Agenda Packet TC 04/12/2010 - Supplement1
April 6, 2010
Number 3
IMPORTANT INFORMATION ABOUT
THE TML LEGISLATIVE UPDATE
In the near future, the Texas Municipal League will stop mailing printed copies of the Legislative Update
except to cities that request them. The Legislative Update will continue to be sent by e-mail and will be
available to view and download at its usual location on the TML Web site. If you would like to continue
receiving a printed copy in the mail, please fill out the enclosed postcard and return it to TML at the
address provided. We thank you for your prompt response.
CITY FRANCHISE FEES IN THE CROSSHAIRS
On March 25, the Texas House Ways and Means Committee took testimony on what appeared, from a city
prospective, to be a relatively harmless interim study charge: “Study the tax structure as applied to cable versus
satellite service to determine if any unfair competition results from state tax policies.” But the hearing quickly
took a turn for the worse. Cable company lobbyists and some committee members began attacking city
franchise (right-of-way) fees as an unfair “tax” on cable television.
Cable lobbyists began their attack by pointing out that federal law limits the authority of local governments to
apply sales taxes to satellite providers. Thus, they argued, only cable providers pay franchise fees or sales
taxes, and that the cable industry is unfairly “taxed” when compared to satellite. Rep. John Otto, a member of
the committee, quickly and correctly pointed out that cities don’t control the airwaves and thus don’t have any
basis to impose franchise fees on satellite. Cable representatives responded that cities could use their general
taxing authority to tax satellite companies, and this, absent the federal regulations, would have levelled the
playing field between cable and satellite. Despite the many questions surrounding this argument, cable
lobbyists persisted in their testimony that franchise fees are nothing but a tax that unfairly burden them when
compared to other industries. Eventually, one committee member wondered aloud why the state doesn’t
simply do away with municipal authority to impose franchise fees altogether.
2
The characterization of franchise fees as a tax is, of course, erroneous. Franchise fees represent the rental cost
for city land when private companies run pipes, wires, or facilities across that land. Cities may not give away
the use of city land to a private company, just as they may not give any other city resources to a private
individual without charge. Satellite companies don’t pay franchise fees because they don’t use city rights-of-
way. It’s that simple.
It is likely that legislation filed during the 2011 session will once again attack cities’ right to charge rent for the
use of their land. TML will carefully monitor and oppose such bills.
The portion of the Ways and Means Committee testimony devoted to franchise fees lasted approximately one
hour and can be viewed here: CLICK HERE.
FCC APPOINTS TASK FORCE
TO STUDY RIGHT-OF-WAY RENTAL FEES
In the February 22 edition of the TML Legislative Update, we raised a concern about Federal Communications
Commission (FCC) preemption of municipal right-of-way fees. A local controversy in New York State,
coupled with the pending release of the FCC’s “National Broadband Plan (NBP),” could have had serious
financial implications for cities across the nation, including Texas cities.
Some telecommunications and cable companies have urged the FCC – as part of the NBP and the New York
State proceeding – to adopt a unilaterally-imposed, federal standard for compensation for use of public rights-
of-way that would limit municipal fees to the actual costs of regulation.
Since right-of-way rental fees constitute nearly ten percent of many Texas cities’ general revenues, negative
FCC action would be a financial disaster. Many Texas cities, along with the Texas Municipal League’s
national partners, including the National League of Cities, the International Municipal Lawyers Association,
the U.S. Conference of Mayors, and the National Association of Telecommunications Officers and Advisors,
worked hard to protect city authority in this area.
The FCC recently submitted the NBP to Congress. The plan makes recommendations on “improving the
business case for deploying and upgrading broadband network infrastructure and facilitating competitive
entry.” Among many other specific recommendations for improving broadband infrastructure, the NBP calls
on the FCC to “establish a joint task force with state…and local policymakers to craft guidelines for rates,
terms and conditions for access to public rights-of-way.” In other words, the FCC has recommended a task
force in lieu of unilaterally imposing right-of-way fee standards. It also appears that the FCC will postpone
any action on the New York State proceeding pending the input of the task force.
To view the NBP, CLICK HERE.
The League will continue to monitor and support the national associations’ efforts to oppose FCC preemption.
3
GRANT PROGRAM WOULD
SAVE AND CREATE CITY JOBS
The United States House of Representatives is considering legislation that would establish grants to help save
municipal jobs and prevent layoffs. H.R. 4812, also known as the Local Jobs for America Act, has as its
purpose: “To provide funds to States, units of general local government, and community based organizations
to save and create local jobs through the retention, restoration, or expansion of services needed by local
communities, and for other purposes.”
If passed, this legislation would allocate $75 billion to cities and counties nationwide to be directed
specifically to fund full-time, full-year government or local community organization jobs. Of this amount,
roughly $52 billion would be dedicated to communities with more than 50,000 residents, and $23 billion
would be granted to states to be distributed among communities with fewer than 50,000 residents. In addition,
the bill also is drafted to include $1.18 billion to create an estimated 5,550 police officer jobs nationwide, and
$500 million to hire and retain firefighters.
For more information on the Local Jobs for America Act, please visit the National League of Cities’ Web site
at www.nlc.org.
CITY FUNDING OF CONTINUATION OF
HEALTH BENEFITS IS EXTENDED AGAIN
Federal requirements that employers pay for a portion of COBRA health benefits have been extended through
March 31, 2010. The act that extended the COBRA premium reduction eligibility period to March 31, 2010,
also expanded eligibility to any employee whose reduction of hours causes a loss of health coverage and who
is then terminated on or after March 2, 2010, through March 31, 2010. This expansion also allows individuals
whose reduction in hours caused a loss of health coverage and were later terminated, to sign up for
continuation of health coverage under COBRA and receive the subsidy from the city, if the individuals did not
elect COBRA continuation coverage when it was first offered or elected but subsequently discontinued
COBRA. In the past, a city was not responsible for paying for that continued health coverage under COBRA,
but could do so if it chose to. However, a new law, passed as part of last year’s federal stimulus package,
requires cities to pay 65 percent of the cost of the continued health benefits if an employee is involuntarily
terminated for a reason other than misconduct. The city is then reimbursed for the payment through its payroll
taxes.
For more information, go to http://www.dol.gov/ebsa/cobra.html. This topic is also discussed in the Legal
Q&A section of the February issue of Texas Town & City magazine.
Contact Laura Mueller at the TML Legal Department with questions at (512) 231-7400 or laura@tml.org.
ATTORNEY GENERAL REJECTS REQUEST
CHALLENGING STATE AGENCY AUTHORITY OVER CITIES
For the past several years, the Texas Board of Professional Engineers (TBPE) has sought to enforce state
engineering laws against cities and city officials. In the most recent episode, the City of Brownwood entered
into an agreed order with the TBPE to avoid further entanglements.
4
According to the TBPE, City of Brownwood employees in the city’s development services and public works
departments and the office of the city manager were responsible for the acceptance of design plan sheets for a
medical office building. The plans were signed and sealed by a design professional (an architect), and the city
subsequently issued a building permit. Based on the size of the building, the plans should have been prepared
by a Texas licensed professional engineer. However, the site grading plan did not bear a seal or signature of a
Texas licensed professional engineer. The TBPE alleged that the acceptance of the plan by the city violated
the state’s Engineering Practices Act.
According to letters and other information obtained by TML, the TBPE threatened to impose an administrative
penalty against the City of Brownwood in 2006, and that action was dealt with pursuant to an agreed order.
Apparently, the building in the plans developed defects that were attributable to poor engineering. Subsequent
to the appearance of the defects, the TBPE once again – in 2009 – informed the city that it violated the
Engineering Practices Act by accepting the plans and issuing the permit. Again, to avoid further costs of
contesting the enforcement, the city entered into a second agreed-upon order with the TBPE in 2009.
In response, State Representative Bill Keffer (R- Eastland) asked the attorney general whether the TBPE has
the authority to take enforcement action against a city. TML, the Texas City Attorneys Association (TCAA),
and the Building Officials Association of Texas (BOAT) filed comments on the request, taking the position
that neither a city’s building official nor any other city official is “responsible for enforcing laws that affect the
practice of engineering.” Rather, a building official is generally charged to ensure that buildings are
constructed according to the city’s building code.
The TBPE’s action signals a disturbing trend of state agencies seeking enforcement against cities. These
agencies are created to regulate professions, not political subdivisions. An opinion request that is remarkably
similar to the present request is RQ-00775-GA. That request deals with the authority of the Department of
State Health Services (DSHS) to enforce state asbestos regulations against cities. The TML position is that a
city is not the responsible party when it comes to asbestos abatement, nor should it be the entity that regulates
engineers.
On March 4, the attorney general declined to issue an opinion on Representative Keffer’s request “because the
opinion process cannot be used to appeal an agreed board order between a municipality and the [TBPE]…”
The League’s position remains that the TBPE was created to monitor and police engineers and should not
“regulate” cities.
MUNICIPAL COST INFLATION STILL RISING
The Municipal Cost Index (MCI), developed exclusively by American City and County magazine, shows the
effect of inflation on the cost of providing municipal services. The MCI is used to study price trends, make
informed government contract decisions, and facilitate sound budget planning.
According to American City and County magazine, the MCI for March was 210.0. That’s 0.6 percent higher
than last month’s MCI and an increase of 3.1 percent over the previous twelve months. The March 2009 MCI
was 203.6.
TML member cities may use the material herein for any purpose.
No other person or entity may reproduce, duplicate, or distribute any part of this
document without the written authorization of the Texas Municipal League.
100 Municipal Drive Trophy Club Entities Trophy Club , Texas 76262
Meeting Minutes
Economic Development Corporation
48 (EDC 48)
Monday, February 8, 2010 6:30 PM Svore Municipal Building Boardroom
BOARD MEMBERS:
Present: 7 -President James Hicks , Director Dan Bishop, Director Zachary Jeffery,
Vice President Dave Glaser, Secretary/Treasurer Dean Murray, Director
Nick Sanders, and Director Rebecca Shuman
STAFF AND GUEST(S) PRESENT:
Stephen Seidel, Assistant Town Manager
Shannon DePrater, Deputy Town Secretary
Glenn Strother, EDC 4B Council Liaison
Bill Rose, Council member
Call To Order and announce a quorum.
President Hicks, noting a quorum of EDC 4B, called the regular session to
order at 6:35 p .m.
REGULAR SESSION
1. 2010-78-T Discuss and take appropriate action regarding EDC 4B presentation to Town Coun cil
on April 12, 2010.
Mayor Pro Tern Strother relayed that the Council has questions regarding the Board's
activities, including what is EDC 4B doing, where is it spending its money and what is
the rate of return.
President Hicks asked if a PowerPoint pres entation explaining the Council's concerns
would suffice; Mayor Pro Tern Strother said it would.
Assistant Town Manager Seidel mentioned thai he and Hicks will work on a
presentation and forward to the Board for review, comments and suggestions.
This matter was Discussion only -No action taken
2 . 2010-79-T Discuss and take appropriate action regarding EDC 4B Rules of Procedure and Town
Council.
Attachments: EDC 4B Artic les of Incorporation and Bylaws .pdf
Director Glaser asked why this item was on the agenda. Seidel explained that this
agenda item goes a step furlher than the previous agenda item.
Trophy Club Entiti es Page 1
Economic Development Meeting Minutes February 8, 2010
Corporation 4B (EDC 4B)
3. 2010·80·T
4. 2010·81·T
5. 2010·82·T
Seidel mentioned to the Board that he will ask Jason Claunch from Catalyst
Commercial to be in attendance at the April 12, 2010 Council meeting.
This matter was Discussion only· No action taken
Discuss and take appropriate action regarding Regency Center holiday decorations.
Director Sanders mentioned that he wanted to begin discussion of purchasing holiday
decorations now, to make sure there is enough time to discuss, approve and
purchase items for the next holiday season, depending on Regency Center's
decision.
Director Shuman asked what the goal of this agenda item is. Director Sanders said to
promote visitation of the shopping center.
Director Shuman asked what the decorations would cost the Board.
Director Shuman suggested beautifying the lot for the many car wash events by
erecting a sign monument that would allow switching out signs for each organization
and adding benches.
Director Murray shared creating a lighting event of different displays of neighboring
clubs and organizations would aid visitation in the shopping center.
Director Sanders moved to instruct Seidel to move forward with discussions
with Regency Center and report back. Director Murray seconded . The motion
CARRtED by the following vote:
Aye: 7 -President Hicks, Director Bishop, Director Jeffery, Vice President Glaser,
Secretary/Treasurer Murray, Director Sanders, and Director Shuman
Discuss and take appropriate action regarding a branding initiative.
Director Shuman shared that the new home centers are prominently displaying the
Clock Tower in their brochures. Shuman believes that now is the time for the Town
to take a branding initiative.
Director Bishop believes that the Council should be doing the Branding, not EDC 4B.
Director Sanders mentioned that branding should be a topic in the presentation to
Council.
Seidel mentioned adding Branding as a topic in the presentation to ask Council if they
would like the Board to move forward and/or help fund it.
Director Sanders moved to continue discussionlinvestigation of Branding and
to present the concept and need of Branding in the presentation to Council
and seek Council direction. Director Shuman seconded. The motion CARRIED
by the following vote:
Aye: 7 -President Hicks, Director Bishop, Director Jeffery, Vice President Glaser,
SecretarylTreasurer Murray, Director Sanders, and Director Shuman
Discuss and take appropriate action regarding EDC 4B Meeting Dates for March,
April and May 2010.
Attachments: Calend ar. pdf
Trophy Club Entities Page 2
Economic Development Meeting Minutes March 1, 2010
Corporation 48 (EDC 48)
This matter was Discussion only -No action taken
6. 2010-124-T
7. 2010-12S-T
8. 2010-126-T
9. 2010-127-T
Discuss and take appropriate action regarding the approval of the February 2, 2010
Regular Session Minutes.
Attachments: February 8 2010 Minutes.pdf
Director Shuman moved to approve the February 8, 2010 Regular Session
Minutes as presented. Director Sanders seconded. The motion CARRIED by
the following vote:
Aye: 5 -President Hicks, Director Bishop, Vice President Glaser, Director
Sanders, and Director Shuman
Discuss and take appropriate action regarding the approval of the January 2010
Financials.
Attachments: January 2010 Monthly Financial Reports.pdf
Director Sanders moved to approve the December 2009 Financials as
presented. Director Shuman seconded. The motion CARRIED by the following
vote:
Aye: 5 -President Hicks, Director Bishop, Vice President Glaser, Director
Sanders, and Director Shuman
Future Agenda Items.
Attachments: EDC 4B Future Agenda Items .pdf
Seidel will be bringing a draft presentation for the Apn112, 2010 Council update to the
Board at the next meeting .
Seidel shared that the May meeting will be a Planning and Zoning Workshop, with
Carolyn Huggins, Planning and Zoning Manager taking the Board through the
development process.
Sanders asked about the TxOot Signage item -Seidel keeps contacting TxOot and
cannot get a good contact. Sanders suggested calling someone at Southlake; they
just added Value Place to a Southlake sign.
Sanders mentioned the Chamber item on the list because the Chamber is getting
more active and this item could also serve as a Chamber report.
This matter was Discussion only -No action taken
Next meeting date : April 5, 2010
President Hicks mentioned that the next meeting is scheduled for AprilS, 2010 at
6:30p .m .
This matter was Discussion only -No action taken
Adjourn
Trophy Club Entities Page 3
Economic Development Meeting Minutes February 8, 2010
Corporation 4B (EDC 4B)
~1~ ~2010-88-l'\
\ Adjourn\
Director Shuman moved to approve the January 11, 2010 Regular Session
Minutes as presented. Director Sanders seconded. The motion CARRIED by
the following vote:
Aye: 7 -President Hicks, Director Bishop, Director Jeffery , Vice President Glaser,
SecretarylTreasurer Murray, Director Sanders , and Director Shuman
Future Agenda Items .
Attachments: EDC 4B Future Agen da Ite ms .pd f
Director Sanders -dis c us s any potential use of funds as related to the Town's
25th anniversary
Director Sanders -dis c uss Board involvement with the Chamber and their
programs
Director Gla s er -asked for a presentation by Adam Adams regarding the Park
Bond Projects , including a Trophy Club Park update to be on the March 1 meeting .
Seidel clarified the training requirements for the EDC 4B Board; Director Shuman
asked to leave this item on the list.
'TJ:Jl~.m~was Discus~nly. No action taken (I
A motion was made by Director Shuman, seconded by Director Bishop, that
this meeting be Adjourned. The motion CARRIED by the following vote:
.Aye : 1,.:. President Hicks, Director Bishop, Director Jeffery, Vice President Glaser,
SecretarylTreasurer Murray, Director Sanders, and Director Shuman
Meeting adjourned at 8:08 p.m.
Trophy Club Entities Page 4
100 Municipal Drive Trophy Club Entities Trophy Club, Texas 76262
Meeting Minutes
Economic Development Corporation
48 (EDC 48)
Monday, March 1,2010 6:30 PM Public Services Conference Room
STATE OF TEXAS
COUNTY OF DENTON
The Economic Development Corporation 4B of the Town of Trophy Club, Texas, met
in Regular Session on March 1, 2010. The meeting was held within the boundaries of
the Town and was open to the public.
BOARD MEMBERS:
Present: 5 -President James Hicks, Director Dan Bishop, Vice President Dave Glaser,
Director Nick Sanders, and Director Rebecca Shuman
Absent: 2 -Director Zachary Jeffery, and SecretarylTreasurer Dean Murray
STAFF AND GUEST(S) PRESENT:
Stephen Seidel, Assistant Town Manager
Shannon DePrater, Deputy Town Secretary I RMO
Bill Rose, Council member
Adam Adams, Parks &Recreation Director
Joseph Walker, Professor, UNTIConsultant
Call To Order and announce a quorum.
President Hicks, noting a quorum of EDC 4B, called the regular session to
order at 6:39 p.m.
REGULAR SESSION
1. 2010-118-T Presentation by Director Adam Adams regarding Trophy Club Parks and Recreation
projects and activities.
Attachments: Te Park S um m ary. pdf
Parks and Recreation Director Adam Adams and Dr. Joseph Walker updated the
Board on the Trophy Club Parks and Recreation projects and activities and
addressed questions from the Board.
This matter was Discussion only -No action taken
Trophy Club Entities Page 1
Economic Development Meeting Minutes March 1, 2010
Corporation 48 (EDC 48)
2. 2010-120-T
3. 2010-121-T
4. 2010-122-T
5. 2010-123-T
Discuss and take appropriate action regarding Town Audit expense in the amount of
$5000 .
Assistant Town Manager Stephen Seidel explained that in order to be more
financially transparent and in accordance with governmental accounting principles,
the Town will now be dividing up the audit expense to the appropriate funds . Because
EDC 4B is a separate fund and requires a separate audit within the overall Town
audit, the expense will need to be paid by EDC 4B funds . The Town is doing this for
all separate non-General Fund funds. Seidel recommended Finance creating a new
line item named "Audit" and transfer $5,000 from an existing line item to cover the
expense.
Director Sanders moved to recommend Finance create a new line item named
"Audit" under expenditures and transfer the amount already paid from
Miscellaneous Expenses to cover the expense. Director Shuman seconded.
The motion CARRIED by the following vote:
Aye: 5 -President Hicks, Director Bishop, Vice President Glaser, Director
Sanders, and Director Shuman
Discuss and take appropriate action regarding the 2010 ICSC Conference .
Seidel shared that a basic 10'x10' booth space has a member cost of $370. This
price includes a company sign and pipe/drape booth. The price does not include any
type of furniture. Furniture must be ordered separately from the official expo
contractor. Booth space is reserved on a first come, first serve basis .
Seidel will look into the additional costs to furniture , purchasing giveaways and
printing costs and bring back to the Board.
Director Shuman moved to direct Seidel to rent a booth, including making
deposits for furniture and other necessities not to exceed $1000. Director
Glaser seconded. The motion CARRIED by the following vote:
Aye: 5 -President Hicks, Director Bishop, Vice President Glaser, Director
Sanders, and Director Shuman
Receive Council update from Mayor Pro Tem Strother; discussion of same .
No action taken, Mayor Pro Tem Strother was not in attendance.
This matter was Discussion only -No action taken
Receive Commercial Property update including current projects; discussion of same .
Seidel updated the Board regarding :
26 Acre Tract -Seidel tentatively set a meeting for this week with Beck Properties.
Trophy Wood Business Center -Seidel and Jason Claunch from Catalyst
Commercial have a few potential prospects for this center, including site visits.
Regency Center -has solid operators looking at this site .
Hampton Inn -received a site visit from owner's con sultant.
Trophy Club Entities Page 2
Economic Development Meeting Minutes March 1, 2010
Corporation 4B (EDC 4B)
6. 2010-124-T
7. 2010-12S-T
8. 2010-126-T
9. 2010-127-T
Adjourn
This matter was Discussion only -No action taken
Discuss and take appropriate action regarding the approval of the February 2, 2010
Regular Session Minutes.
A Hachments: February 8 2010 Minutes.pdf
Director Shuman moved to approve the February 8, 2010 Regular Session
Minutes as presented. Director Sanders seconded. The motion CARRIED by
the following vote:
Aye: 5 -President Hicks, Director Bishop, Vice President Glaser, Director
Sanders, and Director Shuman
Discuss and take appropriate action regarding the approval of the January 2010
Financials.
AHachments: January 2010 Monthly Financial Reports.pdf
Director Sanders moved to approve the December 2009 Financials as
presented. Director Shuman seconded. The motion CARRIED by the following
vote:
Aye: 5 -President Hicks, Director Bishop, Vice President Glaser, Director
Sanders, and Director Shuman
Future Agenda Items.
Attachments: EDC 4 B Future Agenda Items.pdf
Seidel will be bringing a draft presentation for the April 12, 2010 Council update to the
Board at the next meeting.
Seidel shared that the May meeting will be a Planning and Zoning Workshop, with
Carolyn Huggins, Planning and Zoning Manager taking the Board through the
development process.
Sanders asked about the TxOot Signage item -Seidel keeps contacting TxOot and
cannot get a good contact. Sanders suggested calling someone at Southlake; they
just added Value Place to a Southlake sign.
Sanders mentioned the Chamber item on the list because the Chamber is getting
more active and this item could also serve as a Chamber report.
This matter was Discussion only -No action taken
Next meeting date: April 5, 2010
President Hicks mentioned that the next meeting is scheduled for April 5, 2010 at
6:30 p.m.
This matter was Discussion only -No action taken
Trophy Club Entities Page 3
Economic Development Meeting Minutes March 1, 2010
Corporation 48 (EDC 48)
Director Shuman moved to adjourn at 8:29 p.m. Director Bishop seconded.
The motion CARRIED by the following vote:
Aye : 5 -President Hicks, Director Bishop , Vice President Glaser, Director
Sanders, and Director Shuman
Trophy Club Entities Page 4
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