2013-094s:llegallour documentslordinances1131delegation authority ordinance enacted version-final.doc
ORDINANCE NO.. 2013-094
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, DELEGATING CERTAIN
AUTHORITY TO THE CITY MANAGER TO MAKE OFFERS AND TO ACCEPT
COUNTER OFFERS TO PURCHASE ELIGIBLE REAL PROPERTY 1NTERESTS
NECESSARY FOR CITY OF DENTON PUBLIC WORKS AND ELECTRIC UTILITY
CAPITAL IMPROVEMENT PROJECTS; AUTHORIZING THE CITY MANAGER, TO
EXECUTE CONTRACTS TO PURCHASE SAID REAL PROPERTY 1NTEREST5 FOR AND
ON BEHALF OF THE CITY OF DENTON; AUTHORIZING THE CITY MANAGER TO
EXPEND FUNDS IN ACCORDANCE WITH THE TERMS OF SAID CONTRACTS;
PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Denton (a) has approved Capital
Improvement Plans of the City of Denton (collectively, the "Plan"), the Plan providing for,
among other matters, (i) the construction of multiple electric transmission line projects (the
"Electric Project"); (ii) the construction of approximately 2.7 miles of expansion and
improvements to Bonnie Brae Street (the "Bonnie Brae Project"); (iii) the construction of
approximately 3.8 miles of expansion and improvements to Mayhill Road (the "Mayhill
Project"); and (iv) other various public warks projects ("Public Works Projects"); and (b)
contemplates the adoption of future capital improvement plans for additional public worlcs and
electric utility projects (the "Additional Public Works Projects") (the Electric Project, Bonnie
Brae Project, Mayhill Project, Public Works Projects and Additional Public Worlcs Projects are
herein collectively referred to as the "Capital Projects"); and
WHEREAS, the Capital Projects serve the public interest of the citizens of the City of
Denton in providing (i) electric utility infrastructure expansion and improvements; (ii) street and
roadway expansion and improvements; (iii) water utility infrastructure expansion and
improvements; (iv) sanitary sewer utility infrastructure expansion and improvements; and (v)
storm water utility infrastructure expansion and improvements (herein collectively referred to as
the "Public Works Facilities"); and
WHEREAS, numerous real property interests are in need of acquisition to construct the
Public Works Facilities; and
WHEREAS, the offers of the City of Denton to purchase the real property interests
necessary for construction of the Public Works Facilities are based upon third party appraisals,
prepared by a certified appraiser (the "Appraisals"), the Appraisals providing for the value of the
real property interests to be acquired, and the damages, if any, to any of the owners' remaining
property (the "Total Compensation Amount"); and
WHEREAS, due to the volume of the property interests necessary for completion of the
Public Works Facilities, and to avoid unnecessary duplication and time consumptive activities by
the City Council, the City Council finds that it is advisable and in the best interest of the citizens
of the City of Denton, to delegate certain authority to the City Manager to provide offers and
accept counter offers, based upon objective price criteria, regarding such real property interest
acquisition activities; and
WHEREAS, the delegation of authority will reduce the City of Denton's costs for the
activities related to acquisition of the necessary real property interests and enhance the timely
construction and completion of the Public Works Facilities; and
WHEREAS, the public interest is served by the authority delegated herein and the City
Council so finds; and
WHEREAS, nothing contained herein shall be deemed to be authority to talce or acquire
property by eminent domain; rather the City Council shall make such detertninations
independent of this Ordinance, and this Ordinance serves as a mere delegation of the process of
making offers required by law and accepting counteroffers within the limited amounts herein
specified; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The City Council bereby finds that the public welfare and convenience
require the acquisition by the City of Denton, Texas, of interests in real property necessary, in
whole or in part, for the Public Works Facilities (the "Property Interests"), each to serve the
public and the citizens of the City of Denton, Texas. The recitals and preambles of this ordinance
are hereby adopted as further findings of the City Council.
SECTION 2. The City Manager is hereby authorized to make, execute and deliver, for
and on behalf of the City of Denton, after siting approval by the City Council of any above-
ground Public Works Facilities which do not require a Specific Use Permit (SUP), offers to
purchase (the "Offer" or "Offers"), and to accept counteroffers to sell (the "Settlement
Amounts"), Eligible Property Interests, as defined below, within the parameters set forth herein:
A. The Offer(s), as delegated herein, shall be in the amount of the Total
Compensation Amount, as prescribed in the Appraisal for the subject Property
Interests.
B. The Settlement Amounts, as delegated herein, shall not exceed:
(1) For Public Works Facilities, excepting electric utility infrastructure
expansion and improvements, the greater of:
a) One Hundred Thousand and No/100 Dollars ($100,000.00);
and
b) For those properties with a Total Compensation Amount of
more than One Hundred Thousand and No/100 Dollars
($100,000.00), but less than Five Hundred Thousand and
No/100 Dollars ($500,000.00), as prescribed in the Appraisal
for the subject Property Interests, Settlement Amounts shall
not exceed an amount equivalent to the Total Compensation
Amount of the subject Property Interests, plus twenty percent
(20%) of such Total Compensation Amount.
(2) For Public Worlcs Facilities that are electric utility infrastructure
expansion and improvements, the greater of:
a) Five Hundred Thousand and No/100 Dollars ($500,000.00);
and
b) For those properties with a Total Compensation Amount of
more than Five Hundred Thousand and No/100 Dollars
($500,000.00), but less than One Million and No/100 Dollars
($1,000,000.00), as prescribed in the Appraisal for the subject
Property Interests, Settlement Amounts shall not exceed an
amount equivalent to the Total Compensation Amount of the
subject Property Interests, plus twenty percent (20%) of such
Total Compensation Amount.
C. Offer(s) or Settlement Amounts greater than those above referenced are to
only be approved by action of the City Council of the City of Denton, Texas. For
the purposes of this ordinance, closing costs to be borne by the City of Denton
(the "Closing Costs"), in closing transactions to acquire Eligible Property
Interests, are not to be included in the authorized expenditure limitations
prescribed in this ordinance.
SECTION 3. As used in this ordinance, Eligible Property Interests are defined as
Property Interests comprised of (a) easements, of any kind or nature; and (b) fee simple interests
in or to real property to be utilized, in whole or in part, (i) for roadway purposes and uses, and
purposes and uses associated therewith; and (ii) for linear transmission of electricity, and
purposes and uses associated therewith, but shall specifically exclude real property to be utilized
for the location of electric substation infrastructure.
SECTION 4. The City Manager is hereby authorized to execute for and on behalf of the
City (a) contracts for the purchase of the Eligible Property Interests ("Agreements"), by and
between the City and the owner(s) of the Eligible Property Interests, (i) in conformance with the
terms of the delegation, provided in Section 2, above; and (ii) upon other terms and provisions
acceptable to the City Manager and in form acceptable to the City Attorney; and (b) any other
documents necessary for closing the transactions conteinplated by the Agreements.
SECTION 5. The City Manager is hereby authorized to malce expenditures in
accordance with the Agreements, including without limitation, the Closing Costs.
SECTION 6. The Offers shall be made in accordance with all applicable law.
SECTION 7. Nothing herein shall be deemed to prohibit the City Manager from
determining to place any offer or counteroffer otherwise delegated to him or her by the City
Council under the terms of this ordinance on an agenda for consideration by the City Council in
the event special circumstances exist which the City Manager opines necessitates consideration
by the City Council.
SECTION 8. The City Manager shall, at least quarterly, provide the City Council a report
specifying the occasions upon which he or she has exercised the authority herein delegated, the
amounts offered or settlements made and any other information material to transactions
authorized herein.
SECTION 9. If any section, article, paragraph, sentence, phrase, clause or word in this
ordinance, or application thereof to any persons or circumstances, is held invalid or
unconstitutional by a court of competent jurisdiction, such holding shall not affect the validity of
the remaining portions of this ordinance; the City Council declares that it would have ordained
such remaining portion despite such invalidity, and such remaining portion shall remain in full
force and effect.
SECTION 10. This ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the..-__.�%/� day of � /'�� , 2013.
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ATTEST:
JENNIFER WALTERS, CITY SECRETARY
By:
AP VED A O LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
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