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HomeMy WebLinkAboutAgenda 09-05-06 Names Tabs (2.1) 19 AGENDA MEMO (09/05/2006 AGENDA) DATE: September 5, 2006 TO: Honorable Mayor and City Council FROM: Harry Persaud, MRTPI, AICP, Community Development Manager SUBJECT: Discuss accessory structures on single family lots without a main building. Background/Analysis: Chris and Susan Cooper purchased a vacant single family lot located at 3844 Bryn Mawr adjacent to their current residence located at 3848 Bryn Mawr. The Coopers contacted staff requesting to install a fence and a play set on the vacant lot. Staff informed the Coopers that they needed to amend the plat to combine the two single family lots into one building site. In this way their existing home will serve as the main or primary building on the lot and then other accessory structures may be allowed in accordance with the zoning ordinance. The City Attorney was contacted and he confirmed the interpretation of the zoning ordinance by staff. The Coopers are reluctant to combine the lots as they wanted to preserve their right to sell the other lot at any time in the future. The Coopers are concerned that the Zoning ordinance may change in the future to prohibit the subdivision of the combined lot. The Coopers requested staff to provide a written guarantee that the zoning ordinance will not change to affect the lot dimensions. Even though it is very unlikely that the lot dimensions in the current ordinance will change, staff cannot provide such a written guarantee. The Coopers have forwarded to staff a list of similar properties which have fences and structures and which have not amended the original plat. The Coopers addressed the City Council on August 21, 2006 on this matter. Please see attached summary report. Recommendation 1. Refer to ZOAC for further review and recommendation. Attachments: 1. Current definition and code requirements for accessory uses and structures. 2. Power Point Summary 2 Accessory Buildinas and Structures DEFINITION: Accessory Building or Use, Residential means a subordinate, detached building or structure in a residential district, used for a purpose customarily incidental to the main structure, such as a private garage for automobile storage, tool house, lath or greenhouse as a hobby (no business), home workshop, servants quarters, children's playhouse, storage house, garden shelter or swimming pool, but not involving the conduct of a business, nor used as a dwelling area or place of abode except as noted under "Servants Quarters" as defined in this Section. Sec. 1. Accessory and Temporary Use Requirements 1-100 (1) (2) (3) (4) (5) General Accessory buildings shall not be used for rental purposes or barter exchange. Accessory buildings may be occupied only by immediate family members and/or full-time domestic servant or servants. In case of a live-in servant family, all adult members must be employed by the owner/occupant of the property. Bathroom and other plumbing facilities are allowed. Kitchen, cooking and food preparation facilities shall be allowed in accessory buildings designed or utilized for residential living and associated with a single- family use of the property. Upon submittal of an application for a building permit by the owners of the real property, the Community Development Manager or his designee, may issue a building permit to construct, remodel, or make addition to a residential accessory building with the kitchen, cooking or food preparation facilities, provided that a deed restriction instrument, executed by all owners of the real property and limiting the use of an accessory structure to immediate family members and/or full time domestic servant or servants, has been filed with the Administrator in the form required by the City and sufficiently executed that it may be recorded in the Deed Records of Dallas County, Texas. The accessory building shall not have separate utility meters. Any telephones must be extensions from the main structure. It shall be unlawful to use any building located in a residential district for business purposes, except for a home occupation as defined in Error! Reference source not found.. 3 (6) 1-101 (1) (2) 1-102 (1) (2) (3) Air conditioning compressors, cooling towers, pool equipment and similar accessory equipment shall be located behind the required front building line, and be a minimum of five feet (5') from an adjacent side property line, and a minimum of three feet (3') from the rear property line and installed at grade level. When such equipment is located in a side yard of a corner lot, adjacent to a side street, or in the front half of any lot, such equipment shall be screened from view by a fence, wall, or shrubbery. Private Tennis Courts A private tennis court is an accessory structure permitted only by specific use permit. A private tennis court shall not cover more than twenty percent (20%) of a residential building site or lot. Any private tennis court surface and/or appurtenances (other than fences or walls) shall be set back a minimum of three feet (3') from the rear property line and/or any easement. Swimming Pools Swimming pools constructed on residential lots shall be: (a) Located in the rear half of the lot; (b) Constructed below ground at grade level; and (c) Constructed of concrete or other approved material that is inert, nontoxic, and impervious to vermin and decay. Applications for permits must be supported by a plot plan (minimum scale one inch equals twenty feet [1" = 20']) showing the: (a) Size and area of the pool; (b) Location of the pool on the lot; (c) Location and height of the fence enclosing the pool; (d) Location and size of all doors and gates granting access to the pool area from the outside; (e) Location and detail of all connections to sanitary and storm sewers as described in subsections (6) and (7) below. (f) Size and location of all other detached structures in the rear yard; (g) Parking space in the rear yard; (h) Location and size of any proposed structure, where applicable; (i) Location of filter equipment; (j) Routing and location of private and public electric and telephone lines; and, (k) Location of all underground utilities such as sanitary sewer, gas, and water lines. Any door granting access to the swimming pool area from the outside through any accessory or detached building or structure other than 4 the main building shall not exceed forty-eight inches (48") in width and shall also be equipped with self-closing mechanisms and with automatic self-fastening locks. (4) All lights in the swimming pool area, except those in the pool itself, shall be no higher than the fence surrounding such pool and shall be covered with a mushroom-type ornamental fixture which covers the light and reflects downward. (5) Such pool shall be set back a minimum of five feet (5'), measured from the inside walls of said pool, from each side line or from the rear line of said lot. (6) Drainage (a) Such pool shall be equipped with proper filtration and water treatment equipment to insure that the water will be pure at all times. This equipment shall be connected by an underground conduit to the sanitary sewer adjacent to such property and a proper indirect waste connection must be made as required by the plumbing ordinance. Any such equipment shall not be located in the required side yard of the main building. (b) Deck drains or surface water shall not be discharged into the sanitary sewer but must be diverted away from adjacent property into a storm drain either in the street or an alley. (7) Utilities (a) No overhead electric power or telephone utility lines shall be permitted to cross any portion of a swimming pool. (b) All electrical service wires, either public service in the alley or private service on the premises, must clear the pool proper by at least five feet (5') horizontally and thirty feet (30') vertically above the surface of the pool, so that there will be no possibility of broken wires falling into the pool. (c) All wiring must comply with the National Electrical Code and ground fault interrupter devices shall be installed in accordance with said code. For swimming pool enclosure standards, see Error! Reference source not found. of Error! Reference source not found., Fences, Walls, and Equipment Screening. (8) 1-103 (1) (2) Accessory Features Not Allowed in Residential Front Yards In residential districts, trucks exceeding three-quarter (3/4) ton capacity, campers, travel trailers, boats or recreation vehicles shall not be parked or stored on any abutting street or within the required front yard of any property, and travel trailers, campers or recreation vehicles shall not be used for dwelling purposes. No portion of a tennis court surface, fence, wall or other appurtenance shall be located within the required front yard. 5 1-104 Breezeways or Covered Walk A breezeway or covered walk consisting of a one (1) story unenclosed passageway, not exceeding twelve feet (12') in height or six feet (6') in cross-sectional width (measured between supports) and having eaves or roof overhang not exceeding twenty-four inches (24"), may connect a main building with a detached structure (complying with all the requirements for a detached structure or accessory building), provided such structures are separated by a minimum distance of fifteen feet (1 5'). MAX. "TOTAL WIDTH C 10 I Mt\X ~Ei'NES 24" MAX. HEIGHl 12' MAX. WID1H PERIvIIITED CONFIGURATION 6 1-105 1-106 1-107 (1) (2) AllE'! ALLEY 'MIN:1Z'6" - ! . I 'j , J .. , ,I '-'~'~..,j 1'1 1:, ",I I (, i r' . ,( I " :.1 ! ,I I pi 'j ! f i B~ -j I'" I J, : i SIDEWALK SIDEWf,LK Enclosed Garage or Carport No attached garage shall be located, designed, or constructed to face or open upon the front of any lot or tract in any district so that the opening or entrance to such garage or carport faces the front street. All garages, carports, or other vehicular storage structures shall be constructed in a manner as to be entered from the side building line of the garage or storage structure or the rear of the building line of such structure. Places of Worship Off-street parking as an accessory use to a place of worship located in a residential district shall be permitted when such parking is located on the same lot, tract or site occupied by a worship-related structure on which building permits were issued. Accessory Buildings or Structures in SF Districts Location (a) Attached accessory buildings shall observe the same setback requirements as the main building. (b) Detached accessory buildings or structures shall be located in the area defined as the rear yard. Yards (a) Side Yards i. Any detached accessory building or structure shall have a side yard not less than three feet (3') from any interior side lot 7 line from the closest point of the structure, provided that an accessory building or structure may be placed less than three feet (3') from an interior side lot line at the closest point if the vertical wall and roof projections, if any, adjacent to such interior side lot line are constructed with a system having not less than a two-hour fire-resistant rating. No part of an accessory building or structure may be located closer than two feet (2') to any interior side lot line. ii. For accessory buildings adjacent to a side street, the side yard shall comply with main structure requirements. iii. Windows or other openings greater than twelve feet, six inches (12'6") above the top of the foundation or a vertical wall surface exceeding twelve feet, six inches (12' 6") shall not be adjacent to any side lot line unless such windows, openings, or vertical wall surfaces are set back a minimum of twenty feet (20') from such interior side lot line. (b) Rear Yards i. An accessory building or structure not containing a garage shall have a rear setback of not less than three feet (3'), measured from the rear property line unless there is an opening facing the rear property line above the twelve feet six inches (12'6") plate line. If said opening occurs, then there shall be a minimum setback of twelve feet, six inches (12'6") from the rear property line. ii. The main building, all accessory buildings and all other structures in excess of thirty inches (30") above ground level shall not cover more than fifty percent (50%) of that portion of the lot lying to the rear of the midpoint line of the lot, i.e., a line joining the midpoint of one side lot line to the midpoint of the other side lot line. ACCESSORY STRUc-rURE ( 2 HOUR FIRE-RESISTANT W!\l.L IF LESS Tl--l/\N 3' FROM Lor LINE Bur MAY Nor BE CLOSER lHAN 2") I ~ACCESSORY .I REAR YARD , / (3' IF NO 2ND STORY ./ 12'6" WITH WINDOW) (3' IF NO 2ND STORY WINDOW, 20' \'.-1lH WINDOW MUST COMPLY \\'1TH MAJN STRUCTURE IF ADJIICENT TO STREET) 8 (3) Area The area of accessory buildings in the rear yard is limited only by the total rear yard coverage of fifty percent (50%) and setbacks and separation distances as provided by this Ordinance. ( 4) Roof Slope (a) For roof slopes in excess of nine to twelve (9:12), the extended ridge concept shall apply. Roof slopes exceeding a fourteen to twelve (14: 12) pitch (14 vertical, 12 horizontal) shall be considered a vertical building wall surface. (b) In such case where a gable wall in excess of twelve feet six inches (12'6") is authorized by this ordinance, a "hipped gable" which creates a secondary plate line will be permissible. (5) Garages, Carports and Other Detached Structures (a) Detached garages, carports, or other detached structures shall not be closer than six feet (6') to the main building. This space of six feet (6') shall not contain any stairs. (b) Where an enclosed garage or carport is designed and constructed to be entered directly from an alley or side street, such garage or carport shall be set back from the respective property line a minimum distance of twenty feet (20') to facilitate access without interference with the use of the street or alley by , ,Au.f.Y I"/WING ,', ' IT · -20t . 30' MIN, IF ... r gA~GE IHIS AREA MAY BE PAVED 1<1-18' MIN:-!>l ~4'MIN. F ACE OF GARAGE " : "....: '.. ", ' ,.ALL~Y' p.AviNG, re.. ., ~ J .. .", .. . 1S:MIN.', "., .. J.': .'., . : .,.-.", f>- 24' MIN--<j I 9 1-108 other vehicles or persons. (c) Where the special design and layout of a garage or carport provides a minimum of twenty feet (20') of paved drive or apron between the alley or street line which permits a parked vehicle to clear the street right-of-way or alley right-of-way line, such design and layout may be approved by the Community Development Manager as meeting the provisions of this Section. (d) Detached garages or carports shall be located only in the portion of the yard defined as the rear half of the yard and detached garages and carports located in that portion of the yard defined as the front half of the yard shall be permitted only when a drive access to the rear half of the yard is unavailable. Temporary Construction Structures Temporary buildings, offices, and building material storage areas to be used for construction purposes may be permitted for a specific period of time as accessory structures in accordance with a permit issued by the Community Development Manager and subject to periodic review by the Community Development Manager for cause shown. Upon completion or abandonment of construction or expiration of the permit, such field offices, buildings and stored materials shall be removed prior to issuance of a Certificate of Occupancy. 10 CITY OF UNIVERSITY PARK Accessory structures on single family lots without a main building What is an accessory building or structure? Accessory Building or Use, Residential means a subordinate, detached building or structure in a residential district, used for a purpose customarily incidental to the main structure, such as a private garage for automobile storage, tool house, lath or greenhouse as a hobby (no business), home workshop, servants quarters, children's playhouse, storage house, garden shelter or swimming pool, but not involving the conduct of a business, nor used as a dwelling area or place of abode except as noted under "Servants Quarters" as defined in this Section. ~ Where should it be located? The main building, all accessory buildings and all other structures in excess of thirty inches (30") above ground level shall not cover more than fifty percent (50%) of that portion of the lot lying to the rear of the midpoint line of the lot, i.e., a line joining the midpoint of one side lot line to the midpoint of the other side lot line. SIC( ...C(:ES$Ct'~"" Ii 1) I LD II-."C UNt ~4P' it be located? $1R.E;rr WI] Pr.lNTl)! r;;;~~ :mE UJT UNES . I .. j rr----W.-TL \ U e~(; \' ....... 1 "Fa L r-- , -- .--'It I~ 5~ Cf lH1$ ~ f .w;.!. 1.4,1,'1" ~ ~ ~~Kt~ BY <l 1r _~ra~lIIi;.'i.. I, t:--_-.~-J\ -. - ----.... ... !) - . RE'.IJi ,. t>e($'$ tt R"I' EtI.A l Ci ijG H-Ie: J' Where should $TRF1: f J........-p-.,. ""l l fR(:!\Il YAAI) 1 . ~---~--~-1 I lIlJl.CtNU. ~ ~ AR~" I 5~ Of .pits, f. I ~[^ I.4A.Y!lE ' 8lj.WNij . . r CQ'~RtO!!I'( I lit.{ 24" L:,TRUC'lURE'$ I ~ '. . --...-....1 I R~Nl 16__,.,... ~-~ ACtESSQiI'1 -.I I &1abtNC UJE. ~" What other cities do? buildin Istructure is allowed without a main buildin Highland Park - Temporary sports/rec. equipment allowed Piano Farmers Branch Southlake Richardson Carrollton his is the case with most cities. What are the issues? Summary of issues: Without a main building, detached accessory structures can be viewed from the street and adjacent properties, negatively impacting the neighborhood over time. Accessory structures and uses without a main building may result in NIMBYs. How about a parking lot next door in full view from the street? The Zoning Codes protect the health, safety and welfare for all residents. What are the risks? Lot dimensions for established SF districts are very rarely changed in any City. w Z <( ~ ~ ~ (;0 3844 &3848 Bryn Mawr Drive o "'l .. R~ ..;S-7.$4. ":'$ oS ",,"-0 70 "~ 70 70 1'0 ~ . "L j .,. "'Do I t 6- .a. . J 5. ...: "l Ii\ " -:\ .. ~. '+ ..;. 22- a:: 2- . ~ II'Jo Jr, . '"' . . - f'o' "'- J 7D. ~_;; -, B 0, -1'.5 . " ~ , ,.. c .... -- ~ :~~J 9- :i' . r-. ."i .. '" - QI) 26..~ ..... ....... ~;;1' 70.':;., 4~. z,os. ~,i"O oC..!J'.~~ L 7 0....:... .~. ..J.. 7,:). .:'I 1,.1 'I .s~ ...,.~ - I I I I A- I I .... ~1 4C . .. 1- 'tl ~ I 2~ 0 4_ ... 51, "'1 7. t . "" "'\ ....... ..... ...... ".;.~ I" ~ "" I 1 L I 1 . TO 70 MAWR .:!l ." .s~-a IS' 700 70 .;:_c I ....":1 on. .... .... ' J - "t' I 8i 1 ...... \, ~ r I ,Ot .I"T' . . TD . U<Y.0 or Where do we go from here? Alternative # 1: Enforce the current zoning codes ACCESSORY STRUCTURE ( 2 HOUR FIRE-RESISTANT WALL IF LESS THAN 3' FROM LOT LINE BUT MAY Nor BE CLOSER THAN 2') i ... i , I / -..---. ACCESSORY REAR YARD (3' IF NO 2ND STORY VvlNDOW. 12'6" VvlTH WINDON) (3' IF NO 2ND SrDRY VvlNDOI'v', 20' VvlrH WINDON MUST COMPl.Y VvlrH MAIN STRUCTURE IF ADJACENT TO STREF.T) Cooper's residence, 3848 Bryn Mawr Cooper Zoning Ordinance Amendment RECOMMENDATION Refer item to ZOAC for further review and recommendation. 1 . 19 AGENDA MEMO (09-05-06 AGENDA) DATE: August 31,2006 TO: Bob Livingston City Manager FROM: Gene R. Smallwood, P.E. Director of Public Works SUBJECT: Consider proposal from Gallagher Construction Services to provide construction management services on miscellaneous projects. Background. Gallagher Construction Services has worked closely with City staff, oversight committee members, Council, and project consultants to develop the City Hall project in an extremely cost effective and efficient manner. Their professionalism and experience has gained them the respect of all of the project team. We are confident that their efforts will result in a project that will be completed on time and within budgeted funds. Staff requested that Mr. Gallagher submit a proposal to provide his services for two associated projects: Improvements to Goar Park and the construction of a back up dispatch facility and emergency operations center (EOC). The EOC would be used to temporarily house the police department during the renovation of the existing City Hall. The proposed fees for the two projects would be based on a percentage of the total construction costs. As detailed in the attached letter, contracts for each project would amount to: . Goar Park - 6.8%. Based upon a very preliminary estimate, the construction cost of $700,000 to $1,000,000 would result in fees for GCS to about $47,600 to $68,000. . Peek Center Improvements - 7.25%. A preliminary estimate of $1 ,000,000 would result in a GCS fee of $72.500. Discussion. Staff would recommend that the Council authorize the City Manager to enter into a contract with Gallagher Construction Services for the above-referenced work. 3800 UNIVERSITY BOULEVARD UNIVERSITY PARK, TEXAS 75205 TELEPHONE (214) 363-1644 Gallagher Construction Services PO Box 941209 Piano, TX 75094-1209 2600 Technology Dr, Ste 400 Piano. TX 75074 GALLAGHER EST 1968 972.633.0564 Ptlone 972.633.0164 Fax www.gallaghertx.com 22 August 2006 Mr. Bud Smallwood Director of Public Works City of University Park 3800 University Blvd. Dallas, TX 75205 RE: Proposal - Goar Park, Peek Service Center and Miscellaneous Project Fees Dear Bud: Per our previous correspondence, Gallagher Construction Services proposes to provide Construction Management services to the City of University Park as follows: Goar Park Fee wifl be a Fixed, Lump Sum Fee based on 6.80/0 of Total Construction Cost (on bid day) for Each Project Peek Service Center Fee will be a Fixed, Lump Sum Fee based on 7.250/0 of Total Construction Cost (on bid day) for Each Project Miscellaneous Proiects Fee will be a Fixed, Lump Sum Fee based on 7.250/0 of Total Construction Cost (on bid day) for Each Project · Total Construction Cost to include all costs of the projects excluding the following items: · Furniture, Fixtures, and Equipment (FF&E) · Architectural Design Fees · Engineering Fees In addition, the Project Timeline and Fee Payment schedule for each project to be determined, upon mutual agreement, of Gallagher Construction Services and City of University Park. This Agreement shall folrow form of the previous Agreement between Gallagher Construction Services and the City of University Park dated January 2001 and revised by Amendment on September 16, 2003 and July 12, 2006 and attached revisions to Section 00800 - Supplementary General Conditions, Article 11 - Insurance and Bonds. Sincerely, GALLAGHER CONSTRUCTION SERVICES Vrm )jeuA~ Van Gallagher ~ Vice President ARTICLE 11 INSURANCE AND BONDS Add the following subparagraph 11.0: 11.0 GEN ERAL 11 tOt 1 The Owner will be furnished a copy of your Insurance pol icJ es, including all endorsements, prJ or to the commencement of any Work. 11.0 ~ 2 The Insurance shall contain a provlsion that at least sixty days prior wrltten notfce shall be given to the Owner I n the event of ca ncellation, material cha ngel or non-renewal. 11.0.3 Insurance shall be underwritten by a company rated not less than \lA' and "VIT" In Best's Key Rating Guide, Property- Casually, according to the latest posted ratings avaUable on AM Best's website, www.ambest.com. Add the following subparagraph 11.1.4 11.1.4 In each contract for construction, the foUowlng language shall be included: nA copy of a certificate of insurance, a certificate of authority to self~lnsure Jssued by the commission, or a coverage agreement (1WCC-81, T\NCC~B2, TWCC-B3, or TWCC-84), showing statutory workers' compensation insurance coverage for the person's or entity's employees providing services on a project ls required for the duration of the project Duration of the project includes the time from the beginning of the work on the project untll the contrador's!person's work on the project has been campi eted and accepted by the governmental entity ~ Persons providing services on the project ['subcontractor" in Texas Labor Code 406.096) Jnclude all persons or entities performi ng a II or pa rt of the services the contractor has u nderta ken to perform on the project, regardl ess of whether that person has employees~ This Includes, without limitation, independent contractors, subcontractors, leasing companles, motor carrlersl owner-operators, employees of any such entity, or employees of any entity that fu rnrshes persons to provide services on the project Services Include, without IJmltatlon, providing, hauling, or delivering equJpment or materialsl or providJng labor, transportation, or other service reJated to a project Services do not incl ude activities u nreJated to the project, such as food/beverage vendors, office supply deUveries, and delivery of portable toilets. The contractor shall provide coverage, based on proper reportJng of classificatfon codes and payroll amounts and fiUng of any coverage agreements, which meets the statutory requirements of Texas labor Code 401.011 (44) for all employees of the contractor providJng services on the project for the duration of the project The contractor must provJde a certfficate of coverage to the govern menta I entity prior to bei ng awarded the contract If the coverage period shown on the contractors current certJficate of coverage ends during the d uratio n of the project, the contractor must, prior to the end of the caverage period, file a new certificate of coverage with the governmental entily showing that coverage has been extended. The contractor shan obtain from each person providrng servJces on a project, and provide to the governmental entity: A certificate of coverage, prior to that person beginning work on the project, 50 the governmental entity will have on fire certificates of coverage showJng coverage for all persons providJng servfces on the project; and No later than seven days after receipt by the contractor, a new certificate of coverage, If the coverage period shown on the current certificate of coverage ends during the duration of the project. The contractor shall retain all requJred certificates of coverage for the duration of the project and for one year thereafter~ The contractor shall notify the govemmenta I entity in writf ng by certIfied man or personal delivery I wJth i n ten days after the contractor knows of any change that materially affects the provJslon of coverage of any person providing services on the project The contractor shall post on each project site a notice, in the text, form and manner prescribed by the Texas Workers' CompensatJon Commission, Jnformlng persons providing services on the project that they are required to be covered, and stating how a person may verify coverage and report rack of covera ge. The contractor shall contractua Ily requl re each person with whom it contracts to provide services on a project, to: Provide coverage, based on proper reportl ng of classification codes and payroll amounts a nd filing of any coverage agreements, whIch meets the statutory requirements of Texas Labor Code 401~011 (44) for aU of its employees providing services on the project for the duration of the project. Provide to the contractor, prior to that person beginning work on the project, a certificate of coverage showing that coverage Js bel ng provided for al I employees of the person providing servJ ces on the project for the dura tion of the project; Provide the contractor, prior to the end of the coverage period, a new certificate of coverage showing extenslon of coverage, Jf the coverage period shown on the current certificate of coverage ends du ring the duration of the project. Obtain from each ather person with whom it contracts, and provide to the contractor: a) A certificate of coverage, prior to the other person beginning work on the project; and b) A new certificate of coverage showing extension of coverage, prior to the end of the cavera ge period, if tl1e coverage period shown on the current certificate of coverage ends during the duration of the project; 5~ Retain all requJred certificates of coverage on file for the duration of the project and for one year thereafter; 6. Notify the governmental entity In writing by certified mail or personar dellveryt within ten days after the person knew or should have know, of any change that materialJy affects the provision of coverage of any person providing services on the project; and 7. Contractually requJre each person with whom rt contracts to perform as required by items 1-6, wJth the certificates of coverage to be provided to the person for whom they are providr ng servlces~ By slgnJng this contract or provlding or causing to be provided a certificate of coverage, the contractor is representing to the govern menta 1 entity that a II employees of the contractor who wiIJ provJ de services an the project will be covered by workers' compensation coverage for the duration of the projectt that the coverage wJlI be based on proper reporting of classification codes and payrol [ ama unts, and th at all coverage agreements will be filed with the appropriate insurance carrier or, J n the case of a self-insured, with the commission's DlvJslon of Self-Insurance Regulation. ProvJdlng false or misleadJng Information may sUbject the contractor to administrative penaltJes, crimJnal penalties, civil penalties, or other civH actions. The contractor's faj I ure to campi y with any of these provlsi ons is a breach of con tract by the contractor that entl ties the governmental entity to decl are the contract void if the contractor does not remedy the breach within ten days after receipt of notice of breach from the governmentaJ entJty. The coverage req uirement recited above does not a pply to sole proprietors, partners, and corporate officers who are excJ uded from coverage In an Insurance policy or certificate of authority to self-Insure that Js delJvered, Issued for delivery, or renewed on or after January 1, 1996." Add the foUowing subparagra ph 11.1 ~5: CONTRACTOR'S UABILITY INSURANCE UabllJty Insurance shan include aU major divisions of coverage and be on a comprehensive basis Including: 1) Premises operations 2) Independent Contractors Protective 3) Products and Campi eted Operations 4 ) Contractual-Including Specified Provisions for the Contractors ObligatJ ons under Pa ragra ph 3.18 5) Owned, Non-awned and Hired Vehicles 6) Broad Form Coverage for Property Damage 7) Personal Injury including liability assumed by contract The Contractor's insurance as required to meet the above potential liabilitJes shall not be written for ress than the followJng specified limits or that which is required by law, which is ever greater: TYPE OF COVERAGE Mln . limits of Ua bll itv 1. Workers' Compensation Employer's LiabiIJty Statutory $500,000.00 Each Accld ent $ 500, 000 ~ 00 Disease PoUcy Ll mit $500 ,000.00 DJsease Each Employee 2.. Comprehensive General Liability Comprehensive, Contractual, Independent Contractors, Personal Injury $1,000, 000 ~OO Persona I & Adv ~ Injury $1,000,000.00 Each Occurrence $ 2tOOO, 000.00 General Aggregate Per Project $ 5,000.00 M ed~ Expenses (anyone person) $50,000.00 Rre Damage $1,000,000.00 Each Occurrence $1,000,000.00 Aggregate 3. Automobile liability $1,000,000.00 Combined Single limit The Automobile Liabi Iity needs to I ncl ude coverage for loading and unloadr ng hazards. 4~ Umbrella Excess UabiUty $1,000,000.00 Each Occurrence $1,000,000.00 Aggregate This coverage shall be combIned sJngle IJmlts bodlly injury, including death, and property damage liability insurance as an excess of the pri mary coverage required and to follow form of the primary coverage required. 5 t Independent Contractor's Liability - Same limit as # 2 above~ 6~ Products and Completed Operations - $2,000,000.00 completed operations aggregate commencJng with Jssuance of finaJ certificate of payment, and remalnlng in effect for (1) year. 7 t Property Damage Liability Insu ranee win provide X, C and U coverage as a ppUcabJe. B. Contractual Llabl Illy - Same II mlts as # 2 above~ POLICY ENDORSEMENTS Each insurance policy reqUired under sub paragraph 11~1~5 shall include the following conditions by endorsement to the policy: Each polley shall require that sixty (60) days prior to the expiratJon, cancellation, non-renewal, endorsement reducing or restricting coverage or any other material change in coverage, a written notice thereof shall be given to OWNER by Certrfied Mall to: OWNER, c\o Gallagher Construction Company, P. O. Box 941209, Planot TX 75094~1209. The Contractor sha II also notify OWN ER within 24 hours after receipt of any notices of expiration, cancel! ation, non- renewa I or material cha nge In coverage it recelves from its Insurer by Certified MaJl to the aforementioned Assistant Superintendent of AdminfstratJ on at the same address. The term Dlstrict shaH include all Authorities, Boards, Bureaus, Commissions, Divisions, Departments, and offices of OWNER a nd the 1ndJvldual members, employees a nd agents thereof r n thel r official capacities, a ndl or wh lle acting on behalf of OWN ER. The polley dause l\Other Insurance" shaJJ not apply to any insurance coverage currentry held by OWNER, to any future coverage, or to OWNER's Self-Insured Retention's of whatever nature~ The Contractors policy is considered Primary and Non-Contributory with respects to the addJtionallnsureds - OWN ER, ARCHITECT AND CONSTRUCTION MANAGER. OWN ER, ARCHITECT and CONSTRUCTION MANAGER shall be named addftionar fnsu red on the Commercial General Uabillty and Umbrella and Business Auto Policies. With respect to the CommercIal General UabiHty policy, ISO form CG 20 1011 85 or its equivalent or broader will be attached to the policy and contJnue In force 1 year commencing after the Issuance of the final payment certlficate. WAIVER OF SUBROGATION The Contractor's Workers' CompensatJon, Commercl a 1 General Uabi ([ty, Umbrella and Business Auto pol i cles shan incl ude a Waiver of Subrogation rights for the ]055 or damage against OWNER, ARCHITECT, AND CONSTRUCTION MANAGER shan be to extent same Is covered by insurance~ FORM OF CERTIFICATE The form of Certificate shall be Accord Form 255. Furnish to the Construction Manager a nd Owner copies of any endorsements that are subsequently Issued amending coverage or limits. Contractor shari not commence work at site under this Contract untll he has obtained all req ulred insura nee and submitted appropriate policies and/or certifications. Certificate Holder: OWNER c/o Gallagher ConstructJon Services P.O. Box 941209 Plano, TX 75094-1209 Add the fonewing subparagraph 11.3.1.1: 11.3.1.1 The Insurance required by Article 11.3 Js not intended to cover machinery, tools or equipment owned or rented by the Contractor which are used in the performance of the work, but not Incorporated in the permanent improvements. The Contractor shall, at the Contractor's own expense, provide insura nee coverage for owned or rented machinery, tools or equipment. Add the following sub-paragraph 11.3.1.3.1: 11~3.1.3.1 There wl II be a $2000 ~oo deductible for each loss to be paId on a prorated basis between each Contractor havlng an interest in the loss, such prorated share to be determined by the Construction Manager. Agreed to by: City of University Park Bob Livingston, City Manager Date Agreed to by: Gallagher Construction Services V'JrJ ~~ Von Gallagher, Vice Presiden t i> I ~ I. tfrolp ,Date AGENDA MEMO (09/05/06 AGENDA) DATE: August 30, 2006 TO: Honorable Mayor and City Council FROM: Kent R. Austin, Director of Finance SUBJECT: Resolution renewing City Investment Policy BACKGROUND The Texas Public Funds Investment Act (PFIA, also Chapter 2256 of the Texas Government Code) requires that a city's governing body "review its investment policy and investment strategies not less than annually" and that the policy be adopted by rule, order, ordinance, or resolution. The City Council last approved University Park's Investment Policy via resolution in September 2005. Staff proposes no changes from the existing policy. Prominent features of the policy include: . Emphasis on safety of principal first, liquidity second, and yield third . Listing of eligible investments, including U.S. Treasury and agency securities and specific local government investment pools, but excluding commercial paper and collateralized mortgage obligations . Requirements for quarterly investment reporting and 'marking to market' to reflect fair market value of securities held by the City . Use of delivery versus payment for settlement of investment transactions . Establishment of asset allocation limits (for example, maximum 60% for U.S. agencies and 50% for local government investment pools) . Limitation of maximum portfolio weighted average maturity to 548 days (1.5 years) and no final stated maturities longer than five years for individual securities . Designation of the Finance Advisory Committee as the City's investment committee. In the interest of brevity, I have omitted the appendices from the attached I8-page investment policy. These appendices consist of boilerplate language regarding State investment legislation, a master repurchase agreement, broker/dealer certification, and a broker/dealer questionnaire. They remain unchanged from prior years. RECOMMENDA TION City staff and the Finance Advisory Committee recommend approval of the attached resolution renewing the Investment Policy. The Committee reviewed the policy at their August 10, 2006, meeting. The attached resolution, which adopts the investment policy, names the Finance Director, City Manager, and Controller as investment officers. 3800 UNIVERSITY BOULEVARD UNIVERSITY PARK, TEXAS 75205 TELEPHONE (214) 363-1644 ATTACHMENTS: . Finance Advisory Committee draft meeting minutes, August 10, 2006 . Resolution adopting City investment policy . City investment policy sans appendices 3800 UNIVERSITY BOULEVARD UNIVERSITY PARK, TEXAS 75205 TELEPHONE (214) 363-1644 CITY OF UNIVERSITY PARK, TEXAS FINANCE ADVISORY COMMITTEE THURSDAY, AUGUST 10,2006 at 7:30 A.M. MINUTES Committee members attending: Atwood, John Baird, Todd Coleman, Russ Etcheverry, Lance Hamm, Fred Noble, Julie Reeder, Dotti Stuart, John - Chair Thompson, Brad Wilson, Claude City officials: Austin, Kent - Director of Finance Carter, Syd - City Council member Livingston, Bob - City Manager Tvardzik, Tom - Controller Absent: Olmsted, Bob 1. Call to order. John Stuart called the meeting to order at 7:30a.m. 2. Introduce new members/Review Committee roster. John Stuart introduced the new members of the Finance Advisory Committee. 3. Review/approve minutes of March 21 and June 20, 2006, meetings. The Committee unanimously approved the March 21 and June 20, 2006 minutes as presented. Bob Livingston updated the Committee on the meeting with Texas Pension Review Board in Austin on June 22, 2006. 4. Review/recommend City Manager's proposed FY2007 budget - Bob Livingston. Bob Livingston noted the City Council is seeking a recommendation about the proposed budget from the Finance Advisory Committee. He provided the following overview: . Automation, including the Direct Alarm monitoring program, is producing many benefits but also has ongoing costs. . Two new positions (Police Sergeant and Building Division Planning Assistant) will help their respective departments manage their workload. . The Utility Fund budget has projected a deficit but water volume could change that. . The largest single cost category increase is from personnel. Salaries are set in two ways: 1) public safety salaries are driven by an annual survey of seven peer cities; University Park's goal is to be in the top quarter of the survey group. 2) non-public safety salaries are set by the Hay Group compensation study of public and private pay for comparable Hay points. For some employees, merit raises are also available, but many employees are S:\FINANCE\AUSTIN\Finance Adv Cmte\2006\J.Vfinutes FAC 08-1 0-2006. doc 08/31/06 topped out. Regarding attrition, there has been very little; most are from retirements. The City enjoys low turnover and would like to keep it that way. . Health claims have slowed compared to prior years. . The firefighters pension fund issue is moving forward. Conversion to TMRS would cost approximately $150,OOO/year, which could be paid for by deleting the three extra firefighter positions used to offset new firefighters away at training. . Regarding capital project funding, in FY2007 the City will initiate a large volume of projects that will ultimately reduce fund balances. Kent Austin distributed a hand-out to the Committee regarding the description of the Capital Project Funding. . Kent Austin briefly described the effective tax rate calculation and the results. Bob Livingston briefly described the HPISD requests for track upgrade and a School Resource Officer. Russ Coleman voiced support for the School Resource Officer. John Stuart asked who controls the SRO. Bob Livingston noted that any SRO must report directly to the Police Chief, not a committee. Stuart suggested that as a school property tax burden lessened, HPISD should pick up a larger share of the cost. Bob Livingston noted this was a political question to be resolved. Stuart asked for a recommendation from Bob Livingston. Livingston said if this is to be done, it needs to be paid for. Julie Noble asked what kind of presence the City has now [at the high school]. Livingston noted the Police are only there when called. Stuart asked about the best way to structure a recommendation John Atwood moved approval ofa SRO on campus, with City of University Park to pay up to 75% of the cost and best efforts undertaken to obtain cost sharing from other entities. Coleman seconded, and the motion was approved unanimously. Regarding the track upgrade, Livingston said that there is a longstanding agreement between the City and HPISD by which the District pays for track maintenance. A group discussion ensued. Atwood moved that the Finance Advisory Committee defer consideration of the issue until additional details are obtained. Fred Hamm seconded, and the motion was approved unanimously. John Stuart moved to approve the overall budget. John Atwood seconded, and the motion was approved unanimously. 5. Review/recommend City investment policy renewal, investment broker-dealer approval, and City investment officer authorization - Kent Austin Austin noted that the investment policy must be renewed each year by the City Council, following a recommendation from the Finance Advisory Committee. Staff proposes no changes from the current policy. Austin gave the Committee an overview of the Investment Policy. He also said that the Committee should make a recommendation regarding appointment of investment officers and designation of approved broker-dealers. No changes are proposed by staff in either list. Current investment officers are: Kent Austin, Director of Finance; Tom Tvardzik, Controller; and Bob Livingston, City Manager. Broker-dealers include: A.G. Edwards; BOSC, Deutsche Bank Alex.Brown; First Southwest Company; First Tennessee; Merrill Lynch; and Wells Fargo. John Stuart amended the vote to include approval of the authorized investment officers and broker-dealers. Committee members S:\FINANCE\AUSTIN\Finance Adv Cmte\2006\J.Vfinutes FAC 08-1 0-2006. doc 08/31/06 2 Todd Baird and Brad Thompson, both of whom work for Merrill Lynch, abstained from the vote. John Atwood moved approval of the Investment Policy, the investment officers, and the broker-dealers. Julie Noble seconded, and the motion was approved unanimously. 6. Update: a. City Hall project - Bob Livingston Bob Livingston updated the Committee on the City Hall Project. Bid packages for the building expansion and renovation were opened August 8 and are being evaluated. The box culvert contractor is nearing completion and has begun installing grade beams in preparation for the new part of the building. b. FY2005 audit management letter comments from Weaver & Tidwell, LLP.-Tom Tvardzik Tom Tvardzik updated the Committee on the City's first year with Weaver & Tidwell as auditors. Of the four Management Letter comments, three were advisory and addressed in the CAFR notes, and the fourth recommended a minor change in how items like court costs were accounted for. 7. New business - John Stuart There was no new business. 8. Reminder of next meeting date -- John Stuart The Committee's next meeting will be Thursday, October 19,2006 at 7:30a.m. 9. Adjourn - John Stuart The meeting was adjourned at 9:11 a.m. John Stuart, Chairman Kent Austin, Director of Finance S:\FINANCE\AUSTIN\Finance Adv Cmte\2006\J.Vfinutes FAC 08-1 0-2006. doc 08/31/06 3 Investment Policy Effective September 5, 2006 City of University Park, Texas Citv of Universitv Park. Texas - Investment Policv CONTENTS Preface....................................................................................................................... .. iv 1. PURPOSE 1. Authorization....................................................................................................l 2. Goal.................................................................................................................. 1 3. Scope................................................................................................................l 4. Review and Amendment....................................................................................l 2. INVESTMENT OBJECTIVES 1. Preservation and Safety of Principal...................................................................2 2. Maintenance of Adequate Liquidity....................................................................2 3. Return on Investments.......................................................................................2 4. Pmdence and Ethical Standards......................................................................... 3 3. INVESTMENT STRATEGY STATEMENT 1. Operating Funds................................................................................................ 4 2. Bond Debt Service Funds..................................................................................4 3. Bond Reserve Funds.......................................................................................... 4 4. Capital Projects Funds....................................................................................... 5 4. SPECIFIC INVESTMENT POLICIES 1. Eligible Investments........................................................................................... 6 1. Obligations of the United States ................................................................6 2. Obligations of the State of Texas............................................................... 6 3. Agencies of the United States and State of Texas...................................... 6 4. Obligations of other States, Counties, Cities.............................................. 6 5. Direct Repurchase Agreements................................................................. 6 6. Certificates of Deposit.............................................................................. 6 7. Share Certificates of state and federal Credit Unions................................. 7 8. Money Market Mutual Funds.................................................................... 7 9. Local Government Investment Pools......................................................... 7 2. Ensuring Safety of Principal................................................................................ 8 1. Protection of Principal.............................................................................. 8 1. Approved Broker/Dealers/Financial Institutions/Depositories.............. 8 2. Master Repurchase Agreement............................................................ 9 3. Collateralization.................................................................................. 9 Citv of Universitv Park. Texas - Investment Policv 1. Allowable CollateraL.................................................................. 10 1. Certificates of Deposit........................................................ 10 2. Repurchase Agreements......................................................l 0 2. Collateral Levels........................................................................ 10 1. Certificates of Deposit........................................................ 10 2. Repurchase Agreements...................................................... 11 3. Monitoring Collateral Adequacy................................................. 11 1. Certificates of Deposit........................................................ 11 2. Repurchase Agreements...................................................... 11 4. Margin Calls .............................................................................. 11 1. Certificates of Deposit....................................................... .11 2. Repurchase Agreements...................................................... 11 5. Collateral Substitution .............................................................. 12 6. Collateral Reductions .............................................................. 12 4. Portfolio Diversification.................................................................... 12 1. Bond Proceeds........................................................................... 13 5. Limiting Maturity.............................................................................. 13 1. Operating Funds........................................................................ .13 2. Bond Proceeds, Bond Reserves, Debt Service Funds.................. 13 2. Safekeeping.............................................................................................. 14 1. Safekeeping Agreement..................................................................... 14 2. Safekeeping of Certificate of Deposit Collateral................................. 14 3. Safekeeping of Repurchase Agreement Collateral.............................. 14 3. Ensuring Liquidity........................................................................................... 14 4. Achieving Investment Return Objectives.......................................................... 15 1. Securities Swaps..................................................................................... .15 2. Competitive Bidding................................................................................. 15 3. Methods of Monitoring Market Price........................................................ 15 4. Benchmark Rate of Return ....................................................................... 16 5. Responsibility and Controls.............................................................................. 16 1. Authority to Invest................................................................................... 16 2. Bonding requirements/Standard of care.................................................... 16 3. Establishment of Internal Controls............................................................ 17 4. Standard of Ethics.................................................................................... 17 5. Training and Education............................................................................. 17 6. Investment Committee.............................................................................. 18 6. Reporting........................................................................................................ 18 7. Compliance Audit............................................................................................ 19 8. Certification..................................................................................................... 19 5. ADOPTING CLAUSE............................................................................................. 20 ii