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CP 2018-10-23City Council City of Coppell, Texas Meeting Agenda 255 E. Parkway Boulevard Coppell, Texas 75019-9478 Council Chambers5:30 PMTuesday, October 23, 2018 KAREN HUNT CLIFF LONG Mayor Mayor Pro Tem BRIANNA HINOJOSA-SMITH NANCY YINGLING Place 2 Place 5 WES MAYS BIJU MATHEW Place 3 Place 6 GARY RODEN MARK HILL Place 4 Place 7 MIKE LAND City Manager Notice is hereby given that the City Council of the City of Coppell, Texas will meet in Regular Called Session at 5:30 p.m. for Executive Session, Work Session will follow immediately thereafter, and Regular Session will begin at 7:30 p.m., to be held at Town Center, 255 E. Parkway Boulevard, Coppell, Texas. As authorized by Section 551.071(2) of the Texas Government Code, this meeting may be convened into closed Executive Session for the purpose of seeking confidential legal advice from the City Attorney on any agenda item listed herein. The City of Coppell reserves the right to reconvene, recess or realign the Work Session or called Executive Session or order of business at any time prior to adjournment. The purpose of the meeting is to consider the following items: 1.Call to Order 2.Executive Session (Closed to the Public) 1st Floor Conference Room Section 551.087, Texas Government Code - Economic Development Negotiations. Discussion regarding economic development prospects north of Airline and west of Denton Tap. 3.Work Session (Open to the Public) 1st Floor Conference Room Page 1 City of Coppell, Texas Printed on 10/19/2018 October 23, 2018City Council Meeting Agenda A.Discussion regarding the upcoming 86th Regular Legislative Agenda. B.Discussion regarding Celebrate Coppell Plans for 2019. C.Discussion regarding the Rolling Oaks Memorial Center Expansion Project. D.Discussion regarding City Manager Project Updates. E.Discussion of Agenda Items. 2019 Legislative Agenda Memo.pdf 2019 Legislative Agenda Talking Points.pdf Celebrate 2019 Memo.pdf ROMC Expansion Memo.pdf Quarterly Project Update.pdf Attachments: Regular Session (Open to the Public) 4.Invocation 7:30 p.m. 5.Pledge of Allegiance 6.Consider approval of a proclamation naming October 23, 2018, as “Arbor Day;” and authorizing the Mayor to sign. Proclamation.pdfAttachments: 7.Consider approval of a proclamation naming the week of November 5-9, 2018, as “Municipal Court Week,” and authorizing the Mayor to sign. 2018_MCW_Proclamation.pdfAttachments: 8.Consider approval of a proclamation naming November 24, 2018, as “Small Business Saturday;” and authorizing the Mayor to sign. Coppell Small Business 2018 Proclamation.pdfAttachments: 9.Report by the Coppell Farmers’ Market and Community Garden. 10.Citizens’ Appearance 11.Consent Agenda A.Consider approval of the minutes: October 9, 2018. CM 2018-10-09.pdfAttachments: B.Consider approval of an Agreement with Marathon Health for Near-Site Health and Wellness Clinic services for a three (3) year period with the option to renew for two additional, one year periods; in the amount of $200,173 as budgeted; and authorizing the City Manager to execute all necessary paperwork. Page 2 City of Coppell, Texas Printed on 10/19/2018 October 23, 2018City Council Meeting Agenda Marathon Memo.pdf Marathon Agreement.pdf Attachments: C.Consider approval of the Coppell Community Garden Management Agreement, as budgeted; and authorizing the City Manager to sign the necessary documents. Memo.pdf Agreement.pdf Attachments: D.Consider approval of award of a professional services agreement with MKEC Engineering, Inc., in the amount of $591,580.00; as provided for in the bond proceeds; to develop plans and specifications for the Rolling Oaks Memorial Center Expansion Project; and authorizing the City Manager to sign all necessary documents. Memo.pdf Agreement.pdf Site Plan.pdf Attachments: E.Consider approval of a contract with Kleinfelder, Inc. to provide materials engineering and testing services for the Coppell Arts Center construction project, in an amount of $93,275.00, as provided for in the bond proceeds; and authorize the City Manager to sign all necessary documents. 1 Art Center-Kleinfelder Contract Memo.pdf 2 Kleinfelder Agreement.pdf Attachments: F.Consider approval of award RFB# Q-1019-02 for the Fire Department clothing contracts with Five Star Embroidery and Gall’s, with an annual purchase amount of $75,355.00; as budgeted; and authorizing the City Manager to sign. Staff Memo-FD Clothing Contracts.pdf 2018 RFB Fire Department Clothing Contract.pdf Total Vendor Amounts per Specs.pdf Attachments: End of Consent Agenda 12.Consider approval of a Resolution approving a letter of support for the creation of a Foreign Trade Zone to be located at 220 N. Freeport Parkway in Coppell, Texas, and authorizing the Mayor to sign. Norwex FTZ 2018 - Resolution Memo.pdf Norwex FTZ 2018 - Letter.pdf Attachments: 13.Report on the Water and Sewer Fund and Advanced Water Meter Project Update. Water Sewer Report and Meter Project Update.pdfAttachments: Page 3 City of Coppell, Texas Printed on 10/19/2018 October 23, 2018City Council Meeting Agenda 14.City Manager Reports - Project Updates and Future Agendas 15.Mayor and Council Reports Report by Mayor Hunt regarding Fall events. 16.Council Committee Reports concerning items of community involvement with no Council action or deliberation permitted. A.CFBISD/LISD Liaison - Councilmembers Hill and Hinojosa-Smith B.CISD Liaison - Councilmember Hinojosa-Smith C.Coppell Seniors - Councilmembers Roden and Yingling 17.Public Service Announcements concerning items of community interest with no Council action or deliberation permitted. 18.Necessary Action from Executive Session Adjournment ________________________ Karen Selbo Hunt, Mayor CERTIFICATE I certify that the above Notice of Meeting was posted on the bulletin board at the City Hall of the City of Coppell, Texas on this 19th day of October, 2018, at _____________. ______________________________ Christel Pettinos, City Secretary Page 4 City of Coppell, Texas Printed on 10/19/2018 October 23, 2018City Council Meeting Agenda PUBLIC NOTICE - STATEMENT FOR ADA COMPLIANCE AND OPEN CARRY LEGISLATION The City of Coppell acknowledges its responsibility to comply with the Americans With Disabilities Act of 1990. Thus, in order to assist individuals with disabilities who require special services (i.e. sign interpretative services, alternative audio/visual devices, and amanuenses) for participation in or access to the City of Coppell sponsored public programs, services and/or meetings, the City requests that individuals makes requests for these services forty-eight (48) hours ahead of the scheduled program, service, and/or meeting. To make arrangements, contact Kori Konon, ADA Coordinator or other designated official at (972) 462-0022, or (TDD 1-800-RELAY, TX 1-800-735-2989). Pursuant to Section 30.06, Penal Code (trespass by license holder with a concealed handgun), a person licensed under Subchapter H, Chapter 411, Government Code (handgun licensing law), may not enter this property with a concealed handgun. Pursuant to Section 30.07, Penal Code (trespass by license holder with an openly carried handgun), a person licensed under Subchapter H, Chapter 411, Government Code (handgun licensing law), may not enter this property with a handgun that is carried openly. Page 5 City of Coppell, Texas Printed on 10/19/2018 Master City of Coppell, Texas 255 E. Parkway Boulevard Coppell, Texas 75019-9478 File Number: 2018-4221 File ID: Type: Status: 2018-4221 Agenda Item Executive Session 1Version: Reference: In Control: City Council 10/15/2018File Created: Final Action: exec sessionFile Name: Title: Discussion regarding economic development prospects north of Airline and west of Denton Tap. Notes: Agenda Date: 10/23/2018 Agenda Number: Sponsors: Enactment Date: Attachments: Enactment Number: Hearing Date: Contact: Effective Date: Drafter: History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 10/23/2018City Council Text of Legislative File 2018-4221 Title Discussion regarding economic development prospects north of Airline and west of Denton Tap. Summary Fiscal Impact: Staff Recommendation: Goal Icon: Page 1City of Coppell, Texas Printed on 10/19/2018 Master Continued (2018-4221) Business Prosperity Page 2City of Coppell, Texas Printed on 10/19/2018 Master City of Coppell, Texas 255 E. Parkway Boulevard Coppell, Texas 75019-9478 File Number: 2018-4230 File ID: Type: Status: 2018-4230 Agenda Item Work Session 1Version: Reference: In Control: City Secretary 10/16/2018File Created: Final Action: Work SessionFile Name: Title: A.Discussion regarding the upcoming 86th Regular Legislative Agenda. B.Discussion regarding Celebrate Coppell Plans for 2019. C.Discussion regarding the Rolling Oaks Memorial Center Expansion Project. D.Discussion regarding City Manager Project Updates. E.Discussion of Agenda Items. Notes: Agenda Date: 10/23/2018 Agenda Number: Sponsors: Enactment Date: 2019 Legislative Agenda Memo.pdf, 2019 Legislative Agenda Talking Points.pdf, Celebrate 2019 Memo.pdf, ROMC Expansion Memo.pdf, Quarterly Project Update.pdf Attachments: Enactment Number: Hearing Date: Contact: Effective Date: Drafter: History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 10/23/2018City Council Text of Legislative File 2018-4230 Title A.Discussion regarding the upcoming 86th Regular Legislative Agenda. B.Discussion regarding Celebrate Coppell Plans for 2019. C.Discussion regarding the Rolling Oaks Memorial Center Expansion Project. D.Discussion regarding City Manager Project Updates. E.Discussion of Agenda Items. Summary Page 1City of Coppell, Texas Printed on 10/19/2018 Master Continued (2018-4230) Fiscal Impact: Staff Recommendation: Goal Icon: Sustainable City Government Business Prosperity Community Wellness and Enrichment Sense of Community Special Place to Live Page 2City of Coppell, Texas Printed on 10/19/2018 MEMORANDUM To: Mayor and City Council From: Mike Land, City Manager Date: October 23, 2018 Re: Draft 2019 Legislative Priorities Introduction: Council has discussed various subjects to be included in the 2019 Legislative Priorities document to be used during the upcoming legislative session. A copy of the 2017 document is attached for review. Analysis: Changes from the previous legislative agenda include the recognition of changes primarily at the federal level regarding the recent South Dakota vs Wayfair on sales tax, and the repeal of net neutrality by the FCC. With the presentation by Fred Hill and Dan Shelly Tuesday night during the work session, the Council may choose to modify its previously adopted legislative priorities to include or delete certain aspects of it. The strike through sections in the attached 2016 document reflect the recent Supreme Court ruling on collection of sales tax over the internet, and net neutrality laws recently passed by the federal government. I have received a couple of comments in advance of the discussion regarding potential subject matters. There include drones and automated vehicle issues. Staff is requesting that Council provide direction regarding the development of a final 2019 Legislative Priorities list. Once Council has provided its input, staff will finalize the document for Council’s adoption on Tuesday, November 13th during the regularly scheduled City Council meeting. 1 CITY OF COPPELL LEGISLATIVE PRIORITIES 2019 With Talking Points Local Control – The City of Coppell expressly opposes any measures that would limit, reduce, or remove the local control that municipalities have today regarding their respective abilities to govern, finance, or otherwise make decisions on behalf of the communities we serve. It is often said that the best government is that which is closest to the people. There is no level of government effort closer to the public than locally elected officials who represent municipalities and other local political subdivisions. What works for one municipality does not necessarily work in another. The locally elected mayors and city council members are best suited to make decisions on behalf of their respective communities. 1. Preemption of city regulation on numerous items is a red herring argument. 2. Cities have and do regulate many things that are municipal and specific to their respective community’s culture and desire. 3. Cities have not over-reached to regulate things they were not authorized to do. 4. When proven otherwise, regulation is overturned without the need for bad legislation. 5. The “liberty” argument is hollow, particularly when voters approve measures they believe are in their best interest. 6. Are voters capable of speaking for themselves or not? 7. Locally elected representatives know best what their respective communities desire. 8. Local decisions should be left to local representatives. 9. Get this one thing right and many of the other issues go away. Property Tax Caps– The City of Coppell opposes all efforts to implement ad valorem property tax caps. The well documented and undeniable property tax inequities that occur because of these types of measures alone should be reason enough to oppose this type of legislation. In addition, these types of measures that have been adopted in other states have severely limited the ability of municipalities and counties to maintain infrastructure, programs and services, the very things that the public expects from its government. Property tax caps have known unintended consequences that result in major inequities over time regarding the property taxes paid by different individuals in similarly situated homes. 1. Legislation already exists that empowers the citizens to limit the growth in taxes through time-tested truth-in-taxation and effective tax rate laws. 2. While nobody really likes property taxes, much of the tax revenue in growing and mature communities is used to operate and maintain facilities, roads, parks and services that were previously voter approved – it does no good to build the fire station and not staff it, no good to build the library and not equip it. 2 3. At the end of the day, locally elected Mayors and City Council Members know what is best for their respective communities. 4. Cities and counties are not the reason why property taxes are high in Texas. The reason is the WAY we fund schools. Cities and counties are about 20% each and the schools are approximately 60% depending upon where you live. Revenue Caps – The City of Coppell opposes any legislation or attempt to alter the manner in which municipalities in the State of Texas currently generate revenues or to require voter approval of revenue increases. Voter approval of the budget actions of the Mayor and City Council is accomplished each time a member of the Council seeks re-election. The above discussion regarding how this type of measure limits the ability to maintain needed infrastructure, programs and services applies to the issue. 1. Texas municipalities are already a major source of funding for the state. Cities and counties receive virtually no state funding. Texas is one of only two states that treats cities and counties in this manner. 2. Cities and counties are the economic generators for the state and if their ability to raise local revenue is capped they will not be able to offer tax abatements to attract new businesses into the state. When that happens, the Texas economy will begin to decline, and we will be just like every other state in this country. 3. Leave our revenues alone; we do not want to find ourselves in the same position as independent school districts in our state, that being underfunded. 4. The growth of revenues other than property taxes provides the opportunity to keep property taxes from rising. 5. Simple formulas that cap revenue growth on inflation and population growth do not work. The implementation of a major program, such as a new recreation facility, fire station, library, etc, often are much more expensive than the revenue growth from one year would fund based on the previous year’s population growth and inflation. 6. Any bill requiring voter approval of an increased level of revenue is fraught with problems due to the budget adoption cycle for Texas municipalities and the now limited number of dates that a municipality can hold an election. 7. At the end of the day any discussion regarding the belief that overall taxation in Texas is too high is failing to recognize that we have no income tax, something that we all agree is a bad addition to the tax revenue tool chest. Texas in fact has the 6th lowest overall tax burden in the entire country. 8. The Lieutenant Governor says its property tax reform. In truth, it would save the average homeowner about $2.00 a month. 9. The problem is SCHOOL TAXES. They are about 54% of a tax bill and if you are Chapter 41 school district like CISD local taxpayers send money to the State. The State has historically underfunded schools and they are trying to divert the attention from the real problem and make it someone else’s. 3 10. Not only would a lower rollback rate not produce significant property tax relief, the cumulative effect would be to reduce funding for everything the City provides. Expenditure Limitations – The City of Coppell opposes any legislation that would limit the elected Mayors and City Councils of Texas municipalities from adopting budgets that they deem appropriate for their respective communities or that would require voter approval for increases in expenditures. The City of Coppell employs a very open budgeting process during which there are multiple opportunities for the citizens to participate. Texas citizens are protected by the current truth-in- taxation and tax rate roll-back provisions. Once again, voter approval of the actions of the Mayor and City Council is accomplished each time they seek re-election. 1. Whenever the state passes along a mandate it causes local property taxes to go up. That is why the state per capita tax burden is so low. It is because the state passes along so much of the burden to the local governments. 2. Communities should be left to decide for themselves the level of funding they deem appropriate and they do this by participating in community visioning processes, budget processes, voting on capital improvements 3. Formulas that allow for the growth in debt service funding but not operations and maintenance funding to requisite levels to program and maintain the capital improvements are counterintuitive. Once again, it does no good to build it, even if voters approve if the revenues that are necessary to operate and maintain the improvement are not available. 4. Any bill requiring voter approval of an increased level of expenditure is fraught with problems due to the budget adoption cycle for Texas municipalities and the now limited number of dates that a municipality can hold an election. Sales Tax Sourcing Legislation – The City of Coppell opposes any further changes in the sourcing of sales tax remittance from the current origin of sale method to any method that would include destination as the manner in which sales tax remittance is calculated. The City of Coppell participated in a compromise position developed by several cities in a previous legislative session that was ultimately adopted by the legislature regarding storefront sales verses warehouse sales. The City of Coppell has long had an economic development policy designed to attract business- to-business and warehouse users. The shift from origin to destination-based sales tax sourcing would result in the loss of millions of dollars in revenue annually from Coppell and send those dollars to municipalities that put forth no effort in the support of the very business that generated the tax. Several cities on both sides of this issue proposed compromise language during a previous legislative session that protects the business-to-business sales tax that is important to cities situated as we are while also protecting the sales tax generated at traditional storefronts that is important to other cities. This language was ultimately adopted by the legislature. This is a very confusing issue that potentially could lead to many unintended consequences. 4 Most cities do not know what will actually happen to them if either sales tax sourcing in Texas is changed to destination-based from origin-based or the national Streamline Sales Tax Initiative is adopted. Streamline Sales Tax Initiative only makes sense if the United States Senate and House of Representatives actually pass legislation that dramatically alters the way in which internet sales are taxes. Do you really believe that any of those elected officials want to be known as the one’s that decided to “tax the internet.” In fact, they have been much more likely over the years to place a much longer-term moratorium on taxing the internet. Texas has long been an origin-based sales tax state. Cities have intentionally designed their economic development, community development, and other programs following current law. 1. Many communities, Coppell included, have revenue bond indebtedness that relies on current law and resulting revenues to make the debt service payments. The move to destination-based sales tax collection would devastate some and certainly harm all such cities. 2. The City of Coppell stands to lose between $4,000,000 and $9,000,000 annually if any of the changes are made as currently proposed. Streamline Sales Tax Initiative - The City of Coppell opposes any attempt to adopt the Streamlined Sales Tax (SST) measure as has been discussed in past sessions unless the State of Texas maintains origin sourcing. The potential revenue the state would receive should Congress choose to tax the internet fully is just that, potential revenue. It remains to be seen whether the elected members of the House of Representatives will pass companion legislation to the Marketplace Fairness Act, legislation that is more favorable to origin-based sales tax states like Texas that has already been passed by the senate or offer different legislation that would enable full sales taxation of internet sales. Without that action, the state will not have access to appreciably more revenue from this sales tax source. Changing the sourcing laws prematurely in expectation of such a move at the federal level will only redistribute sales tax revenues from one Texas city to another. The compromise on retail storefront sourcing that was enacted several years ago should be given time to work. Before any additional measure are considered, a formal and thorough impact analysis should be conducted that fully discloses the impact that a broader SST adoption would have on the municipalities and other taxing jurisdictions, such as transit agencies. We have estimated that up to 20% of total General Fund and other revenues would be lost if a more comprehensive SST adoption like what has been discussed in recent years were to pass. 1. The State of Texas should pass legislations that allows municipalities to take advantage of the South Dakota vs Wayfair which requires sales tax be collected for online purchases. 2. Any legislation considered must keep Texas sales tax point of origin based. 5 3. See talking points above regarding sales tax sourcing. Transportation – The City of Coppell supports the Regional Transportation Council’s legislative agenda. Making real, meaningful progress on transportation initiatives is vital as our state continues to grow rapidly. More specifically, the DFW region continues to grow at a rate that is simply overwhelming the transportation system. The building of additional highway capacity is essential if the region is to continue to thrive as a very important economic engine for the entire State of Texas. Mass transit via rail must also become a reality in a much larger scale than currently exists as the continuation of sprawl becomes at some point unsustainable. This issue should be near the top of the priority list of items the requiring legislative attention. 1. The RTC and Rail North Texas initiatives are vital if the region is to maintain the economic generator status that the state needs from the north Texas area. 2. State funding for transportation projects in the Dallas/Ft. Worth area is vital. 3. Ensuring TxDot and NTTA perform as expected is important. Make them keep their promises. 4. Coppell supports regional rail initiatives, including the Cotton Belt DART line. 5. Fund projects with dollars as first intended. Do not co-mingle funds from one TxDot district with another unless the various stakeholders agree. State Water Resources – The City of Coppell supports efforts to ensure a safe and dependable water supply for years to come. This is one of the most important issues for the legislature to resolve. Anticipated growth will certainly challenge the adequacy of current water resources. The City of Coppell opposes additional tap fees that would be collected by municipalities to be forwarded to the state as additional state revenue without providing a direct benefit to the citizens of the municipality in which the fee was collected. 1. This item SHOULD be on the agenda 2. Instead the legislature is worrying about issues of local control that are not broken 3. The challenges facing Texas regarding future water needs are basic supply vs need 4. The work done in previous sessions did not actually fund any water supply or infrastructure Education Funding – The City of Coppell supports efforts that would more adequately fund education from state revenue funds that would also decrease the amount of recapture currently required of districts such as the Coppell Independent School District. The percent of total state funding per pupil for public education has been continually decreasing. The legislature should turn attention to developing measures that would adequately fund education in our state, or at least fund education at historic levels. 1. While not a municipal issue on its face, the continued underfunding of public education is unacceptable. 6 2. The voucher issue takes even more money from public education under the guise of making it possible for the average citizen to choose private schools when the average person cannot afford private schools even with the voucher payment. 3. School choice wherein parents could choose to send their children to any school of their choice would over-run quality districts from a classroom space perspective while the State is funding an even less percentage of the total cost for those quality district to remain such. 4. Additional state funding for public education is necessary if true property tax relief is to be seen by property owners in Texas. 5. The state funding as a percent per pupil of the total continues to decline noticeably even though public education funding is one of 4 or 5 major issues the state should be doing. Collective Bargaining – Oppose all efforts to mandate collective bargaining of any segment of municipal employees, be they public safety or otherwise. A “one size fits all” approach to labor management does not work. There is little doubt that the public safety and general quality of life our citizens enjoy will be harmed rather than enhanced by any mandated collective bargaining as municipalities will be forced to cut services, potentially even public safety services, to cover the expected increases in costs that are always associated with the collective bargaining process and the resulting more expensive labor agreements. While our community wholeheartedly supports our public safety efforts, our citizens also enjoy the quality of life offerings that make our community what it is today. Forcing more and more expenditures to public safety efforts reduces the ability to maintain the overall quality of life our citizens now enjoy and demand. 1. We realize this will most likely be a mandate from the federal government, the arm of government most removed from the day-to-day lives of our citizens. 2. One size simply does not fit all. 3. There is no empirical evidence that suggests that the public is any better served by public safety organizations that have collective bargaining 4. There is plenty of empirical evidence that shows the costs of providing these services increases, often dramatically, when collective bargaining is imposed. 5. The increase in cost to provide the public safety services is almost always harms a municipalities ability to maintain other services at desired levels. 6. The State of Texas already has legislation that allows a community to adopt collective bargaining if the citizens want to do so. 7. The State of Texas should file suit against the federal government if they pass mandatory collective bargaining legislation. Alcoholic Beverage Sales – Oppose any further loosening of the restrictions regarding the proximity to schools, parks, and churches where alcoholic beverages can be sold. 7 The community of Coppell has been built with families in mind. Our school system is one of the best in Texas. We have a very strong faith-based community and our municipal programs offer great kid-centric services to our families. Our ability to ensure safe and appropriate environments for these segments of our community is vital. 1. Leave these types of issues to the locally elected Councils to decide. 2. Current rules seem to be serving well. Oil and Gas Wells – Support any efforts that would provide municipalities more ability to control the site of oil and gas wells as they relate to residential developments, any occupied buildings, and environmental sensitive areas such as creeks, rivers and drainage ways. The proliferation of gas wells in the north Texas area has created concern regarding their proximity to residences, schools, parks, other occupied buildings and environmentally sensitive areas. The City of Coppell would support the expansion of our ability to apply greater distance requirements, noise mitigation standards and other control measures deemed necessary to protect our citizens from the problems caused by the gas exploration and production process. The associated air quality that has been well documented is also very important. 1. The exploration of the Barnett Shale in north Texas has led to much discussion regarding how communities can protect their citizens and business communities from the harmful effects of the drilling and operation of gas wells. 2. The rights of these companies to locate pipelines virtually any place they please is a frightening proposition. 3. Texas cities are to some degree severely hampered to regulate these activities due to current state law. 4. It appears that urban drilling was not contemplated when the legislation was passed. If it was contemplated, it was not done so effectively. Red Light Cameras – Continue to support the current legislation allowing a municipality to operate red light traffic cameras for the purposes of enhancing public safety at major intersections. The city of Coppell also encourages the state to utilize the funding it receives from Red Light Camera citations for the purposes for which it was collected by the state, that being Trauma funding. Otherwise, the state should cease collecting revenue from cities generated by this mechanism. 1. Despite testimony to the contrary, data does indicate that the number and severity of vehicle accidents taking place in intersections equipped with cameras has decreased. 2. This is not a revenue generator for Coppell. Year in, year out, total traffic citation revenue is very consistent in the 3%-4% range of total general fund revenues. 3. This has not changed substantially since red light cameras have been implemented. 4. Approximately 6% of violations are appealed. 5. Approximately 70% of appeals are upheld as valid violations. 8 6. Approximately 54% of all reviewed violations are eventually cited. The other 46% are not cited as being determined to be not an actual violation. “Dark Store” Taxation – Big box stores have been challenging property tax assessments based on the “true cash value” which is significantly below the assessed value. Their argument is that the building was built for a sole function and has little value for other purposes. This is detrimental to local communities as well as to the State of Texas. We urge the state to expand the definition of special purpose properties to include retail buildings of greater than 50,000 sq. ft. to require assessments of value using the “cost method” not “comparable”. If a store is 10 years or less in age, “the sale of a comparable property may not be used in determining the assessment of the comparable property if it has been vacant for more than one year, has significant restriction on its use, was sold and is no longer used for its original purpose, or was not sold in an arm’s length transaction.” 1. This is another ploy used by large commercial property owners intending to lower the property tax on their respective properties. 2. Granting this type of evaluation model would severely lower taxable values which in turn would harm not only local taxing entities but also the state due to the school funding implications. 3. Various construction techniques can be applied to large commercial properties to subdivide a once large building into more than one commercial use. 4. The use of comparable properties should not be used to determine the taxable value given the very arguments being used by the industry; ie: their uses are so specialized Net neutrality – Internet service providers and governments regulating the Internet should treat all data on the Internet the same, not discriminating or charging differentially by user, content, website, platform, application, type of attached equipment, or mode of communication. Internet traffic includes all of the different messages, files and data sent over the Internet, including, for example, emails, digital audio files, digital video files, etc. Service network neutrality is the adherence to the paradigm that operation of a service at a certain layer is not influenced by any data other than the data interpreted at that layer, and in accordance with the protocol specification for that layer. 1. The rapid innovation that brought us e-mail, the World Wide Web, interactive online services, and e-commerce depends on an Internet that provides reliable and effective transport for all types of traffic. This critical innovation at the edges of the network will be stifled if network providers are allowed to block or degrade traffic in the middle. 2. The Internet was designed to be open and available to everyone, which is why it has been so powerful and successful. The Internet was not intended to be under the control of any one party; its value is that it can facilitate communications and the free flow of information around the world. "Tollbooths and gatekeepers are the exact opposite of what the Internet is all about," said Michael J. Copps, a Democratic commissioner at the Federal Communications Commission. "Down that route consumers can count on paying more and getting less — less content, fewer services 9 and reduced innovation." 3. Cable and telephone companies have the ability and incentive to skew Internet use toward their own services. They are supposed to be transparent carriers of broadband services, as noted by Vint Cerf in a letter to Congressmen Joe Barton and John Dingell on November 8, 2005: “Telephone companies cannot tell consumers who they can call; network operators should not dictate what people can do online.” Recently, however, a telephone company blocked its broadband customers from using VoIP telephone service because it could take revenue away from the company’s phone services; b. a cable company ordered consumers working from home to stop using their broadband connection to log into their employer’s virtual private network and tried to sell them a higher-priced alternative service; c. an Internet provider in Canada blocked access to a Web site run by the labor union involved in a dispute with the ISP; and d. the CEO of SBC told Business Week that companies such as Google, Yahoo, and Vonage would not be permitted to connect to SBC broadband customers without additional compensation to SBC.8 1 MEMORANDUM To: Mayor and City Council From: Brad Reid, Director of Parks and Recreation Date: October 23, 2018 Reference: Presentation and discussion related to an update on the Celebrate Coppell 2019 event 2030: Successful Community Events and Festivals Excellent City Services with High Level of Customer Satisfaction Introduction: On Saturday, July 1 st, 2017, the Parks and Recreation Department held Celebrate Coppell in the newly-renovated Andrew Brown East Park. This event was the largest event ever held in the City with a national-level band, large-scale concession sales, and an intentionally curated, cohesive “look and feel”. The response from this event was overwhelmingly positive. At approximately 15,000 attendees, this was the largest turnout the City had ever experienced for an Independence Day celebration. Each year, our goal is to build on the success and momentum of the previous year. Held on Saturday, June 30th, 2018, Celebrate Coppell 2018 echoed the success of 2017, with record attendance levels estimated to have surpassed totals for the previous year. The proposed date for Celebrate Coppell 2019 is Saturday, June 29th. Analysis: We feel the continued success of Celebrate Coppell is reliant on a number of factors, including: • Lack of competition from surrounding communities. Events compete for both attendees and resources. Most events in the DFW area are held on July 3rd and 4th. In 2018, Coppell only competed with one other local Independence Day event. • Availability of r esources to keep the look and feel of Celebrate Coppell, including performers, vendors, concessionaires, stage, tents, staff and volunteers. • Most importantly, we believe the high attendance seen in the last two years was due to the fact that it occurred on a Saturday. By hosting our event on Saturday, we are able to be more inclusive to all residents and allow a larger segment of the Coppell community to attend. 2 Legal Review: Agenda item does not require legal review. Fiscal Impact: No fiscal impact will result from this item. Recommendation: No council action is required on this item at this time. 1 MEMORANDUM To: Mayor and City Council From: Brad Reid, Parks and Recreation Director Date: October 23, 2018 Reference: Consider approval of award of a professional services agreement with MKEC Engineering, Inc., in the amount of $591,580.00, to develop plans and specifications for the Rolling Oaks Memorial Center Expansion Project and authorizing the City manager to sign all necessary documents. 2030: Community Wellness and Enrichment: Excellent and Well-Maintained City Infrastructure and Facilities Introduction: The City Council approved the Rolling Oaks Memorial Cemetery Master Plan in the May 9, 2017 meeting. The February 27, 2018 Council meeting included an update and discussion on the master plan to establish the options and features to be included in the phase II expansion. The next step in the process is the award of a professional services contr act with MKEC Engineering, Inc., to develop plans and specifications for this project. MKEC has partnered with Tim Hansen, ASLA, Landscape Architect who together have provided services to over 250 cemeteries, many of them municipal in the past 30 years. They have established a construction and development relationship with Service Corporation International (SCI), world’s largest funeral and cemetery corporation. Their experience with SCI has provided them with insights into operations, policies, and standards that few consultants have. SCI is the parent company of the Rolling Oaks Funeral Home. Analysis: The current capacity of the developed property is 3,937 adult single depth burials, 268 infant spaces and 485 columbarium niches for a total phase one capacity of approximately 4,700 spaces (double depth burials were approved as an option in 2015). Fifty two percent of the total available burial rights is sold to date. The average number of spaces sold in 2014 and 2015 is 7 17. If this trend continues the remaining 2440 burial rights would be sold by the year 2020. However, the sold properties and niches have been what families have considered the most desirable property options that the Rolling Oaks Memorial Center offers. The remaining ground spaces are in locations near Freeport Pkwy. or distant 2 from trees and other site amenities making them “remaining” choice properties. Columbarium niches are structured 10 levels high and either single or double space. The middle levels and double niches are selling first, once again leaving fewer preferred options for future families. Numerous families, denominational and cultural groups have expressed an interest in burial options that are not currently available at ROMC including: • Private family estates • Family mausoleums • Community mausoleums • Denominational and nondenominational gardens • Cultural gardens • Prayer chapel • Statues • Committal chapel • Outdoor cremation niches The revised master plan includes the burial options and amenities that have been identified by the community and that are current industry offerings. The next phase expansion project takes advantage of the existing infrastructure to minimize costs but achieve the goal of adding desired amenities and provides the flexibility to modify gardens to accommodate estates of various configurations. Legal Review: The attached agreement was reviewed and approved by legal counsel. Fiscal Impact: The fiscal impact of this agenda item is $591,580.00 as provided for in the bond proceeds. Recommendation: The Parks and Recreation Department recommends approval of this item. MEMORANDUM To: Mayor and Council From: Mike Land, City Manager Date: October 23, 2018 Reference: Quarterly Project Update During the Council’s recent annual evaluation of the City Manager, one of the items discussed was a desire by the Council to receive periodic updates on the variety of projects that are occurring throughout the City and in various departments. During the work session I will introduce and distribute a Quarterly Project Update. Master City of Coppell, Texas 255 E. Parkway Boulevard Coppell, Texas 75019-9478 File Number: 2018-4237 File ID: Type: Status: 2018-4237 Agenda Item Agenda Ready 1Version: Reference: In Control: Parks and Recreation 10/17/2018File Created: Final Action: Arbor DayFile Name: Title: Consider approval of a proclamation naming October 23, 2018, as “Arbor Day;” and authorizing the Mayor to sign. Notes: Agenda Date: 10/23/2018 Agenda Number: 6. Sponsors: Enactment Date: Proclamation.pdfAttachments: Enactment Number: Hearing Date: Contact: Effective Date: Drafter: History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 10/23/2018City Council Text of Legislative File 2018-4237 Title Consider approval of a proclamation naming October 23, 2018, as “Arbor Day;” and authorizing the Mayor to sign. Summary Fiscal Impact: Staff Recommendation: Approval recommended. Goal Icon: Sustainable City Government Page 1City of Coppell, Texas Printed on 10/19/2018 Master Continued (2018-4237) Business Prosperity Community Wellness and Enrichment Sense of Community Special Place to Live Page 2City of Coppell, Texas Printed on 10/19/2018 PROCLAMATION WHEREAS, Arbor Day, was first observed in 1872 with the planting of more than a million trees in Nebraska; and WHEREAS, 2018 is the 146st anniversary of the holiday and Arbor Day is now observed throughout the nation and the world; and WHEREAS, trees beautify our community, provide habitat for wildlife, and are a source of joy and spiritual renewal wherever they are planted. NOW, THEREFORE, I, Karen Selbo Hunt, Mayor of the City of Coppell, do hereby proclaim October 23, 2018 as "ARBOR DAY" in the City of Coppell, and I urge all citizens to celebrate Arbor Day and support efforts to protect our trees and woodlands, thereby promoting the well-being of the future generations. IN WITNESS THEREOF, I have set my hand and caused the seal of the City of Coppell to be affixed this ______day of October 2018. ________________________ Karen Selbo Hunt, Mayor ATTEST: ____________________________ Christel Pettinos, City Secretary Master City of Coppell, Texas 255 E. Parkway Boulevard Coppell, Texas 75019-9478 File Number: 2018-4223 File ID: Type: Status: 2018-4223 Agenda Item Proclamations 1Version: Reference: In Control: City Secretary 10/16/2018File Created: Final Action: Municipal Court WeekFile Name: Title: Consider approval of a proclamation naming the week of November 5-9, 2018, as “Municipal Court Week,” and authorizing the Mayor to sign. Notes: Agenda Date: 10/23/2018 Agenda Number: 7. Sponsors: Enactment Date: 2018_MCW_Proclamation.pdfAttachments: Enactment Number: Hearing Date: Contact: Effective Date: Drafter: History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 10/23/2018City Council Text of Legislative File 2018-4223 Title Consider approval of a proclamation naming the week of November 5-9, 2018, as “Municipal Court Week,” and authorizing the Mayor to sign. Summary Fiscal Impact: Staff Recommendation: Approval recommended. Goal Icon: Sustainable City Government Business Prosperity Page 1City of Coppell, Texas Printed on 10/19/2018 Master Continued (2018-4223) Community Wellness and Enrichment Sense of Community Special Place to Live Page 2City of Coppell, Texas Printed on 10/19/2018 PROCLAMATION WHEREAS, municipal courts play a significant role in preserving public safety and promoting quality of life in Texas; WHEREAS, state law authorizes a municipality to either appoint or elect a municipal judge for a term of office, the Coppell Municipal Court No. 1 is a state court and its judges are members of the state judiciary; WHEREAS, the procedures for the Coppell Municipal Court No. 1 operations are set forth in the Texas Code of Criminal Procedure and other laws of the State of Texas; WHEREAS, the City of Coppell is committed to the notion that our legal system is based on the principle that an independent, fair, and competent judiciary will interpret and apply the laws that govern us, and that judges and court personnel should comply with the law and act in a manner that promotes public confidence in the integrity and impartiality of the judiciary; WHEREAS, Coppell Municipal Judges are not policy makers for the City of Coppell, but are bound by the law and the Canons of Judicial Conduct and are required to make decisions independent of the governing body of the City Council, city officials, and employees; WHEREAS, the City Council recognizes that the Constitution and laws of the State of Texas contain procedural safeguards in criminal cases for all defendants, including indigent defendants, and supports the Coppell Municipal Court No. 1 in complying with such legal requirements. NOW, THEREFORE, I Karen Selbo Hunt, Mayor of the City of Coppell, do hereby proclaim the week of November 5-9, 2018, as “MUNICIPAL COURT WEEK” In recognition of the fair and impartial justice offered to our citizens by the Municipal Court of Coppell. IN WITNESS THEREOF, I have set my hand and caused the seal of the City of Coppell to be affixed this 23rd day of October 2018. ATTEST: _____________________________ ______________________________ Karen Selbo Hunt, Mayor Christel Pettinos, City Secretary Master City of Coppell, Texas 255 E. Parkway Boulevard Coppell, Texas 75019-9478 File Number: 2018-4227 File ID: Type: Status: 2018-4227 Agenda Item Proclamations 1Version: Reference: In Control: City Secretary 10/16/2018File Created: Final Action: Small Biz ProclamationFile Name: Title: Consider approval of a proclamation naming November 24, 2018, as “Small Business Saturday;” and authorizing the Mayor to sign. Notes: Agenda Date: 10/23/2018 Agenda Number: 8. Sponsors: Enactment Date: Coppell Small Business 2018 Proclamation.pdfAttachments: Enactment Number: Hearing Date: Contact: Effective Date: Drafter: History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 10/23/2018City Council Text of Legislative File 2018-4227 Title Consider approval of a proclamation naming November 24, 2018, as “Small Business Saturday;” and authorizing the Mayor to sign. Summary Fiscal Impact: Staff Recommendation: Approval recommended. Goal Icon: Sustainable City Government Page 1City of Coppell, Texas Printed on 10/19/2018 Master Continued (2018-4227) Business Prosperity Community Wellness and Enrichment Sense of Community Special Place to Live Page 2City of Coppell, Texas Printed on 10/19/2018 PROCLAMATION WHEREAS, Coppell, Texas, celebrates our local small businesses and the contributions they make to our local economy and community; according to the United States Small Business Administration, there are currently 30.2 million small businesses in the United States, they represent 99.7 percent of all businesses with employees in the United States, are responsible for 65.9 percent of net new jobs created from 2000 to 2017; and WHEREAS, small businesses employ 47.5 percent of the employees in the private sector in the United States; and WHEREAS, 90% of consumers in the United States say Small Business Saturday has had a positive impact on their community; and WHEREAS, 89% of consumers who are aware of Small Business Saturday said the day encourages them to Shop Small all year long; and WHEREAS, 73% of consumers who reportedly Shopped Small at independently-owned retailers and restaurants on Small Business Saturday did so with friends or family; and WHEREAS, the most reported reason for consumers aware of the day to shop and dine at small, independently-owned businesses was to support their community (64%); and WHEREAS, the people of Coppell support our local businesses that create jobs, boost our local economy and preserve our communities; and NOW, THEREFORE, I, Karen Selbo Hunt, Mayor of the City of Coppell, do hereby proclaim the Saturday after Thanksgiving, November 24, 2018, as “SMALL BUSINESS SATURDAY” And urge the residents of our community, and communities across the country, to support small businesses and merchants on Small Business Saturday and throughout the year. IN WITNESS THEREOF, I have set my hand and caused the seal of the City of Coppell to be affixed this 23rd day of October 2018. ATTEST: _______________________________________ Karen Selbo Hunt, Mayor ______________________________ Christel Pettinos, City Secretary Master City of Coppell, Texas 255 E. Parkway Boulevard Coppell, Texas 75019-9478 File Number: 2018-4231 File ID: Type: Status: 2018-4231 Agenda Item Agenda Ready 1Version: Reference: In Control: City Secretary 10/16/2018File Created: Final Action: CCG ReportFile Name: Title: Report by the Coppell Farmers’ Market and Community Garden. Notes: Agenda Date: 10/23/2018 Agenda Number: 9. Sponsors: Enactment Date: Attachments: Enactment Number: Hearing Date: Contact: Effective Date: Drafter: History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 10/23/2018City Council Text of Legislative File 2018-4231 Title Report by the Coppell Farmers’ Market and Community Garden. Summary Fiscal Impact: Staff Recommendation: Goal Icon: Sustainable City Government Business Prosperity Community Wellness and Enrichment Page 1City of Coppell, Texas Printed on 10/19/2018 Master Continued (2018-4231) Sense of Community Special Place to Live Page 2City of Coppell, Texas Printed on 10/19/2018 Master City of Coppell, Texas 255 E. Parkway Boulevard Coppell, Texas 75019-9478 File Number: 2018-4224 File ID: Type: Status: 2018-4224 Agenda Item Consent Agenda 1Version: Reference: In Control: City Secretary 10/16/2018File Created: Final Action: MinutesFile Name: Title: Consider approval of the minutes: October 9, 2018. Notes: Agenda Date: 10/23/2018 Agenda Number: A. Sponsors: Enactment Date: CM 2018-10-09.pdfAttachments: Enactment Number: Hearing Date: Contact: Effective Date: Drafter: History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 10/23/2018City Council Text of Legislative File 2018-4224 Title Consider approval of the minutes: October 9, 2018. Summary Fiscal Impact: Staff Recommendation: Approval recommended. Goal Icon: Sustainable City Government Business Prosperity Page 1City of Coppell, Texas Printed on 10/19/2018 Master Continued (2018-4224) Community Wellness and Enrichment Sense of Community Special Place to Live Page 2City of Coppell, Texas Printed on 10/19/2018 255 E. Parkway Boulevard Coppell, Texas 75019-9478 City of Coppell, Texas Minutes City Council 6:30 PM Council ChambersTuesday, October 9, 2018 KAREN HUNT CLIFF LONG Mayor Mayor Pro Tem BRIANNA HINOJOSA-SMITH NANCY YINGLING Place 2 Place 5 WES MAYS BIJU MATHEW Place 3 Place 6 GARY RODEN MARK HILL Place 4 Place 7 MIKE LAND City Manager Cliff Long;Wes Mays;Gary Roden;Nancy Yingling;Biju Mathew and Mark HillPresent6 - Karen Hunt and Brianna Hinojosa-SmithAbsent2 - Also present were City Manager Mike Land, Deputy City Managers Traci Leach and Noel Bernal, Deputy City Secretary Ashley Owens and City Attorney Robert Hager. The City Council of the City of Coppell met in Regular Called Session on Tuesday, October 9, 2018, at 5:30 p.m. in the City Council Chambers of Town Center, 255 Parkway Boulevard, Coppell, Texas. Call to Order1. Mayor Pro Tem Long called the meeting to order, determined that a quorum was present and convened into the Executive Session at 6:30 p.m. Executive Session (Closed to the Public) 1st Floor Conference Room2. Section 551.072, Texas Government Code - Deliberation regarding Real Property. Discussion regarding real property south of Bethel Rd. and west of S. Coppell Rd. Discussed under Executive Session. Page 1City of Coppell, Texas October 9, 2018City Council Minutes Work Session (Open to the Public) 1st Floor Conference Room3. Mayor Pro Tem Long adjourned the Executive Session at 6:42 p.m. and convened into the Work Session. A.Discussion regarding the Citizen Survey. B.Discussion of agenda items. Presented in Work Session. Regular Session Mayor Pro Tem Long adjourned the Work Session at 7:12 p.m. and reconvened into the Regular Session at 7:30 p.m. At 7:21 p.m., Councilmember Brianna Hinojosa-Smith arrived late to the meeting. Cliff Long;Brianna Hinojosa-Smith;Wes Mays;Gary Roden;Nancy Yingling;Biju Mathew and Mark Hill Present 7 - Karen HuntAbsent1 - Invocation 7:30 p.m.4. Pastor Chad Kettler with GracePoint Church gave the Invocation. Pledge of Allegiance5. Mayor Pro Tem Long and the City Council led those present in the Pledge of Allegiance. 6.Consider approval of a proclamation naming the month of October, “National Breast Cancer Awareness Month,” and authorize the Mayor to sign. Mayor Pro Tem Long read the proclamation into the record and presented the same to Pink Soles in Motion. A motion was made by Councilmember Brianna Hinojosa-Smith, seconded by Councilmember Nancy Yingling, that this Agenda Item be approved. The motion passed by an unanimous vote. 7.Consider approval of a proclamation naming the week of October 7-13, 2017 as “Fire Prevention Week,” and authorizing the Mayor to sign. Mayor Pro Tem Long read the proclamation into the record and presented the same to Fire Chief Kevin Richardson and Deputy Chief Tim Oates. A motion was made by Councilmember Nancy Yingling, seconded by Councilmember Mark Hill, that this Agenda Item be approved. The motion passed by an unanimous vote. Citizens’ Appearance8. Mayor Pro Tem Long advised that no one signed up to speak. Consent Agenda9. Page 2City of Coppell, Texas October 9, 2018City Council Minutes A.Consider approval of the minutes: September 25, 2018. A motion was made by Councilmember Gary Roden, seconded by Councilmember Brianna Hinojosa-Smith, that Consent Agenda Items A-F be approved. The motion passed by an unanimous vote. B.Consider approval of an Ordinance for PD-217R3-C, Doggie’s Wonderland, a zoning change from PD-217R2-C (Planned Development District-217 Revision-2-Commercial) to PD-217R3-C (Planned Development District Revision-3-Commercial) to amend and expand the Detail Site Plan to allow the construction of an approximate 4,590 square foot building for a new Doggie’s Wonderland (dog boarding, daycare, grooming services) on Lot 5; convert the existing building into a dog kennel (rescue) and pet wash Lot 4R; and to establish a Concept Plan for future development on Lot 6, for a total of 1.479 acres of land located on the east side of Denton Tap Road, between E. Bethel School Road and Vanbebber Drive, (120 E. Bethel School Road and 400 S. Denton Tap Road), and authorizing the Mayor to sign. A motion was made by Councilmember Gary Roden, seconded by Councilmember Brianna Hinojosa-Smith, that Consent Agenda Items A-F be approved. The motion passed by an unanimous vote. Enactment No: OR 91500-A-730 C.Consider approval of an Ordinance for PD-250R24-H, Coppell Arts Center (Old Town Addition, Lot 1R-1, Block G), a zoning change from PD-250R8-H (Planned Development District- 250 Revision 8 - Historic) to PD-250R24-H (Planned Development District- 250 Revision 24 - Historic) to allow the development of an approximate 32,370 square-foot Coppell Arts Center on 3.044 acres of property located on the south side of Travis Street, east of Hammond Street; and authorizing the Mayor to sign. A motion was made by Councilmember Gary Roden, seconded by Councilmember Brianna Hinojosa-Smith, that Consent Agenda Items A-F be approved. The motion passed by an unanimous vote. Enactment No: OR 91500-A-731 D.Consider approval to award Bid # Q-0918-01 “Residential & Commercial Water Meter Lids and Boxes” to Core and Main LP, in the amount of $271,550.00; and authorizing the City Manager to sign any necessary documents. A motion was made by Councilmember Gary Roden, seconded by Councilmember Brianna Hinojosa-Smith, that Consent Agenda Items A-F be approved. The motion passed by an unanimous vote. E.Consider approval of a Resolution of the City of Coppell, Texas finding that Texas-New Mexico Power Company’s (TNMP) application to Page 3City of Coppell, Texas October 9, 2018City Council Minutes change rates within the City should be denied; finding that the City’s reasonable rate case expenses shall be reimbursed by the Company; finding that the meeting at which this Resolution is passed is open to the public as required by law; requiring notice of this Resolution to the Company and legal counsel; and authorizing the Mayor to sign. A motion was made by Councilmember Gary Roden, seconded by Councilmember Brianna Hinojosa-Smith, that Consent Agenda Items A-F be approved. The motion passed by an unanimous vote. Enactment No: RE 2018-1009.1 F.Consider approval of an Ordinance of the City of Coppell, Texas, amending the Code of Ordinances by repealing Chapter 1 “Administration”, Article 1-14, “Hotel Occupancy Tax” in its entirety, and replacing it with a new chapter 1 “Administration”, article 1-14 ‘Hotel Occupancy Tax; providing for collection; providing for delinquency; providing for audit; providing a repealing clause; providing a severability clause; providing for a savings clause; providing a penalty of fine not to exceed the sum of five hundred ($500.00) for each offense; and providing an effective date. A motion was made by Councilmember Gary Roden, seconded by Councilmember Brianna Hinojosa-Smith, that Consent Agenda Items A-F be approved. The motion passed by an unanimous vote. Enactment No: OR 2018-1503 End of Consent Agenda 10.CONTINUED PUBLIC HEARING: Consider approval of PD-259R-SF-7&9, Blackberry Farm, being a zoning change request from PD-259-SF-7&9 (Planned Development 259-Single Family-7 & 9) to PD-259R-SF-7&9 (Planned Development Revised 259-Single Family-7 & 9), to revise the Detail Site Plan and Conditions, to permit the development of 74 single-family lots and nine (9) common area lots on 54.8 acres of land located on the north side of Sandy Lake Road, approximately 750 feet northeast of Starleaf Road (extended), at the request of Denton Creek Land Company Ltd. and Blackberry Farm Ltd., being represented by L. Lynn Kadleck, Kadleck & Associates. Presentation: Marcie Diamond, Assistant Director of Community Development/Planning, made a presentation to the City Council and reported the applicant has requested to postpone the Agenda Item until November 13, 2018. Mayor Pro Tem Long opened the Public Hearing. A motion was made by Councilmember Wes Mays, seconded by Councilmember Nancy Yingling, to continue the Public Hearing until November Page 4City of Coppell, Texas October 9, 2018City Council Minutes 13, 2018. The motion passed by an unanimous vote. 11.PUBLIC HEARING: Consider approval of PD-285R2-C, Andy’s Frozen Custard, to attach a Detail Site Plan for a 1,160 sq. ft. drive-through and walk up restaurant, with no indoor seating, on 1.21 acres of property located on Sandy Lake Road, west of Denton Tap (180 W. Sandy Lake Road), at the request of LG 214 Woodside Coppell LLC, being represented by Stephen McGuirk, Leon Capital Group. Presentation: Marcie Diamond, Assistant Director of Community Development/Planning, made a presentation to the City Council. Stephen McGuirk, representing the applicant, answered questions of the City Council. Mayor Pro Tem Long opened the Public Hearing and advised that no one signed up to speak. A motion was made by Councilmember Wes Mays, seconded by Councilmember Roden, to close the Public Hearing and approve this Agenda item subject to the following conditions: 1. PD Conditions a. Allowing for glass exceeding 50% of the front façade of the building b. Allowing for the refacing of the existing monument sign which does not meet the current setback requirements c. Allowing for a window sign d. Allowing for a fully shielded indirect facia lighting, if grey/silver in color. e. Approval of a Landscape Plan which provides allows the deficiency in the perimeter landscaping on the east and north property lines to be compensated along the west property line. 2. This property will need to be replatted to provide necessary easements. 3. Additional comments will be generated at the time of Detail Engineering review and Building permit review. 4. Drafting errors/clarifications a. More clearly define the fire lane and relabel to “fire lane/mutual access easement”. b. Rectify landscape calculations discrepancies. c. Verify location of 6 trees along west property line. d. Revise the notation that reads 15’ landscape and sign setback to delete the word “sign”. e. Provide additional specifications on the attached and monument signs in terms of materials, lighting source, etc. f. Delete the utilities and topography from the Site Plan and include all existing and proposed easements. The motion passed by an unanimous vote. 12.PUBLIC HEARING: Consider approval of PD-221R9R2-HC, Homewood Suites, a zoning change request from PD-221R9R-HC (Planned Development-221 Revision 9 Revised-Highway Commercial) to PD-221R9R2-HC (Planned Page 5City of Coppell, Texas October 9, 2018City Council Minutes Development-205 Revision 9 Revision 2 -Highway Commercial), to amend the Planned Development to attach a Detail Site Plan to allow a 129-room suite (residence) hotel on 3.024 acres of property located on Point West Boulevard, approximately 100 feet south of Dividend Drive at the request of Trophy Lodging, LTD, being represented by Travis Bousquet, the Bousquet Group. Presentation: Marcie Diamond, Assistant Director of Community Development/Planning, made a presentation to the City Council. Mayor Pro Tem Long opened the Public Hearing and asked for those who signed up to speak on the item: 1) Schas Naik, 1580 Point West, was against the proposed item due to the previous hotel ordinance. As authorized by Section 551.071(2) of the Texas Government Code, Mayor Pro Tem Long convened into closed Executive Session at 8:42 p.m. to seek consultation from the City Attorney and reconvened into the Regular Session at 8:59 p.m. A motion was made by Councilmember Wes Mays, seconded by Councilmember Roden, to close the Public Hearing and approve this Agenda item subject to the following conditions: 1. This property will need to be replatted to provide necessary easements. 2. Traffic Impact Analysis being submitted prior to submission of a Replat to determine if deceleration lane(s) will be required. 3. Signs to be compliant with the provisions of the Sign Ordinance. 4. Additional comments will be generated at the time of Detail Engineering review and Building permit review. The motion passed by an unanimous vote. 13.PUBLIC HEARING: Consider approval of PD-214R8-C, Arbor Manors Office - 3 Denton Tap, LLC, a zoning change request from PD-214R2-C (Planned Development-214 Revision 2 - Commercial) to attach a Detail Site Plan for a 3,035-square foot building on 0.701 acres of land (Lot 3), located on Denton Tap Road, approximately 400 feet south of W. Sandy Lake Road; at the request of 3 Denton Tap, LLC; being represented by Cates-Clark & Associates, LLC. Presentation: Mary Paron-Boswell, Senior Planner, made a presentation to the City Council. Mayor Pro Tem Long opened the Public Hearing and advised that no one signed up to speak. Daniel Stewart, representing the applicant, answered questions of the City Council. A motion was made by Councilmember Nancy Yingling, seconded by Page 6City of Coppell, Texas October 9, 2018City Council Minutes Councilmember Mark Hill, to close the Public Hearing and approve this Agenda item subject to the following conditions: 1. PD Conditions: a. Photometrics shall comply with City requirements for residential adjacency. b. To allow the landscape calculation to be based on the developable area of the lot. c. To allow the existing parking tree islands along Denton Tap Road to remain as is. d. To allow the existing perimeter landscape strip along Denton Tap Road to remain as is. e. To allow a variable landscape width from 6 to 10 feet along a portion at the rear of the property. f. To allow a 10-foot setback in lieu of the required 30-foot setback on the southern portion of the lot. g. All signage must meet ordinance requirements. h. All mechanical equipment to be screened. i. A Letter of Intent to maintain the screening wall along the common boundary of this property and the adjacent residential neighborhood (Arbor Manors), shall be in place prior to permits being issued for this site. The applicant and residential HOA shall have a document filed at the county indicating the terms and responsibility of each party. 2. There may be additional comments at the time of Building Permit and Detail Engineering Review. 3. Replat of Lot 3 to add easements must be approved and filed with Dallas County prior to construction. 4. Removal of the existing access easement that currently runs through a portion of the building. The motion passed by an unanimous vote. 14.PUBLIC HEARING: Consider approval of PD-205R3-HC, Vista Ridge Addition, Lot 3R, Block D (The Plaza), a zoning change request from PD-205R2-HC (Planned Development-205 Revision 2-Highway Commercial) to PD-205R3-HC (Planned Development-205 Revision 3-Highway Commercial), to amend the Planned Development to attach a Detail Site Plan to allow a 6,520-square-foot medical building on 1.39 acres of property located north of the northwest corner of S.H. 121 and Plaza Blvd, at the request of George Mitchell (Questcare Clinic) represented by Elaine Pickering, Baird Hampton & Brown, Inc. Presentation: Mary Paron-Boswell, Senior Planner, made a presentation to the City Council. Mayor Pro Tem Long opened the Public Hearing and advised that no one signed up to speak. A motion was made by Councilmember Mark Hill, seconded by Councilmember Wes Mays, to close the Public Hearing and approve this Agenda Item subject to the following conditions: 1. There may be additional comments at the time of Building Permit and Detail Page 7City of Coppell, Texas October 9, 2018City Council Minutes Engineering Review. 2. Replat of Lots 3 and 4 must be approved and filed with Dallas County prior to construction 3. All signage must meet ordinance requirements. The motion passed by an unanimous vote. 15.PUBLIC HEARING: Consider approval of a Resolution granting a variance of twenty feet (20') feet to JC’s Burger Bar Coppell from the 300-foot prohibited requirement for the sale of alcoholic beverages for on premise consumption, with a business address being 160 W. Sandy Lake Road, Suite 100; and authorizing the Mayor to sign. Presentation: Christel Pettinos, City Secretary, made a presentation to the City Council. Mayor Pro Tem Long opened the Public Hearing and advised that no one signed up to speak. A motion was made by Councilmember Wes Mays, seconded by Councilmember Gary Roden, to close the Public Hearing and approve this Agenda item. The motion passed by an unanimous vote. Enactment No: RE 2018-1009.2 16.Consider approval to award Bid #Q-0818-03 “Hunterwood Park Bank Stabilization/Trail Project” to Joel Brown Co.; in the amount of $964,047.00; as designated in CRDC fund balance; and authorizing the City Manager to sign any necessary documents. Presentation: Mike Garza, Assistant Director of Public Works, made a presentation to the City Council. A motion was made by Councilmember Biju Mathew, seconded by Councilmember Wes Mays, that this Agenda item be approved. The motion passed by an unanimous vote. 17.Consider approval to enter into an agreement with Gallagher Construction to provide for Program Manager Services for the construction of Fire Station 4; the relocation of Fire Station 1 and the Fire Resource Storage Facility; in the amount of $403,000.00; and authorizing the City Manager to sign. Presentation: Kevin Richardson, Fire Chief, made a presentation to the City Council. A motion was made by Councilmember Wes Mays, seconded by Councilmember Brianna Hinojosa-Smith, that this Agenda Item be approved. The motion passed by an unanimous vote. City Manager Reports - Project Updates and Future Agendas18. Page 8City of Coppell, Texas October 9, 2018City Council Minutes City Manager Mike Land updated the City Council on the following events: the Farm to Table Dinner is going to be held on October 13, 2018, and the Food Truck Frenzy was a success! Mayor and Council Reports19. A.Report by the City Council on upcoming events. B.Report by Councilmember Mays on North Central Texas Council of Governments. A. Mayor Pro Tem Long reminded City Council and those present that Election Day is November 6. Early Voting begins October 22-November 2. Town Center will be an Early Voting polling location for Dallas County residents. The last day to apply for a ballot by mail is October 26. See the City Secretary's Election webpage for polling locations and times. Kaleidoscope will be held at Andy Brown East Park on October 20, 2018, from 5-9 p.m. To get involved or learn more, check out the Kaleidoscope page on the City's webpage. B. Councilmember Mays reported on his meeting with North Central Texas Council of Government. Tex-21 will be holding their Quarterly Regional meeting on October 24, 2018, from 9 a.m. to 1:30 pm, in Garland. There will be sessions regarding topics such as drones and automated vehicle programs, with a special speech from Senator Bob Hall. Public Service Announcements concerning items of community interest with no Council action or deliberation permitted. 20. Nothing to report. Necessary Action from Executive Session21. City Attorney Robert Hager read the following motion into the record: to extend the Letter of Intent between the City of Coppell, the Coppell Economic Development Corporation, and Main Street, Ltd., et al for a period of 62 days to December 12, 2018. A motion was made by Councilmember Nancy Yingling, seconded by Councilmember Roden, that this Agenda item be approved. The motion passed by an unanimous vote. Adjournment There being nothing else before the City Council, the meeting was adjourned at 9:45 p.m. Page 9City of Coppell, Texas October 9, 2018City Council Minutes ________________________ Karen Selbo Hunt, Mayor ATTEST: ________________________ Christel Pettinos, City Secretary Page 10City of Coppell, Texas Master City of Coppell, Texas 255 E. Parkway Boulevard Coppell, Texas 75019-9478 File Number: 2018-4219 File ID: Type: Status: 2018-4219 Agenda Item Agenda Ready 1Version: Reference: In Control: Human Resources 10/15/2018File Created: Final Action: Marathon Health Wellness Clinic Services FY2018-19File Name: Title: Consider approval of an Agreement with Marathon Health for Near-Site Health and Wellness Clinic services for a three (3) year period with the option to renew for two additional, one year periods; in the amount of $200,173 as budgeted; and authorizing the City Manager to execute all necessary paperwork. Notes: Agenda Date: 10/23/2018 Agenda Number: B. Sponsors: Enactment Date: Marathon Memo.pdf, Marathon Agreement.pdfAttachments: Enactment Number: Hearing Date: Contact: Effective Date: Drafter: History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 10/23/2018City Council Text of Legislative File 2018-4219 Title Consider approval of an Agreement with Marathon Health for Near-Site Health and Wellness Clinic services for a three (3) year period with the option to renew for two additional, one year periods; in the amount of $200,173 as budgeted; and authorizing the City Manager to execute all necessary paperwork. Summary Please see attached Memorandum. Fiscal Impact: The fiscal impact of this Agenda item is $200,173 and funding is included in the FY18-19 Combined Page 1City of Coppell, Texas Printed on 10/19/2018 Master Continued (2018-4219) Services Department budget. Staff Recommendation: Staff recommends approval. Goal Icon: Sustainable City Government Page 2City of Coppell, Texas Printed on 10/19/2018 1 MEMORANDUM To: Mayor and City Council From: Vivyon V. Bowman, Director of Administration and Human Resources Date: October 17, 2018 Reference: Approval of Joint Employee Clinic Agreement 2030: Top Quality City Workforce Introduction: Consider approval of an agreement with Marathon Health for Clinic services in the amount of $200,173 and authorizing the City Manager to execute all necessary paperwork. Analysis: BACKGROUND The City of Coppell entered into its first contract with Marathon Health in August 2013, providing a wellness clinic for employees and dependents who participate in the City’s health plan. The facility was named Wellness Works Health Center and officially opened its doors in January 2014. The City of Coppell has its own contract with Marathon however shares the costs of items such as medical expenses, utilities and rental space with the City of Lewisville who also utilizes the clinic. The City of Coppell has 30% of the total covered lives and Lewisville has 70% of covered lives who can use the clinic; therefore, the costs are shared accordingly. The wellness clinic’s services include acute care for common illnesses and minor injuries along with health coaching and management of chronic conditions. Just this year, Marathon has agreed to add a part-time licensed professional counselor to the clinical staff at no additional cost to the City. 2 In May, City of Lewisville sent out a Request for Proposal for the shared Near-site Health and Wellness Clinic using the both Lewisville and Coppell Health plan participants. Four companies submitted proposals for Health and Wellness Clinic services that were narrowed down to two finalists. The City of Lewisville received a competitive bid from CareHere; however, Marathon’s revised long- term financial proposal which includes a behavioral health professional along with past performance are key considerations for the recommendation to remain with Marathon. The City of Lewisville’s contract with Marathon was approved by their City Council on Tuesday October 15, 2018. The City of Coppell is able to take advantage of the Marathon’s proposal through it’s interlocal agreement with the City of Lewisville at the lowest cost of $200,173.00 per year over a three-year period which is a savings of $22,000 per year as compared to the current contract pricing. The projected costs for clinic services is under the new contract for both Cities is provided below: The primary rationale for City Staff’s continued interest in Marathon Health’s clinic concept is to augment our existing wellness strategy. Marathon will use the biometric data (blood work) gathered through the City’s wellness program to assess the medical needs of all our covered employees. Any time a covered employee visits the clinic for any purpose, the clinical staff takes the opportunity to not only treat the acute illness and/or injury that brought the employee into the clinic, but also provide one on one lifestyle management discussion for chronic health conditions such as heart disease, Required Fees Year 1 Year 2 Year 3 Clinic Management Fees City of Lewisville $465,545 $465,545 $465,545 City of Coppell $200,173 $200,173 $200,173 Subtotal Management Fees $665,718 $665,718 $665,718 Other Required Fees: Lab Processing Fees n/a n/a n/a Medications / Vaccines $1,200 $1,200 $1,200 Office/Clinical Supplies and Postage n/a n/a n/a Subtotal Other Required Fees $1,200 $1,200 $1,200 Start Up Fees Start Up Fees n/a n/a n/a Sub Total Start Up Fees $0 $0 $0 Total Fees $666,918.00 $666,918.00 $666,918.00 Optional Fees / Services Year 1 Year 2 Year 3 List any Fees for Optional Services Nutritionist n/a n/a n/a MHSA Behavioral Services $0 (Included)$0 (Included)$0 (Included) Total Fees $0 $0 $0 3 asthma, chronic obstructive pulmonary disease (COPD), depression, diabetes, high blood pressure, low back pain, allergies, smoking cessation, obesity and stress management. If the clinic is able to help employees manage and reduce these types of chronic conditions, the result should be future savings to the City’s medical plan. A secondary reason for participating in a clinic would be to provide an opportunity for our covered employees to establish a medical home. Many employees especially our younger employee population normally visit the nearest urgent care center or the emergency room for their medical treatment which can cost more for the employee and the city’s medical plan. Having a clinic available at no cost, easily accessible and the opportunity to schedule appointments online will hopefully continue to encourage them to seek treatment on a regular basis with a clinician that will be familiar with their ongoing healthcare needs. In addition to the savings mentioned above, the clinic will generate other savings to the health plan. Many employees seek care from specialists that could be handled by the clinic staff. The clinic staff will be able to help the employee determine, if care by a specialist is warranted, thus also eliminating some unnecessary specialist visits. Although the city’s claims have been volatile due to large claims over the last few years, the Wellness Center has had an impact on our preventive and acute visits costs. For the 12-month period of September 2017 through August 2018, the clinic reported 856 office visits for coaching and acute care and 1037 labs/tests performed for biometrics and other illness related tests. As mentioned previously, the Wellness Center plays an important role in our wellness initiative. Over the past 24-month period ending August 2018, 302 employees were identified as having one or more risk factors out of target range. As of the end of August, the clinic had engaged 85% of those members in treatment or coaching with 256 making some improvements in their risk factor profile. In the new fiscal year, spouses that are covered on the City’s medical plan will not only be required to submit their biometrics to the Wellness Center but will be held accountable as employees are for having their risk factors in target range. This will ensure we continue to focus on identifying potential chronic conditions of our participants covered under the City’s health insurance and hopefully further impact our health plan costs in the future years. Legal Review: The attached agreement was reviewed by Robert Hager and all recommended changes were made. Fiscal Impact: The annual cost to the City of Coppell for the clinic is $200,173.00. The cost of the clinic will be offset in part by claim dollars that are currently being paid to primary care physicians through the City of Coppell health plan and by reallocating other plan expenses such as biometrics, annual physicals, and other existing wellness program expenses. The total cost is broken up into two components the annual contract fee of 200,173.00 and shared overhead costs of approximately $11,930.00 for building rental, utilities, janitorial, phone and data services. 4 Recommendation: Staff recommends approval of the contract with Marathon Health, LLC for a three-year period and the option to renew for an additional two years. Marathon Health, LLC. Confidential 1 HEALTH SERVICES AGREEMENT between City of Coppell and Marathon Health, LLC THIS HEALTH SERVICES AGREEMENT (this “Agreement”) is made and entered into to be effective as of September 25, 2018 (the “Effective Date”) by and between City of Coppell (“Client”), with principal offices at 255 Parkway Boulevard, Coppell, TX 75019, and Marathon Health, LLC (“Marathon”), a Delaware limited liability company with principal offices at Champlain Mill, 20 Winooski Falls Way, Suite 400, Winooski, VT 05404. Client and Marathon may each be referred to in this Agreement as a “Party” and, collectively, as the “Parties”. WITNESSETH WHEREAS, as part of its overall healthcare program, Client desires to furnish to its employees certain preventive, wellness, disease management, health consultation, occupational health and/or primary care services; WHEREAS, Client desires to retain Marathon to furnish such preventive, wellness, disease management, health consultation, occupational health and/or primary care services; and NOW , THEREFORE, in consideration of the mutual promises and covenants contained in this Agreement together with all exhibits, and for other good and valuable consideration, the receipt of which is hereby acknowledged, Client and Marathon hereby agree as follows: Article I Definitions 1.1 “Care Provider” means a staff member or independent contractor of Marathon who provides care or consultation services directly to Participants. 1.2 “Collaborating Physician” means an appropriately licensed physician who has a collaborative relationship with a nurse practitioner or physician’s assistant as required under the laws of the state in which such nurse practitioner or physician’s assistant is providing services. 1.3 “Participant” means an individual, age 6 years or more, eligible to participate in the Marathon Services as determined by the eligibility criteria of Client’s health plan or as otherwise determined by Client. Marathon Health, LLC. Confidential 2 Article II Services; Relationship Between the Parties 2.1 Services. Marathon will provide Client with the services described and set forth in Schedule A and A1 (the “Marathon Services”). Services that do not clearly fall within the description set forth on Schedule A and A1 shall be outside the scope of this Agreement, and Client shall instruct Participants to seek outside assistance for such matters with an alternate healthcare provider. Marathon may provide some of the Marathon Services by engaging the services of third party contractors, particularly for professional services. 2.2 Implementation Timeline. Marathon and Client mutually agree to modify Marathon’s standard implementation timeline as needed to allow Marathon to commence the Marathon Services on the Commencement Date of the Initial Term of this Agreement. 2.3 Independent Contractors. Marathon, and each of the third party contractors delivering services hereunder, is an independent contractor with respect to the services provided under this Agreement and is not the agent or employee of Client. Notwithstanding any authority granted to Client herein, Marathon and/or any Care Provider or Collaborating Physician shall retain the authority to direct or control his, her or its medical decisions, acts or judgments. 2.4 Employee Benefit Plans. The programs and services provided under this Agreement are not designed or intended to be provided under any Client employee benefit plan or program. Accordingly, neither Marathon, nor any of the third party contractors it may engage, is a fiduciary, trustee, or sponsor with respect to these programs or services. In the event the programs and services become part of a Client employee benefit plan or program, Marathon, and each of the third party contractors it may engage, shall be considered to be acting only as a consultant to Client with respect to such matters and shall not be considered in a fiduciary, trustee or sponsor relationship in such plan. Article III Contract Period 3.1 Term. The “Initial Term” of this Agreement shall begin on the Effective Date, and shall continue with the Marathon Services for a period of three (3) years, commencing on January 28, 2019 (the “Commencement Date”), unless terminated earlier as provided for in Article VII, below. 3.2 Renewal Terms. This Agreement shall automatically renew for additional terms of one (1) year (each a “Renewal Term” and together, the “Renewal Terms”), unless either Party terminates this Agreement by giving written notice not less than ninety (90) days prior to the expiration of the then current term. Such Renewal Term(s) shall be subject to the termination provisions set forth in Article VII below. Failure Marathon Health, LLC. Confidential 3 to provide timely written notice shall act as a Party’s intent to automatically renew the Agreement at the end of the then current term. The Parties agree that they shall begin good faith negotiations regarding any material changes to the terms of this Agreement no later than six (6) months prior to the end of the then current term; in any event this Agreement shall not be extended past January 27, 2023. Article IV Payment Terms; Pricing 4.1 Fees. Marathon will submit invoices to Client for the initial fees as set forth in Schedule B. With the exception of reimbursement of reasonable expenses as otherwise provided in this Agreement, such fees shall be the only compensation to Marathon under this Agreement. Payment is due for all undisputed charges within thirty (30) days of receipt of an invoice. A one percent (1%) per month late fee will be charged for payments on undisputed charges not received when due. 4.2 Failure to Pay. Failure to pay an invoice when due shall constitute a breach of this Agreement and Marathon reserves the right to terminate this Agreement or suspend services upon a breach by Client that continues more than thirty (30) days after the invoice due date. Marathon reserves the right to refrain from providing services to Client, if full payment is not made when due for undisputed charges, until such time as payment in full has been made. In the event that Marathon continues to provide services during a period of time when Client is in breach, such continuance of services will not operate as a waiver of Marathon’s right and ability to utilize any and all remedies available to Marathon under applicable laws. 4.3 Tax Obligations. All fees for services purchased or licensed in this Agreement, unless otherwise noted, are exclusive of applicable taxes, if any. Client agrees to pay all applicable sales, use or service taxes imposed by any state or local tax authority on the services or payments provided hereunder (other than taxes calculated on the basis of the net income of Marathon) which Marathon may be required to pay or collect. Any such tax due is in addition to the fees charged by Marathon herein and will be listed separately on invoices. To the extent Marathon has not collected and remitted any applicable tax for Client in reliance upon an erroneous representation of Client as to its tax status, Client’s obligation to pay taxes shall include any interest and penalties imposed by any taxing authorities. If a certificate of exemption or similar document or proceeding is necessary in order to exempt the sale from sales or use tax liability, Client shall obtain and produce such certificate, document or proceeding, at its sole expense. Article V Duties of Marathon Marathon Health, LLC. Confidential 4 5.1 Equipment and Supplies. At its sole cost and expense, Marathon shall provide or arrange for the provision of such equipment, supplies, professional services and such other support services necessary for the performance of its obligations under this agreement. Marathon shall retain ownership of and/or control over the equipment and/or supplies provided under this Agreement. 5.2 Qualified Care Providers. Marathon shall employ or engage qualified and appropriately licensed or certified (if applicable) Care Providers to provide the services that Marathon is obligated to provide under this Agreement. It shall be Marathon’s responsibility to select, contract with and manage any third party contractors, all in accordance with the terms of this Agreement. Such third party contractors may include an affiliated professional corporation to provide the acute and other health care services, for which it will be paid fair market value by Marathon, and may include other contractors. Marathon shall retain responsibility for any such delegated and/or subcontracted services and shall monitor performance of such services on an ongoing basis to ensure the compliance with all applicable obligations under this Agreement. 5.3 Independent Contractor. Marathon shall at all times remain an independent contractor. Nothing contained herein shall be construed to create an agency, joint venture, or joint enterprise relationship between the Parties. Marathon and its personnel and contractors are not Client’s personnel or agents, and Marathon assumes full responsibility for their actions. Marathon shall comply with all Laws governing the services being performed under this Agreement. Marathon, at its sole expense, shall obtain any and all licenses and permits required for the services performed by its personnel and Contractors, including but not limited to any and all visas, work permits, etc. required by applicable Law. Marathon shall be solely responsible for the payment of compensation of Marathon personnel and contractors performing services hereunder, and Marathon’s personnel and contractors are not entitled to the provision of any Client employee benefits. Client shall not be responsible for payment of worker's compensation, disability or other similar benefits, unemployment or other similar insurance or for withholding income or other similar taxes or social security for any Marathon personnel and contractors, but such responsibility shall solely be that of Marathon. 5.4 Performance of Client Obligations. Marathon shall not be responsible for any delay or lack of performance of the Marathon Services due to the failure of Client or a Participant to provide information necessary to fulfill its obligations as required under this Agreement. 5.5 Compliance with Law. Marathon shall not direct or encourage Client to act or refrain from acting in any way which, to its knowledge, would violate any applicable law or regulation, or personnel policy of the Client. Marathon shall not act in any way which, to its knowledge, could implicate or involve Client in a violation of any such law or regulation. Marathon Health, LLC. Confidential 5 5.6 Marathon Health Reports. Marathon will provide to Client the reports described in Schedule A. Article VI Duties of Client 6.1 Provision of Location. Client shall, at its sole cost and expense, provide or arrange for the provision of such space needed by Marathon for the performance of its obligations under this agreement, including fit-up of the space with basic infrastructure consistent with Marathon’s specifications, including but not limited to, utilities, unrestricted internet connectivity, and non-medical furnishings. Client is responsible for routine cleaning of the health center space, including vacuuming, trash removal and bathroom cleaning, if applicable, on a daily basis. Marathon is responsible for storage and removal of medical waste. 6.2 Internet Connections. Client will provide dedicated, unrestricted, business class DSL or business class cable services. Ethernet handoff to be implemented into a Marathon owned and operated firewall/router. Client is responsible for premise wiring to facilitate connectivity from the Marathon firewall to the desktops. Two jacks are required for each employee station. Location of jacks is dependent upon build out of facilities. Minimum requirements include bandwidth requirements of 10 mbps connection (up/down), and 5 static publicly addressable IP addresses. 6.3 Telephone and Fax. Client will facilitate and provide all physical wiring needed for telephone connectivity. Wiring must be at least Cat5e terminated at both ends with RJ45 sockets. All wiring shall be terminated in a central location at one end and at each workstation at the other. Marathon will provide telephones and associated services for all of its employees and for the main line to the health center. Client is responsible for providing convenience phones and associated wiring if Client wants its employees to have access to telephones within the health center. Client must also provide service to the health center for 1 analog phone line and associated wiring for the purpose of faxing. 6.4 Publicity and Promotion. Client will publicize and provide descriptive information, including those standard marketing materials provided by Marathon as described in Schedule A, about the Marathon Services to all of its employees who may seek services at the location or locations agreed upon by the Parties. Client will provide Marathon with copies of other documents and materials prepared independently by Client describing, publicizing, or significantly affecting the Marathon Services prior to the distribution of such materials. Marathon shall review and comment on such materials within a reasonable time after receipt. Client shall use reasonable efforts to seek Marathon’s input prior to publicizing and providing such information to its employees, which input shall not be unreasonably delayed. Client expressly permits Marathon to use Client’s name in advertisements to recruit Care Providers or other personnel dedicated for the Marathon Services, as the recruitment and implementation processes are reliant on this. Marathon Health, LLC. Confidential 6 6.5 Eligibility Files. Client will provide to Marathon on a weekly basis, or other mutually agreed-upon frequency, a Participant eligibility file, which is necessary to enable Marathon to provide the Marathon Services, and will only be used for provision of the Marathon Services or for healthcare operations. The Participant eligibility file will contain the entire population of Participants and will adhere to Marathon’s file specifications. 6.6 Medical Claims Data. To assist in the identification and treatment of Participants with chronic conditions such as diabetes, asthma, heart disease, pulmonary disease and hypertension, Client agrees to make reasonable effort to provide Marathon, through its carrier, third party administrator, or third party vendor for claims data mining, with access to medical claims data for the Participants enrolled in Client’s health plan(s), for the 12 months prior to the initiation of onsite services, and minimally at twelve month intervals thereafter through the term of the contract. Marathon will provide Client with the file format defining the specifications for the data. 6.7 Availability of Resources. Client agrees to allow Marathon to utilize any internal resources of Client and to assist Marathon in such utilization, including, but not limited to, training, marketing tools and resources, and technical support necessary to maintain the requirements outlined in Section 6.1, as mutually agreed upon by the Parties, in order to enhance the effectiveness and utilization of the Marathon Services. Client will identify a single primary point of contact for implementation project management and ongoing account management. 6.8 Compliance with Law. Client shall not direct or encourage Marathon to act or refrain from acting in any way which, to its knowledge, would violate any applicable law or regulation. Client shall not act in any way which, to its knowledge, could implicate or involve Marathon in a violation of any such law or regulation, including but not limited to “HIPAA Regulations” as outlined in Section 8.2. Article VII Events of Default, Remedies and Termination 7.1 Events of Default. Any one or more of the following shall constitute an event of default under this Agreement (each to be an “Event of Default”): (a) Any failure by Client to pay Marathon in accordance with Article IV of this Agreement; (b) Any material failure by either Party to promptly and fully perform its obligations or comply with the terms of this Agreement and the Schedules attached hereto, and, provided that such default is not a willful violation of applicable Law or a threat to Participant health and safety, (which failures Marathon Health, LLC. Confidential 7 must be remedied immediately), the defaulting Party shall have sixty (60) days to remedy such default after written notice of such default by the aggrieved Party to the defaulting Party specifying in detail the nature of the default, and provided further that the defaulting Party shall have up to ninety (90) days to cure such default if it has commenced to cure such breach within thirty (30) days of receipt of such notice and is continuing to diligently pursue a cure of such breach; and (c) Marathon appoints a custodian, liquidator, trustee or receiver or a material portion of its assets become subject to custodian, liquidator, trustee or receiver; or if a party files a voluntary petition in U.S. bankruptcy court; or a Party is generally not paying its debts as they become due or makes an assignment for the benefit of creditors; or bankruptcy, reorganization, or insolvency proceedings or other proceedings for relief under any bankruptcy or similar Law or Laws for relief of debtors are instituted by or against a Party and are not dismissed within sixty (60) days, this Agreement will terminate immediately. 7.2 Remedies. (a) Subject to the terms and conditions of this Agreement, upon an Event of Material Default by Client, Marathon may, at its option, (i) suspend further Services under this Agreement, (ii) pursue any and all remedies that may be available at law or in equity, and/or (iii) terminate this Agreement. (b) Subject to the terms and conditions of this Agreement, upon an Event of Material Default by Marathon, Client may, at its option, (i) suspend further payments to Marathon which are specifically associated with such default, (ii) pursue any and all remedies that may be available at law or in equity, and/or (iii) terminate this Agreement. 7.3 Termination Events. (a) This Agreement may be terminated by either Party upon the occurrence of an Event of Default by the other Party. (b) This Agreement may be terminated by either Party upon giving the other Party 90 day written notice within 90 days of any annual anniversary of contract Commencement Date. (c) Failure to Fund. Marathon agrees that, should the City of Coppell fail to appropriate sufficient funds for any future fiscal year to support the financial operation of the Employee Health Clinic, the Agreement will be terminated immediately without additional cost or penalty. 7.4 Consequences of Termination. Marathon Health, LLC. Confidential 8 (a) Termination under any section of this Article VII shall not cause either Party to waive any rights it may have to exercise any remedies available to it under any other section of this Agreement or under any applicable Law. (b) In the event this Agreement is terminated by reason of a Party’s default, the defaulting Party shall be liable for all direct costs, fees, expenses and damages and/or other amounts, including reasonable attorneys’ fees, which the other Party may incur or sustain which are directly due to such default, including but not limited to, reasonable attorneys’ fees. In the event that the other Party claims any additional direct costs, fees, expenses, damages, and/or other amounts, the defaulting Party agrees to provide upon request such additional financial or accounting records as may be reasonably necessary for the other Party to verify such additional direct costs, fees, expenses, damages, and/or other amounts. In the event this Agreement is terminated by reason of a Party’s default, the other Party shall have no continuing obligations or liabilities under this Agreement except as expressly provided under this Agreement. (c) Except as expressly provided below in this Section 7.4(d), notwithstanding anything in this Agreement to the contrary, (a) no Party shall be liable to the other party for incidental or consequential damages resulting from any breach of this Agreement, and (b) the maximum liability of either party to the other for any breach or violation of this Agreement or any addendum to this Agreement shall not exceed an amount equal to the total fees payable under this Agreement. Notwithstanding the foregoing, the limitations on liability set forth in this subsection shall not apply to any Event of Default by a party constituting fraud, gross negligence, or willful misconduct in connection with this Agreement, or claims for indemnification under Article XI of this Agreement. (d) Provided that Client has satisfied all payment obligations under this Agreement, and any disputes regarding payment have been resolved, or, if an unresolved payment dispute exists, Client shall have deposited in an interest-bearing escrow account with a mutually agreed upon financial institution an amount equal to the disputed payment amount, in all cases of termination, Marathon agrees to work with Client to make an orderly transition of the Marathon Services and Client’s property pursuant to the terms and conditions of a mutually agreed upon transition plan. Marathon and Client agree to negotiate in good faith the terms and conditions of any such transition plan. (e) Marathon shall maintain Participants’ health records beyond termination of this Agreement in accordance with applicable laws. Article VIII Confidentiality of Participant Records Marathon Health, LLC. Confidential 9 8.1 Access to Participant Information. Marathon acknowledges and agrees that in the course of performing its duties under this Agreement, Marathon, its Care Providers and/or their agents may acquire or obtain access to or knowledge of health records or other personal and confidential information regarding Participants. 8.2 Safeguard of Information. Marathon, its Care Providers and their agents will safeguard Participants’ health records and other personal and confidential information to ensure that the information is not improperly disclosed and to comply with any applicable law, rule or regulation, including, but not limited to, regulations promulgated by the United States Department of Health and Human Services, pursuant to the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) as the same may be amended from time to time (collectively the “HIPAA Regulations”), the Health Information Technology for Economic and Clinical Health (HITECH) Act, and other federal and state regulations governing the confidentiality of health information, including without limitation mental health, substance abuse and HIV-related information. Individual electronic medical record information is the property of Marathon, subject to each Participant’s rights to his/her individual medical information. 8.3 Granting of Access. Marathon will afford access to Participant’s health records or personal and confidential information to other persons only as allowed, or required by law. Marathon shall not grant access to patient records, patient information, and other personal and confidential data to any individual or to Client except as provided in this Section 8.3. 8.4 Compliance Assistance. To the extent Marathon utilizes space provided by Client in providing services under this Agreement, the Parties shall discuss how Client can assist Marathon in complying with these requirements, including the physical access to such space. Article IX Confidentiality of Business Information 9.1 Restriction of Use; Confidentiality. Each of the Parties agrees not to use any Confidential Information (as defined below) for any purpose other than to accomplish the intent of this Agreement. No other rights, or licenses to trademarks, inventions, copyrights, or patents are implied or granted under this Agreement. Confidential Information supplied shall not be reproduced in any form except as required to accomplish the intent of this Agreement. Each Party agrees to keep all such Confidential Information confidential and, at a minimum, treat this Confidential Information in the same confidential manner it would treat its own most confidential information, and shall not disclose it to others or use it for any purpose except as required to accomplish the intent of this Agreement. Marathon Health, LLC. Confidential 10 9.2 Confidential Information. For purposes of this provision, the term “Confidential Information” shall mean any business practices, methods of doing business, or written or electronic materials relating to its business and shall also include without limitation any written material of the type that is proprietary, including, without limitation, software programs, technical information, patent applications, patent disclosures, prototypes, samples, business apparatus, forms of reports, know- how, and other materials marked “confidential”, or confidential information disclosed verbally if set forth in a writing which is provided to the recipient within 15 days of verbal disclosure thereof. Confidential Information shall not, however, include information that is governed by the confidentiality provision of Article VIII, or any information which recipient can establish (i) was publicly known and made generally available in the public domain prior to the time of disclosure to recipient; (ii) becomes publicly known and made generally available after disclosure to recipient through no action or inaction of recipient or its affiliates; or (iii) is in the possession of recipient, without confidentiality restrictions, at the time of disclosure as shown by recipient’s files and records immediately prior to the time of disclosure. Nothing in this Agreement shall be deemed to prohibit recipient from disclosing any Confidential Information that is (i) required by law (provided, however, that in the event of such requirement, prior to disclosing any Confidential Information, recipient will notify the disclosing Party of the scope and source of such legal requirements and shall give the disclosing Party the opportunity to challenge the need to disclose and/or limit the scope of disclosed information) or (ii) pursuant to the written consent of the disclosing Party. 9.3 Indemnification. Each Party hereby agrees to indemnify and hold harmless the other Party from any damage, loss, cost or liability (including legal fees and the cost of enforcing this indemnity) arising out of or resulting from its unauthorized use or disclosure of Confidential Information, to the extent permitted by Law. Each Party acknowledges and agrees that monetary damages would be both incalculable and an insufficient remedy for any breach of this Agreement and that any such breach would cause either Party irreparable harm. Article X Non-Solicitation 10.1 Non-Solicitation. As consideration for the resources dedicated to the development of the Marathon Services and for Marathon entering into this Agreement, Client agrees that it will not, either during the term of this Agreement or for a period of two (2) years after the termination of this Agreement for any reason whatsoever, directly or indirectly, employ or consult in any way, whether in a paid or unpaid capacity, any entity or individual, including but not limited to Care Providers, medical directors, Collaborating Physicians, employees, and independent contractors, furnished by Marathon in performing services under this Agreement, unless Marathon gives prior written approval. Marathon Health, LLC. Confidential 11 Article XI Indemnification and Insurance 11.1 Indemnification. Each Party shall defend, indemnify and hold harmless the other Party, its subsidiaries and affiliated companies, and their respective directors, officers, employees and agents (the “Indemnified Parties”) from and against all claims, causes of action, suits, losses, damages, reasonable attorneys’ fees and costs (collectively referred to in this Article XI as “Liabilities”) that arise directly from or out of any third party claim asserted against any Indemnified Party alleging negligence by the first Party or its employees or agents in the performance of services and other duties and responsibilities in connection with this Agreement. 11.2 Marathon Insurance. Marathon shall maintain and pay for the following insurance coverages during the term of this Agreement and all renewals thereof: (a) Medical malpractice liability coverage with limits of $5 million per claim and $5 million aggregate. (b) General liability coverage with limits of $5 million per claim and $5 million aggregate. (c) Umbrella/excess liability insurance covering professional and general liability with limits of $2 million per claim and $2 million aggregate. (d) Technology related errors and omissions liability and cyber-liability coverage with limits of $5 million per claim and $5 million aggregate. (e) Property and casualty coverage for its materials, equipment, furnishings, supplies, and all owned personal and/or business property and improvements located on Client’s premises under the standard “Special Form” coverage to its full replacement cost, without depreciation, adjusted yearly. (f) Workers’ compensation and other statutory insurances as required. 11.3 Client Insurance. Client shall insure, and pay for the following insurance coverages during the term of this Agreement and all renewals thereof: (a) General liability insurance covering Client’s business operations on the premises in which the Marathon Services will be performed. (b) Property and casualty coverage for all of Client’s real and personal property to which Marathon and its employees are granted access or given use, to its full or depreciated value, at Client’s option, to include, but not be limited to, insurance on space needed by Marathon for the performance of its obligations under this Agreement and all Client’s infrastructure and improvements to such space. Marathon Health, LLC. Confidential 12 (c) Other insurances typically maintained within Client’s industry. Article XII Miscellaneous 12.1 Ancillary Agreements. Client agrees to execute or cause to be executed all ancillary agreements appropriate and reasonably necessary to enable the Marathon Services to be performed; and, this Agreement supercedes and replaces any prior Agreements between the Parties. 12.2 Force Majeure. Neither Party shall be liable for failure or delay in performance due to any cause beyond the reasonable control of such Party (a “Force Majeure Event”); provided that such Party shall have (i) used its best efforts to avoid such Force Majeure Event and to minimize the impact of same on the other Party and (ii) rendered to the other Party prompt written notice thereof when first discovered, fully describing its probable effect and duration. The term “Force Majeure Event” shall include, but not be limited to, acts of God or the public enemy; expropriation or confiscation; war, rebellion, civil disturbances, sabotage, and riots; strikes or other labor disputes that are not due to the breach of any labor agreement by the affected Party hereunder; inability to obtain any local, state or federal governmental approval due to actions or omissions by any such governmental authority that were not voluntarily induced or promoted by the affected Party hereunder; and floods or unusually severe weather that could not have been reasonably anticipated, fires, explosions, and earthquakes, and other similar occurrences. Force Majeure Event shall not include economic hardship or changes in market conditions. 12.3 Entire Agreement. The Parties acknowledge that this Agreement, including any attachments, schedules and addendum that are attached hereto and incorporated herein by reference, represents the entire agreement and understanding of the Parties with reference to the subject matter of this Agreement and supersedes all prior and contemporaneous agreements, understandings, and any other negotiations and discussions, whether oral or written, of the parties and/or subsidiaries of the parties with respect to the same subject matter hereof. Each Party acknowledges that no other promises, representations or agreements, whether written or verbal, have been made by the other Party, its agents, employees or legal representatives as an inducement for the execution of this Agreement. The Agreement replaces all prior understandings and agreements of the Parties, written or oral, with respect to the subject matter covered herein. 12.4 Notices. All notices to be delivered under this Agreement shall be in writing and shall be delivered by hand or deposited in the United States mail, first-class, registered or certified mail, postage prepaid, to the following addresses: To Client: City of Coppell Marathon Health, LLC. Confidential 13 Attn: Mike Land, City Manager 255 Parkway Boulevard Coppell, TX 75019 Tel – (972) 304-3618 Fax – (972) 304-7063 To Marathon: Marathon Health, LLC Champlain Mill 20 Winooski Falls Way, Suite 400 Winooski, VT 05404 Tel - (802) 857-0400 Fax - (802) 857-0498 Fax Attn: Jerry Ford, CEO 12.5 Severability. If any provision of this Agreement is determined to be unenforceable or invalid, such determination will not affect the validity of the other provisions contained in this Agreement. Failure to enforce any provision of this Agreement does not affect the rights of the Parties to enforce such provision in another circumstance. Neither does it affect the rights of the Parties to enforce any other provision of the Agreement at any time. 12.6 Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Texas to the extent not preempted by federal law. 12.7 Amendment. This Agreement may be amended by Client and Marathon only by a writing duly executed by an appropriate officer of Marathon and Client. This requirement is not intended to preclude the Parties from making decisions regarding day to day operations. 12.8 Assignment. This Agreement and all of the provisions hereof will be binding upon and inure to the benefit of the Parties hereto and their respective successors and permitted assigns. The rights and duties of Marathon and Client under this Agreement shall not be assignable by either Party without the prior written consent of the other Party. Such consent shall not be unreasonably withheld. 12.9 Third Party Beneficiaries. Nothing contained herein shall be construed to confer any benefit on persons who are not Parties to this Agreement. 12.10 Waiver. A failure or delay of either party to this Agreement to enforce at any time any of the provisions of this Agreement, or to exercise any option which is herein provided, or to require at any time performance of any of the provisions hereof, shall in no way be construed to be a waiver of such provision of this Agreement or shall not excuse the other party's performance of such, nor affect any rights at a later time to enforce the provision. Marathon Health, LLC. Confidential 14 12.11 Disputes. If there is any dispute covered by this Agreement, the disputing party shall give written notice of such dispute to the other party no later than one hundred eighty (180) days after the party knew or should have known that the dispute existed. Within thirty (30) days after notice of the dispute is given, the parties will meet to attempt to resolve the dispute. If the parties fail to meet within thirty (30) days after the notice of dispute is given or if the parties fail to resolve the dispute within forty-five (45) days after they first meet, either party may initiate arbitration of the dispute as provided hereinafter and in accordance with the American Arbitration Association Arbitration Rules and Mediation Procedures for Commercial Disputes. 12.12 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. IN WITNESS WHEREOF, the undersigned have executed this Agreement effective as of the date first above written. CITY OF COPPELL MARATHON HEALTH, LLC. Signed: Signed: Name: Mike Land Name: Jerry Ford Title: City Manager Title: CEO Date: Date: 15 Schedule A MARATHON SERVICES DESCRIPTION OF SERVICES Ongoing Services: As of the Commencement Date, Marathon shall provide onsite health services as follows for eligible employees, retirees, & dependents. Implementation Services: During the period beginning on the Effective Date and continuing through the start of the Ongoing Services on the Commencement Date (the “Implementation Period”), Marathon shall provide the Implementation Services detailed in Schedule A1. The following is included in the annual fees, per Schedule B: Individuals Eligible to Participate as of the Commencement Date: Eligible Participants Number Comment Employees 358 Spouses 74 Dependents 311 Retirees 4 Health Center Staffing: Staffing* Number Comment Physicians 0.6 FTE Located in Lewisville Health Center Nurse Practitioners [Physician Assistants] 1.0 FTE Located in Lewisville Health Center Medical assistants 1.5 FTE Located in Lewisville Health Center Licensed Clinical Mental Health Counselor 0.5 FTE Located in Lewisville Health Center Location and Time of Services: Monday – Friday Hours of Operation (Lewisville Health Center) M, W, FR – 8am- 4pm T, TH – 11am-7pm • Notwithstanding the hours of operation described above, the health center shall be closed for eight (8) holidays and for four (4) professional development days per year. • In the event of an unexpected clinician absence, the health center shall remain open for services to be continued, to the extent possible, by the other regular health center staff member(s). Up to five (5) days of such absences that result in no primary care services being provided shall be allowed per year, per health center. 16 ONGOING SERVICES INCLUDED IN ANNUAL FEE: Labor costs, medical & office supplies, medical liability insurance, worker’s compensation insurance, general liability insurance and all other insurance policies. Primary Care Description Acute and Episodic Care • Assessment and treatment of medical conditions that are episodic in nature and short in duration. Examples include, but are not limited to, upper respiratory infections, rashes, urinary tract infections, and first treatment of minor injuries Management of Chronic Conditions • Management of chronic conditions for individuals who do not have a primary care provider. Examples include, but are not limited to, hypertension, hypothyroidism, allergic rhinitis, hypercholesterolemia and diabetes. • For those individuals with an existing primary care provider and/or specialist, and in particular for those individuals who have multiple complicated medical conditions requiring specialty care and/or significant oversight, the Marathon Health clinician will work in collaboration with said provider to provide adjunct care and education to the patient. • For those individuals who do not have a primary care provider, Marathon can function as the medical home and provide full primary care, including the management of multiple chronic conditions requiring significant oversight. After hours coverage and in-hospital care not included. The clinician will work in collaboration with specialty care providers if specialty referral is indicated. Routine annual exams and screenings • Annual Physicals – Includes a physical exam. Any required external lab processing and imaging is not included in the annual fees. • Annual women’s health exams to include pelvic exam and pap smear. Pap smear requires external lab processing not included in the annual fees. Travel Medicine • Consultation with clinician to receive guidance on recommended immunizations, medications, and travel precautions. Vaccines can be administered in-house for most required immunization but are purchased in advance per agreement with Client, and the cost of vaccines is not included in the annual fees. Supplemental Primary Care Services Description Lab Draws Labs may be drawn for diagnostic and monitoring purposes at the recommendation of the onsite clinician. The cost of external lab processing is a third party charge to Client that is not included in the annual fee. Immunizations Administered at no cost with Marathon’s cost of vaccine passed through as incurred. CLIA-waived labs Processed in-house during the provision of care, as needed (pending review of state regulations). The following tests are included in the annual fee: A1C Hemoglobin, Fecal Occult Blood Test, Glucose, HCG Pregnancy, Lipid Profile, Mono, Strep A, Urinalysis. Health Maintenance and Disease Prevention Description Health Risk Assessment • Administered online or in paper version screens • General health and well-being • Health history including symptoms, conditions and family history • Tobacco use, alcohol use and stress levels Comprehensive Heath Review (CHR) • For high risk individuals and individuals with chronic disease a CHR • Online access to complete the Health History and Risk Assessment (HHRA) • 1:1 consultation with the onsite clinician to review assessment results, health history and risk appraisal, set goals and recommend strategies to achieve goals 17 Lifestyle Risk Reduction • For high risk individuals agreeing to follow-up with the Marathon Health Care provider as their personal health coach • Work 1:1 with individuals to change behaviors putting them at risk for certain conditions, addressing lifestyle habits such as physical activity, smoking, diet, stress, weight control, cholesterol and blood pressure. • Marathon Health Providers incorporate Transtheoretical Model, Model for Improvement and Motivational Interviewing behavioral change methodologies • Individualized change management plans • Proactive support Chronic Condition Coaching Description For individuals with chronic diseases (Diabetes, COPD, asthma, CHF, CAD, HTN, depression, low back pain) • Work 1:1 with individuals to empower and educate them to improve their health and quality of life through self-management practices and adherence to a treatment plan that aligns with national clinical guidelines for their disease. • Coaching, symptom monitoring, and disease education Occupational Health Services Description Work-related injuries • First treatment of minor work related injuries. Examples include, but are not limited to, minor strains, sprains, dermatitis, insect bites Behavioral Health Services Description Individual, couples and family counseling for behavioral health issues • Such as stress, depression, anxiety, grief, relationships, eating disorders and substance abuse. • If dependents are covered in the contract counseling will be offered to ages 12 and older. Health Engagement System Technology Platform Description Health Engagement System Technology Platform (for up to 110% of the employees and spouses eligible to participate) • Personal Health Record with risk profile, wellness score, interactive nutrition and activity trackers, and medical content • Online scheduling system and secure messaging • Electronic Medical Record • Ability to import encounter data from carrier to provide historical patient encounter information • Export up to three (3) types of data feeds (encounter, lab, or HRA) in Marathon Health standard format Health Savings Account processing • For patients with a Health Savings Account (HSA) in a High Deductible Health Plan (HDHP), Marathon Health provides the ability to send a claim for non-preventative care visits, at an agreed upon cost, to be applied against the patient’s deductible. Account Management and Advisory Services Description One Point of Contact An assigned Account Manager provides one point of contact for triaging issues that may be handled by Marathon’s team of analysts, clinicians, communications resources and others to ensure any issues are identified and addressed quickly. Clinical Coverage Plan Marathon Health will establish and provide a coverage plan for clinical staff absences due to illness, vacation or continuing medical education (CME) time off. 18 Monthly Reviews Account Manager will hold monthly calls with the client to deliver and discuss the reports described below to ensure that the client has data on health center activity and progress toward goals. Annual Review Account Manager will provide face-to-face annual reviews of the health center business, incorporating the Client-specific key performance metrics from the previous year, as well as a strategic plan for the next year. Ongoing Health Promotions Account Manager will work together with the Client to manage ongoing communications for the promotion of health center services and operations Strategic Planning Account Manager will work to understand and support client’s unique business objectives and goals for the health center. The Account Manager will work collaboratively with the Client’s broker/consultant, as well as other health related vendors (EAP, DM, etc.) as needed to ensure that employee health resources are fully leveraged. Management Reporting and Analysis Description Monthly client activity and trends report Including visit volume (visits for acute care, occupational health, risk reduction and chronic condition management, group work and telephonic consults), high risk patients engaged, high risk patients making progress, encounters by CPT code, diagnoses by ICD-9 code, prescriptions written, and overall savings from operations Annual reports including: ● Population stratification report identifying percent of the population screened, size and nature of high risk population and size and nature of population with chronic conditions identified through data mining and/or screening. ● Review of health center operations including health center volumes and patient engagement ● Examination of outcomes including overall improvement in population health status, patient satisfaction, savings from health center operations and return on investment analysis, results of at-risk pay-for-performance metrics, and plan for continuous quality improvement. Participant Communications and Promotions Description Pre-launch multimedia communication campaign Including site posters, events, digital communication, and mailings, customized with location-specific information. (Descriptions of clinical services are not modifiable.) See A2 for details on pre-launch communication material. MyHealth Report Including email and mailings to homes to promote access to a personalized health report for all participants. Health Promotion Catalog Including educational sessions, group programs, health center promotional activities, health fair support, health and fitness challenges, and other programs designed to increase engagement. Production and Printing The standard communication package includes all production and printing costs. SERVICES NOT INCLUDED IN ANNUAL FEE: • Flu vaccine and related supplies supplied at current rates. • Pre-packaged pharmaceuticals dispensed onsite supplied at Marathon cost. • Other prescription medications, vaccines and durable medical equipment supplied at Marathon cost • Additional Data Services, such as custom interfaces for uploads of prior provider data, or more than 3 ongoing activity reports. • Mass population biometric screening fees at quoted rates. Actual fee is dependent on number of individuals screened and the number of locations. Individual in-house biometric screenings and all health risk assessments are included in the annual service fee. 19 • Travel costs for health center staff and health screeners to visit participants at offsite locations (locations other than those regularly operated health centers included at the top of this Schedule A). • Optional communication services: • Video Production: Short videos to promote the services, success stories, or address concerns. • Design/Production Non-Storefront Material: Design/production of material that requires customization to currently available storefront material. • Mailings to homes: Postage cost for mailing of general health center materials (excluding MyHealth Report) to participants’ homes, rather than distributing in the workplace. NOT INCLUDED IN THIS AGREEMENT: • Non-CLIA waived tests, CLIA waived tests not included above, external lab processing for physicals, annual exams and screenings. • Internet connectivity and telephone service for Marathon staff. 20 Schedule A1 IMPLEMENTATION SERVICES Marathon Health shall provide the following standard Implementation Services, which are included in the quoted fees. Additional services provided beyond the scope of the deliverables, such as additional site visit days, will be billed as Additional Services. Standard Implementation Package Deliverables (exact media to be determined) Pre-Kick Off Implementation Meeting Sales Transition Meeting: Client, Sales VP and Project Manager meet via conference call to initiate steps in the implementation process. Kick Off Implementation Meeting Initial Implementation Team meeting to start the implementation process. This conference call will include all members of the implementation team (from both Marathon and Client) to provide the foundation and expectations for the implementation process. Functional Workgroup Implementation Meeting Within 3 to 6 weeks, Marathon will provide up to 3 members of the implementation team to be onsite at the Client location for a workgroup session/meeting. Other members of the Marathon Implementation Team will join as needed by conference call. Recruitment/Onboarding of Clinical Team Marathon to cover the advertising cost for all staff positions and up to 2 visits to Client site to conduct initial recruitment of clinical team members. Clinical Coverage Plan Marathon to establish and provide coverage plan for clinical staff absences. Clinical Training Marathon will provide initial implementation training for all health center staff during onboarding and onsite at the health center during the go-live week. This includes travel, lodging, meals and materials for shadowing at other Marathon Health centers, orientation week and go-live week. Communication Services Marathon will provide the Pre-Launch Communication Program included in Schedule A. Information Systems: -IT Equipment Marathon will provide computers for each clinical team staff member, printers, copiers and one kiosk. -IT Set Up Marathon to provide an IT staff for set up for up to 2 days at the health center location prior to scheduled go live date. Project Management -Project Manager Client site visits Marathon will provide up to 3 onsite visits by the Project Manager during the implementation process. -Weekly Implementation Calls Marathon will provide weekly implementation calls with the implementation team/Client project manager during implementation process. 21 Schedule A2 PRE-LAUNCH COMMUNICATION MATERIAL Marathon Health shall provide the following standard pre-launch communication material, which are included in the quoted fees. Additional communication material or changes to the following beyond the standard customization will be billed as Additional Services. Pre-Launch Deliverables Description Customization Available Audit/ Strategy/ FAQ Communication audit to understand current practices, target audience, best methods. Strategy document and FAQ/ key message document delivered based on audit results. Services Booklet 4 color booklet describing available services. Company name, center name, logo, photo selection Executive Announcement copy Announcement copy to be delivered by the Client. All custom Posters 4 color, 11x17" posters, including Coming Soon, Now Open, and Confidentiality Company name, center name, logo, photo selection Leadership Toolkit Presentation and FAQ document explaining business drivers to leadership audience Countdown Flyer Sets Set of 6 flyers, 8.5x11", each counting down from the 6 week mark with messaging to build excitement about healthcare at work. Company or center logo Table Tents Laminated, 4 color, 2 sided, 3x4" table tent cards cueing people to expect the welcome package in the mail. Company name, center name, logo, photo selection Welcome Package – Portal Mailer Mailer with a laminated wallet card with health center details and information about accessing the Portal. Company name, center name, logo, photo selection, personalized with username and password Welcome Package – Brochure and Services Roadmap Interactive brochure that describes services available and roadmap for accessing healthcare. Company name, center name, logo, photo selection, hours, location, phone number, center-specific FAQ responses 22 Welcome Package Envelope 9x12" window envelope Company or center logo Magnet 4 color, business card size magnet Company name, center name, logo, location, phone number Open House Postcard 4x6" jumbo 4 color postcard invitation to open house Company name, center name, logo, photo selection, hours, location, phone number, open house date and time Slim Jim 3x8" 4 color rack card, services overview Company name, center name, logo, photo selection, hours, location, phone number, center-specific FAQ responses Meet the Staff 4 color, 8.5x11" flyer Staff photos, bios, company/center name, logo, hours, location, phone number Open House Tours, Marathon Health information table, organize staff participation Open House Raffle Prize Gift basket of wellness/health related items--fitness or healthy cooking themes Standard Open House Giveaways Marathon Health branded giveaways such as pens, jump ropes, lip balm Standard Wall Hangings (15) 4 color, 24x36" posters (clings or framed) with health and wellness reminders and services overviews Standard 23 Schedule B FEES AND PAYMENT SCHEDULE Service fees: Fees for the initial year of this agreement are as follows: Annual Service Fee ....................................................................................... $200,173 Fees for optional services: Onsite Pre-Packaged Pharmaceuticals ........................................................... At cost For drugs paid for directly by the Client. No additional fees are charged for drugs paid for by patients or through health plan claims. Flu vaccinations ................................................................................... At current rates Includes the acquisition of the vaccine and supplies for administering in the health center by existing staff (excludes the administering through a mass flu clinic). Additional Services ............................................................................ At current rates Fees for services requested beyond the scope outlined in the schedules above will be billed at Marathon’s then current standard rates, and may require authorization via a Statement of Work executed by the Client. Additional service days’ onsite are billed at a minimum of eight (8) hours per day for each day requested, and Client shall reimburse Marathon for all out-of-pocket expenses incurred in connection with the services, including travel expenses. Marathon will use reasonable efforts to adhere to Client’s travel reimbursement policy, if provided by Client. Payment schedule: Service fees are invoiced and payable as follows: - 1/12 of Annual Service Fees at beginning of each month of service - Dispensed pharmaceutical charges, billable travel costs, Additional Services, and other unexpected costs incurred as a result of service modifications requested by Client as incurred. At Risk Fees and Pay for Performance 10% of the Annual Service Fees for the initial three year term of this agreement are “at- risk” to Marathon Health and are subject to achieving the performance metrics outlined in the Marathon Health Pay for Performance Plan summarized in Schedule B1. 24 Schedule B1 PAY FOR PERFORMANCE PLAN Triple Aim The Marathon Health Pay for Performance Plan is based on achievement of key metrics covering the three dimensions relating to optimizing healthcare delivery and overall health of a population. The three dimensions are: • Improving the Patient Experience • Improving the Health of the Population • Reducing the Per Capita Cost The 10% of the annual base service fees for the initial three year term of this agreement that are “at-risk” will be attributed to these three dimensions in the following manner: Year 1 Year 2 Year 3 Improving the Patient Experience 2.5% 2.5% 2.5% Improving the Health of the Population 5.0% 5.0% 5.0% Reducing the Per Capita Cost 2.5% 2.5% 2.5% Total 10% 10% 10% Marathon’s performance, requirements of the Client and fee credits for each of the three dimensions are detailed below. If the Client has not fulfilled all of its requirements for any dimension during a given year, then no fee credit will be due the Client for that dimension for that year. 25 IMPROVING THE PATIENT EXPERIENCE – PATIE NT SATISFACTION Marathon’s Performance Employees will rate whether they are satisfied with their overall experience with Marathon Health using satisfaction surveys. Fee Credits The portion of at-risk fees attributable to Improving the Patient Experience will be credited back to the Client in accordance with the following scale: % of Employees Satisfied or Very Satisfied 90+% 0% credited to Client 85+% 50% credited to Client 80+% 75% credited to Client < 80% 100% credited to Client 26 IMPROVING THE HEALTH OF THE POPULATION – HEALTH OUTCOMES Marathon’s Performance Patients with the following risk conditions will achieve health improvements as follows: % of Participants with the Condition that Achieve the Results Eligible Participants with the Following Conditions Will Achieve the Following Results Minimum target for Year 1 Minimum target for Year 2 Minimum Target for Year 3 1 Systolic BP >= 140 Reduce by 12 mmHg or normal 30.0% 35.0% 40.0% 2 Diastolic BP >= 90 Reduce by 5 mmHg or normal 30.0% 35.0% 40.0% 3 Glucose > 100 Reduce 15% or normal 10.0% 12.5% 15.0% 4 Tot. Cholesterol > 200 Reduce 10% or normal 10.0% 12.5% 15.0% 5 LDL Cholesterol > 160 Reduce 10% or normal 10.0% 12.5% 15.0% 6 HDL Cholesterol M<40, F<50 Increase 10% or normal 10.0% 12.5% 15.0% 7 Triglycerides > 200 Reduce 20% or normal range 10.0% 12.5% 15.0% 8 Overweight / Obesity Reduce weight 5% or BMI normal 3.0% 4.0% 5.0% 9 Smokers Quit for at least 90 days 3.0% 4.0% 5.0% Participants Under Marathon’s Care with the Following conditions Will Achieve the Following Results Minimum target for Year 1 Minimum target for Year 2 Minimum Target for Year 3 10 Diabetics Maintain average Hemoglobin A1C <= 7.5 10.0% 12.5% 15.0% 11 Diabetics At the standard of care (or not applicable) for 5 out of 6: • Pneumococcal at least once • Influenza • Hepatitis B at least once • Self-Glucose Monitoring OR Hemoglobin A1c Result exists at least 2 times per 12 month period • Foot Exam • Eye Exam 75.0% 75.0% 75.0% 12 Asthmatics At the standard of care (or not applicable) for 5 out of 7: • Influenza • Pneumococcal at least once • Use of inhaled corticosteroid for those with persistent Asthma • Asthma Action Plan • Use of a short acting bronchodilator • Spirometry resulted • Medications appropriate for severity 75.0% 75.0% 75.0% The look-back period is 12 months in Year 1 and 18 months in subsequent years. 27 Fee Credits The portion of at-risk fees attributable to Improving the Health of the Population will be credited back to the Client in accordance with the following scale: # of Categories from the Above Table in Which the Minimum Target was Reached 7-12 0% credited to Client 4-6 50% credited to Client 2-3 75% credited to Client < 2 100% credited to Client REDUCING THE PER CAPITA COST – REDUCE PMPM COST TREND Marathon’s Performance Client’s expected PMPM medical claims cost for the eligible population, net of fees paid to Marathon, will be reduced as follows: Year 1 Year 2 Year 3 Approximate Gross Reduction 7% 11% 13% Net Reduction Target 0% 4% 6% This is computed as follows: • Client’s expected year 1 PMPM medical claims costs for the eligible population, excluding large cost claimants of $50,000 or above, are agreed upon between Marathon & Client. • Expected year 2 PMPM costs are computed by increasing expected year 1 costs by 9% for medical inflation. Expected year 3 PMPM costs are computed by increasing expected year 2 costs by 9% for medical inflation. • Actual PMPM medical claims costs for each year, excluding large cost claimants of $50,000 or above, are obtained and compared to the expected costs to arrive at the Actual Gross Reduction in PMPM Cost. • The Actual Gross Reduction in PMPM Cost is decreased by the PMPM fee paid to Marathon to arrive at the Actual Net Reduction in PMPM Cost. The Actual Net Reduction in PMPM Cost is divided by the expected PMPM cost for the year to determine the Actual Net Reduction Percentage. 28 Fee Credits The portion of at-risk fees attributable to Reducing the Per Capital Cost will be credited back to the Client in accordance with the following scale: Variance of Actual Net Reduction Percentage from the Net Reduction Target +/-1% (e.g. 5%-7% reduction vs. a 6% target) 0% credited to Client 1%-3% under (e.g. 3%-5% reduction vs. a 6% target) 50% credited to Client 3%-5% under (e.g. 1%-3% reduction vs. a 6% target) 75% credited to Client 5+% under (e.g. 1-% reduction vs. a 6% target) 100% credited to Client Requirements of Client For Marathon’s fees to be at-risk under this plan, the following requirements of the Client apply: • Facilitate an annual electronic satisfaction survey of employees within 60 days (+/-) of the end of each contract year. • A minimum of 40% of the eligible employee population must participate in a separate mass health screening, including biometrics and health risk assessment, within 3 months (+/-) of the Commencement Date, and annually thereafter. Marathon can arrange biometric screening services from its preferred partner to assist Client in meeting this requirement. • For use of the health center, if the Client requires high co-payments from participants, requires employees to “punch out”, locates the health center offsite, or has other significant restrictions on its use, then a minimum of 50% of the eligible population must have at least one acute care or health coaching visit in the clinic during each contract year. • Provide information on PMPM medical claims cost and large cost claimants of $50,000 or above for at least the 2 years immediately preceding year 1 of the Agreement. • Provide the expected PMPM medical claims cost, net of and large cost claimants of $50,000 or above, for year 1, reflective of the impact of any health plan design changes for that year. 29 • Provide information on PMPM medical claims cost and large cost claimants of $50,000 or above within 60 days of the end of each contract year. • The medical claims data referred to in Section 6.6 must be received as scheduled. • Client must utilize Marathon Health branded or co-branded material in the pre- launch communication as described in Schedule A. Master City of Coppell, Texas 255 E. Parkway Boulevard Coppell, Texas 75019-9478 File Number: 2018-4232 File ID: Type: Status: 2018-4232 Agenda Item Agenda Ready 1Version: Reference: In Control: Parks and Recreation 10/16/2018File Created: Final Action: CCG AgreementFile Name: Title: Consider approval of the Coppell Community Garden Management Agreement, as budgeted; and authorizing the City Manager to sign the necessary documents. Notes: Agenda Date: 10/23/2018 Agenda Number: C. Sponsors: Enactment Date: Memo.pdf, Agreement.pdfAttachments: Enactment Number: Hearing Date: Contact: Effective Date: Drafter: History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 10/23/2018City Council Text of Legislative File 2018-4232 Title Consider approval of the Coppell Community Garden Management Agreement, as budgeted; and authorizing the City Manager to sign the necessary documents. Summary See attached memo. Fiscal Impact: Funds have been budgeted in Community Programs, Other Professional Services for this agreement. 01-12-708-4220 Staff Recommendation: The Parks and Recreation Department recommends approval. Page 1City of Coppell, Texas Printed on 10/19/2018 Master Continued (2018-4232) Goal Icon: Sustainable City Government Business Prosperity Community Wellness and Enrichment Sense of Community Special Place to Live Page 2City of Coppell, Texas Printed on 10/19/2018 1 MEMORANDUM To: Mayor and City Council From: Brad Reid, Director of Parks and Recreation Date: October 23, 2018 Reference: Consent for reapproval of Coppell Community Garden Management Agreement and authorizing the City Manager to sign the necessary documents. 2030: Sense of Community Special Place to Live Community Wellness and Enrichment Introduction: The Coppell Farmers Market (CFM) is a vital community enterprise with the Main Street Coppell Development, creating energy and vitalization in the Old Coppell area. It has become an integral part of the Coppell 2030 Vision and Coppell Living Well in Coppell initiative, bringing healthy local food options, a social outlet and gathering opportunities to the citizens of Coppell. With the Council goal to maintain the Coppell Farmers Market as one of the best in the region, the Coppell Community Garden Corp (CCGC) was authorized additional City support to ensure continued successful market management. Analysis: The purpose of this consent item is to approve the annual Management Agreement and funding for the CCGC. The funds allocated by the City to the nonprofit will remain unchanged with the 18-19 agreement. Managed by volunteers and operating 40 plus days/year, the market has far surpassed estimated increases in customer attendance since the move to the pavilion in April of 2014 (attendance 2000/market day). In order for the market to continue to surpass the expectations of the community and have sustainable success, non-profit contractual services for a Market Manager were completed to remove the increased workload of the volunteers. This CFM strategic plan budget item was approved by Council in the FY 15-16 budget and has been implemented since to ensure the stability and success of the CFM. The current Market Manager has been in place for over two years and has significantly contributed to, and helped sustain the high standards set by the CCGC that have placed the market as one of the 2 best in the region. The Market Manager has also established operating procedures and processes that will ensure continuity in operations into the future. Legal Review: Legal review completed by Nichols, Jackson, Dillard, Hager & Smith, L.L.P. Fiscal Impact: The City of Coppell currently provides $25,000 quarterly to the Coppell Community Garden Corporation. The Management Agreement is established at $100,000 annually for the Market Manager services, as well as supplies and resource support for both the Coppell Farmers Market and Coppell Community Garden programs. Recommendation: The Parks and Recreation Department recommends approval of this item. Master City of Coppell, Texas 255 E. Parkway Boulevard Coppell, Texas 75019-9478 File Number: 2018-4220 File ID: Type: Status: 2018-4220 Agenda Item Agenda Ready 1Version: Reference: In Control: Parks and Recreation 10/15/2018File Created: Final Action: Cemetery ExpansionFile Name: Title: Consider approval of award of a professional services agreement with MKEC Engineering, Inc., in the amount of $591,580.00; as provided for in the bond proceeds; to develop plans and specifications for the Rolling Oaks Memorial Center Expansion Project; and authorizing the City Manager to sign all necessary documents. Notes: Agenda Date: 10/23/2018 Agenda Number: D. Sponsors: Enactment Date: Memo.pdf, Agreement.pdf, Site Plan.pdfAttachments: Enactment Number: Hearing Date: Contact: Effective Date: Drafter: History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 10/23/2018City Council Text of Legislative File 2018-4220 Title Consider approval of award of a professional services agreement with MKEC Engineering, Inc., in the amount of $591,580.00; as provided for in the bond proceeds; to develop plans and specifications for the Rolling Oaks Memorial Center Expansion Project; and authorizing the City Manager to sign all necessary documents. Summary See attached memo Fiscal Impact: The fiscal impact of this agenda item is $591,580.00 as provided for in the bond proceeds. Page 1City of Coppell, Texas Printed on 10/19/2018 Master Continued (2018-4220) Staff Recommendation: Approval recommended. Goal Icon: Community Wellness and Enrichment Page 2City of Coppell, Texas Printed on 10/19/2018 1 MEMORANDUM To: Mayor and City Council From: Brad Reid, Parks and Recreation Director Date: October 23, 2018 Reference: Consider approval of award of a professional services agreement with MKEC Engineering, Inc., in the amount of $591,580.00, to develop plans and specifications for the Rolling Oaks Memorial Center Expansion Project and authorizing the City manager to sign all necessary documents. 2030: Community Wellness and Enrichment: Excellent and Well-Maintained City Infrastructure and Facilities Introduction: The City Council approved the Rolling Oaks Memorial Cemetery Master Plan in the May 9, 2017 meeting. The February 27, 2018 Council meeting included an update and discussion on the master plan to establish the options and features to be included in the phase II expansion. The next step in the process is the award of a professional services contr act with MKEC Engineering, Inc., to develop plans and specifications for this project. MKEC has partnered with Tim Hansen, ASLA, Landscape Architect who together have provided services to over 250 cemeteries, many of them municipal in the past 30 years. They have established a construction and development relationship with Service Corporation International (SCI), world’s largest funeral and cemetery corporation. Their experience with SCI has provided them with insights into operations, policies, and standards that few consultants have. SCI is the parent company of the Rolling Oaks Funeral Home. Analysis: The current capacity of the developed property is 3,937 adult single depth burials, 268 infant spaces and 485 columbarium niches for a total phase one capacity of approximately 4,700 spaces (double depth burials were approved as an option in 2015). Fifty two percent of the total available burial rights is sold to date. The average number of spaces sold in 2014 and 2015 is 7 17. If this trend continues the remaining 2440 burial rights would be sold by the year 2020. However, the sold properties and niches have been what families have considered the most desirable property options that the Rolling Oaks Memorial Center offers. The remaining ground spaces are in locations near Freeport Pkwy. or distant 2 from trees and other site amenities making them “remaining” choice properties. Columbarium niches are structured 10 levels high and either single or double space. The middle levels and double niches are selling first, once again leaving fewer preferred options for future families. Numerous families, denominational and cultural groups have expressed an interest in burial options that are not currently available at ROMC including: • Private family estates • Family mausoleums • Community mausoleums • Denominational and nondenominational gardens • Cultural gardens • Prayer chapel • Statues • Committal chapel • Outdoor cremation niches The revised master plan includes the burial options and amenities that have been identified by the community and that are current industry offerings. The next phase expansion project takes advantage of the existing infrastructure to minimize costs but achieve the goal of adding desired amenities and provides the flexibility to modify gardens to accommodate estates of various configurations. Legal Review: The attached agreement was reviewed and approved by legal counsel. Fiscal Impact: The fiscal impact of this agenda item is $591,580.00 as provided for in the bond proceeds. Recommendation: The Parks and Recreation Department recommends approval of this item. Professional Services Agreement: Rolling Oaks Memorial Expansion Project Page 1 TM 103153 PROFESSIONAL SERVICES AGREEMENT THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made as of the Effective Date by and between MKEC Engineering, Inc., hereinafter called "ENGINEER" or “MKEC”, and the City of Coppell, Texas, hereinafter called "OWNER" or “City”. RECITALS WHEREAS, OWNER desires ENGINEER to perform certain work and services set forth in Section 1, Scope of Services. WHEREAS, ENGINEER has expressed a willingness to perform said work and services, hereinafter referred to only as "services", specified in said Scope of Services, and enumerated under Section 1, of this Agreement. NOW, THEREFORE, for and in consideration of the covenants and promises made one to the other herein, OWNER and ENGINEER agree as follows: Section 1. Scope of Services Upon issuance of a written Notice to Proceed by OWNER, ENGINEER agrees to provide to OWNER the necessary professional engineering services related to the preparation of plans and specifications for the Rolling Oaks Memorial Center Expansion Project as set forth in the Scope of Services attached hereto as Attachment “A” and incorporated herein by reference (“the Scope of Services”). Section 2. Term of Agreement The term of this Agreement shall begin on the last date of execution hereof (the “Effective Date”) and shall continue until ENGINEER completes the services required herein to the satisfaction of OWNER, unless sooner terminated as provided in Section 8, below. Section 3. Engineer Obligations A.ENGINEER shall devote such time as reasonably necessary for the satisfactory performance of the work under this Agreement. Should OWNER require additional services not included under this Agreement, ENGINEER shall make reasonable effort to provide such additional services at mutually agreed charges or rates, and within the time schedule prescribed by OWNER; and without decreasing the effectiveness of the performance of services required under this Agreement. B. To the extent reasonably necessary for ENGINEER to perform the services under this Agreement, ENGINEER shall be authorized to engage the services of any agents, assistants, persons, or corporations that ENGINEER may deem proper to aid or assist in the performance of the services under this Agreement with the prior written approval of OWNER. The cost of such personnel and assistance shall be a reimbursable expense to ENGINEER only if authorized in writing in advance by OWNER. Professional Services Agreement: Rolling Oaks Memorial Expansion Project Page 2 TM 103153 C.ENGINEER shall furnish and pay for all labor, tools, materials, equipment, supplies, transportation and management necessary to perform all services set forth in the Scope of Services. Section 4. Payment A. OWNER agrees to pay ENGINEER for all services authorized in writing and properly performed by ENGINEER in accordance with the Payment Schedule set forth in Attachment “A,” attached hereto and incorporated herein by reference, subject to additions or deletions for changes or extras agreed upon in writing. All fees paid to ENGINEER by OWNER shall be based on invoices submitted by ENGINEER for work performed monthly by ENGINEER, less any previous payments. Payments shall be made within 30 days of receipt of invoice by OWNER. B. OWNER reserves the right to delay, without penalty, any partial payment when, in the opinion of OWNER, ENGINEER has not made satisfactory progress on the design of this Project based on the Scope of Services and the Completion Schedule Estimate. C. The Total Base Contract Fee shall not exceed $591,580. OWNER may deduct from any amounts due or to become due to ENGINEER any sum or sums owing by ENGINEER to OWNER. In the event of any breach by ENGINEER of any provision or obligation of this Agreement, or in the event of the assertion by other parties of any claim or lien against OWNER, or the OWNER's premises, arising out of ENGINEER's performance of this Agreement, OWNER shall have the right to retain out of any payments due or to become due to ENGINEER an amount sufficient to completely protect the OWNER from any and all loss, damage or expense therefrom, until the breach, claim or lien has been satisfactorily remedied or adjusted by ENGINEER. Section 5. Responsibilities A.ENGINEER shall be responsible for the professional quality, technical accuracy, and the coordination of all designs, drawings, specifications, plans and other services furnished by ENGINEER under this Agreement. ENGINEER shall, without additional compensation, correct or revise any errors or deficiencies in the design, drawings, specifications, plans and other services. B. Neither OWNER's review, approval or acceptance of, nor payment for any of the services required under this Agreement, shall be construed to operate as a waiver of any rights under this Agreement or of any cause of action arising out of the performance of this Agreement, and ENGINEER shall be and remain liable to OWNER in accordance with applicable law for all damages to OWNER caused by ENGINEER's negligent performance of any of the services furnished under this Agreement. C. The rights and remedies of OWNER under this Agreement are as provided by law. Section 6. Time For Performance A.ENGINEER shall perform all services as provided for under this Agreement in a proper, efficient and professional manner in accordance with OWNER's requirements. As time is Professional Services Agreement: Rolling Oaks Memorial Expansion Project Page 3 TM 103153 of the essence of this Agreement, such services shall be completed within ninety (90) calendar days after written Notification to Proceed from OWNER to ENGINEER, exclusive of OWNER and other governmental review time. B. In the event ENGINEER's performance of this Agreement is delayed or interfered with by acts of the OWNER or others, ENGINEER may request an extension of time for the performance of same as hereinafter provided, but shall not be entitled to any increase in fee or price, or to damages or additional compensation as a consequence of such delays. C. No allowance of any extension of time, for any cause whatever, shall be claimed or made to ENGINEER unless ENGINEER shall have made written request upon OWNER for such extension within forty-eight (48) hours after the cause for such extension occurred, and unless OWNER and ENGINEER have agreed in writing upon the allowance of additional time to be made. Section 7. Documents A.All surveys, studies, proposals, applications, drawings, plans, specifications and other documents, including those in electronic form, prepared by ENGINEER and its consultants, subcontractors, agents, representatives, and/or employees in connection with this Agreement (“Project Documents”) are intended for the use and benefit of OWNER. ENGINEER and its consultants, subcontractors, agents, representatives, and/or employees shall be deemed the authors of their respective part of the Project Documents. Notwithstanding, OWNER shall own, have, keep and retain all rights, title and interest in and to all Project Documents, including all ownership, common law, statutory, and other reserved rights, including copyrights (except copyrights held by the ENGINEER) in and to all Project Documents, whether in draft form or final form, which are produced at OWNER’s request and in furtherance of this Agreement. OWNER shall have full authority to authorize contractor(s), subcontractors, sub-subcontractors, OWNER consultants, and material or equipment suppliers to reproduce applicable portions of the Project Documents to and for use in their execution of the work or for any other purpose. All materials and reports prepared by ENGINEER in connection with this Agreement are “works for hire” and shall be the property of OWNER. OWNER shall have the right to publish, disclose, distribute and otherwise use Project Documents in accordance with the Engineering Practice Act of the State of Texas (Texas Occupation Code, Chapter 1001, as amended) and/or Texas Occupations Code, Chapter 1051, as amended. ENGINEER shall, upon completion of the services and full payment for the ENGINEER’S services by the OWNER, or earlier termination and appropriate compensation as provided by this Agreement, provide OWNER with reproductions of all materials, reports, and exhibits prepared by ENGNIEER pursuant to this Agreement in a TIFF, JPEG or PDF format, and a DXF format in current version of AutoCAD with NAD-83 coordinate format of all such instruments of service to the OWNER. B. All instruments of service (including plans, specifications, drawings, reports, designs, computations, computer programs, estimates, surveys, other data or work items, etc.) prepared under this Agreement shall be submitted for approval of OWNER. All instruments of service shall be professionally sealed as may be required by law or by OWNER. C. Acceptance and approval of the Project Documents by OWNER shall not constitute nor be deemed a release of the responsibility and liability of ENGINEER, its employees, Professional Services Agreement: Rolling Oaks Memorial Expansion Project Page 4 TM 103153 associates, agents and Engineers for the accuracy or competency of their designs, working drawings and specifications, or other documents and work; nor shall such approval be deemed to be an assumption of such responsibility by OWNER for any defect in the designs, working drawings and specifications, or other documents prepared by ENGINEER, its employees, contractor, agents and engineers. Section 8. Termination A.OWNER may suspend or terminate this Agreement for cause or without cause at any time by giving written notice to ENGINEER. In the event suspension or termination is without cause, payment to ENGINEER, in accordance with the terms of this Agreement, will be made on the basis of services reasonably determined by OWNER to be satisfactorily performed to the date of suspension or termination. Such payment will be due upon delivery of all instruments of service to OWNER. B. Should OWNER require a modification of this Agreement with ENGINEER, and in the event OWNER and ENGINEER fail to agree upon a modification to this Agreement, OWNER shall have the option of terminating this Agreement and ENGINEER's services hereunder at no additional cost other than the payment to ENGINEER, in accordance with the terms of this Agreement, for the services reasonably determined by OWNER to be properly performed by ENGINEER prior to such termination date. Section 9. Insurance A.ENGINEER shall during the term hereof maintain in full force and effect the following insurance: (i) a comprehensive general liability policy of insurance for bodily injury, death and property damage insuring against all claims, demands or actions relating to the ENGINEER’s performance of services pursuant to this Agreement with a minimum combined single limit of not less than $2,000,000.00 per occurrence for injury to persons (including death), and for property damage; (ii) an automobile liability insurance policy covering any vehicles owned and/or operated by ENGINEER, its officers, agents, and employees, and used in the performance of this Agreement with policy limits of not less than $1,000,000.00 combined single limit and aggregate for bodily injury and property damage; (iii) statutory Worker’s Compensation Insurance at the statutory limits and Employers Liability covering all of ENGINEER’s employees involved in the provision of services under this Agreement with policy limit of not less than $1,000,000.00; and (iv) Professional Liability covering negligent acts, errors and omissions in the performance of professional services with policy limit of not less than $1,000,000.00 per claim and $3,000,000.00 in the aggregate. B. All insurance and certificate(s) of insurance shall contain the following provisions: Professional Services Agreement: Rolling Oaks Memorial Expansion Project Page 5 TM 103153 (i) name the CITY, its officers, and employees as additional insureds as to all applicable coverage with the exception of Workers Compensation Insurance and Professional Liability; (ii) provide for at least thirty (30) days prior written notice to the CITY for cancellation of the insurance; and (iii) provide for a waiver of subrogation against the CITY for injuries, including death, property damage, or any other loss to the extent the same is covered by the proceeds of insurance, except for Professional Liability Insurance. C. All insurance companies providing the required insurance shall be authorized to transact business in Texas and rated at least “A” by AM Best or other equivalent rating service. D. A certificate of insurance evidencing the required insurance and all endorsements shall be delivered to CITY prior to commencement of services. Section 10. Indemnification. ENGINEER HEREBY COVENANTS AND CONTRACTS TO WAIVE ANY AND ALL CLAIMS, RELEASE, INDEMNIFY, AND HOLD HARMLESS OWNER, ITS CITY COUNCIL, OFFICERS, EMPLOYEES, AND AGENTS, FROM AND AGAINST ALL LIABILITY, CAUSES OF ACTION, CITATIONS, CLAIMS, COSTS, DAMAGES, DEMANDS, EXPENSES, FINES, JUDGMENTS, LOSSES, PENALTIES OR SUITS, CAUSED BY OR RESULTING FROM THE NEGLIGENCE, INTENTIONAL TORT, INTELLECTURAL PROPERTY INFRINGEMENT, OR FAILURE TO PAY A SUBCONTRACTOR OR SUPPLIER COMMITTED BY ENGINEER, ITS AGENT, ITS CONSULTANT UNDER CONTRACT, OR ANY OTHER ENTITY OVER WHICH ENGINEER EXERCISES CONTROL, SUBJECT TO THE LIMITATIONS IN TEXAS LOCAL GOVERNMENT CODE §271.904 AND TEXAS CIVIL PRACTICE AND REMEDIES CODE, §130.002(b). INDEMNIFIED ITEMS SHALL INCLUDE REASONABLE ATTORNEYS’ FEES AND COSTS, COURT COSTS, AND SETTLEMENT COSTS IN PROPORTION TO THE PROFESSIONAL’S LIABILITY. The ENGINEER’S OBLIGATIONS UNDER THIS SECTION 10 SHALL NOT BE LIMITED TO THE LIMITS OF COVERAGE OF INSURANCE MAINTAINED OR REQUIRED TO BE MAINTAINED BY ENGINEER UNDER THIS AGREEMENT. THIS PROVISION SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT. Section 11. Assignment ENGINEER shall not assign or sublet this Agreement, or any part thereof, without the prior written consent of OWNER. Section 12. Applicable Laws ENGINEER shall comply with all Federal, State, County and Municipal laws, ordinances, regulations, safety orders, resolutions and building codes relating or applicable to services to be performed under this Agreement. The laws of the State of Texas shall govern this Agreement; and Professional Services Agreement: Rolling Oaks Memorial Expansion Project Page 6 TM 103153 venue for any action concerning this Agreement shall be in the State District Court of Dallas County, Texas. The Parties agree to submit to the personal and subject matter jurisdiction of said court. Section 13. Default of Engineer In the event ENGINEER fails to comply or becomes disabled and unable to comply with the provisions of this Agreement as to the quality or character of the service or time of performance, and the failure is not corrected within ten (10) days after written notice by OWNER to ENGINEER, OWNER may, at its sole discretion without prejudice to any other right or remedy: A. Terminate this Agreement and be relieved of the payment of any further consideration to ENGINEER except for all work determined by OWNER to be satisfactorily completed prior to termination. Payment for work satisfactorily completed shall be for actual costs, including reasonable salaries and travel expenses of ENGINEER to and from meetings called by OWNER at which ENGINEER is required to attend, but shall not include any loss of profit of ENGINEER and shall in no case exceed the maximum amount to be paid in accordance with Section 4, above. In the event of such termination, OWNER may proceed to complete the services in any manner deemed proper by OWNER, either by the use of its own forces or by subletting to others. B. OWNER may, without terminating this Agreement or taking over the services, furnish the necessary materials, equipment, supplies and/or help necessary to remedy the situation, at the expense of ENGINEER. Section 14. Adjustments in Services No claims for extra services, additional services or changes in the services will be made by ENGINEER without a written agreement with OWNER prior to the performance of such services. Section 15. Execution becomes Effective This Agreement will be effective upon execution of the Agreement by and between ENGINEER and OWNER. Section 16. Agreement Amendments This Agreement contains the entire understanding of the Parties with respect to the subject matter hereof. There are no oral understandings, statements or stipulations bearing upon the meaning or effect of this Agreement which have not been incorporated herein. This Agreement may only be modified, amended, supplemented or waived by a written instrument executed by the parties except as may be otherwise provided therein. Section 17. Severability. In the event any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality or Professional Services Agreement: Rolling Oaks Memorial Expansion Project Page 7 TM 103153 unenforceability shall not affect any other provisions, and the Agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained in it. Section 18. Independent Contractor. It is understood and agreed by and between the Parties that ENGINEER in satisfying the conditions of this Agreement is acting independently and that the OWNER assumes no responsibility or liabilities to any third party in connection with ENGINEER’s actions. All services to be performed by ENGINEER pursuant to this Agreement shall be in the capacity of an independent contractor, and not as an agent or employee of OWNER. ENGINEER shall supervise the performance of its services and shall be entitled to control the manner and means by which its services are to be performed, subject to the terms of this Agreement. There is no intended third party beneficiary to this Agreement. Section 19. Right-Of-Access. OWNER will obtain and/or furnish right-of-access on any project site for ENGINEER to perform any required studies, surveys, tests or other necessary investigations in relation to any Task Order. ENGINEER will take reasonable precautions to minimize damage to the personal or real property in the performance of such surveys, tests, studies and investigations. Section 20. Notice. Any notice required or permitted to be delivered hereunder may be sent by first class mail, overnight courier or by confirmed telefax or facsimile to the address specified below, or to such other party or address as either party may designate in writing, and shall be deemed received three (3) days after delivery set forth herein: Professional Services Agreement: Rolling Oaks Memorial Expansion Project Page 8 TM 103153 If to OWNER: (Physical Address) (Mailing address): (With copy to): Director of Parks and Recreation City of Coppell 255 Parkway Blvd. Coppell, Texas 75019 P.O. Box 9478 Coppell, TX 75019 Robert E. Hager Nichols, Jackson, Dillard, Hager & Smith, L.L.P. 1800 Ross Tower 500 North Akard Dallas, Texas 75201 If to ENGINEER: _________________________ MKEC Engineering, Inc. 411 N. Webb Road Wichita, KS 67206 Section 21. Counterparts. This Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same instrument. Each counterpart may consist of any number of copies hereof each signed by less than all, but together signed by all of the parties hereto. Section 22. Exhibits and Attachments. The exhibits and/or attachments attached hereto are incorporated herein and made a part hereof for all purposes. To the extent there is a conflict between this Agreement and an exhibit and/or attachment, the terms of this Agreement shall prevail. Section 23. Survival of Obligations. Any of the representations and obligations of the parties, as well as any rights and benefits of the parties pertaining to a period of time following the termination of this Agreement shall survive termination. Section 24. Prohibition of Boycott Israel. ENGINEER verifies that it does not Boycott Israel, and agrees that during the term of this Agreement will not Boycott Israel as that term is defined in Texas Government Code Section 808.001, as amended. (Signature page to follow) Executive Vice President Professional Services Agreement: Rolling Oaks Memorial Expansion Project Page 9 TM 103153 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the dates indicated below. OWNER: ENGINEER: City of Coppell, Texas MKC Engineering, Inc. By: __________________________By:______________________________ Mike Land, City Manager By: __________________________ Date:___________________________ ATTEST: Date:______________________________ ______________________________ Christal Petinos, City Secretary APPROVED AS TO FORM: ______________________________ Robert E. Hager, City Attorney Matt Bengtson 10/16/2018 Attachment “A” to Professional Services Agreement: Rolling Oaks Expansion Project Page 1 TM 103153 Attachment A – Scope of Services Attachment “A” to Professional Services Agreement: Rolling Oaks Expansion Project Page 1 TM 103153 Attachment “A” to Professional Services Agreement: Rolling Oaks Expansion Project Page 2 TM 103153 Attachment “A” to Professional Services Agreement: Rolling Oaks Expansion Project Page 3 TM 103153 Attachment “A” to Professional Services Agreement: Rolling Oaks Expansion Project Page 4 TM 103153 Attachment “A” to Professional Services Agreement: Rolling Oaks Expansion Project Page 1 TM 103153 Attachment “A” to Professional Services Agreement: Rolling Oaks Expansion Project Page 1 TM 103153 Master City of Coppell, Texas 255 E. Parkway Boulevard Coppell, Texas 75019-9478 File Number: 2018-4235 File ID: Type: Status: 2018-4235 Agenda Item Agenda Ready 1Version: Reference: In Control: City Secretary 10/16/2018File Created: Final Action: Arts Center Materials TestingFile Name: Title: Consider approval of a contract with Kleinfelder, Inc. to provide materials engineering and testing services for the Coppell Arts Center construction project, in an amount of $93,275.00, as provided for in the bond proceeds; and authorize the City Manager to sign all necessary documents. Notes: Agenda Date: 10/23/2018 Agenda Number: E. Sponsors: Enactment Date: 1 Art Center-Kleinfelder Contract Memo.pdf, 2 Kleinfelder Agreement.pdf Attachments: Enactment Number: Hearing Date: Contact: Effective Date: Drafter: History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 10/23/2018City Council Text of Legislative File 2018-4235 Title Consider approval of a contract with Kleinfelder, Inc. to provide materials engineering and testing services for the Coppell Arts Center construction project, in an amount of $93,275.00, as provided for in the bond proceeds; and authorize the City Manager to sign all necessary documents. Summary Fiscal Impact: The fiscal impact of this contract approval is $93,275.00, as provided for in the bond proceeds. Staff Recommendation: Page 1City of Coppell, Texas Printed on 10/19/2018 Master Continued (2018-4235) Approval recommended. Goal Icon: Sustainable City Government Business Prosperity Community Wellness and Enrichment Sense of Community Special Place to Live Page 2City of Coppell, Texas Printed on 10/19/2018 1 MEMORANDUM To: Mayor and City Council From: Kent Collins, P.E., Director of Public Works Date: October 23, 2018 Reference: Materials Testing Contract for Coppell Arts Center 2030: Sustainable City Government, Goal 3 Excellent and Well-maintained City Infrastructure and Facilities General Information: • Scope of Coppell Art Center includes the construction of the building, vehicular paving, utilities and landscaping. • Planned start of construction Fall 2018 • Estimated completion first quarter 2020 • Materials testing services are required to ensure compliance with specifications Introduction: This agenda item is to consider approval of a contract with Kleinfelder, Inc. to provide materials engineering and testing services on the Coppell Arts Center construction project with a contract value of $93,275.00, to be funded through bond proceeds. Analysis: Kleinfelder was one of the firms that was placed on the city’s approved consultant list following a request for statement of qualifications (SOQ) process completed in 2017. The Kleinfelder team is familiar with the elements of this project as well as best practices to ensure proper testing of the materials utilized and placed during construction. The cost of the materials testing equates to approximately 0.5% of the estimated construction cost. Legal Review: This is a standard contract form utilized on previous agreement with Kleinfelder. A Master Services Agreement is in place with Kleinfelder. 2 Fiscal Impact: The fiscal impact of this contract approval is $93,275.00, as provided for in the bond proceeds. Recommendation: The Engineering Department recommends approval of this contract with Kleinfelder, Inc. Master City of Coppell, Texas 255 E. Parkway Boulevard Coppell, Texas 75019-9478 File Number: 2018-4228 File ID: Type: Status: 2018-4228 Agenda Item Agenda Ready 1Version: Reference: In Control: Fire 10/16/2018File Created: Final Action: Fire UniformsFile Name: Title: Consider approval of award RFB# Q-1019-02 for the Fire Department clothing contracts with Five Star Embroidery and Gall’s, with an annual purchase amount of $75,355.00; as budgeted; and authorizing the City Manager to sign. Notes: Agenda Date: 10/23/2018 Agenda Number: F. Sponsors: Enactment Date: Staff Memo-FD Clothing Contracts.pdf, 2018 RFB Fire Department Clothing Contract.pdf, Total Vendor Amounts per Specs.pdf Attachments: Enactment Number: Hearing Date: Contact: Effective Date: Drafter: History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 10/23/2018City Council Text of Legislative File 2018-4228 Title Consider approval of award RFB# Q-1019-02 for the Fire Department clothing contracts with Five Star Embroidery and Gall’s, with an annual purchase amount of $75,355.00; as budgeted; and authorizing the City Manager to sign. Summary This agenda item is being presented for approval to award material purchase contracts to Five Star Embroidery and Gall’s for the purchase of Fire Department clothing. Fiscal Impact: Page 1City of Coppell, Texas Printed on 10/19/2018 Master Continued (2018-4228) The fiscal impact of this Agenda item is $75,355.00. The funds are budgeted in the Fire Departments annual budget for FY18-19. Staff Recommendation: The Fire Department recommends approval of the contracts with Five Star Embroidery and Gall’s. Goal Icon: Sustainable City Government Page 2City of Coppell, Texas Printed on 10/19/2018 MEMORANDUM TO: Mayor and City Council FROM: Kevin Richardson, Fire Chief DATE: October 9, 2018 RE: Fire Department Clothing Contracts General: • We received 4 bids. • Two vendors were selected to provide the best value and service to the Fire Department. • This contract will cover yearly replacements for worn, damaged or contaminated Fire Departments clothing as well as new clothing for new hires. Introduction: This agenda item is being presented for approval to award material purchase contracts to Five Star Embroidery and Gall’s for the purchase of Fire Department clothing. Analysis: Every fiscal year the Fire Department budgets for the replacement of worn, damaged or contaminated clothing as well as new clothing for new hires joining the department. In the past two years, several changes had been made to the make, model or design of several of the clothing items the department wears. Further, other apparel items were no longer under contract pricing. Additionally, the service and pricing provided by one vendor no longer met with the departments purchasing needs. As such, on September 14, 2018 an RFB was issued through Bid Sync. On October 4, 2018, the city received 4 bids for supplying various clothing and clothing accessories to meet the specific needs and requirements for the Fire Department. Upon review by Purchasing and Fire Department Administrative personnel it was determined that entering into contracts with Five Star Embroidery and Gall’s would allow for the best value and service to the department. The existing contracts for clothing will be expired, and we will enter into a new contract with Fire Star Embroidery and Gall’s. Five Star Embroidery will act as the primary supplier for all items bid upon in the RFB, while Gall’s will act as the primary supplier for all other items on the RFB and as a secondary supplier as needed. The estimated annual purchase amount to both vendors is $75,355.00, which is budgeted in FY18-19. Legal Review: The City’s standard purchasing contract has been reviewed by legal periodically, with changes made as requested. Fiscal Impact: The fiscal impact of this Agenda item is $75,355.00. The funds are budgeted in the Fire Departments annual budget for FY18-19. Recommendation: The Fire Department recommends approval of the contracts with Five Star Embroidery and Gall’s. BID #Q-1019-02 FIRE DEPARTMENT UNIFORMS CITY OF COPPELL • PURCHASING DEPARTMENT • 255 PARKWAY BOULEVARD • COPPELL, TEXAS 75019 Page 1 INVITATION TO BID INSTRUCTIONS/TERMS OF CONTRACT SPECIFICATIONS BID SHEET(S) FOR FIRE DEPARTMENT UNIFORMS PER THE CITY OF COPPELL SPECIFICATIONS AT THE CITY OF COPPELL TOWN CENTER PURCHASING DEPARTMENT OPENING DATE: Thursday, October 4, 2018, 10:00 A.M. BID #Q-1019-02 FIRE DEPARTMENT UNIFORMS CITY OF COPPELL • PURCHASING DEPARTMENT • 255 PARKWAY BOULEVARD • COPPELL, TEXAS 75019 Page 2 INVITATION TO BID Return Bid To: City of Coppell Purchasing Department 255 Parkway Blvd. Coppell, Texas 75019 The enclosed Invitation to Bid and accompanying Specifications with Bid Sheets are for your convenience in bidding the enclosed referenced products and/or services for the City of Coppell. Sealed bids shall be received no later than: Thursday, October 4, 2018, 10:00 A.M. CST. PRE-BID MEETING The City of Coppell will have a Pre-bid meeting Thursday, September 27, 2018, 10:00 A.M., CST at: 255 Parkway Blvd, Coppell, TX 75019. Please reference Bid No. Q-1019-02 in all correspondence pertaining to this bid and affix this number to outside front of bid envelope for identification. All bids shall be to the attention of the Purchasing Department. The City of Coppell appreciates your time and effort in preparing a bid. Please note that all bids must be received at the designated location by the deadline shown. Bids received after the deadline will be returned unopened and shall be considered void and unacceptable. Bid opening is scheduled to be held in the City Hall, 255 Parkway Boulevard, Coppell, Texas. You are invited to attend. If Bidder desires not to bid at this time, but wishes to remain on the commodity bid list, please submit a "NO BID" response (same time/location). The City of Coppell is always very conscious and extremely appreciative of the time and effort expended to submit a bid. However, on "NO BID" responses please communicate any bid requirement(s) which may have influenced your decision to "NO BID." If response is not received in the form of a "BID" or "NO BID" for three (3) consecutive Invitation to Bid, Bidder shall be removed from said bid list. However, if you choose to "NO BID" at this time but desire to remain on the bid list for other commodities, please state the specific product/service for which your firm wishes to be classified. Awards should be made approximately three weeks following the bid opening date. To obtain results, or if you have any questions, please contact the Purchasing Department at 972 -304-3698. BID #Q-1019-02 FIRE DEPARTMENT UNIFORMS CITY OF COPPELL • PURCHASING DEPARTMENT • 255 PARKWAY BOULEVARD • COPPELL, TEXAS 75019 Page 3 INVITATION TO BID INSTRUCTIONS/TERMS OF CONTRACT BID NO. Q-1019-02 FIRE DEPARTMENT UNIFORMS By order of the City Council of the City of Coppell, Texas, sealed bids will be received for: FIRE DEPARTMENT UNIFORMS TO PROVIDE for an annual Contract commencing thirty (30) days after the date of the award and continuing for twelve month period. The City of Coppell, reserves the right to extend this contract for four (4) additional one-year periods as it deems to be in the best interest of the city. IT IS UNDERSTOOD that the City Council of the City of Coppell, Texas reserves the right to reject any and/or all bids for any/or all products and/or services covered in this bid request and to waive informalities or defects in bids or to accept such bids as it shall deem to be in the best interests of the City of Coppell. BIDS MUST BE submitted on the pricing forms included for that purpose in this packet. Each bid shall be placed in a separate sealed envelope, with each page manually signed by a person having the authority to bind the firm in a Contract, and marked clearly on the outside as shown below. FACSIMILE TRANSMITTALS SHALL NOT BE ACCEPTED! SUBMISSION OF BIDS: Sealed bids shall be submitted no later than Thursday, October 4, 2018, 10:00 A.M., Central Time to the address as follows: City of Coppell Purchasing Department 255 E. Parkway Blvd. Coppell, Texas 75019 MARK ENVELOPE: BID NO. Q-1019-02 ALL BIDS MUST BE RECEIVED IN THE CITY'S PURCHASING DEPARTMENT BEFORE 10:00 A.M., CST, THURSDAY, OCTOBER 4, 2018 BID #Q-1019-02 FIRE DEPARTMENT UNIFORMS CITY OF COPPELL • PURCHASING DEPARTMENT • 255 PARKWAY BOULEVARD • COPPELL, TEXAS 75019 Page 4 Closing Date & Time: Thursday, October 4, 2018 @ 10:00 A.M. (CST) Solicitation Schedule Dates Bid Issued 9/14/18 Pre-Bid Conference 9/27/18 – 10:00 A.M. Sealed Bids Due to the City 10/04/18 – 10:00 A.M. All times and dates are CST. BID #Q-1019-02 FIRE DEPARTMENT UNIFORMS CITY OF COPPELL • PURCHASING DEPARTMENT • 255 PARKWAY BOULEVARD • COPPELL, TEXAS 75019 Page 5 PUBLIC NOTICE STATEMENT FOR ADA COMPLIANCE The City of Coppell acknowledges its responsibility to comply with the Americans With Disabilities Act of 1990. Thus, in order to assist individuals with disabilities who require special services (i.e. sign interpretative services, alternative audio/visual devices, and amanuenses) for participation in or access to the City of Coppell sponsored public programs, services and/or meetings, the City requests that individuals make request for these services forty-eight (48) hours ahead of the scheduled program, service and/or meeting. To make arrangements, contact Vivyon V. Bowman, ADA Coordinator or other designated official at (972) 462-0022, or (TDD 1-800-RELAY, TX 1-800-735-2989). BID #Q-1019-02 FIRE DEPARTMENT UNIFORMS CITY OF COPPELL • PURCHASING DEPARTMENT • 255 PARKWAY BOULEVARD • COPPELL, TEXAS 75019 Page 6 REQUIRED INFORMATION: The City of Coppell solicitation packets contain various documents that require completion by the Offeror. Said information must be completed prior to the date and time set for the solicitation opening and shall be included with the submittal packet in order to be considered a responsive Offeror. DEFINITIONS: a. “Bidder” refers to the submitter. b. “Contractor” refers to a successful Bidder/contractor/service provider. c. “Submittal” refers to those documents, which must be submitted to the City of Coppell by a Bidder. d. “RFB” refers to a Request for Bids. e. “RFQ” refers to a Request for Qualifications. f. “RFP” refers to a Request for Proposals. SUBMISSION OF RFB/RFQ/RFP: RFB/RFQ/RFP’s may be submitted to the City of Coppell by any of the following means: g. Hand carried to the Purchasing Department located at the City of Coppell/City Hall, 255 E. Parkway Blvd., Coppell, Texas 75019; h. Mailed to the City of Coppell, Purchasing Department, at 255 Parkway Blvd., Coppell, Texas 75019; i. No oral, electronic, telephonic, or facsimile RFBs will be considered or accepted. OFFICIAL TIME: The time clock in the City of Coppell Purchasing Department shall be the official time of receipt for all RFB/RFQ/RFP’s submitted in hard copy paper form. Any late submittals received in the Coppell Purchasing Department after the submission deadline shall be considered void and unacceptable. Absolutely no late submittals will be considered. INCLEMENT WEATHER: In case of inclement weather or any other unforeseen event causing the City to close for business on the date a submission deadline, the RFB/RFQ/RFP closing will automatically be postponed until the next business day the City is open. If inclement weather conditions or any other unforeseen event causes delays in carrier service operations, the City may issue an addendum to all known vendors interested in the project to extend the deadline. It will be the responsibility of the vendor to notify the City of their interest in the project if these conditions are impacting their ability to turn in a submission within the stated deadline. The City reserves the right to make the final judgment call to extend any deadline. BID NOTIFICATION: City of Coppell utilizes the following procedures for notification of bid opportunities: www.bidsync.com and the Coppell Citizens Advocate. These are the only forms of notification authorized by the city. Coppell shall not be responsible for receipt of notification and information from any source other than those listed. It shall be the vendor’s responsibility to verify the validity of all bid information received by sources other than those listed. BID #Q-1019-02 FIRE DEPARTMENT UNIFORMS CITY OF COPPELL • PURCHASING DEPARTMENT • 255 PARKWAY BOULEVARD • COPPELL, TEXAS 75019 Page 7 BID OPENINGS: All submittals will be opened and presented according to the legal requirements for the type of solicitation (i.e. request for bid, request for proposal, competitive sealed proposal) at the designated time and place specified in the solicitation. However, the reading of a quote at the opening should not be construed as a comment on the responsiveness of such quote or as any indication that the City accepts such quote as responsive. The City will make a determination as to the responsiveness of quotes submitted based upon compliance with all applicable laws, City Purchasing Guidelines, and project documents, including but not limited to the project specifications and contract documents. The City will notify the successful Bidder upon award of the contract and all requests for quotes received will be available for inspection after award. FUNDING: Funds for payment have been provided through the City of Coppell budget approved by the City Council for this fiscal year only. State of Texas statutes prohibit the obligation and expenditure of public funds beyond the fiscal year for which a budget has been approved. Therefore, anticipated orders or other obligations that may arise past the end of the current fiscal year shall be subject to budget approval. LATE BIDS: Bids received in the City of Coppell Purchasing Department after submission deadline will be considered void and unacceptable. The City of Coppell is not responsible for lateness or non-delivery of mail, carrier, etc., and the date/time stamp in the Purchasing Department shall be the official time of receipt. ALTERING BIDS: Bids cannot be altered or amended after submission deadline. Any interlineation, alteration, or erasure made before opening time must be initialed by the signer of the bid, guaranteeing authenticity. WITHDRAWAL OF BID: A bid may not be withdrawn or canceled by the Bidder without the permission of the City for a period of ninety (90) days following the date designated for the receipt of bids, and Bidder so agrees upon submittal of their bid. SALES TAX: The City of Coppell is exempt by law from payment of Texas State Sales Tax and Federal Excise Tax pursuant to the provisions of Article 20.04 (F) of the Texas Limited Sales, Excise and Use Tax Act. Bidder shall include any sales taxes from concession sales of taxable items on City property in the total price of the sale, and shall be responsible to report and pay such taxes in a timely manner. Any Contractor performing work under this contract for the City of Coppell may purchase materials and supplies and rent or lease equipment sales tax free. This is accomplished by issuing exemption certificates to suppliers. Certificates must comply with State Comptroller’s ruling #95-0.07 and #95-0.09. CONTRACT: This bid, when properly accepted by the City of Coppell, shall constitute a Contract equally binding between the successful Bidder and the City. No different or additional terms will become a part of this Contract with the exception of Change Orders. BID #Q-1019-02 FIRE DEPARTMENT UNIFORMS CITY OF COPPELL • PURCHASING DEPARTMENT • 255 PARKWAY BOULEVARD • COPPELL, TEXAS 75019 Page 8 CHANGE ORDERS: No oral statement of any individual shall modify or otherwise change, or affect the terms, conditions or Specifications stated in the resulting Contract. All Change Orders to the Contract will be made in writing by the City's Purchasing Agent. IF DURING THE life of the Contract, the successful Bidder’s net prices to other customers for items awarded herein are reduced below the Contracted price, it is understood and agreed that the benefits of such reduction shall be extended to the City of Coppell. A PRICE redetermination may be considered by the City only at the anniversary date of the Contract and shall be substantiated in writing (i.e., Manufacturer’s direct cost, postage rates, Railroad Commission rates, Wage/Labor rates). The Bidder’s past history of honoring Contracts at the bid price will be an important consideration in the evaluation of the lowest and best bid. The City reserves the right to accept or reject any/all of the price redetermination as it deems to be in the best interest of the City. DELIVERY: all delivery and freight charges (F.O.B. City of Coppell) are to be included in the bid price. DELIVERY TIME: Bids shall show number of days required to place goods ordered at the City’s designated location. Failure to state delivery time may cause bid to be rejected. Successful Bidder shall notify the Purchasing Department immediately if delivery schedule cannot be met. If delay is foreseen, successful Bidder shall give written notice to the Purchasing Agent. The City has the right to extend delivery time if reason appears valid. Successful Bidder must keep the Purchasing Department advised at all times of the status of the order. CONFLICT OF INTEREST: No public official shall have interest in this Contract, in accordance with Vernon's Texas Codes Annotated, Local Government Code Title 5. Subtitle C, Chapter 171. DISCLOSURE OF CERTAIN RELATIONSHIPS Effective January 1, 2006, Chapter 176 of the Texas Local Government Code requires that any vendor or person considering doing business with a local government entity disclose in the Questionnaire Form CIQ, the vendor or person’s affiliation or business relationship that might cause a conflict of interest with a local government entity. By law, this questionnaire must be filed with the records administrator of the City of Coppell not later than the 7 th business day after the date the person becomes aware of facts that require the statement to be filed. See Section 176.006, Local Government Code. A person commits an offense if the person violates Section 176.006, Local Government Code. An offense under this section is a Class C misdemeanor. ETHICS: The Bidder shall not offer or accept gifts of anything of value nor enter into any business arrangement with any employee, official or agent of the City of Coppell. EXCEPTIONS/SUBSTITUTIONS: All bids meeting the intent of this RFB/RFQ/RFP will be considered for award. Bidders taking exception to the Specifications, or offering su bstitutions, shall state these exceptions in the section provided or by attachment as part of the bid. In the absence of such, a list shall BID #Q-1019-02 FIRE DEPARTMENT UNIFORMS CITY OF COPPELL • PURCHASING DEPARTMENT • 255 PARKWAY BOULEVARD • COPPELL, TEXAS 75019 Page 9 indicate that the Bidder has not taken exceptions and shall hold the Bidder responsible to perform in strict accordance with the Specifications of the Invitation. The City of Coppell reserves the right to accept any and all, or none, of the exception(s)/ substitution(s) deemed to be in the best interest of the City. ADDENDA: Any interpretations, corrections or changes to an RFB/RFQ/RFP will be made by written addenda. Sole issuing authority of addenda shall be vested in the City of Coppell Purchasing Department. Addenda will be issued via the Bidsync system mentioned above and posted on the City of Coppell’s website. Bidders shall acknowledge receipt of all addenda. DESCRIPTIONS: Any reference to model and/or make/manufacturer used in bid Specifications will be made by addenda. Sole issuing authority of addenda shall be vested in the City's Purchasing Agent. Addenda will be mailed to all who are known to have received a copy of this RFB/RFQ/RFP. Bidders shall acknowledge receipt of all addenda. BID MUST COMPLY with all federal, state, county, and local laws concerning these types of service(s). DESIGN, STRENGTH, QUALITY of materials must conform to the highest standards of manufacturing and engineering practice. All items supplied against credit must be new and unused, unless otherwise specified, in first-class condition and of current manufacturer. MINIMUM STANDARDS FOR RESPONSIBLE PROSPECTIVE BIDDERS: A prospective Bidder must affirmatively demonstrate Bidder's responsibility. A prospective Bidder must meet the following requirements: 1. Have adequate financial resources, or the ability to obtain such resources as required; 2. Be able to comply with the required or proposed delivery schedule; 3. Have a satisfactory record of performance; 4. Have a satisfactory record of integrity and ethics; 5. Be otherwise qualified and eligible to receive an award. The City may request representation and other information sufficient to determine Bidder's ability to meet these minimum standards listed above. REFERENCES: The City requests Bidder to supply, with this RFB/RFQ/RFP, a list of at least three (3) references where like products and/or services have been supplied by their firm. Include name of firm, address, telephone number and name of representative. BIDDER SHALL PROVIDE with this bid response, all documentation required by this RFB/RFQ/RFP. Failure to provide this information may result in rejection of bid. BID #Q-1019-02 FIRE DEPARTMENT UNIFORMS CITY OF COPPELL • PURCHASING DEPARTMENT • 255 PARKWAY BOULEVARD • COPPELL, TEXAS 75019 Page 10 AWARD OF CONTRACT: The City shall award a contract to the responsible bidder providing the best value for goods and services. This is NOT a low bid solicitation based on price alone. All bidders must provide documentation and information requested in this solicitation in order to determine the best value outlined below. Pursuant to the Texas Local Government Code, § 252.043, Award of Contract, “Best Value” will be determined by considering: (1) The purchase price; (2) The reputation of the bidder and of the bidder's goods or services; (3) The quality of the bidder's goods or services; (4) The extent to which the goods or services meet the municipality's needs; (5) The bidder's past relationship with the municipality; (6) The impact on the ability of the municipality to comply with laws and rules relating to contracting with historically underutilized businesses and nonprofit organizations employing persons with disabilities; (7) The total long-term cost to the municipality to acquire the bidder's goods or services; and (8) Any relevant criteria specifically listed in the request for bids or proposals SUCCESSFUL BIDDER SHALL defend, indemnify and save harmless the City of Coppell and all its officers, agents and employees from all suits, actions, or other claims of any character, name and description brought for or on account of any injuries or damages received or sustained by any person, persons, or property on account of any negligent act or fault of the successful Bidder, or of any agent, employee, subcontractor or supplier in the execution of, or performance under, any Contract which may result from bid award. Successful Bidder indemnifies and will indemnify and save harmless the City from liability, claim or demand on their part, agents, servants, customers, and/or employees whether such liability, claim or demand arise from event or casualty happening or within the occupied premises themselves or happening upon or in any of the halls, elevators, entrances, stairways or approaches of or to the facilities within which the occupied premises are located. Successful Bidder shall pay any judgment with costs which may be obtained against the City growing out of such injury or damages. In addition, Contractor shall obtain and file with Owner City of Coppell a Standard Certificate of Insurance and applicable policy endorsement evidencing the required coverage and naming the owner City of Coppell as an additional insured on the required coverage. WAGES: Successful Bidder shall pay or cause to be paid, without cost or expense to the City of Coppell, all Social Security, Unemployment and Federal Income Withholding Taxes of all such employees and all such employees shall be paid wages and benefits as required by Federal and/or State Law. PREVAILING WAGE RATES: The awarded contractor shall comply with prevailing wage rates as defined by the United States Department of Labor Davis-Bacon Wage Determination at BID #Q-1019-02 FIRE DEPARTMENT UNIFORMS CITY OF COPPELL • PURCHASING DEPARTMENT • 255 PARKWAY BOULEVARD • COPPELL, TEXAS 75019 Page 11 http://www.dol.gov/whd/contracts/dbra.htm and at the Wage Determinations website www.wdol.gov for Dallas County, Texas (WD-2509). TERMINATION OF CONTRACT: This Contract shall remain in effect until Contract expires, delivery and acceptance of products and/or performance of services ordered or terminated by either party with a thirty (30) day written notice prior to any cancellation. The successful Bidder must state therein the reasons for such cancellation. The City of Coppell reserves the right to award canceled Contract to next lowest and best Bidder as it deems to be in the best interest of the City of Coppell. TERMINATION FOR DEFAULT: The City of Coppell reserves the right to enforce the performance of this Contract in any manner prescribed by law or deemed to be in the best interest of the City in the event of breach or default of this Contract. The City of Coppell reserves the right to terminate the Contract immediately in the event the successful Bidder fails to: 1. Meet schedules; 2. Defaults in the payment of any fees; or 3. Otherwise perform in accordance with these Specifications. Breach of Contract or default authorizes the City of Coppell to exercise any or all of the following rights: 1. The City may take possession of the assigned premises and any fees accrued or becoming due to date; 2. The City may take possession of all goods, fixtures and materials of successful Bidder therein and may foreclose its lien against such personal property, applying the proceeds toward fees due or thereafter becoming due. In the event the successful Bidder shall fail to perform, keep or observe any of the terms and conditions to be performed, kept or observed, the City shall give the successful Bidder written notice of such default; and in the event said default is not remedied to the satisfaction and approval of the city within two (2) working days of receipt of such notice by the successful Bidder, default will be declared and all the successful Bidder's rights shall terminate. Bidder, in submitting this bid, agrees that the City of Coppell shall not be liable to prosecution for damages in the event that the City declares the Bidder in default. NOTICE: Any notice provided by this bid (or required by law) to be given to the successful Bidder by the City of Coppell shall conclusively deemed to have been given and received on the next day after such written notice has been deposited in the mail in the City of Coppell, Texas by Registered or Certified Mail with sufficient postage affixed thereto, addressed to the successful Bidder at the address so provided; provided this shall not prevent the giving of actual notice in any other manner. BID #Q-1019-02 FIRE DEPARTMENT UNIFORMS CITY OF COPPELL • PURCHASING DEPARTMENT • 255 PARKWAY BOULEVARD • COPPELL, TEXAS 75019 Page 12 PROTESTS: All protests regarding the solicitation process must be submitted, in writing, to the Purchasing Manager within five (5) working days following the opening of such solicitation. This includes all protests relating to advertising of solicitation notices, deadlines, opening, and all other related procedures under the Texas Local Government Code, as well as, any protests relating to alleged improprieties or ambiguities in the specifications. Protests relating to staff recommendations as to the award of this solicitation may be directed to the Cit y Administration, City Manager’s Office by contacting the City Manager prior to council award. All staff recommendations will be made available for public review seventy-two (72) hours prior to consideration by the City Council. PATENTS/COPYRIGHTS: The successful Bidder agrees to protect the City of Coppell from claims involving infringement of patents and/or copyrights. CONTRACT ADMINISTRATOR: Under this Contract, the City of Coppell may appoint a Contract Administrator with designated responsibility to ensure compliance with Contract requirements, such as but not limited to, acceptance, inspection and delivery. The Contract Administrator will serve as liaison between the City of Coppell Purchasing Department (which has the overall Contract Administration responsibilities) and the successful Bidder. PURCHASE ORDER: A Purchase Order(s) shall be generated by the City of Coppell to the successful Bidder. The Purchase Order number must appear on all itemized invoices and packing slips. The City of Coppell will not be held responsible for any orders placed/delivered without a valid current Purchase Order number. PACKING SLIPS or other suitable shipping documents shall accompany each special order shipment and shall show: (a) name and address of successful Bidder, (b) name and address of receiving department and/or delivery location, (c) Purchase Order number, and (d) descriptive information as to the item(s) delivered, including product code, item number, quantity, number of containers, or other. INVOICES shall show all information as stated above, shall be issued for each Purchase Order and shall be mailed directly to the City of Coppell Finance/Accounts Payable Department, 255 Parkway Blvd., Coppell, Texas 75019, or emailed to accountspayable@coppelltx.gov. PAYMENT will be made upon receipt and acceptance by the City of Coppell for any item(s) ordered and receipt of a valid invoice, in accordance with the State of Texas Prompt Payment Act, Article 601f V.T.C.S. Successful Bidder(s) required to pay subcontractors within ten (10) days. ITEMS supplied under this Contract shall be subject to the City's approval. Items found defective or not meeting Specifications shall be picked up and replaced by the successful Bidder at the next service date at no expense to the City of Coppell. If item is not picked up within one (1) week after notification, the item will become a donation to the City for disposition. BID #Q-1019-02 FIRE DEPARTMENT UNIFORMS CITY OF COPPELL • PURCHASING DEPARTMENT • 255 PARKWAY BOULEVARD • COPPELL, TEXAS 75019 Page 13 SAMPLES: When requested, samples shall be furnished free of expense to the City of Coppell. WARRANTY: Successful Bidder shall warrant that all items/services shall conform to the proposed Specifications and/or all warranties as stated in the Uniform Commercial Code and be free from all defects in material, workmanship and title. A copy of the warranty for each item being bid must be enclosed. Failure to comply with the above requirements for literature and warranty information could cause bid to be rejected. REMEDIES: The successful Bidder and the City of Coppell agree that both parties have all rights, duties and remedies available as stated in the Uniform Commercial Code. VENUE: This Agreement will be governed and construed according to the laws of the State of Texas. This Agreement is performable in the City of Coppell, Texas. ASSIGNMENT: The successful Bidder shall not sell, assign, transfer or convey this Contract, in whole or in part, without prior written consent of the City of Coppell. SPECIFICATIONS and model numbers are for description only. Bidder may bid on description only. Bidder may bid on alternate model but must clearly indicate alternate model being bid. Bidder must enclose full descriptive literature on alternate item(s). The use of brand names is intended to be descriptive rather than restrictive. SILENCE OF SPECIFICATION: The apparent silence of these Specifications as to any detail or to the apparent omission of a detailed description concerning any point, shall be regarded as meaning that only the best commercial practices are to prevail. All interpretations of these Specifications shall be made on the basis of this statement. Each insurance policy to be furnished by successful Bidder shall include, by endorsement to the policy, a statement that a notice shall be given to the City of Coppell by Certified Mail thirty (30) days prior to cancellation or upon any material change in coverage. BID NOTIFICATION: City of Coppell utilizes the following procedures for notification of bid opportunities: www.bidsync.com and the Coppell Citizens Advocate. These are the only forms of notification authorized by the city. Coppell shall not be responsible for receipt of notification and information from any source other than those listed. It shall be the vendor’s responsibility to verify the validity of all bid information received by sources other than those listed. EMPLOYMENT ELIGIBILITY VERIFICATION: The Immigration Reform and Control Act of 1986 (IRCA) makes it illegal for employers to knowingly hire or recruit immigrants who do not possess lawful work authorization and requires employers to verify their employees' work eligibility on a U.S. Department of Justice form I-9. The contractor/vendor warrants that contractor/vendor is in compliance with IRCA and will maintain compliance with IRCA during the term of the contract with the city. Contractor/vendor BID #Q-1019-02 FIRE DEPARTMENT UNIFORMS CITY OF COPPELL • PURCHASING DEPARTMENT • 255 PARKWAY BOULEVARD • COPPELL, TEXAS 75019 Page 14 warrants that contractor/vendor has included or will include a similar provision in all written agreements with any subcontractors engaged to perform services under this contract. ENVIRONMENTALLY PREFERABLE PRODUCTS AND SERVICES: Bidders are encouraged to offer Energy Star, GreenSeal, EcoLogo and/or EPEAT certified products. The city also encourages bidders to offer products and services that are produced or delivered with minimal use of virgin materials and maximum use of recycled materials and reduce waste, energy usage, water utilization and toxicity in the manufacture and use of products. ANY QUESTIONS concerning this Invitation to Bid and Specifications should be directed to the Purchasing Department at 972-304-3698. BID #Q-1019-02 FIRE DEPARTMENT UNIFORMS CITY OF COPPELL • PURCHASING DEPARTMENT • 255 PARKWAY BOULEVARD • COPPELL, TEXAS 75019 Page 15 COOPERATIVE PURCHASING As permitted under Government Code, Title 7, Chapter 791.025, other governmental entities may wish to cooperatively purchase under the same terms and conditions contained in thi s contract. Each entity wishing to utilize the contract must have prior authorization from the City of Coppell and Contractor. If such participation is authorized, all purchase orders will be issued directly from and shipped directly to the entity requiring supplies/services. The City of Coppell shall not be held responsible for any orders placed, deliveries made, or payment for supplies/services ordered by these entities. Each entity reserves the right to determine their participation in this contract. IS YOUR FIRM WILLING TO ALLOW OTHER GOVERNMENTAL ENTITIES TO UTILIZE THIS CONTRACT, IF AWARDED, UNDER THE SAME TERMS AND CONDITIONS? __________YES __________NO BID #Q-1019-02 FIRE DEPARTMENT UNIFORMS CITY OF COPPELL • PURCHASING DEPARTMENT • 255 PARKWAY BOULEVARD • COPPELL, TEXAS 75019 Page 16 CERTIFICATIONS AND REPRESENTATIONS M/WBE STATUS ___________________________________________________ IS CERTIFIED AS A: (CHECK ONE, IF APPLICABLE) DISADVANTAGED BUSINESS ENTERPRISE ___________ MINORITY-OWNED BUSINESS ENTERPRISE ___________ WOMEN-OWNED BUSINESS ENTERPRISE ___________ PLEASE ATTACH OFFICIAL DOCUMENTATION FROM THE STATE OF TEXAS OR OTHER QUALIFIED CERTIFICATION AGENCY OF M/WBE STATUS OF YOUR COMPANY WITH THIS BID/PROPOSAL. * * * * * NOTE * * * * * THIS DATA IS REQUESTED FOR INFORMATIONAL PURPOSES ONLY AND WILL NOT AFFECT THE BID AWARD. (SUBMISSION OF THIS INFORMATION IS NOT A REQUIREMENT) Revised 11/30/2015Form provided by Texas Ethics Commission www.ethics.state.tx.us FORM CIQ OFFICE USE ONLYThis questionnaire reflects changes made to the law by H.B. 23, 84th Leg., Regular Session. This questionnaire is being filed in accordance with Chapter 176, Local Government Code, by a vendor who has a business relationship as defined by Section 176.001(1-a) with a local governmental entity and the vendor meets requirements under Section 176.006(a). By law this questionnaire must be filed with the records administrator of the local governmental entity not later than the 7th business day after the date the vendor becomes aware of facts that require the statement to be filed. See Section 176.006(a-1), Local Government Code. A vendor commits an offense if the vendor knowingly violates Section 176.006, Local Government Code. An offense under this section is a misdemeanor. CONFLICT OF INTEREST QUESTIONNAIRE For vendor doing business with local governmental entity Date Received A. Is the local government officer or a family member of the officer receiving or likely to receive taxable income, other than investment income, from the vendor? Yes No B. Is the vendor receiving or likely to receive taxable income, other than investment income, from or at the direction of the local government officer or a family member of the officer AND the taxable income is not received from the local governmental entity? Yes No 7 Check this box if the vendor has given the local government officer or a family member of the officer one or more gifts as described in Section 176.003(a)(2)(B), excluding gifts described in Section 176.003(a-1). Signature of vendor doing business with the governmental entity Date Name of vendor who has a business relationship with local governmental entity.1 Check this box if you are filing an update to a previously filed questionnaire. (The law requires that you file an updated completed questionnaire with the appropriate filing authority not later than the 7th business day after the date on which you became aware that the originally filed questionnaire was incomplete or inaccurate.) 2 3 Name of local government officer about whom the information is being disclosed. Name of Officer Describe each employment or other business relationship with the local government officer, or a family member of the officer, as described by Section 176.003(a)(2)(A). Also describe any family relationship with the local government officer. Complete subparts A and B for each employment or business relationship described. Attach additional pages to this Form CIQ as necessary. 4 6 5 Describe each employment or business relationship that the vendor named in Section 1 maintains with a corporation or other business entity with respect to which the local government officer serves as an officer or director, or holds an ownership interest of one percent or more. BID #Q-1019-02 FIRE DEPARTMENT UNIFORMS CITY OF COPPELL • PURCHASING DEPARTMENT • 255 PARKWAY BOULEVARD • COPPELL, TEXAS 75019 Page 17 BID #Q-1019-02 FIRE DEPARTMENT UNIFORMS (SPECIFICATIONS) TWO COPIES MUST BE RETURNED TO THE PURCHASING DEPARTMENT NO LATER THAN THURSDAY, OCTOBER 4, 2018, CST, 10:00 A.M. BID #Q-1019-02 FIRE DEPARTMENT UNIFORMS CITY OF COPPELL • PURCHASING DEPARTMENT • 255 PARKWAY BOULEVARD • COPPELL, TEXAS 75019 Page 18 FIRE DEPARTMENT UNIFORMS I. Scope of Work The City of Coppell is requesting bids for the purchase of Fire Department uniforms and accessories. There are generally between eighty-five to ninety (85-90) fire staff members that require uniform items throughout the year. Typically, the department orders items in-bulk in October with smaller orders as needed. II. Specifications and Vendor Requirements 1. The Fire Department has standardized on the brands identified below in the Pricing Schedule. No substitutions will be considered. See the Pricing Schedule below and Exhibit A for photo examples. 2. Class A dress uniforms require personal fitting locally or on-site; therefore, the selected vendor should have local staff available. 3. A single price for all clothing sizes is preferable. If individual size pricing is required, then the vendor should augment the Pricing Schedule with the itemized information accordingly. 4. Vendors should describe minimum order quantities, returns processes, and typical delivery schedules for all brands and sizes. 5. Deliveries will occur only Monday through Friday from 8:00am to 5:00pm, unless otherwise approved by city staff. III. Accidental Damages The Contractor is responsible for the care of the property while providing these services. Any damage caused by the Contractor will be corrected by the Contractor at the Contractor’s expense. BID #Q-1019-02 FIRE DEPARTMENT UNIFORMS CITY OF COPPELL • PURCHASING DEPARTMENT • 255 PARKWAY BOULEVARD • COPPELL, TEXAS 75019 Page 19 IV. Pricing Schedule 1. Pricing stated below for various options shall include all equipment, including but not limited to any additional materials, labor, delivery charges, mileage, tolls, and all other costs not specifically identified. 2. No additional costs, fees, or invoices will be considered, unless prior authorization for such is approved in writing by the City of Coppell. 3. Please complete this form for your pricing response. This sheet can be augmented with additional information if needed. FIRE DEPARTMENT UNIFORMS PRICING SCHEDULE Item Size range Part #Specs Reference Photo Quantity Ball Caps Fitted Sizes 1-5 Richardson Pro 495 Logo: Coppell Fire Department Stitch count: 4557 Size: (Width 120.8mm) (Height 38.4 mm) Location: Center Front Thread color: Madeira 1811 Silver PMS-428 or Robinson anton Goldenrod Photo A & B 50 Ball Caps Adjustable SM/Med, Lg/XL Richardson Pro 414 Logo: Coppell Fire Department Stitch count: 4557 Size: (Width 120.8mm) (Height 38.4 mm) Location: Center Front Thread color: Madeira 1811 Silver PMS-428 or Robinson anton Goldenrod Photo A & B 30 Knit Cap Short One size Port & Company CP90 Logo: Coppell Fire Department Stitch count: 4557 Size: (Width 120.8mm) (Height 38.4 mm) Location: Center Front 1" Above Thread color: Madeira 1811 Silver PMS-428 or Robinson anton Goldenrod Photo C & E 30 Knit Cap Rolled One size Port & Company CP91 Logo: Coppell Fire Department Stitch count: 4557 Size: (Width 120.8mm) (Height 38.4 mm) Location: Center Front 1" Above Fold Thread color: Madeira 1811 Silver PMS-428 or Robinson anton Goldenrod Photo D & E 50 Boonie Hat One size TRU-SPEC Poly / Cotton Ripstop Gen II Adjustable Boonie #3312 - Navy Logo: Coppell Fire Department Stitch count: 4557 Size: (Width 120.8mm) (Height 38.4 mm) Location: Center Front Thread color: Madeira 1811 Silver PMS-428 or Robinson anton Goldenrod Photo F * Note* Logo on this hat has not been updated*50 Nomex Shirts Class B Short Sleeve 36-58 Short Sleeve-WORKRITE WR730NX45NB Nomex IIIA Firefighter shirt, Navy The shirts have name and rank strips embroidered onto Nomex navy fabric consistent with the shirt fabric and sewn onto the shirt above the pockets. For Captain rank and above the bugles are embroidered directly onto the collar points. Left chest: RANK (no abbreviations all caps) e.g. FIREFIGHTER Right chest: Name should read “FIRST INITIAL. LAST NAME” e.g., K. RICHARDSON Left Sleeve: 4 inch CFD patch (supplied by us) Right Sleeve: An EMS patch (supplied by us) Patches are sewn one inch below shoulder seam, centered left to right FIREFIGHTER shirts get name strip, rank strip, embroidered in SILVER ENGINEER shirts get name strip, rank strip embroidered in SILVER CAPTAIN shirts get name strip, rank strip embroidered in SILVER as well as TWO(2) parallel bugles embroidered in SILVER on collar points. BATTALION CHIEF shirts get name strip, rank strip, and TWO(2) crossed bugles on collar points all embroidered in GOLD. DIVISION CHIEF shirts get name strip, rank strip, and THREE(3) crossed bugles on collar points all embroidered in GOLD DEPUTY CHIEF shirts get name strip, rank strip, and FOUR(4) crossed bugles on collar points all embroidered in GOLD FIRE CHIEF shirts get name strip, rank strip, and FIVE(5) crossed bugles on collar points all embroidered in GOLD SILVER is Thread color: Madeira 1811 Silver PMS-428 GOLD is Robinson Anton Goldenrod All badge tabs should be removed. Photo G thru K 30 Nomex Shirts Class B Long Sleeve 36-58 Long Sleeve-WORKRITE WR735NX45NB Nomex IIIA Firefighter shirt, navy See specs above for short sleeve shirt Photo G thru K 15 Nomex Pants- Station WORKRITE 7.5 NOMEX FULL CUT PANTS #402NX75NB Photo L,M 100 Nomex Pants- Station WORKRITE 7.5 NOMEX STANDARD CUT PANTS #400NX75NB Photo L,M 10 Station Wear Belt 5.11 #59409 1.5” Tactical Trainer Belt, 5 stitch Photo N 40 Workout Shorts S/M/Lg/XL/XXL Badger 7219 Mesh shorts,Drk Navy Embroidery left thigh: COPPELL FIRE DEPARTMENT Thread color: Madeira 1811 Silver PMS-428 or Robinson anton Goldenrod Photo O,P 40 Workout Pants S-XXXL Sprt Tex ST237 Embroidery left thigh below bottom of pocket : COPPELL FIRE DEPARTMENT Thread color: Madeira 1811 Silver PMS-428 or Robinson anton Goldenrod Photo Q 25 Station Wear Shorts 5.11 Taclite Pro 11" shorts #73308, Dark Navy 50 Dress Belt DM1151-30 1.5 inch black leather garrison dress belt 20 T-shirts S-3XL Gildan T-shirt, short sleeved, Navy, #8000 Includes Screen-print Back/3" CFD patch FLC/Name, Rank, EMS cert FRC specify gold or silver stitching; SPECIFY ROBONSON ANTON GOLDENROD OR MADIERA 1811 SILVER PMS-428 Photo R,S 300 S/S Polo shirt S-3XL Workrite 263TK67, Navy Includes Screen-print Back/3" CFD patch FLC/Name, Rank, EMS cert FRC specify gold or silver stitching; SPECIFY ROBONSON ANTON GOLDENROD OR MADIERA 1811 SILVER PMS-429 Photo T,U 200 L/S Polo shirt S-3XL Workrite 262TK67, Navy Includes Screen-print Back/3" CFD patch FLC/Name, Rank, EMS cert FRC specify gold or silver stitching; SPECIFY ROBONSON ANTON GOLDENROD OR MADIERA 1811 SILVER PMS-430 Photo T,U 50 Job Shirts S-3XL 5.11 Jobshirt, Navy, #72314 Includes Screen-print Back/3" CFD patch FLC(supplied by us) /Name, Rank, EMS cert FRC SPECIFY ROBINSON ANTON GOLDENROD OR MADIERA 1811 SILVER PMS- 428 Photo V,W 40 Class A Hat Midway 114 Bell Crown Cap- Dark Navy all one material Bell Cap / White Bell Cap (Chiefs) Navy Cap- 100% polyester gabardine Navy band with removable black rayon braid Silver FD buttons 611 pattern visor 1/2" black plastic strap 7" x 7-5/8" White cap -all white with vinyl top with white band and black visor and gold expansion strap, gold FD buttons Photo X,Y 12 Class A Coat Fechheimer 38800, Men's Dress Coat, LAPD, Navy 10 Class A Pants Fechheimer FECH- TRO70-, Men's Pants LAPD, Navy 10 Tie 57", 61" Samuel Broome Necktie w/button holes 3.5” x 57” #90081 / 3.5" x 61" #90099 20 White Shirt S/S (Admin Chiefs) S/S: 5.11 #71183 Twill PDU shirt,A Class,White Sew 4" patch - Left Sleeve: CFD patch (supplied by us) Right Sleeve: An EMS patch (supplied by us) 10 FIRE DEPARTMENT UNIFORMS PRICING SCHEDULE White Shirt L/S (Admin Chiefs) L/S: 5.11 #72344 Twill PDU shirt,A Class,White Sew 4" patch - Left Sleeve: CFD patch (supplied by us) Right Sleeve: An EMS patch (supplied by us) 6 Class A White Shirt S-6XL EDW- 1363- 00 Edwards- White L/S Dress Shirt 50 Dress Shoes BATES-22141 Bates High Gloss Duty Uniform Shoe 20 Name Plates N/A Blackington J3 name bar, double clutch back, black block lettering, (Silver:FF/Eng/Captain/ Inspector; Gold: BC/Division Chief/ Deputy Chief/Fire Chief)Photo Z,AA 20 Gear Bag N/A Port&Company, Colorblock sport Duffel Bag, Navy / charcoal #BG99 Includes embroidery: COPPELL FIRE DEPARTMENT First initial. last name Thread color: Madeira 1811 Silver PMS-428 or Robinson anton Goldenrod Photo BB, CC 12 Coat Soft Shell (Admin staff)S-3XL 5.11 #48167 Tactical Valiant soft shell Jacket, Navy 3" CFD Patch FLC(supplied by us) /Name & Rank FRC Thread color: Madeira 1811 Silver PMS-428 or Robinson Anton Goldenrod Photo DD 5 Jacket( BC's and Admin Staff)S-3XL 5.11 #48026, Big horn Jacket, Navy 3" CFD Patch FLC(supplied by us) /Name & Rank FRC Thread color: Madeira 1811 Silver PMS-428 or Robinson Anton Goldenrod Photo EE 5 Coat(Ops)Gerber GOW-70RX1 GOW Navy EclipseSX Sew 3" CFD patch(supplied by us) left chest on both layers , Screenprint reflective COPPELL FIRE DEPARTMENT back of outer layer only, Velcro and removable name strip on both layers New Item No Photos for reference 12 Exhibit A Coppell Fire Department Uniform Ball Caps Photo A and B Knit Cap Short Photo C Knit Cap Rolled Photo D Knit Caps side by Side Photo E Boonie Hat Photo F * Note* Logo on this hat has not been updated* Nomex Shirt Photo G Nomex Shirt Photo H Nomex Shirt Photo I Nomex Shirt Photo J Nomex Shirt Photo K Nomex Pants Photo L Nomex Pants Photo M Station Wear Belt - 5.11 Tactical Trainer Belt Photo N Workout Shorts - Badger Mesh Short Photo O Badger Mesh Short Photo P Workout Pants Photo Q T-Shirt Photo R T-Shirt Photo S Polo Shirt Photo T Polo Shirt Photo U Jobshirt Photo V Jobshirt Photo W Class A Hat Photo X Class A Hat Photo Y Name plate Photo Z Name plate Photo AA Gear Bag Photo BB Gear Bag Photo CC Coat Soft Shell Photo DD Jacket (Big Horn) Photo EE BID #Q-1019-02 FIRE DEPARTMENT UNIFORMS CITY OF COPPELL • PURCHASING DEPARTMENT • 255 PARKWAY BOULEVARD • COPPELL, TEXAS 75019 Page 20 BID FORM PROJECT IDENTIFICATION: FIRE DEPARTMENT UNIFORMS Bid Q-1019-02 in Coppell, Texas BID OF _____________________________________________ DATE __________ (NAME OF FIRM) THIS BID IS SUBMITTED TO: City of Coppell c/o Purchasing Manager 255 Parkway Boulevard Coppell, Texas 75019 DATE: ________________________________________ SIGNATURE: ________________________________________ BID #Q-1019-02 FIRE DEPARTMENT UNIFORMS CITY OF COPPELL • PURCHASING DEPARTMENT • 255 PARKWAY BOULEVARD • COPPELL, TEXAS 75019 Page 21 Company Information Company Name: Remit To Address: Physical Address: Phone Number: Fax Number: Contact Person: E-mail Address: BID #Q-1019-02 FIRE DEPARTMENT UNIFORMS CITY OF COPPELL • PURCHASING DEPARTMENT • 255 PARKWAY BOULEVARD • COPPELL, TEXAS 75019 Page 22 Standard Insurance Requirements The Contractor shall furnish and maintain during the life of the contract adequate Worker's Compensation and Commercial General Liability (Public) Insurance in such amounts as follows: Type of Insurance Amount Worker's Compensation as set forth in the Worker's Compensation Act. Commercial General $1,000,000 Each Accident/Occurrence. Liability (Public) $1,000,000 Aggregate $1,000,000 Products & Completed Operations Aggregate. Owner’s Protective $600,000 per occurrence Liability Insurance $1,000,000 aggregate Excess/Umbrella Liability $1,000,000 per occurrence w/drop down coverage Endorsement CG 2503 Amendment Aggregate Limit of Insurance per Project or Owner's and Contractor's Protective Liability Insurance for the Project. Automobile Liability $500,000 Combined single limit per occurrence. ADDITIONAL INSURED IN ADDITION, CONTRACTOR SHALL OBTAIN AND FILE WITH OWNER CITY OF COPPELL A STANDARD CERTIFICATE OF INSURANCE AND APPLICABLE POLICY ENDORSEMENT EVIDENCING THE REQUIRED COVERAGE AND NAMING THE OWNER CITY OF COPPELL AS AN ADDITIONAL INSURED ON THE REQUIRED COVERAGE. BID #Q-1019-02 FIRE DEPARTMENT UNIFORMS CITY OF COPPELL • PURCHASING DEPARTMENT • 255 PARKWAY BOULEVARD • COPPELL, TEXAS 75019 Page 23 SAMPLE ONLY DO NOT COMPLETE CITY OF COPPELL, TEXAS STANDARD FORM PURCHASE CONTRACT BID #Q-1019-02 FIRE DEPARTMENT UNIFORMS CITY OF COPPELL • PURCHASING DEPARTMENT • 255 PARKWAY BOULEVARD • COPPELL, TEXAS 75019 Page 24 City of Coppell, Texas 255 Parkway Boulevard Coppell, Texas 75019 This Agreement is made by and between the City of Coppell, Texas, a home -rule municipality (hereinafter referred to as the "Buyer") and the hereinafter named Seller, referred to as the "Seller," for th e sale of the goods, materials and items specified hereinafter, and the Buyer and Seller hereby agree as follows: Seller: _________________________________________________ [Name] _________________________________________________ [Address] _________________________________________________ [City, State, Zip] _________________________________________________ [Telephone] DESCRIPTION OF GOODS This Contract is for the purchase by the City of Coppell, Texas, of the goods, materials and items described hereinafter as the “Goods” or the subject of this Contract, and such parts, attachments, accessories, devices, and apparatus as may be considered an integral part of the Goods or necessary for the proper use or application of the Goods, whether or not specified herein. The Goods are more specifically described as follows: Description ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ BID #Q-1019-02 FIRE DEPARTMENT UNIFORMS CITY OF COPPELL • PURCHASING DEPARTMENT • 255 PARKWAY BOULEVARD • COPPELL, TEXAS 75019 Page 25 [CHECK ONE:] This Contract is a “fixed price - fixed quantity” Contract for the purchase of the specified quantity at the specified price. The full quantity of the Goods shall be delivered to and received at the designated point or points of delivery no later than the date specified herein below. This date is a material term and condition of this Contract and, in connection with the delivery date, time is and shall be of the essence. _______________________________ [Insert Date of Delivery] OR This Contract is for a specific duration wherein the Seller will supply, furnish and deliver at the designated point or points of delivery the specified Goods in the quantities requested by Buyer at the time of Buyer’s order. The delivery date(s) shall be set forth in Buyer’s order. This Contract is not intended to be and shall not be construed as an exclusive requirements contract. This Contract is non-exclusive and Buyer may acquire any or all of its requirements for the specified Goods from Seller or any other source deemed appro priate by Buyer. Upon the conclusion of the duration of this Contract, Buyer may renew this agreement for an additional period or periods equivalent to the primary duration upon sending written notice of intent thereof within thirty (30) days prior to the expiration of the last day of the term of this Contract. The failure to send the foregoing notice shall convert this agreement into a “fixed price - fixed quantity” contract as described above. DURATION: From ___________________ to _______________________. PAYMENT TERMS The purchase price of the Goods shall be that contained in the Seller’s bid and specifically accepted in writing by Buyer. Seller shall submit separate invoices, in duplicate, on each purchase order after each delivery. Invoices shall indicate the purchase order number and shall be itemized. A copy of the bill of lading should be attached to the invoice. Mail to City of Coppell, Purchasing Department, 255 Parkway Boulevard, P.O. Box 478, Coppell, Texas 75019. Payment shall not be due until the above instruments are submitted, until the Goods have been received by Buyer, and until Buyer has had sufficient opportunity to inspect and exercise its right to accept or reject. Seller shall keep the purchasing department advised of any changes in their remittance addresses. In no event shall Buyer be responsible for interest of any kind on any funds due to Seller, and no term or provision contained in any Seller’s invoice shall in any way modify, vary or alter the provisions hereof. Buyer’s obligation is payable solely from funds available for the purpose of the purchase. Lack of funds shall render this contract null and void and to the extent funds are not available, any delivered but unpaid for goods will be returned to Seller by Buyer. Do not include federal excise tax, state or city sales tax. The City shall furnish a tax exempt certificate if required. BID #Q-1019-02 FIRE DEPARTMENT UNIFORMS CITY OF COPPELL • PURCHASING DEPARTMENT • 255 PARKWAY BOULEVARD • COPPELL, TEXAS 75019 Page 26 CONTRACT TERMS AND CONDITIONS This Contract is made and entered into between the parties hereto in accordance with and subje ct to the following additional terms and conditions: 1. SELLER TO PACKAGE GOODS: Seller will package Goods in accordance with good commercial practice. Each shipping container shall be clearly marked and permanently packed as follows: (a) Seller’s name and address; (b) Consignee’s name, address, and purchase order or purchase release number and the supply agreement number if applicable; (c) Container numbe r and total number of container, e.g. box 1 of 4 boxes and (d) the number of the container bearing the package slip. Seller shall bear cost of packing unless otherwise provided. Goods shall be suitably packed to secure lowest transportation costs and to conform with requirements of common carriers and any applicable specifications. Buyer’s count or weight shall be final and conclusive on shipment not accompanied by packing lists. 2. SHIPMENT UNDER RESERVATION PROHIBITED: Seller is not authorized to ship the Goods under reservation and no tender of a bill of lading will operate as a tender of goods. 3. TITLE AND RISK OF LOSS: The title and risk of loss of the Goods shall not pass to the Buyer until the Buyer actually receives and takes possession of the Goods at the point or points of delivery. 4. DELIVERY TERMS AND TRANSPORTATION CHARGES: F.O.B. Destination Freight Prepaid unless delivery terms are specified otherwise in the bid. Seller shall pay for the transportation costs. 5. NO PLACEMENT OF DEFECTIVE TENDER: Every tender or delivery of Goods must fully comply with all provisions of this contract as to time of delivery, quality and the like. If a tender is made which does not fully conform, this shall constitute a breach and Seller shall not have the right to substitute a conforming tender, provided, where the time for performance has not yet expired, the Seller may reasonably notify Buyer of his intention to cure and may then make a conforming tender within the contract time but not afterward. 6. PLACE OF DELIVERY: The place of delivery shall be that set forth on the purchase order or in any other written designation by Buyer. The terms of this agreement are “No arrival, No sale.” 7. RIGHT OF INSPECTION: Buyer shall have the right to inspect the goods at delivery before accepting them. 8. REJECTION OF GOODS: It is agreed that if Buyer rejects any of the goods sold pursuant to this agreement, Buyer’s only duty shall be to reasonably notify Seller of the rejection and hold the goods for the disposition of Seller, and it is agreed that under no circumstances shall Buyer be required to rese ll the rejected goods or incur the cost to deliver same to Seller. 9. GRATUITIES: The Buyer may, by written notice to the Seller, cancel this contract without liability to the Seller if it be determined by the Buyer that gratuities, in the form of entertainment, gifts, or otherwise were offered or given by the Seller, or any agent or representative of the Seller, to any officer or employee of City of Coppell with view toward securing the contract or securing favorable treatment with respect to awarding or amending, or the making of any determination with respect to the performing of such a Contract. In the event this Contract is canceled by Buyer pursuant to this provision, Buyer shall be entitled in addition to any other rights and remedies, to recover and withhold the amount of the cost incurred by the Seller in providing such gratuities. 10. SPECIAL TOOLS AND TEST EQUIPMENT: If the price stated on the face hereof includes the cost of any special tooling or any special test equipment fabricated or requ ired by Seller for the purpose of filling this order, such special tooling equipment and any process sheets related thereto shall become the property of the Buyer and to the extent feasible shall be identified by the Seller as such. 11. WARRANTY - PRICE: BID #Q-1019-02 FIRE DEPARTMENT UNIFORMS CITY OF COPPELL • PURCHASING DEPARTMENT • 255 PARKWAY BOULEVARD • COPPELL, TEXAS 75019 Page 27 a. The price to be paid by the Buyer shall be that contained in the Seller’s bid which Seller warrants to be no higher than Seller’s current prices on orders for products of the kind and specification covered by the agreement for similar quantities under similar or like conditions and methods of purchase. In the event Seller breaches this warranty, the prices of the items shall be reduced to the Seller’s current prices on orders by others, or in the alternative, Buyer may cancel this contract without liability for breach or Seller’s actual expense. b. The Seller warrants that no person or selling agency has been employed or retained to solicit or secure this contract upon an agreement or understanding for commission, percentage, brokerage, or contingent fee excepting bona fide established commercial or selling agencies maintained by the Seller for the purpose of securing business. For breach of violation of this warranty, the Buyer shall have the right in addition to any other right or rights to cancel t his contract without liability and to deduct from the contract price, or otherwise recover the full amount of such commission, percentage, brokerage or contingent fee. 12. WARRANTY - PRODUCTS: Seller shall not limit or exclude any implied warranties and any attempt to do so shall render this contract voidable at the option of the Buyer. No such attempts to limit, disclaim or exclude any warranties, whether of fitness, merchantability or otherwise, by Seller shall be binding or effective. Seller warranties that the Goods furnished will conform to the specifications, drawings, and descriptions listed in the bid invitation and to the sample(s) furnished by Seller, if any. In the event of a conflict between the specifications, drawings, and descriptions, the specifications shall govern. 13. SAFETY WARRANTY: Seller warrants the product sold to the Buyer shall conform to the standards promulgated by the U.S. Department of Labor under the Occupational Safety and Health Act of 1970. In the event that the products do not conform to OSHA standards, Buyer may return the product for correction or replacement at the Seller’s expense. In the event that Seller fails to make the appropriate correction within a reasonable time, any correction made by Buyer will be at Seller’s expense. 14. NO WARRANTY BY BUYER AGAINST INFRINGEMENTS: As part of this contract for sale, Seller agrees to ascertain whether goods manufactured in accordance with the specifications attached to this agreement will give rise to the rightful claim of any third person by way of infringement or the like. Buyer makes no warranty that the production of goods according to the specifications will not give rise such claim, and in no event shall Buyer be liable to Seller in the event that Seller is sued on the grounds of infringement or the like. If Seller is of the opinion that an infringement or the like will result, he will notify Buyer to this effect in writing or the like, within two weeks after the signing of this agreement. If Buyer does not rec eive notice and a claim is asserted or Buyer is subsequently held liable for the infringement or the like, Seller will indemnify, defend and save Buyer harmless. If Seller in good faith ascertains that production of the goods in accordance with the specifications will result in infringement or the like, this contract shall be null and void except that Buyer will pay Seller the reasonable cost of his search as to infringements. 15. CANCELLATION: Buyer shall have the right to cancel for default on all or a ny part of the undelivered portion of this order if Seller breaches any of the terms hereof including warranties of Seller or if the Seller becomes insolvent or commits acts of bankruptcy. Such right of cancellation is in addition to and not in lieu of any remedies which Buyer may have at law or equity. The Buyer may for any reason whatsoever terminate performance under this Contract by the Seller for convenience at any time. The Buyer shall give notice of such termination to the Seller specifying when termination becomes effective. Goods received but unopened or unused shall be made available to Seller for delivery. Buyer will, in the event of termination, remit such sums to Seller as may be due only for those goods retained by Buyer. 16. FORCE MAJEURE: If by reason of Force Majeure, either party hereto shall be rendered unable wholly or in part to carry out its obligation under the Agreement, then such party shall give notice and full particulars of Force Majeure in writing to the other party within a reasonable time after the occurrence of the event or cause relied upon, and the obligation of the party giving such notice, so far as is effected by such Force Majeure, shall be suspended during the continuance of the inability then claimed, except as he reafter provided, but for no longer periods and such party shall endeavor to remove or overcome such inability with all reasonable dispatch. BID #Q-1019-02 FIRE DEPARTMENT UNIFORMS CITY OF COPPELL • PURCHASING DEPARTMENT • 255 PARKWAY BOULEVARD • COPPELL, TEXAS 75019 Page 28 The term “Force Majeure” as employed herein, shall mean acts of God, strikes, lockouts, or other industrial disturbance, act of public enemy, orders of any kind of government of the United States or State of Texas or any civil or military authority, insurrections, riots, epidemics, landslides, lightning, earthquakes, fires, hurricanes, storms, floods, washouts, droughts, arrests, restraints of government and people, civil disturbances, explosions, breakage or accidents to machinery, pipelines, or canals, or other causes not reasonably within control of the party claiming such inability. It is understood and agreed that the settlement of strikes and lockouts shall be entirely within the discretion of the party having the difficulty, and that the above requirements that any Force Majeure shall be remedied with all reasonable dispatch shall not require the settlements of strikes and lockouts by exceeding to the demands of the opposing party or parties when such settlement is unfavorable in the judgment of the party having the difficulty. 17. ASSIGNMENT - DELEGATION: No right or interest in this contract shall be assigned or delegation of any obligation made by Seller without the written permission of the Buyer. An attempted assignment or delegation of Seller shall be wholly void and totally ineffective for all purposes unless made in conformity with this paragraph. 18. MODIFICATIONS: This contract can be modified or rescinded only in writing signed by both parties or their duly authorized agents. 19. WAIVER: No claim or right arising out of a breach in contract can be discharged in whole or in part by a waiver or renunciation of the claim or right unless the waiver or renunciation is supported by consideration and is in writing signed by the aggrieved party. 20. INTERPRETATION - PAROLE EVIDENCE: This writing is intended by the parties as a final expression of their agreement and is intended also as a complete and exclusive statement of the terms of their agreement. No course of prior dealings between the parties and no usage of the trade shall be relevant to supplement or explain any term used in this agreement. Acceptance or acquiescence in a course of performance rendered under this agreement shall not be relevant to determine the meaning of this agreement even though the accepting or acquiescing party has knowledge of the performance and opportunity for objection . Whenever a term defined by the Uniform Commercial Code is used in this agreement, the definition contained in the Code is to control. 21. APPLICABLE LAW: This agreement shall be governed by the Uniform Commercial Code. Wherever the term “Uniform Commercial Code” is used, it shall be construed as meaning the Uniform Commercial Code as adopted in the State of Texas as effective and in force on the date of this agreement. 22. ADVERTISING: Seller shall not advertise or publish, without Buyer’s prior written consent, the fact that Buyer has entered into this contract, except to the extent necessary to comply with prior requests for information from an authorized representative of federal, state or local government. 23. RIGHT TO ASSURANCE: Whenever one party to this contract in good faith has reason to question the other party’s intent to perform he may demand that the other party give written assurance of his intent to perform. In the event that a demand is made and no assurance is given within five (5) days, the demanding party may treat this failure as an anticipatory repudiation of the contract. 24. PROHIBITION AGAINST PERSONAL INTEREST IN CONTRACTS: No officer or employee shall have a financial interest, direct or indirect, in any contract with the City, or be financially interested, directly or indirectly, in the sale to the City of any land, materials, supplies, or services, except on behalf of the City as an officer or employee. Any knowing and willful violation of this section shall constitute malfeasance in office, and any officer or employee guilty thereof shall forfeit his office or position. Any violation of this section with the knowledge, express or implied, of the person or corporation contracting with the governing body of the City shall render the contract involved voidable by the City Manager or the City Council. 25. ENTIRE AGREEMENT: This Contract, and all Specifications and Addenda attached thereto, constitute the entire and exclusive agreement between the Buyer and Seller with refe rence to the Goods. Specifically, but without limitation, this Contract supersedes any bid documents and all prior written or oral BID #Q-1019-02 FIRE DEPARTMENT UNIFORMS CITY OF COPPELL • PURCHASING DEPARTMENT • 255 PARKWAY BOULEVARD • COPPELL, TEXAS 75019 Page 29 communications, representations and negotiations, if any, between the Buyer and Seller not expressly made a part hereof. 26. INDEMNITY AND DISCLAIMER: BUYER SHALL NOT BE LIABLE OR RESPONSIBLE FOR, AND SHALL BE INDEMNIFIED, HELD HARMLESS AND RELEASED BY SELLER FROM AND AGAINST ANY AND ALL SUITS, ACTIONS, LOSSES, DAMAGES, CLAIMS, OR LIABILITY OF ANY CHARACTER, TYPE, OR DESCRIPTION, INCLUDING ALL EXPENSES OF LITIGATION, COURT COSTS, AND ATTORNEY'S FEES FOR INJURY OR DEATH TO ANY PERSON, OR INJURY OR LOSS TO ANY PROPERTY, RECEIVED OR SUSTAINED BY ANY PERSON OR PERSONS, INCLUDING THE SELLER, OR PROPERTY, ARISING OUT OF, OR OCCASIONED BY, DIRECTLY OR INDIRECTLY, THE PERFORMANCE OF SELLER UNDER THIS CONTRACT, INCLUDING CLAIMS AND DAMAGES ARISING IN WHOLE OR IN PART FROM THE NEGLIGENCE OF BUYER, WITHOUT, HOWEVER, WAIVING ANY GOVERNMENTAL IMMUNITY AVAILABLE TO THE BUYER UNDER TEXAS LAW AND WITHOUT WAIVING ANY DEFENSES OF THE PARTIES UNDER TEXAS LAW. THE PROVISIONS OF THIS INDEMNIFICATION ARE SOLELY FOR THE BENEFIT OF THE PARTIES HERETO AND NOT INTENDED TO CREATE OR GRANT ANY RIGHTS, CONTRACTUAL OR OTHERWISE, TO ANY OTHER PERSON OR ENTITY. IT IS THE EXPRESSED INTENT OF THE PARTIES TO THIS AGREEMENT THAT THE INDEMNITY PROVIDED FOR IN THIS CONTRACT IS AN INDEMNITY EXTENDED BY SELLER TO INDEMNIFY AND PROTECT BUYER FROM THE CONSEQUENCES OF THE SELLER’S AS WELL AS THE BUYER’S NEGLIGENCE, WHETHER SUCH NEGLIGENCE IS THE SOLE OR PARTIAL CAUSE OF ANY SUCH INJURY, DEATH, OR DAMAGE. 27. GOVERNING LAW: The Contract shall be governed by the laws of the State of Texas. Venue for any causes of action arising under the terms or provisions of this Contract or the Goods to be delivered hereunder shall be in the courts of Dallas County, Texas. 28. SUCCESSORS AND ASSIGNS: The Buyer and Seller bind themselves, their successors, assigns and legal representatives to the other party hereto and to successors, assi gns and legal representatives of such other party in respect to covenants, agreements and obligations contained in this Contract. The Seller shall not assign this Contract without written consent of the Buyer. 29. SEVERABILITY: The provisions of this Contract are herein declared to be severable; in the event that any term, provision or part hereof is determined to be invalid, void or unenforceable, such determination shall not affect the validity or enforceability of the remaining terms, provisions and pa rts, and this Contract shall be read as if the invalid, void or unenforceable portion had not been included herein. 30. NOTICES: All notices required by this Contract shall be presumed received when deposited in the mail properly addressed to the other party at the address set forth herein or set forth in a written designation of change of address delivered to all parties. BID #Q-1019-02 FIRE DEPARTMENT UNIFORMS CITY OF COPPELL • PURCHASING DEPARTMENT • 255 PARKWAY BOULEVARD • COPPELL, TEXAS 75019 Page 30 EXECUTED this _______ day of _______________________________, _________. SELLER: __________________________________________ (Signature) __________________________________________ (Type/Print Name and Title/Position) __________________________________________ (Address) __________________________________________ (City, State, Zip) _________________________________________ (City Manager) Item Quantity Five Star Total Galls Total Ball Caps Fitted 50 $14.31 $715.50 $14.50 $725.00 Ball Caps Adjustable 30 $13.88 $416.40 $14.00 $420.00 Knit Cap Short 30 $6.00 $180.00 $8.00 $240.00 Knit Cap Rolled 50 $6.50 $325.00 $8.00 $400.00 Boonie Hat 50 $15.99 $799.50 $16.00 $800.00 Nomex Shirts Class B Short Sleeve 30 NO BID $111.00 $3,330.00 Nomex Shirts Class B Long Sleeve 15 NO BID $136.00 $2,040.00 Nomex Pants- Station 100 $99.79 $9,979.00 $111.00 $11,100.00 Nomex Pants- Station 10 $106.94 $1,069.40 $111.00 $1,110.00 Station Wear Belt 40 $35.99 $1,439.60 $32.99 $1,319.60 Workout Shorts 40 $15.22 $608.80 $17.99 $719.60 Workout Pants 25 $29.99 $749.75 $22.99 $574.75 Station Wear Shorts 50 $45.00 $2,250.00 $41.50 $2,075.00 Dress Belt 20 NO BID $34.50 $690.00 T-shirts 300 $13.04 $3,912.00 $21.99 $6,597.00 S/S Polo shirt 200 $74.68 $14,936.00 $96.00 $19,200.00 L/S Polo shirt 50 $79.68 $3,984.00 $99.00 $4,950.00 Job Shirts 40 $72.73 $2,909.20 $69.99 $2,799.60 Class A Hat 12 NO BID $52.99 $635.88 Class A Coat 10 NO BID $160.00 $1,600.00 Class A Pants 10 NO BID $51.00 $510.00 Tie 20 NO BID $4.50 $90.00 White Shirt S/S (Admin Chiefs)10 $63.75 $637.50 $34.99 $349.90 White Shirt L/S (Admin Chiefs)6 $63.75 $382.50 $44.99 $269.94 Class A White Shirt 50 $21.00 $1,050.00 $16.99 $849.50 Dress Shoes 20 NO BID $57.50 $1,150.00 Name Plates 20 NO BID $11.00 $220.00 Gear Bag 12 $25.78 $309.36 $24.50 $294.00 Coat Soft Shell (Admin staff)5 $130.00 $650.00 $115.99 $579.95 Jacket( BC's and Admin Staff)5 $84.00 $420.00 $74.99 $374.95 Coat(Ops)12 NO BID $195.00 $2,340.00 $47,723.51 $68,354.67 Item Quantity Five Star Total Galls Total Ball Caps Fitted 50 $14.31 $715.50 $0.00 Ball Caps Adjustable 30 $13.88 $416.40 $0.00 Knit Cap Short 30 $6.00 $180.00 $0.00 Knit Cap Rolled 50 $6.50 $325.00 $0.00 Boonie Hat 50 $15.99 $799.50 $0.00 Nomex Shirts Class B Short Sleeve 30 NO BID $111.00 $3,330.00 Nomex Shirts Class B Long Sleeve 15 NO BID $136.00 $2,040.00 Nomex Pants- Station 100 $99.79 $9,979.00 $0.00 Nomex Pants- Station 10 $106.94 $1,069.40 $0.00 Station Wear Belt 40 $0.00 $32.99 $1,319.60 Workout Shorts 40 $15.22 $608.80 $0.00 Workout Pants 25 $29.99 $749.75 $0.00 Station Wear Shorts 50 $0.00 $41.50 $2,075.00 Dress Belt 20 NO BID $34.50 $690.00 T-shirts 300 $13.04 $3,912.00 $0.00 S/S Polo shirt 200 $74.68 $14,936.00 $0.00 L/S Polo shirt 50 $79.68 $3,984.00 $0.00 Job Shirts 40 $72.73 $2,909.20 $0.00 Class A Hat 12 NO BID $52.99 $635.88 Class A Coat 10 NO BID $160.00 $1,600.00 Class A Pants 10 NO BID $51.00 $510.00 Tie 20 NO BID $4.50 $90.00 White Shirt S/S (Admin Chiefs)10 $0.00 $34.99 $349.90 White Shirt L/S (Admin Chiefs)6 $0.00 $44.99 $269.94 Class A White Shirt 50 $0.00 $16.99 $849.50 Dress Shoes 20 NO BID $57.50 $1,150.00 Name Plates 20 NO BID $11.00 $220.00 Gear Bag 12 $25.78 $309.36 $0.00 Coat Soft Shell (Admin staff)5 $130.00 $650.00 $0.00 Jacket( BC's and Admin Staff)5 $84.00 $420.00 $0.00 Coat(Ops)12 NO BID $195.00 $2,340.00 $41,963.91 $17,469.82 Master City of Coppell, Texas 255 E. Parkway Boulevard Coppell, Texas 75019-9478 File Number: 2018-4218 File ID: Type: Status: 2018-4218 Resolution Agenda Ready 1Version: Reference: In Control: City Council 10/14/2018File Created: Final Action: Norwex FTZ LetterFile Name: Title: Consider approval of a Resolution approving a letter of support for the creation of a Foreign Trade Zone to be located at 220 N. Freeport Parkway in Coppell, Texas, and authorizing the Mayor to sign. Notes: Agenda Date: 10/23/2018 Agenda Number: 12. Sponsors: Enactment Date: Norwex FTZ 2018 - Resolution Memo.pdf, Norwex FTZ 2018 - Letter.pdf Attachments: Enactment Number: Hearing Date: Contact: Effective Date: Drafter: History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 10/23/2018City Council Text of Legislative File 2018-4218 Title Consider approval of a Resolution approving a letter of support for the creation of a Foreign Trade Zone to be located at 220 N. Freeport Parkway in Coppell, Texas, and authorizing the Mayor to sign. Summary Norwex USA is requesting a letter of support from the City of Coppell for the creation of a Foreign Trade Zone at 220 N. Freeport Parkway. This letter of support is just one step in the process of application for Norwex to receive FTZ status. Fiscal Impact: [Enter Fiscal Impact Statement Here] Page 1City of Coppell, Texas Printed on 10/19/2018 Master Continued (2018-4218) Staff Recommendation: Community Development recommends approval. Goal Icon: Business Prosperity Page 2City of Coppell, Texas Printed on 10/19/2018 1 MEMORANDUM To: Mayor and City Council From: Mindi Hurley, Director of Community Development Date: October 23, 2018 Reference: Consider approval of a Resolution approving a letter of support for the creation of a Foreign Trade Zone to be located at 220 N. Freeport Parkway in Coppell, Texas, and authorizing the Mayor to sign. 2030: Business Prosperity Executive Summary: Norwex USA is requesting a letter of support from the City of Coppell for the creation of a Foreign Trade Zone at 220 N. Freeport Parkway. This letter of support is just one step in the process of application for Norwex to receive Foreign Trade Zone status. Introduction: In 1994, Norwex began in Norway. The company produced personal care and cleaning products with a radically reduced amount of chemicals. In 1995, Norwex entered the home party market in Norway and grew dramatically. In 1999, Norwex expanded to Canada and the United States, and by 2010, they were selling products worldwide. The company has grown rapidly and outgrew their former space in Addison. After a long se arch, Norwex decided to move their U.S. Headquarters and distribution center to 800 W. Bethel. They are occupying 143,000 square feet of space at this building. In 2018, they decided to lease a second facility at 220 N. Freeport Parkway. This facility is approximately 211,000 square feet and includes a manufacturing and research component that would benefit from the creation of a Foreign Trade Zone. Analysis: A Foreign Trade Zone is a geographical area located in the United States in or near a U.S. Customs port of entry, where foreign and domestic merchandise are considered a part of international commerce and not within U.S. Customs territory, merchandise may be brought into a foreign trade zone without formal U.S. Customs entry, without payment of Custom duties or excised taxes, and without being subject to import limitations or restrictions. If the final product is exported from the United States, the U.S. Customs duties are excise taxes are not levied. Materials imported are also 2 exempt from ad valorem taxes if they are imported from outside the United States, held in a zone and then exported either in their original form or altered. A foreign trade zone or sub-zone may be established as an economic development incentive. Foreign Trade Zones are not approved by municipalities; however, requesting property owners must receive a letter of support from all impacted taxing jurisdictions as part of their application process. Therefore, this letter of support is just one step in the application process for Norwex USA. Legal Review: Agenda item did not require legal review. Fiscal Impact: N/A Recommendation: Economic Development recommends approval. Master City of Coppell, Texas 255 E. Parkway Boulevard Coppell, Texas 75019-9478 File Number: 2018-4194 File ID: Type: Status: 2018-4194 Agenda Item Agenda Ready 1Version: Reference: In Control: Finance 09/26/2018File Created: Final Action: Water and Sewer Fund Report to CouncilFile Name: Title: Report on the Water and Sewer Fund and Advanced Water Meter Project Update. Notes: Agenda Date: 10/23/2018 Agenda Number: 13. Sponsors: Enactment Date: Water Sewer Report and Meter Project Update.pdfAttachments: Enactment Number: Hearing Date: Contact: Effective Date: Drafter: History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 10/23/2018City Council Text of Legislative File 2018-4194 Title Report on the Water and Sewer Fund and Advanced Water Meter Project Update. Summary See attached memo. Fiscal Impact: There is no fiscal impact as no action is being taken. Staff Recommendation: This item is a report and update, so no action is necessary. Goal Icon: Page 1City of Coppell, Texas Printed on 10/19/2018 Master Continued (2018-4194) Sustainable City Government Page 2City of Coppell, Texas Printed on 10/19/2018 MEMORANDUM To: Mayor and City Council From: Jennifer Miller, Director of Finance Date: October 23, 2018 Reference: Report on Water and Sewer Fund and Advanced Water Meter Project Update 2030: Sustainable City Government Introduction: This agenda item is being presented to report on the impact of Dallas Water Utilities (DWU) and Trinity River Authority (TRA) costs on the Water Sewer Fund and provide an update on the Advanced Water Meter Project. Analysis: DWU Update: DWU and the Sabine River Authority (SRA) settled their dispute that began in 2015 when their water supply contract expired, and they could not agree on the renewal language related to compensation. At that time, the amount DWU paid SRA increased from $3 million to $24.1 million. Dallas was required to pay the increase and passed that increase on to its retail and wholesale customers. This was one of the factors that contributed to the first-rate increase in 21 years. Dallas reacted to the rate increase from the SRA by filing a case with the PUC. The administrative law judge set an interim rate and entered the order to establish an escrow fund. At the time the dispute was settled, the escrow balance was approximately $70.7 million. SRA received a pre-settlement amount of about $23.4 million. The balance of $47.3 million and any accrued interest will be used for payments in future years until depleted. The result of the settlement is the reduction in expenses incurred by DWU. DWU has stated that the reduction in expenses will be used to smooth future rate increase needs. The impact of the settlement on Coppell is a 12% (or approximately $820,000) decrease in the cost of water service provided by DWU when compared to what was included in the rate study. TRA Update: The increase in the cost charged to Coppell by TRA to provide wastewater service is 3% more than projected. The estimated cost was expected to decrease by nine percent. However, the cost provided by TRA decreased by only six percent. A larger decrease in cost was expected because our inflow and infiltration (I&I) issue was resolved, so our flow has decreased to pre-fiscal year 2015 levels. However, TRA is expecting rate increases between 2019 and 2023 even higher than projected in the rate study performed last year. This is because TRA increased its bond issuance projection from $490 million to $772.5 million. The bonds are scheduled to be issued between 2018 and 2023. Impact on Rates: These two cost centers greatly influence water and sewer rates. The current rates, based on similar consumption by our customers, plus other water and sewer revenue streams should generate about $19 million dollars in revenue for fiscal year 2019. Based on the new information received from DWU and TRA, total budgeted water sewer fund expenses for the new fiscal year is $18.2 million. Leaving the rates where they are results in an estimated increase in retained earnings of about $800 thousand. However, it is important to keep in mind that a rainy year could reduce water sales or unanticipated emergency repair could increase expenses. In addition, we are installing new advanced water meters which are projected to be more accurate than current meters. During the development and investigation phase of the water meter project, a random test of existing meters found the meters to be registering approximately 90% of actual water consumption. The new advanced water meters are expected to register to at least 98% of actual consumption. Due to the advanced water meters’ more accurate reading of actual usage, registered consumption may show a decrease or an increase. In addition, the ability of customers to monitor their usage by accessing the customer portal will provide customers with the tool to lower their consumption. Based on these variables and the decrease in overall water and sewer expenses, a water sewer rate increase will not be recommended this year. Advanced Water Meter Project Update: Information on the following items will be provided:  Internal Communication – methods being used to provide employees throughout the City with project information, so they can answer questions about the project.  External Communication – methods used to date and future communication plans.  Installation items completed to date.  Next steps in the installation process  Reasons to disallow an opt-out option Legal Review: No legal review was necessary for this item. Fiscal Impact: There is no fiscal impact as no action is being taken. Recommendation: This item is a report and update, so no action is necessary. Master City of Coppell, Texas 255 E. Parkway Boulevard Coppell, Texas 75019-9478 File Number: 2018-4225 File ID: Type: Status: 2018-4225 Agenda Item Mayor and Council Reports 1Version: Reference: In Control: City Secretary 10/16/2018File Created: Final Action: Mayor & Council ReportsFile Name: Title: Report by Mayor Hunt regarding Fall events. Notes: Agenda Date: 10/23/2018 Agenda Number: Sponsors: Enactment Date: Attachments: Enactment Number: Hearing Date: Contact: Effective Date: Drafter: History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 10/23/2018City Council Text of Legislative File 2018-4225 Title Report by Mayor Hunt regarding Fall events. Summary Fiscal Impact: Staff Recommendation: Goal Icon: Sustainable City Government Business Prosperity Page 1City of Coppell, Texas Printed on 10/19/2018 Master Continued (2018-4225) Community Wellness and Enrichment Sense of Community Special Place to Live Page 2City of Coppell, Texas Printed on 10/19/2018 Master City of Coppell, Texas 255 E. Parkway Boulevard Coppell, Texas 75019-9478 File Number: 2018-4226 File ID: Type: Status: 2018-4226 Agenda Item Council Committee Reports 1Version: Reference: In Control: City Secretary 10/16/2018File Created: Final Action: Council Committee ReportsFile Name: Title: A.CFBISD/LISD Liaison - Councilmembers Hill and Hinojosa-Smith B.CISD Liaison - Councilmember Hinojosa-Smith C.Coppell Seniors - Councilmembers Roden and Yingling Notes: Agenda Date: 10/23/2018 Agenda Number: Sponsors: Enactment Date: Attachments: Enactment Number: Hearing Date: Contact: Effective Date: Drafter: History of Legislative File Action: Result: Return Date: Due Date: Sent To: Date: Acting Body: Ver- sion: 1 10/23/2018City Council Text of Legislative File 2018-4226 Title A.CFBISD/LISD Liaison - Councilmembers Hill and Hinojosa-Smith B.CISD Liaison - Councilmember Hinojosa-Smith C.Coppell Seniors - Councilmembers Roden and Yingling Summary Fiscal Impact: Staff Recommendation: Goal Icon: Page 1City of Coppell, Texas Printed on 10/19/2018 Master Continued (2018-4226) Sustainable City Government Business Prosperity Community Wellness and Enrichment Sense of Community Special Place to Live Page 2City of Coppell, Texas Printed on 10/19/2018