations, or directives of Lessor, Lessee -shall, in common with others so authorized, have the nonexclusive right and privilege over and through the Airport property and the right of ingress to and egress from the Premises for its employees, agents, guests, and invitees, suppliers of materials and furnishers of services. C. Standards. During the Lease term, Lessee shall comply with the following requirements and standards: (1) Address. Lessee shall file with the Airport Manager and keep current its mailing address, telephone number(s) and contacts where its authorized official can be reached in an emergency. (2) List of Tenants. Lessee shall file with the Airport Manager and keep current a list of any tenants or sublessee authorized by this Lease and shall contractually require its tenants and sublessee to abide by the terms of this Lease. Lessee shall promptly enforce its contractual rights in the event of a default of such covenants. (3) Utilities. Taxes And Fees. Lessee shall meet all expenses and payments in connection with the use and occupancy of the Premises and the rights and privileges herein granted, including the timely payments of 4 utilities, taxes, permit fees, license fees and assessments lawfully levied or assessed. Lessee herein agrees to timely pay to all lawful taxing authorities an I ad valorem property tax on all improvements constructed MAHON LEASE/Page 5 I I I I I rA i 9 by the Lessee on the Premises, and to comply with all tax laws pertaining to the Premises, including those promulgated in the future. (4) Rules Reaulationet and Restrictions. Lessee shall comply with all laws, codes, ordinances, rules, and regulations, either existing or those promulgated in the future, by J the Lessor, the County of Denton, the State of Texas, the l United states of America, and the Federal Aviation Administration, or their successors applicable to the Premises or use thereof. Lessee's use of the Premises shall at all times be in compliance with and subject to any covenants, restrictions, and conditions of record pertaining to the use and occupancy of the Premises. Lessee shall not operate or permit the operation of any transmitter devices, electrical signal producers, or machinery on the Premises which could interfere with the electronic aircraft navigation aids or devices located on or off Airport property. Lessee shall not be permitted to engage in any business or operation on the Premises which would produce obstructions to visibility or violate height restrictions as set forth by the Federal Aviation Administration or the Lessor. i (5) Height Restriction And Airspace Protection. The Lessee agrees for itself, its successors, and assigns to restrict the height of structures, objects of natural j growth and other obstructions on the Premises to a height J as established in City of Denton Ordinance 81-1, as the same may be amended from time-to-time. The Lessee also agrees for itself, its successors, and assigns to prevent any use of the Premises which would interfere with landing or taking off of aircraft at the Airport, or otherwise constitute an airport hazard. Lessee hereby forfeits all claims to aviation rights over the Premises. (6) Maintenance. Lessee shall be responsible for all maintenance and repair of the Premises, including buildings, structures, grounds, pavements, and utilities. Lessee shall be responsible for grass cutting, collection and removal of trash and for such other maintenance requirements as may arise. Lessee agrees to keep the Premises, together with all improvements, in a safe, clean and attractive condition at all times. Lessee shall not change the original color or texture of the i exterior walls of any structures or improvements without the written consent from Lessor. (a) ~irtina of Buildings. During the original term of this Lease and during each extension, Lessor shall i MAHON LEASE/Page 6 i V a n have the right to require, not more than once every five years, that the exterior of each hangar or building located on the Premises be reviewed by the Airport Board for the purpose of determining whether painting of the exteriors of such buildings or hangars is necessary. If the Airport Boar' determines painting is necessary, it shall furnish a recommendation to this effect to the City Council. The Council, may, upon the Board's recommendation, require Lessee to repaint said exteriors according to Lessor's specifications (to specify color of paint, quality of paint, number of applications, quality of workmanship and the year and month in which each hangar or building is to be painted, if needed). Lessee shall complete the painting in accordance with such specifications within aix (6) months of receipt of notice from Lessor. Lessee agrees to pay all costs of the required painting. Failure of Lessee to complete the painting required by Lessor's City Council within the six (6) month period shall constitute Lessee's default under this Lease. (b) Storage. Lessee shall not utilize or permit others to utilize areas on the Premises which are located on the outside of any hangar or building for the storage of wrecked or permanently disabled aircraft, aircraft parts, automobiles, vehicles of any type, or any other equipment or items which would distract from the appearance of the Premises. (7) Quit Possession. Lessee shall quit possession of the Premises at the end of the primary term of this Lease or any renewal or extension thereof, and deliver up the Premises to Lessor in as goof condition as existed when possession was taken by Lessee, reasonable wear and tear excepted. (8) Chemicals. Lessee shall properly store, collect and dispose of all chemicals and chemical residues; properly store, confine, collect and dispose of all paint, including paint spray in the atmosphere, and paint products; and comply with all local, state and federal laws and regulations governing the storage, handling or disposal of chemicals and paints. Lessee shall not utilized, store, dispose, or transport any material, F fluids, solids or gaseous substances on the Premisea which are considered by the Environmental Protection Agency to be a hazard to the health of the general public and undertake any activity on the Premises that would produce noxious odors. MAHON LEASE/Page 7 f r (9) Siang. Lessee shall have the right, at its own expense, to place in or on the Premises signs identifying Lessee. The signs shall be of a size, shape and design, and at a location or locations, approved by the Lessor and in conformance with any overall directional graphics or sign program established by Lessor on the Airport. The signs shall he maintained in repair. Notwithstanding any other provision of this Lease, the signs shall remain the property of Lessee. Lessee shall remove, at its expense, all lettering, signs and placards so erected on the Premises at the expiration of the term of this Lease or extensions thereof. (10) Use of Runways and Taxiways. That because of the present sixty thousand (60,000) pound continuous use weight bearing capacity of the runway and taxiways of the Airport, Lessee shall limit all aeronautical activity including landing, take-off and taxiing, to aircraft having an actual weight, including the weight of its I fuel, of sixty thousand (60,000) pounds or less, until such time that the runway and designated taxiways on the Airport have been improved to handle aircraft of a j greater weight, Based on qualified engineering studies, the weight restrictions and provisions may be adjusted up or down by Lessor and Lessee agrees to abide by any such changes or revisions as such studies may dictate. "Aeronautical Activity" referred to in this clause shall include that activity of the Lessee, its agents, subcontractors, and invitees. Should Lessee negligently disregard the provisions of this section, Lessor may immediately terminate this Lease. Lessee agrees to pay to Lessor upon demand for any damage, as determined by Lessor, to Airport property that results from a violation of this section. 1 (11) parkins. The parking of motor vehicles on Airport J property by Lessee, Lessee's guests or invitees, shall be subject to any regulations, restrictions or directions imposed by Lessor. 1 C. Connection to Utilities. Lessee may connect to any I, existing water mains serving the Premises, in accordance with and upon payment of any tap or connection fees, as specified by Lessor's ordinances applicable to utility customers, provided, however, Lessee shall not be liable to Lessor for any water pro rata payments as a result of the connections made. D. Abatement of Violations. Should Lessee violate any law, { rule, restriction or regulation of the Lessor of Denton or the i Federal Aviation Administration, or should the Lessee engage in or MAHON LEASE/Page B 1 i i r permit other persons or agents to engage in activities which could produce hazards or obstruction to air navigation, obstructions to visibility or interference with any aircraft navigational aid station or device, either airborne or on the ground, then Lessor shall state such violation in writing and deliver written notice to Lessee or Lessee's agent on the Premises, or to the person on the Premises who are causing said violation, and upon delivery of such written notice, Lessor shall have the right to demand that the person responsible for the violation cease and desist from all such activity creating the violation. In such event, Lessor shall have the right to demand that corrective action, as required, be commenced immediately to restore the Premises into conformance with + the particular law, rule or aeronautical regulation being violated. Should Lessee, Lessee's agent, or the person responsible for the ` violation fail to cease and desist from said violation and to immediately commence correcting the violation, and to complete said corrections within twenty-four (24) hours following written notification, then Lessor shall have the right to enter on to the I Premises and correct the violation, and Lessor shall not be responsible for any damages incurred to any improvements on the Premises as a result of the corrective action process. LeFsov shall submit an invoice to Lessee for the cost of the repairs and Lessee shall pay said invoice within thirty (30) days. ! E. Record{na Qf Lease. Within thirty (30) days after the M E date of execution of this Lease, Lessee shall at its own expense E record a copy of this Lease in the Real Property Records of Denton County, Texas, a copy of which recorded lease shall be provided to Lessor. ` VI. RIGHTS AND OBLIGATIONS OF LESSOR Within ninety (90) days of the l A. yehicu ar Access I effective date of this Lease, Lessor shall construct, at Lessor's { cost, a vehicular access road from the existing road to the boundary of the Premises, in the approximate location as shown in Attachment "A". The road shall be of a minimum width of twenty (20) feet and shall be of tar and chip gravel, or other appropriate materials determined by Lessor. Lessor shall be responsible for j the maintenance of the road during the Lease term. 4 B. Peaceful Enjoyment. That on payment of rent, fees, and performance of the covenants and agreements on the part of Lessee to be performed hereunder, Lessee shall peaceably hold and enjoy h the Premises and all rights and privileges herein granted. 1 C. Compliancg. Lessor warrants and represents that in the establishment, construction and operation of the Airport, that Lessor has heretofore and at this time is complying with all existing rules, regulations, and criteria distributed by the I MAHON LEASE/Page 9 s r" Federal Aviation Administration, or any other governmental authority relating to and including, but not limited to, noise abatement, air rights and easements over adjoining and contiguous areas, over-flight in landing or takeoff, to the end that Lessee will not be legally liable for any action of trespass or similar cause of action by virtue of any aerial operations over adjoining property in the course of normal takeoff and landing procedures from the Airport. Lessor further warrants and represents that at all times during the t9rm hereof, or any renewal or extension of same, that it will continue to comply with the foregoing. C. Easements,, Lessor shall have the right to establish easements, at no cost to Lessee, upon the Premises for the purpose of providing utility services to, from, or across the Airport property or for the construction of public facilities on the Airport. However, any such easements shall not interfere with Lessee's use of the Premises and Lessor shall restore the property to its original condition upon the installation of any utility services on, in, over or under any such easement at the conclusion of such construction. Lessee shall not have the right to levy fees, charges, or receive any compensation for any exercised right of easement by Lessor or Lessor's authorized agent. i F VII. LEASEHOLD AND OTHER IMPROVEMENTS A. Improvements by Lessee. Lessee may construct upon the Premises, at its own cost and expense, an aircraft storage hanger with attached aircraft maintenance and repair shop, office and pilot's lounge area, bathroom facilities, a covered open-air pavilion and other buildings, hangars, structures, and leasehold improvements that Lessor and Lessee mutually agree are necessary for the use of the Premises authorized by this Lease. B. Rewired Plat and Building Plans. Lessee shall, prior to constructing any improvements on the Premises, submit to the Lessor for its approval, a plat of the property and the detailed construction and building plans and specifications for the proposed improvements. The required plat and plans shall be submitted in the form and manner specified by Lessor's ordinances and Lessee shall, at the time of submission pay all processing, permit, and approval fees applicable thereto, as specified by Lessor's ordinances. The plat submitted shall conform to regulation and requirements of Lessor's Subdivision and Land Development Regulations. Any building, hanger, or other improvement plans and specifications submitted for initial construction, or any additional improvements to be made thereafter, shall conform to the following reSriirements: a (1) Buildings, hangers, or structures shall conform with and be compatible with the overall size, shape, color, MAHON LEASE/Page 10 i I quality, design, appearance, and general plan of the program established by the Lessor's Master Plan for the Airport, as approved by the City Council, copies which are on file at the office of the Airport Manager and the City Secretary. (2) The regulations and requirements of the Lessor's Building; Fire, Electrical, Plumbing, and other applicable Codes and ordinances of Lessor applicable to the improvements to be made. (3) All buildings, including hangers, shall be designed and constructed so as to have an anticipated life of at least thirty-five (35) years. _ (4) Any rules or regulations of the any Federal or State agency having jurisdiction thereof. (5) Contain the estimated cost of the construction of the improvements to be made. C. Approval of Plans. within sixty (60) days of proper submission of the plat and plans, and payment of the applicable fees, Lessor shall approve or disapprove the plat and plans. Should Lessor fail to approve or disapprove of the required plat i or plans within the sixty (60) days, the plat and plans shall be deemed approved. Should the Lessor timely disapprove the plat or plans, it shall give notice to the Lessee of the reason for the disapproval. No construction of any improvements shall begin until and unless the plans and specifications are approved by Lessor. D. Airplane Taxiway Access. (1) Taxiway Improvements by Lessee, The Lessee acknowledges that on the effective date of this Lease, there are no existing taxiway improvements to serve the Premises and that Lessee shall be responsible, at no cost to Lessor, of providing any necessary taxiway improvements which are necessary to serve the Premises. The area designated as "taxiway" on attachment "A" shall be the general area used, as more specifically designated by Lessor prior to the beginning of construction, to provide for taxiway access to serve the Premises. Prior to beginning the taxiway improvements, the plans therefore shall be submitted and approved in accordance with the provisions for other leasehold improvements. (2) "3 and Maintenance of Taxiway Provided by Lessee. Lessee shall be solely responsible for the maintenance of the taxiway access provided, and shall keep the MAHON LEASE/Page 11 i 1 1A taxiway in good condition, free of obstructions and defects. The use of the taxiway access shall be subject to the reasonable rules, regulations, or directives of Lessor. E. ownership of Improvements. All buildings and improvements J constructed upon the Premises by Lessee shall remain the property 1 of Lessee throughout the term of the Lease, except as otherwise provided in this Lease. All buildings and improvements of whatever nature remaining upon the Premises at the end of the primary term, l or any extension thereof, of this Lease shall automatically become the property of Lessor absolutely in fee without any cost to Lessor. F. Removal of Hangars or Buildings. In the event that Lessee should remove any building or hangar from the Premises, where such removal is authorized by this Lease, Lessee herein agrees to comply with the following terms: (1) Prior to commencing the hangar or building removal process, the Lessee and Lessor shall agree on the best E method to remove the building, including where to cut j water lines, electrical wire, plumbing and other fixtures or utilities, so as to cut said fixtures to allow the future use of these fixtures. (2) The buildings shall be removed completely from the f surface of the concrete slab and up, with the exception of cut utility lines. All interior fixtures shall be removed including sinks, commodes, dividing walls and all other items or fixtures that would prevent the concrete slab from being as free as possible from all obstructions. I (3) Removal of hangars or buildings shall begin and be completed prior to Lessee's designated termination date. (4) All hangar and building slabs, aircraft parking aprons, taxiways, and all other similar improvements on the I Premises shall remain on the Premises and shall become the property of the Lessor without costs to Lessor. I (5) Lessee shall be responsible for the removal of all refuse and debris from the Premises prior to vacating the Premises. 4 (6) Lessee shall be responsible for all costs involved in the removal of the hangar or building, including costs of permits or fees. (7) Lessee shall be responsible for any damage caused to any MAHON LEASE/Page 12 I tA J i improvements on the Premises during the building or hangar removal process, and Lessee herein agrees to repair or replace, at Lessee's expense, any improvements damaged by Lessee during the removal of said structures. VIII. SUBROGATION OF MORTGAGEE Lessee shall have the right to place a first mortgage lien upon its leasehold in an amount not to exceed eighty percent (80%) of the cost of the capital improvements. The terms and conditions of such mortgage loan shall be subject to the approval of Lessor and Lessee shall submit copies of the loan documents, including the loan application, to Lessor. Lender's duties and rights are as follows: 1. The Lender shall have the right, in case of default, to assume the rights and obligations of Lessee herein and become a substituted Lessee, with the further right to assign the Lessee's interest to a third party, subject to approval of Lessor. Lender's obligations under this Lease as substituted Lessee shall cease upon assignment to a third party as approval by Lessor. i 2. As a condition precedent to the exercise of the right V granted to Lender by this paragraph, Lender shall notify I Lessor of all action taken by it in the event payments I on such loans shall become delinquent. Lender shall also , € notify Lessor, in writing, on any change in the identity or address of the Lender. 3. All notices required by the Lease to be given by Lessor to Lessee shall also be given by Lessor to Lender at the same time and in the same manner provided Lessor has been furnished with written notice of Lender's interest and its address. Such notice shall be given to the City Secretary and the Airport Manager. Upon receipt of such notice, Lender shall have the same rights as Lessee to correct any default. IX. INSURANCE A. Lessee shall maintain continuously in effect at all times during the term of this Lease or any extension thereof, at Lessee's expense, comprehensive general liability insurance covering the Premises, the Lessee, its personnel and its operations on the Airport, for bodily injury and property damage in the minimum amount of $250,000, combined single limits on a per occurrence basis. B. All policies shall be issued by a company authorized to MAHON LEASE/Page 13 r4 i. do business in the State of Texas, be approved by the Lessor, copies of which shall be provided to Lessor. The policies shall name the Lessor as an additional named insured and shall provide for a minimum of thirty (30) days written notice to the Lessor prior to the effective date of any cancellation or lapse of such policies. C. During the original or extonded term of this Lease, Lessor herein reserves the right to adjust or increase the liability insurance amounts required of the Lessee, and to require any additional rider, provisions, or certificates of insurance, and Lessee hereby agrees to provide any such insurance requirements as may be required by Lessors provided however, that any requirements shall be commensurate with insurance requirements at other public use airports similar to the Airport in size and in scope of aviation activities, located in the southwestern region of the i United States. For the purpose of this Lease, the Southwestern region of the United States shall be the states classified as the Southwestern region by the Federal Aviation Administration. i D. Lessee herein agrees to comply with all increased or adjusted insurance requirements that may be required by the Lessor throughout the original or extended term of this Lease, including types of insurance and monetary amounts or limits of insurance, and to comply with s11d insurance requirements within sixty (60) days following receipt of a notice in writing from Lessor stating the increased or adjusted insurance requirements. Lessee shall have the right to maintain in force types of insurance and amounts of insurance which exceed Lessor's minimum insurance requirements. 1 j E. In the event that State law should be amended to require types of insurance or insurance amounts which exceed those of like or similar public use airports in the southwestern region of the United States of America, then in such event, Lessor shall have the right to require that Lessee maintain in force types of insurance or the amount of insurance as specified by state Law. X. INDEMNITY A. Lessee agrees to indemnify, defend, and hold harmless Lessor and its agents, employees, and representatives from and against all liability for any and all claims, suits, demands, or actions arising from or based upon intentional or negligent acts or omissions on the part of Lessee, its agents, representatives, employees, members, patrons, visitors, contractors and subcontractors, or sublessees, if any, which may arise out of or 4 result from Lessee's occupancy or use of the Premises or activities conducted in connection with or incidental to this Lease. WAON LEASE/Page 14 1i I ~i B. This Indemnity Provision extends to any and all such claims, suits, demands, or actions regardless of the type of relief sought thereby, and whether such relief is in the form of damages, judgments, and costs and reasonable attorney's foes and expenses, or any other legal or equitable form of remedy. This Indemnity Provision shall apply regardless of the nature of the injury or harm alleged, whether for injury or death to persons or damage to property, and whether such claims be alleged at common law, or statutory, or constitutional claims, or otherwise. This Indemnity Provision shall apply whether the basis for the claim, suit, demand, or action may be attributable in whole or in part to the Lessee, or to any of its agents, representatives, employees, members, patrons, visitors, contractors, and subcontractors, or sublessees, if any, or to anyone directly or indirectly employed by any of them. i C. This Indemnity Provision also extends to any claim or liability for harm, injury, or any damaging events which are directly or indirectly attributable to premise defects or conditions which may now exist or which may hereafter arise upon the Premises, any and all such defects being expressly waived by Lessee. Lessee understands and agrees that this Indemnity Provision shall apply to any and all claims, suits, demands, or actions based upon or arising from any such claim asserted by or on behalf of Lessee or an of its members E agents, employees, contractors and subcontract rs,r ors sublessees, if any. D. It is expressly understood and agreed that the Lessor , shall not be liable ox responsible for the negligence of Lessee, its agents, servants, employees or sublessees, if any. Lessee further agrees that it shall at all times exercise reasonable precautions for the safety of, and shall be solely responsible for the safety of its agents, representatives, employees, members, patrons, visitors, contractors and subcontractors, sublessees, if any, and other persons, as well as for the protection of supplies and equipment and the property of Lessee or other persons. E. Lessee and Lessor each agree to give the other party prompt and timely notice of any such claim made or suit instituted which in any way, directly or indirectly, contingently or otherwise, affects or might affect the Lessee or the Lessor. Lessee further agrees that this Indemnity Provision shall be considered as an additional remedy to Lessor and not an exclusive remedy. XI. CANCELLATION BY LESSOR All the terms, restrictions, covenants, and conditions pertaining to the use and occupancy of the Premises are conditions of this Lease and the failure of the Lessee to comply with any of MAHON LEASE/Page 15 i i i tA the terms, conditions, restrictions, covenants, and conditions shall be considered a default of this Lease, and upon default, the Lessor shall have the right to invoke any one or all of the following remedies. A. Should Lessee fail to pay the annual rental amounts or fees prescribed in this Lease, such failure shall constitute a default of this Lease, and Lessor may give written notice to Lessee of Lessee's failure to pay and demand payment in accordance with the Lease terms. Should Lessee fail to pay the annual rental amount within twenty (20) days following receipt of written notice from Lessor, then Lessor may terminate this Lease. B. In the event that Lessee fails to comply with any other terms, conditions, restrictions and covenants pertaining to this Lease, Lessor shall give Lessee notice of said breach, and request Lessee to cure or correct the same. Should Lessee fail to correct said violation(s) or breach within thirty (30) days following receipt of said notice, then Lessor shall have the right to terminate this Lease. Should this Lease be terminated by Lessor for failure of Lessee to correct said breach or violation within j the thirty (30) day cure time, Lessee shall forfeit all rights to all improvements on the Premises and all improvements on the Premises shall become the property of the Lessor. C. In addition to termination of this Lease for the breach of terms and conditions herein, the Lessor shall have the r.'.ght to ; terminate this Lease for the following reasons: (1) in the event that Lessee shall file a voluntary petition in bankruptcy or proceedings in bankruptcy rhall be instituted against Lessee and Lessee thereafter is adjudicated bankrupt pursuant to such proceedings, or any court shall take jurisdiction of Lessee and its assets pursuant to proceedings brought under the provisions of any federal reorganization act; or if a receiver shall take jurisdiction of Lessee and its assets pursuant to proceedings brought under the provisions of any federal reorganization act; or if a receiver for Lessee's assets is appointed. (2) In the event that Lessee should make an assignment of this Lease, for any reason, without the approval of and written consent from Lessor. j D. Upon termination or cancellation of this Lease and provided I all monies due Lessor have been paid, Lessee shall have the right to remove its personal property, provided such removal does not cause damage to any part of the hangar, structure or improvements. f Lessee shall remove all personal property from the Premises within ten (10) days after the termination. If Lessee fails to remove MAHON LEASE/Page 16 t I I r~ its personal property as agreed, Lessor may elect to retain possession of such property or may sell the same and keep the proceeds, or may have such property removed at the expense of Lessee. Where, upon termination of the Lease, the fixed improvements become the property of Lessor as provided herein, Lessee shall repair, at its own expense, any damage to the fixed improvements, J resulting from the removal of personal property and shall leave the Premises in a neat and clean condition with all other improvements in place. E. Failure of Lessor to declare this Lease terminated upon the default of Lessee for any of the reasons set out shall not operate to bar, destroy, or waive the right of Lessor to cancel this Lease by reason of any subsequent violaticn of the terms hereof. The acceptance of rentals and fees by Lessor for any period or periods after a default of any of the terms, covenants, and conditions herein contained to be performed, kept, and observed by Lessee shall not be deemed a waiver of any rights on the part of the Lessor to cancel this Lease for failure by Lessee to so perform, keep or observe any of the terms, covenants or conditions hereof to be performed, kept and observed. ~ I XII. CANCELLATION BY LESSEE Lessee may cancel this Lease, in whole or part, and terminate ; all or any of its obligations hereunder at any time, by thirty (30) days written notice, upon or after the happening of any one of the J following events: (1) issuance by any court of preventing or restraining the use of said Airport or any part thereof for Airport purposes; (2) the breach by Lessor of any of the covenants or agreements contained herein and the failure of Lessor to remedy such breach for a period of ninety (90) days after receipt of a written notice of the existence of such breach; (3) the inability of Lessee to use the Premises and facilities continuing for a 1 I longer period than ninety (90) days due to any law or any o tier, rule, or regulation of any appropriate governmental authority having jurisdiction over the operations of Lessor or due to war., earthquake or other casualty; or (4) the assumption or recapture by the United States Government or any authorized agency thereof of the Premises for the maintenance and operation of said Airport and facilities or any substantial part or parts thereof. Upon the happening of any of the four events listed in the preceding paragraph, such that the Premises cannot be used for I authorized purposes, then Lessee may cancel this Lease or may elect d to continue this Lease under its terms. In the event that Lessee should elect to cancel this Lease as MAHON LEASE/Page 17 JI I i r Provided herein, Lessor shall have the right to purchase the improvements at a value determined by having such improvements appraised by three appraisers, one appointed by Lessor, one appointed by Lessee, and one appointed by the two appraisers. The costs of the appraisal shall be paid by Lessor. Within sixty (60) days of the delivery of a written appraisal report by the appraisers to Lessor, Lessor shall notify Lessee in writing of its decision to purchase all or part of the hangers or buildings. If Lessor exercises its right to purchase, it shall make payment to Lessee of the appraised value of the buildings or hangers to be purchased within thirty (30) days of the written notice. kIII. MISCELIANEous PROVISIONS A. Enti7:e Agreement. This Lease constitutes the entire understanding between the parties and as of its effective date 1 supersedes all prior or independent agreements between the parties c.vering the subject matter hereof. Any change or modification herccr shall be in writing signed by both parties. B. Subletting or Assignment. The Lessee shall not rent, or I, sublease the Premises, or any portion thereof, or assign this Lease, without prior written consent of the Lesser. If approved by Lessor, any tenant, sublessee, or assignee shall be subject to j the same conditions, obligations and terms as set forth herein. C. Lease Binding on Successors and Assigns. All covenants, agreements, provisions and conditions of this Lease shall be binding upon and inure to the benefit of the respective parties hereto and their legal representatives, successors or assigns. No modification of this Lease shall be binding upon either party unless written and signed by both parties. D. Effect of Condemnation. If the whole or any part of the Premises shall be condemned or taken by eminent domain proceedings by any city, county, state, federal or other authority for any purpose, then the term of this Lease shall cease on the part so taken from the day the possession of that part shall be required for any purpose and the rent shall be paid up to that day, and from that day Lessee shall have the right to continue in the possession of the remainder of the Premises under the terms herein provided, except that the rent shall be adjusted to such amount as the parties hereto shall negotiates but, under no circumstances shall the rent be greater than the rental per square foot provided for herein. All damages awarded for such taking of and for any public purpose shall belong to and be the property of Lessor. All damages awarded for such taking of structures, improvements or businesses that were constructed by Lessee shall be reflective of their value for the remainder of the Luse term and be awarded to Lessee, the remainder to be awarded to Lessor. MAHON LEASE/Page 18 I i a V M E. a"UAbility. If any provision hereof shall be finally declared void or illegal by any court or administrative agency j having jurisdiction, the entire Lease shall not be voids but the remaining provisions shall continue in effect as nearly as possible in accordance with the original intent of the parties. F. Notice. Any notice given by one party to the other in connection with this Lease shall be in writing and shall be sent J by registered mail, return receipt requested, with postage and 1 registration fees prepaid, as follows: addressed to: 1. If to Lessor, City Manager City of Denton 215 E. McKinney Denton, Texas 76201 2. IP to Lessee, addressed to. i Bert E. Mahon 1803 Concord Lane Denton, Texas 76205 Notices shall be deemed to have been received on the date of receipt as shown on the return receipt. G. Headings. The headings used in this Lease are intended for convenience of reference only and do not define or limit the scope or meaning of any provision of this Lease. I H. Qyernina Law. This Lease is to be construed in accordance with the laws of the State of Texas. IN WITNESS WHEREOF, the parties have executed this Lease as f of the day and year first above written. CITY OF DENTON, TEXAS, LESSOR j BY: LLOYD HARRELL, CITY MANAGER I ATTEST: JENNIFER WALTERS, CITY SECRETARY i i MAgON LEASE/Page 19 i 1 i 1 I s I a d APPROVED AS TO LEGAL FORM: ' DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY ` BY: rn h LESSEE Bert E. Mahon Mary L. Mahon i STATE OF TEXAS COUNTY OF DENTON I This instrument was acknowledged before me on the day of 1989, by Lloyd V. Harrell, City Manager f of the City of Denton, Texas, a municipal corporation of the State of Texas, on behalf of said corporation. 4 i Notary Public, State of Texas ` My commission expires: ,r STATE OF TEXAS COUNTY OF DENTON This instrument was acknowledged before me on the day of , 19890 by Bert E. Mahon. Notary Public, State of Texas ' My Commission expires: I STATE OF TEXAS COUNTY OF DENTON i This instrument was acknowledged before me on the day of , 19890 by Mary L. Mahon. f Notary Public, State of Texas My commission expires: MAHON LEASE/Page 20 l V r ATTACHMENT "A" i i 0" DITCH o ` AN r F, R, R, R.C.O, ro0 1,033Ac.C`f EASEMENTS ~pPp S0 PiNfty SCALE I= 200 I ~ i ~4 J I 1 V I I I 1 1 1 1 I I I I 1 11 I I I~ JAIIIIIIII Y-1111111 Millais silly _TM T'T_ 1111111 - I 1 7 ~ January 10, 1989 CITY COUNCIL AGENDA ITEM TO: MAYOP AND MEMBERS OF THE CITY COUNCIL FROM: Lloyd Harrell, City Manager RE: CONSIDER CONTRACT WITH FREESE b NICHOLS, INC. FOR PROFESSIONAL ENGINEERING SERVICES IN CONNECTION WITH THE DEVELOPMENT OF A TWENTY-YEAR MASTER PLAN FOR IMPROVEMENTS TO THE WASTEWATER TREATMENT PLANT. RECOMMENDATION: The Public Utilities Board, at their meeting of December 21, 1988, recommended approval of the attached contract fop the professional engineering services of Freese 6 Nichols, Inc. ;or a twenty-year Master Plan for improvements to the Wastewater Treatment Plant. SUMMARY: The City of Denton has an urgent need to begin a Master Plan in order to improve the current wastewater treatment system to meet j 20-year flow projections, The attached contract will fulfill this requirement as covered under Exhibit A, Scope of Services. a I BACKGROUND; The Wastewater Treatment Plant has a rated aesign capacity of 12 MGD (million gallons per day) and an overflow design capacity of 18 MGD. The overflow capacity is to take care of stormwater flows. The plant is permitted for 12 MGD. From November 1987 to November 7988, the average total effluent from the plant was 9.3 MGD (9.0 MGD to Pecan Creek and .3 MGD to the Power Plant). The average daily maximum flows were 11.6 MGD with the highest daily flow, which resulted from stormwater inflows being 12.9 MGD. State law requires that when monthly averar,e flows of a wastewater treatment plant reach 75% of permitted flow, must be initiated. Denton 's plan, is at 77% tf planning ermitw, State law also requires that when a plant reacheste90%loof j permitted flow, construction must be initiated or a permit application be filed to amend the rated permitted flows. An engineering analysis and potential correction of infiltration problems being undertaken at this time, could possibly delay the need for plant expansions; however, a master plan for treatment plant improvements is now needed to avert hurried design anu rushed construction. r n r s City Council Page 2 I The master plan completed this year should serve the City of Denton well for the next eight to ten years. Beyond that time period, proposed improvements are speculative. I PROGRAMS, DEPARTMENTS OR GROUPS AFFECTED: All wastewater customers of the City of D,.r' i collection and treatment system, the Utilities Department a, reese b Nichols, i` - Inc. f j FISCAL IMPACT: The Professional Engineering Services contract of Freese 8 Nichols, Inc. for the twenty-year Master Plan in connection with the wastewater Treatment Plant, is based on salary costs times a I multipliev of 2.3, plus direct expenses times a multiplier of i 1.0, with the maximum compensation not to exceed $104,750 without written authorization by the City. Funds are available from the approved current expense budget as I I follows: I Amount: $50,000 Account Number: 620-082-0470-8550 Description: Wastewater Consulting Engineering Design/Bid Amount: $609000 Account Number: 620-082-0472-8502 (Special Services) Description: Wastewater Engineering Design/Bid Re ctfully submitted, 0a ~ ZZ I f ar e Hager I Prepared/Approved by, I r Aon, xecut ve or Department of Utilities Exhibit I Engineering Services Contract with Freese A Nichols 11 PUB Minutes of December 21, 1988 III Ordinance 6275U:3-4 I r~ 1 T v 2262L NO. OF DENTON AN ORDINANCE APPROVING AN AGREEMENT FOR BETWEEN THE CITY ENGINEERING AND FREESE AND NICHCLS, INC. PROFESSIONAL SERVICES; AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT; APPROVING THE EXPENDITURF. OF FUNDS THEREFOR; AND PROVIDING FOR AN EFFECTIVE DATE. _ THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. That the City Council hereby approves and autho-rTzea ttie Mayor and City Secretary to execute and attest, respectively, the agreement between the City of Denton and Freese and Nichols, Inc. for the development of a twenty-yea, master plan for improvements Lo the wastewater treatment p parcontained t hereof in said agreement which hereto dandconditions is 1 dattached terms SECTION II. That the City Council authorizes the specified in expeea tune o nds in the manner and amount as ape the agreement. ; SECTION III. That this ordinance shall become effective imme ate y upon its passage and approval. 19 B~ • ~ PASSED AND APPROVED this the dcy of I RAY STEPAEAr + ,II ATTEST: i APPROVED AS TO LEGAL FORM: I DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY I 1 .,nn BY, 1 I e - i i ti 2262E ~ 0 Py DE:C -1.9 1988 THE STATE OF TEXAS § ENGINEERING SERVICES CONTRACT BETWEEN THE CITY OF DENTON AND ' COUNTY OF DENTON § FREESE AND NICHOLS, INC. THIS CONTRACT, by and between the CITY OF DENTON, a municipal corporation, located in Denton County, Texas, hereinafter called "CITY" and Freese and Nichols, Inc., a corporation authoriZLJ to do business in the State of Texas, hereinafter called "ENGINEER", evidences the following: WHEREAS, CITY desires the professional engineering services of ENGINEER, for the development of a twenty-year master plan for improvements to its wastewater treatment plant, hereinafter called "Project", and, WHEREAS, ENGINEER is qualified and capable of performing the professional engineering services proposed herein for this Pro- ject and is willing to enter into this Contract with CITY to perform said services; NOW, THEREFORE, the parties in consideration of the terms and conditions contained herein agreed as follows: , I I I I ~ EMPLOYMENT OF THE ENGINEER + i ENGINEER agrees to perform professional engineering services (Services) in connection with the Project as set forth in the following sections of this contract, and CITY agrees to pay, and i ENGINEER agrees to accept fees as set forth in the following sections as full and final compensation for all services provided under this Contract. II. ENGINEER'S SERVICES I A. The ENGINEER shall render services necessary for the \ development of the Project as outlined herein. The Scope of Services which ENGINEER agrees to perform is set forth in Exhibit j "A", attached hereto and incorporated by reference herein. ENGINEER shall exercise the same degree of care, skill and diligence in the performance of the Services as is ordinarily provided by a professional engineer under similar circumstances j and ENGINEER shall, at no cost to owner, reperform services which fail to satisfy the foregoing standard of performance. I J i V i B. CITY agrees to assist ENGINEER by providing the following; 1. CITY will provide record construction documents, and plant operating records for the last 36 months. 2. CITY will provide plant operator assistance during ENGINEER's site visits, lab analysis, sampling and testing at the plant as necessary. 3. CITY will project staffing requests, laboratory space needs and current building use. III. PAYMENT FOR SERVICES A. Payment for the service outlined under the scope of work shall be on the basis of salary costs times a multiplier of 2.3 plus direct expenses times a multiplier of 1.0, with the maximum compensation not to exceed One Hundred Four Thousand Seven Hundred Fifty Dollars ($104,750.0u) without written authorization by the CITY. The salary cost is defined as the cost of salaries of engineers, draftsmen, stenographers, surveymen, clerks, laborers, etc., for time directly chargeable to the project, plus social security contributions, unemployment compensation insurance, retirement benefits, medical and insurance benefits, bonuses, sick leave, vacation and holiday pay applicable thereto. (Salary Coat is eggal to 0.41 times salary payments.) Direct expenses shall include computer printing and reproduction expense, communication expense, travel, transportation and subsistence away from Fort Worth and other miscellaneois expense directly related to the work. B. ENGINEER shall submit itemized monthly statements for Services, Direct Non-Labor Expenses, and for Subcontractor's Cost incurred. CITY shall make payments in the amount shown by the ENGINEER'S monthly statements and other documentation submitted. C. Nothing contained in this article shall require CITY to pay for any work which is unsatisfactory as reasonably deter- mined by the Executive Director of Utilities or which is not submitted in compliance with the terms of this Contract. CITY shall not be required to make any payments to the ENGINEER when the ENGINEER is in default under this Contract; nor shall this paragraph constitute a waiver of any right, at law or in equity, which CITY may have if the ENGINEER is in default, including the right to bring legal action for damages or for specific performance of this Contract. PAGE 2 JI F r# v f m D. CITY has the right to audit the time records and salaries of personnel and charges for Direct Non-Labor expenses. .j IV. OWNERSHIP OF DOCLHENTS All information and other data given to, prepared, or assembled by ENGINEER under this Contract, and any other related items shall become the sole property of CITY and shall be delivered to CITY. Any reuse without written verification or adaptation by ENGINEER for the specific purpose intended will be at CITY'S sole risk and without liability to ENGINEER. Any such verification or adaptation shall entitle ENGINEER to urther compensation at rates to be agreed upon CITY AND ENGINEER. V. + SERVICES BY CITY CITY shall provide the services under this Contract as listed and set forth in Section II. B. VI. j COMPLETION SCHEDULE A. For the purposes of this contract, a month is defined as thirty (30) calendar days and a week as seven (7) calendar days, If any of the following submissions fall on a CITY non-working 1 day, then the submission shall be due the following CITY working day. All services to be performed under this Contract will be completed within 180 calendar days after the date the ENGINEER is authorized in writing by the CITY to proceed, excluding CITY review time. In particular, ENGINEER shall comply with the following time schedules: 1. ENGINEER shall submit an interim report recommending continuation or expansion of the sludge inspection system within 60 days from authorization to proceed. 2. ENGINEER shall complete the draft sludge management report within 90 days from authorization to proceed, 3. ENGINEER shall submit the Master Plan draft report within 180 calendar days. The final report and copies shall be delivered to the CITY within 15 days following review and approval of the draft. PAGE 3 y w 11. CITY shall have control of the services to be rendered and no work shall be done under this Contract until the ENGINEER 3s instructed in writing to proceed, VII. TERMINATION OF CONTRACT CITY may indefinitely suspend further work hereunder or termi- nate this Contract or any phase of this Contract u 1 days prior written notice to the ENGINEER with theounderstanding that immediately upon the receipt of such notice all work cnd labor being performed under this Contract shall cease immediate) Before the end of each thirty (30) day invoice the CITY for all work accomplishedebyo him NpriorRtohthe receipt of such notice. No amount shall be due for lost or anticipated profits. All plans, field surveys, and other data related to the Project shall become property of CITY upon termi- nation of the Contract and zhall be promptly delivered to CITY in a reasonably organized form without restriction on future use except as stated in Article IV. Should CITf subsequently contract with new consultant for continuation of services on the Project, ENGINEER shall cooperate in providing information, I I ll. RESPONSIBILITY FORUCLAIMS AND LIABILITIES Approval by CITY shall not constitute nor be deemed a release employees, eassociates, agents, landilconsultants he for EN the Eaccuraits cy and competency of their designs ur other work; nor shall such Ponsibility by CITYofor anyddefectt in then design assumption or othof such er work responsibility by the ENGINEER, its employees, subcontractors, agents, and consultants. IX. EQUAL EMPLOYMENT OPPORTUNITY A. The ENGINEER shall not discriminate against any employee or applicant for employment bec4luse of race, age, color, religion, 4 sexi ancestry, national origin, or place of birth. The ENGINEER sha 1 take affirmative action to insure that applicants are employed and that employees are treated during their employment without regard to their race, age, color, religion, sex, ancestry, plac e of butinotlbe limiited to, the following; This action shall include, I PAGE 4 } a ~ Employment, upgrading, demotion or transfer, recruit- ment or recruitment advertising; layoff or termina- tion; rates of pay or other forms of compensation; l and selection of training, including apprenticeship. The ENGINEER agrees to post in a conspicuous place, available to employees and applicants, notices to be provided by CITY setting forth the provisions of this non-discrimination clause. 8. The ENGINEER shall, in all solicitations or advertisements for employees placed by or on behalf of the ENGINEER, state that all qualified applicants will receive consideration for employ- ment without regard to race, color, religion, sex, age, ancestry, national origin, or place of birth. C. The ENGINEER shall furnish all information and reports required by the City Manager or his designee and shall permit the City Manager or his designee to investigate his payrolls and personnel records which pertain to current professional services contracts with CITY for purposes of ascertaining compliance with this equal employment opportunity clause. D. The ENGINEER shall file compliance reports with CITY as may be required by the City Manager or his designee. Compliance reports must be filed within the time, must contain information as to the employment practices, policies, programs, and statistics of the ENGINEER, and must be in the form that the City Manager or his designee prescribes. E. If the ENGINEER fails to comply with the equal employ- ment opportunity provisions of this Contract, it is agreed that the CITY at its option may do either or both of the following: 1. Cancel, terminate or suspend the Contract in whole or in part; 2. Declare the ENGINEER ineligible for further CITY contracts until it is determined to be in compliance. X. NONDISCLOSURE OF PROPRIETARY INFORMATION ENGINEER shall consider all information provided by CITY and all drawings, reports, studies, design calculations, plans, specifications and other documents resulting from the ENGINEER'S performance of the Services to be proprietary unless such infor- mation is available by law from public entities. ENGINEER shall I PAGE S I J r L f i 1 t 1 I~ not publish or disclose proprietary information for any purpose other than the performance of the Services without the prior written authorization of CITY. ENGINEER shall not make any written or verbal statement to any press or news media concerning the project without the written authorization of CITY. XI. AMENDMENTS This Contract may be amended or supplemented in any parti- cular ouncilnlexcept and only approved C Termin tthe t ionCiof Contract. II XII. COMPLIANCE WITH LAWS, CHARTERS, AND ORDINANCES, ETC. subcontractorsEshall comply with hall applicable Federalo and,State laws, the Charter and Ordinances of the City of Denton, and with i all applicable rules and regulations promulgated by all local, State and National boards, bureaus, and agencies. The ENGINEER shall further obtain all permits and licenses required in the preparation of the work contracted for in this Contract. XIlI. ASSIGNMENT This Contract provides for personal services and the ENGINEER shall not assign this Contract, in whole or in part, without the -'i prior written consent of the CITY. XIV. NOTICES mittedl underCethcoContractioshallanbe reports is personally required de ivered per- mailed to the respective parties by depositing same in the United States mail at the addresses shown below, unless and until either party is otherwise notified in writing by the other part at the following addresses. Mailed notices shall be deemed communicated as of five days mailing. J 1 PAGE 6 I ,J M i If intended for CITY, tot If intended for ENGINEER, to: City of Denton Freese and Nichols, Inc. Attn: Robert E. Nelson 811 Lamar Street Executive Director for Utilities Fort Worth, Texas 76102-3683 215 East McKinney Street Attn: Denton, Texas 76201 XV. INDEPENDENT CONTRACTOR In performing services under this Contract, ENGINEER is per- forming services of the type performed prior to this Contract, and ENGINEER by the execution of this Contract does not change agent, the independent Contract shall status be construedENasNEmakingth ENGINEERmathe of this j servant, or employee of Denton. XVI. INDEMNITY ENGINEER agrees to defend, indemnify, and hold CITY whole and harmless against any and all claims for damages, costs, and expenses to persons or property that may arise out of, or be occasionted b any or agfrom ent , a serva t, negligent or emact, ployee error, of ENGINEER omission ENGINEER or the execution or performance of this Contract. XVII. INSURANCE A. Prior to the time ENGINEER is entitled to commence any part of the services under this Contract, ENGINEER shall procure, pay for and maintain the following insurance written by companies licensed in the State of Texas or meeting surplus lines require- ments of Texas law and acceptable to CITY. The insurance shall be evidenced by delivery to CITY of certificates of insurance executed by the insurer listing coverage and limits, expiration date of policy, and certifying that the insurer is licensed to do 4 business in Texas or meets the surplus lines requirements of Texas law. The insurance requirements shall remain in effect throughout the term of this Contract: i i PAGE 7 kp { i i s r 1. Worker's Compensation as required by law; Employers . a cy urance of not less than , or each accident. 2. Com rehensive General Liability Insurance includ- n Contractua a covering,~t not m ted to, the liability assumed under the indemnification provisions of this Contract, with limits of liability for bodily injury and property - damage of Inot less than $250,000. Coverage shall be on an occurrence basis, and the policy shall f i include Broad Form Property Damage Coverage. 3. Professional Liability Insurance (including Errors ! andOi~se ons wick m n mum limits of $1,000,000.00 per occurrence. 4. Comprehensive Automobile and Truck Liability nsurance, cover ng owns , h re an non-owned ve c es, with minimum limits of $250,000, each occurrence, for bodily injury and property damage, such insurance to include coverage for loading and r unloading hazards. 5. $1,000,000.00 combined single limits bodily injury 1 and property damaged liability insurance, including death, ae an excess of the primary coverage required above. B. Each insurance policy shall include the following condi- tions by endorsement to the policy: 1. Each policy shall require that fifteen (15) days J prior to the expiration, cancellation, non-renewal or any material change in coverage, a notice there- of shall be given to CITY by certified mail to: City of Denton Attn: Robert E. Nelson Executive Director for Utilities 215 East McKinney Street j Denton, Texas 76201 2. Companies issuing the insurance policies shall have no recourse against CITY for payment of any premiums or assessments for any deductibles which all are at the sole responsibility and risk of ENGINEER. PAGE g , J r ,g i a ' i I 3. The term "CITY" or "City of Denton" shall in- clude all authorities, Boards, Bureaus, Commis- sions, Divisions, Departments, and offices of CITY and the individual members, employees and agents thereof in their official capacities, and/or while acting on behalf of the City of Denton. 4. The policy clause "Other Insurance" shall not apply to any insurance coverage currently held by CITY, to any such future coverage, or to City's Self-insured Retentions of whatever nature. ENGINEER hereby waives subrogation rights for loss or damage against CITY to the extent same is covered by insurance. XVIII. MISCELLANEOUS i A. This Contract may be executed in any number of counter- parts, each of which shall be deemed an original and constitute one and the same instrument. B. A waiver by either ENGINEER or CITY of any breach of a provision of this contract shall not be binding upon the waiving party unless such waiver is in writing in the event of a written j waiver, such a waiver shall not affect the waiving party's rights with respect to any other or future breach. C. In case any one or more of the provisions contained in this Contract shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or enforceability shall not affect any other provision thereof and this Contract shall be considered as if such invalid, illegal, or unenforceable provision had never been contained in this Contract. i D. This Contract shall be governed by and construed in accordance with the laws and decisions of the State of Texas. E. The obligations of the parties to this Contract are performable in Denton County, Texas, and if legal action is necessary to enforce it, exclusive venue shall lie in Denton County, Texas. I i PAGE 9 1 ry' i Y F XIX. ENTIRE AGREEMENT This Contract embodies the complete agreement of the parties hereto, superseding all oral or written previous and contemporary agreements between the parties and relating to matters in this Contract, and except as otherwise provided herein cannot be modified without written agreement of the parties to be attended to and made a part of this Contract. EXECLTED this the day of 19_. CITY OF DENTON, TEXAS BY: ATTEST: l JENNIFER WAL R , C sECKETM f APPROVED AS TO LEGAL FORM: DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY F BY: 'YY1 c~nr~ FREESE AND NICHOLS, INC. G?x I~~~ BY: TITL : reoy~irf i ATTEST: I PAGE 10 I1~ 1 4 f ' I~ 1 If EXHIBIT "A" - SCOPE OF SERVICES I 1. Wastewater Treatment Plant Evaluation A. Data. Analysis Estimated Time Requf re,'. (Ilrs)Review the City's available operation Principal-in-Ch+-ge 6 and performance records for the past 36 Project Manager 24 months with regard to flow, organic Project Engineer 50 ` loading, effluent quality, sludge pro- Technician 8 duction and infiltration inflow problems. Compile, summarize and evaluate opera- tional data to provide a basis for diagnosis of the performance of the ` treatment units. Two consecutive days 4 of site visits and operational observa- tion are scheduled. In addition, flow h projections for a 20-year period will be prepared to determine treatment require- ments for the Master Plan. i B. Analysis of Design Capabilities Estimated Time Required (Hrs) The treatment capacities of each major Principal-in-Charge 4 treatment unit will be evaluated under Project Manager 24 current flows and load conditions and Project Engineer 80 current and anticipated permit require- Design Engineer 120 ments. A projection of performance at projected design loading based on existing effluent limits will be made. In addition, the major mechanical equip- ment, and electrical and instrumentation systems will be evaluated and recommen- dations presented for repair or replace- ment. The major treatment units to be evaluated for process capacity and ` hydraulic capacity include: f (1)Raw Sewage Pumping f (2)Primary Clarification Mi Aeration Basin Aeration Equipment MFinal Clarifier ;Chlorination System WEffluent Filters Sludge Digestion I (9)Scum Handling System -T ; m EXHIBIT "A" - SCOPE OF SERVICES (Con't) If it is detc,_ined that the existing plant can t,• 1-3nomically expanded by the addition s one or more additional treatment i.uits, alternatives (3 maxi- I mum) will be developed and evaluated. One of the alternatives will include a plant expansion at the present site. In addition, future plant expansions will be determined to meet the 20-year pro- jected flows. Estimated ~ C. Flow Equalization Analysis Time Required (Hrs) I A hydraulic analysis under current and Principal-in-Charge 4 E a future average and peak flow condition Project Manager 16 will be made for the existing treatment Project Engineer 14 facility. The evaluation will include analysis of need for flow equalization f with regard to wet weather flows and enhancement of operation efficiency. i 1 Estimated I D. Alternative Site Analysis Time Required (Hrs) v Consideration will be given to the Principal-in-Charge 4 desirability of constructing an addi- Project Manager 40 tional wastewater treatment plant at Project Engineer 60 an alternate location in the collet- Design Engineer 60 tion system to meet projected flow Technician 80 requirements for the 20-year study period. Two alternatives will be eval- uated. The existing Wastewater Master Plan and the Denton County Regional Master Plan will be utilized as a basis for this analysis. It is not intended that the evaluation include detailed site analysiq for the alternatives, Estimated E. Sludge Management Plan Time Required Hrs f A review will be made of the sludge Principal-in-Charge 8 management practices at the existing Project Manager 40 wastewater treatment plant. The land Project Engineer 120 requirements for subsurface injection Design Engineer 240 of future sludge quantities will be Technician 40 I 4 Y EXHIBIT "A" - SCOPE OF SERVICES (Con't) evaluated and additional sludge t,-eat- ment and disposal alternatives will be developed for comparison. This analysis will also include the determination of the number and type of permits required by regulatory agencies, land require- ments, equipment requirements, and costs for each alternative. An interim _ letter report will be prepared with regard to continuation or expansion of subsurface injection. Estimated j F. Energy Recovery System Time Required (Hrs) An economic analysis will be performed Principal-in-Charge 4 to determine the desirability of uti- Project Manager 16 i lizing digester gas as a fuel source Project Engineer 36 for engine generators or engine blowers. Design Engineer 40 i The analysis will include full time, part time and emergency power supply alternatives. Estimated G. Wastewater Reuse Time Required (Hrs) The feasibility of reusing treated Principal-in-Charge 4 effluent to irrigate the tree farm Project Manager 8 adjacent to the plant will be deter- Project Engineer 12 mined. This evaluation will include an assessment of the permitting require- ments and the industrial water reuse requirements with respect to quality and additional treatment. Estimated H. Space Study Time Required (Hrs) A study will be performed for the Principal-in-Charge 4 y existing plant to determine building Project Manager 14 kf space requirements for the various Project Engineer 40 plant operation, maintenance and Technician 80 laboratory operations. The study will include development of space needs at the existing plant for the 20-year study period, impentory of existing building and cur +nt usage, and recommended space needs. i i EXHIBIT "A" - SCOPE OF SERVICES (Con`t) Estimated I. Report on Recommended Master Plan Time Required (Hrs) The findings and recommendations from Principal-in-Charge 8 the tasks described above will be pre- Project Manager 24 sented in a written report. In addi- Project Engineer 60 tion, opinions of construction costs Design Engineer 120 and engineering services for the Technician 80 recommended phased improvements will Clerical 80 1 be presented for the 20-year planning period to include site plans depicting land use and facility expansions. Twenty-five (25) copies of the final report will be provided to the City. Estimated J. Report Presentation Time Required (Hrs) A detailed presentation of the Master Principal-in-Charge 16 Plan will be made to the City staff, Project Manager 16 to the City Council and the Utility Project Engineer 16 Board. Total Estimated Time Required (Hrs) l Principal-in-Charge 62 Project Manager 222 Project En sneer 514 Design Engineer 580 Technician 288 Clerical 80 Expenses $4,700 ~I I i 14 . EXCERPT Public Utilities Board Minutes December 21, 1968 10. CONSIDER CONTRACT WITH FREESE A NICHOLS, INC. FOR PROFESSIONAL ENGINEERING SERVICES IN CONNECTION WITH THE 0EE0PMEN TREATMENT PLKRI-. Ham explained that state law requires that when monthly average I flows of a wastewater treatment plant reach 75% of permitted flows, planning must be initiated. Denton's plant is now at 77% j of permitted flow. When a plant reaches 90% of permitted flow, { construction must be initiated or a permit application filed to i 1 amend the rated permitted flows. Ham recommended approval of the proposed aareernent with Freese S Nichcls, Inc. for planning of expansion of the wastewater treatment plant. Chew asked if we have been completely satisfied with Freese A Nichols? Nelson stated that their work with wastewater treatment plants is very good. Chew moved approval of the contract. Frady second. All ayes, no nays, motion carried. i ' F i Ir 6276U:1 4 t rrTl= i i i I i I i i I Ii dl I t - ONE s rc 1 k } T 1 I DATE: 01/04/89 ~ i CITY COUNCIL REPORT FORMAT F TO: Mayor and Members of the City Council FROM: Lloyd V. Harrell, City Manager SUBJRCT: CONSIDER A RESOLUTION ADOPTING MODERATE ACTIVITY CENTER #40 AS PART OF APPENDIX A TO THR DENTON DEVELOPMENT PLAN AND AMENDING THE INTENSITY PLANNING AREA MAP ggCOMMBNDATION: The Planning and Zoning Commission considered this item and voted F 6-0 to recommend adoption to the City Council. The recommended boundaries for Moderate Activity Center #40 will result in ' corresponding changes to the boundaries of the abutting low intensity areas as shown on attached map. I i In recommending the boundaries of Moderate Activity Center #40 the ~ Planning and Zoning Commission and the Appendix A Tank Force con- sidered three distinct options and a number of boundary variables including existing land uses, current zoning, land use compatibility, and consistency between the zoning map and the concept map in the Denton Development Plan. It was agreed that this moderate center should not be extended north of University Drive in view of the high quality of single family residential development in that area. The recommended boundaries shown on the attached map incorporates current zoning and existing development as follows: Eyisting SF development 12.19 acres Yacant (A) Zoning C.33 acres Vacant MF1 (PD 126) 21.80 acres Vacant Com/Ret (PD 126) 32.0 acres Vacant Office (PD 126) T.0 acres Vacant LI (PD 126) 35.8 acres Vacant Inst. (PD 126) _ 5.0 acres 119.12 arses AACKGROUNp: The Appendix A Intensity Planning Area map was adopted by resolution on September 20, 1988, to be used in land use decisions pending the completion of a final Appendix A map. FROGRAMSS, DEPART RNTS OR GROUPS AFFECTED: All departments impacted by the Denton Development Plan. i 4. 4 J City Council Report Format January h, 1969 s Page 2 FISCAL IMPACT; Not applicable. Reap fully submitted: Prepared by; ~!!a r e lop/ -cu ~ C Manager Harry 11.l Perrsaud, AICP app ved: P"rank H. Ro ins ~ Bzecutive Director fo Planning and Development 09320 i ' I j 1 i i Y 22 2611L Y RESOLUTION NO. _ A RESOLUTION ADOPTING THE BOUNDARIES OF MODERATE ACTIVITY CENTER NUMBER 40 AS PART OF APPENDIX A OF THE DENTON DEVELOPMENT PLAN; AMENDING THE INTENSITY PLANNING AREA BOUNDARY MAP; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Denton Development Plan requires that the boundaries of the intensity areas to be included in Appendix A should be considered by the City Council; and WHEREAS, the Appendix A Task Force and the Planning and Zoning Commission considered the boundaries for Moderate Activity Center Number 40 and hereby recommend its adoption as part of Appendix A; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: j SECTION I. That the boundaries for Moderate Activity Center Number 4U, a copy of which is attached hereto, is adopted as part of Appendix A of the Denton Development Plan. SECTION II. That the intensity planning area boundary map is amended to show the location of Moderate Activity Center Number 40 as adopted and to show the corresponding change in the boundaries k of the abutting low intensity planning areas. SECTION III. That the City Secretary is hereby directed to attach a copy of this resolution to Resolution 88-057, which provides for the adoption of the Denton Development Plan. SECTION IV. That this resolution shall become effective upon its passage and approval. PASSED AND APPROVED this the day of , 1989. i RAY STEPHENSj MAYOR ATTEST: JENNIM-WAUM, CITY SECRETM I APPROVED AS TO LEGAL FORM: DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY i IBY: M 1 ~nµ~ i r «e \ r i I c a { Ul i I1 / / • ~ 1 1 1 sNk 0 % 1 .r.r. .r.r VB HYfY 6'0 ~r~.r. r.r.~ .r.. MOOERATE ACTIVITY • ENTER o f10 ftit 9LA00 RO V I 1 f I 1 • ~ t'.0 1 INTENSITY PLANNING AREA MAP F t SHOWING AREAS ABUTTING •1 i -MODERATE ACTIVITY CENTER*40 J ~~1 r I I i INTENSITY ARIBA # 4000014.••••••• NORTH set lease assellosom o ""~...••••••'~Y 380 D 1JI eases 41~o • - L M,-,7 y 5 E 7 Odd t,, y 104F • 8,0~. t~ 2.~ qt~. ~ Existing 'Agriculture - Zoni oil i 1 ~ • E ' • ~ rig I' • ,r~ , /#-"f DAT/ i/-ZS'bs i II y fIX CITY OI DtA1T0N 1215 E. McKlrtrtey / Denton, Texas 18201 K&MORANDUH DATE: December 9, 1988 TO: Planning and Zoning Commission FROK: Harry Persaud, Urban Planner SUBJECT: 80UVARIES FOR THE MODERATE ACTIVITY CENTER LOCATED AT UNIVERSITY DRIVE AND THE PROPOSED LAKEVIEW BOULEVARD 1. Baokaround The Appendix A Task Force considered the boundaries of this moderate nods at its meeting on November 15, 1988 and recosmende". the boundaries as shown in Option A (attached). The Planning and Zoning Commission considered the recommended boundaries at its meeting on November 30 and voted 7-0 to refer the boundaries back to the Task Force for reconsideration. The Planning and Zoning Commission at that meeting expressed concern about the miss of the node being too large and that strip commercial development to likely to occur along University Drive. This item wan placed is the Task Force December 6 agenda for reconsideration and the Task force voted 4-4 on a motion to reconsider its recommendations. The motion failed due to the tis vote. Staff is now returning this matter to the Planning and Zoning \ Commission to consider making a recommendation to the City Counoil. 2. Criteria in defining intensity areas. In addition to the policy criteria given in the Denton Development Plan, the Appendix A Task force in Its deliberations has developed a list of variables which is used to delineate the boundaries of intensity areas. i (a) Existing land uses: size, type, location and shape of traot. I j (b) Current toning including planned developments: also, location and type. I i I i W Planning and Zoning Commission December 9, 1988 Page 2 (c) Physical and environmental features: size and type of arterials, creeks, slopes, flood plains, trees, property lines. (d) Consistency between the concept map and the zoning mop. (e) Land use compatibility. (f) Intensity capacity of a specific area and adjacent areas. (g) Impact on infrastructure. 3. OOptiono There are three distinct options for boundaries of this moderate node. gash option is being reviewed here in terms of its advantages and disadvantages relative to the applicable boundary variables. (a) Option A: Boundaries Include the existing single family and Light Industrial Planned DeveloMmt Zoning. I (b) Option B: Boundaries exclude the existing single family housing i but Include the Light Industrial Planned Development E Zoning. (o) Option C: Boundaries exclude both single family housing W.Light Industrial Planned Development Zoning. 1. [fin}lYSls Sao attached page. S. Buggy and Rscoasandations The two major areu of concern in this moderate center relate to the else of the nods and the potential for strip commercial development along Highway 380. In all the options, the node to over 60 terse although Option C comes closest with 71.13 acres. In con1id11ing the appropriate size of this node, cognisance should be given to the fact that the nearest moderate center to approximately two miles away. The Denton Development Plan requires that moderate centers be located approximately one mils apart. In urban tors and structure the size of centers are directly related to the distance functions. Commercial development along Highway 380 given the approved Planned Development Zoning to the south woes to be unavoidable. The tntensity policies in the Denton Development Plan will favor a change of zoning in this area even if it is piece seal ad some home already ops►its, small businesses. The Appendix A Task Torch considered these issues and voted S-3 to recommend the boundaries given in Option A. I - , r 1 Planning and Zoning Commission December 9, 1988 Page 3 Harry Pereaud, A[CP WP Attachments: I- Maps and intensity calculations for Options A, B, and C. i 2. Minutes of the Appendix A Task Force dated November 15, 1988 and December 6, 1988. 3. Minutes of the Planning and Zoning Commission dated July 27, 1988 and November 30, 1988. lAT3k j i I ~ I I I I i k S S ANALYSI. jF OPTIONS J OPTION A OP'T'ION B OPTION C 1 With SP and LI With Lt Zoning Without SP and LI Zoning I 1, I o Provide overall consistency l o Reduces the size of this centerl o Provides some protection to between zoning map and concept l by 12 acres. ( existing residences. Plan. I I I o Provides some protection to l o the size of this center is o Provides for the best land use l existing residences. { reduced to 71.13 acres. j compatibility considering that l l the existing single family is Disadvantl l Disadvantages 4 wedged in between Highway 380 ( l and Light Industrial Zoning. A l o Residential area no longer fitel o There is lose consistency fw of those homes are currentlyl in with the context of approvedl between the concept map and + operating soma kind of l zoning. l current zoning. business. l l l o Potential strip commercial l o Potential strip coasaercial o Adds visibility to the center l development along Highway 380. l development along Highway 380. through arterial frontage on l i Highway 380. l o Nods is 106.93 acres. Plan i o Boundaries along property and I criteria is approximately 60 l zoning lines are less appro- o Node is within its intensity l acres. l Prieto$ become difficult to capacity, l l distinguish and provide no I I physical separation. 0 University Drive and Trinity l I Road serve as physical 1 boundaries Disadvantages I I o Nods is 119.12 acres. Plan l I - criteria is (approximately) l I 60 acres. l o Potential strip commercial l I development along Highway 380. l l ~ i I l 1473k i I INTENSITY AREA 40 N OPTION N C~~ ~ 1,IM~~`' ~ I Not 0 i . I I I ~ y .h ' I I ~ • I ti 1 C 1 •1t S• .w• 1 I M r4~ f 461.1 6CALL' 0.5's IX01 OATS 11 '7• B8 i I I I i I r I LAND USE MANAGEMENT INFORMATION SYSTEM PLANNING AND DEVELOPMENT DEPARTMENT V CITY OF DENTON Intensity area. 0: 40 Type: MODERATE Intensity-trips/Ac 350 I' Traffic survey zones: 6621A Boundary Oescription: North: University Drive South: North boundary line of tract o 11 in PD 126 Date: 121081ES East: Trinity Road west: west boundary line of PD 126 LAND UqE EXISTING LAND USE CURRENT ZONING PLANNED DEVELOPMENTS CATEGORY UNITS ACRES INTENSITY ACRES INTENSITY ACRES UNITS INTENSITY t 10 12.19 100 0 0 0 0 0 SF-10>16 0 0 0 0 0 0 0 0 SF-T> 10 0 0 0 0 0 0 0 0 LESS SF-T 0 0 0 0 0 0 0 0 MOS. KWES 0 0 0 0 0 0 0 0 DUPLEX 0 0 0 0 0 0 0 0 MF-R 0 0 0 0 0 0 0 0 MF-1a2 0 0 0 0 0 2118 545 4360 i COM/RET 0 0 0 0 0 32 0 20800 OFFICE 0 0 0 0 0 7 0 2450 INDUSTRY 0 0 0 0 0 35.8 0 3759 INSTI'NAL 0 0 0 0 0 S 0 125 PARKS 0 0 0 0 0 0 0 0 E R/0/SPACE 0 n 0 0 0 0 0 0 TRANSPORT 0 5.6 0 10.5 0 0 0 0 AGRIC. 0 0 0 5.33 0 0 0 0 VACANT 0 111.43 0 0 0 0 0 0 TOTAL 10 135.12 100 15.83 0 101.6 645 31794 INTENSITY CALCULATIONS (A) Existing Land Use (1) Intensity area total trips 135.12 times 350 47292 (2) Tripe allocated to existing land use 100 (3) Trips allocated to vacant lands 101.43 times 350 35501 (4) Estimated unallocated intensity trips (1)minue (2)+(3) 11692 (6) Percentage of intensity trips allocated I5- 1 (8) Current zoning (1) Intensity area total trips 135.12 times 350 41292 (2) Trips allocated to existing land use 100 1 (3) Trips allocated to current zoning (incl. planned developments) 31794 (4) Trips allocated to vacant lands not zoned plus Agric. zoning 1888 (6) Estimated unallocated intensity trips (1)minus(2)+(3)+(4 13533 (4) Percentage of intensity trips allocated T1 - i J r r f INTENSITY AREA 40 N011TN OPTION O~NjON.cx 1.1M~j5 II1ri , i ! 1J. W, J 11 f 10 \ i~ ` 1 1 j~E P jwv. 1 1 ` J ~ i SCALE D, /0001 OATE IZ'I'ft; II III i a LAND USE MANAGEMENT INFORMATION SYSTEM PLANNING AND DEVELOPMENT DEPARTMENT CITY OF DENTON Intensity area M: 49 Type: MODERATE Intensity trips/Ac 350 Traffic survey zones: 6621A Boundary Description: North: University Drive South: North boundary line of tract a it in PD 126 Date: 12/08/88 East: Trinity Road West: West boundary line of PD 126 LANQ USE EXISTING LAND USE CURRENT ZONING PLANNED DEVELOPMENTS CATEGORY UNITS ACRES INTENSITY ACRES INTENSITY ACRES UNITS INTENSITY SF-15 < 0 0 0 0 0 0 0 0 SF-10)16 0 0 0 0 0 0 0 0 SF-7)10 0 0 0 0 0 0 0 0 LESS SF-7 0 0 0 0 0 0 0 0 MOB.HOMES 0 0 0 0 0 0 0 0 DUPLEX 0 0 0 0 0 0 0 0 MF-R 0 0 0 0 0 0 0 0 MF-182 0 0 0 0 0 21.8 $45 4360 COM/RET 0 0 0 0 0 32 0 20800 OFFICE 0 0 0 0 0 7 .0 2450 INDUSTRY 0 0 0 0 0 35.8 0 3759 INSTI'NAL 0 0 0 0 0 6 0 425 PARKS 0 0 0 0 0 0 0 0 R/O/SPACE 0 0 0 0 0 0 0 0 TRANSPORT 0 5.5 0 10.5 0 0 0 0 AGRIC. 0 0 0 5.33 0 0 0 0 VACANT 0 117.43 0 0 0 0 0 0 » » TOTAL 0 122.93 0 16.83 0 101.6 546 31794 INTENSITY CALCULATIONS (A) Existing Land Use (1) Intensity area total trips 122.93 times 350 43025 (2) Trips allocated to existing land use 0 (3) Trips allocated to vacant lands 101.43 times 350 35501 (4) Estimated unallocated intensity trips (1)minus (2)+(3) 7526 -----(6) Percentage of intensity trips allocated 83- (B) current zoning (1) Intensity area total trips 122.93 tines 350 43026 (2) Trips allocated to existing land use 0 (3) Trips allocated to current zoning (Inel. planned developments) 31194 (4) Trips allocated to vacant lands not zoned plus Agric. zoning 1866 (6) Estimated unallocated intensity trips (i)ainus(2)+(3)+(4 9366 (6) Percentage of intensity trips allocated 78 J INTENSITY AREA 40 MOIITM OPTION _ LtiMy~tS `p~N~ON C~~Y :5.„ Y 380 (.1/! Ili? A . { 29 i ,.a' ' yl M. ar. . s 46.11 I i SCALE /xo DATE 12 7' bb i kh ' I' ~ I I r 3., r Y LAND USE MANAGEMENT INFORMATION SYSTEM PLANNING AND DEVELOPMENT DEPARTMENT CITY OF DENTON intensity area 0: 40 Type: - MODERATE Intensi-tY-t-r-1 s/-Ac 350 Traffic survey zones: 6621A Boundary Descrlotion: SNorth: outh: North rboundary vsins of tract 0 11 in PO 126 Date: 12/06/88 wEast, est: West boundary line of PO 125 LARD USE EXISTING LAND USE CURRENT ZONING PLANNED DEVELOPMENTS CATEGORY UNITS ACRES INTENSITY ACRES INTENSITY ACRES UNITS INTENSITY S F-16 0 0 0 0 0 0 0 F-16 SF-10)16 0 0 0 0 0 0 0 0 SF=1)10 0 0 0 0 0 0 0 0 LESS SF-7 0 0 0 0 0 0 0 0 M08.HOMES 0 0 0 0 0 0 0 0 DUPLEX 0 0 0 0 0 0 0 0 MF-R 0 0 0 0 0 0 0 0 MF-162 0 0 0 0 0 21.8 545 4360 CON/RET 0 0 0 0 0 32 0 20800 OFFICE 0 0 0 0 0 1 0 2450 INDUSTRY 0 0 0 0 0 0 0 0 INSTI'NAL 0 0 0 0 O 0 0 420 PARKS 0 0 0 0 0 R/0/SPACE 0 0 0 0 0 0 0 TRANSPORT 0 5.5 0 10.5 0 0 0 0 AGRIC. 0 0 0 5.33 0 0 0 0 VACANT 0 81.63 0 0 0 0 0 0 j -----0 87.13 -----0 15.83 -------0 _---66.8 -----645 ---28035 TOTAL INTENSITY CALCULATIONS 4 (A) Existing Land Use --K 6 (1) Intensity area total trips 87.13 times 350 30496 _ (2) Trips allocated to existing land use (3) Trips allocated to vacant lands 55.63 times 350 22911 (4) Estimated unallocated intensity trips (1)minus (2)+(3) 7525 (5) Percentage of intensity trips allocated (8) Current zoning- _ (1) Intensity area-total trips 87.13 times 350 30496 6 (2) Trips allocated to existing land use (3) Trips allocated to current zoning (incl. Planned developments) 28035 (4) Trips allocated to vacant lands not zoned plus Agric. zoning 1866 (6) Estimated unallocated Intensity trips 0 )mInus(2)+(3)+(4 $95 (6) Percentage of intensity trips allocated 1 a I AATF . November 15, 1988 Page 4 DRAFT Mr. Claiborne moved that the Task Force recommend approval of the eastern half of the moderate activity center located at the inter- section of Loop 238 and Sherman Drive. Seconded by Ms. Brock and unanimously carried (7-0). Mr. Strange abstained from voting. V. Review boundaries of moderate activity center at Lakeview i Boulevard. and University Drive. Mr. Persaud stated that the node has been discussed with developers in that area. They have requested that the item be w}thdrawn so that they can provide information at another meeting. The Task Force has the option to postpone the item or to discuss it and then table it. Mr. Turner stated that staff is proposing two changes in the node f boundaries that vary from what is already zoned. He asked if the developers would object if the Task Force approved the boundaries of the node based on existing zoning. i The Task Force reviewed a map of the existing zoning in the area. j Mr. Persaud said that the staff took into consideration the fact f that the Light Industrial (LI) zoningg has only recently been granted. There is single family (SF) zoning between the LI and Hwy. 380. These property owners are concerned. One of the land owners has already sought a zoning change in that area. One option is to include the small SF tract in the node. i Mr. Turner stated that he does not like those options. The City j Council took the size of the moderate node Into consideration when they approved the zoning. The node is approximately 101 acres and is too large already. The boundaries for the node should follow the zoning approved by the City Council. The Council was aware of the size of the node, the small tract that was excluded, the fact that there would be a lack of flexibility to extend the node across Hwy. 380 when they approved the zoning. If the City Council wants to include any more acreage in the moderate activity center they can do so when a zoning request is made. The decisicn should be theirs. The Task Force should follow what has been zoned and approved. Mr. Strange agreed. Ms. Mead stated that she had only discovered the previous day that the item was to be on the agenda. She said that if the Task Force intends to change the boundaries of the node to something differ- ent than what is zoned, Mr. Alex Bascom would like to be present. He would not object if the Task Force approves the boundaries based on existing zoning. Mr. Strange stated that the property owners in the small pie shaped wedge between the LI zoning and Hwy. 380 are unhappy. I I AATF Page November 15, 1988 j Ca u y Mr. Persaud said that the area is currently in transition. Mr. Stem said that the property owners in the wedge are trapped and hedged in. This should be remedied. Their property value will go down and the City will not let them do anything with the property if it is not included in the node. Catering to a major developer is hurting those land owners. Mr. Claiborne said that they would be hurt because it would be detrimental to further SF zoning. However, there is potential for increase along Hwy. 380. Mr. Turner stated that some of these land owners were in favor of the PD when the surrounding property was zoned. They agticipated selling for a profit later on. The node is too big. He said that he does not want to enlarge it. If the property owners request a zoning change, the Planning and Zoning Commission and City Council can make a decision. Ms. Brock stated that she had voted against the PD amendment because :he node was too large. She said that the Task Force is not responsible for the left out wedge. The Planning and Zoning Commission made a decision a while back. Any change is the decision of the City Council. Mr. Turner stated that the Land Use Planning Committee wanted the roderate activity centers to be 60 acres. This node is already too big.and the Task Force would not consider increasing the size. Mr. Stem stated that the City made the policy of having 60 acres moderate activity centers. The City changed the policy to make the node bigger. The policy needs to be changed again to keep people from being hurt by the original change. Mr. Turner stated that the approved zoning kn the area was judged by the Denton Development Guide. Any new zoning requests will be judged using the Denton Development Plan. I Mr. Engelbrecht said that he would like to see the PD ordinance to see what it says about the moderate node. He asked how the City accommodates nodes within PDs. Ms. Mead stated that the PD ordinance specifies the zoning on the ground and ties it to the concept plan. it does not specify the moderate node. Mr. Claiborne asked how light Industrial zoning had been dealt with in other moderate nodes. Mr. Persaud stated that the LI was left out of the node at Loop 1 288 and McKinney. The staff would recommend including the LI in the node at Lakeview and Hwy. 380 but is concerned about the left out wedge. f i I ATF November 15, 1988 November RAFT Pa ge 6 Mr. Stem asked what the Development Plan says about excluding pieces that are jammed in. The intent of tha Plan is probably not to hem up small SF tracts. Mr. Turner stated that the wedge is zoned Agricultural. It is not a protected SF area. Mr. Stem said that this wedge was probably annexed against the owners' wishes. It is unfair to hem them in. Ms. Brock stated that it is a zoning decision, not a Task Force decision. Mr. Stem said that it concerns the moderate node which is the area of the Task Force. City policy has been violated and the Task Force can recommend a more appropriate boundary. Mr. Engelbrecht agreed with Mr. Stem. He said that he could not see a positive aspect to warrant leaving the wedge out of the moderate activity center. Ms. Schlagel said that wedges were not left out of the other nodes f and that criteria should apply in this instance. Mr. Claiborne stated that a small amount of access frontage now will discourage further moderate node activity across Hwy. 380. E I Ms. Brock stated that a property owner next to the existing Multi-Family requested GI zoning and was denied. Mr. Glasscock stated that he is concerned for the property owners In the wedge. Mr. Strange pointed out that the Task Force has used roads and i natural boundaries in other nodes. The people in the wedge should not be penalized. I Mr. Engelbrecht agreed that the access frontage Is a problem. Mr. Persaud pointed out that there are large houses in the wedge. It is a beautiful area. The uses will probably not change very j soon. The Task Force considered an aerial of the area. Mr. Strange stated that it makes sense to include the tract. It will still have to be be zoned as the requests cone in. Mr. Turner stated that the City will end up with a commercial strip along Hwy. 380 which is already 251 over standard in Intensity. Mr. Engelbrecht said that Agricultural zoning was included in other nodes. i J i AATF November 15 , 1988 Page 7 DO.RAFT Page Mr. Stem said that the City is at fault here and should rectify the situation as equitably as possible. Mr. Engelbrecht stated that he would like to ask Mr. Bascom if he would voluntarily withdraw the Ll zoning from the node. Ms. Mead stated that she is authorized to say no. J Mr. Turner stated that there is no possibility of reducing the node to 60 acres. This area will be developed. Some of the other nodes may not be. Mr. Strange said that there are places that the City cannot improve. There will only be flexibility with new nodes where development and zoning have not yet taken place. He moved to recommend the boundaries of the moderate activity center be along Hwy. 380, Trinity, and Lakeview Blvd. Seconded by Mr. Stem. Mr. Turner stated that the Task Force is extending a invitation 1 for another 17 acres of commercial zoning. He said that he could not support the motion. 1 Vote was called and approved (5-3}, Ms. Brock, Mr. Claiborne, and Mr. Turner voted no. Mr. Claiborne stated that moderate activity centers are usually on all four sides of intersections. The property owners on the north side of Hwy. 380 will want to be included in the node. He moved that the Task Force considers the Lakeview/Hwy. 380 node to be unique and recommends that the node not be enlarged on the north side of Hwy. 380. Mr. Stem stated that the node is not unique. It is only different because it is so large. That was the decision of the city. We should not consider it unique because there is nothing out there that causes it to be so big other than the City decided to make it that way. Mr. Claiborne said that the zoning put the node there. This Task Force has little to do with the zoning issue. I Mr. Stem stated that tl.:- Task Force recommends not enlarging the node across 380 because the zoning exists on the other side, not because the area is unique. i Ms. Brock stated that the node is unique in its size. The Task i Force did not create the size of the node. Because of the zoning the Task Force really did not have a choice about the size of the node. Mr. Turner suggested amending the motion to state that the Task Force recognizes that tho node does not conform to the Development Plan ecauseo of Its size and therefore recommends that there be no north side of 380. further I i ( 4 s ti AATF November 15, 1988 Page 8 f~' BRA j~ ' T Mr. Strange stated that no one will come behind the Task Force and change the shape of the node. Mr. Claiborne stated that the Task Force would like to leave a clear message concerning the issue. Ms. Brock stated that a policy statement is helpful. Not only would the City Council and Planning and Zoning Commission have to overcome the boundary lines, but they would have to overcome the policy as well. It would not be a routine matter. Mr-'Claiborne withdrew his motion. Mr. Turner moved that the Task Force recognizes that the moderate node is already too large based on the Denton Development Plan and strongly recommends that it not be extended to the north side of 380. Seconded by Mr. Claiborne. Motion carried (7-1). L Mr. Strange voted no. The Task Force agreed to meet on November 29 and adjourned, 1 1 ~ i j r 1 ! l f 1 n i DRAW, MINUTES Appendix A Task Force December 5, 1988 n~erina ~r rho arrer,114 A Task Force was held on Tuesday, oecember 8. 1998. at 5:15 p.m.. in the Planning Conference Room of the Munlciral Suildlnq, Denton. Texas. Present: Eullne Brock. Bill Claiborne, Ivan Glasscock, Merlin Lee. Beth Schlaoel. Taylor Stem, Virgil Strange, Mitchell { Turner Absent: Jim Engelbrecht, Richard Hayes, and Vicki Holt Others Present: Frank Robbins, Executive Director for Planning and Development; Harry Persaud, Urban Planner; Olivia Carson, Secretary; Susan Mead; Ack Bescom: and Morelle Miller Vice Chairman Strange called the meeting to order. 1. Reconsider the boundaries of the moderate activity center located at University Drive and the proposed Lakeview Boulevard. 1 Mr. Persaud presented a list of variables for making boundary decisions to the Task Force. He stated that the variables are what the Task Force has been using all along, but an at IF icial list is needed for the record. Mr. Claiborne arrived at the meeting. Mr. Persaud stated that the Task Force's recommendation for the boundaries of the moderate activity center located at University Drive and the proposed Lakeview Boulevard was presented to tho Planning and Zoning Commission. The Commission voted to have the Task Force reconsider their recommendation. Mr. Strange asked why the Task Force needs to reconsider the recommendatior.. The Planning and Zoning Commission can make a zoning decision regardless of the boundaries of the moderate i activity center. Mr. Persaud stated that staff had agreed at the Planning and Zoning Commission meeting to ask the Task Force to reconsider their recommendation. If the Task Force wants to pass along the statement that they have reached a final decision on any particular issue, that can be communicated to the Commission. r DRAFT Mr. Claiborne stated that he is willing to reconsider a decision if there is new data available that could influence the decision. Otherwise, the Task Force should stand on their recommendations. The Planning and Zoning Commission stiII has the oower to recommend other options to the City Council. Mr, Robbins statec; that the Planning and Zoning Commission did not approve the boundaries recommended by the Task Force. and the staff report for the zoning case was written based on the boundaries being approved. The Commission decided not to make a decision on the zoning case until they make a decision on the boundaries of the moderate activity center. _ Mr, Persaud stated that the Commission felt that the recommended nods is too large and would allow strip commercial development along University Drive. Mr. Strange said that the Task Force will not be able to achieve any objectives if they must reconsider their recommendations for boundaries every time a zoning case comes j up. Ms. Brock stated that the Commission will not be able to ; discourage strip commercial along University Drive if the boundaries of the node are approved as recommended by the Task Force. Mr. Stem said that the Task Force would like the node to be 60 acres in size, but the Council has already made a decision on the size of the node by awroving the zoning for the planned development. Mr. Strange said that the Commission is not compelled to grant { commercial zoning gust because property lies within the I boundaries of a moderate node. li Me, Schlagel arrived. J Mr. Strange stated that the people in the residential strip between University and the light industrial zoning will be adversely affected if their property is not included in the moderate node. Mr. Stem pointed out that the highway is an obvious boundary e for the moderate activity center. 91 Mr. Persaud stateC that the strip in question will probably develop as commercial regardless of whether it is included in the node. 1 Mr. Turner moved to reconsider the decision on the boundaries of the moderate activity center located at University Drive and the proposed Lakeview Blvd. Seconded by Mr. Strange. Motion failed due to a tie vote (4-41. i l DRAFT Mr. Robbins stated that the statf will brief the Planning and Zoning Commission on the decision of the Task Force and would give the Commission the cottons of going along with their recommendation or making a ditferent decision on the boundaries and voting on the zoning case based on that decision. 1 f ~ f r ~ IE I I r t i ~ f i E i 1 (A PETITIONER: Bud Hsuptu n, Netroplet Engineering, stated NIP a would answer any questlons that the Commission nay have. 14 FAVOR: 4ons Present. I~ OPPOSED: None Present, AECOMMfh'DAT104: Ms. Carson stated staff recommends approvj at 4-81-014. f REBUTTAL: None Offered. Chair declared public hearing closed. II DECISION: Mr. Glasscock moved to recommend approval of 1.18.114, Seconded by Mr. Kaeman and unanimously carried (7.0). g, 10.013. Consider making a recommendation on the petition at "itmo,Inc. requesting approval of a planned development and conceppt plan on property currently toned planned devel- opment (FD•126) and air cultural (A). The request includes approiisately 167.1 acres of property located south of U.S. Klghvay 380 along Tr)nlty Road and Late Lewisville and ea- tends approximately 2,400 feet south of FM 826 (East Mcginney Street). The property is more fully described as a ppart of the Moreau Forrest Surrey Abstract 417, and the Mililam D. Durham Surrey, Abstract in. It approved, the ` following land uses would be peraitteds f ! ` Single Family - to 171.0 acres with a density of 3.2 units per acre Single Featly - 7 • 226.1 scree with a density of 4.3 uniti-per acre Single Fuily Attached f 64.4 acres with a density of 10 unite per acre Cluat11.1oaoie with a density of 1 units per acre Multi-Faally , S9.1 acres with a density of IS units per acre Otlls16.2 acres i Neigbborhood Service • 12.0 acres General Wall • 49.7 acres Light Industrial • 35.1 acres community facility • 10.0 acre + Schoollferk • 30.2 Acres Park • 34,3 acre Right-of-way 67,s across Twenty eight notices were galled to property owners within 200 feed also reply form was received in favor, and one was received opposed. STAFF REfOR t we. Careot stated that Abe would go over a sugmaryo changes is the concept plain that have occurred since the lost resentsttom. Me, areas stated that in cempordsoi to t9o density of the eistlmg losing of to units to the acre, this proposal lscludiag moderate node areas to 7.1 units to each sere. The low Intensierr areas acteagid that the ausbees did are not include`the r4ght`oiway She add -32- 1 I 4 _ • J Isis She continued that the existing planned development, regardins the public use category, included a percent for arks an school sites and also incluaed a donation of S150,000. She said that the monetary donation was to prepare Corps of Engineers property located east of the parcel. Sis. Carson stated that, In the concept plan being con- I sidered, a percent is desl noted for public use, wAlcA included WS acres of lan~ for parks to be donated and one additional school site, Tract Sa, which would be negotiated it necessary. She said the parklana dedication stanaard of one acre to L00 dwelling units showed that the requirements for Lak!view would be lA acres. She added that the parkland dedication standard of three acres per 1,000 population would be 36 acres, She said that in the Lakeview/Southview area, there was a proposal for 9i.S acres, I Ms. Carson stated that the existing zoning was 101 percent over the standard and 10 percent over the standard ase4 on the moderate nodes as they were expanded by toning. The overall proposal for Lakeview cone apt pi an fe S percent under the intensity standard. She said that the request is for greater than a ppropportionate share of intensity in the moderate node at U.S. H! hwsy 310 and Lakeview loulevard. Ms. Carson stated that tie area did include a 15 more site north of the fntersectlon. She said that It was based an I the Development Guide statement that the moderate node is 1 located at the intersection and the assumpption that the 30 acres is squally divided to each corner of the intersection. The node could be expanded from 30 acres to it maximum of ISO acres based on policies of the Guide. Ms. Carson stated that to staff's basic calculation, the IS acres in the north were included, She added that eRp actual propor• ticnate share would make the moderate node 3S percent over the standard. If the right-of•way was included, it would be 17 percent over the standard. Me. Carson stated that the moderate node at FM 126 is under the standard based on the intensity standard and 9 percent under the proportionate share. With right-of-way included, the low intensity area would be epproximately 23 percent under and without including the rllsht-of•way would be 16 percent under. Mr. tunas asked if Ma. Carson would expand on the 15 acres north of U.S. highway 310. Ns. Carve stated that is the Development Guide, the moderate model are defined at being j located at intersections, Under the resolution that was Gsold by the City Council in 1917 a 30 acre node was included it the intersection of U.I. Highway $10 and the proposed Lakeview loulevard. She said that in proDGrins the analys U, the develepp•r requested 101.6 acres In the moderate node, In additioa there Is an allocation based on lis M ' Interyretation 01 the Guide, that there would be 1 30 acres at the latersettlost therefore, there would be 15 acres on the north. side or outside of the development ppro-. be ` the overall nods# it this poinntswoullobo 114!.6 Acresttnt f site. Mr. Holt asked if the Commission was to make a decision on t the 1S acres. Ms. Carson said Be. Mr. Nett asked if the amea4me0t rocomeended a SO mete node at the corner. No. Carson stated that the Development Guide States that the 00446 Stitt at 30 acres and say be expanded with diversity to ISO acres, she added that the 30 acres would be the starting point. -33- 11 J it :ujY 1.e1 e s Mr. Holt asked If the Levelopment Guide stated that the f _ developers had to alIo a to for each corner. its. Carton said no. Mr. Entelbrecht asked if the triangular piece of property located at U,S, hllhway 380 end pproposed Lakeview Boulevard was part of the adderate node, ,ks. Carson said there are attly tS Dalnt acres that have not been defined, at this . as b elnl part of the maderate hone. Mr. Entelbrecht mated what would be the options for the stated that piece ce posof ty sl ppbrolllpperty In the future, !ss, Carson ty s, on the PlanniAtlas nd toning Commiswisioth n raecond ammerndoatyi al o t ram Connell, was that the boundary of the moderate r,odet<oull be created Include the property heaven Yriniey and Froposed Lakeview Boulevard. She added that It had not been done at this feint, She said, however, that at this ` time, only the tonas request and in expansion of the 30 p acre node was being requested, Mr. Holt asked if the residents in the triangular piece had requested a zoning chance, Me. Carson said no, that one and one-half years ago a property owner had requested a zoning change and that the case be considered when zoning was being considered for Lakeview. khen it had not gone through as quickly as anticipated, staff suggested they withdraw their request. She added thit there are no toning requests currently in the office for the area, Mr. Holt asked what would happen to surrounding p it the plan was limited to 80 ac r• nodes and the pallertles amount of moderate nodes had already been given to othered developers, l+s. Carson stated that if all the Intensity ` his boom allocated the Commission could make a recommends- tion based an the least intenso, east logical land use for the area, or what would fit in without being too far over the latenslty scale but would be within reason for that ` particular area and than the City Council would make a II determlaatlo■ on it. Mr. Holt asked ;f there was a passibility that the area could remain low latemsity. No. Carson stated that the Councilyapprovedeaamoderatelliaenpoundi yathatuIncorpor- ated the area. Ms. Carlos stated that the city has a Sao teat strip, which would Involve approximately 150 (met north of the center line and tho rut of the property north of U.S. highway 300 Is outside of the city limits at this list. 18f1TIONI11s Alexander S. 0ascom Jr., partner with R40 ea ty ac. mad Robert Baea, said he wanted to thank each of the Commissioners for taklal the tie* to l gook with his dlicuiilonsshive l ives the@ fil moerliaiig)atzand thhescurrent submittal was a siacere effort towards compromlie an the part of the developers. He said that whom liked to participate to the attempted reeurrectlem of the eases, two items became clear to him: that kllg Reslty tae. had boas unreasonable for not further reducing the existing Iodise in the merth slid the new propose is the lout was not within the IStvelopeemt Guide standards. No said that the coamomts he had prepared did not separate Lakeview and Southview Add would therefore be speakint of both to ether mad whea Southvlew was presented he would be srallobge to answer questtons. -34- 11 1 e i I Mr. Bascom stated that the developers have deleted the middle node completely on Lakeview. In regards to the moderate node, a five acre office traet has been convert r4 to a community facility, the number of apartments has bee.i reduced, the density per acre in the single family atcacned has been reduced from the ort inaL 10 units per acre to units per acre, which is actually 6.1 if the right-of way was included in the denominator. He said that with regaras to the intensity of the northern node, it is now between i percent and 25 percent, depending upon which calcutarlan is acceptable - either considering or not considering rlgnt-of- way. He continued tnat the node was completely deleted in Southvlow at Colorado Boulevard and they have also brought the residential density within the Development Guide stan- dards of 1.7 units per acre. He said that the deductions and deletions equate to the deletion of 600,000 square feet of retail, 2,9 million square feet of office, vSS apart- ments, and a66 single family units. he stated that they felt the concentratloa roblom in multi-family in Lakeview has been resolved and tat they have addressed the moderate - node site and intensity through reduction and elimination of uses. He continued that in regards to the floodplain and flood. way, the developers are prepared to address the requlre- eents nocetsary to develop the property. The people per acre have been dru tlcally reduced from 23 to LS.9, -In Southviev, the node at proposed Colorado Boulevard has been deleted, but the developers have proposed an additional eight acres over the acceptable four acres so that there would be a total of 12 acres for a grocery store site. He said that the dwelling units per acre have bgen reduced I from 7.1 to 1.1 units per acre, and the people per acre have been reduced from 10 to 13.6 per acre. Th}} separation problem was eliminated along with the mutt family that was over the Devolop pat Guide standards, The development Ia i percent under tAe intensity staodsrd vithout right-of-way and 1 percent under the intensity as ndard with rlght•of- way. ' Mr. Bascom said that the developers .ootinued to be cot- fitted to the donation of rignt-of•way for and the construc- tion of a air-lane road frog 1.351 to U.S. Highway 310 in ` the north, He said that he wanted to state for the record r that a load Utility District would not be used for the coostructlos of the road. Thad Iruadrott, 1100 Macon Street, Fort worth stated that he was a $ontor Planner for Carter 6 Burgess Ingineers and planaers. No said that is the initial Its`so , they reviewed exlstiag physical features of the land sucA as topography, hydrology, natural $trot" , draws and drainage ways, vegf- tatles, as well as the existing toning. They then began conceptual lend planning, Mr. Iruadrott stated that Lakeview and Southview planned developments proposed to Incorporate a primary thoroughfare linkage In the fors of Lakeview loulevard from interstate 3S to U.S. Highway 310. This primary arterlal to proposed as a Ili-late divided roadway and to to be constructed In ' stalls coordinating readwo( development phases with adjacent parcel developeea IN FAVORS Tom Peters 1614 that he owns ten acres of pr-oppe-rE'y which Is located 200 teat Iron the dudend of H<ilnaey Street. Ma statod that the developmaat would alleviate the too fogies that is buildin up in other areal of Denton. He felt that It would not on~y promote growth but would also be to the advantage of the City of Denton. -35- i f e 6 gay Wilkinson stated that she lives in the area and Is for the development but was concerned about being able to chart `s the roving of her property for resale in the future if all the Intensity is allocated. 4r. Halt asked 4s. kllkinson if her propperty vas la the city limits. Ms. kllkinson said Yes, since 1977. bfr, Halt asked if the developers contacted her or hoo offer- ed to buy her property. Ms. Wilkinson said the developers had contacted her about the toning request. She added a realtor. who did not indicate if they were associated with AMb Realty, had contacted her several months ago. 4r. Holt asked Me, Wilkinson it she knew how Many acres were In the property located in the trlan`it shat was dis• cussed earlier. Ms. Wilkinson said she did not know but thought the residences were located on one acre tracts. [lento Powell, It. 7 Denton, stated that she felt the devel- opment would be an Asset to the City of Denton. She said • the developers worked hard to satisfy the needs of the people. Francis Cray said that she !Sees in the Southview area and had contacted those that lire, around her and was speaking ` for herself as well as the others when stating she was In i favor of the devel-3psent. E OPPOSED: Bill CIotborne, 120 $material Denton, stated E tT,aF-Ti-i saw a pyroblem with the moderate node at Lakeview Boulevard and Eelt there was room for additioaai improve. meats to the concept plan. Ms. !rock asked Mr. Claiborne it he had any suggestions for the Comsistiom. Mr. Claiborne said to possibly reduce the amount of sulti•fBelly, single family attached, retail, and light Industrial. I 1, 1. locust 707 Aid`ocreet Denton stated that the plans were bettor but still were not loos enough and felt the Commission should ask for further Improvements. Mitchell Turner, 2111 Stonegate Denton said he felt the changes vote significant but were still too higih in Latta- crowdedMdevelopmeetitinsregard tostheadensity.toe over- Sue Smith, 1131 Crescent Deates, asked if tba amount of yyarklaikd spocified was adequate. Ms. Smith, with the Parks standardstiad t edaerosolAwas grafterdthan required,the ~ I b COM 111;AT[OM`h No, Cor of stated that staff recommended 1. All laforeatlom walrN by the planning and Devito seat Dopartmeet at the Concept Me stage must be lubaltted with the Detailed plan includloi: location of lots in a resideatial subdivlslosl location of aa)or drainage facilities and Leprevemostst location of me or electric- al lives$ and locatloa, site and type of all fences, 1 berms. or ecreemlag futures, II 2, trans lt, 11, 20, 21, and 11 dell noted on the Concept J Plan is parts or parts/school shall be donated to the City of gifts with the first ap roved final plot for 1 the phase is vhleh the property is leeatsd (excluding platting for public improvomeats only). ~h -36- i 1 .elf Todd S. Road construction and Improvements shall be comppleted in accordance with the submitted phasing sch+dule. ~o building permits shall be Issued for the nest phase of development until the bridge structure linking the phases has been completed. a. Land uses penltted in the following categories shall be In stCOrdance with the applicable sections of Appen- dix 1, Zoning Ordinance, of the Code of ordinances. The following specific restrictions are Imposed: Light Industrial: Land uses shall be approved with the detailed pan or those tracts. Uses to be excluded from Light Industrial areas are. 1 Amusement, Commercial (outdoor), Drag Strip or commercial Racing Asphalt Of COnerete Batching Plant (permanent) Brick Kiln or tilt Plant oump or Sanitary Flll Area Extraction and Sale of Sand, Callche, Stone, Clay or Gravel Fairgrounds or Exhibit Ar,u Go-Cart Track Hatchery, Poultry Hauling or Store`a Cozpany Heavy Machia•ry Sales and Storal• Llvestock Auction Livestock feeding Plant, Pens of Yards Minis or Storage of Mining Mmsta$ Open falva • Yard e Petroleum collecting or Storage Facilities Private Utility Shop or Storal• Yard I Rodeo Grounds Send, Gravel or Earth Sales or Storage Stable, Commercial Rental Stable, Boarding Stable, Private Club Storage end Sales of furniture or Appliances Outside a Building Tire As-Treading or Capping; Tool Rental Trailer Rental or $ales Used Auto Parts Sales Genera Rot I Article 7 Subsections 6 and H. c•s ro •ssiomal and Administrative Offices, + orb o S;ervlcei Article 7, Subsection M. I oana a ultyi Land uses shall be approved with TS-4 e a • p am for these tracts. Community facility { uses may includes Art Gallery at Mus•u■ Cemetery Church or Rectory College or university Public School - Private School Community Center Day Mursary, Day Care or 1l11dergartem Moepital tasiitutioms of Religious or Philanthropic Nature Library Nursing Norm or Resldsmcs Mama for Aged park, plarrlroumd or Public Community Center Fire Statlat or Similar Public Safety luildiml Public Building of Local, State or federal Covernmeat 9 Other similar uses approved on detailed plan, I -37- i r~ V i y 7, L484 a b S. No access to Tracts 6 and 9 shall be permitted on Trinity Road, if any of the requested ppublic tapraresents are to be constructed by the sala of the bonds under the Lakeview Road Utility Disptrict, prior to the final thesfoltowlnjenoclcearhalIrbeapiren toatRa purchaser: ..The realpppropporty, described below, which you are utllltYODlstrict, iTheadistrict hat tasin~eauthority separate from any other Lasing authority, and may, bavd$- it ofpthisldate,/othesmosttrecenterate of states It vied by the district an real property in the district is 3 on each $100 of assessed valuation. The tote aT mount of bonds which his been approved by the voters and ssued is S--tch . have b Theepurposeaot thetdistrict ise i to provide for tTie construction and, prior to conveyance, street orleadereroads."•tThenlegal doicrippltlonrofrthe property which you are acquiring is as foliOva: aVt@ gam sires o • er "The undersigned purchaser hereby acknowledges receipt of the foregoing notice prior to closing of the purchase of the real property described to such notice." Lis t$ grit ur► o urc eaer This notice, following elocution, acknowled might, and closing of purchase and sale shell be recorded in the dead records of Denton Cou,.y, pp ■entgwouldebe presented todthe planning andrCeai ssion separately. Mo. Carson said detailed plans would be required for each tract. Ms. (rock asked It improvepnts to surroundin roads were to be Included as to 10.126. He. Clark stated that the phasing stated that t• roveaents would be side it the equlred" nottthitrthey wouldstressed buired" toerepair the cooditiom of the roads. No, Irock asked that In regerdt to the devote sent phases, swrouldth•.reMr. Clark stated that he assumed the response ianidand he did aot feelathere would bo a er and flow response time, 1 Mr. Holt asked th2c to relards to a moderate node, it I the Piaa stated to acres mad the Comsissloa ranted 101,6 acres, it the Coaelssioa would be limited under the Plan. No. Carson stated thst the boundaries could be redrawn uyoo recoomeadatfea of the Cowlssloa and approval of the City Council, Mr, would horn the city. Mr. Robbins Consolation thathe t he did not fool it would be a problem. -30 - i 'i. .III it el v lsil 1 9 Mr. Molt asked what tYDa of legal assurance the City MAI about not using the RUG to finance the road. Mr. Morris stated that the state law autnorites the City to dissolve the district. He stated the City Council can dissolve the district at any time by adoption of an ordinance. He continued uthat under pon annexationeofwtilI district eay have inen the kUD but it the Council w rated to dissolve the AUD, in ordinance should be adopted to clarify the situation. Mr. Holt asked if the City could stipulate that a kUD could not be used without a proval from the City. Mr. Morris stated that the City nas to approve the construction plans prior to use of the RUG. ''i. Brock asked if an additional condition could be added to state that a RUD would not be allowed. Mr. Morris stated that a recommendation would have to be made to the City Council. Mr. Engelbracht asked how long It would take before it would go into effect. Mr. Morris stated that as soon is the City Council paned It. i Mr. Engelbrecht asked what options could the property owners Eor the triangular property have. Ms. Carson stated that the moderate node boundaries could be redefined to include the piece of property. REBUTTAL: Mr. Bascom stated that the developers were r1C1'~ to agree to a condition to the planned develop- ment tlat the RUD would not be used. Chair declared public hcaring closed. DECISIOMt Mr. Holt asked if the phasing would involve an supIns. Me. Carson stated yes that a detailed pLan would be required which Includes the submittal of a land- plan. Mr. Holt Stated that he had two me))of problems wish the development, V the Road Utility fiistricr and 2) the moderate node. He %slieved that the moderate node could be dealt with later and the BUD should be dissolved. Mr. Holt moved to recommend approval of 2-60.013 with condition number sit bola` substituted to state that no Road Utility District shall be used for the construction of a road. Seconded by No. Merits. Mil, track stated that ebe was net is laver of the devel- op-,oat because of the moderate node. No. tract moved to mate an uesdmeat by addin` a condition that all electric service stall be purchased from the City of Denton. Seconded by Mr. Gla `cock. the cooditloa, Mr.klaicoi laid tai potii o or hadenoto objectless. P Mr. Morris stated the 00reportl1rr would be sold to tle ftemntti o possible to require them idand It woud to Purchase city. Chair called for a veto oo the amendamt end It carried unanimously (7-0). i -39- l • 1e lea' 4r. Ksoman stated that due to the moderate node problem, he w s unable to support 2.8/•017. Chair called for a vote on the original motion with amendment to approve 2.11.015 and it carried (4•S)LL fntelbrecht, wr. taxman, a M nd !!s. Brack rotsd n;. . C. 4•1111. Consider taking a recommendation on the petition o 'Ad CnInt. requ*sting pro aDDrarmI of a planned development orment(PB~Iil~nd opDProparty currently toned planned derel- ncludms ap ~roaidatelg9nd agricultural (A). The reQuesc icludiaate y allla9 acres of yyropderty located Pecan Creekan1.100 feet north of I•SSE and extending to Surrey, Abstract 1]70r.uand thhwwillliam b permitted: ing lland usesyr Abstract permitted: it approved, the tolowin land uses would Single family - 10 ~i S,; 12.0 acres wlcl a density of 3.1 units per acre gle Family • 7 • 190.4 acres with a density of 4.7 units per acre Single Family - a 50.4 acres with a density of 4,7 units per acre cluster homes .6 acres with a density of 1 units per acre Mu1ti10 Famiy Neighborhood $#twic~ a density of tt units per acre 0,0 acres Co sunity Facility • 3,0 acres General Retell • It.0 acres ~ School/Park Perk 10.0 acres • 11.0 acres Right-ot•way • 31.5 acres h Flfteea notices were sailed to property owners within 200 feet; 6~e reply fora was rettlyed la favor and one was received in opposition. S?APF RIP t Ms. Carlos stated that la retards to the atens y, he pr; arty is a low far#$lty area as defined by the Coates Dereiopseat Gulds. She said that according to the calculations, the pproposal was S Percent wader the iactaeity atoadard excluding the right•ef•wey, NF. Carson stated the project cinforas wit's the Develop. most Guides stsadards is the area of demo)ty with a.l unite to the acre in single tally lad ti units or acre with ■ulti•taall , for a total doMity of 5.2 umlts td the acre excluding t4a right•of•way, the total density would be slightly gels with the right-of-way lacluded. She said there more seat qquestloas regordiag the school site Is the 100 ear floedPlala and that the citi has requested that the from be elevated, No. Carlos coallmued that a portion ev the property 1 located at the iatetsectlea of Fockrus toad and Shady i Shore/ is 16404 p1aa4N development. She stated that one p1e4atd derelopmoa2 Is maned for 31•7 and eltate•tUyd rcoldences and the second ' is for a asmufactured Aousing lubdlvisloa. She stuld the remaining property is toned agricultural. - 40 - i t DRAFT IF, Con}ider making a recommendation to add the intensity calculations for study area 40 to Appendix A, Denton Development Plan. STAFF REPORT; Mr, Pereaud stated that the Appendix A Task Force considered the boundaries of the moderate activity center, known as area 40, at its meeting of November 15, 1988. The Task Force agreed that this nods should not be extended north of University Drive because of the high quality of existing single family housing in that area. Mr. Persaud continued that the Task Force voted 5 to 3 to recommend the following boundary description for this moderate node. "All that are bounded on the north by • University Drive, on the east by Trinity Road, on the south by a line separating multi-family and Light Industrial zoning from single family SF-7 zoning in PD 128 and on the west by Lakeview Boulevard and j the west boundary line of PD 128; and incorporating approximately 119 acres," Mr. Holt asked why three members of the Task Force voted in opposition, Mr. Pereaud stated that the Denton Vgvelopment Plan states that a moderate node would include 8ri acres and by including the Light Industrial area, made it larger. These members felt it should stay as close to the 00 acres as possible. Ms. Brock asked what was on the northeide of this area. Mr. Pereaud said that on the north are single family homes. I Mr, Holt stated that he had a problem with the area and felt that a strip shopping center would be built in the future if the homes were included in the moderate node. He added that he felt the triangular area would be the first to be developed. Mr. Kamman asked what would happen to the area if the moderate node was denied. Mr. Holt said that he would assume that it would effect the value of the property. Mr. '~lasscock stated that he is on the Task Force and he was one that voted in favor of the area. He continued that the property is locked in and unless something is decided upon for the area, the property owners won't be able to do anything with it, DECISION: Mr. Glasscock moved to recommend approval of the area as approved by the Task Force. Seconded by Mr. Kamman and the motion carried (3-4). Ms. Brock, Mr, Holt, Me, Kiker, and Ms. Morgan voted no. 1) I r i1 I PAZ Minutes November 30, 1988 Page 2 DRAFT Mr. Robbins stated that the Commi.lsioners may want to consider different boundaries anc vote on the new boundaries. He said if not. staff would take it back to the Appendix A Task Force and let 'hem recommend a redefined boundary. Mr Engelbrecht asked what would happen to the zoning case if the Commissioners chose to send area 40 back to the Task Force. Mr. Robbins stated that it would be postponed until after the Task Force made its recommendation. Mr. Engelbrecht asked if there would be an additional cost II to the petitioner. Mr. Robbins said no. -Alexander Bascom Jr., RMB Realty Inc. Dallas, stressed that RMB had told the Brooks that they would be in support of the zoning change but felt that if the city was going to start tampering with the lines of the node, it would be unacceptable. He said that to draw new lines and to take k out part of the planned development would give RMB a fear of the unknown. Mr. Holt stated that he did not sea why it would affect RMB Realty, Susan Mead, attorney for RMB Realty, stated that if the planned development was not in the moderate node, the city could come back later and downzone the property. Me. Brock stared that she felt area 40 should go back to the Appendix A Task Force to redefine the boundaries. The Commissioners agreed. Mr. Robbins stated that it would be put on the next agenda for the Task Force. f I ~ III, s I .a , DRAN Minutes Planning and Zoning Commission December 14, 1988 Page 2 III. Considerations A. Consider making a recommendation on the boundaries for the moderate activity ce ter located at University orive and the proposed Lakeview Boulevard. -1 STAFF REPORT: Mr. Persaud stated that at the last Planning and Zoning Commission meeting, the Commission expressed concern about the size of the node being too larss and that strip commercial development was likely i to occur along University Drive. The Commission requested that the item be sent back to the Appendix A Task Force to be reconsidered. The item was placed on the Task Force's December 6, 1988 agenda for reconsidera- tion and the Task Force voted 4-4 on a motion to reconsider its recommandation. Mr. Persaud said the motion failed due to the tie vote and staff is returning the matter to the Commission to consider making a recommendation to the City Council. Mr. Persaud stated that staff included in the Commissioner's backup material three options that they could choose from or to consider their own boundaries. He said that option A has natural boundaries (i.e. University Drive and Trinity Road) though it consisted of 119.12 acres. Option B excludes the single family homes and consists of 106.93 acres., Option C excludes the single family homes and the light industrial area. The size of Option C is 71.13 acres though there is less consistency between the concept map and the current zoning. Mr. Persaud said that potential commercial development could occur along Highway 380 in Option C but all options have some potential present. He said that Option C is less consistent in drawing the boundaries and all options have more than the d0 acres as stated in the Denton Development Plan for a moderate node. Mr. Persaud said that a moderate node should service the surrounding area and the closest node to this is 2 miles, though from edge to edge is about eight miles. , . D Minutes Planning and Zoning Commission December 14, 1988 Page 3 Mr. Holt stated that the lest time it was brought before the Commission, he did not like it because he did not want a repeat of what already is existing. He has since read the analysis and has talked with several staff personnel. He said that with the new landscaping and sign ordinances going into effect, many doubts would be removed. He added that he would now approve option A. Mr. Glasscock agreed with Mr. Holt and added that he felt the same as before and would also approve Option A. pECISION: Mr. Glasscock moved to recommend approval of Option A. Seconded by Ms. Morgan and unanimously carried I B. Consider making a recommendation on Article 17, Signs of Appendix B, Zoning of the Code of Ordinances. 1 ,GAFF REPORT: Ms. Carson stated that she give a summary i, of the meetings regarding the sign ordinance. She said that the Government Relations Committee met with staff and some members of the Beautification Task Force on I December 5, 1988 to discuss the revisions to the sign ordinance and the following suggestions were made by the Commi tt.ee 1. Maximum square footage of signs on I-35 - 160 { Maximum height of signs on I-35 - 30 feet 2. Allow wind devices to extend beyond 5 feet from the building and for a maximum of 30 to 45 days and 1 require a permit. 3. Establish a public awareness program about the sign ordinance. 1 4. Establish a routine code enforcement process to randomly inspect signs including giving notice when a sign complies with the ordinance. 6. Consider allowing two ground signs for state or national flags. 6. Consider reducing the effective area and height of signs allowed on arterial streets. Ms. Carson stated that following the meeting, staff was contacted by a representative of the Government Relations S I i F I I I 1 f~ III R i 3 °t t pp t CITY Of DENT0N,TNXA8 MUNICIPAL BUILDING/ DENTON. TEXAS 76201 /TELEPHONE (817) 660.8307 Office of the City Yonagor M E M O R A N D U M TO: Mayor and Members of the City Council FROM: Jennifer Walters, City Secretary DATE: January 6, 1989 SUBJECT: Back-up for Agenda Item 15 i Mr. Douglas presented the attached information for back-up materials to his agenda item. In addition, I have attached a previous back-up memo from Harlon Jefferson and a prior letter from Mr. Douglas. I i Je er a ere 2127C/2 I a s~ ql Y Gentlemen The city of Denton should immediately cease to teach defensive driving classes, because it is breaking the law each time it does so, followea A. Neither the Texas constitution, the city charter, nor Texas general laws permit the city to operate an enterprise which is not a utility. S. The city is using a fraudulent telephone listing, which violates both civil and criminal laws. C. The city is involved in a conflict of interest, as discussed below. D. The city is competing with private business, without having obtained from the state a certificate of convenience and utility. 1 E. The city is operating outside of its municipal limits, without having obtained a certificate of convenience and utility. F. The city violates Toyis constitution Art. 8, 13, j forbidding use of public resources for other than normal governmental functions. G. The city violated the same article, when it mingles city revenues with revenues from the teaching enterprise. H. As revenue collected from a water utility may not be transferred to the general fund, this may be true of other activities as wall. 1. Defensive driving is not a commodity and a necessity, and therefore not a utility. J. A city may not operate a school without first establishing a school district with which to do so. K. A city may not operate a school unless it is part of a separate and independent school district. L. A city may not operate a school outside its limits. H. A publicly operated school must be free of charge to the student. N. The Texas constitution, Art. 11, 17, requires that a city ` may not become a subscriber to the capital of any II association, nor in any way loan its credit. ` The city is operating ultra vires, or beyond its authority, in all of these cases,in3-in contradiction with the Texas constitution, state law, and its own charter. ` Greater detail is provided belowl f P ~i 1 ~ F 4 I t Y 2 1. Ultra Vires Neither the city charter of the city of Denton, nor the Texas constitution, nor general state laws allow the city the authority to operate a business, other than a utility. In 1929, the city argued in court that it was entitled by its f charter to enter the ice business. It cited the following$ li The 1911 Denton City Charter and 1919 amendments, especially Article 2, sect. It Article 5, sect. 3, and Article 7, sect. 2,3,5, and T. These articles refer to taxes, the right to issue bonds, and powers of the council and city manager. The court ruled against them, and they appealed on the basis of ice being a utility. The closest such power of the council permitted by the charter, is the establishment of a free public library, and cooperation with associations for that purpose. The city manager is empowered to make financial recommendations t~ the council. 7. Fraud and Unfair Competition The city is engaging in unfair competition, by means of a III! fraudulent telephone listing. This listing, under municipal Court Clerk in the Denton white pages, and next to the sib-listing for Traffic Tickets, provides false and deceptive impressions to the public, includingi a. That defensive driving is a function of the municipal court clerk's office. ' 1 b. That the caller is communicating with the municipal court clerk's office, rather than an answering service in another part of town. c. That the school listed there is the only one. d. That the school listed there is the 'official' or 'approved' one. e. That the City of Denton, or the Municipal Court i Clerks office is in some way in charge of defensive driving classes. 3. Conflict of Interest The city is also engaged in a conflict of Interest. The same entity which writes traffic tickets, also makes money by teaching the classes which result from those tickets. If a person in Denton believes a traffic ticket is unjust, and attempts to go to court, he finds he has been given the same court date and hour as 50-100 other people. After spending about an hour there, he learns that, to go to court, 4 he must come beck another day, j Most just give up and pay the ticket. Many of those who know about this and percieve it as a racket, designed to discourage use of the court, take a defensive driving course instead. Then the city makes money on them in that case as well. The citizen pays the city $10 for permission to take the class, and W for the class, so the city recieves $30 from the a 3 citizen. The citizen may 1e convinced he is innocent, and he may be convinced that defense in court is discouraged, in y order to obtain his money. 1 4. Certificate of Convenience and Necessity it appears the city is violating the law, in having failed to obtain a certificate of convenience and necessity from the state. This is required if the city operates in competition its witbusiness, and if h boundaries e(which itrisedoingeninrDecatur.) side city 5. Precedent A number of years ■;o, in 1979, the city of Denton was sued by an ice compan, Wonwinntheelocity went Into the ice wer court, on the basisuthates The ice company mpany _ public revenues may not be used for such purpoeear that no law or charter authorizes the city to engage in a business of a private character, and to du so is ultra vi_es and illegal. Texas Constitution Art. B, 13, foroids use of public resources for purponea other than normal governmental functions. Various decisions have held various matters to be public or not public purposes. for example, A presidential wheras ytiwas hold not a ck eradication pwasia publicep`cpoeePense of toads, j it to my contention that revenues collected by the city from teaching defensive driving classes become public revenues, and as such, may not be used for the operation of a business. The city also uses classroom space paid for by the taxpayers, a supervisor and a personnel office, supported by the taxpayers. Though they could do bookwork suggesting till exf oy involvement mingling t of p taxpiyars'spart,otho fact repayment of S. Revenue from a Utility As 1 have found a reference stating that revenues collects from s water utility may not be transferr to theugeneraee. fund, it appears that tho same may apply to other -'li Thus, if the city should declare that defensives riving tie; o a utility, they would not be entitled, by + place the revenues into the goneral fund. 6. operation of Utilities permitted in the 1919 ice case, the city won in the appelate coutt, by i stating that, as a commodity and ■ necessity, ice is a utility, and the city is authorized to provide utilities. in the present case, defensive driving classes are not a commodity or a necessity. They do not lend themselves to natural monopoly, nor meat any other test classifying a service as a utility. 7, independent school district required i Article 11, 110, Texas State Constitution, enables a properly chartered city to set up a school district, only after holding an election. A 1905 act requires that such schools be free of charge to the student. ISchool laws of Texas, Art. 7766). A city may not operate a school outside oC its limits. .St.art. 7803, Mcerscheel v. Eagle Lake, Civ. (Vernon :CIv . App. 236 S.W. 1 A i ~ tA ti I t 4 A city may operate a school only if it is a separate and independent school district. (Smyles' Civ.St. 1889, art. 42ia., McCombs 4. Pockport, 14 C.A. 56D, 37 S.W. 988. J A city must first obtain authority before operating a school. (El Paso v. Conklin, 91 T. 539, 44 S.W. 988). 8. Lending of Credit Article 11, 03, Texas State Constitution, forbids a city from becoming "a subscriber to the capital of any private corporation, or association, or...in anywise loan its credit...." The city has subscribe) to the capital of a privat^ association, in this case providing 1001 of the financing necessary to operate the teaching enterprise. Thi city of Denton has lent its crodit by entering into an arrangement with the Texas Safety Association and the National Safety Council, to operate a business in cooperation with them, and to pay to them certain reimbursements. Though the enterprise is currently financially successful, it is possihle and conceivable that the enterprise could lose money. In that case, the city would bear the whole loss, rather than the other associations. To cover such a potential loss would require the use of tax revenues, violating provisions mentioned above, in topics 1 5 and 1 8. This clause of the constitution prohibits local governments from issuing any form of financial assistance to private enterprise, not only to railroads but to all other private agencies. (Const, art. 1 i16r art. 3, 0151, S3r art. 11, Iii, 51 art. 16, 016, 431 U.S. Const. art. It 410). Ues of the city's personnel apparatus, the city's good credit in advertising, keeping a telephone line, and paying an answering service, amount to financially assisting, in kind, the teaching enterprise, and the lending of credit. A city can not obligate tax purchased property lin the present case, a meeting room) to a private charitable organization on a condition of later reimbursement. (Op. Atty. Gen., 1947, No. V-173, regarding a hospital laboratory.) A city may not enter Into a partnership with a private organization. (Lewis Y. Austin, Civ.App., 147 S.W. 2d, 298 regarding purchase of mutual insurances Op.Atty.Cen.., 1939, No. 924, regarding purchasing mutual insurance). Yours truly, E. E. Douglas { ,A ti 1 TEXAJ CRIMINAL LAWS PENAL CODE 62 IC) Ns value of the property Stolen Is teas than $750 and the (c) For purposes of Subsection (bX2) of Ills section, notice shell be de ohdart has been previouety convicted two Of more times of any notice in writing, sent by registered or certified mail with return receipt grade of theft; of requested or by telegram with rapOrt of delivery requested, and ad- (5) a felony of the second degree If: dressed to the eclat al his address Shown On the rental agreement. (A) regardless of the value, the property le: (d) 11 written notice Is Oiv!, In accordance with Subsection (c) of IN A (1) Combustible hydr0vuoon nalut4,l or synthetic natural pas, section, it Is presumed that the notice was received not later than live or crude petroleum oil; or days after It was sent (IQ squliidesigned for use In exploration for or production (e) An offer," under this section is: of natural gas or crude petroleum o!1; or (1) 1 Cuss C misdemeanor if the value of the s' rvlce stolen Is less (lip equipment designed for use In romedlel or diagnostic than $20; opsrallons on gas or crude petroleum oil wells; (2) a Class B misdemeanor it the velum of the service stolen is 120 (B) the value of the property stolen is $20,000 or more; or or more but 1656 than $200: (C) rageldles5 01 the value, the property was unlawfully sp t0) s ClaSSA mudemeanov if the value 01 the service stolen is $200 proprulsd or attempted to be unfawl Aly appropriated by threat to or more but less than 1750; commit a Islony offence against the person Or property of the per, (4) a felony cf the third degree If the valua of the service stolen Is con threatened Of another or to withhold Information about the $750 or more but less than $20,000: I location or purported location of a bomb, poison, or other harmful (5) a felony of the second degree if the value of the service Stolen Is 1 obJect that threatens to harm the person or property of the person 120,000 or more threatened tY another person. Sec. 31 As. Theft of Tiede Secrets. (a) For purposes rl this section: (q An offense described for purposes of punishment by Subsection (t) "AAlels" means any ob)ecl, malarial, device, or 5ubstsnea or (a) otihis wilon is Is shown on the rial of theed tothe neri highd,utegory, cl offense if It any copy therrwf, including a writing, recording, drawing. Sample, lic snee thab specimen, prototype, mooel, photograph, microorganism, blueprint, ` Is shown on the lwa a the (t) the actor was a public aed came Into lima o the actor's t of solu ctal anslodY, d r)~ or map (?7 the property appropriated ced (2) "Copy" means a facsimile, reDliee- photograph, or other poue6slon, or control by virtue of his statue as a public Servant. reproduction of an article or s note, drewlnp, or sketch made of or a" X1.04. Theft of i$wOm (a) A person commits theft of service it, article. with Intent to avoid payment for service that he knows Is provided only from m IM arti anti SenlVnp" means describing, depicting, containing, COn• for C1) enntenti sthuting, reflecting or recording, threat, d false Secures performance of it a sar• v4) "Trade secret" means the whole or any part of any SelentiflC or deception, p M Intentionally vice by having control ovd, lee is token IschnlCal information, design, process, procedure, lotmuu, Or W chic I en Or poalOf NfYloea of another to provemenl that has value and that the owner has taken measures 7 which tilled to them; M vi not his entitled, he Intentionally 10 h or knOwl Anolndiverts the prevent from becoming available to I. rsons other than those 101904 fillers or to his own t wufit of to tee DentdlAnother not en by the owner to have access for limited purposes. (b) A person commits an offense 11, without the owner'aeffective cero 131 Mvingeontroloffr+ondpropertyundd,awrlltsnienlal agree- son(, he knowingly! rnent. M holds the property beyond the expiration of the rental period race Sauer; without the elfoel!ve consent of the Ownd, of the property, thereby (t) makes n ls an article re Drasentlnp Secret. trade +ecr01; or 01 deprlv'r0 the owner of IM property of its u5a In further rentals. (2) tkno (0) makes a trade CoCOlpy s es or transmits a tre a secret. (W For purpoSOS of 1nIS section, Intent toavoldpaymenllS presumed (c) An olfense under this Section Is a felony of the third degree. it See. yt,hd, Presumption for Theft by Check. (a) If the actor obtained (1) the actor Absconded without paying for the service In clr• property or Secured performance of service by Issuing or passing a cumatanaes where payment Is Ordinarily made Immediately upon chock or Similar Sight order for the payment of money, when the bluer r~llsl e-1 1M Service, as in hota:+, restaurants, and comparable did not have sufficient funds in or on deposit with the bank or other eataDllal msnta; Or drawee for the payment in full of the check o' order V t.Oll as all orr,er d (2) the actor filled 10 return the properly held under a rental agree- Checks or orders then outstanding, his inlent to deprive the owner of i ment within 10 days aflar recelving notice demanding return. I I II I I V PENAL CODE 61 PENAL CODE 07 (2) any physical obJsCI Connected with the body. (c) An offense under this section Is a felony of the third degree. (2) it is about to suspend operations or go Into receivership. be0. 1045. Criminal Trespass. (a) A person commits an offense it ho (b) It Is a defense to prosecution under this seetlon that the person enters or remains on property or In a building of another without effec• making the deposit, premium payment, or Investment was adequately Sire owsent and he: Informed of the financial condition of the Institution. (1) had notice that the entry was forbidden; or (c) An offense under this section Is a Class A misdemeanor, (2) recelvsi notice to depart but failed to do so. SUBCHAPTER D. OTHER DECEPTIVE PRACTICES IN For purposes of this esotlon: (1) "entry" means the Intrusion of the entire body; and (2) "notlca" means: Sec. U41. Issuance at Bad Check. (a) A person commits an offense if he Issues or passes a check or similar sight order for the payment of (A) pal or written communication by the owner or someone with money knowing that the issuer does not have sufficient funds In or on lancing Or O toher set for to the owner, deposit with the bank or other drawee for the payment In lull of the lruder4 Of enclosureobviously dealgned to exclude In check or order as well see all other checks or orders outstanding at the Of to or oto contain livestock; Or time of issuance. (C) a $1901 or •ICAS posted on the propertY of at IM entrance to (b) This section does not prevent the prosecution from establishing the building, reasonably likely to come to the attention of Intruders, Indicating that entry Is forbidden, the required knowledge by direct evidence; however, for purposes of (c) An offense under this Section Is a Class a mtsdw*lkw unit" it this Section, the issuer's knowledge of Insufficient funds IS presumed Is committed In a habitation or the adp carries a deadly weapon on or (except In the case of a postdated check or ordeQ If: 1111 about his person during the commission of the offense. In which went 11 (1) he had no account with the bank or other drawee M the time he Is a Class A mlademeanp. Issued the check or order, or (2) paymant was refused by the Dank or other drawee for lack of , CHAPTER 31. THEFT funds or insufficlem funds on presentation within 30days after Issue and the Issuer tatted to pay the holder In lull w Ithln 10 days after See. 11-01. DOM MOM. In this chapter. receiving notice of that refusal. ' (1) "Coercion" means A West. however Communicated: (c) Notice lot purposes of Subsection (b)(2) of this section may be (A) to commit an offense; notice In writing, sent by registered or Con'Pad mall with return recr pt requested or by telegram with report of delivery roqueslod, and address. (B) to Inflict bodily in)ury In IM future M IM person lhrsalanW ad to the issuer at his address shown on: Of another. (1) the check or order; (C) to expose $ person of any offense; , Conor (2) the records of the bank or other or..tee; or (D) to harm the a person to hailed, Contempt, ridicule: (3) the records of the person to whom tie check or order has been (q to harm rm !M credit or buster" repute of any person; or Issued or passed. ~ (F) 10 ISM or withhold sCW so a public servant, p 10 cause a Iss II nodes Is Mean in accordance with Subsection (e) of this section, POW o servant to I$ka or withhold actlon. It Is presumed that the notice was received no later Than five days after I l2► "Detepl on" means 11 was sent. (A) Crsstln9 Of confirming by words Or conduct a false Imprsa (e) A person charged rlin an oflense under this section may male sloe of lawor fact that 1s likely to affect thaludomanl_ol_another In restitution for the bad checks. Restitution shah be made through the the transaction, and that 1 see a not Wl trw; prosecutor's office If collection and processing were Initialed through (9) lalltn9lO~preetafalealmpreesl0nofl$w07 fact lhatlsllksy to alfao or I that oflics.Inother cases restitution may, with theapp(ova)oltheCourt transaction, that the odor In which the offense IS filed, be made through the court, by certified previousty created Of COnflrmed by words or conduct, end that the checks, cashiers checks, or money order only, payable to the person aclor does not now 1134104hts to be true; that received the bad checks. (f;) event' another from ulrin Information Ilketyto•HK1 offense under this section is a Close C misdemeanor, j hle) men n ransed Sec 12 42 Decepllw Businew PredioN. W For purposes of this (D) Selling Of otMrwlea transferring o/ anCUrttbering property section: wwowlh ' without disclosing s lien, security interest, adverse claim, or other i i I a I 1 I ~LL 1 1 TEXAS CRIMINAL LAWS PENAL CODE M (i) "Adulterated" means varying from the standard of compoelllon (3) taking more than the represented Quantity o1 propertyor service orquality prescribed bylaw or sel by established commercial usage. when as a buyer the actor furnishes the weight or measure; (2) "Business" Includes trade and commerce and advertising, sell. (4) ceiling an adulterated or mhlabeled commodity; Inp, and buying service of properly. (S) passing off property w serylge as that of another A- (3) "Commodity" means any langibleor intangible personal proper. (8) representing that a commodity le original or new if ff Is ty deteriorated, offered, rebuilt, recondRbned, reclaimed, used, or (4) "Contest" Includes sweepalsks, puzzle, end game of chance. secondhand; (S) "Deceptive sales contest" means a sales contest: (7) representing thata commodity or service Is of @ particularatyle, (A) that misr4presents the participant's chance of w(nnlnp a grade, or model 11 It Is of another, t prize; (8) advertising property or service with Intent: (B) that fails to dlsclose to participants on a conspicuously (A) not to sell II as advert lead, or displayed permanent poster (11 the contest Is conducted by or (B) not to Guppy reasonably exwleble public demand, unless through a retell outlet) or on each card game piece, entry blank, or the advertising adequately dlscbses a time or quantity limit,, other paraphernalia requlred for participation In the contest (if the (9) representing the price of property or service lalso or In a way contest Is not conducted by or through a relail outlet): lending to mislead, ( (q the geographical ores or number of outlets In which the coo- (1g) making a materially false or misleading statement of fact coo- lest Is to be conducted; Corning the reason for, existence of, or amount W. 9Ar1Ce or prtos (Ice an accurate description of each type of prize; reduction; t (ill) the minimum number and minimum amount of cash prizes; (11) Conducting a deceptive sales Contest; of K and (12) akin a materially false or misteadin~~~~ $~tatem_~ent: IV) the minimum number of er^v ether type of prize; or (A) (n an a e ement of the have orTfpropsrty of aer• (C) that Is manipulated or rlgget hat prizes are given to vies; or predetermined persona or retail astat vents. A sales contest is (8) oth4twiss in connection with the purchase or sale of proWy nol deceptive II the total value of prizes to each retell outlet Is In a or service. uniform ratio to the number of game pieces distributed 10 that (c) An oflense under Subsections (bXl), (bM21, (bX3h (bX4h (YX% and { outlet. (b)(8) of this section Is: (8) Valsbeted" means varying from the Standard of truth or (1) a QLs C misdemeanor If the actor commits an offense with disc"uro In lsbeling prescribed by lawor sel byeslabllshedcommer• crimintl negNaMC and if he has not previousy, been convicted of a cial usage, deceptive business practice; or (7) "Prize" Includes gift, discount, coupon, certificate,gratully, and (2) a Class A misdemeanor If the actor Commits an offense InfM any other thing of value awarded In a sales contest. tionall knowln I reckle el or If Re has boom previously ConvlCI (8) "Sales Contact" means s contest in connection with the sale of of a CUSS B W C mra armeanor under this Section. - a commodity or aervlce by which S person may, as determined by (d) An olfenaeunder Subsections (bX7(,(bM,(b)(%,(bXttn,(b)(11) and dewing, guessing, malching, or chance, receive a prize and which It (b)(12) is a Gass A misdemeanor, not regulated by the rules of a federal regulatory agency. Sae, 32.47. Comrl* lal l". (a) For purposes of this section: (g) "Sell" and "sale" Include offer for sale, advertise for sale, ex posed for sale, keep for the purpose of sale, deliver for or after sate, (1) "Bersefletary" means a person for whom a fiduciary Is acting. (2) "Piduclary" means: solicit and offer to buy, and every dlsposltron for value. (A) an egent or employee; (b) A parepn commils an ollense If In the Course of buolness he Inters. A a trustee, guardian, custodlen, administrator, exaCUtor, coo- Ilonally, knowingly, reckUaay,or wlthcriminal negligence commiUong servalor, recaher, of similar Ilduciary, Y I or more of The W10W1ng deceptive Eustness pncuceSr f (C) a lawyer, physician, accounlmt, appraiser, or altar pro}es. j (1) using, sellMg, M poSSesatng for use or sate a ISIS& weight of ,tonal advlsor, or measum.or any other device for tersely determining or recording any (D) an officer, director, partner, manager, or other participant In quality or quantity: the direction of the affairs of a corporation Of sSSOCI& ton. (2) selling toss then the represented quantity of • property or $or. (b) A person who Is a flduciary commits an offense If, wllhout IN vlcs; consent of his beneficiary, he intentionally or knowingly solicits, so- i I E ~ I I 1 ~~II - - - f l 1 I 1, I conclude that the plaintiff as a privets core- oration, and a tax-payer in the city of Denton, suffering spacial pecuniary damages, as a matter or ltw is authorized to bring and maintain this suit for injunctive relief in the capacity to which it avee. ~ 2, That the levying and collecting of taxes by the mu_S city of Denton, or using other publio funds or revs for the purpose of engag/ an the Ice business, would be in violation of Section S, of Article Vlli,of the Con+ stitution of the state of Texu, which previdse that trrew may be levies and collected by general laws ani for At 3 ~ i plrpoess only, S. The: ::.t defendants as a municipal eerpornti.c. rt unathoritO ty either general laws or the charter o said. city to tr,-tGe in the busineso of nar.ufa:turing or i selling let, ..nt contract made fc^ t:..: ,.rpass would ~ sae ultra vires aa: illegal i. That the business c: manu:t M ring and selling lot is not a public utility, but is a private business to distinguished from a public business. 5, That no debt can be created by a city of the defendants herein acting for the city, without the levy- ing and collecting of a tax surfisient to tale cared inters a! ~ etod Lund thereaa, not to exesed twoAper f I eentoup"4t99 ani for thet reason the pleintilfe arc also f entitled to have this injunction remain to forgee g. That the defendants herein have no authority in law to mortgage the water and light plant of said defendant, city of Denton as a security for the debt pleased by them for the purpose of erecting and AulpinC an let plant, and no Pew- sr in law to use or divert siy :undc cr rsvtrues derived from i ff t 4 h i - 1 LQT DRNTON CODR I toe 1 ees CHARTER l e no lee. LOT. Role of preeelare, aMRles (k) Adapt and modify the building code. (1) Adopt, modify and carry out plans propceed by the The council shall "Mine Its own ruler of proeNurt and planning Commission for the clearance of alum dintricO order of buslnees. Minutes of all mestinge of the conndl shall and rehabilitation of blighted areah and for the re- be taken and preserved as a permanent record open to the planning, Improvement end redevelopment of anY area public for Inspection. or district which may have been destroyed In whole or to part by disaster. See. LK Powers of the eseadl. (m) Resulats, license and fix the charges or fares made by Except as otherwwlss provided by this charter all popere of any person, firm or Corporation owning. operating or the city and the determinstbn of all matters of polky shall controlling any vehicle of any character used for the be vested In the council. Without limitation of the powers carrying of pasaenrera for hire or the transportation granted or delegated to the city by the ComotitutION statutes, of freight for hire on the public streets or alleys of the or this Cherter, the council shall have paper to • city. (a) Appoint and romeve the city scatter. (a) Provide by ordinance for the esercim of the pollee th) Appoint and remove the city attorney and the powers of the city. municipal court judge. (o) Establish and mAl-Italy a frea public library and to co- it) Approve members of aft boards, eOmmltelenl and Com• operate for such purposes with any person, firm, aaso- mlltees serving the city. elation or political subdivision in the manner prescribed (d) Adopt the bedset of the city. by ordinance. (A) Fix the salary of the city manager and, in cooperation (p) Provide by ordinance for the exerelse by thle city or with the city manager, ell other Salaries. any and all powers o' local self-government not made self-enactint by this charter or by statute. Ill te na rihs klnte. esnance of bonds ses*r (q) Inquire Into the eondcet of any office, department or menu of revenue ne or or wsr i menu o (O) Approve plate. agency of the city and make Invntigetions of munlciral (h) Adopt and modify the official map of this city. affairs' (1) Adopt and modify the coning plan which BUY rMtlats (r) Provide for on Independent audit, an. fie the height and number of stories of bulldinp (a) Per'or n the dietricting and redistricting function. and other structures, the site of yards and courts, the (Ord. No, 78-12, Amend. No. e, 4-6.78; Ord. No. 79 P8, density of population and the location and use of bulld• y 2, 12.11.79, ratified 1-19-801 Inge for trade, Industry, business, residents or other purposes. Sea 1.00. Ordlnaneer, (j) P Ide t the soUbIlo kind and designation build. (a) to addition to such aces of the council as are requlrpd by staWtes or by this charter to be by ordinance, every er , structures, or Improvements which may btarected Inge therein, and provide for the condemnation of danger. out or dilapidated buildings qr structures which In. cream the fire hatard and the manner of their removal e !destruction. 6 R» No $Opp Na.So 6.1 S i ti li Arta 111 g 10 uUNtiat4 MIRPORATIONS 1 SUIMI, CISTRICr3-TAXES Art. 11r 11.0 l lowered the left levy Rail from 11 pes 8100 valuation to Soy (lien I Ind, i.',sh eel di,l rich cunlaiuing IerrinRy in Iwo m nhlre noonti4/ Laws, 16th 1xl. Reg.Stsa pp. 49-50). In 1881, 10w00 of aver 200 I 'oily too rrcnv,l and known a1 County line indcpr Idols Jl,lrias, Not plooLliun were pcrmhttd to incorpaue for School purtosca uolY must be al'Pnn•ed by a majority vote ul the iub,,bilamis of upuo a is parable majority vlA4 of the In11abl1anti Provision moo d.. a rriapry iuvulrcd. male for on tWive beford of fivetrtlMea who were to have durpe 'I'ts, ,kct6~u can lips r;l0 by the county judge of of either couuly of uluxJ affairs, but will distwkt/ hat no power of laaalitm (9 in„ hsJ. Phis prupisiucl J Coroccirdrij by the county lick districts t4i 6 poltroon. Ganund't laws of Teas, 10O). Tula was de first Instal,ve whsle toot to all act of the kilirlalure of 1911 (Sth(d Laws of Texas, invrtwratiaa for achud purlwca were allowed of appear kukpenJ• A n. 2761). mdyof incvrporaliats tar municipal purpoafs. 2J I'•I• file krml of an act peswd In 1930• ...uulot ech,ot dia• After ISM cities and towns lnnpid succession toot charleof their 140114 may le: inroryoratcJ into Independent disfliat fur t.l,uul Khoo, If they were irlruporaled for munk11411 purlisto tbcy pile{.«'v Daly. wherever a majority of flow legally qualified prnintty did this wkk'r am provisions of de cumrilulian and this aabliag ode video tngrlh::r wilh a "juri!y of tips tru.leee rrtidmg of 1876 whist, permitted suck action alter a uwj,sfilY vote. Gther• h, .still roummo di,trkls petition the county bard of Irustves Its a false they assumed coxi by ineciWatiol themselves for ull,+,l"Ct"• lr,ol.11.01:Ibcln (SChnoliiwsof Tales,AIL 27421(1)), pwpusea only, punwnl Is the all of 1881. Qdy the slued Jis•49~- 1 3) An act pissed in 1905 set forth that any lily or will might trkts incorporated and aipsrsted in connCaiun with alunhipld in- I aap,ire Ibe exclusive control of public free sch(uk willli,l it, limits. cm,vxati,t,l had flux parr to tax. They pew in strength and far It tl;+ly+l 11,31 any oily or lawn which lad tbtrrtolure lend, r the .Irk uriw.et,l in eRestiveeu the independent disfrk1s Inconsti altJ tot of 11,11401 IS, 11175, or any suhsequeul law, asdulual coulrol of lbc sclux+l ini stilly and the other rural areas, whirl Amideted public fro u),uuls within fit limits, and had cuminuel Ile exrrciw uthkr file a„amlunity systems of eduralion which were to be the the samr Will that time, or any city or lawn which might dlen„fler pnvllrwo of the preaenl-0ay conn,on districts. These dlstrkis Jrlerminc to do 1o 'y a majority cute of the 1)[clk,ly ncp+hvfa, woe wncr a revere handicap aims IN Will Contribution b public might have exduc:vt contra of the public free sh,ros u'irhin its schools had not yet 1,4•orte sipoikaN, limits (School Laws c Texas, Art 2768). In 19M be kliafature pravlded Thal, with certaim exceptions, dux e) Stall Inlnher approach to the problem Of treatinf iadfl-Mitnl nanalcmenl of schools ahoukf be removed Imes dux hands of city school districts must be menliwa IF, 19.11 the Stale Ifuard of mos. its and boards of asicrttpsm and vested in in elective bird of Education was empowered to credit Independent Ji.,lr6le at ally 7 Iruaea who would have Compiels eonlrol of the schools. 11 file elecluagnary invlltnlion, eider stuteowned or private (School Laws practice at doximte of de Faso/eof this law was toappoint tru,ues, of Texas. Art. 26561, and in 1935 amnMr law sulhorireol siubilar they might violinist to do lo, but in election on the glaNion could be dotrl ts wl Iuilila, Irx,rvati„oa 7 (>•'Irool Laws of T40at, Art, held if 25$i of the voters so pcliti,4ed (13meral Laws, 26th Ix`, 2751b). Thee districts m.ly share in the dale per capita sptortiun. Irt C.1., is. IS 21). In fumble ahuptification of tle orlaniraliun moor They are lotenvol by aboard of Three trusters apisuinnd and tr'atmIsl of inkipsnhall Jislrktt• IM Iowa of the Irgig ire by Ibe Melt suferintendull of ,location. its t,cale lnkikmknt Jiflrkil by Special law was taken away by a mnlituioi anlauhrpsnl (Art. 7, 1 J) which was Adopled In 192G Cwr ■etenaer Sane the mkydhel of Ih lanendl,enl, Is has been possible lobring tWrlr„41,1 steal dl,trkts la Ilk, aN Joliette, we Yemon's Aneprst aft. ,tat d h,Jcitwk lei Is Ihe.l hharkis into eaillence by bean action oily, in une at uxe. f, of 111i: (nll-,will ways: Maur of Daf ..e stolidity dity a..nam li lar fit, I., It puq eel of huw4ew.ul anlrau 1 o 1) Ily rime of as ad of 1027, a tam utxwl school district of 700 nNw l wane a fit, I., 1 T 111. [ems w oolth, ...Inv a I hurl It l Tn T Its; P.", v cvvsve or uuat inllabilauls may be Imrorporned for free scoot puq.,.e. T abru.le. 1 . ul, only. it nwy nut Includr within its boundaries any town or viil.,gr t. ,.e,x.,a.,1 ,hdM dittoes, NO spent at ra..r u, ten se it w. ilwor „naieJ for munki al toes, but which list tai assumed the 41,11-C ,eel 1-166 Wl.l.•we vast en4rn, I I this Is,:L„ eu,h•1, Leldenea rat 1414 a,r eni top Ie,a 1 wlaa,. u,A In elnlanl of flip tnlblic sbwdr within its limiu. If the approval of a sear nnpr.,.4 ,t nos oft ec h ,4a a 1eenol 4.04,401 Islet] koo,h u° sna dinlw l,.,,r n, d.a ilv ,.f rise v,ders ltbbtaired.IWhttanlt may be nltde, and the Ile rl.l ulWn r..nl~,ln~ ~ow,w of 11. h.U. ne h i.1 1 0.11, Its 1,4 tli,. .npwn, M 11 1 , I I r r"I ti Y I I Art. 11, 1 10 muN1CUPAL 00610"TtONe aCHUUI. u1bTo:tcra-iAxLK di 111 f 10 J .1110 Nn I,.k114 W I,aY/a aldgt Tan" M big ,rd WIN W 0"Yalad •wl'uwl•.H uw.4.p rf Wl,'Y Lm1,4WNA blYlrkl, IW Ito . W. !N, 1W d W. I W N aWW b baAfA Y1M1\r owl VIa.MIAd YI:NW 11 W "ill u'llluy f.w enn x q•.I 4ur4wlr. 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M Ira 141Wa W 1W Wylrluirl w\wN v AJ.aIJ.J l.a Ill INN w.IW., AIY w I+oa \ w,rnn 01►.lal W1aM4 TW M aNA 1 R owl cook, A. f1elrNa IAY• .l Noy J.+a YWA IA hvw {IIWW, a, .ul to ph"N' N a111J1• u 1 4wara Wuy ~~'i N.rAAr 001/ hV YW MY YaA1AM MdIN 1"0,1 CIaL 11'dl 111 dog. 1tJLuw1 W \ Nnrlll ul NlAll IM1.I.W1 MlW ,4A1 Nvr M.a La vL 11. { 1, uN rr WIYy it 01.01 WsNN 1 W NYM I W M+. all. IW Ira TINY W AYNJ U lrY Wilda of kM M "a Nl V Na u1•x+ w„Ww.d III wl. ail Wn, . Van W kill WNW 41wa""L UaaY Vod✓ ON sail" paragavagoo ay I*d WN 1.011• lull rNWrulrlJ 0, lw .u.lJ4raa1 law. \WLdIAla WI M IYroNal. ,arlr W lu l•.Ya4 YI1Y11 NN Iw 11. Will. r. t'Lf 11, v1. uId 'ANY a V I111J, Iwo and AVI Vahr.wll, I ~ M aoa"NYN Y7 W U My Y IW yYUf Ill . all T. 11, 1 1 W. In. l eIll W, "Pry, I. YIYY Yf ILa vain. Opglla Yal Kfed awl,% Logo "Wal T.rw'a 111 M.IWI~ CIr.aMV. NI 1 W. Ail Y. a, YhIJ AWrki . Wd to" arr Y hYrd\r• AI / Aral SO Y. ant "No. WW , a►T ,A►W I".4- aarlrw Clr 11 logo, " NW. !n• M,, WaN11.l4.MI r.4wA JI+I1 A. ,.bun YM1n•WO Ir IM, Ybal, Tobago. u W ..Oil. WmN W T A1'N lha aINOpW M MY 0.10"1 "A a dla• rN1ny ❑wl In.YrY.M1IYJ WING W1J law.. Ny llr IwL ail ualJmd Iwa {I 1 W bM w a4 IT "646 14 lrk4 14"0 id W pw sob lam IW it, \ dual wNl 11111 Yulr•l AN, M walk wllbw% , origrowita, WIJ w 14-6 IIth Y {IN AN" N ..I' mu, dNNY L+N N 711\ 14. MYYA1aM W AL "*am I w WNIMYr l ga b. • orNUn W I0laapill"I lelwl fgr~kkwkil all w at IV Yu Prr No INH.,.r W. . 1117 . Ill ~r+n Y VNIZINWIll, kw.a a MNV1lkoMa al ItlN1, am INIIAO 11 NIWI1h • a /War dAllkwa No Mw. lo Y. W city W 46, a I , 1'11 04 ha' pYr. Y W NL . 1dpoo, +nl WY W u. !.r Kh aNWau r11.11.ad." M Ill ca" AA AI\ IN a If, F R, al11M u" t~ T a IN. MW N W Mx1Ma T. fWN01, I31 uNYn bnuwJ L!.uwMIN I1N 041.1 N N .rNraa a• 444AY.wLW kill L Ybpo larp T . dog. 140 .--4 1u.uJ IWI Y.N A111 hlf W.. fog (31,04 INnIK, < 441uJ441 .nl,1u L,wYu 1M durMV , lip l. 111 0111q laaIarrMb awIN a A 1. 0. Tww'o "a hr M. " I,aa ra kabay 01..1..4 " 1 IrM1la A1 WaVrlldawl rWd ♦11r w a..,. 6--Y 6. all.. " R Q Al. M. , Y l wog. la Y uw l.w ulrJ r.4, YIwYJIa of all a'", so ""ill 0W. I F111pd lllrlllulMI<1r4A1 r. CAN W ►Y.L. oll Kh.al WIIIMI Cary a.Aviwd"A' I sA aid oa wdkana InAraa W VIA. MYyL It M. 11 •W, Ill weal orhaw JNln.l, LYII,/ will uu4 TIN N kb Ywww wbor" Y W boil hYld W paraW.WWaI Y W WuNI awrYnlAJ1 W1J WJuYaadu.l VL,r IAd/1alY Y YII"M.N 11,1► aMI Y wa Ir vm"o 1►1N "w W alt 1, I a y 41s+ r I.IN uaL W N.nd 111 uq Wtf dLtrMl n YIN1.aa frwu b, IYV11..16M11 W No arI04N w %6#WA-Y aLWW Y"y11L or"" Ill I ua* plat Nan dl'l►Wllal al.• N I,.xu IW IW pµYWl a1 It, NLU. .1114 Khw bArnlY. L'IN YryI.N1J u thap,► a" aa014,wp f fe" M W Val W Y k,+gwllld WII N Wu .111 . I.'A'- H.Y Wa ll U- MIA M I"y Yd Illarandael KA.J Juu At by anu4bnd nANN.. m of oY 6mm Id, IM. APL 1, 0,6000 Irf1N No ap,l"yINl YrrMOIL Iowa Il,,,l ki a, aIwl" W M W. lough hall, Jlr a.haY1 4."-, Aid, YI II.IrJ IN 1a, 1. rug Alu Yl &A W0 arlherll/ 1. Kha" 11"rLa A., uunVl Irw,1 Ira lam S t MIWd N LM wY u11d11L ~ N\ Y .,Haul II., ""I. CIIY W 4J P,la W. lulbna MAN k. 4 lot h W ,I,. ,1rYrarid W of , Ul a W. .pl aid. QIAl1alY 6M. IN W a L Ay. W. pII. I MI W hY/4 1,45 Clr, tlwII INI, Al T, NY. 11 ILw. pig, N r vkr N NNrt.. Lr1 u, YI IU AnV, VI IJ.r.r, u•. Jra IM M~1 yoga ,dk,,ruprn, a W MF1 d W, ,la VwWy dark 1. {I L L w am G. {I a il dawll dai awM MkW W J IY/aNWMrI T6. Y.I W M+11:4 74 14.1. k,AW''uJ IM I.adl.lYl Yr'\ IYIIO M IW laalNYad I adwW Yalt CRY /,IYIY.W WWAN 4I.q Al ,1.11 114.1. W Zhu I.A. rA, 'Y.rwi.r'a eldd A. 46111 rl,.em lr 1wa+Wr1. law me \WIIAYYYIY of U A~• till 1W of wil dMlla. IWrr4 bM, L.u M..,Ir . wIr.L111 W1wA /Nlrlal Ill q'.brl Ill uI4 w,J. mow', xune46 J Ill le 11" NoI.W W NpUW @Naal4 dog W WW 1iliveld.al 01 of V., weal 4. a,`1' Y lYl 1., 14. kll' 1.1 W M, Y.". 411YINod lu YIII... 1YI I.Yi11i1 A'Al 1..1 ,h. 1-.4 MW.HIIwJ MW r,4d 0~100 f1ala CwN L11, AN. RI ..W. IN nlu,A, 414,1"A1 144l1 N .4 YhUIW4 MM Nr.1•el Wl grill 1. 10.11,0JU NululiJa W dNl".U d old M awd oky to a►1. be" ad ddaalkr W 'up of IaM+A YY1411 Ju41 4m Nww IYY IlueN W 1114 Nall YIaa1M1 r. I'J4 Ivdvd YrW Ar WNI Y the ►rYIW W M Cw kdL VII w lir 1. L.a dialog, I.4 I1 .1. 4IOJ 1uN lln Mw, C1V at hug W YHrN..la , 4. %,V. Ja LW VIA Oil YIWa1 dlNrNwr wo"Wao"ld 14k a.d• Ilan Y 00"100 Yf IrrY M1N111W N IWI al 4'..v Y 1111•bIW M, 11 Y. 11, 14 a IV, M, 1',4111 YIMwd In n bn4u f.1 IrY 1L11 I, lilt. wall ails, lllr Iowa INI 1own .4 Ia 1MY1• ft a Y■"a W "di4i Y, loop, 11LA1 ran Ill wllWnlu 4.I N . LIe LnNI IrL erNdrY 1111. 11 . F'Iw.11 JwJ II. l 4 , 11,1 IvW r. WU. lei r. !L M arrWW will MlaLll•ar l kit Yr all r,l I, j I-A all } I a, AII. Iu14 I,rr. IXI+IId eILuJ YwwF• WIJ "a"I..". t. I, I 1 II I W, 174 ft~W all .l 1" W. kill 4,f a W WNY 0 loa, Y. Y 1Y, "NN.'a rift 11,4E w. 1, AN 1, 1, A$ IIII W Nl1'. .pn, our V41W Ira U.N. MYwIL CIIAYr. hog. , 111-1-J J4eul 1•I 1YrtWYI u4Jnn u4y a W+.L If Al ►NuJ.W orLw1 N11.11" 111WYN4 TW moral YHA. Awl 1, 1111. u4y .111 r",I lull Iawemf it-. wul uuWY A A. In41u .nand YL4.,J dl Ilyl Leo UI. I aWJ fw 14+1 YWy.4a INWIN lad 1.11• 1144 Iw.llwd WJ.NYda.1 •14,1 JN1141• uu11,Algal I.rllr.l1al, lid w A, NO 11 ON. fight Ir Nall"I J, Imq,nnl 411 r a M Yul ....1 burl 711 an w'Y.a l WINaVMWA ,4IH . IJllr/ rural W Will M if WVrlb awl.I IL,WIIY a. 61„1.11 A. ...ar4r IL. W, will W A." A Ad A. 16,01 our W., Y1 p 1+u 1.u lu IIw .11 III .Illy Y . 111 "-'A" Ir4wq .,Lb rw 14+ Ifry YM1Yr W Uw IILW I6. .try rL4..N a•1Y IJr M' HIL•Y IW II1,I"XYIMI JN441Y r. IYVy.aNr, pr Ay,,, YN 1 W OIL Irk W. 1'u .log, 4110 W, 111. 4dla.lila a,.0 nyNJnl, FAIaii IN. L,.1 .e II,Y-,Ib ,.11-1.1.41 1uo ul. 11 N wino urW Le1u 14,we•Inal rwmW Uy II is N 100a", YIr MINludnq low 1..11iA 1-4 r.u A'a .Y4 L4.d AII, 0,ko. bll, .loll 114. T.111rM~ 1 A.. -1, N. An !W rat Pat. IV. tl f ill" MIa1d W AIa•I11w :1 , ~ I+a1M1if ba W Y0y Mika fail KMW Mgr CruWr r I"Nar 00IIII n alkali IYYUI.I. ~11 if Yw , Yr 11 \Nk loop, M1l1Ya Coe Apo. WILL AN W . IN la l Md.r all 1 Wll•Nlvn .rug .ool W+ AN JIa or I.A1 • ,Nall, W T4N Nrl 1 W WWl the wrW W 4 .1%. 141 ld rWIJ 111 CMI W yM IN NdN41. n to U ill" IYY. dY.Ynl / ll~ai LJ+Nb IWJ W1LW L'o, CIO. arnyarrN b a Lt W I .aYI I AI I E AI' . 1a, l W. iM. III w. " lo l UNI What P. W, CIO lNAI ,1 III It 4 W. YnAI 4,11 FLAN Iowa Ir,bh11.M1 av lkw. P. IM1. IN, CIO Ai" INr, 1}. W. .ynen lu A I. Wow all 14. MIA A.L.Is N1Ja• IJ awl 1 1 u l,.1 0..I'NI AaW N1► nnfrnH 1 tA S l • I HAUD FRAUD) - Iva "ithoul er's inrcnl that the rerrescnl;rtion t %%kh % "ith causesnj %arrant., tit ith w ,rite of be retard on h) the Permits :Ind in ;1 k*11tcl l 'Allen it and designed h+ safe- nulnll" rras„nat•l) ct+nknq,falt,tl, lot antilhrr, !I is 41%ed in ro+ndasl Puhlic•slegitimatetoo rca• thePq•+i}n„riimc„C111014111 INSrkl it rnl rNU I►rahinei archaitinJ ntifrrisae►.1'''' righll of I catch fill~tl~~rscutatir++t; the t'elan'+ intcnll• tiro tllnot 2dR110. -Csil Sriiurr, b I. IIsI hlstNird I lad A. t i lrh a\rcclalions of Pris;r piI) rti\ !inl'leilglll! rliarlcr: I1) the prnon. tier I is \1 It IN I n" fraud 111,11 is J lu a rowel's home (in 3 ..d .n., M7, IC- S as use of conllaec ll usu;sll sllnlt'd frills' circumstances, ) "insists n;urri;Ils i,ina in , I scnlmitnl ate'ra h111 e of r11 a 1srrptc~ "here the tine "h,I ranlnlilc it residcnr.rl tit . and llot tti I ill Ivssrr t illt rinndls• nerd ntiI hat a ill)) et it intent Ill clusulr of m,,rov i:d Iar I tit :d h ;Isl eNlllf1111 a 1'laud: it is a I IINs I sit-4 it ;l pet still rl.tee 4,t lsllsi• ritallg l-ijj I:~7, de+iees• tie 11\1 Ik\t'll . nn"+hilc• or cscn bud), It c:,nrr. 23) , ti"f+p. 2111. 21)0, N,ii, 2tl 911 Ialti+srl. Six 220 Ise upheld insasions of it It mhr:ICCs 'ill Ihr mullifirlous 1`111 rtJnl~~lr,fit hold) in The arcas of ctim• means "hich h1111an ingclsnil) can urfs fransrcr ill assel+ inlPails the a ccillalions. blood lestc, devise It, gel an :Idranl:rgc o\cr Iighls ill his , anolher, 11 d sagina) sc:urhes. and 1 .cunnininrludrs II rreditun fick "11PO c, Il;ulsfer might Ix' liaud in 1:hN cmu\al of a bullet Scc I fair "a1s hi dhichhl Ontoiher is 19an On a d hhhun+t►ance could he std It ons6t search NaulitinalrranLal. zo 413.9 " cheated. At 191 111. the dchlor had no fraud pe must be. inlcnlion of prejudicinp the credi• 4I11FS %ce unillc+. ragsedanfequill it "I'Mce+ Its sho++~ 1+'rs' rights. cirrum.(:Fnrr% r which it na\ K. f+ from IN,\t'u IN I'll'. IA('IV~I 'ConCricd l rrmilcCe . 2d 974, Vitt. S etenc%urm•Iii) cd. Iild:Sdeceit1 :lriscs rrorlt a lack tit identit)ilo r codi%i dualh\s aIhrnd pm con. Penal Cock 42 4. Sgcc also oofrl exec il)' hehtccn the Inslrumenf on in\id. teeatcd and the one intended to i r) ~Crwf tit IN llhh of lcommon i i1S r)r r R~rl) sec badges he C\ecuted. or front cirrum• fraud, slancev u hich go to the yrrestion I'. .dtt7:, R• I'ar cram- $ to a helher the in slruntent r\rr uni of loca way g''anl i CONSI kt'1 11%1 11 1 t; If I N tl'r1 had ;III). I - I I C\i~ft'lI a c fair e" a' u local bus Co+mpand I comprises ;dl aeh. unlissiulls, e\;tnlple. s\ hen blind or ids Ai i%c Ihem the .life atNorr• and ConcealtnenIs inra!\ing ate person let t a cs ;1 deed when role buses in The munici breach of eyuhahle or legal dulr+ it has been read falsely 10 him a certain number of trust or confidence and resuhinF arier he asked to in damage to another, 3H S•I:..d (lit have H read. S Rplr• 14X. 157:1.c.. Cal. 111. I"ralld in the 1 k \NI u1S1 htinlclimcs eta : 'tenter is fish+m l+ruviolC.t a nlply "the tlanchise'.) ` required. •1'hus. Ihr p;ul) "his rot stq'n srtring ;'side ;1n' infer K.1 ima The nl the right of Cilitcns 10 j d nlisrepri. nlatiun (hallI N.\u1) rN I Ilk INU(q'F.ill N r 'uhlic elections. fl need nut knu" Ih:d it is false. See Il+Cfu" 1. schist" also refers to the X37 S, W, 2d m 27, rRAtif)!N tll!' INf)U('h:ItI1Nl fraud thi I lit Is rris;lte person 's txrlNSrr 11 R 4I I I R \t+I) "b" is inlcnded It, and " Lion to market :Intithcr fraud that rrcvrllts hie;h "ithin a Certain area. kno"in M Part ' front t1t,rs caustr one lu MAlle ar l as stations Thal sell brand- tenses g it out his cI rights ar de• Instrument, or make in aprcc• a,utinc often o rate the o or rronr h;lvrng ;1 fair mend, or render a Judgment, The PPonuniry of rrc.cnting them at MISUPrescnlaNon invot\cd does through ;'franc Ise ratio. p i trial, or from fully 1lUKalhtg at not nlislr,Id tine as it, the, l tic oil cumran)' the trial nIl the rights or defence-. he signs 010 that he w; 11W llle mu IS entiNrd h+asecrl, 1fiN role itraels If a 1.% P10 murder of one's S.W. 2d im, 161 the raise impression it causes:in for equilable reNc,rlrrom n Judi basis or;, decision to si n or eels- ntc li y I deceppti. on Etc. Inenf, 5ct 211 P. 2d 8Q1, 80.1. Jd ~'udltnrcnl, Ste " N,Y,S, Injury lu another' Ili 610. 11 renders an a c• fraud arc: a false and 11AUI) IN FAC1 mil\'r IRAUDI ment suldable. Sec 171 H,?re, c. misrepresCnlation made actual fraud. r)Ceeil• Concealinp 3141 ,10S. it ritherkno"sit is falsity something or making a false refs- 1414145'(' t R,\ut> fraudulen! rcp- 'ant of its truth: the mak• reseniarion with an evil intent res "lid' I that is presented and I i i S IW Ik►l'It I Fill 11011, tr'a i . of oil but equal tinder canJuctcd witlwtn warranh. wi r I will 'I) Will IA.rf IN C Icpnc41nCdhan m tf scglcgaN,n of gene rill wananls, air wuA wriN r( he Wow ago, lit he hr nn auJ in ,1 1wiv igivil wl~ln i c'nr,f+ in7ult Ihiles :any. I11 the gar J,lam'e nnJ Je,igneJ la side. m:mnca Ic,nllnahle ttY11vnlpl.1144t', fill rl%% se INI.f In tiglfla 1 ,dlfrunnr.ff.YNA,If gu.udthcpuMK•'.ic►lnnt.llcl,lre.s. thrry•I,an,lpnnl,lntcl,lllh}Girl; which 1Lot'% 11144 1141pncNelll '11S.1Mir19141ho.- sunahle rspe el11ian of rlnusv I,& Id OW Itri,411LIrNIn' Ihi in+k,lrl, see 171 ,1, ;J MIa. to did Supreme Ck4m de• l ave. I Search anJ Semite i I two nghllul air ju,nficd I'll .lncc: 'Ind a iubbull tuan,niiiii- lcc ilyl Sno.h Its e a pee,nsanre l tln 11t)\InIr ih+nl+ IA%fhe'ptnatn. sa-V IM\rn IN 1 vw frahd ih,ol 1, fee. g ) a\ rwlam % h It u+u.dl aimed lagoon tircunnlanee,. tiUn:Inll that lnwpla- ,itch lre',i%U, rase oflunrj.%crl,ee,, temJr'I+II Alt h,l,l, oit ll mlNepre'•~ where the oink, whit egonlnllt, it ainw,l %1,h'no% is uh,ee'nc malcriak IN tit grow na in I taace111nerlt III nvnJ1, need Ilgot ha4' ant call inl"'I Ia hill 'he f,titaiwiftg a powile• tolllch,td.•110 h, owlet Ckl%ennlnl'' male, lalla, f, 1,4 ;it Ie,1,1 \ Illation ah•uad, it h•I nN, I Not ,clue t'lm?a: &-inJ- k,\IeI1H. 1,11 Iwo mil rLi,e at lm,i- g l,N11}Ilel. t}c, x1',, III to%$ INt1 It la}Yitp1 Soy, \,f s ail k,yu.d plarcONlt firs,, :nalunNlhde. ill elen h,+da tmm~t.mce. _14 I' Now `oil. ?got N I'. `d MI t, M14 "Vil 111'1 N N Igo an) ,IK1et11 l'goulls h,i%v uphdil Ina.l.ian, WA II enthl,recs 'dl the mullifarillua n 11N, I tx I III caamrlc. if a Qe•hl• .mp elate a\twn in N,rsun's 1Y+JI in Ihe :u:a, of cum- i 1i which human ortu,nuirt ern Nr'% hamlet oil aw•Is iIn air, lax' •ent Ji,crimin.nilln puhuly v:ICCinnhan,, hfo%-J teas, dense lit per an :nlulnr•µe 11%,1 a wu "N'" ail hl, rntlidrs, then the 11111. ion the }raunJs reel.) and %.1t:0.11 seal,hc,, and Aer. 11 in,ludes Mdl ,ulprl,c, narlJer rtalglal be a baud in law bgiun, air ape In the %in 4.teal removal of a Fullel See , IrKk, running. Jn„cul+ng and un utd the tomrl ancr :1 of IYR•l, Cungre%% Tribe. Con,liluYiunal I.tst1 i11.9 fair wit\, h, which ,nl1lhrr i,~:1sIJc;J1lxtugli IA dcMar J mil aflirmaticel) prulccl IIV7M1. See search wNrrant. clxaled 1t lew, frauJ nn1,1 be inlcntiontaprejuJienj thecredi. 1.J right, I a iiem proleJ. in ryvlh it suftlce%14, how fall, right., p % cc v uNLv411-II anJel,N Ill YI)1'N IINI l IF lee unitl~fl1 k abhketaA it a rno d \ eprte NJ , f1 npitl M tl a IN till I at I l,%l Fc•ncratk 1k.1V1'lllNh: sseciut gar ar 24 471. v4M. See e1claUt hhNfcf Itont a it Ii idk,nhtt air lateral apptNhlnilics' Mhith is "cunfcneJ h} the fit crn' Penal CoJ< 1::1. are al+tl di,parig hlMl'e'n the in,lrumeal klclwal.secrafih Will up,In du,ll..Inhich I deceit earcuteJandthe line intended Ill doles) nail he fasng III the tltven, d ! 64txa.t 111 r I tl b yc hadpitn he c\eeu'e'd, fir from 01,11m- x•csa a my of the Ihe rtnlnlr) te,ner ally. all common I of fraud. eA 1 IrWVS w Iendmenl has h'elt right. hl is to Ihe' ne.liun " Y1I1. .J x7_.. 09 I Ito caam• to vv las•11x1 the in,bunKln eler Ippltinplocal It A114 le. a nnlnicip'd11t nr,ly gr Inl a COM1ItsY 1111 11 r had .tot Ielal e\i,tcrxe: a, fw 11:u11ecs its tlle' host ' u\II IaHn ht illa a has;) hu,callj,.roy l and pri.a•, ;dl aeh, t,mis,iult,, all:r FKn a blind air colter. la slalr allwln by ode, wl Iha will pits tlKm Ihe,111e awllori• 1 cume,allnenls cite rwln a,tMwaling these Iy Ill opcralc buses in the munki• &"sell Id eyuilahk air kgam"hire it his been read e' eJ m amt:ndmenl. 11 IN. cilia fex o ecrla:n number d l dull, ft hu him i11•: lIV1M1. p bust car ConllJcrxC ;Ind rewhia*8 after he Ailed Its have it read. } years. 1 in damn a k+ ;mother. 39 Cal, s I: :d lip, t11. rra1ld in the Y.\'I)4!I'.V f egon,ti- I { I1 I M I 1 a \NI II I,I ssanlk,timea Rp1r, U . 117: 1 e , rill trirarrr is fae'lun+ ~reuJ\a x stn+nIIx'r ha,ia Worth guaramecialp caned silnrly "'tic Il,nkliki I wulirleJ. 'Thus. siK pant MIN, Ill snhui asA ; in,lrnnx'nl %sil%lot he ,e\ul e' in rtler% IN ill,: light oil' ciiidcns to 41 e list' nqiepl e,chl: ,MIN Iharl l a 11'nAN INI I Mn{'{ I till NI eccJ ntr k,%'% Ih:lt r1 is fafy. Sty Ihel,w i. nit pfope'tlt lrom foie in puh'ic elecla ms I 137 S.W, :J rarchm and 40wrra "I ranch c" a,o Iefers to the I "A"' IN 'ill tNllt'(1 MINI frmid it theliJlaMlnpek fiplllgl\tnllpapri\,11eperwMtOf gtalNlJf IrUII\tlGall IaU'11 hasKAeilfselerstulgo LI-Ind has h VqV suarKeola warranl eltrplralkln lot nt.uket an,ulxr'I fraud All plcvelns a part) hum tf11111,11N,n:I:I Ilptln rhUtKla; LUie,n,lh:drtcin area. kinp a Nrl his riVhla tr ill. IrlNfuhrhl. tv make an agree. is Jelclmined hl a g' or frunl beau mg a fair Moll. tar tclhlcr a Judgment. The •I•xhed magWralet n.anx Sasohec often upt'ralc the opportunif~ 44rife,e•ntinp IM'm al Mahrelart'W"lalion imufvcJ thles flog tkscrlhtng d1c sl:na.n lhrtvigh a francium paal• a Trio. tor rtNn full\ hllNallnt ail nt'1 miskad line as it, Ihe r per licit and Ihe 11en1s Cal by the ml campun>. the Iriad aIt Ow right: at Jcrcn,t•v he sKn' but rather misleads a, hl ,cited. 1 N,1 fkll'il)!: Ihe nnlrJcr if 0a1t'1 IlW he Y'at entitled Igo asst'rt IrM the 1) Its' r:K'1s If a skit lri,ln. ;Ind wivili crat is NNl,l hnNhe•f. S w•~d lkt. W. If is a Irtiond hON' 111%v {vitlnl,f l~~`akYl h cauys 1%a 1lcrrd in casa's no. ( fore lahle rdirf from a it )ja ' iJ MtA, h hk Ir 2S.t N door n. ,f rlkg,Jtt ,c'ue'd IN ,%I'D intentitrull decrlfN'~ioa rt. MN. Set 217 P. 2J MI, poi. C e tar the pk,tlrwlw whiny in injury la aM,Incr. Eke I If rerek's on N.V. are. ,IicJ Ihrtwagh the mcnl, „f fraedd arc: a fahe 11111 111601110 IN FAet llmtII%I I a11:nJ mein tai able. Set 171 E2d If, It was imti.Jlt makli+J misrefre,tnlulk,n made lilwl fraw fkceif, Corttc,drng . Ihe• hit of Night% la by line va 1%161UKr lrxnill it fafuf f )otnelhily Uf Making a I;d,e• rep. tN lalNttr luduknl rt ASCII Own SCarchcs ttr is igntranl tIf its truth; the nuke aeentnion with an evil inlenl ! Rsut> ; . restnfation A lhjt W ! fasaudul ell and { I Ii i 1 I I UNDUE M UN/AIR ULTRA Or UNCCNSTITVT104AL And, v,deJ one g= Arprer w Iona! PNAiAR! Ind M." Womm M CMNYn In. Itl .___,pll'LAIAMII wh4h Cale III bolder rl enbllpd la It .10 at"" [KBI ehaulJ be wIAJ hot urwl L+AJ,ty I' Mil eommc¢'ul kacYlrouM one lower of all pruAM and We produced in Ippendlt, Idn6 or any nN7+llnn .,t tine it to pnnxy an read mterem t M Ihn cenm,e mcon. the then and the ,ammrruA Agog, d be Pool but I.s t vii to pofxr ppaay rc tunpp-nwlr aNwVl See rra,nnuhte still would my s owed canna by d, kv nvd. a OF , An panicutar )rug,' w c4a, me 0 1" aen or F. shale IJNERECMD 115E f" r two- MAlrvpkt.hMdeM bond lau4pi Al the liltm rl ane, ne p+ACr al p...Now who ii an nrul,rd Art: "u gng Id:J+, I. ht yeal[utlD Ufll, rnJcpenJ[nl ooi ter to p[Aorm un[ar[wn+ble anger the Cmcum- Wr'.E I%FLUFNCE inAAeqnca or to oratl. ,g Innlnp drM: Leal n hI M write Fun he I r M plr,linG UANN rAC r, hr t¢apv ha- [lane[I Inllrnp al IAC Irmo of Ihr sin her dOlro YlnG I:.t 1! mwr Indio, 1, Set Jm "l .1glIAe dr,lu,ml mull he unnull.h / UNFAIR a0[anJ~il Inh~l dome s dote. the Iime,l nr.d And mull h+. kp a bill" for Jam+te rewll.,q rmm the teal mt or the n,intl " UCC. lrtr west of a 1n1at" a goo". Ihr uk be logo be Fenn rdrl the MR7 CADli ll. er snurily weal In„wkllte Pecawe ofn 613)11114 all See 1111 131x: Ol he wl Cumming whisk ill a Ground for null,ry- D 1 MINI calla ,rru+l Irt1.Iw.lllwil A d ,I `Ynrm'J. Tun" 114:1 4:1. The Inn resin to a II to 110 5 *111 VD,n r,d V'Idu, CL 374 It if boons„ n[mr, rrput alwn. or no Ion gol Algg4gr w~ one ulW a[ to All w an aD ) n in pl one prison a that of amthe r. ppun 'LIRA vtRLS (e' rN ri ri:)-- e. +hL.hN bl uoMire imprnu, 116 N E 7a6, unrarr, Netmt. or DEITIYR not wArl M" the l:F1, I. to the Mn,n Vote n Fe an d fR E, since a meArt, l h uc e on the mirttadm adrrnum thFe in lilt), 1,11. 19 p.,mp A d,Al, linewhu,,ol ROhbrb+/ALR led I I e f Lar. b~YanJ. I-h,IA( redo l pan or one al the panes toleJer nllr.ruperiout))alwillwmint the h It'd l he public A li one +h., o.n All M•r lit+huAnbt omdoll or to mpnufxublicllin o nny Vn or mr o Dgw Y wish t knots wgo e art ocum rel+pon p o IAe pa rvn It l croon ado are a,sp cuuJ iotAinp . t a n Andes anY ,,ehd4 . /t'P11auns sr Aru n.grax tx y ngry he Iglm o Ail I4w two, for her pnnunwJpenile nt ula A land 1 Wn N4"e F li ~ kly bl) ~ rav Ornnbt one M rtniw 'r+fla~ an alaiml m W aom acogyprem rkduwl a lNwne Alan r,n allot J,a ~natnmoorsecOIw in that wise m that Alr Angry ar The ar orm consifa rh f rom tt 1 M denNtlY , o w mrnr, Implx alxm .d law, or rum dmn to beyond. he acopantian fe:re m m an a r<e mint wllhout /1,A me mt eon,tnrm w brT am oq 1 a donor w in Cumoni wharf unm , d/MnY Orel nr be on tM en conkneJ 1 / Itc4le, ro do what he Is unable to Maderrr u m geamfl a more .coma Ike nnup of rwlurd „f m 2~na,c Ia M b It Nw NIJ to of III Itrms mI Al be IAe rrmiumn ml AlN missed, [no- 1 re Mgr and AY Iwm ,rne AN ulnn.,rnk and IAur doe no u9onnFell darler,wh SAe ual ute See )I A . lot 1 1 , 11 The do r r AtW 10 /vA ml IAe rib that 1~t hat ref duct wAaA is conltvp to Ronal 1R S W 11 11 Not Il AN 101 A+cr 1.1.11"h it. /hl nip" :Pon 1,n der whwfiN as cn and See "me%of uIll inolurmt nt tmtnmreJ intoaono,Jbxppm. isol. J and 40 7791 al prxV-9 el'Arg 1 4 an d+M". Rxisle fA a O l , 4Al oAAA he,, ,,A 79 S W. 7d IOt 3, 1016. Ultra vises wn [e ab:Iy of tneni ,of rse,wh 479 F A Sort 12 Olt imrlr,l Oul 1,M thq h l A, se r i Ch IW N Imi,Y1. Dl'1 D ,me ropnoper m/Y, he .'o," Rrli` doe m+9low .man Ent p power 3 and Am,e lose sy .m,"e3inWiabll e in .die e, the IvIrm"lion to IN Irad Few U Few c w"omArtR pml the 4i an Ingli ands poor nr wlwM cr+cM /I'll tern eqm a mmme,ally nremona6le inks Ai and he true cla IN F 11, Ins. in prnrvrtr. it. ahn nm.e inIo when mods iurtArr, Ik Pill 10 to an >ctwn µe wrrnnp by rc f Nrm nr,rrnnrnprneullr n,rJ r+rly m+linp the alm~"t xin nrrJ the slate Arlornrf Grnrortolor(en eowlo,il Ah ltlea nulnowkde don cotton of to<iercinp par. n p 11-ml Supp 117 In Ili Al11-ml low. the Jrce V',J rb x Or Anna the aand netdnn the trapunrmnl ill of incw. S 1) : er NA N W. 7J eY, 70 TM afford p I-4V. b 1 nanoe, of m term., A It Ii )'arty IAII 11,0.11 rig es of affection. now. Inctudup Inlunn inns Apollo %I food f 011141 the I'll. of a kookiest. li I4naniJ lnuwledie Me " Iks(ol.., hol"ol', lpaA tier, does me romtrrote undue Rscntas JecieI FIXIA a Ike { ill . ti~' o ISM ISde1 U,YAYOID IDLE A171 V7 lure Ihr erm, In took, 4Ute thcvrwl In Auc r,a U4 N 6:. RU. 104. A d it l< a Iomlwhlof I "Ale M Df if tllVl ,re dnr/W. Ivr21 teN ruk lAd the to na 1,e an avicemgm N l o4hn1. 'in a l to malt wt a. dt {u4,voto,l acu . 4y trntr wiR nut t o binding if one M Ra retent+I l,m I he retel IM 4 he No, lmJuk or x f goo art wt to be too storl r1,uAN by pan, I"July tnA+gnal the olhea Ca,a or unf+N [ompfles woo a it rt Rnon r I'A R CL cu et 1 sem1 11is Y ul el/ n to on l ❑I1a mN, nl ob+ndencJ and the Court fhi celery to lholw Ill aY relool. t{ v r Ixmuhle JrcrA air a lake "prr r,nn,nn tAAI a UNCLEAN N.1 dot iA Ill Nnce l1, Dantis suite no Je+N On consider whether be Finger of IM aa~il term, In with 1 au, the a been I dean wi boa nies. rcu+IUm if a mote n+f fxl Milk Asol III l of pa f a1my IlYml the Control are to aver I ed) Werra JW F. ' build ill one apxnrle is and IN Nwhitpr merely )A r wAle de rrMl Alf get I vier wNA litl I{ d, I.lu1 n oo, 1 AB 51104 (IF TRYST w d,l in coA a +nlrrl It. min "bou1J At wxhhdd " 130 F. eel mil and nd is rtwlt the Y r mong r hi sudo nil fammunlY hrWl ~reJkol Fn wtlkiwl te+wn+hle D Irwr,tnn u,tln+nr lRl,r1 dial equity Olome a an 14 l lot W. uv.)O. lep+hofurrM. t amunputhclnFtunn>f +c1 AllAul A pn ~wolM mtruth and I I . SR U e1R1 Opi CO w u,l nal owl k,4 build army NNhwo \nuwkJ IA4t fnulhknl YAleM iraMcr",N wishh munnwt MB olr their JI Wt 4T AneMAnetfin/I xl 15 ln the n so or the tom UNCDYSf ITL'TIOVAL eonPotb of nnnnl wJr,lre,r. "aRJa akmenl lourduireompclnnm.sw on. nn wkwk ,l .,il r IRH.1111 alwdvmrnl ON the court notion upon+hrtA he",he NO got IA wine ormmmoilcoll. r count mu he MWMJ wlwn a "l wI Or cu r or aln llJ,nlLd r<Idk.n.h,p/ 1 r pt I IAO rwpu"r,l vol n o nhk oing+la w, InW, will P Sd to p,nl IN Al A tRuoy, wines R Don, moil conimonly Irc Llmird A ~J 02 Cum ore darer. Sep too", xm/I w p4eA/ble All Inh 'he r,,Si, Io ft e, rnu, NO won or nw dant 5141"CuInLlunw N'hcnanamte r In tomuenet +Ill Lim Site . L,- of Toe, e I prr« rho . -Ppul.n d I hr unr.,m atw r ism nu Inn uhk. MI HIIIY I)., 71515111111 in w•r Alot m .0low wltAlol urJrrlnp L.°r''uunc Gl I* untunawon. ..bung la heY Aulrpn Al r, 111611iA out J 191 IY111 )adltmtal oA the ANA, n,. ,tin I hmr h, fie done the Jnl,m Ile condorsl ao one wnA 'vin eoa,IJglcJ sold At w., NO{nhuJ"ter UY£1RYLD Wall mM1n+m e. UNFAIR Ld R11R MAl11l'[ AVIV , c,A,I x lcu.... Id+Jedmo elan Find,. , See 111 A. 711 boon, mJ eomrrumdr All Area, wrplu, nor pan of oara'J Ignition n ~ry OF Gr mein IN IA k+ndr. M.Cbn lac L, all or dub. Ihol dr nJ 1,n It m+1 Intrude pow no IUrpru,. at. il~nun It, e.the, p tab" "No l 1'LAR A7 H N N common low pkl All H Ifi it it aanJ, by .,ell, W Ilia I.naml a an rmplu,er A knA IM ri Jwomcm .rrtme funk .nJ ar ccuntun prlxc,s lulkrw E4urq 12"N"I. 15461. it an 'coil S,mdarrp, rip we can Ie VAluunun Its" wl, nill anNS Is rnl.w lot uAJn this Y+usrW Lr t "Well inset of N'tkm, whwh uumatrcr,d,aone A Jrctar'in P",IICJ long III nru.ed AkedI. u,on IN rtr+IuN roe of Hsen b" pdNmm Act. Ill art , t "We, IMtt talc nnn,ary 111 hrJ •mcon I. d... lnJ from r we U71t.O sriNnn i {lm Agog sing, winscooo ItRGN. E a.,, Io 111; law at"t A n rl tp U1 pep+ 02 their cost, of nrl4wllo w+ v [ ts kom rapnal C0.11r I"IMJen to matteI A I NO W,LeA/ryI rc4aK al>`b,m aM Jnal,Nboon in lA+I the hamrriLY, De YmoTLIYIIMJI Some J[IermP fbil Itll"Irrr,,"Illalnl lM fo I„ Angst rnh,whisk oafi"rl him for , hlt1 re 11, mn,~empLprgwemr'uyn,- u,h ,{she ,),node rut tool ore,mwAIm,m "Along 1,l untun,tduuoa dy'p4n [on I 710 uunrtl D. 1fhe1 11:6, 1W pis 11.1e .1i in +b1h A,' 11 rc Mrnl cord kc Lam lbw Joluul.,m „r r irk . rry,tel d MaR. i IhTONI'l Y.1111 r W ull hilloir in the ,rA ul I.w intone Cuemw to emplctten to YIil Int A S:c AJ["6x.Jmn min urn Lnaunl, ":111ha !d Ail s+N w 11 will Jcmmrnlal to the more.) mono, it Al lnJ pm.reeh,ab in 0£11f111A6 no aAAal. ma in Amp Arno) employlil Iffil l to Inn gnu It more Into nu. Sec k,2 n Nulmc%rl c,or. Aml or A i onua,one Nrn 4, to rematr Ih+t prermu, ion of the uncun,b A W lit, 117 1Ie k. led AAI wllh Ih<,A rei,twn Id- ANpAin a , Mneaxm IY mJuotmrnl t ,nr nmd„Ixh u, 411 aluolkAr eke renbnl ancnbvice+Alu. The )aeon+I pr+ahce +Ie Mrs dL,Itd kweJ In hwmn,w grr rtnlnlrnlhfw PpraAr Put Al hg ,ngthl hY the grtklyd c„mmun Ili. role mnJ,t All Ste numrtn r. U111,AR 1TIbh A 1Wf IY. wr N T S Nr7,R7o rtndkt nI~J a olr,e [ of n Jl,vnminamp TIRIAt /u.Itm whisk s t he cell .t'onlp+n/deli, III a I% Ocide.,untrue.unrnlarcre Mnoun,rpl~.mc or he Arm l almrrnl. .5 Ste +h1,CMrd hdw nroarlw leeet,. 0.nMrbrddinR, Fordd, malme w+,wumbur t+Lromlrwn,Y,Iu,rkbMlln, r AW cad ieJ m IQ!JUth Cum .1 k9 Itam1Linn ao,r+ in 14 hI the the'I0 rn,ml+rYNo D1CI AR1IRT l Af ITIVA 1 mu,ul C,xle A I I W! the suite d IAe tool JAN Ill in IM Ir"1 m wool rn the IIFAI of for £nll,tA,en K, IN .'lima t Al 'r ` ids 1 .H/a d;w7 •il A•u adl!'Y'r''3d YYi Ha43!T. ;+a14a-14SIF ~_4'All 4• rJ I ( A{ ' 1 for statutes and prosecutions if community groups can tale ever and T({$ DUTY TO GIVE ACCURATE l(( barehandedly suppress free communications more quickly ands . more r r ~ II effectively?" INFORMATION E The right to eommunicale cannot be restricted to the virtuous r i intelligent and broadminded. Even if the eggheads and angels could, in some way be identified. Irecdom or communication is equa!ly avai!- j I able to the demagogue, the ignorant, the prejudiced, the overzealous A case recently decided by the House of Lords' and its analysis i and the wicked. The rill of Rights prohibits any such dincrimiwticn by Professor Robert Sitvens' have again focused attention upon one { l by statute, and under the common law of torts the right to alarm his of the most Interesting tort problems of twentieth century common , EI neighbors to the evils he sees Is open to every person so lung as he law. The problem involves the use of negligence theory to afford a t I 1 can muster the support of his community remedv to one who has been Injured In his financials relations wilds Is not this the ultimate freedom we seek for the imlivtdwl and the Third person due to the defendant's e~rroreou~s r,,,,t, NIS,- eertF- ' for the social order? %i can be more expressive of our basic fire. ficale, or other (ilure to 've accurate n ormanoT~' n. i ne probl,•m I dour than to bring community affairs to the doorslep of every eiuzen icmeImes dealt wd in terms o he oty o care;' "liability for and let him speak his mind if he dares, and exert hie influence far h re r en words"" 11 use of lam ua e" "ne li ;It misrr re. a community nearer to his heart's desire? what more can he ask ten atlon,"" rand""deceit.7•nn~ty,contrac ua o Igo Ielr g and what more can the group do to Insure his right to commul s nc m I Jty" or of er oc nna vil age. None of these charac- 1 what if some communities are reactionary, some left•vl some Irritations is sufficiently descriptive The problem can probably be ~ T conservative, some liberal, some virtuous, some low In morals, some best Identified in light of the, following fact situations well knows i 11 divided into snarling fal what if some factions have all the toAmerinn lawyers; Instruments of communication In their power, their teuhings anathema ( i ) D accountant prepared a favorable but inaccurate balance to those excluded frum power, forcing dissentrrs to seek another f community? Suppose that truth Is brutally crushed L, earth? Is not sheet of X's business to be used by X to obtain credit. X was in fact 1 the very basis of A Gee society the COMIRM right of chiaem to hate a bankrupt but P, relying on the Will of the balance sheet, a home market for their idea,, prejudices tind power? If the wicked extended a line of credit to X and suffered heavy lasses.' t prevail lorlay, the righteous may renew the battlt tomor ow. In order to obtain Insurance on goods to be stored In D's h (fir The Rill of Rights leaches nothing to the contrary Tort law warehouse, P requested and received Information Identifying the r teaches nothing oppnud. They merely say to those who strive with bins in which the goads were to be stored. D stared the goods In j words: N is a common right you use. Beware in its usr Icl you bring other bins and they were destroyed by fire. P's Insurance did not l down on your heads the fury of your neighbors. They have the power cover the goods and he suffered loss' IMr, to give and to take away, and no law compels them to communicate with you. U 1 D, a public weigher, Issued weight rectfpls to P. a buyer of bran!. On resale of the beans to X a shortage was disclosed fn the II I ,r see Nom 74 It,,. I. uer Ida (10171 s,. run N.u 1 nl An'n rnr rr,w..etl"e Ill and P lost what he paid for the beans he did not receive.' r or P,t+Aom nl eh"icq Inc. a Mi.,. )d 101). I47 NYs 7d lo, In "d nn rehr>nnx r is llrw •d JJh, 141 NYSIJ IsJ (s„e Ct lush Ci N..,n, Inlrlbtrn.r Is Ti" (e) Before investing in attain certificates P Inquired of D, Madan '-'end IIJ-le tlOJO "II It null, Ill that in 161 l,n; run ILe gross Iriend or cen,"rtl ill pobb" and ,hpllrrt nr pr4„le ,..d im ldu, m, hod LA, geul' ' Prnromr or G., l'niernity of T,un, eU Ina In Irredun of IhnuuM and rrre"iun, 17 n"t Thor who lea hush hrhlhim lb,ouo I Fiedler p burn, a Ce r, It'. f t0a7 t l An a R. Itl. "f its IoN " herd upon Thor nrn "adds ne and r~Wlone, but h Ih, Iri,u 'hry ant 1 S, Ilr I"', , r. Ndkr'. /u, d,net pre7ioi, W P+ oa7 1I Moorrox s L L. sure . i1r ItIe6U. 7 enl Dxlrfeal leW6ans,, NreLmnc, of the leas that are mlertui neJ, and Ida IoW, and rho 1011-Pt', In ell they Ne eenrn+ed" The lam "aMndd Irewdion" b used rompreheullery to hvrh,de Its, Nat Itrd Ierdr, co 1, properly, er bminew iranuclion. e L'latmun ' lnrernatloCoPv To cae, 251 NY. 110. de NE "liAL. R. I331 (IIJt), .1 A, r Co. V. leP R.R. 40. EN N.Y. 111, 111 NZ. al 1a I ALR. 1111 (1011). , r EapCn ed from eU C I A IAW lid, Val. li1, No. t, Jonuag. 1963 ,r (1 p (4841 CopyAphl. 1065 o All right, reserved ((1gS) rA 1 J i . • • • •,~wnnu7 <64 170 ULIA l.4W Xtr/tW 1Vo6 fill 464 e services consist ia7gely of advice, opinion and judgment-ll of the extent of a defendant's duly to give accurate information evafuatoo, examiners,accountanls and others who limit their c4 s ►ben Injury Is done to a p,alntiff's financial refatiol.1 with another cations to opinion based on the data made available to them .'s I' preach. order to be actionable the lailure of such prole sional men ,to use are"In diving an opinion must be so extreme th can be 't the opinion given THIS EKIANDINO TLND[NCits or rat Netuc[NCt ACTiom f, found to have been given deceitfully, or recklessly, Oy with. ohonest belief. The formula Is flexible enough to serve all at it should be observed that since the negligence action $UP- { fn Purposes of the negligence formula without Involving the lilliatfto planted the actions of trespus and case In litigation involving unin- j the multitude of complexities found in the usual negligence case s, ' f tended physical injuries, there has been it marked tendency to {I Many courts have developed a more stringent deceit doctrine convert all tort uses Into negligence cases and resolve there by t is apolied to a !actual misrepresentation made by a defendant, red negligence doctrines." The negligence action imposes the mildest fe,r ie i quiring a maximum of business accuracy under the label of "in, burdens of any of the tool actions and has provided numerous 1 S 1 nocent mfsrepresentatrnn.,, Witther the representation is the resuh escapes from the strict liability Imposed by medieval tort law, of negligence or honest mistake, the defendant may be held liable though with the aid of various makeweights it can be made very I onerous. 11 Is the lowest common denominator to which most tart 1 r for the injury suffered by the plaintiff resulting from the misrepre• Irritation of any material fact subject to ascertainable knowledge. actions can be reduced with little effort." The action was developed Except for the in,eml to deceive, the normal elements of the deceit for jury trial and by jury trial. Its doctrinal terms--c usal :elation, action remain prerequisites to recovery. Ili'hile thi proximate cause, duty, accident, interv,ning and superseding ages. I deceit action developed out of t11e equitable s extension of the remedy of rescission ties, the reasonable man, due care, loreseabilily, breach of duty, ~I It has found wide acceptance In legal sctions!e It is limited prise tea ipsa loquftur, negligence As a matter of few, under the dreum- f to the Parties to the transaction, but it ntl coui} be extended doctrinally Itances, contributory negligence, assumption of risk, last clear to accommodate the usertfon or certification of fact under the fir,( chance, emergency and the endless refinements which have de. ` prong of Judge Cardoro's formula. It stands at the opposite pole veioped :'out each of these concepts-provide the greatest latitude Irom An action based an negligence and would accommodate all the for the c. videration of a wide range of factual data, (or the arry• 1 uses here under study And 00. three-party situations In which the ments of advocates on the law and the facts, for instructions v false representation, even though Innocent, does injury to the fi• juries, at f for judgment on the issues juries, trial judges and ~aancial relations between the Plaintiff and a third party, Like iq appellate courts. These concepts permit Indivtdvaliation of parent action of deceit, howel too it is rrstrfcled to two party situa• every case, so each is a variable until the last court has said the lions unless the risk of injury !o the relations betw lac word, and then It Is it constant only foe that ease." and a third party een the plAlnlf9 hih within the scope of the defendant's duty. This, of course, is the crux of the problem whatever theory of For most part the lax in a negligence case Is made a poll jado I Liability is Invoked. Thus the circle is completed, posing the problem It Striking seemVho of Me t1nden<I are Inund In the rart1 Armenian rart wF.a h uenbrd e( pda•maM[I el tF.e prabovo riot men IS rho Lror4hle It to 61131; the Cold W. heY . kytd,it Y. . N). Brawn e. Cmll~no. $3 N H. 1.1 to TAe 64131 ; a l7 uid that he mun DOWN tee ord'm knowlel , In; all wd;tnnl Lae 0 LOet W r. Bw ah4"a1 St N V Y. 4 o 1 (A1113, and the ?site roue, Turner r. , r ! Al by olhfn el h" PP-1111111, end that he le reduiad la {tort isr rea,onabk nn 14AR i. 1 . 411 C,I.I , IJ 13A Ad Tu61.3 1( h h 0a 3 Ws a ryseal e 11h 1193) 1 Aa1 v theSen Au its s Seemera dumie [aS ten. !1 , i I, ad ddirence In land leith, Th:r I, I built in fudiM1u fiort of No ad vlr4 nVmint M1• i 4) 5101 SI. Tlull o At Ca r. 61"11, 771 N Y. 104;, IS N t IS K me (9th tA Cie 1011) U1. ]70 AM n, it deteY a "lend liability tor e 044 ylyr4alIniurieo n Ifeet uh Militant Militant 6ouldnf from negl ipel et; Cl,, 110 R. till (1910); ref Andwn v. Klee, 301 0 A loot iiso In candq(t. to'r;a Lrtlv. •I61, 1r,it,mu adla A:ene•14 Esirrla,ty: foe Cale . 10 Item r, Han, SI NM ISO, 37J P.Id 111 (1014); Sen1a %.Ire A Asia. Ca. 43 Jaaeull r Child) Molina Hon Ca, Sao MIN. illl, 111 N It 143 (1911); Oekur LexS a Co., 141 NY . I. If0 N t. 700 (49:4); Trml Cf. V. rklrLer, IS! Va. Ill, W. Bamble aer A Co, 4 N.J. Miu. 1003, 115 All, 71 (Nfl/), Pilehlwd Land k Cattle 10 S t. i17, 71 ALR. I II1 (t A too a,vol Co. r. tine, 163 7u. III, 340 S.W 7d 191 (1061). 4++, 71 Hqe L At,, Ill, 417 d u 1; Will'ton, y ter loco molea !/inrhoula. JA the nettllenn silica V Witty Ilnartd by tdet elevated. nmdollY thew P Nhen a dere"danl Sea Indu(ed ioolbee act by utepueun "A'a use r problem o f" lI m erpiewallnl ddendann. TSe poWLUUm of loran Is lb trial Social of agaeean col i narh not dI,hanan tal c sal oNV too r coed- and demote Au direct! faunsew am numerous. Ind roe Portrait and nice coupe Saud OR tale n, rho 1AeuW Mir 3141ool 10 at 114. Sri Keeton, Slim note rfrom the acu's 3, M,n1, lw,e to the ]wry seed au baxd an any ether Round. Set /1/ra! act tree In W In M' W N4 celery,,...., IJr Pa ,v o 0) f to Rrvur Jor Owriy 0 ha. L, Are, kraal dl1uN 0011s had by War hSnlSlnl CeSw Crnq 1,nerln I YVrrlrrye,leue,, le Va. L. Parr 317 (1911), III (b7a)1 444 (M01 14911 I l t ~ t i } e DM 2 819ryry89 att wNUci Grfl 9100 Hwy 7191 Ilex Denton, Tx 76705 City Nonage[ December 21, 1999 Denton City Hall Denton, TX, 76201 Dear Sire RE, city violations of law 1 am requesting that this subject be placed on the city council agenda in the next regular meeting. Please distribute a copy of this latter to all council members and the city attorney. It Is my belief that the city is regularly breaking the law in teaching defensive driving classes, for the following reaeonss 1. Ultra Vire v Neither the city charter of the city of Denton, nor the Texas constitution, nor general stat• laws allow the city the • authority to operate a business, other than a utility. In 1929, the city argued in court that it wee entitled by its charter to enter the ice business. It cited the followings The 1914 Canton City Charter and 1919 amendments, especially Article 2, sect. 11 Article 9, meet. 30 and Article 7, sect. 2,1,6, and 7. These articles refer to taxes, the right to issue bonds, and it 1 powers of the eoun.;il and pity manager. The court ruled against them, and they appealed on the basis of Lea being a utility. The closest such power of the council permitted by the charter, is the establishment of a free public library, and cooperation with associations for that purpose. The city manager is empowered to make financial recommendations to the council. 2. Precedent A number of years ago, in 1929, the City of Denton was sued by an ice company, when the city went into the ice business. The Lee company won in the lower court, on the basis that l ubllc revenues say not be used for such purposes) that no law or charter authorises the city to engage in a business of a private character, and to do so Is yku vhre and illegal. Texas Constitution Art. 1, 91, forbids use of public resoure•6 for purposes other than normal governmental functions. It is my contention that revenues collected by the city from teaching defensive driving classes become public revenues, 4 and as much, may not be used for the operation of a busir.%ss, such as the defensive driving classes. The city also uses classroom space paid for by the taxpayers, a supervisor and a personnel office, aupported by the taxpayers. Though it could do bookwork suggesting 'repayment' of the taxpayers' past, the fact of involvement of and singling of public finances still exists. 1. Revenue from a utility As 1 have found a reference Misting that revenues collected 1I I jA ti r I F 9 I Denton p. 2 from a water utility may not be transferred to the general fund, it appears that the same may apply to other utilities. Thus, if the city should declare that defensive driving is a utility, they would not be entitled, by this reasoning, to place the revenues into the general fund. 4, Operation of Utilities Permitted In the 1929 ice case, the city won in the appelate Court, by stating that, as a commodity and a necessity, ice is a utility, and the city is autAurired to provide utilities. In the present cue, defensive driving Classes are not a commodity or a necessity. They do not lend themselves to natural monopoly, nor meet any other tut classifying a service as a utility. S. Independent school district required Article 11, 110, Texas Stets Constitution, enables a properly ' chartered city to set up a school district, only after holding an election. A 1905 act requires that such schools be free of charge to the student, (School lava of Texas, Art. 27611. A city may not operate a school outside of its limits. Ivernon'I Div. St, art. 2103, Nosreoheal v. Lagle lake, Div. App. 236 S.N. 9961. A city may operate a school only if it is a separate And independent school district. (Sayles" Civ.St.1/19, ■rt. 1 Md., NcCo-as v. Rockport, 14 C.R. SO, 77 S.N. 911. E A city must first obtain authority before opezalinq a school. (III Paso V. Conklin, 91 T. $39, 44 S.x. 9111. F 6, lending of Credit Article Ile 13, Texas State Constitution, forbidr a city from bacooing •a subscriber to the capital of any private corporation, or association, or...in anywise loan its ` eredlt..,.• The city of Denton has entered into an arrangeaent with the Texas Safety Association and the National Safety Council, to + operate a business in cooperation with them, and to Is to them certain relaburssments. Though the enterprise is currently financially succueful, it is possible and conceivable that the enterprise could lose money, In that case, the city would bear the whole loss, and not the other associations. ` violater such a loos would require the use of tax revenues, q provisions mentioned above, In topics 1 S and 1 1. i This clause of the constitution prohibits local governments from Issuing any form of financial assistance to private enterpprise, not only to railroads but to all other private agonciae. IC2not. it. 1 116) art, 3, IIS10 53) Art. 111 113, It art, 16, 916, 411 D.S. Coast. art. 11 flol, A city can not obligate tax-purchased property (in the present case, a meatinq rooml to a private charitable j organisation on a condition of later reimbursement. (Op. 4 Atty, Can 1967, No. V-173, regarding a hospital laborotory.l A city may not enter into a partnership with A private f ( I Jai , A Denton p. 1 organization, (Lewis V. Austin, Civ.bpp., 147 S.W. 2d, 298 regarding purchase of mutual ineurancsr Op.Atty.Gen., 1919, No. 924, regarding purchasing mutual insurance). 7. Fraud and Unfair Competition The city le eingaginq Sn unfair competition, by means of s raudulen! white pages telephone listing. TRis ]!sting ptrovides false and deceptive Impression$ to the public, includinq: a. That defensive driving is a function of the municipal court clerks office. b. That the caller is communicating with the municipal court clerk's office, rather than an answering service in another part of town. C. That the school listed there is the only one. d. That the school listed there is the 'ofliolal' or 'approved' one. e. That the City of Denton, or the Municipal Court Clerk's office is in some way In charge of defensive driving j classes. 0. Conflict of Interest F The city to also engaged in a conflict of interest. The same entity which writes traffic tickets, also Makes money by teaching the classes which result from !hose tickets. If a person in Denton believes a traffic ticket is unjust, and attempts to go to court, he finds he has been given the same court date and hour as 50-100 other people. After t in hour he mustgcomeuback anothereday,he issrns the t, to go to court, Most just give up and pay the ticket. Many of those who know about this and peroieve it as a racket, designed to discourage use of the court, take a defensive driving course instead, Then the city makes money on them in that case as well. The citizen pays the city $10 for permission to take the class, and 970 for the class, so the city recieves 110 from the citizen. Me may be convinced he is innocent, and he may be convinced that defense in court 18 discouraged, in order to obtain his money. r 9. Certificate of Convenience and Necessity It appears the city is violating the law, in having failed to obtain a certificate of convenience and necessity from the state. This is required it the city operates in competition with business, and if the city operates in enterprise outside Its municipal boundaries, (See earlier provided sheet, titled 'Summary.') 4 yours tr , E. Doug s , i CITY of DENTON, TEXAS 215 E. MCKINNEY I DENTON, TEXAS 762011 TELEPHONE (817)566.6200 DATEI December 1, 1988 TOt Lloyd V. Harrell, City Manager FROMi Harlan L. Jefferson, Risk Manager 1 SUBJECT, DEFENSIVE DRIVING PROCgAM j S U?Kml I E Recently, the manager of the local school of the National Corrective Training Institute (NCTI) questioned why the City was providing driver improvement driving receia responses numerous benefits from tour~ defensive that the Denton public. courses citizens t of the ' school, which consist of the followings trathan nfered to the Cneain gross l Fund, income, and A. The ,OOO y net receives income m is more 430,000 B. The city provides stability among defensive driving schools in Denton. Some of the schools that have taught classes in Denton have gone out of business. C. The City's school is considered by the National Safety Council to _ be one of the beat public agency schools in the country. For the third consecutive year, the National Safety Council (N.S.C.) y Government mention ATTACHMENT 1.)Pnrformaace awarded the City an honorable by a BA_CKGROUNDf stablished e than The CiWey'were autthorizediby thecTexaswSafety Council torteach classeseinyboth ago. ~ Denton and Decatur. Therefore, the City's school was in existence prior to any of our local competitors. The purpose of the school at that time was to traffic citationsand training prto our ovide revenue citizens, i the City's an safety program than paying Presently, the net revenue of the defensive driving program is traasferred to the General Fund. As a result, the citizens of Denton benefit from our program because reduces revenue and supplies or tohfill a posits nhsuchfasda can be used to purchase equip fireman or police officer. ~i } Memo to Lloyd V. Harrell f December 7, 1988 Page 2 of 2. 1 PURPOSEt The present purpose of the City's defensive driving program is to make sure that quality classes are available to the public and to produce an alternative i source of income. We accomplish this by not only providing classes that satisfy the N.S.C. standards, but also by setting a level of competition that encourages other schools to provide a quality service. The course fee is an example of this. Due to our school, the course fee for most schools in the Denton area is at a reasonable rate of 420.00 per student. However, many schools in the Metroplex charge 325.00 to $30.00 per student. Secondly, if a school is to be competitive, the service it provides would have to be so good as ours, or better. Because some schools cannot accomplish this, many of them go out of business. When this occurs, the students they taught have a more difficult and costlier time confirming the last time they completed the course. THE NATIONAL CUMCTIVE TRAINING INSTITUTE (NC'TI)I I The National Corrective Training Institute (NCTI) Is a Driver Improvement School which offers courses to traffic offenders and bad check writers. They are also a competitor of the National Safety Council's Defensive Driving School. Their local school was recently monitored by the Texas Safety Association and, on a scale of one to ten (with ten being the best), they were j rated as a one. The monitor noted that the course focus more on psychology than on driver improvement, lacked content, and relied mostly on personal stories. The concerns voiced about our school by Mr. Vene Douglas (i.e „ NCIt's local manager) were Initiated after we refused to hire him as an instructor because of conflict of interest and the fact that he had not completed the T.S.A.'s training course. We do not believe he would have our best interekts at heart if he continued to manage his school while working for us. When I inquired why he was interested in working for us, he responded that his class attendance had dwindled from an average of 30 students to 7 students, He also blamed schools that advertise, such as ours, for his low attendance, CONCLUSIONt It is our belief that the City's school is unique in the benefits it provides the citizens of Denton. As mentioned in the summary, we offer additional revenue, market stability and quality classes. Neither of these benefits would be available if the City was not offering Defensive Driving courses. For your information, I have also attached a list of other public agencies that offer defensive driving courses (SEE ATTACHMENT no, If you have any questions, or need additional information, please do not hesitate to contact me. Harlan e r/ItV HLJtsjn i Attachments 4044F i 1 ti 1 Attachment I. Honorable hientlon Collins Associates f Hareld D. Purdy and Associates Best Performance by a Federal Governmental Agency US. Postal Servke-Windsor. CT Honorable Mention 1.7 L' °i 'rrji art 1 US, Postal Servke-Houston, TX t DDC•4 r s{~~ Best Performance by a Safety Council dl"..'. ly; ,5 DadeCounryCidrensSafery Council a fpt CQ~n~++~~~ Broward Chapter, NSC t r. .•,rr s Central Florida Safety Council Buffalo -Niagara Frontier Safety C cuncd Safety Council of the Louisiana Capital Area Honorable Mention Safety Council of Point Beach County Best Performance by a State Department of Driver Licensing/ State Government Louisiana-Office Rlstt Management Honorable Mention Louisiana Dept of Transportation Indiana Bureau of Moax Vehkles , Best Performance by a Buslness/ Industry Carolina Power and Light Co. DDC•8 Best Performance by a Bert Performance by a Safety Council Best a Industry Anwna Safety Association Honorable Mention Oklahoma Safety Council Austin Driving School American Cab Co. Safety Council of Greater Ho^ston Sears Driving School Excelawn Corp ofAmerka Safety and Health Council of cremer J' B Ladd Associates, Inc Best Performance by an Educational Omaha SafcryScrvicesof Arkansas Institution Honorable Mention FIL11da Keys Communfty College Honorable Mention Fist 7exas5alrryDrivingAgtny Best Performance by a Federal Palmetto Safety Council Anna Defensive Driving School Governmenta Best Performance by a Military Texas Defensive Driving School T nnessee lal iky Agency ency i Installation Best Performance by a Membership/ Shoals, AL ' ty-MusJe US. Army-Fort Flood Volunteer Association Honorable Mention Honorable Mention Jameson Devtitional Ministries t,I S. Postal Service-M1fiaml, FL US . Army-Fort Ord Honorable Mention U S Army - Fort Knox Best Prrformant a by a bfiBtary Brazos Valley Safety Agency Installation US , Army-Purr Dix Communtiy Service DDC US Army-Fort Stewart Best Performance by a State Texas Farm Bureau U S. Army-Fort Rdey Department of Driver Licensing/ Bell Performance by a hfunicipi!/ Honorable Dictation i State Government Couno Government US, Arm - Indiana Bureau of Iviumr Vehicles Hunteviik !}+lice Academ 1 Y Fort DkPherson Commonwealth of Virginia _Dept. Dfutor Y US , Army- Fort Leonard Wood Whicks Honorable Mention City of Dcnaw DDC•PTD State Rcpt, of Highways and Public Bast Performance Transportation-Texas City of Grand Prairie Jack wbrland/Indiana BMV Honorable Mention Vkwria Police Academy New Jersey State Safety Counv-I Illinois State Police Best Perrot niance by an Insurance Safety SerbkesofArkansas Texas Dept of Publk safety Agency/Cumparay honorable Mention NordtCarolina Div of Moir %,chicle$ Lnrdque and Asscciates American Truck Drivers School Malne Dept of Public Safety FIRM Agency Bete Performance by an Educational DDC-CMD Best Performance Institution National Safety Council Broward Chapter Houston Community college Honorable Mention Indiana Bureauo(Motor VehlC6 i I~ F F b i k c l as, y~ 9 Attachment II, PUBLIC AG2 CY SCSOOIS Texas Nomaa's University University of ?forth Texas City of Marshall City of Longview City of Beaumont City of Richardson City of Deer Park City of Grand Prairie I ~ i E i i i 4044P Attachment