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Agenda Packet TC 02/07/2011
Town Council Trophy Club Entities Meeting Agenda 100 Municipal Drive Trophy Club, Texas 76262 Svore Municipal Building Boardroom6:00 PMMonday, February 7, 2011 Call to order and announce a quorum. WORKSHOP SESSION - 6:00 P.M. 1.2011-47-T Discussion of Code of Ethics and Conduct Ordinance posted on the Regular Session Council Agenda for February 7, 2011. ORD 2011-03 Code of Ethics & Conduct.pdfAttachments: 2.2011-48-T Discussion of agenda items posted for consideration on the Regular Session Council Agenda for February 7, 2011. CONVENE INTO REGULAR SESSION - ESTIMATED START TIME 7:00 P.M. Invocation Pledges: Pledge of allegiance to the American Flag. Pledge of allegiance to the Texas Flag. "Honor the Texas flag; I pledge allegiance to thee, Texas, one state under God, one and indivisible." Citizen Presentations: This is an opportunity for citizens to address the Council on any matter whether or not it is posted on the agenda. The Council is not permitted to take action on or discuss any presentations made to the Council at this time concerning an item not listed on the agenda. The Council will hear presentations on specific agenda items prior to the Council addressing those items. You may speak up to three (3) minutes or the time limit determined by the Mayor or presiding officer. To speak during this item you must complete the Speaker's form that includes the topic(s) of your statement. Topics of presentation should be limited to matters over which the Council has authority. PRESENTATIONS 3.2011-52-T Presentation from Baylor Regional Medical Center President Doug Lawson on Hospital and Health Care Updates; discussion of same. Town Council 1 of 205 Meeting Date: February 7, 2011 February 7, 2011Town Council Meeting Agenda 4.2011-58-T Presentation of the first quarter report for 2010-2011 fiscal year through December 2010: discussion of same. 1st Quarterly Fiscal Report.pdfAttachments: CONSENT AGENDA All matters listed as Consent Agenda are considered to be routine by the Town Council and will be enacted by one motion. There will not be a separate discussion of these items. If discussion is desired, that item will be removed from the consent agenda and will be considered separately. 5.2011-49-T Consider and take appropriate action regarding the Minutes dated January 3, 2011. January 3 2011 Minutes.pdfAttachments: 6.2011-50-T Consider and take appropriate action regarding the Council Retreat Minutes dated January 7, 2011. January 7 2011 Minutes (Council Retreat).pdfAttachments: 7.2011-51-T Consider and take appropriate action regarding the Minutes dated January 17, 2011. January 17 2011 Minutes.pdfAttachments: REGULAR SESSION 8.2011-40-T Consider and take appropriate action regarding granting a Special Privilege Request to the Trophy Club Women's Club to hold two Community Garage Sale Events in 2011. Applicant: Rebecca Freed on behalf of Trophy Club Women's Club. 2011 Staff Report - TC.pdf 2011 Application.pdf Attachments: 9.2011-53-T Consider and take appropriate action regarding an Ordinance of the Town of Trophy Club, Texas, amending the Code of Ordinances of The Town by adding Article XVII entitled “Code of Ethics and Conduct” to Chapter 1 entitled “Administration” of the Code of Ordinances by adopting an Ethics Policy, establishing an Ethics Commission, and providing for the disposition of alleged violations; providing a penalty; and providing an effective date. ORD 2011-03 Code of Ethics & Conduct.pdfAttachments: 10.2010-691-T Consider and take appropriate action regarding an Ordinance of the Town of Trophy Club, Texas amending the FY 2010-2011 Budget of the Town of Trophy Club, Texas; providing for the incorporation of premises; providing for an amendment to appropriate funds needed to pay engineering costs related to capital improvements at Harmony Park (Budget Amendment No. 1 making a supplemental appropriation in accordance with the Town Charter); providing a savings and repealer clause; providing for severability; providing for engrossment and enrollment; and providing an effective date. ORD 2011-04 Budget Amend No 1 Engr Fees Harm Park.pdfAttachments: Town Council 2 of 205 Meeting Date: February 7, 2011 February 7, 2011Town Council Meeting Agenda 11.2011-54-T Consider and take appropriate action regarding an Ordinance of the Town of Trophy Club, Texas amending the FY 2010-2011 Budget of the Town of Trophy Club, Texas; providing for the incorporation of premises; providing for an amendment to appropriate revenue as needed to pay increased costs of Denton County Police dispatch services provided to the Town (Budget Amendment No. 2 making a supplemental appropriation in accordance with the Town Charter); providing a savings and repealer clause; providing for severability; providing for engrossment and enrollment; and providing an effective date. ORD 2011-05 Budget Amend No 2 Dispatch.pdfAttachments: 12.2011-55-T Consider and take appropriate action regarding an Interlocal Cooperation Agreement between Denton County and the Town of Trophy Club for participation in a Shared Governance Communication and Dispatch Services System; authorizing the payment of a fee not to exceed $31,766 for the costs of those services for the term of the Agreement; authorizing the Mayor or her designee to execute necessary documents and providing an effective date. 2010-11 Combined Communications Contracts.pdfAttachments: 13.2011-56-T Consider and take appropriate action regarding a Resolution approving the execution of a Participation Agreement between the Town and the Standing Steering Committee comprised of cities served by Oncor Electric Delivery Company; Designating the Town Manager as the Representative for the Town; Authorizing the Town Manager to execute the Participation Agreement; and providing an effective date. RES 2011-02 OCSC Participation and Agreement.pdfAttachments: 14.2011-57-T Consider and take appropriate action regarding a Resolution suspending the February 14, 2011 effective date of Oncor Electric Delivery Company's requested rate change to permit the Town to study the request and establish reasonable rates; approving cooperation with the Steering Committee of Cities served by Oncor; retaining legal and consulting services to negotiate with Oncor; and providing an effective date. RES 2011-03 Suspension Resolution.pdf 2011 Oncor Rate Case - Suspension Memo.pdf Oncor Rate Case Summary Handout.pdf Suspension Resolution Staff Report.pdf Attachments: 15.2011-59-T Consider and take appropriate action regarding the regularly scheduled Town Council meeting of Monday, February 21, 2011. 16.2011-61-T Town Manager Slye's update regarding the following; discussion of the same. - Storm Report - Council Retreat Reschedule Update - Local Election Filing Period Update - Drainage Study Update 17.2011-62-T Mayor and Council Updates regarding training opportunities, educational sessions, and regional meetings; discussion of same. Town Council 3 of 205 Meeting Date: February 7, 2011 February 7, 2011Town Council Meeting Agenda 18.2011-63-T Receive Mayor Pro Tem Rose's liaison report regarding the January 18, 2011 TCMUD No. 1 Meeting; discussion of same. - Water Conservation - Future Water Storage - Rate Order Modification 19.2011-64-T Items for Future Agendas . Future Agenda Items List.pdfAttachments: This item allows Council to request the placement of items on upcoming agendas when the topic of discussion requires research and review that cannot be accomplished in the time frame between regular Council meetings. However, a Council Member may request that an item be placed on the next regularly scheduled meeting without first placing that item on the Future Agenda Items list. All requests for agenda items must comply with Charter requirements. ADJOURN * The Town Council may convene into executive session to discuss posted items as allowed by the Texas Open Meeting Act, LGC.551.071 CERTIFICATION I certify that the above notice was posted on the front window of the Svore Municipal Building, 100 Municipal Drive, Trophy Club, Texas, on Friday, February 4, 2011 by 5:00 P.M. in accordance with Chapter 551, Texas Government Code. _______________________________ Shannon DePrater, Town Secretary If you plan to attend this public meeting and have a disability that requires special needs, please contact the Town Secretary’s Office at 682-831-4600, 48 hours in advance and reasonable accommodations will be made to assist you. I certify that the attached notice and agenda of items to be considered by this Board was removed by me from the front window of the Svore Municipal Building, 100 Municipal Drive, Trophy Club, Texas, on the __________ day of ______________________, 2011. ________________________________, Title: ___________________________ Town Council 4 of 205 Meeting Date: February 7, 2011 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12011-47-T Name: Status:Type:Agenda Item Regular Session File created:In control:1/31/2011 Town Council On agenda:Final action:2/7/2011 Title:Discussion of Code of Ethics and Conduct Ordinance posted on the Regular Session Council Agenda for February 7, 2011. Attachments:ORD 2011-03 Code of Ethics & Conduct.pdf Action ByDate Action ResultVer. Title Discussion of Code of Ethics and Conduct Ordinance posted on the Regular Session Council Agenda for February 7, 2011. Town Council 5 of 205 Meeting Date: February 7, 2011 TOWN OF TROPHY CLUB, TEXAS ORDINANCE 2011-03 AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS, AMENDING THE CODE OF ORDINANCES OF THE TOWN OF TROPHY CLUB BY ADDING ARTICLE XVII ENTITLED “CODE OF ETHICS AND CONDUCT” TO CHAPTER 1 ENTITLED “ADMINISTRATION” OF THE CODE OF ORDINANCES; PROVIDING FOR THE INCORPORATION OF PREMISES; PROVIDING FOR AN AMENDMENT ADOPTING AN ETHICS POLICY, ESTABLISHING AN ETHICS COMMISSION AND PROVIDING FOR DISPOSITION OF ALLEGED VIOLATIONS; PROVIDING A CUMULATIVE REPEALER CLAUSE; PROVIDING FOR SEVERABILITY; PROVIDING FOR ENGROSSMENT AND ENROLLMENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Town of Trophy Club, Texas is a Home Rule Town acting under its Charter adopted by the electorate pursuant to Article XI, Section 5 of the Texas Constitution and Chapter 9 of the Local Government Code; and WHEREAS, at a Special Election held in accordance with Ordinance 2009-07, within the Town of Trophy Club, Texas, on the 9th day of May, 2009, more than a majority of the duly qualified resident electors of the Town of Trophy Club, voting in the Special Election, voted in favor of the approval and adoption of various amendments to the Home Rule Charter for the Town of Trophy Club, Texas; and WHEREAS, on the 18th day of May, 2009, the Town Council of the Town of Trophy Club adopted Ordinance 2009-12 canvassing the returns of the Special Election and declaring that the Charter had been so amended in accordance with the official results of the Special Election and the Order of the Special Election, and thereby approved and adopted amendments to the Home-Rule Charter of the Town of Trophy Club; and WHEREAS, a Code of Ethics and Conduct, and an Ethics Commission amendment were included in Ordinance 2009-07 and Ordinance 2009-12; and WHEREAS, the Code of Ethics and Conduct, and Ethics Commission amendment requires an ethics and conduct ordinance be adopted by the Town Council; and WHEREAS, the Code of Ethics and Conduct, and Ethics Commission amendment requires an ethics and conduct ordinance be applicable to elected officers, appointed boards, commissions, committee members, and employees of the Town; and WHEREAS, the Code of Ethics and Conduct, and Ethics Commission amendment requires establishment of an independent Ethics Commission; and Town Council 6 of 205 Meeting Date: February 7, 2011 WHEREAS, statutory provisions governing the ethical conduct of public officials and employees are found in various codes including the Texas Local Government Code, Texas Government Code and the Texas Penal Code; and WHEREAS, the conduct of the public business should be accomplished by Town Officials, appointees and employees that have no personal financial interest in such business clearly separate from that of the general public; and WHEREAS, it is important that Town Officials, candidates, appointees and employees be provided with a process and procedure to give notice and to then refrain from participation in any specific business of the Town in which such Official has a personal financial interest different from that of the general public; and WHEREAS, a reasonable ethics ordinance with disclosure requirements will provide a basis for continuing public confidence in the conduct of the business and affairs of the Town; NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, THAT: SECTION 1. INCORPORATION OF PREMISES The above and foregoing premises are true and correct and are incorporated herein and made a part hereof for all purposes. SECTION 2. AMENDMENT – ADOPTION OF ARTICLE XVII OF CHAPTER 1 2.01 Article XVII entitled “Code of Ethics and Conduct” of Chapter 1, entitled “Administration” of the Code of Ordinances of the Town of Trophy Club is hereby adopted and shall read in its entirety as follows: “SECTION 17.01. POLICY/ APPLICABILITY A. Policy. It is hereby declared to be the policy of the Town that the proper operation of democratic government requires that Town Officials, Candidates, Appointees, and Employees be independent, impartial and responsible to the people of the Town; that governmental decisions and policy be made in the proper channels of the governmental structure; that no Town Official, Candidate, Appointee, or Employee have any interest, financial or otherwise, direct or indirect, or engage in any business, transaction or professional activity or incur any obligation of any nature which is in conflict with the proper discharge of his duties in the public interest; that public office and public employment are positions of public trust imposing the duty of Town Council 7 of 205 Meeting Date: February 7, 2011 a fiduciary upon all employees and officeholders, who are not to use their public position for personal gain; and that the public should have confidence in the integrity of its government. B. Applicability. To implement this policy, the Town Council enacts this Code of Ethics and Conduct for all Town Officials, Candidates, Appointees and Employees, whether elected or appointed, paid or unpaid, to serve not only as a guide for official conduct of the Town's public servants, but also as a basis for discipline for those who refuse to abide by its terms. The provisions of this Article shall not apply to political contributions, loans, expenditures, reports or regulation of political campaigns, or the conduct of Candidates in such campaigns, except as expressly provided herein. 17.02. PRINCIPLES OF CONDUCT A. Values. The Town Council further believes that Town Officials, Candidates, Appointees and Employees require a public trust and should recognize the importance of high ethical standards within the organization they lead or support. Essential values and ethical behaviors that Town officials, Candidates, Appointees and Employees should exemplify include the following: 1. Commitment beyond self. 2. Obedience and commitment beyond the law. 3. Commitment to the public good. 4. Respect for the value and dignity of all individuals. 5. Accountability to the public. 6. Truthfulness. 7. Fairness. 8. Responsible application of resources. B. Conduct. In keeping with the values set forth in Section 17.02(A) and to assist in the fulfillment of responsibilities to the individuals and communities served, each Town Official, Candidate, Appointee and Employee should: 1. Conduct himself and operate with integrity and in a manner that merits the trust and support of the public. 2. Uphold all applicable laws and regulations, going beyond the letter of the law to protect and/or enhance the Town's ability to accomplish its mission. Town Council 8 of 205 Meeting Date: February 7, 2011 3. Treat others with respect, doing for and to others what the Town official, candidate, appointee or employee would have done for and to himself in similar circumstances. 4. Be a responsible steward of the taxpayer resources. 5. Take no actions that could benefit the Town Official, Candidate, Appointee or Employee personally at the unwarranted expense of the Town, avoiding even the appearance of a conflict of interest, and exercise prudence and good judgment at all times. 6. Carefully consider the public perception of personal and professional actions and the effect such actions could have, positively or negatively, on the Town's reputation both in the community and elsewhere. 7. Strive for personal and professional growth to improve effectiveness as an elected or appointed Town official, candidate, appointee or employee. C. Interpretation. Section 17.02 is a statement of principles only. Nothing in this section may be used to create a cause of action against an elected or appointed Town Official, Candidate, Appointee or Employee under this Article. 17.03. DEFINITIONS A. Appointee. A person appointed or confirmed by the Mayor or Town Council; provided however for the purposes of this definition, the term “appointee” does not include Municipal Judges. B. Business Entity. A corporation, partnership, sole proprietorship, firm, enterprise, franchise, association, organization, self-employed individual, holding company, joint stock company, receivership, trust, or any other entity recognized by law. . C. Candidate. A person who declares for or files for any office of the Town to be filled by election. D. Clear and Convincing Evidence. Evidence that is legally and factually sufficient such that a fact-finder could reasonably form a firm belief or conviction that the allegation is true. E. Compensation. Any economic benefit received in return for labor, services, property, or investment. F. Economic Benefit. Any money, real or personal property, purchase, sale, lease, contract, option, credit, loan, discount, service, or other tangible or intangible thing of value, whether similar or dissimilar to those enumerated. Town Council 9 of 205 Meeting Date: February 7, 2011 G. Employee. A person employed by the Town, including those individuals on a part- time basis, excluding independent contractors. H. Family Member(s). A person related to a Town Official, Candidate, Appointee, or Employee in the first degree by consanguinity (blood) or affinity (marriage) as determined under the Texas Government Code. I. Gift. A favor, hospitality, or economic benefit other than compensation but which does not include campaign contributions reported as required by State law, gifts received from a relative if given on account of kinship, or any value received by will, intestate succession, or as a distribution from an inter vivos or testamentary trust established by a spouse or ancestor. J. Income. Economic benefit received. K. Intentionally. A person acts intentionally, or with intent, with respect to the nature of his conduct or to a result of his conduct when it is his conscious objective or desire to engage in the conduct or cause the result. L. Knowingly. A person acts knowingly, or with knowledge, with respect to the nature of his conduct or to circumstances surrounding his conduct when he is aware of the nature of his conduct or that the circumstances exist. A person acts knowingly, or with knowledge, with respect to a result of his conduct when he is aware that his conduct is reasonably certain to cause the result. M. Substantial Interest. 1. A person has a substantial interest in a Business Entity if: a. The interest is ownership of ten percent or more of the voting stock or shares of the business entity or ownership of either ten percent or more or $5,000.00 or more of the fair market value of the business entity; or b. Funds received by the person from the business entity exceed ten percent of the person's gross income for the previous year; or c. The person holds a position of member of the board of directors or other governing board of the business entity; or d. The person serves as an elected officer of the business entity; or e. The person is an employee of the business entity; or f. The person is a creditor, debtor or guarantor of the business entity in the amount of $5,000.00 or more; or Town Council 10 of 205 Meeting Date: February 7, 2011 g. Property of the person has been pledged to the business entity or is subject to a lien in favor of the business entity in the amount of $5,000.00 or more. 2. A person does not have a substantial interest in a Business Entity if: a. The person holds a position as a member of the board of directors or other governing board of a Business Entity or governmental body; and b. The person has been designated by the Town Council to serve on such board; and c. The person receives no remuneration, either directly or indirectly, for his or her service on such board; and d. The primary nature of the business entity is either, charitable, nonprofit or governmental. 3. A person has a substantial interest in real property if the interest is an equitable or legal ownership interest with a fair market value of $2,500.00 or more. 4. A person has a substantial interest under this Article if the person's Family Member has a substantial interest under this Article. N. Town Official. The Mayor, members of the Town Council, the Town Manager, the Town Attorney, the Town Secretary, Judges of the Municipal Court, and individuals acting in the capacity of the aforementioned persons. 17.04. STANDARDS OF CONDUCT A. Prohibited Acts. No Town Official, Candidate, Appointee or Employee, or their Family Member shall knowingly or intentionally: 1. Accept or solicit any gift, favor, service or thing of value from any person, group or business entity, including a promise of future employment, that might reasonably tend to influence him in the discharge of his official duties or that the Town Official, Candidate, Appointee or Employee knows or should know is being offered with the intent to influence the official conduct of the Town Official, Candidate, Appointee or Employee. This prohibition shall not apply to: a. An occasional non-pecuniary gift, insignificant in value; or b. An award publicly presented in recognition of public service; or c. Any gift which would have been offered or given to the Town Official, Candidate, Appointee or Employee or a Family Member if he were not a Town Official, Candidate, Appointee, Employee, or Family Member; or Town Council 11 of 205 Meeting Date: February 7, 2011 d. Any travel and related expenses to attend ceremonial functions, provided that such acceptance and attendance have been approved by the Town Council prior to the occurrence of the ceremonial function. 2. Grant in the discharge of his official duties any improper favor, service or thing of value to any person, group or business entity; 3. Disclose any confidential information gained by reason of the position of the Town Official, Candidate, Appointee or Employee concerning property, operations, policies or affairs of the Town, or use such confidential information to advance any personal interest, financial or otherwise, of such Town Official, Candidate, Appointee or Employee, Family Members or third parties. This subparagraph shall not preclude disclosure of such confidential information in connection with any investigation or proceeding regarding whether there has been a violation of the standards of conduct set forth in this Article. 4. Use one's position or office of employment or Town facilities, personnel, equipment or supplies to secure special privileges or exemptions for himself Family Members or third parties or for the private gain of the Town Official, Candidate, Appointee, Employee, or his Family Members or third parties. 5. Engage in any exchange, purchase or sale of property, goods or services with the Town, except: a. Rendering services to the Town as a Town Official, Candidate, Appointee or Employee; b. Paying taxes, fines, utility service or filing fees; c. Executing and performing any developer's agreement or plat in compliance with laws and regulations applicable to any person; provided, however, that if any Town ordinance, rule or regulation allows any discretion by the appropriate Town Official, Appointee or Employee in the interpretation or enforcement of such ordinance, rule or regulation, any such discretion shall be exercised in favor of the Town in connection with any such developer's agreement or plat; d. Appointees who are not also Town Officials or Employees of the Town, may engage in any exchange, purchase or sale of property, goods or services with the Town, or enter into a contract with the Town, provided that the board on which they are a member has no advisory function. Involvement, or decision making authority, either direct or indirect, present or prospective, with respect to the transaction in which such Appointee engages or proposes to engage. 6. Hold himself out as representing the Town in any capacity other than that for which he was appointed, elected or hired. Town Council 12 of 205 Meeting Date: February 7, 2011 7. Engage in or accept private employment or render a service when such employment or service is incompatible with the proper discharge of his official duties or would tend to impair his independent judgment in the performance of official duties. 8. Make or permit the unauthorized use of Town owned vehicles, equipment, materials or property. 9. Grant any special consideration, treatment or advantage to any citizen beyond that which is available to every other citizen. 10. After termination of service or employment with the Town, appear before any board or commission of the Town in relation to any case, proceeding or application in which he personally participated or which was under his active consideration, during the period of his service or employment. 11. Transact any business in his official capacity with the Town with a Business Entity in which he has a Substantial Interest. 12. Perform or refuse to perform any act in order to deliberately thwart the execution of Town ordinances, rules or regulations or the achievement of official Town programs. 17.05. DISCLOSURE OF INTEREST A. Disclosure–Vote Not Allowed. Except as expressly provided in paragraph B of this Section, if a Town Official, Candidate, Appointee or Employee has a Substantial Interest in a Business Entity or real property involved in a matter pending before such Town Official, Candidate, Appointee or Employee, or the body of which he is a member, such Town Official, Candidate, Appointee or Employee shall disclose such interest as provided in Section 17.05(C) below and shall not vote or discuss the substance of the matter at any time with any other member of the board of which he is a member or any other body which will vote on or otherwise participate in the consideration of the matter. B. Disclosure–Vote Allowed. If any of the following interests are involved in any matter pending before any Town Official, Candidate, Appointee or Employee, or the body of which he is a member, such Town Official, Candidate, Appointee or Employee shall disclose such interest as provided in Section 17.05(C) below, but he shall be permitted to vote on and participate in the consideration of such matter: 1. A matter concerning a bank or other financial institution from which the Town Official, Candidate, Appointee or Employee has a home mortgage, automobile loan, or other installment loan, if the loan is not currently in default, was originally Town Council 13 of 205 Meeting Date: February 7, 2011 for a term of more than two (2) years and cannot be accelerated except for failure to make payments according to the terms thereof: 2. A matter concerning a bank or other financial institution in which the Town Official, Candidate, Appointee or Employee holds a savings account, checking account or certificate of deposit and which is fully insured by the U. S. government or an agency thereof; 3. A matter concerning a business entity with which the Town Official, Candidate, Appointee or Employee has a retail or credit card account; 4. A matter concerning the approval of substitution of collateral by a Town depository bank: 5. A matter concerning real property or a business entity in which the Town Official, Candidate, Appointee or Employee has a Substantial Interest if the action on the matter would not have a special economic effect on the value of the property or business entity, distinguishable from the effect on the public. C. Affidavit and Reporting Requirement. A Town Official, Appointee or Employee shall disclose the existence of a Substantial Interest in a Business Entity or real property involved in any matter pending before such Town Official, Appointee or Employee, or the body of which he is a member or serves as the staff liaison. To comply with Section 17.05(A), a Town Official, Appointee or Employee shall, prior to any discussion or determination of the matter, file an affidavit of disclosure as required by Section 171.004 of the Texas Local Government Code, as amended, with the Town Secretary. To comply with Section 17.05 (B) a Town Official, Employee or Appointee shall publicly disclose in the official minutes of the body the nature of his interest. To comply with Section 17.05(B), an Employee shall notify the Town Manager or his designee in writing of the nature of any Substantial Interest that he or a Family Member has in a Business Entity or real property which would be affected by an exercise of discretionary authority by the Employee and such matter shall be regulated in accordance with Town policies and procedures. 17.06. ETHICS REVIEW COMMISSION A. Commission Established. An Ethics Review Commission (Commission) is hereby established to be composed of seven (7) members, all of whom shall reside in the Town. B. Council Appointment. Each Commission member shall be appointed by majority vote of the Town Council and shall occupy a position on the Commission, such positions being numbered 1 through 7. C. Term of Office. The Commission members shall be appointed to three (3) year staggered terms. Positions 1 and 2 shall serve an implementation term which shall Town Council 14 of 205 Meeting Date: February 7, 2011 expire on September 30 of 2012. Positions 3 and 4 shall serve an implementation term which shall expire on September 30 of 2013. Positions 5, 6, and 7 shall serve an implementation term which shall expire on September 30 of 2014. After each such implementation term expires, the term of office for each position shall be three (3) years. No member shall serve for more than two (2) consecutive full terms. Implementation terms shall not be counted as full terms. D. Vacancies. All vacancies shall be filled for the unexpired term. A member shall hold office until his successor has been appointed by the Town Council and shall continue to hold office after his successor has been appointed by the Town Council for the limited purpose of the disposition of all complaints filed during that member's term. No new member may participate in a decision regarding a complaint filed prior to the expiration of the previous member’s term, but new members shall accomplish the duties of office with respect to all complaints filed after the previous member's term. E. Chair and Vice-Chair. The Commission shall elect a chairman and a vice-chairman to serve one (1) year terms. The vice-chairman shall act as chairman in the absence of the chairman. F. Quorum. Four (4) or more members of the Commission shall constitute a quorum, and no action of the Commission shall be of any force or effect unless it is adopted by the favorable vote of four (4) or more members. G. Meetings. The Commission shall meet at least once a year to review this Article and may make recommendations to the Town Council for amendments hereto. H. Advisory Opinions. The Commission shall render advisory opinions on potential conflicts of interest or violation of this Article at the request of a Town Official, Candidate, Appointee or Employee subject to the terms of this Article. Such advisory opinion shall be rendered within a reasonable time, but in no event later than thirty (30) days after a request is received by the Commission. A copy of an advisory opinion issued to an Employee shall be forwarded to the Town Manager. A copy of an advisory opinion issued to an Appointee shall be forwarded to the Town Council. I. Advisory Opinion – Defense. It shall be a defense to an alleged violation of this Article that the person accused previously requested an advisory opinion of the Commission and acted on such opinion in good faith, unless material facts were omitted or misstated by the person requesting the opinion. Such advisory opinion shall also be binding on the Commission in any subsequent charges concerning the person requesting the opinion. J. Legal Counsel. Independent legal counsel shall be utilized to advise the Commission and participate in hearings. The Town Council shall annually designate and retain independent counsel who shall be a duly licensed attorney in the State of Texas. Town Council 15 of 205 Meeting Date: February 7, 2011 K. Jurisdiction. The Commission shall have jurisdiction to review and make findings concerning an alleged violation of this Article by a person subject to its provisions, if a written complaint meeting the requirements set forth herein is timely filed in accordance with Section 17.07(C) of this Article. 17.07. DISPOSITION OF ALLEGED VIOLATIONS A. Form and Content of Complaint. In order to file a complaint under this Article, a complainant shall submit a written sworn complaint to the Town Secretary which shall be notarized and shall be in the form specified below. A sworn complaint shall be based upon personal knowledge, shall allege a violation (s) of this Article, shall specify the provision(s) of this Article alleged to have been violated, and shall name the Town Official, Candidate, Appointee, or Employee being charged. THE STATE OF TEXAS: COUNTY OF DENTON: TO: THE ETHICS REVIEW COMMISSION OF THE TOWN OF TROPHY CLUB, TEXAS: COMES NOW (complainant), and makes this complaint, UPON HIS/HER PERSONAL KNOWLEDGE AND UNDER OATH against (name of person complained against), and would show the Commission that: On or about the _______ day of ________________, ___,(insert date of the action, or omission, complained of) _____________________________________________, (name of person complained against) a/an (insert appropriate designation; Town Official, Candidate, Appointee, or Employee) of the Town of Trophy Club, Texas, violated the following provision(s) of Code of Ethics and Conduct Ordinance, Town of Trophy Club, Texas, to wit: (Specify by Section, Subsection and Paragraph number the provision(s) alleged violated.) by committing the following act, or omission, to wit: ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ ___________________________________________________________________ By the making and filing of this affidavit, I certify under oath that the statements contained herein are true and correct. (Original signature and executed Notary block must be included.) B. Consideration of Complaints. Upon the filing of a written sworn complaint meeting all requirements of Section 17.07 the Commission shall consider possible violations of this Article by Town Officials, Candidates, Appointees and Employees. C. Timely Filing Required. As a condition precedent to Commission consideration of a complaint, such complaint shall be timely filed. A complaint alleging a violation of this Article shall be filed with the Town Secretary within one (1) year after the date of the alleged violation in order to be considered timely. Each of the following Town Council 16 of 205 Meeting Date: February 7, 2011 complaints shall be deemed untimely filed and shall be returned to the complainant: (1) a complaint alleging a violation that occurred before the effective date of this Article, (2) a complaint alleging a violation that occurred more than one (1) year before the date that the complaint is filed; and (3) a complaint filed within the period beginning on the 60th day prior to the first date of early voting for a Town election and ending on the later of the regular election date or runoff election date for such election. D. False Statements Notification. The Town Secretary shall, in writing, advise the person filing a complaint that falsely accusing someone of a violation of this Article may result in criminal prosecution, under penalty of perjury, of anyone who knowingly makes a false accusation. The Town Secretary shall, in writing, advise the person charged in the complaint that falsely responding to a complaint may result in criminal prosecution, under penalty of perjury, of anyone who knowingly makes a false response. E. Processing of Complaint. Complaints shall be processed as follows: 1. Notification – Third Party. Not later than three (3) business days after the Town Secretary receives a sworn complaint, the Town Secretary shall acknowledge the receipt of the complaint to the complainant, and if the complaint is timely filed, shall provide a copy of the complaint to the Town Attorney or independent counsel and the person complained against. If a complaint is not timely filed, it shall be returned to the complainant. 2. Attorney Preliminary Review. Within seven (7) business days of receipt by the Town Attorney or independent counsel of a complaint determined by the Town Secretary to have been timely filed, the Town Attorney or independent counsel, shall review the complaint to determine whether the complaint is sufficient as to form and whether the complaint alleges sufficient facts which if accepted as true would constitute a prima facie violation of this Article. Further the complaint shall be reviewed for compliance with Section 17.07(L). a. Sufficient Complaint. If the Town Attorney or independent counsel finds that the complaint is both sufficient as to form, and accepting the facts alleged as true for the limited purpose of a threshold review, finds that the allegations would constitute a prima facie violation of this Article, the complaint shall be forwarded to the Commission. b. Insufficient or Ineligible Complaint. If the Town Attorney or independent counsel finds that the complaint is either insufficient as to form, or accepting the facts alleged as true for the limited purpose of a threshold review, finds that the allegations would not constitute a prima facie violation of this Article, the Town Attorney or independent counsel shall notify the Town Council, the Commission, the complainant and the person complained against of this determination, and shall return the complaint to the complainant. Further, if Town Council 17 of 205 Meeting Date: February 7, 2011 the Town Attorney or independent counsel determines that the Commission is prohibited from entertaining a complaint under the conditions set forth in Section 17.07 (L), the Town Attorney or independent counsel shall notify the Town Council, the Commission, the complainant and the person complained against of this determination, and shall immediately return the complaint to the complainant. 3. Complaints Forwarded to the Commission. Not later than ten (10) business days after the Commission receives a complaint forwarded by the Town Attorney or independent counsel, the Commission shall notify in writing both the person who made the complaint and the person complained against of a date for a preliminary hearing. If the Commission does not hold a preliminary hearing within twenty (20) business days of its receipt of the complaint, it shall notify the person who made the complaint and the person complained against of the reasons for the delay and shall subsequently give the appropriate notifications to all parties. F. Complaint Filed by Commissioner. A complaint filed by an individual member of the Commission shall be deemed to have been filed in the Commission member’s capacity as a private citizen and, in such event, the member of the Commission filing the complaint shall not thereafter participate in any Commission meeting at which such complaint is considered except as the complainant. G. Communications of Commission Members. After a complaint has been filed and during the pendency of a complaint before the Commission, a member of the Commission may not communicate directly or indirectly with any party or person about any issue of fact or law regarding the complaint, except at a meeting of the Commission; provided that a member may consult with the attorney or the Town Manager or his designee for the Commission as to process, procedure and legal issues. Ex parte communications by or to members of the Commission are prohibited. H. Disclosure of Information Prohibited. No Town Official, Candidate, Appointee, or Employee shall reveal information relating to the filing or processing of a complaint, except as required for the performance of official duties or as required by law. All papers and communications relating to a complaint shall be treated as confidential unless required to be made public under the Public Information Act, court order, or other applicable law. I. Preliminary Hearing. A preliminary hearing shall be conducted in accordance with the following: 1. As soon as reasonably possible, but in no event more than sixty (60) days after receiving a complaint, the Commission shall conduct a preliminary hearing. The issue at a preliminary hearing shall be the existence of reasonable grounds to believe that a violation of this Article has occurred. The person filing a complaint shall state the alleged violation and shall describe in narrative form the testimony Town Council 18 of 205 Meeting Date: February 7, 2011 and other evidence which would be presented to prove the alleged violation as stated in the written complaint. Statements at a preliminary hearing shall be under oath, but there shall be no cross examination or requests for persons or evidence issued for the hearing. Members of the Commission may question the complainant, the independent counsel for the Commission, or the Town Official, Candidate, Appointee or Employee named in the complaint. The Town Official, Candidate, Appointee or Employee named in the complaint may not be compelled to give evidence or testimony that violates his right against self- incrimination under the United States or the Texas Constitution. 2. The Town Official, Candidate, Appointee or Employee named in the complaint shall have the opportunity to respond, but is not required to attend or make any statement. The Town Official, Candidate, Appointee or Employee may describe in narrative form the testimony and other evidence which would be presented to disprove the alleged violation. 3. The complainant and the Town Official, Candidate, Appointee or Employee named in the complaint shall have the right of representation by counsel paid for at his own expense. 4. At the conclusion of the preliminary hearing, the Commission shall decide whether a final hearing should be held. If the Commission determines that there are reasonable grounds to believe that a violation of this Article has occurred, it shall schedule a final hearing. If the Commission does not determine that there are reasonable grounds to believe that a violation of this Article has occurred, the complaint shall be automatically dismissed. A decision to conduct a final hearing is not a finding that a violation has occurred. Notwithstanding the foregoing, the Commission may proceed to determine the appropriate sanction if the charged Town Official, Candidate, Appointee, or Employee does not object and admits the charged violation, and the Commission determines that there are no fact issues to be resolved. 5. At the preliminary hearing or at least fifteen (15) business days prior to the final hearing, the complainant, the Town Official, Candidate, Appointee or Employee named in the complaint may request that the Commission summon certain persons and evidence for a final hearing, if one is scheduled. J. Final Hearing. A final hearing shall be conducted in accordance with the following: 1. The final hearing shall be held as expeditiously as possible following the preliminary hearing at which a determination was made by the Commission that there are reasonable grounds to believe that a violation of this Article occurred, but in no event shall it be held more than thirty (30) days after such determination. The Commission may grant two (2) postponements of the Final Hearing, not to exceed fifteen (15) days each, upon the request of the Town Official, Candidate, Appointee or Employee named in the complaint. Town Council 19 of 205 Meeting Date: February 7, 2011 2. The issue at a final hearing shall be whether a violation of this Article has occurred. The Commission shall make its determination based on a Clear and Convincing Evidence standard of proof and may only consider evidence properly admitted into the record at the final hearing. All witnesses shall make their statements under oath. If the Commission determines that a violation has occurred, it shall state its findings in writing, shall identify the particular provision(s) of this Article which have been violated, and within five (5) business days shall deliver a copy of its findings to the complainant, if any, the person named in the complaint and the Town Secretary. 3. If a complaint proceeds to a final hearing, the Commission shall summon in writing witnesses for which it has received a written request from the complainant or from the Town Official, Candidate, Appointee or Employee named in the complaint provided that such the requesting party shows good cause for the request and the request is timely submitted in accordance with Section 17.07(I)(6). Such written summons shall be served by a constable at least ten (10) days before the date of the final hearing. Additionally, the Commission may administer oaths and affirmations, may take evidence and may request the production of books, papers, records, or other evidence needed for the performance of the Commission's duties or exercise of its powers, subject to the limitations of the kind provided for discovery under the Texas Rules of Civil Procedure. It shall be a violation of this Article for a person to fail to appear and testify before the Commission in response to a written summons served ten (10) days or more prior to the scheduled time and date of final hearing. Notwithstanding the foregoing, no Town official, candidate, appointee or employee named in a complaint or witness may be compelled to give evidence or testimony that violates his/her right against self-incrimination under the United States or the Texas Constitution. K. Sanctions. The following sanctions are available: 1. If the Commission determines that a violation of this Article has occurred, it shall proceed directly to determination of the appropriate sanction(s). A violation of this Article shall not be subject to criminal penalties under the Town Code of Ordinances, except for those instances specifically provided for in Section 17.11 of this Article. The Commission may receive additional testimony or statements before determining sanctions, but is not required to do so. If the Town Official, Candidate, Appointee or Employee named in the complaint acted in reliance upon a written opinion of the Town Attorney, the Commission shall consider that fact. 2. If the Commission determines that a violation of this Article has occurred, it shall take the following actions: Town Council 20 of 205 Meeting Date: February 7, 2011 a. If the person who committed the violation is a current employee under the jurisdiction of the Town Manager, the matter shall be referred to the Town Manager. b. If the person who committed the violation is the Town Manager, Town Attorney, Town Secretary, or a Judge of the Municipal Court, the matter will be referred to the Town Council. c. If the person who committed the violation is a Town Council member, a Candidate, an Appointee, a former Town official, or a former Town employee, the matter will be referred to the Town Council. 3. When referring a matter under Section 17.07(K)(2), the Commission may impose or recommend the following sanctions: a. Letter of notification. A letter of notification may be recommended when the Commission finds that a violation of this Article was clearly unintentional or when the action or conduct found to have been a violation of this Article was performed by the Town Official, Candidate, Appointee, or Employee in reliance on a public written opinion of the Town Attorney. A letter of notification must advise the Town Official, Candidate, Appointee, or Employee to whom the letter is directed of any steps to be taken to avoid future violations. b. Letter of admonition. A letter of admonition may be recommended when the Commission finds that the violation of this Article was minor and/or may have been unintentional, but where the circumstances call for a more substantial response than a letter of notification. c. Reprimand. A reprimand may be recommended when the Commission finds that a violation of this Article was committed intentionally or through disregard of this Article. A recommended reprimand directed to an Employee shall be forwarded to the Town Manager. The Town Manager may also elect to discipline the Employee in accordance with Town personnel rules and procedures. A letter of reprimand directed to an elected Town Official shall also be transmitted to the Town Secretary and published in the official newspaper of the Town. d. Removal or suspension from employment. A recommendation of removal from employment or a recommendation of suspension from employment, as well as a recommendation for length of suspension, shall be the appropriate sanction when the Commission finds that a serious or repeated violation(s) of this Article has been committed intentionally or through culpable disregard of this Article by Town employees. The final discretion to carry out such recommendations to remove or suspend from employment and the length of suspension shall be with the Town Manager. The Town Manager may also Town Council 21 of 205 Meeting Date: February 7, 2011 elect to discipline the employee in accordance with Town policies and procedures. e. Censure, recall or removal from office or appointment. A letter of censure, a recommendation of recall, or a recommendation to institute proceedings for removal from office or appointment, shall be the appropriate sanction when the Commission finds that a serious or repeated violation(s) of this Article has been committed intentionally or through culpable disregard of this Article by an elected Town Official. A letter of censure, a recommendation of recall, or a recommendation to institute proceedings for removal from office, directed to an elected Town Official shall also be transmitted to the Town Secretary and published in the official newspaper of the Town. The Town Council and citizens of the Town may take actions in accordance with the Town Charter. Any proceedings for removal from office shall be in compliance with provisions of the Town Charter and State law. L. Dismissal. If the complaint is dismissed because the evidence failed to establish a violation of this Article, the Commission shall issue a letter of dismissal or finding, and shall not entertain any other similar complaint based on substantially the same evidence. 17.08. REQUEST FOR REVIEW Any Town Official, Candidate, Appointee or Employee against whom public allegations of ethics violations have been made in the media or elsewhere has the right to file a sworn statement with the Town Secretary affirming their innocence, and to request the Commission to review the allegations and make known its findings. 17.09. CULPABLE MENTAL STATE To commit a violation under any provision of this Article, a person must have acted or failed to act knowingly or intentionally. 17.10. FALSE COMPLAINTS In the event a complaint is received by the Commission that is subsequently found to be baseless, and the Commission deems that the complaint was filed with the intent to: (a) harass the person named in the complaint; or (b) damage a person's reputation; or (c) benefit the person filing the complaint, or a third party, either personally, professionally or politically; or (d) damage a related third party; the Commission may recommend the Town Attorney cause a complaint to be filed against such person in the Municipal Court. The Town Council or Town Manager, as appropriate, may take disciplinary action(s) against the individual who filed the Town Council 22 of 205 Meeting Date: February 7, 2011 complaint, including but not limited to disciplinary action if such complainant is an Employee, Appointee, or Town Official as allowed by personnel policies, ordinance, state law or Town Charter. The Commission may also recommend other action(s) be taken. 17.11. PENALTY A. It shall be unlawful for any person to knowingly or intentionally violate Section 17.07(D), 17.07(J)(3), or Section 17.10 of this Article, and any person found guilty of such violation shall be fined, upon conviction, not less than One Dollar ($1.00) nor more than Five Hundred Dollars ($500.00), and a separate offense shall be deemed committed upon each day during or on which a violation occurs or continues. Such penalty shall be in addition to all the other remedies provided herein. B. A person who knowingly files a false sworn statement under this Article may be subject to criminal prosecution for perjury under the laws of the State of Texas.“ SECTION 3. CUMULATIVE REPEALER The Code of Ordinances of the Town is hereby amended to include the terms and provisions of this Ordinance by adding Article XVII entitled “Ethics” to the existing Chapter 1, entitled “Administration” of the Code of Ordinances of the Town of Trophy Club. This Ordinance shall be cumulative of all other Ordinances of the Town affecting ethics and conflict of interest and shall not repeal any of the provisions of such Ordinances except in those instances where provisions of those Ordinances are in direct conflict with the provisions of this Ordinance; whether such Ordinances are codified or uncodified, and all other provisions of the Ordinances of the Town of Trophy Club, codified or uncodified, not in conflict with the provisions of this Ordinance, shall remain in full force and effect. Notwithstanding the foregoing, any complaint, action, cause of action or claim which prior to the effective date of this Ordinance has been filed or has arisen under or pursuant to such repealed Ordinance(s) shall continue to be governed by the provisions of that Ordinance and for that purpose the Ordinance shall be deemed to remain and continue in full force and effect. SECTION 4. SEVERABILITY If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance, or its application to any person or circumstance is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance; and the Town Council hereby declares it would have passed such remaining portions of the Ordinance despite such invalidity, which remaining portions shall remain in full force and effect. Town Council 23 of 205 Meeting Date: February 7, 2011 SECTION 5. PUBLICATION The Town Secretary of the Town of Trophy Club is hereby directed to publish, the Caption, Penalty and Effective Date of this Ordinance as required by Section 52.011 of the Texas Local Government Code. SECTION 6. ENGROSSMENT AND ENROLLMENT The Town Secretary of the Town of Trophy Club is hereby directed to engross and enroll this Ordinance in the Ordinance records of the Town and to properly record this Ordinance in accordance with the Town Charter. SECTION 7. EFFECTIVE DATE This Ordinance shall take effect on April 29, 2011, and it is accordingly so ordained. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, this 7th day of February, 2011. _______________________________ Mayor Connie White Town of Trophy Club, Texas ATTEST: _________________________________________ Shannon DePrater, Town Secretary Town of Trophy Club, Texas [SEAL] APPROVED AS TO FORM: _________________________________________ Patricia A. Adams, Town Attorney Town of Trophy Club, Texas Town Council 24 of 205 Meeting Date: February 7, 2011 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12011-48-T Name: Status:Type:Agenda Item Regular Session File created:In control:1/31/2011 Town Council On agenda:Final action:2/7/2011 Title:Discussion of agenda items posted for consideration on the Regular Session Council Agenda for February 7, 2011. Attachments: Action ByDate Action ResultVer. Title Discussion of agenda items posted for consideration on the Regular Session Council Agenda for February 7, 2011. Town Council 25 of 205 Meeting Date: February 7, 2011 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12011-52-T Name: Status:Type:Agenda Item Regular Session File created:In control:1/31/2011 Town Council On agenda:Final action:2/7/2011 Title:Presentation from Baylor Regional Medical Center President Doug Lawson on Hospital and Health Care Updates; discussion of same. Attachments: Action ByDate Action ResultVer. Title Presentation from Baylor Regional Medical Center President Doug Lawson on Hospital and Health Care Updates; discussion of same. Goal Goal #2: Business-Friendly Economic Development Create effective working relationships with businesses and developers Retain / Develop existing businesses Promote new commercial opportunities Goal # 3: Strong Partnerships and Community Involvement Create a positive regional identity Foster a well informed community Enhance citizen volunteer opportunities Expand and promote recreational / active live style opportunities for all ages Forge collaborative relationships with other governmental and public entities Town Council 26 of 205 Meeting Date: February 7, 2011 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12011-58-T Name: Status:Type:Agenda Item Regular Session File created:In control:1/31/2011 Town Council On agenda:Final action:2/7/2011 Title:Presentation of the first quarter report for 2010-2011 fiscal year through December 2010: discussion of same. Attachments:1st Quarterly Fiscal Report.pdf Action ByDate Action ResultVer. Title Presentation of the first quarter report for 2010-2011 fiscal year through December 2010: discussion of same. Body [Enter body here.] Goal Goal #5: Financial and Operational Stewardship Hire, develop, and retain quality staff Implement strong financial management standards Improve effectiveness and efficiency of operational processes Maintain / Improve infrastructure and assets Provide cost-effective services Deliver responsible customer service Town Council 27 of 205 Meeting Date: February 7, 2011 Qu a r t e r l y F i s c a l R e p o r t Qu a r t e r l y F i s c a l R e p o r t Fe b r u a r y 7 , 2 0 1 1 Fe b r u a r y 7 , 2 0 1 1 20 1 0 20 1 0 -- 20 1 1 F i s c a l Y e a r 20 1 1 F i s c a l Y e a r Fi r s t Q u a r t e r E n d i n g Fi r s t Q u a r t e r E n d i n g De c e m b e r 2 0 1 0 De c e m b e r 2 0 1 0 To w n Co u n c i l 28 of 20 5 Meeting Date: February 7, 2011 To w n o f T r o p h y C l u b To w n o f T r o p h y C l u b 20 1 0 20 1 0 -- 20 1 1 B u d g e t 20 1 1 B u d g e t $ 1 3 , 4 2 2 , 9 1 3 $ 1 3 , 4 2 2 , 9 1 3 St o r m D r a i n a g e U t i l i t y $2 4 8 , 0 0 0 G e n e r a l F u n d $6 , 0 3 4 , 9 6 1 T r o p h y C l u b P a r k $126,000 D e bt S er v i ce $1 , 3 9 2 , 3 3 0 Capital Projects $5,061,930 EDC 4B $124,595 Hotel/Occupancy Tax $20,050EDC 4A $288,774 St r e e t M a i n t e n a n c e Sa l e s T a x $1 2 6 , 2 7 3 To w n Co u n c i l 29 of 20 5 Meeting Date: February 7, 2011 To w n o f T r o p h y C l u b To w n o f T r o p h y C l u b 20 1 0 20 1 0 -- 20 1 1 B u d g e t 20 1 1 B u d g e t % o f T o t a l % o f T o t a l St r e e t M a i n t e n a n c e Sa l e s T a x 1% EDC 4A 2%Hotel Occupancy Tax .2%EDC 4B 1%Capital Projects 38% De b t S er v i c e 10 % T r o p h y C l u b P a r k 1% G e n e r a l F u n d 45 % St o r m D r a i n a g e U t i l i t y 1. 8 % To w n Co u n c i l 30 of 20 5 Meeting Date: February 7, 2011 20 1 0 20 1 0 -- 20 1 1 G e n e r a l F u n d B u d g e t 20 1 1 G e n e r a l F u n d B u d g e t Re v e n u e s $ 6 , 1 5 5 , 0 9 9 Re v e n u e s $ 6 , 1 5 5 , 0 9 9 Building Permits $504,000 EMS & Municipal Court $300,633 Developers Fees $50,000 Fr a n c h i s e F e e s $565,200 Sa l e s T a x $5 1 7 , 4 5 0 Transfers & Other Revenue $593,018 Pr o p e r t y T a x $3 , 4 3 5 , 9 9 8 Re c r e a t i o n Pr o g r a m s $1 8 8 , 8 0 0 To w n Co u n c i l 31 of 20 5 Meeting Date: February 7, 2011 20 1 0 20 1 0 -- 20 1 1 G e n e r a l F u n d B u d g e t 20 1 1 G e n e r a l F u n d B u d g e t Re v e n u e s % o f T o t a l Re v e n u e s % o f T o t a l Transfers & Other Revenue 10 % Re c r e a t i o n Pr o g r a m s 3% EM S & M u n i c i p a l Court 5%Developers Fees 1% Fr a n c h i s e F e e s 9% Sa l e s T a x 8% Building Permits 8% Pr o p e r t y T a x 56 % To w n Co u n c i l 32 of 20 5 Meeting Date: February 7, 2011 Ge n e r a l F u n d R e v e n u e s Ge n e r a l F u n d R e v e n u e s Bu d g e t $ Bu d g e t $ 20 1 1 Y T D 20 1 1 Y T D Over/(Under)Over/(Under) Pr o p e r t y T a x 3, 4 1 8 , 9 9 8 75 8 , 5 2 0 (2,660,478) Sa l e s T a x 51 7 , 4 5 0 37 , 0 0 4 (480,446) Fr a n c h i s e F e e s 56 5 , 2 0 0 7, 3 8 1 (557,819) Bu i l d i n g P e r m i t s 50 4 , 0 0 0 12 5 , 4 8 4 (378,516) De v e l o p e r F e e s 50 , 0 0 0 82 , 8 3 3 32,833 EM S & M u n i c i p a l C o u r t 30 0 , 6 3 3 73 , 3 0 3 (227,330) MU D S e r v i c e C o n t r a c t 22 8 , 0 7 6 11 4 , 0 3 8 (114,038) Tr a n s f e r s & O t h e r R e v 38 9 , 4 4 2 18 , 2 0 5 (371,237) Re c r e a t i o n P r o g r a m s 18 1 , 3 0 0 17 8 (181,122) To t a l To t a l 6, 1 5 5 , 0 9 9 6, 1 5 5 , 0 9 9 1, 2 1 6 , 9 4 6 1, 2 1 6 , 9 4 6 (4,938,153)(4,938,153) To w n Co u n c i l 33 of 20 5 Meeting Date: February 7, 2011 To w n o f T r o p h y C l u b To w n o f T r o p h y C l u b Ge n e r a l F u n d E x p e n d i t u r e s Ge n e r a l F u n d E x p e n d i t u r e s $ 6 , 0 3 4 , 9 6 1 $ 6 , 0 3 4 , 9 6 1 20 1 0 20 1 0 -- 20 1 1 20 1 1 Bu d g e t $ Bu d g e t $ %% Pa r k s & R e c r e a t i o n 1, 5 2 7 , 6 6 5 25 Po l i c e 1, 4 6 8 , 4 8 9 24 EM S 67 6 , 8 9 1 11 St r e e t s 39 8 , 4 4 6 7 Co m m u n i t y D e v e l o p m e n t 33 5 , 9 0 0 6 73%73% To w n Co u n c i l 34 of 20 5 Meeting Date: February 7, 2011 Ge n e r a l F u n d E x p e n d i t u r e s Ge n e r a l F u n d E x p e n d i t u r e s 2010 2010 --2011 2011 Ad o p t e d B u d g e t $ 6,034,961 Le s s : E x p e n d i t u r e s T h r o u g h 1 2 / 3 1 / 0 9 (1,273,316) Un e x p e n d e d B u d g e t $ 4,761,645 $ 4,761,645 To w n Co u n c i l 35 of 20 5 Meeting Date: February 7, 2011 To w n o f T r o p h y C l u b To w n o f T r o p h y C l u b Ge n e r a l F u n d 2 0 1 0 Ge n e r a l F u n d 2 0 1 0 -- 20 1 1 20 1 1 Bu d g e t Bu d g e t 3 3 -- Month Month YT D YT D 25%25%Fiscal Yr Fiscal Yr Re v e n u e s $ 6 , 1 5 5 , 0 9 9 $ 1 , 2 1 6 , 9 4 6 20% Ex p e n d i t u r e s (6 , 0 3 4 , 9 6 1 ) (1 , 2 7 3 , 3 1 6 ) 21% Re v e n u e s o v e r Ex p e n d i t u r e s $ 1 2 0 , 1 3 8 $ 1 2 0 , 1 3 8 $ ( 5 6 , 3 7 0 ) $ ( 5 6 , 3 7 0 ) To w n Co u n c i l 36 of 20 5 Meeting Date: February 7, 2011 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12011-49-T Name: Status:Type:Agenda Item Regular Session File created:In control:1/31/2011 Town Council On agenda:Final action:2/7/2011 Title:Consider and take appropriate action regarding the Minutes dated January 3, 2011. Attachments:January 3 2011 Minutes.pdf Action ByDate Action ResultVer. Title Consider and take appropriate action regarding the Minutes dated January 3, 2011. Town Council 37 of 205 Meeting Date: February 7, 2011 MINUTES FROM REGULAR SESSION TOWN COUNCIL MEETING FOR THE TOWN OF TROPHY CLUB LOCATION: 100 MUNICIPAL DRIVE, TROPHY CLUB, TEXAS Monday, January 3, 2011 at 7:00 P.M. Svore Municipal Building Boardroom STATE OF TEXAS § COUNTY OF DENTON § The Town Council of the Town of Trophy Club, Texas, met in Regular Session on Monday, January 3, 2011. The meeting was held within the boundaries of the Town and was open to the public. TOWN COUNCIL MEMBERS PRESENT: Connie White Mayor Bill Rose Mayor Pro Tem Margi Cantrell Council Member Larry Hoover Council Member JD Stotts Council Member arrived at 7:12 p.m. Glenn Strother Council Member STAFF AND GUEST(S) PRESENT: Mike Slye Town Manager Stephen Seidel Assistant Town Manager Shannon DePrater Interim Town Secretary Patricia Adams Town Attorney Scott Kniffen Police Chief Danny Thomas Fire Chief Kathy Dubose Finance Director Carolyn Huggins Community Development Director Adam Adams Parks and Recreation Director Mayor White announced the date of January 3, 2011; called the meeting to order and announced a quorum at 7:01 p.m. The Invocation was offered by Fire Chief Danny Thomas. The Pledges were led by Parks & Recreation Director Adam Adams. 1. Presentation of Gold Leadership Circle Award by Town Manager Mike Slye. Town Manager Mike Slye presented the Gold Leadership Circle Award to Council and thanked Finance Director Kathy DuBose, Information Systems Director Mike Pastor and Interim Town Secretary Shannon DePrater for their effort in achieving this award. Citizen Presentations This is an opportunity for citizens to address the Council on any matter whether or not it is posted on the agenda. The Council is not permitted to take action on or discuss any presentations made to the Council at this time concerning an item not listed on the agenda. The Council will hear presentations on specific agenda items prior to the Council addressing those items. You may speak up to three (3) minutes or the time limit determined by the Mayor or presiding officer. To speak during this item you must complete the Speaker's form that includes the topic(s) of your statement. Topics of presentation should be limited to matters over which the Council has authority. Town Council 38 of 205 Meeting Date: February 7, 2011 Jeanette Tiffany, 44 Cypress Court, asked Council for their help in assisting with the collection of signatures for a Local Option Election Petition to allow voters the opportunity to vote on the issue during the May 2011 Election. CONSENT AGENDA All matters listed as Consent Agenda are considered to be routine by the Town Council and will be enacted by one motion. There will not be a separate discussion of these items. If discussion is desired, that item will be removed from the consent agenda and will be considered separately. Mayor White pulled Item #2 from the consent agenda. 2. Consider and take appropriate action regarding the Minutes dated December 6, 2010. Motion made by Council member Cantrell, seconded by Council member Strother to approve consent agenda items 2 as presented with changes. Motion carried unanimously without further discussion. Council convened into Public Hearing at 7:17 p.m. PUBLIC HEARING 3. Public Hearing regarding a request for approval of a Site Plan of Lot 1, Block 1, Trophy Club Commons, being a 6.570 acre tract of land located in the J. Eads Survey, Abstract 392 and the J. Sutton Survey, Abstract 1154. Applicant: Baird, Hampton & Brown, Inc. on behalf of Trophy Club Equities (SP-09-010) The applicant, Trophy Club Equities, requested this item be continued to the January 17, 2011, Council agenda at which time the plats and site plan for Trophy Club Commons will be heard by the Council. The continuation of the public hearing, plats, and site plan was requested in order to give the applicant and staff additional time to finalize details of the Developer's Agreement for Trophy Club Commons. Mayor White recessed the Public Hearing to the January 17, 2011 Town Council meeting. Council reconvened into Regular Session at 7:18 p.m. REGULAR SESSION 4. Consider and take appropriate action regarding a Resolution approving an Investment Policy for the Town of Trophy Club, and providing an effective date. Mr. Patrick Shinkle, Director for the Center for Public Management at the University of North Texas, was present to introduce this agenda item and answer any questions from Council. Mayor White shared that the policy has primary objectives including: 1. Safety and preservation of principal 2. Maintenance of sufficient liquidity to meet operating needs 3. Public trust from prudent investment activities 4. Optimization of interest earnings on the portfolio Motion made by Council member Cantrell, seconded by Council member Stotts, to approve Resolution 2011-01. Town Council 39 of 205 Meeting Date: February 7, 2011 Mayor Pro Tem Rose questioned whether or not this item should be an Ordinance rather than a Resolution. Town Manager Slye and Mr. Shinkle assured Rose that the Resolution is approving an Investment Policy per the Public Funds Investment Act and that the Resolution is enforceable. Motion carried unanimously without further discussion. Council Member Strother submitted a Conflict of Interest Affidavit for Agenda Item Number 5 and excused himself from the Council Chambers for the duration of the discussion and vote on the agenda item. 5. Consider and take appropriate regarding the award/rejection of bids for Freedom Park and Independence East Park, apparent best qualified bidder Schmoldt Construction, in an amount not to exceed $3,941,627 and authorizing Town Manager Slye or his designee to execute all necessary documents. Proposals were submitted and opened on December 9, 2010 for the construction of Freedom and Independence East parks and subsequently discussed/analyzed at the December 15, 2010 Park Board meeting. The Board reviewed, voted, and prioritized all of the alternates for both parks; based on the selection of those alternates, four members of staff and the Town engineer individually scored the proposals. Chuck Berberich, 200 Skyline Drive, addressed the Town Council and expressed his concerns regarding what he believes is an incomplete package because of cost overruns and explained his research of engineering costs. Larry Lentzner, 303 Ridge View Lane, asked Council to award the bid to Schmoldt and shared that he and fellow Park Board members would be available throughout the discussion if Council has any questions. Town Engineer Tom Rutledge explained the engineering costs for the splash pad, Independence Park and Freedom Park. Council member Cantrell expressed her frustration with the numbers presented and the over estimates and how we, as a community, are faced with the issue with paying for amenities. Town Manager Slye read an email from Mr. Tony Shuman, 25 Ridgewood Drive, Trophy Club, into the record: I’m not sure if I can make it to the Council meeting on Monday evening so I thought I would send you a note. I understand you will be discussing the ball field project feasibility and the bids to complete the project. It is also my understanding that the project has already been “value engineered”, resulting in 3 ball fields instead of 4. It is my hope that the Council will go ahead with project, even if it only includes 3 fields. As a Trophy Club resident and the father of a 10year old boy who plays baseball year round, I see firsthand the need for these fields. We just don’t have enough field space to accommodate all the kids who want to play, and play at reasonable times/days. Because my son plays at a “higher level” of baseball, our practices/games are often held on Sundays or in the evenings on school nights. I wholeheartedly support the philosophy that the field priorities begin with the Recreation leagues as more kids play Rec ball than select, however when we have games that interfere with Church (Sundays) or end after 9pm on school nights, I begin to question whether to allow my son to play on these teams. A majority of that conflict could be avoided if we had more field space. As the President of the YMCA, I also urge you to move forward with the project as well. Kids need a place to run and play. Unfortunately our society has driven families to “program” their kids, instead of just Town Council 40 of 205 Meeting Date: February 7, 2011 going to the park and playing. If we are going to program our children, we need to have enough space for them to play, and at times/days that their parents will feel comfortable. We have to start with the kids, or this sedentary lifestyle will continue, and children and adults will not learn to be/stay active. Our health crisis in America will continue. Thank you for your time and leadership. Council member Stotts asked for figures for the fourth field and is in favor of building the fourth field; would not like to utilize the EDCs to purchase the field, rather for economic development projects. Mayor White clarified that the bid before the Council does not include any options for a fourth field. Council member Hoover is ready to move forward with the bid with three baseball fields and stop discussions tonight regarding the fourth baseball field. There are many other amenities that have not been discussed. Motion made by Council member Hoover, seconded by Council member Cantrell, to award the bid for Freedom Park and Independence East Park, to apparent best qualified bidder Schmoldt Construction, in an amount not to exceed $3,941,627 and authorizing Town Manager Slye or his designee to execute all necessary documents. Stotts asked about the fourth ball field, and if Council can discuss this item again and how does it effect the work of the current project; Rutledge explained that construction will start January 17 if the contracts get executed in a timely manner and suggested to have the discussion of the fourth ball field within the next four to six weeks. Motion carried unanimously without further discussion. Council took a short break and resumed at 9:25 p.m. 6. Consider and take appropriate action to authorize the Town Manager to enter into negotiations with three qualified engineering firms, beginning with the top ranked firm, in order to contract a single firm to conduct a drainage analysis of the Town, authorizing the Town Manager to execute all necessary documents with the firm determined to be best qualified to meet the needs of the Town. In September 2010, the Town of Trophy Club invited qualified engineering firms to submit a Statement of Qualifications (SOQ) for the analysis of drainage for the Town of Trophy Club, Texas. The drainage analysis will determine the most efficient and cost effective way to manage and/or repair drainage issues. This study is meant to analyze streams and infrastructure and make recommendations and provide solutions to decrease the number of drainage related issues in the future. Due to budget constraints, the study will be conducted in two phases. It is anticipated that one phase will be completed in Fiscal Year 2010-11 and the other in Fiscal Year 2011-12. Both phases will provide recommendations of possible courses of action to correct any deficiencies. Council discussed phasing and funding. Town Manager Slye offered to prepare a Town Master Plan first and then address the issues. Mayor White clarified that if Council approved the agenda item, it would only allow for Town Manager Slye to begin negotiations, not a way to implement the plan. Once Slye has the discussions, he will bring back proposals back to Council for approval. Town Council 41 of 205 Meeting Date: February 7, 2011 Motion made by Council member Stotts, seconded by Council member Hoover, to authorize the Town Manager to enter into negotiations with three qualified engineering firms, beginning with the top ranked firm, in order to contract a single firm to conduct a drainage analysis of the Town, authorizing the Town Manager to execute all necessary documents with the firm determined to be best qualified to meet the needs of the Town. Council member Stotts clarified that Council will have one more discussion; Town Manager Slye will bring back a fair negotiated scope, price and recommendation. Council member Strother called for the vote; vote carried unanimously. Motion carried unanimously without further discussion. 7. Consider and take appropriate action regarding an Ordinance Amending the Code of Ordinances of The Town of Trophy Club by Adding Article XVI, Entitled “Citizens Financial Advisory Board”, to Chapter 1 entitled “Administration” of The Code of Ordinances Establishing a Citizens Financial Advisory Board; and providing an effective date. Mayor White asked about the scope as determined by Council under Section 16.03 A. Advisory Capacity to Council. “The Board shall act principally in an advisory capacity to the Town council and Town staff in Budget matters. The Board shall only accomplish those tasks directed or approved by Council.” Council members Cantrell and Stotts have concerns with the word “only” in the last sentence of Section 16.03 A. Advisory Capacity to Council. “The Board shall only accomplish those tasks directed or approved by Council.” Motion made by Mayor Pro Tem Rose, seconded by Council member Cantrell, to adopt Ordinance 2011- 01 establishing a Citizens Financial Advisory Board. Council member Cantrell is in favor of a Citizen Financial Advisory Board and believes that the word “only” needs to be removed from the last sentence of Section 16.03 A. Advisory Capacity to Council. “The Board shall only accomplish those tasks directed or approved by Council.” Mayor Pro Tem Rose offered a solution to empower the Board and if it does not work, Council can remove them. Rose is in favor of the word “only.” the last sentence of Section 16.03 A. Advisory Capacity to Council. “The Board shall only accomplish those tasks directed or approved by Council.” Mayor Pro Tem Rose amended the motion to delete the last sentence of Section 16.03 A. Advisory Capacity to Council. Motion died due to a lack of second. Motion made by Mayor White; seconded by Mayor Pro Tem Rose to amend as “The Board shall focus on those tasks directed or requested by Council.” Motion carried 4-2-0 with Mayor White, Mayor Pro Tem Rose and Council members Stotts and Cantrell voting for and Council members Hoover and Strother voting against. Original motion carried 4-2-0 with Mayor White, Mayor Pro Tem Rose and Council members Stotts and Cantrell voting for and Council members Hoover and Strother voting against. 8. Consider and take appropriate action regarding financial and variance report dated November 2010. Motion made by Council member Cantrell, seconded by Council member Hoover, to accept the November 2010 Financials as amended. Motion carried unanimously without further discussion. Town Council 42 of 205 Meeting Date: February 7, 2011 9. Town Manager Slye's update regarding the following; discussion of the same. · Council Retreat Update Town Manager Slye updated the Council and answered questions. No action taken, update only. 10. Mayor and Council Updates regarding training opportunities, educational sessions, and regional meetings; discussion of same. Mayor White gave a brief update of the meetings she attended since the last Council meeting. No action taken, update only. 11. Receive Mayor Pro Tem Rose's liaison report regarding the December 14, 2010 TCMUD No. 1 Meeting; discussion of same. · Water Conservation Plan · Trinity Well No. 2 Project · President Thomas information "Considerations Concerning Need for Additional Water Storage" Mayor Pro Tem Rose updated the Council with regards to the December 14, 2010 TCMUD No. 1 meeting and addressed questions. No action taken, update only. 12. Items for Future Agendas. Council member Cantrell added an item regarding Planning & Zoning readiness if the Local Option Election Petition is successful. Agenda item 1 was removed. Interim Town Secretary Shannon DePrater excused herself from the Executive Session Chambers prior to Council convening into Executive Session. Council convened into Executive Session at 11:10 p.m. EXECUTIVE SESSION 13. Council to convene into executive session pursuant to Texas Government Code, Annotated, Subchapter 551, Section 551.074(a) "Personnel Matters, to discuss the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a public officer or employee: (1) Discussion regarding the hiring of a Town Secretary Council reconvened into Regular Session at 11:35 p.m. Town Council 43 of 205 Meeting Date: February 7, 2011 RECONVENE INTO REGULAR SESSION 14. Consider and take appropriate action regarding the Executive Session. Motion made by Council member Stotts; seconded by Mayor Pro Tem Rose, to appoint Shannon DePrater as Town Secretary and authorize Town Manager Slye to negotiate benefits and salary. Motion carried unanimously without further discussion. ADJOURN Motion made by Council member Stotts; seconded by Mayor Pro Tem Rose to Adjourn. Meeting adjourned at11:37 p.m. ___________________________________ ________________________________ Shannon DePrater, Interim Town Secretary Connie White, Mayor Town of Trophy Club, Texas Town of Trophy Club, Texas Town Council 44 of 205 Meeting Date: February 7, 2011 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12011-50-T Name: Status:Type:Agenda Item Regular Session File created:In control:1/31/2011 Town Council On agenda:Final action:2/7/2011 Title:Consider and take appropriate action regarding the Council Retreat Minutes dated January 7, 2011. Attachments:January 7 2011 Minutes (Council Retreat).pdf Action ByDate Action ResultVer. Title Consider and take appropriate action regarding the Council Retreat Minutes dated January 7, 2011. Town Council 45 of 205 Meeting Date: February 7, 2011 MINUTES FROM TOWN COUNCIL RETREAT FOR THE TOWN OF TROPHY CLUB LOCATION: 9400 Ed Robson Boulevard, Building A Denton, Texas 76207 Friday, January 7, 2011 STATE OF TEXAS § COUNTY OF DENTON § The Town Council of the Town of Trophy Club, Texas, met in a Council Retreat Session on Friday, January 7, 2011. The meeting was held at Robson Ranch, 9400 Ed Robson Boulevard, Building A, Denton, Texas 76207 and was open to the public. TOWN COUNCIL MEMBERS PRESENT: Connie White Mayor Bill Rose Mayor Pro Tem J.D. Stotts Council Member Margi Cantrell Council Member Larry Hoover Council Member Glenn Strother Council Member STAFF AND GUEST(S) PRESENT: Mike Slye Town Manager Stephen Seidel Assistant Town Manager Shannon DePrater Town Secretary Patricia Adams Town Attorney Wendy Skinner President Wendy Skinner and Associates Mayor White announced the date of January 7, 2011; called to order and announced a quorum at 12:02 p.m. 1. - Welcome - Setting the Stage - Strategic Management Recap - Strategic Progress - Review - Challenges and Opportunities - Strategy Update - Refine - Strategy Execution - Feedback and Next Steps Town Manager Slye welcomed everyone and expressed his excitement to have Wendy Skinner facilitate the workshop with the Council. Recap presentation by Wendy Skinner attached. ADJOURN Meeting adjourned at 7:57 p.m. _____________________________ ________________________________ Shannon DePrater, Town Secretary Connie White, Mayor Town of Trophy Club, Texas Town of Trophy 1 Town Council 46 of 205 Meeting Date: February 7, 2011 2010 Wendy Skinner and Associates, Inc. All Rights Reserved Town of Trophy Club Documentation of Council Strategy Retreat Conducted January 7, 2011 Confidential New Year , New Management, New Energy Town Council 47 of 205 Meeting Date: February 7, 2011 2010 Wendy Skinner and Associates, Inc. All Rights Reserved2010 Wendy Skinner and Associates, Inc. All Rights Reserved Setting the Stage – Objectives and Expectations 2 Town Council 48 of 205 Meeting Date: February 7, 2011 2010 Wendy Skinner and Associates, Inc. All Rights Reserved2010 Wendy Skinner and Associates, Inc. All Rights Reserved Objectives for the Retreat 3 Review, refine and align on the Town‟s strategy and goals Identify and discuss challenges and opportunities to achieve the strategy Develop key performance indicators –measures to gauge progress and success Identify key initiatives that will drive performance Build alignment between Council and Staff on direction and expectations Agree on next steps and go forward plan Town Council 49 of 205 Meeting Date: February 7, 2011 2010 Wendy Skinner and Associates, Inc. All Rights Reserved2010 Wendy Skinner and Associates, Inc. All Rights Reserved Council Member and Management‟s Expectations Develop clarity on direction and build a unified vision Develop priorities (long range goals) for the future Identify and prioritize the supporting actions to achieve the strategy and inform the budgeting process Set goals and objectives for budgeting purposes Continue team building and enhance relationships Learn each other‟s expectations Develop a roadmap and plan to improve the Town‟s image and reputation 4 Town Council 50 of 205 Meeting Date: February 7, 2011 2010 Wendy Skinner and Associates, Inc. All Rights Reserved From…To… Unclear, multiple agendas Mission Focused direction, clear goals Short-term, tactical Focus Long-term, big picture, strategic Undefined, negative, stuck in past Culture Grounded in shared values, trust-filled At odds, challenging, ineffective Governance Cooperative, supportive, win-win Different views, varied priorities Leadership Aligned, accountable, confident Individual needs, departmentalized Teamwork Collaborative, unified, results-driven Task-oriented, crisis, reactionary Operations Proactive, responsive, innovative Manual, inefficient, insufficient Core Processes Best practices, standard, automated Mixed messages, sporadic Communications Cohesive story, consistent, frequent Priorities and strategy unclear People Engaged, connected to strategy New Year, New Management, New Energy – Vision for Organizational Improvement 5 Black Hash Marks = View of where organization was in Jun-Aug 2010 Green Hash Marks = View of where organization is in January 2011Town Council 51 of 205 Meeting Date: February 7, 2011 2010 Wendy Skinner and Associates, Inc. All Rights Reserved2010 Wendy Skinner and Associates, Inc. All Rights Reserved Strategic Management Recap and Approach 6 Town Council 52 of 205 Meeting Date: February 7, 2011 2010 Wendy Skinner and Associates, Inc. All Rights Reserved2010 Wendy Skinner and Associates, Inc. All Rights Reserved The Strategic Management model introduced at the Council‟s August 2010 retreat 7 Formulate/ Review Strategy Develop Operational Plans Measure Performance Strategic Management System Build Alignment Town Council 53 of 205 Meeting Date: February 7, 2011 2010 Wendy Skinner and Associates, Inc. All Rights Reserved2010 Wendy Skinner and Associates, Inc. All Rights Reserved 8 Strategic Management System Departments are aligned Inter-departmental goals are aligned Partners / suppliers are aligned Personal performance objectives are aligned Employee communications are aligned Compensation and recognition are aligned Build Strategic Alignment Top leadership committed Vision, mission and strategy clarified Core values defined Goals and priorities identified Senior management engaged Annual strategy reviews conducted Formulate / Review Strategy Strategy map developed Key performance indicators identified Targets established Key initiatives rationalized Budgets and strategy are integrated Accountability assigned Operationalize Strategy Rating Scale: 5 - We are great at this 4 –We are good at this 3 –We are okay at this 2 –We are not good at this 1 –We do not have this Formal process is in place to manage performance Monthly/quarterly strategic performance review meetings conducted Data and analytics support strategy Knowledge and best practices are shared Issues identified and followed-up on Strategic management process owner in place Monitor Strategic Performance Formulate Council Management 3.5 2.3Measurement Council Management 1.8 1.8 Alignment Council Management 2.4 2.2 Operational Plans Council Management 2.6 2.0 Council and Management‟s strategic management assessment - baseline from which to measure progress Adapted from the Balanced Scorecard AssessmentTown Council 54 of 205 Meeting Date: February 7, 2011 2010 Wendy Skinner and Associates, Inc. All Rights Reserved2010 Wendy Skinner and Associates, Inc. All Rights Reserved Strategic Discussion Approach 9 Review Align Refine•What have we accomplished? •What have we learned - hindsight? •What has changed? •What can we predict – foresight? •What challenges and opportunities will enable or impede the strategy? •Are there any strategic adjustments needed? •How will success be measured? •What are the strategic initiatives that will drive results? •Are we collectively aligned on direction? •What is the communication plan? •How will on-going strategic performance be managed? •Strategic Hits and Misses •Opportunity Assessment •Strategy Map –Goals and Objectives •Strategic Scorecard •Strategic Initiatives •Communications Approach •Strategic Reporting Process Note: This retreat focused on Review and Refine phases. Align will be addressed as part of the next retreat. Town Council 55 of 205 Meeting Date: February 7, 2011 2010 Wendy Skinner and Associates, Inc. All Rights Reserved2010 Wendy Skinner and Associates, Inc. All Rights Reserved Review the Strategy 10 Town Council 56 of 205 Meeting Date: February 7, 2011 2010 Wendy Skinner and Associates, Inc. All Rights Reserved2010 Wendy Skinner and Associates, Inc. All Rights Reserved The Town of Trophy Club‟s Vision, Mission and Values 11 Vision TROPHY CLUB … A Great Place to Call Home! Mission Through dedicated innovative leadership, provide superior municipal services and facilities in a highly effective, efficient manner to make the Town of Trophy Club a great place to call home. Values Integrity and Trust Accountability Teamwork Innovation Pride and Service CommitmentTown Council 57 of 205 Meeting Date: February 7, 2011 2010 Wendy Skinner and Associates, Inc. All Rights Reserved2010 Wendy Skinner and Associates, Inc. All Rights Reserved Strategic Hits and Misses –2010 Safe and Secure Business-Friendly Economic Development Strong Partnerships and Community Involvement Picturesque and Environmentally Sound Infrastructure and Asset Management Financial and Operational Stewardship Community Policing -Low Crime Rate Enhancements to Trophy Club Park Improved Relationship with MUD / Joint Sessions Continued Beautification Efforts Installed UV System at Pool Great Management Team and Staff New Fire Station Underway Discussing Zoning Concepts for 26 Acres Trails Development with Southlake and Westlake Scenic City / Award Application Implemented Spray Park GFOA Budget / Strong Financial Practices CERT Teams Trained Attracted Two New Businesses Gold Award for Transparency (Budget)Builder Debris Clean-up Established Council Sub- Committee / Plan Developed Investment Policy Community Support for Police Services Trophy Wood Retail Opportunities Sponsored Transportation Summit Code Improvements Indy East / Freedom Park Enhancements Implemented Standard Business Plans SRTS Booth Presence at ICSC Implemented Dog Park Median Maintenance Parks and Trail Developments Implemented New Accounting Software Secured Water Tower Site Trophy Lake Commons Development Established Annual Report/Calendar Bobcat Blvd. PID Relationship Improved Financial Transparency Sidewalks Underway Effective Relationships with Developers Volunteer Program Enhancements Recycling Program Enhancements Long Term Plan Development Financial Recognition Academies Progressive Zoning Event Ordinance Establishing a Beautification Committee Trophy Club Park Enhancements Gold Leadership Award Funding for SRO Ordinance Revisions (i.e., Signage, Package Sales) Communication Plan Development Xero-scaping to Lower Water Usage Roundabout Completion Citizen Financial Advisory Board (CFAB) Bicycle Rodeo Implementing Credit Card Capability Effective Relationship with Centurion Attracting Visitors to Park Destinations Water Tower Fund Balance Polices Roundabout Completion Land Acquisition Pursuing Grant Opportunities (i.e., Trails)Drainage Study Completion Internal Audit Statements Emergency Access Promoting Commercial Opportunities No Town Newsletter Code Enforcement Credit Card Capability Police Building Discussions No New Commercial Opportunities Town Image and Reputation Command Center Website Enhancements Data Security Developer Incentive Plans Long Term Plan with MUD Citizen Survey Resolution Drainage Issues (Flood Control) Lack of Long Range ED Plan / Master Plan Education for Realtors Service Cost Analysis Data Security Improvements Roanoke Not Assisting in Funding RO Tax Rate Analysis and Plan Lack of Strong Local Gov. Partnerships Long Term Plans / Strategic and Capital Improvement Green –Hit Yellow –Some progress Red - Miss 12 Town Council 58 of 205 Meeting Date: February 7, 2011 © 1996-2009 •Election may impact continuity of Council •Tax rate philosophy •Voting districts •Relationship with HOAs, PID, MUD, NIDS •Relax regional approach / building partnerships (Roanoke, Westlake, Southlake) •Renaming Trophy Club Park TOWN NEEDS / CONCERNS •More amenities •Community Center •Senior living facility •Volunteer opportunities •Trail and park systems •Sustainability programs •Tax laws •Unfunded mandates •Grant funding •Citizen expectations of services vs. cost/tax to pay for UNCERTAINTIES •Improved drainage –regional opportunity, grants •Flood control •Proper development decisions •Signature events •Branding / image •Better marketing •Changing traffic patterns due to Metroplex growth •Change in demographics •Progressive zoning (Beck 26 acres, package sales, signage, hotels, etc.) •Business retention opportunities / investment •Incentive programs to attract new businesses •Land acquisition •Reputation / relationship with developers / businesses •Grow sales tax revenue base POLITICAL FACTORS ECONOMIC DEVELOPMENT Situational Analysis –Challenges and Opportunities •Population growth of younger residents •Charging fees for use of Town resources 132010 Wendy Skinner and Associates, Inc. All Rights Reserved Used with permission and per license agreement.Town Council 59 of 205 Meeting Date: February 7, 2011 2010 Wendy Skinner and Associates, Inc. All Rights Reserved2010 Wendy Skinner and Associates, Inc. All Rights Reserved Prioritized Topics for Discussion Progressive Zoning For zoning ordinances – define what the Town wants and doesn‟t want to ensure that what development does happens is in the Town‟s best interests. Initial discussion centered around: The 26 acres owned by Beck Liquor stores Hotels Development Process –what can be managed by Town Management without having to go before Council Citizen Financial Advisory Board (CFAB) Need to define the purpose and duties of the CFAB, the specific projects that will be assigned to the CFAB and rules of engagement with Town Management. Initial list of projects identified for review with Management: Design, implementation and oversight of Performance Budgeting Review of financial policies and procedures GFAO requirements Salary and Benefits comparative analysis Tax roll analysis Sales tax analysis * Land Acquisition Opportunities* * Relationships with Other Local Governments (Southlake, Roanoke, Westlake) * Tax Rate 14 * Did not have time to address during retreat. Include for discussion at next retreatTown Council 60 of 205 Meeting Date: February 7, 2011 2010 Wendy Skinner and Associates, Inc. All Rights Reserved2010 Wendy Skinner and Associates, Inc. All Rights Reserved Refine the Strategy 15 Town Council 61 of 205 Meeting Date: February 7, 2011 2010 Wendy Skinner and Associates, Inc. All Rights Reserved Fulfill Our Mission 16 Through dedicated innovative leadership, provide superior municipal services and facilities in a highly effective, efficient manner to make the Town of Trophy Club a great place to call home. Safe and Secure Business-Friendly Economic Development Create effective working relationships with businesses and developers Promote new commercial opportunities Retain/develop existing businesses Increase citizen awareness and involvement in crime prevention Picturesque and Environmentally Sound Strong Partnerships and Community Involvement Develop / enhance environmental and sustainability standards and programs Improve property maintenance standards and code enforcement Maintain neat and tidy appearanceForge collaborative relationships with other government and pubic entities Create a positive regional identity Financial and Operational Stewardship Maintain / improve infrastructure and assets Develop, recognize and retain quality staff Provide cost-effective services Improve effectiveness and efficiency of operational processes Implement strong financial management standards Promote recreational / active lifestyle opportunities for all ages Provide superior emergency services Support citizen volunteer opportunities Improve data security Maintain low crime rate Live Our Core Values Integrity and Trust ●Accountability ●Teamwork ●Innovation ●Pride and Service Commitment De l i v e r o n O u r S t r a t e g y Town of Trophy Club –Strategy Map of Goals and Objectives Foster a well informed community Deliver responsive customer service 16 Town Council 62 of 205 Meeting Date: February 7, 2011 2010 Wendy Skinner and Associates, Inc. All Rights Reserved Goal: Safe and Secure Objectives Key Performance Indicators (KPIs)Target Actual Maintain Low Crime Rate •Crime rate (UCR) •Closed investigations as a percent of total •Convictions as a percent of total prosecuted • • • • • • Increase Citizen Awareness and Involvement in Crime Prevention •Number of citizens participating in Public Safety programs •Number of non-crime related contacts •Number of Public Safety communications • • • • • • Provide Superior Emergency Services •Percent of Priority 1 Police calls responded to within target timeframe •Percent of Priority 1 Fire calls responded to within target timeframe •After call contacts as a percent of total calls • • • • • • Improve Data Security •Talk to M. Pastor re: appropriate data security metrics –are there industry standards that the Town can benchmark against? •• Strategic Performance Scorecard Draft –Work In Progress 17 Town Council 63 of 205 Meeting Date: February 7, 2011 2010 Wendy Skinner and Associates, Inc. All Rights Reserved Goal: Business Friendly Economic Development Objectives Key Performance Indicators (KPIs)Target Actual Create Effective Working Relationships with Business and Developers •Number of business contacts / visits •Percent of zoning/development codes reviewed •Business owner satisfaction score • • • • • • Retain / Develop Existing Businesses •At -risk businesses retained as a percent of total at-risk •Number of business forums conducted •Percent of businesses participating in coupon book • • • • • • Promote New Commercial Opportunities •New businesses as a percent of total prospects •Percent of tax revenues from new development •Sales tax? •Incentive metric? •Land acquisition metric? • • • • • • • • Strategic Performance Scorecard Draft –Work In Progress 18 Town Council 64 of 205 Meeting Date: February 7, 2011 2010 Wendy Skinner and Associates, Inc. All Rights Reserved Goal: Strong Partnerships and Community Involvement Objectives Key Performance Indicators (KPIs)Target Actual Create a Positive Regional Identity •Positive media mentions as a percent of total mentions •Residential and commercial growth rate •Number of new residents from DFW Metroplex as a percent of total new residents •Number of residents moving w/in Town (retention) • • • • • • • • Foster a Well- Informed Community •Number of website hits •Number of communications •Number of events • • • • • • Promote Recreational / Active Lifestyle Opportunities for All Ages •Number of volunteer opportunities •Volunteer hours growth rate •Percent of total labor costs avoided through use of volunteers •Total staff hours used to assist volunteers • • • • • • • • Forge Collaborative Relationships with Other Government and Public Entities •Number of collaborations / meetings with regional communities •Number of business collaborations with Town • • • • Strategic Performance Scorecard Draft –Work In Progress 19 Town Council 65 of 205 Meeting Date: February 7, 2011 2010 Wendy Skinner and Associates, Inc. All Rights Reserved Goal: Picturesque and Environmentally Sound Objectives Key Performance Indicators (KPIs)Target Actual Maintain Neat and Tidy Appearance •Number of awards as a percent of total applied for •Citizen satisfaction score • • • • Improve Property and Maintenance Standards and Code Enforcement •Number of code enforcement complaints •Percent of code enforcement complaints responded to within target timeframe •Percent of code violations resolved within target timeframe •Citizen satisfaction score • • • • • • • • Develop / Enhance Environmental and Sustainability Standards and Programs •Percent of medians xero-scaped •Ratio of median mix (flowerbed/grass/xero-scape) •Citizen participation in environmental/sustainability programs •Percent effluent utilized versus potable •Citizen satisfaction score • • • • • • • • • • Strategic Performance Scorecard Draft –Work In Progress 20 Town Council 66 of 205 Meeting Date: February 7, 2011 2010 Wendy Skinner and Associates, Inc. All Rights Reserved Goal: Financial and Operational Stewardship Objectives Key Performance Indicators (KPIs)Target Actual Develop, Recognize and Retain Quality Staff •Average training hours per employee •Percent of employees within total target compensation range • • • • Implement Strong Financial Management Standards •Bond rating •General fund dollars per resident •Revenues and operating expenses actual vs. plan • • • • • • Improve Effectiveness and Efficiency of Operational Processes •Percent of process improvement initiatives on-time / on- budget •Percent of process improvement initiatives meeting / exceeding performance targets (cost savings, time, quality, etc.) •Percent of key processes documented (by Dept.) • • • • • • Maintain/Improve Infrastructure and Assets •Percent of work orders completed on time •Break/fix maintenance costs as a percent of total maintenance costs •• Provide Cost-Effective Services •Cost of services (by key services) •Cost of service per resident Deliver Responsive Customer Service •Percent of customer contacts responded to within target timeframe •Citizen satisfaction score Strategic Performance Scorecard Draft –Work In Progress 21 Town Council 67 of 205 Meeting Date: February 7, 2011 2010 Wendy Skinner and Associates, Inc. All Rights Reserved2010 Wendy Skinner and Associates, Inc. All Rights Reserved 22 Draft of Strategic Initiatives to Achieve Success Safe and Secure Business-Friendly Economic Development Strong Partnerships and Community Involvement Picturesque and Environmentally Sound Financial and Operational Stewardship Implement additional community policing efforts Investigate land acquisitions Develop 10 year master plan for Town / MUD Develop sustainability programs (i.e., recycling, water conversation, etc.) Design and implement a Citizen Survey Develop / enhance disaster recovery plan Develop a long term master plan Develop a Partnership Plan (regional,community groups, neighborhoods, schools, etc.) Evaluate and develop median maintenance alternatives Implement a strategic management model for on-going planning and execution Build sidewalks on main thoroughfare Develop and implement a Progressive Zoning model Provide public information / Town Newsletter Evaluate median maintenance options (i.e., outsourcing) Develop a communication strategy and plan (including website enhancements) Evaluate traffic flows and possible 25 MPH zones Pursue Trophy Club Park development opportunities Implement / enhance volunteer programs Improve parks and trails systems Continue budget process improvements Develop safety and security training programs for citizens Develop a Town identity / brand for development Develop education / awareness program for Real Estate agents Pursue “destination” theme concept for parks Evaluate compensation and benefits Obtain funding from Roanoke for schools security patrols Evaluate package sales Create a Citizen University Investigate renaming Trophy Club Park Evaluate and develop a tax rate philosophy Re-evaluate data security back- up procedures Develop incentive plan to attract / retain businesses Develop a Town Signature event Develop back to nature programs Implement a leadership development program Secure offsite data back-up facility Develop plan to keep / attract new businesses to Regency Center Develop an Events Program (planning, promotion, training) Implement a wild life watch program Review and finalize CFAB authority and jurisdiction Develop commercial opportunity plan for Trophy Woods Evaluate a regional theatre concept Pursue Scenic Cities award Conduct drainage and flood control study Evaluate Indian Creek extension Research community “give back” programs (i.e., food drive) Develop a “fit cities” program Develop a road replacement plan Evaluate potential for fuel at Tom Thumb Evaluate partnership with Westlake (police, fire, EMS) Develop a neighborhood theme concept (i.e., Christmas decorations) Build a community / recreation center Identify commercial opportunities for Indy Park Evaluate Joint use facilities with Roanoke Install UV system at pool Explore Hotel use tax Develop plan for Town facilities and aging infrastructureTown Council 68 of 205 Meeting Date: February 7, 2011 2010 Wendy Skinner and Associates, Inc. All Rights Reserved2010 Wendy Skinner and Associates, Inc. All Rights Reserved Top Ideas Prioritized –August 2010. Review and update as part of pre-work for next retreat. Goal 2: Business Friendly Economic Development A. Be proactive on business and development opportunities B. Evaluate land acquisitions C. Concentrate funding for development –find creative funding solutions Goal 3: Strong Partnership and Community Involvement D. Evaluate volunteer programs –Cities of Service* E. Evaluate resource sharing options / regionalization opportunities F. Create Town newsletter Goal 4: Picturesque and Environmentally Sound G. Establish beautification committee H. Implement zero-scape medians* Goal 5: Infrastructure and Asset Management I. Create regional parks board J. Conduct drainage study* Goal 6: Financial and Operational Stewardship K. Establish citizen finance advisory board * L. Conduct citizen survey* M. Conduct organization design analysis * Currently planned or in-progress Cost to Implement Ri s k Low High High Feasibility Low G D K E FH A I B C M L J Act now –expedite validation and implementation 23 Town Council 69 of 205 Meeting Date: February 7, 2011 2010 Wendy Skinner and Associates, Inc. All Rights Reserved2010 Wendy Skinner and Associates, Inc. All Rights Reserved Next Steps, Follow-Ups and Feedback 24 Town Council 70 of 205 Meeting Date: February 7, 2011 2010 Wendy Skinner and Associates, Inc. All Rights Reserved2010 Wendy Skinner and Associates, Inc. All Rights Reserved Next Steps Distribute retreat documentation to Council members for review Review KPIs with management and staff for input Are they the right KPIs? What are the appropriate targets for 2011 Finalize and adopt the strategic goals scorecards Review the strategic initiatives Next retreat should include discussion and prioritization of initiatives Schedule and conduct next Council retreat to finalize the strategic plan Distribute agenda and pre-work prior to retreat Work on follow-ups (see next slide) 25 Town Council 71 of 205 Meeting Date: February 7, 2011 2010 Wendy Skinner and Associates, Inc. All Rights Reserved2010 Wendy Skinner and Associates, Inc. All Rights Reserved Follow-Ups 26 [Type the document title] [Type the document subtitle] As of January 10, 2011 Action Item Description Owner 1 Progressive Zoning (Jan 2011) For zoning ordinances – define what the Town wants and doesn’t want to ensure that what development does happens is in the Town’s best interests. M. Slye / S. Seidel 2 Citizen Financial Advisory Board (CFAB) (Jan 2011) Determine if the CFAB is needed. If yes, define the purpose and duties of the CFAB, the specific projects that will be assigned to the CFAB and rules of engagement with Town Management. B. Rose 3 Schedule Next Retreat(s) (Jan 2011) Schedule series of Council / Council and Management retreats to continue development of the Town’s strategic plan and priorities. M. Slye 4 Develop Long Term Master Plan (Aug 2010) Develop a long term master plan (i.e., 2025 or 2030) for the Town of Trophy Club M. Slye / S. Seidel 5 Design and Conduct a Citizen Survey (Aug 2010) Execute a citizen survey to determine importance of and satisfaction with Town services and identify other key needs or issues. S. Seidel 6 Develop a Communication Strategy and Plan (Aug 2010) Develop a comprehensive plan that includes all stakeholder groups and the use of various communications channels to build awareness and understanding of the Town’s strategy and progress. M. Slye Town Council 72 of 205 Meeting Date: February 7, 2011 2010 Wendy Skinner and Associates, Inc. All Rights Reserved2010 Wendy Skinner and Associates, Inc. All Rights Reserved What Worked Well…Even Better If… Open and honest discussion Everyone was committed and engaged Good dialogue on issues Having new Town Manager participate and engage the Management team Agenda and pre-work provided prior to the retreat Had enough time to discuss issues – within reason Location was WIFI enabled Retreat Feedback 27 27 Town Council 73 of 205 Meeting Date: February 7, 2011 2010 Wendy Skinner and Associates, Inc. All Rights Reserved2010 Wendy Skinner and Associates, Inc. All Rights Reserved Appendix 28 Town Council 74 of 205 Meeting Date: February 7, 2011 2010 Wendy Skinner and Associates, Inc. All Rights Reserved2010 Wendy Skinner and Associates, Inc. All Rights Reserved Process for Developing Strategic Goals, Objectives, Key Performance Indicators (KPIs) and Initiatives 29 1. Create Goals 2. Define Objectives 3. Develop Key Performance Indicators (KPIs) 4. Establish Performance Targets 5. Identify Initiatives Specifies the high level strategic themes Clarifies the “what needs to get” of the strategic themes Defines how success will be measured for each objective Used to monitor KPI progress against plan Identifies the “how” the objectives will be achieved – drives results of the KPIs Town Council 75 of 205 Meeting Date: February 7, 2011 2010 Wendy Skinner and Associates, Inc. All Rights Reserved Strategic Planning Workshop Strategic Management High Level Timeline 1Q Report to Council 2Q Report to Council 3Q Report to Council 4Q Report to Council Ongoing Performance Monitoring and Reporting –Monthly Meetings Performance Data Collection, Issue Resolution and Communications Conduct employee annual reviews/ goal setting Develop Dept. Plans and Budgets, Prioritize Initiatives Review Dept. Plans/ Budgets, Finalize Budget Projections Adopt Plan and Budget Begin execution of annual plans = Retreats Town Council 76 of 205 Meeting Date: February 7, 2011 2010 Wendy Skinner and Associates, Inc. All Rights Reserved Town Council SWOT –Updated from November 2009 Strengths Weaknesses •Window of opportunity with new council members •Dedicated employees •Staff event management capabilities •Staff very responsive to issues •Stable financial management •Improving strategic management, business planning •High standards for performance •Improved Town / MUD relationship •Alignment on strategy, goals and direction •Own worst enemy – don‟t see the big external picture •Isolationist view – we don‟t see that other communities are in our same situation - instead we reinvent the wheel •Aging infrastructure •Communications •Not creative or proactive in dealing with financial issues •Understanding cost of services •Growth of operational costs associated with Bond packages •Poor decision making on land development •Resist involvement / use of volunteers •Lack of joint planning with MUD 31 Town Council 77 of 205 Meeting Date: February 7, 2011 2010 Wendy Skinner and Associates, Inc. All Rights Reserved Town Council SWOT –Updated from November 2009 Opportunities Threats • “Town” and “Club” emphasize nucleic value of community (inclusive) • People come here with a purpose (not just „passing through‟) •Residential stability, neighborhood feel –single family •Residents sports/fitness oriented •Involved community –leverage for volunteer activity •Location –central, convenient, yet on the fringe •Solana: changes revenue picture; people who work there may be future Trophy Club residents •114 –reduce accidents, increase convenience •Acquire development land, use of Village property •Utilize progressive zoning •Commercial growth •Regionalization of services (i.e., Library, Parks, Police, Fire/EMS, Schools, other partnerships, etc.) •PID: growth and amenities •Trophy Club Park –big attraction for people outside too •Popularity of Town events –expand to draw more visitors •Byron Nelson HS, education for all grades now available •Bedroom community – people go home and then don‟t go out again •Not welcoming (differences of opinion on whether this is the perception) •Vocal opposition to almost anything • Neighboring communities, becoming the “donut hole” •How demographic changes will impact town ( aging residents, new/ younger residents/families) •Tax threshold •114 –passing us by •No through traffic –tucked away •Congestion –here and beyond •Limited commercial opportunities –constrained by size of Town • We don‟t control the land •PID: cost of growth and maintenance needs •Cost of parks •High School will tax police 32 Town Council 78 of 205 Meeting Date: February 7, 2011 2010 Wendy Skinner and Associates, Inc. All Rights Reserved2010 Wendy Skinner and Associates, Inc. All Rights Reserved Proposed Communication Plan Conduct Council / Management strategic review and align Once strategic plan is finalized: Conduct employee town hall led by Town Manager with Mayor/Council member attendance to communicate the strategy and demonstrate unity Conduct departmental meetings led by department manager Deeper dive into relevant areas of strategic objectives and measures Publish the strategy on Town website –vision, mission, values, strategy map, metrics, key initiatives Plan for quarterly communication on progress against strategy objectives 33 Town Council 79 of 205 Meeting Date: February 7, 2011 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12011-51-T Name: Status:Type:Agenda Item Regular Session File created:In control:1/31/2011 Town Council On agenda:Final action:2/7/2011 Title:Consider and take appropriate action regarding the Minutes dated January 17, 2011. Attachments:January 17 2011 Minutes.pdf Action ByDate Action ResultVer. Title Consider and take appropriate action regarding the Minutes dated January 17, 2011. Town Council 80 of 205 Meeting Date: February 7, 2011 MINUTES FROM REGULAR SESSION TOWN COUNCIL MEETING FOR THE TOWN OF TROPHY CLUB LOCATION: 100 MUNICIPAL DRIVE, TROPHY CLUB, TEXAS Monday, January 17, 2011 at 7:00 P.M. Svore Municipal Building Boardroom The Town Council of the Town of Trophy Club, Texas, met in Regular Session on Monday, January 17, 2011. The meeting was held within the boundaries of the Town and was open to the public. STATE OF TEXAS § COUNTY OF DENTON § TOWN COUNCIL MEMBERS PRESENT: Connie White Mayor Bill Rose Mayor Pro Tem Margi Cantrell Council Member Larry Hoover Council Member Glenn Strother Council Member TOWN COUNCIL MEMBERS PRESENT: JD Stotts Council Member STAFF AND GUEST(S) PRESENT: Mike Slye Town Manager Stephen Seidel Assistant Town Manager Shannon DePrater Town Secretary Patricia Adams Town Attorney Scott Kniffen Police Chief Kathy Dubose Finance Director Carolyn Huggins Community Development Director Mayor White announced the date of January 17, 2011; called the meeting to order and announced a quorum at 6:03 p.m. Mayor announced Council member Stotts would be absent. WORKSHOP 1. Discussion of Trophy Club Commons Development and related agenda items posted on the Regular Session Council Agenda for January 17, 2011. Community Development Director Huggins addressed Council; stating that Management is asking Council to approve the entire project, knowing that management will review the site plan once FEMA approves the CLOMR, and grant the authority to the Town Manager to approve at a later date. Council member Hoover asked if the roundabout design would be changed due to this project. Community Development Director Huggins stated that the developer has already made the necessary change to include the left turn lane and the change was approved in the construction planes 2. Discussion of agenda items posted for consideration on the Regular Session Council Agenda for January 17, 2011. Council took a short break and resumed at 7:07 p.m. Town Council 81 of 205 Meeting Date: February 7, 2011 REGULAR SESSION - START TIME 7:07 P.M. The Invocation was offered by Police Chief Kniffen. The Pledges were led by Finance Director Kathy DuBose. Citizen Presentations: This is an opportunity for citizens to address the Council on any matter whether or not it is posted on the agenda. The Council is not permitted to take action on or discuss any presentations made to the Council at this time concerning an item not listed on the agenda. The Council will hear presentations on specific agenda items prior to the Council addressing those items. You may speak up to three (3) minutes or the time limit determined by the Mayor or presiding officer. To speak during this item you must complete the Speaker's form that includes the topic(s) of your statement. Topics of presentation should be limited to matters over which the Council has authority. Jeanette Tiffany, 44 Cypress Court, addressed the Council. Tiffany stated she represented 56 volunteers who collected signatures for a local option election petition. At this time, 1123 signatures have been collected with another 75 expected. CONSENT AGENDA All matters listed as Consent Agenda are considered to be routine by the Town Council and will be enacted by one motion. There will not be a separate discussion of these items. If discussion is desired, that item will be removed from the consent agenda and will be considered separately. 3. Consider and take appropriate action regarding an Ordinance of The Town of Trophy Club, Texas Amending Subsection “B”, “Stop Signs”, of Section 2.03 “Traffic Control Devices” of Article II, “Traffic & Vehicles” of Chapter 10 “Public Safety” of The Code of Ordinances of the Town to designate additional stop intersections and authorize the placement of additional stop signs at those intersections; providing for a penalty; and providing an effective date. Motion made by Mayor Pro Tem Rose, seconded by Council member Cantrell, to approve the consent agenda. Motion carried unanimously without further discussion. Council convened into Public Hearing at 7:24 p.m. PUBLIC HEARING 4. Public Hearing regarding a request for approval of a Site Plan of Lot 1, Block 1, Trophy Club Commons, being a 6.570 acre tract of land located in the J. Eads Survey, Abstract 392 and the J. Sutton Survey, Abstract 1154. Applicant: Baird, Hampton & Brown, Inc. on behalf of Trophy Club Equities (SP-09-010) No citizens addressed the Council. Council reconvened into Regular Session at 7:24 p.m. REGULAR SESSION 5. Consider and take appropriate action regarding a request for approval of a Preliminary Plat of Lot 1, Block 1, Trophy Club Commons, being a 6.570 acre tract of land located in the J. Eads Survey, Abstract 392 and the J. Sutton Survey, Abstract 1154. Applicant: Baird, Hampton & Brown, Inc. on behalf of Trophy Club Equities (PP-09-017) Motion made by Mayor Pro Tem Rose, seconded by Council member Hoover, to approve a Preliminary Plat of Lot 1, Block 1, Trophy Club Commons. Motion carried unanimously without further discussion. Town Council 82 of 205 Meeting Date: February 7, 2011 6. Consider and take appropriate action regarding a request for approval of a Final Plat of Lot 1, Block 1, Trophy Club Commons, being a 6.570 acre tract of land located in the J. Eads Survey, Abstract 392 and the J. Sutton Survey, Abstract 1154. Applicant: Baird, Hampton & Brown, Inc. on behalf of Trophy Club Equities (FP-09-031) Motion made by Council member Cantrell, seconded by Council member Strother to approve a Final Plat of Lot 1, Block 1, Trophy Club Commons, being a 6.570 acre tract of land located in the J. Eads Survey, Abstract 392 and the J. Sutton Survey, Abstract 1154. Motion carried unanimously without further discussion. 7. Consider and take appropriate action regarding a request for approval of a Site Plan of Lot 1, Block 1, Trophy Club Commons, being a 6.570 acre tract of land located in the J. Eads Survey, Abstract 392 and the J. Sutton Survey, Abstract 1154. Applicant: Baird, Hampton & Brown, Inc. on behalf of Trophy Club Equities (SP-09-010) A. Developer's Agreement. Consider and take appropriate action regarding approval of a Developer's Agreement for Trophy Club Commons between the Town and Trophy Club Equities. Jim Hicks, 227 Phoenix Drive, addressed the Council as President of EDC 4B and related that EDC 4B has worked closely with Staff. Staff does an exceptional job and recommends that Staff be entrusted with overseeing this project. Motion made by Mayor Pro Tem Rose, seconded by Council member Cantrell, to approve a Site Plan of Lot 1, Block 1, Trophy Club Commons, and the amended Developer’s Agreement; granting a waiver for the front setback for Building No. 2, granting the Town Manager authority to approve revisions to the site plan for accommodation of the final engineered roundabout design, and granting the Town Manager authority to approve changes to the Site Plan, if needed, once FEMA approval is obtained. Motion carried unanimously without further discussion. 8. Consider and take appropriate action to approve the First Modification to the Highlands at Trophy Club, Neighborhood 8, Phase 1, Subdivider's Agreement by and between the Town and Lennar Homes of Texas, and authorizing the Mayor or her designee to execute all necessary documents. Motion made by Mayor Pro Tem Rose, seconded by Council member Cantrell, to approve the First Modification to the Highlands at Trophy Club, Neighborhood 8, Phase 1, Subdivider's Agreement by and between the Town and Lennar Homes of Texas as amended, and authorizing the Mayor or her designee to execute all necessary documents. Motion carried unanimously without further discussion. 9. Consider and take appropriate action regarding an Ordinance of the Town of Trophy Club, Texas, amending the Code of Ordinances of The Town by adding Article XVII entitled “Code of Ethics and Conduct” to Chapter 1 entitled “Administration” of the Code of Ordinances by adopting an Ethics Policy, establishing an Ethics Commission, and providing for the disposition of alleged violations; providing a penalty; and providing an effective date. Town Manager Slye stated that Staff met with Mayor Pro Tem Rose that afternoon and changes were made to the Ordinance and those changes have been placed before them and that Council would be approving the hard copy in front of them, not what is in the packet. Mayor Pro Tem Rose stated that an effective date April 15, 2011 was used to allow Council enough time to appoint individuals to the Commission. Town Council 83 of 205 Meeting Date: February 7, 2011 Greg Lamont, 15 Avalon Drive, addressed the Council and asked if Council could add that no one on Council could gut or remove items, and that enhancements to the Ordinance would be okay. Motion made by Mayor Pro Tem Rose, seconded by Council member Cantrell, to approve Ordinance 2011-03, amending the Code of Ordinances of The Town by adding Article XVII entitled “Code of Ethics and Conduct” to Chapter 1 entitled “Administration” of the Code of Ordinances by adopting an Ethics Policy, establishing an Ethics Commission, and providing for the disposition of alleged violations; providing a penalty; and providing an effective date. Council member Hoover had an issue with granting judicial approval to an appointed body; he cannot support this methodology. Mayor White questioned if Council would view the complaint. Town Attorney Adams explained prior drafts stated Council would view the complaint, but the current draft does not allow for Council to see the complaint. Mayor Pro Tem Rose explained that the Charter states that the Commission must be independent and if Council would see the complaint and make a decision, the Commission would not be independent. Motion made by Mayor Pro Tem Rose, seconded by Council member Cantrell, to remove motion on the table. No action taken. 10. Consider and take appropriate action establishing goals and objectives for FY 2011-12. Motion made by Mayor Pro Tem Rose, seconded by Council member Cantrell, to establish the Vision as “Trophy Club a Great Place to Call Home.” Motion carried unanimously without further discussion. Motion made by Council member Cantrell, seconded by Mayor White to establish the Mission as “Through dedicated innovative leadership, provide superior municipal services and facilities in a highly effective, efficient manner to make the Town of Trophy Club a great place to call home.” Motion failed 3- 2-0 with Mayor White and council members Cantrell and Hoover voting for and Mayor Pro Tem Rose and Council member Strother voting against. Motion made by Mayor Pro Tem Rose, seconded by Council member Strother to establish the Mission as “Be a great place to call home through dedicated innovative leadership, while providing superior municipal services and facilities in a highly effective, efficient manner.” Motion carried unanimously. Motion made by Mayor Pro Tem Rose, seconded by Council member Cantrell, to carry forward Council’s Legacy Priorities. Motion carried unanimously. Town Council's Legacy Priorities include: Safe and Secure Friendly, Responsive Clean, Well Kept Healthy and Vibrant Sustainable Economic Development and Strong Financial Health Motion made by Mayor Pro Tem Rose, seconded by Council member Cantrell, to adopt Goals 1 – 5 under the column 2011-2012 and forward to the Town Manager as Council input’s as Goals for FY2011- 2012. Motion carried unanimously. Town Council Goals for FY 2011-2012 include: Goal #1: Safe and secure community. Maintain low crime rate Town Council 84 of 205 Meeting Date: February 7, 2011 Increase citizen awareness and involvement in crime prevention Provide superior Emergency Services Improve data security Goal #2: Business-Friendly Economic Development Create effective working relationships with businesses and developers Retain / Develop existing businesses Promote new commercial opportunities Goal #3: Strong Partnerships and Community Involvement Create a positive regional identity Foster a well informed community Enhance citizen volunteer opportunities Expand and promote recreational / active live style opportunities for all ages Forge collaborative relationships with other governmental and public entities Goal #4: Picturesque and Environmentally Sound Maintain neat and tidy appearance Improve property maintenance standards and code enforcement Develop / Enhance environmental and sustainability standards and programs Goal #5: Financial and Operational Stewardship Hire, develop, and retain quality staff Implement strong financial management standards Improve effectiveness and efficiency of operational processes Maintain / Improve infrastructure and assets Provide cost-effective services Deliver responsible customer service Motion made by Mayor Pro Tem Rose, seconded by Council member Strother, to adopt the core values. Motion carried unanimously. Town Council Core Values include: Integrity and trust Accountability Teamwork Innovation Pride and Service Commitment 11. Consider and take appropriate action appointing Council members to serve on the Audit Subcommittee. Motion made by Mayor Pro Tem Rose, seconded by Council member Hoover, to appoint Mayor White and Council member Cantrell to serve on the Audit Subcommittee. Motion carried unanimously without further discussion. 12. Consider and take appropriate action regarding financial and variance report dated December 2010. Motion made by Mayor Pro Tem Rose, seconded by Council member Cantrell to approve the financial and variance report dated December 2010 as presented. Motion carried unanimously without further discussion. 13. Consider and take appropriate action to recognize and support a "Neighbor Helping Neighbor" program in the Town of Trophy Club. Town Council 85 of 205 Meeting Date: February 7, 2011 Mayor White explained the Neighbor Helping Neighbor Program to Council and asked for a motion of support of the program, not financial support. Town Manager Slye asked Council if the Town website could be utilized as a tool for advertising/marketing the program. Motion made by Mayor Pro Tem Rose, seconded by Council member Strother, showing support of the Neighbor Helping Neighbor Program. Motion carried unanimously without further discussion. 14. Town Manager Slye's update regarding the following; discussion of the same. · Citizens Police Academy · TML IEBP Board Meeting - January 26 - 28, 2011 · Community Clean Up Event - April 9, 2011 · Update on Independence Park East and Freedom Park Construction · Update on Hiring of Engineering Firm for Drainage Analysis Town Manager Slye updated the Council and answered questions. No action taken, update only. 15. Mayor and Council Updates regarding training opportunities, educational sessions, and regional meetings; discussion of same. Mayor White gave a brief update of the meetings she attended since the last Council meeting. No action taken, update only. 16. Items for Future Agendas. This item allows Council to request the placement of items on upcoming agendas when the topic of discussion requires research and review that cannot be accomplished in the time frame between regular Council meetings. However, a Council Member may request that an item be placed on the next regularly scheduled meeting without first placing that item on the Future Agenda Items list. All requests for agenda items must comply with Charter requirements. No changes were made to the Items for Future Agendas list. ADJOURN Motion made by Council member Hoover, seconded by Mayor Pro Tem Rose to Adjourn. Meeting adjourned at 9:23 p.m. ___________________________________ ________________________________ Shannon DePrater, Town Secretary Connie White, Mayor Town of Trophy Club, Texas Town of Trophy Club, Texas Town Council 86 of 205 Meeting Date: February 7, 2011 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12011-40-T Name: Status:Type:Agenda Item Regular Session File created:In control:1/28/2011 Town Council On agenda:Final action:2/7/2011 Title:Consider and take appropriate action regarding granting a Special Privilege Request to the Trophy Club Women's Club to hold two Community Garage Sale Events in 2011. Applicant: Rebecca Freed on behalf of Trophy Club Women's Club. Attachments:2011 Staff Report - TC.pdf 2011 Application.pdf Action ByDate Action ResultVer. Title Consider and take appropriate action regarding granting a Special Privilege Request to the Trophy Club Women's Club to hold two Community Garage Sale Events in 2011. Applicant: Rebecca Freed on behalf of Trophy Club Women's Club. Goals Goal # 3: Strong Partnerships and Community Involvement Create a positive regional identity Foster a well informed community Enhance citizen volunteer opportunities Expand and promote recreational / active live style opportunities for all ages Forge collaborative relationships with other governmental and public entities Town Council 87 of 205 Meeting Date: February 7, 2011 TOWN COUNCIL February 7, 2011 SUBJECT: Consider and take appropriate action regarding granting a Special Privilege Request to the Trophy Club Women’s Club to hold two Community Garage Sale Events in 2011. Applicant: Rebecca Freed on behalf of Trophy Club Women’s Club. STAFF COMMENTS: On behalf of the Trophy Club Women’s Club, Ms. Freed is requesting permission to hold two community-wide garage sale events in Trophy Club in 2011. The Women’s Club requests waiver of the $25 per event fee. The spring garage sale will be held Saturday, March 26, 2011 and the fall sale will occur Saturday, October 8, 2011. Each event will be held from 8:00 a.m. to 2:00 p.m. and for each event, no alternate rain day is planned. As required by ordinance, the Police Chief has reviewed this request and given DPS approval. PLANNING AND ZONING COMMISSION RECOMMENDATION: The Planning and Zoning Commission will hear this request on Thursday, February 3, but the Council agenda and packet are completed prior to the occurrence of this meeting. Council will be given P&Z recommendation at the Council meeting on February 7, 2011. (ch) Attachments: Application Town Council 88 of 205 Meeting Date: February 7, 2011 Town Council 89 of 205 Meeting Date: February 7, 2011 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12011-53-T Name: Status:Type:Agenda Item Regular Session File created:In control:1/31/2011 Town Council On agenda:Final action: Title:Consider and take appropriate action regarding an Ordinance of the Town of Trophy Club, Texas, amending the Code of Ordinances of The Town by adding Article XVII entitled “Code of Ethics and Conduct” to Chapter 1 entitled “Administration” of the Code of Ordinances by adopting an Ethics Policy, establishing an Ethics Commission, and providing for the disposition of alleged violations; providing a penalty; and providing an effective date. Attachments:ORD 2011-03 Code of Ethics & Conduct.pdf Action ByDate Action ResultVer. Title Consider and take appropriate action regarding an Ordinance of the Town of Trophy Club, Texas, amending the Code of Ordinances of The Town by adding Article XVII entitled “Code of Ethics and Conduct” to Chapter 1 entitled “Administration” of the Code of Ordinances by adopting an Ethics Policy, establishing an Ethics Commission, and providing for the disposition of alleged violations; providing a penalty; and providing an effective date. Goal Goal #1: Safe and secure community. Maintain low crime rate Increase citizen awareness and involvement in crime prevention Provide superior Emergency Services Improve data security Town Council 90 of 205 Meeting Date: February 7, 2011 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12010-691-T Name: Status:Type:Agenda Item Regular Session File created:In control:12/28/2010 Town Council On agenda:Final action:2/7/2011 Title:Consider and take appropriate action regarding an Ordinance of the Town of Trophy Club, Texas amending the FY 2010-2011 Budget of the Town of Trophy Club, Texas; providing for the incorporation of premises; providing for an amendment to appropriate funds needed to pay engineering costs related to capital improvements at Harmony Park (Budget Amendment No. 1 making a supplemental appropriation in accordance with the Town Charter); providing a savings and repealer clause; providing for severability; providing for engrossment and enrollment; and providing an effective date. Attachments:ORD 2011-04 Budget Amend No 1 Engr Fees Harm Park.pdf Action ByDate Action ResultVer. Title Consider and take appropriate action regarding an Ordinance of the Town of Trophy Club, Texas amending the FY 2010- 2011 Budget of the Town of Trophy Club, Texas; providing for the incorporation of premises; providing for an amendment to appropriate funds needed to pay engineering costs related to capital improvements at Harmony Park (Budget Amendment No. 1 making a supplemental appropriation in accordance with the Town Charter); providing a savings and repealer clause; providing for severability; providing for engrossment and enrollment; and providing an effective date. Background In 2007, the Town of Trophy Club issued $474,000 in bonds for capital improvements at Harmony Park. During the construction of the improvements the scope of the project was expanded to substantially increase the parking lot from the original plan. The expansion required additional design and construction engineering which caused an overage in the original cost estimate. The attached budget amendment appropriates an additional $35,800 for engineering services provided for that project. This budget amendment provides the necessary appropriation to address the additional engineering costs. Recommendation Management recommends approval. Goal Goal #5: Financial and Operational Stewardship Hire, develop, and retain quality staff Implement strong financial management standards Improve effectiveness and efficiency of operational processes Maintain / Improve infrastructure and assets Provide cost-effective services Deliver responsible customer service Town Council 91 of 205 Meeting Date: February 7, 2011 TOWN OF TROPHY CLUB ORDINANCE NO. 2011-04 AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS AMENDING THE FY 2010-2011 BUDGET OF THE TOWN OF TROPHY CLUB, TEXAS; PROVIDING FOR THE INCORPORATION OF PREMISES; PROVIDING FOR AN AMENDMENT TO APPROPRIATE FUNDS NEEDED TO PAY ENGINEERING COSTS RELATED TO CAPITAL IMPROVEMENTS AT HARMONY PARK (BUDGET AMENDMENT NO. 1 MAKING A SUPPLEMENTAL APPROPRIATION IN ACCORDANCE WITH THE TOWN CHARTER); PROVIDING A SAVINGS AND REPEALER CLAUSE; PROVIDING FOR SEVERABILITY; PROVIDING FOR ENGROSSMENT AND ENROLLMENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Town of Trophy Club, Texas Fiscal Year 2010-2011 Budget was adopted within the time and in the manner required by State Law; and WHEREAS, in that Budget, the Town Council appropriated funds for parks expenses based upon prior year experience and estimated costs of projects; and WHEREAS, the Town Council previously approved an EDC4A project for various capital improvements within Harmony Park; and WHEREAS, the original scope of the project included a forty space parking lot, however, it was deemed prudent to expand the size of the parking lot to eighty spaces; and WHEREAS, the expansion caused an overage in the original cost estimate; and WHEREAS, the Town Council of the Town of Trophy Club, Texas hereby finds and determines that it is prudent to amend specific line items due to the unforeseen costs described herein that occurred with the park improvements and which impacted the line items specified below; and WHEREAS, the Town Council of the Town of Trophy Club, Texas further finds that the amendment, as set forth in Exhibit “A”, will serve the public interest and is necessary to support Town operations; and WHEREAS, the Town Council of the Town of Trophy Club, Texas finds and determines that the change in the Budget for the stated municipal purpose serves best interests of the taxpayers, is necessary and warrants action at this time; NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: Town Council 92 of 205 Meeting Date: February 7, 2011 SECTION 1. INCORPORATION OF PREMISES That the above and foregoing premises are true and correct and are incorporated herein and made a part hereof for all purposes. SECTION 2. AMENDMENT The Town of Trophy Club, Texas, Fiscal Year 2010-2011 Budget is hereby amended to fund the line items as stated in Exhibit “A”, a copy of which is attached hereto and incorporated herein. This Amendment No. 1 (Exhibit “A”) to the Original Budget of the Town of Trophy Club, Texas, for the Fiscal Year 2010-2011 shall be attached to and made part of the Original Budget by the Town Secretary and shall be filed in accordance with State Law. This Ordinance is hereby adopted and shall constitute the first budget amendment that has occurred since the October 1, 2010 effective date of the Town’s Fiscal Year 2010-2011 Budget. SECTION 3. SAVINGS AND REPEALER That this Ordinance shall be cumulative of all other Ordinances of the Town affecting the Fiscal Year 2010-2011 Budget of the Town and shall not repeal any of the provisions of such Ordinances except in those instances where provisions of those Ordinances are in direct conflict with the provisions of this Ordinance; whether such Ordinances are codified or uncodified, and all other provisions of the Ordinances of the Town of Trophy Club, codified or uncodified, not in conflict with the provisions of this Ordinance, shall remain in full force and effect. SECTION 4. SEVERABILITY If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance, or application thereof to any person or circumstance, is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of the Ordinance, and the Town Council hereby declares it would have passed such remaining portions of the Ordinance despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 5. ENGROSSMENT AND ENROLLMENT The Town Secretary of the Town of Trophy Club is hereby directed to engross and enroll this Ordinance in the Ordinance records of the Town and to properly record this Ordinance in accordance with the Town Charter. Town Council 93 of 205 Meeting Date: February 7, 2011 SECTION 6. EFFECTIVE DATE This Ordinance shall take effect from and after its date of passage in accordance with law, and it is so ordained. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, this the 7th day of February, 2011. _______________________________ Mayor, Connie White Town of Trophy Club, Texas ATTEST: _________________________________________ Shannon DePrater, Town Secretary Town of Trophy Club, Texas [SEAL] _______________________________ Patricia A. Adams, Town Attorney Town of Trophy Club, Texas Town Council 94 of 205 Meeting Date: February 7, 2011 Exhibit “A” Town of Trophy Club Budget Amendment No. 1 The Fiscal Year 2010-2011 General Fund Expenditure Budget Increase specified below is a result of costs associated with the completion of the expansion of the Harmony Park parking lot. Original Budget Amendment Amended Budget Harmony Park Capital Expense- $ -0- $ 35,800.00 $ 35,800.00 Engineering Town Council 95 of 205 Meeting Date: February 7, 2011 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12011-54-T Name: Status:Type:Agenda Item Regular Session File created:In control:1/31/2011 Town Council On agenda:Final action:2/7/2011 Title:Consider and take appropriate action regarding an Ordinance of the Town of Trophy Club, Texas amending the FY 2010-2011 Budget of the Town of Trophy Club, Texas; providing for the incorporation of premises; providing for an amendment to appropriate revenue as needed to pay increased costs of Denton County Police dispatch services provided to the Town (Budget Amendment No. 2 making a supplemental appropriation in accordance with the Town Charter); providing a savings and repealer clause; providing for severability; providing for engrossment and enrollment; and providing an effective date. Attachments:ORD 2011-05 Budget Amend No 2 Dispatch.pdf Action ByDate Action ResultVer. Title Consider and take appropriate action regarding an Ordinance of the Town of Trophy Club, Texas amending the FY 2010- 2011 Budget of the Town of Trophy Club, Texas; providing for the incorporation of premises; providing for an amendment to appropriate revenue as needed to pay increased costs of Denton County Police dispatch services provided to the Town (Budget Amendment No. 2 making a supplemental appropriation in accordance with the Town Charter); providing a savings and repealer clause; providing for severability; providing for engrossment and enrollment; and providing an effective date. Background The attached ordinance amends the 2010-2011Town budget by increasing the appropriations for developer fee revenue to offset the cost of an intergovernmental communications and dispatch agreement with Denton County. The Town’s current budget was estimated in anticipation of fewer Highlands Neighborhoods being developed than those which were actually brought forward in November 2010. The additional developer fees exceeding the annual budget estimate. The attached budget amendment ordinance updates the current year revenue budget for developer fees to appropriate a portion of the amount received in excess of the original budget by $31,766 to pay the costs of the intergovernmental agreement with Denton County. Goal Goal #5: Financial and Operational Stewardship Hire, develop, and retain quality staff Implement strong financial management standards Improve effectiveness and efficiency of operational processes Maintain / Improve infrastructure and assets Provide cost-effective services Deliver responsible customer service Town Council 96 of 205 Meeting Date: February 7, 2011 TOWN OF TROPHY CLUB ORDINANCE NO. 2011-05 AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS AMENDING THE FY 2010-2011 BUDGET OF THE TOWN OF TROPHY CLUB, TEXAS; PROVIDING FOR THE INCORPORATION OF PREMISES; PROVIDING FOR AN AMENDMENT APPROPRIATING REVENUE AS NEEDED TO PAY INCREASED COSTS OF DENTON COUNTY POLICE DISPATCH SERVICES PROVIDED TO THE TOWN (BUDGET AMENDMENT NO. 2 MAKING A SUPPLEMENTAL APPROPRIATION IN ACCORDANCE WITH THE TOWN CHARTER); PROVIDING A SAVINGS AND REPEALER CLAUSE; PROVIDING FOR SEVERABILITY; PROVIDING FOR ENGROSSMENT AND ENROLLMENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Town of Trophy Club, Texas Fiscal Year 2010-2011 Budget was adopted within the time and in the manner required by State Law; and WHEREAS, in that Budget, the Town Council appropriated funds for expenses related to the costs of dispatch services provided by Denton County for the Police Department; and WHEREAS, due to an increased service demand there is a need for increased dispatching staff in the Denton County Sheriff’s Office, and the fee paid by the Town for dispatch services is increasing; and WHEREAS, the Town’s current budget was estimated in anticipation of fewer Highlands Neighborhoods being developed than those which were actually brought forward in November 2010; and WHEREAS, additional development occurred therefore developer fees exceeding the annual budget estimate were received, and those fees provided $32,833, a portion of which may be used to offset the costs of the interlocal agreement with Denton County; and WHEREAS, additional developer fees exceeding the annual budget estimate were received which provides $32,833, a portion of which may be used to offset a portion of the costs of the interlocal agreement with Denton County; and WHEREAS, this amendment appropriates $31,766 of the additional developer fees; and WHEREAS, Section 9.06 (a) of the Town Charter provides for supplemental appropriations if during the fiscal year the Town Manager certifies that revenues in excess of those estimated in the budget are available for appropriation; and Town Council 97 of 205 Meeting Date: February 7, 2011 WHEREAS, upon a certification of excess revenues by the Town Manager, the Council by ordinance may make supplemental appropriations for the year up to the amount of the excess revenues; and WHEREAS, the Town Manager has certified that there are available for appropriations $31,766 in excess revenues above those estimated in the FY 2010-2011 Budget, a copy of the Town Manager’s Certification is attached hereto and incorporated herein as Exhibit “A”; and WHEREAS, the Town Council accepts the Town Manager’s certification and recommendation and finds that in the foregoing circumstances, appropriations are necessary and therefore determines it appropriate to approve this Ordinance making a supplemental appropriation of $31,766 as Amendment No. 2 to the FY 2010-2011 Budget as more specifically set forth in Exhibit “B”, attached hereto and incorporated herein; and WHEREAS, the Town Council of the Town of Trophy Club, Texas hereby finds and determines that it is prudent to amend the FY 2010-2011 Budget as set forth in Exhibit “B” due to the availability of excess revenues; and WHEREAS, the Town Council of the Town of Trophy Club, Texas further finds that the amendment, as set forth in Exhibit “B”, will serve in the public interest and is necessary to support public safety; and WHEREAS, the Town Council of the Town of Trophy Club, Texas finds and determines that the change in the Budget for the stated municipal purpose serves best interests of the taxpayers, is necessary and warrants action at this time; NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: SECTION 1. INCORPORATION OF PREMISES That the above and foregoing premises are true and correct and are incorporated herein and made a part hereof for all purposes. SECTION 2. AMENDMENT The Town of Trophy Club, Texas, Fiscal Year 2010-2011 Budget is hereby amended to fund the line items as stated in Exhibit “A”, a copy of which is attached hereto and incorporated herein. This Amendment No. 2 (Exhibit “A”) to the Original Budget of the Town of Trophy Club, Texas, for the Fiscal Year 2010-2011 shall be attached to and made part of the Original Budget by the Town Secretary and shall be filed in accordance with State Law. This Ordinance is hereby adopted and shall Town Council 98 of 205 Meeting Date: February 7, 2011 constitute the second budget amendment that has occurred since the October 1, 2010 effective date of the Town’s Fiscal Year 2010-2011 Budget. SECTION 3. SAVINGS AND REPEALER That this Ordinance shall be cumulative of all other Ordinances of the Town affecting the Fiscal Year 2010-2011 Budget of the Town and shall not repeal any of the provisions of such Ordinances except in those instances where provisions of those Ordinances are in direct conflict with the provisions of this Ordinance; whether such Ordinances are codified or uncodified, and all other provisions of the Ordinances of the Town of Trophy Club, codified or uncodified, not in conflict with the provisions of this Ordinance, shall remain in full force and effect. SECTION 4. SEVERABILITY If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance, or application thereof to any person or circumstance, is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of the Ordinance, and the Town Council hereby declares it would have passed such remaining portions of the Ordinance despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 5. ENGROSSMENT AND ENROLLMENT The Town Secretary of the Town of Trophy Club is hereby directed to engross and enroll this Ordinance in the Ordinance records of the Town and to properly record this Ordinance in accordance with the Town Charter. SECTION 6. EFFECTIVE DATE This Ordinance shall take effect from and after its date of passage in accordance with law, and it is so ordained. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, this the 7th day of February, 2011. _______________________________ Mayor, Connie White Town of Trophy Club, Texas ATTEST: Town Council 99 of 205 Meeting Date: February 7, 2011 _________________________________________ Shannon DePrater, Town Secretary Town of Trophy Club, Texas [SEAL] _______________________________ Patricia A. Adams, Town Attorney Town of Trophy Club, Texas Town Council 100 of 205 Meeting Date: February 7, 2011 Exhibit “A” Town Manager Certification of Revenue Excess The Town has excess revenues which are not fund appropriated as revenue available for use in the Town’s FY 2010-2011 Budget. The excess revenues are available due to additional development and development fees received by the Town. Excess revenues needed for the payment of approved purchases exceed the amount of those revenues estimated in the FY 2010-2011 Budget and are available for appropriation in an amount not to exceed $31,766 in the current FY 2010-2011 Budget. It is my recommendation that the moneys be used for the purposes specified in Budget Amendment No. 2 to the FY 2010-2011 Budget. _____________________________________ Michael T. Slye, Town Manager Date:_________________________________ Town Council 101 of 205 Meeting Date: February 7, 2011 Exhibit “B” Town of Trophy Club Budget Amendment No. 2 Fiscal Year 2010‐2011 General Fund Revenue and Expenditure Budget Increases of $31,766 for an intergovernmental communications and dispatch agreement with Denton County. Original Budget Amendment Amended Budget Revenue: Developer Fees $ 50,000 $ 31,766 $ 81,766 Expenditure: Denton County Dispatch $ ‐0‐ $ 31,766 $ 31,766 Town Council 102 of 205 Meeting Date: February 7, 2011 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12011-55-T Name: Status:Type:Agenda Item Regular Session File created:In control:1/31/2011 Town Council On agenda:Final action:2/7/2011 Title:Consider and take appropriate action regarding an Interlocal Cooperation Agreement between Denton County and the Town of Trophy Club for participation in a Shared Governance Communication and Dispatch Services System; authorizing the payment of a fee not to exceed $31,766 for the costs of those services for the term of the Agreement; authorizing the Mayor or her designee to execute necessary documents and providing an effective date. Attachments:2010-11 Combined Communications Contracts.pdf Action ByDate Action ResultVer. Title Consider and take appropriate action regarding an Interlocal Cooperation Agreement between Denton County and the Town of Trophy Club for participation in a Shared Governance Communication and Dispatch Services System; authorizing the payment of a fee not to exceed $31,766 for the costs of those services for the term of the Agreement; authorizing the Mayor or her designee to execute necessary documents and providing an effective date. Explanation Denton County S.O. provides dispatch services for police, fire, and EMS agencies throughout Denton County. There is a need to increase staffing at the sheriffs office in order to provide additional services to these agencies. This interlocal agreement would provide for a service fee to be paid by the Town of Trophy Club to Denton County for the dispatch services provided. Recommendation and Justification to Council: Management recommends approval of this agreement. Goals Goal #1: Safe and secure community. Maintain low crime rate Increase citizen awareness and involvement in crime prevention Provide superior Emergency Services Improve data security Goal # 3: Strong Partnerships and Community Involvement Create a positive regional identity Foster a well informed community Enhance citizen volunteer opportunities Expand and promote recreational / active live style opportunities for all ages Forge collaborative relationships with other governmental and public entities Town Council 103 of 205 Meeting Date: February 7, 2011 Interlocal Cooperation Agreement for Shared Governance Communications & Dispatch Services System 2010-11 Page 1 STATE OF TEXAS § § COUNTY OF DENTON § INTERLOCAL COOPERATION AGREEMENT FOR SHARED GOVERNANCE COMMUNICATIONS & DISPATCH SERVICES SYSTEM This Interlocal Cooperation Agreement for Shared Governance Communications and Dispatch Services System, hereinafter referred to as "Agreement", is made by and between Denton County, a political subdivision of the State of Texas, hereinafter referred to as the “County”, and Trophy Club Police Dept. Name of Agency: hereinafter referred to as “Agency”. WHEREAS, the County is a duly organized political subdivision of the State of Texas engaged in the administration of county government and related services for the benefit of the citizens of Denton County, Texas; and WHEREAS, the Agency is duly organized and operating under the laws of the State of Texas engaged in the provision of municipal government and/or related services for the benefit of the citizens of Agency; and WHEREAS, parties agree that the utilization of combined communications and dispatch services system will be in the best interests of both the County and the Agency, WHEREAS, the County and the Agency mutually desire to be subject to the provisions of the Interlocal Cooperation Act of the V.T.C.A. Government Code, Chapter 791; and NOW THEREFORE, the County and the Agency, for the mutual consideration hereinafter stated, agree and understand as follows: 1. PURPOSE. The Denton County Sheriff (“Sheriff”) has the facilities to provide emergency telecommunications and dispatch services throughout Denton County. The Agency wishes to utilize the Sheriff’s available telecommunications and dispatch services (“Services”) during the term of this agreement. 2. ADVISORY BOARD. The Denton County Sheriff’s Office will establish an Advisory Board for the Shared Governance Communication and Dispatch System “Advisory Board”. The membership of the board shall be the Chief of each Agency, or designee. The Advisory Board may advise and make recommendations to the Sheriff and the Sheriff’s Office on matters relating to the Communications Center, as well as the recommendations for the Annual Agency Workload and Cost Statistics, within the limitations set forth in paragraph 6.1, herein. 3. TERM OF AGREEMENT. The initial term of this Agreement shall be for a one year period beginning March 1, 2011 and ending on September 30, 2011. 4. TERMINATION OF AGREEMENT. Either party may terminate this agreement, with or without cause, after providing ninety (90) days written notice to the other party. Town Council 104 of 205 Meeting Date: February 7, 2011 Interlocal Cooperation Agreement for Shared Governance Communications & Dispatch Services System 2010-11 Page 2 5. ANNUAL SERVICE FEE. Each Agency shall pay to the County a fee for service for services based on the workload generated by the Agency. 5.1. Agency shall pay to County the Total Amount more fully described on Exhibit “A”, the Agency Workload and Cost Statistics. 5.2. The Agency shall complete Exhibit “B”, Agency Payment Worksheet, to identify the payment terms preferred by Agency. Agency is responsible for sending payments to County. 5.3. The fee for service will be based on the pro rata share of the workload generated by the Agency. 5.4. County agrees to provide Agency a proposed service fees for the next budget/fiscal year on or before April 1st each year. 5.5 If this Agreement is terminated prior to the expiration of the term of the Agreement, payment shall be pro-rated by written agreement between the parties. 6. COUNTY SERVICES AND RESPONSIBILITIES. The County agrees to provide the following services and responsibilities: 6.1 The Sheriff shall have the sole discretion as to the method of providing the Services including, but not limited to the order of response to calls, and shall be the sole judge as to the most expeditious and effective manner of handling and responding to calls for service or the rendering thereof. The Sheriff shall have the sole discretion as to the method and final decision regarding the annual workload and cost statistics. The Sheriff will devote sufficient time to insure the performance of all duties and obligations set forth herein. 6.2 County shall furnish full-time communications services including a twenty-four (24) hours a day, seven (7) days a week public safety answering point, radio services, dispatching services, or law enforcement transmission originating from AGENCY requesting law enforcement and fire protection services and access to local, regional, state, and national data bases and telecommunications systems. 6.3 The services provided by County include the following: 6.3.1 twenty-four (24) hours a day, seven (7) days a week public safety answering point; 6.3.2. receiving emergency and routine calls for law enforcement, fire, and medical services; 6.3.3 directing a response to said calls by dispatching the appropriate law enforcement, fire, and medical services; 6.3.4. providing on-going communication support to the emergency personnel in the field; and 6.3.5 updating, maintaining, and managing the County owned radio communications system, computer systems, support files, and resource materials necessary to accomplish the above. 6.4 County may add new Agencies not currently served by Denton County at the discretion of Denton County and the Denton County Sheriff’s Office. 7. AGENCY RESPONSIBILITIES. The Agency agrees to the following responsibilities: 7.1 Providing accurate current GIS data of the corporate limits and extraterritorial jurisdiction of the Agency. 7.2 Furnish County with a current list of all Officers and Reserves authorized Town Council 105 of 205 Meeting Date: February 7, 2011 Interlocal Cooperation Agreement for Shared Governance Communications & Dispatch Services System 2010-11 Page 3 by Agency to use the communications system. 7.3 Agency is responsible for the costs and upgrades associated with maintaining Agency’s communication equipment. 7.4 Agency agrees to abide by all laws of the United States and the State of Texas and all present or hereafter approved rules, policies and procedures of TLETS, NLETS, TCIC, NCIC and any other system now or in the future associated with TLETS concerning the collection, storage, processing, retrieval, dissemination and exchange of information for criminal justice purposes 7.5 Adherence to all Sheriff’s Office communications rules and regulations. 7.6 Agency agrees to provide all necessary and required TLETS paperwork. See Exhibit “C”. 7.7 Appoint representative and agree to participate in the Advisory Board. 7.8 Agency is responsible for sending payments to County as more fully described in Exhibit “B” to this Agreement. 8. AGREEMENT. The parties acknowledge they have read and understand and intend to be bound by the terms and conditions of this Agreement. This Agreement contains the entire understanding between the parties concerning the subject matter hereof. No prior understandings, whether verbal or written, between the parties or their agents are enforceable unless included in writing in this agreement. This Agreement may be amended only by written instrument signed by both parties. 9. AGREEMENT LIASONS. Each party to this agreement shall designate a Liaison to insure the performance of all duties and obligations of the parties. The Liaison for each party shall devote sufficient time and attention to the execution of said duties on behalf of the Party to ensure full compliance with the terms and conditions of this Agreement. 10. ASSIGNMENT. Neither party shall assign, transfer, or sub-contract any of its rights, burdens, duties, or obligations under this Agreement without the prior written permission of the other party to this Agreement. 11. AGENCY LIABILITY. The Agency understands and agrees that the Agency, its employees, servants, agents, and representatives shall at no time represent themselves to be employees, servants, agents, and/or representatives of the County. The Agency shall not be required to indemnify nor defend County for any liability arising out of the wrongful acts of employees or agents of County to the extent allowed by Texas law. 12. COUNTY LIABILITY. The County understands and agrees that the County, its employees, servants, agents, and representatives shall at no time represent themselves to be employees, servants, agents, and/or representatives of the Agency. The County shall not be required to indemnify nor defend Agency for any liability arising out of the wrongful acts of employees or agents of Agency to the extent allowed by Texas law. 13. DISPUTES/RECOURSE. County and Agency agree that any disputes or disagreements that may arise which are not resolved at the staff level by the parties should be referred to the Appointed Liaisons for each entity. Any further disputes arising from the failure of either Agency or County to perform and/or agree on proportionate reduction in fees shall be submitted to mediation, with the parties splitting the mediation fees equally. It is further agreed and understood that the scope of matters to be submitted to dispute mediation as referenced above is limited to disputes concerning sufficiency of performance and duty to pay Town Council 106 of 205 Meeting Date: February 7, 2011 Interlocal Cooperation Agreement for Shared Governance Communications & Dispatch Services System 2010-11 Page 4 or entitlement, if any, to any reduced fee or compensation. Any other disputes or conflicts involving damages or claimed remedies outside the scope of sufficiency of performance and compensation adjustment shall be referred to a court of competent jurisdiction in Denton County, Texas. 14. EXHIBITS. Attached hereto, and referred to elsewhere in this Agreement are the following Exhibits, which are hereby incorporated by reference. Exhibit A Agency Workload and Cost Statistics Exhibit B Agency Payment Worksheet Exhibit C TEXAS LAW ENFORCEMENT TELECOMMUNICATION SYSTEM (TLETS) NON - TWENTY-FOUR HOUR TERMINAL AGENCY AGREEMENT 15. MULTIPLE ORIGINALS. It is understood and agreed that this Agreement may be executed in a number of identical counterparts, each of which shall be deemed an original for all purposes. 16. NOTICES. All notices, demands or other writings may be delivered by either party by U.S. First Class Mail or by other reliable courier to the parties at the following addresses: County: 1 Denton County Judge Denton County Commissioners Court 110 West Hickory, Room #207 Denton, Texas 76201 2 Denton County Sheriff Denton County Sheriff’s Office 127 N. Woodrow Lane Denton, Texas 76205 3 Assistant District Attorney Denton County Criminal District Attorney’s Office 127 N. Woodrow Lane Denton, Texas 76205 Name of Agency: Contact Person Address City, State, Zip Telephone Town Council 107 of 205 Meeting Date: February 7, 2011 Interlocal Cooperation Agreement for Shared Governance Communications & Dispatch Services System 2010-11 Page 5 17. SEVERABILITY. The validity of this Agreement and/or any of its terms or provisions, as well as the rights and duties of the parties hereto, shall be governed by the laws of the State of Texas. Further, this Agreement shall be preformed and all compensation payable in Denton County, Texas. In the event that any portion of this Agreement shall be found to be contrary to law, it is the intent of the parties hereto that the remaining portions shall remain valid and in full force and effect to the extent possible. 18. THIRD PARTY. This Agreement is made for the express purpose of providing communications and dispatch services, which both parties recognize to be a governmental function. Except as provided in this Agreement, neither party assumes any liability beyond that provided by law. This Agreement is not intended to create any liability for the benefit of third parties. 19. VENUE. This agreement will be governed and construed according to the laws of the State of Texas. This agreement shall be performed in Denton County, Texas. 20. WAIVER. The failure of County or Agency to insist upon the performance of any term or provision of this Agreement or to exercise or enforce any right herein conferred, or the waiver of a breach of any provision of this Agreement by either party, shall not be construed as a waiver or relinquishment to any extent of either party’s right to assert or rely upon any such term or right, or future breach of such provision, on any future occasion. 21. AUTHORIZED OFFICIALS. Each party has the full power and authority to enter into and perform this Agreement. The persons executing this Agreement represent they have been properly authorized to sign on behalf of their governmental entity. 22. CURRENT FUNDS. All payments made by Agency to County pursuant to this Agreement shall be from current revenues available to Agency. 23. DISPATCH & COMMUNICATION RECORDS. The parties acknowledge that the Denton County Sheriff’s Office may release dispatch and communication records of Agency pursuant to the Texas Public Information Act until such a time that the parties agree to transfer such responsibility to Agency. Town Council 108 of 205 Meeting Date: February 7, 2011 Interlocal Cooperation Agreement for Shared Governance Communications & Dispatch Services System 2010-11 Page 6 DENTON COUNTY, TEXAS AGENCY ___________________________________ ______________________________________ Signature Mary Horn, County Judge Denton County Commissioners Court 110 West Hickory, Room #207 Denton, Texas 76201 (940)349-2820 EXECUTED duplicate originals on this Date:________________________ EXECUTED duplicate originals on this Date:___________________________ Approved as to content: _____________________________ Denton County Sheriff’s Office Approved as to content: _____________________________ Agency Approved as to form: _____________________________ Assistant District Attorney Denton County Criminal District Attorney’s Office Approved as to form: _______________________________ Attorney for Agency Town Council 109 of 205 Meeting Date: February 7, 2011 FY2011 Budget $2,237,183.00 1/2 Budget Amount $1,118,591.50 Agency % Workload * Cost by Workload ARGYLE PD 3.893% $43,549 AUBREY PD 1.769% $19,786 BARTONVILLE PD 0.300% $3,352 CORINTH PD 10.960% $122,597 DOUBLE OAK PD 1.384% $15,477 HICKORY CREEK PD 5.378% $60,156 JUSTIN PD 1.066% $11,924 KRUGERVILLE PD 0.268% $3,002 KRUM PD 2.352% $26,310 LITTLE ELM PD 8.506% $95,148 NORTHLAKE PD 4.061% $45,431 OAK POINT PD 1.903% $21,289 PILOT POINT PD 2.124% $23,762 PONDER PD 0.353% $3,945 SANGER PD 3.355% $37,532 TROPHY CLUB PD 4.851% $54,258 ARGYLE FD 0.739% $8,265 AUBREY FD 1.234% $13,799 DOUBLE OAK FD 0.127% $1,421 JUSTIN FD 0.477% $5,341 KRUM FD 0.612% $6,842 LAKE CITIES FD 1.900% $21,253 LITTLE ELM FD 1.527% $17,085 OAK POINT FD 0.205% $2,289 PILOT POINT FD 0.706% $7,900 PONDER FD 0.206% $2,300 SANGER FD 0.878% $9,819 TROPHY CLUB FD 0.388% $4,338 SHERIFF'S OFC * 39.773% $1,563,487 Totals 100.000% $2,251,657 Town Council 110 of 205 Meeting Date: February 7, 2011 2010-11 Budget Year AGENCY PAYMENT WORKSHEET Agency: Payment Contact Person: Phone Number: Address: City, State, Zip AGENCY TOTAL AMOUNT DUE $ Agency Should Include this Worksheet with Each Payment Sent to Denton County. Make checks payable to: Denton County Mail payments to: Communications Agreement Payments Denton County Auditor 401 W. Hickory, Suite 423 Denton, Texas 76201-9026 1 One Annual Payment (100%) 2 Two Payments (50%) 3 Four Payments (25%) 4 Twelve Monthly Payments 5 Other Payment Option Payment Plan Options Agency MUST Select One Payment Option Other Payment Information/Details: (expected dates of payments, amounts, etc.) Agency Payment Details Agreed to by: Agency Payment Details Agreed to by: Denton County Sheriff’s Office Agency: __________________________________ __________________________________ Denton County Sheriff’s Office __________________________________ __________________________________ Printed Name Printed Name of Agency Representative Town Council 111 of 205 Meeting Date: February 7, 2011 TEXAS LAW ENFORCEMENT TELECOMMUNICATION SYSTEM (TLETS) NON - TWENTY-FOUR HOUR TERMINAL AGENCY AGREEMENT 2010-11 Twenty-Four Hour Terminal Agency DENTON COUNTY SHERIFF’S OFFICE Non Twenty-Four Hour Terminal Agency This document constitutes an agreement between the following parties: The Twenty-Four Hour Terminal Agency agrees to make entries into the Texas Crime Information Center (TCIC) and the National Crime Information Center (NCIC) computers for the Non Twenty-Four Hour Terminal Agency. All records must be entered with the Twenty-Four Hour Agency’s ORI, and all case reports and original warrants must be held at the Twenty-Four Hour Agency for hit confirmation purposes. The Non Twenty-Four Hour Agency agrees to abide by all laws of the United States and the State of Texas and all present or hereafter approved rules, policies and procedures of TLETS, NLETS, TCIC, NCIC and any other system now or in the future associated with TLETS concerning the collection, storage, processing, retrieval, dissemination and exchange of information for criminal justice purposes. The Twenty-Four Hour Agency reserves the right to suspend service to the Non Twenty-Four Hour Agency which may include canceling of records entered for the Non Twenty-Four Hour Agency when applicable policies are violated. The Twenty-Four Hour Agency may reinstate service following such instances upon receipt of satisfactory assurances that such violations have been corrected. In order to comply with NCIC policies established by the NCIC Advisory Policy Board, the Non Twenty- Four Hour Agency agrees to maintain accurate records of all TCIC/NCIC entries made through the Twenty-Four Hour Agency and to immediately notify the Twenty-Four Hour Agency of any changes in the status of those reports to include the need for cancellation, addition, deletion or modification of information. The Twenty-Four Hour Agency agrees to enter, update and remove all records for the Non Twenty-Four Hour Agency on a timely basis, as defined by NCIC. In order to comply with NCIC Validation requirements, the Non Twenty-Four Hour Agency agrees to perform all validation procedures as required by NCIC on all records entered through the Twenty-Four Hour Agency. Either the Twenty-Four Hour Agency or the Non Twenty-Four Hour Agency may, upon thirty days written notice, discontinue this agreement. To the extent allowed by the laws of the State of Texas, the Non Twenty-Four Hour Agency agrees to indemnify and save harmless the Twenty-Four Hour Agency as well as the DPS, its Director and employees from and against all claims, demands, actions and suits, including but not limited to any liability for damages by reason of or arising out of any false arrests or imprisonment or any cause of the Non Twenty-Four Hour Agency or its employees in the exercise of the enjoyment of this Agreement. In witness whereof, the parties hereto caused this agreement to be executed by the proper officers and officials. DENTON COUNTY SHERIFF’S OFFICE AGENCY By: Benny Parkey By: Title: Denton County Sheriff Title: Date: ________________________________ Date: Town Council 112 of 205 Meeting Date: February 7, 2011 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12011-56-T Name: Status:Type:Agenda Item Regular Session File created:In control:1/31/2011 Town Council On agenda:Final action:2/7/2011 Title:Consider and take appropriate action regarding a Resolution approving the execution of a Participation Agreement between the Town and the Standing Steering Committee comprised of cities served by Oncor Electric Delivery Company; Designating the Town Manager as the Representative for the Town; Authorizing the Town Manager to execute the Participation Agreement; and providing an effective date. Attachments:RES 2011-02 OCSC Participation and Agreement.pdf Action ByDate Action ResultVer. Title Consider and take appropriate action regarding a Resolution approving the execution of a Participation Agreement between the Town and the Standing Steering Committee comprised of cities served by Oncor Electric Delivery Company; Designating the Town Manager as the Representative for the Town; Authorizing the Town Manager to execute the Participation Agreement; and providing an effective date. Goal Goal # 3: Strong Partnerships and Community Involvement Create a positive regional identity Foster a well informed community Enhance citizen volunteer opportunities Expand and promote recreational / active live style opportunities for all ages Forge collaborative relationships with other governmental and public entities Town Council 113 of 205 Meeting Date: February 7, 2011 TOWN OF TROPHY CLUB, TEXAS RESOLUTION NO. 2011-02 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS APPROVING THE EXECUTION OF THE PARTICIPATION AGREEMENT BETWEEN THE TOWN AND THE STANDING STEERING COMMITTEE COMPRISED OF CITIES SERVED BY ONCOR ELECTRIC DELIVERY COMPANY; DESIGNATING THE TOWN MANAGER AS THE REPRESENTATIVE FOR THE TOWN; AUTHORIZING THE PAYMENT OF THE PARTICPATION FEE; AUTHORIZING THE TOWN MANAGER TO EXECUTE NECESSARY DOCUMENTS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Town of Trophy Club has considered the terms of a Standing Steering Committee Participation Agreement which would allow the Town to participate as a member of that Committee; and WHEREAS, the Committee is comprised of cities in the service area of Oncor Electric Delivery Company; and WHEREAS, the Town has determined it to serve the best interests of its residents to become a member of the Standing Steering Committee in order to work collectively as part of the Committee to assure that electric rates charged are just and reasonable. NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS : Section 1. That the Town Manager or his designee is hereby authorized to execute the Standing Steering Committee Participation Agreement, a substantial copy of which is attached hereto as Attachment 1. Section 2. That Michael T. Slye, Town Manager, 100 Municipal Drive, Trophy Club, Texas 76262 is designated as the Town of Trophy Club’s Steering Committee representative to receive notices and carry out the responsibilities set forth in Attachment 1. Section 3. That the payment of the initial participation of 10¢ per capita, according to Town’s population shown in the TML Directory of Texas City Officials, is hereby authorized. Section 4. Directing that a certified copy of this Resolution and the approved participation fee be sent to: Jay Doegey City of Arlington Post Office Box 231 Arlington, Texas 76004-0231 Section 5. This Resolution shall become effective upon the date of its passage. Town Council 114 of 205 Meeting Date: February 7, 2011 PRESENTED AND PASSED on this the 7th day of February, 2011, by a vote of ______ ayes and ______ nays at a regular meeting of the Town Council of the Town of Trophy Club, Texas. ______________________________ Mayor , Connie White Town of Trophy Club, Texas ATTEST: ___________________________________ Shannon DePrater, Town Secretary Town of Trophy Club, Texas [Seal] APPROVED AS TO FORM: ____________________________________ Patricia A. Adams, Town Attorney Town of Trophy Club, Texas Town Council 115 of 205 Meeting Date: February 7, 2011 ATTACHMENT 1 THE STATE OF TEXAS § STANDING STEERING COMMITTEE COUNTY OF TARRANT § PARTICIPATION AGREEMENT THIS Agreement is made and entered into on this the 7th day of February, 2011 by, between and among the TOWN OF TROPHY CLUB, TEXAS ("TOWN") and member cities of the STANDING STEERING COMMITTEE ("SSC"). This Agreement is authorized by the Texas Interlocal Cooperation Act (V.T.C.A. Texas Government Code, Chapter 791), and other authorities. W I T N E S S E T H: WHEREAS, the cities in the service area of Oncor Electric Delivery Company (formerly TXU Electric Delivery Company and Texas Utilities Electric Company) have worked together collectively in a coalition to participate in the regulatory process to assure electric rates charged were just and reasonable; and WHEREAS, the nature of electric utility regulation is undergoing substantial change as a result of state and federal legislation; and WHEREAS, there remains a need for cities to cooperate to assure the public interest is protected and electric and other utility rates are just and reasonable; and WHEREAS, regulatory changes now require quick response in order to have meaningful input into the rate setting process; and WHEREAS, it is necessary to provide adequate resources to enable cities to act quickly, decisively, and jointly on electric utility regulatory developments; NOW THEREFORE, In consideration of the premises, agreements, covenants and promises set forth herein, it is agreed as follows: 1. Standing Steering Committee Membership and Executive Committee The TOWN and the member cities hereby form the Standing Steering Committee ("SSC"). Each member city shall, by action of its governing body, approve its membership in the SSC and designate its representative to receive notices and participate in and vote at SSC meetings. The SSC shall be composed of all cities paying the current nonrefundable membership fee. The membership fee shall be established from time to time by the Executive Committee. The fee for the initial period (approximately one year) is 10¢ per capita, according to the TOWN's population listed in the most recent Texas Municipal League Directory of Texas City Officials. The members shall elect an Executive Committee consisting of no more than twenty (20) persons which shall function as the Board of Directors. The Executive Committee shall at least include a representative from all member cities with a population greater than 100,000, according to the most recent Texas Municipal League Directory of Texas City Town Council 116 of 205 Meeting Date: February 7, 2011 Officials. The remainder of the representatives shall be selected based upon diversity of geographic location and city population size. Each city on the SSC and each city on the Executive Committee shall have one vote, respectively. Meetings of the Executive Committee shall be open to each city on the SSC whether or not it has a representative on the Executive Committee. 2. Powers of the Executive Committee The TOWN and the member cities delegate to the Executive Committee the power to intervene on behalf of SSC member cities in electric projects, rulemaking, rate case, and related dockets and appeals thereof, represent the interests of cities in utility matters before state and federal legislative bodies and to pay for such activities. A member city may subsequently request and cause its party status to be withdrawn from such activities. The Executive Committee shall fix the amount of the membership fee from time to time. 3. Election of Officers The Executive Committee shall elect a chair and any co-chairs as it deems necessary who shall serve at the pleasure of the Executive Committee. The Executive Committee shall also elect a secretary/treasurer. 4. Powers of the Officers Each officer elected shall serve at the pleasure of the Executive Committee up to a term of four (4) years. The Executive Committee shall elect or re-elect officers at least every four (4) years. Unless terminated by the Executive Committee or the respective city governing body, the officer shall perform the duties of office until a replacement has been elected. Meetings of the Executive Committee and SSC shall be upon call of the chair or two (2) members of the Executive Committee. The Executive Committee shall meet at least annually. The chair is authorized by action of the Executive Committee to engage consultants and attorneys and to pay for such services. 5. Termination of Membership A city may terminate its membership by action of its governing body, or if said city fails to pay its membership fee in full within one-hundred eighty (180) days after notification of fee due. A city is considered notified on the day written notice is sent to its last designated representative on file with the secretary/treasurer. 6. Money Held in Trust The officers shall hold and manage all money collected in trust for the benefit of the member cities collectively. Officers may establish prudent fund accounts that accumulate funding for activities and to pay authorized expenses. Officers shall serve without pay, but may be reimbursed reasonable out-of-pocket expenses as approved by the Executive Committee. TOWN may request and receive a statement of SSC revenues and expenses each year. Town Council 117 of 205 Meeting Date: February 7, 2011 7. Payment for Performance of Governmental Functions and Services Made from Current Revenues By entering into this Agreement, TOWN affirms that it is paying for the performance of governmental functions or services from current revenues available. The payments made under this agreement fairly and adequately compensates the SSC for the services or functions performed under the contract. 8. Legal Construction In case any one or more of the terms, provisions, phrases or clauses contained in this agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall be construed as if such invalid, illegal or unenforceable portion had never been contained herein. 9. Entire Agreement This contract embodies the complete agreement of the parties hereto superseding all oral or written previous and contemporary agreements between the parties relating to matters herein and, except as otherwise provided herein, cannot be modified without written agreement of the parties. 10. No Other Obligations By entering into this Agreement, the parties do not create any obligations, express or implied, other than those set forth herein, and this Agreement shall not create any rights in parties not signatories hereto. 11. Immunity It is expressly understood and agreed that in the execution of this Agreement, neither TOWN nor SSC waives, nor shall be deemed to waive, any immunity or defense that would otherwise be available to each against claims arising in the exercise of governmental powers and functions. 12. Authority The undersigned officers and/or agents are properly authorized to execute this Agreement on behalf of the parties hereto, and each hereby certifies to the other that any necessary resolutions extending such authority have been duly passed and are now in full force and effect. IN WITNESS WHEREOF, the parties have executed this Agreement on the dates indicated above. Town Council 118 of 205 Meeting Date: February 7, 2011 TOWN OF TROPHY CLUB, TEXAS STANDING STEERING COMMITTEE BY:_________________________ BY:___________________________ Michael T. Slye, Town Manager Name/Title Date: ______________________ Date: ______________________ ATTEST: ___________________________________ Shannon DePrater, Town Secretary Town of Trophy Club, Texas [Seal] APPROVED AS TO FORM: ____________________________________ Patricia A. Adams, Town Attorney Town of Trophy Club, Texas Town Council 119 of 205 Meeting Date: February 7, 2011 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12011-57-T Name: Status:Type:Agenda Item Regular Session File created:In control:1/31/2011 Town Council On agenda:Final action:2/7/2011 Title:Consider and take appropriate action regarding a Resolution suspending the February 14, 2011 effective date of Oncor Electric Delivery Company's requested rate change to permit the Town to study the request and establish reasonable rates; approving cooperation with the Steering Committee of Cities served by Oncor; retaining legal and consulting services to negotiate with Oncor; and providing an effective date. Attachments:RES 2011-03 Suspension Resolution.pdf 2011 Oncor Rate Case - Suspension Memo.pdf Oncor Rate Case Summary Handout.pdf Suspension Resolution Staff Report.pdf Action ByDate Action ResultVer. Title Consider and take appropriate action regarding a Resolution suspending the February 14, 2011 effective date of Oncor Electric Delivery Company's requested rate change to permit the Town to study the request and establish reasonable rates; approving cooperation with the Steering Committee of Cities served by Oncor; retaining legal and consulting services to negotiate with Oncor; and providing an effective date. Goals Goal # 3: Strong Partnerships and Community Involvement Create a positive regional identity Foster a well informed community Enhance citizen volunteer opportunities Expand and promote recreational / active live style opportunities for all ages Forge collaborative relationships with other governmental and public entities Goal #5: Financial and Operational Stewardship Hire, develop, and retain quality staff Implement strong financial management standards Improve effectiveness and efficiency of operational processes Maintain / Improve infrastructure and assets Provide cost-effective services Deliver responsible customer service Town Council 120 of 205 Meeting Date: February 7, 2011 TOWN OF TROPHY CLUB, TEXAS RESOLUTION NO. 2011-03 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS SUSPENDING THE FEBRUARY 14, 2011, EFFECTIVE DATE OF ONCOR ELECTRIC DELIVERY COMPANY’S REQUESTED RATE CHANGE TO PERMIT THE TOWN TIME TO STUDY THE REQUEST AND TO ESTABLISH REASONABLE RATES; APPROVING COOPERATION WITH THE STEERING COMMITTEE OF CITIES SERVED BY ONCOR; HIRING LEGAL AND CONSULTING SERVICES AND TO NEGOTIATE WITH THE COMPANY AND DIRECT ANY NECESSARY LITIGATION AND APPEALS; 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 FOR THE STEERING COMMITTEE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on or about January 7, 2011, Oncor Electric Delivery Company (“Oncor” or “Company”), pursuant to PURA §§ 33.001 and 36.001 filed with the Town of Trophy Club a Statement of Intent to increase electric transmission and distribution rates in all municipalities exercising original jurisdiction within its service area effective February 14, 2011; and WHEREAS, the Steering Committee of Cities Served by Oncor (“Steering Committee”) and is a coalition of 146 similarly situated city members and other city participants conducting a review of the Company’s application and to hire and direct legal counsel and consultants and to prepare a common response and to negotiate with the Company prior to setting reasonable rates and direct any necessary litigation; and WHEREAS, PURA § 36.108 grants local regulatory authorities the right to suspend the effective date of proposed rate changes for ninety (90) days after the date the rate change would otherwise be effective; and WHEREAS, PURA § 33.023 provides that costs incurred by Cities in ratemaking activities are to be reimbursed by the regulated utility. NOW THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: Section 1. That the February 14, 2011 effective date of the rate request submitted by Oncor on or about January 7, 2011, be suspended for the maximum period allowed by law to permit adequate time to review the proposed changes and to establish reasonable rates. Section 2. That the Town is authorized to participate in the Steering Committee of Cities Served by Oncor and to hire and direct legal counsel and consultants, Town Council 121 of 205 Meeting Date: February 7, 2011 negotiate with the Company, make recommendations to the Town regarding reasonable rates and to direct any necessary administrative proceedings or court litigation associated with an appeal of a rate ordinance and the rate case filed with the Town or Public Utility Commission. Section 3. That subject to the right to terminate employment at any time, the Town of Trophy Club hereby authorizes the hiring of the law firm of Lloyd Gosselink and consultants to represent the Town in all matters associated with the Oncor’s application to increase rates and appeals thereof. Section 4. That intervention in PUC Docket No. 38929 be authorized. Section 5. That the Town’s reasonable rate case expenses shall be reimbursed by Oncor on a monthly basis. Section 6. That it is hereby officially found and determined that the meeting at which this Resolution is passed is open to the public as required by law and the public notice of the time, place, and purpose of said meeting was given as required. Section 7. That a copy of this Resolution shall be sent to Oncor, care of Autry Warren, Oncor Electric Delivery Company, LLC, 1601 Bryan St., 23rd Floor, Dallas, Texas 75201 and to Geoffrey Gay, General Counsel to the Steering Committee, at Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas 78767- 1725. Section 8. That this Resolution shall become effective upon the date of its passage. PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, this the 7th day of February, 2011. ______________________________ Mayor Connie White Town of Trophy Club, Texas ATTEST: ______________________________ Shannon DePrater, Town Secretary [Seal] Town of Trophy Club, Texas APPROVED AS TO FORM: ______________________________ Patricia A. Adams, Town Attorney Town of Trophy Club, Texas Town Council 122 of 205 Meeting Date: February 7, 2011 816 Congress Avenue, Suite 1900 Austin, Texas 78701 Telephone: (512) 322-5800 Facsimile: (512) 472-0532 www.lglawfirm.com Mr. Brocato’s Direct Line: (512) 322-5857 Email: tbrocato@lglawfirm.com M E M O R A N D U M TO: Steering Committee of Cities Served by Oncor Members FROM: Geoffrey Gay Thomas Brocato DATE: January 10, 2011 RE: Oncor Electric Delivery Company's Statement of Intent to Increase Rates Suspension Packet ACTION REQUIRED BY CITIES WITH ORIGINAL JURISDICTION TO SUSPEND THE EFFECTIVE DATE BY FEBRUARY 14, 2011 On January 7, 2011 Oncor is filed a Statement of Intent to Increase Rates with all cities in its service area that retain original jurisdiction. The Company is seeking a $353 million rate increase. If approved, the $353 million increase would raise rates for the average residential customer by $60 per year. For those cities with original jurisdiction, the rate increase requested by Oncor will become effective on February 14, 2011, unless the city takes action to suspend the effective date. The statute permits cities to extend the effective date by up to 90 days in order to study the filing. The city must take action to suspend the effective date by February 14, 2011. If your city does not have a regular council meeting scheduled before February 14th or is otherwise unable to take action on the suspension resolution by February 14th, please contact me as soon as possible. Attached to this memo is a model suspension resolution and staff report. In the past, Oncor local managers have provided cities with a model denial resolution and may recommend that the city immediately deny the rate request. If this occurs, we do not recommend that you deny the request at this time. Suspending the effective date allows cities more time to review the application and decide on the final action, including settlement or denial of Oncor's requested rate increase. For those cities that have ceded their jurisdiction to the Public Utility Commission, we have provided a resolution that your city can use to participate with the Steering Committee in the proceeding at the Commission. The Steering Committee of Cities Served by Oncor will hold a conference call of all Steering Committee members later this month to discuss Oncor's rate request. During the call there will also be an opportunity for Steering Committee members to discuss strategy with Steering Committee consultants and attorneys. If you have any questions, please feel free to contact Geoffrey (512/322-5875, ggay@lglawfirm.com) or Thomas (512/322-5857, tbrocato@lglawfirm.com). Town Council 123 of 205 Meeting Date: February 7, 2011 Town Council 1 2 4 o f 2 0 5 M e e t i n g D a t e : F e b r u a r y 7 , 2 0 1 1 Town Council 1 2 5 o f 2 0 5 M e e t i n g D a t e : F e b r u a r y 7 , 2 0 1 1 Town Council 1 2 6 o f 2 0 5 M e e t i n g D a t e : F e b r u a r y 7 , 2 0 1 1 Town Council 1 2 7 o f 2 0 5 M e e t i n g D a t e : F e b r u a r y 7 , 2 0 1 1 Town Council 1 2 8 o f 2 0 5 M e e t i n g D a t e : F e b r u a r y 7 , 2 0 1 1 Town Council 1 2 9 o f 2 0 5 M e e t i n g D a t e : F e b r u a r y 7 , 2 0 1 1 Town Council 1 3 0 o f 2 0 5 M e e t i n g D a t e : F e b r u a r y 7 , 2 0 1 1 Town Council 1 3 1 o f 2 0 5 M e e t i n g D a t e : F e b r u a r y 7 , 2 0 1 1 Town Council 1 3 2 o f 2 0 5 M e e t i n g D a t e : F e b r u a r y 7 , 2 0 1 1 MODEL STAFF REPORT ***ACTION MUST BE TAKEN BY CITIES WITH ORIGINAL JURISDICTION TO SUSPEND THE EFFECTIVE DATE ON OR BEFORE FEBRUARY 14, 2011*** PURPOSE Oncor Electric Delivery Company ("Oncor" or "the Company") filed an application on or about January 7, 2011 with cities retaining original jurisdiction seeking to increase system-wide transmission and distribution rates by $353 million. The Company asks the City to approve a 14.6% increase in residential rates, a 15.5% increase in commercial rates, and a 25.9% increase in street lighting rates. According to Oncor, annual rates would increase by approximately $60 for an average residential customer. The resolution suspends the February 14, 2011 effective date of the Company's rate increase for the maximum period permitted by law to allow the City, working in conjunction with the Steering Committee of Cities Served by Oncor, to evaluate the filing, determine whether the filing complies with law, and if lawful, to determine what further strategy, including settlement, to pursue. The law provides that a rate request made by an electric utility cannot become effective until at least 35 days following the filing of the application to change rates. The law permits the City to suspend the rate change for 90 days after the date the rate change would otherwise be effective. If the City fails to take some action regarding the filing before the effective date, Oncor's rate request is deemed administratively approved. DISCUSSION The Steering Committee of Cities Served by Oncor ("Steering Committee") is a member of a 146-city coalition. The Steering Committee has been in existence since the late 1980s. It took on a formal structure in the early 1990s when cities served by the former TXU gave up their statutory right to rate case expense reimbursement in exchange for higher franchise fee payments. Empowered by city resolutions and funded by per capita assessments, the Steering Committee has been the primary public interest advocate before the Public Utility Commission, the Courts, and the Legislature on electric utility regulation matters for the last 20 years. The current filing comes 15 months following the implementation of Oncor’s last rate increase. That case is currently on appeal. Explanation of "Be It Resolved" Paragraphs: Section 1. The City is authorized to suspend the rate change for 90 days after the date that the rate change would otherwise be effective for any legitimate purpose. Time to study and investigate the application is always a legitimate purpose. Please note that the resolution refers to the suspension period as “the maximum period allowed by law” rather than ending by a specific date. This is because the Company controls the effective date and can extend the deadline for final city action to increase the time that the City retains jurisdiction if necessary to Town Council 133 of 205 Meeting Date: February 7, 2011 reach settlement on the case. If the suspension period is not otherwise extended by the Company, the City must take final action on Oncor's request to raise rates by February 14, 2011. Sections 2 and 3. This provision authorizes the Steering Committee to act on behalf of the City at the local level in settlement discussions, in preparation of a rate ordinance, on appeal of the rate ordinance to the PUC, and on appeal to the Courts. Negotiating clout and efficiency are enhanced by the City cooperating with the Steering Committee in a common review and common purpose. Additionally, rate case expenses are minimized when the Steering Committee hires one set of attorneys and experts who work under the guidance and control of the Executive Committee of the Steering Committee. Section 4. This provision authorizes intervention with the Steering Committee in PUC Docket No. 38929. Section 5. The Company will reimburse the Steering Committee for its reasonable rate case expenses. Legal counsel and consultants approved by the Executive Committee of the Steering Committee will submit monthly invoices that will be forwarded to Oncor for reimbursement. No individual city incurs liability for payment of rate case expenses by adopting a suspension resolution. Section 6. This section merely recites that the resolution was passed at a meeting that was open to the public and that the consideration of the Resolution was properly noticed. Section 8. This section provides that both Oncor and Steering Committee counsel will be notified of the City’s action by sending a copy of the approved and signed resolution to certain designated individuals. Town Council 134 of 205 Meeting Date: February 7, 2011 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12011-59-T Name: Status:Type:Agenda Item Regular Session File created:In control:1/31/2011 Town Council On agenda:Final action:2/7/2011 Title:Consider and take appropriate action regarding the regularly scheduled Town Council meeting of Monday, February 21, 2011. Attachments: Action ByDate Action ResultVer. Title Consider and take appropriate action regarding the regularly scheduled Town Council meeting of Monday, February 21, 2011. Town Council 135 of 205 Meeting Date: February 7, 2011 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12011-61-T Name: Status:Type:Agenda Item Regular Session File created:In control:1/31/2011 Town Council On agenda:Final action:2/7/2011 Title:Town Manager Slye's update regarding the following; discussion of the same. - Storm Report - Council Retreat Reschedule Update - Local Election Filing Period Update - Drainage Study Update Attachments: Action ByDate Action ResultVer. Title Town Manager Slye's update regarding the following; discussion of the same. - Storm Report - Council Retreat Reschedule Update - Local Election Filing Period Update - Drainage Study Update Town Council 136 of 205 Meeting Date: February 7, 2011 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12011-62-T Name: Status:Type:Agenda Item Regular Session File created:In control:1/31/2011 Town Council On agenda:Final action:2/7/2011 Title:Mayor and Council Updates regarding training opportunities, educational sessions, and regional meetings; discussion of same. Attachments: Action ByDate Action ResultVer. Title Mayor and Council Updates regarding training opportunities, educational sessions, and regional meetings; discussion of same. Meetings/Events Attended by Council: - Economic Outlook with Bud Weinstein Webinar - Final Meeting of Superbowl Host Committee - Metroport Cities Partnership - Precinct Four Task Force Meeting - Annual Golden Key Awards Banquet - Lunch with the President (Baylor Grapevine) - Council Retreat Town Council 137 of 205 Meeting Date: February 7, 2011 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12011-63-T Name: Status:Type:Agenda Item Regular Session File created:In control:1/31/2011 Town Council On agenda:Final action:2/7/2011 Title:Receive Mayor Pro Tem Rose's liaison report regarding the January 18, 2011 TCMUD No. 1 Meeting; discussion of same. - Water Conservation - Future Water Storage - Rate Order Modification Attachments: Action ByDate Action ResultVer. Title Receive Mayor Pro Tem Rose's liaison report regarding the January 18, 2011 TCMUD No. 1 Meeting; discussion of same. - Water Conservation - Future Water Storage - Rate Order Modification Goal Goal # 3: Strong Partnerships and Community Involvement Create a positive regional identity Foster a well informed community Enhance citizen volunteer opportunities Expand and promote recreational / active live style opportunities for all ages Forge collaborative relationships with other governmental and public entities Town Council 138 of 205 Meeting Date: February 7, 2011 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12011-64-T Name: Status:Type:Agenda Item Regular Session File created:In control:1/31/2011 Town Council On agenda:Final action:2/7/2011 Title:Items for Future Agendas. Attachments:Future Agenda Items List.pdf Action ByDate Action ResultVer. Title Items for Future Agendas. Town Council 139 of 205 Meeting Date: February 7, 2011 Town of Trophy Club Town Council Future Agenda Items List 1. Consider and take appropriate action regarding an Ordinance amending Chapter 3 of the Code of Ordinances entitled "Buildings and Construction" of Article XV, entitled "Swimming Pools. (Rose, 2/1/10) 2. Consider and take appropriate action regarding procurement policies and their alignment with State statutes. (Rose, 2/1/10) 3. Consider and take appropriate action regarding placing policies and procedures on the Town web site. (Rose, 2/1/10) 4. Consider and take appropriate action regarding noise regulations for Oil and Gas Well Drilling and Production (Rose, 4/26/10) 5. Staff update regarding Marshall Branch Creek area located North of HWY114; discussion and action of the same. (Stotts, 6/21/10) 6. Staff update regarding the loop road and a report from the engineer firm hired by the County. (Stotts, 6/21/10) 7. Parks Board to provide a recommendation to the Council regarding fees for recreational amenities; Council discussion and action. (Rose, 9/27/10) 8. Presentation and 10-year plan from Dr. Walker on Trophy Club Park. (Stotts, 10/4/10) 9. Staff proposal regarding the amenity lakes, including associated costs to accept the amenity lakes from the developer. (Stotts, 10/4/10) 10. Consider and take appropriate action regarding communication plan (Cantrell, 11/15/2010) 11. Consider and take appropriate action regarding Planning & Zoning readiness if Local Option Election Petition is successful. (Cantrell, 1/3/11) Town Council 140 of 205 Meeting Date: February 7, 2011 Supplemental Information Town Council 141 of 205 Meeting Date: February 7, 2011 1 January 21, 2011 Number 3 REVERSE INTERGOVERNMENTAL AID: REVISITED Regular readers of the Legislative Update will recognize this article. It first ran in 2008, and the updated numbers show that cities are now paying even more to fund state programs. The State of Texas, unlike almost all other states, provides virtually no financial assistance to its cities. State aid, defined as a grant made by the state to cities from revenue generated by the state, is practically non-existent in Texas. Research conducted by numerous entities over many years has shown this to be true. The most recent study, released in 2008 by the National League of Cities, found that only in West Virginia is state aid to cities lower than it is in Texas. State aid flows readily in other states, particularly in populous states. For instance, it is not at all uncommon for states to share state gasoline tax revenue with cities or to split other sources of state general revenue with municipal governments. While city officials in Texas have seldom asked for state financial aid, they are increasingly aware of the numerous ways in which they are compelled to share city-generated revenue with the state in what can be described as a system of reverse intergovernmental aid. Of the numerous ways in which cities transfer revenue to the state, four stand out: 1. The state’s charge for administering the municipal sales tax. 2. Fees levied on cities by the Texas Commission on Environmental Quality. 3. “Local participation” in the cost of building and improving the state highway system. 4. State fees imposed on municipal court convictions. Town Council 142 of 205 Meeting Date: February 7, 2011 2 The State’s Charge for Administering the Municipal Sales Tax When a Texan purchases a product that is subject to the state and local sales tax, the merchant collects the entire tax due and remits it to the state comptroller. The comptroller, in turn, remits the local share back to the appropriate local government (city, metropolitan transit authority, county, and/or special district). For providing this service and for performing other administrative, enforcement, and reporting duties, the comptroller deducts two percent of the local share of the sales tax and deposits that amount in the state’s general revenue fund. The two-percent fee is high compared to the same fee in other states. Many states charge one percent or less; five states impose no charge at all. In Texas, the two-percent fee generates over $100 million annually, of which cities pay close to $80 million. In mid-2008, TML undertook an effort to determine how much the comptroller’s office spends annually to provide sales tax services to local governments. The comptroller’s office informed TML that “(t)here can be no separate accounting of what costs are ultimately attributable to local tax administration that would not be arbitrary and potentially misleading.” Although the comptroller can’t calculate the total cost of providing local sales tax administration, it is instructive to calculate the extent to which the revenue generated by the two-percent local government fee covers the comptroller’s total annual expenditures for all activities. The comptroller’s baseline budget is somewhere in the neighborhood of $220 million. Thus, the total local government fee of over $100 million is enough to cover around half of the entire agency’s total expenses. In an attempt to do what the comptroller’s office claims it cannot, the League has formed the TML Committee on Sales Tax to try to calculate – through various means – the state’s charge for administering the municipal sales tax as well as the cost to the comptroller’s office for collecting, reallocating, auditing, and enforcing the local sales tax share. Those numbers will be published when the committee’s work is complete. Texas Commission on Environmental Quality Fees According to its Web site, the mission of the Texas Commission on Environmental Quality is “to protect our state’s human and natural resources consistent with sustainable economic development,” and the agency’s goal is “clean air, clean water, and the safe management of waste.” One would think that this mission and set of goals would merit substantial funding from the state’s general revenue fund. That’s not the case. The TCEQ Web site reveals that the agency’s revenue comes from the following sources: State General Revenue 2.89% Federal Funds 9.27% Program Fees 86.38% Other Sources 1.46% Town Council 143 of 205 Meeting Date: February 7, 2011 3 Just who pays the “program fees” that constitute the lion’s share of TCEQ revenue? To a great extent, cities do. The agency imposes more than 40 different fees on cities; roughly 20 are related to water quality. The revenue from these fees is used to pay for the costs of regulating cities under either federal or state law or both. In other words, cities pay TCEQ to regulate them. Of all the fees, the two that have the most impact on cities are the consolidated water quality fee (CWQF), which is imposed on wastewater treatment facilities, and the public health service fee (PHSF), which is paid by suppliers of public drinking water. The recent funding shortfall for state agencies meant that the TCEQ’s water program fees were insufficient to run the programs starting in the current biennium. The agency could either get more funding from the state’s general fund via the state legislature, or increase program fees. The agency chose to increase program fees, and significantly increased both the CWQF and the PHSF. The annual income for the TCEQ from these two fees alone is now expected to be: CWQF $21.7 million PHSF $19.9 million The PHSF in particular was substantially increased. With the fee increase, the total annual income increased by over $15 million. Other fees paid by cities (the water quality permit application fee, stormwater permit fees, the solid waste disposal fee, and others) add considerable amounts to state coffers. In fact, cities (through the payment of fees) generate more revenue for TCEQ than does the state’s general fund. Some might say that the fee-dependent financing structure used by TCEQ is fair since cities receive a service for each fee they pay. However, when cities impose fees-for-service on other levels of government, the legislature often acts to prohibit or limit those fees. For example, when the legislature prohibited the imposition of stormwater fees on public institutions of higher education, some lawmakers argued that it’s unfair for one level of government to impose a fee on another level. And when the legislature prohibited the imposition of municipal impact fees on school districts (unless a district agrees to pay the fee), the legislature’s bill analysis stated that… …impact fees place an undue burden on districts…payment of impact fees by school districts to cities amounts to a needless transfer of money among public entities and constitutes a de facto tax on school districts. This statement is particularly ironic given that cities pay TCEQ fees and are not exempt from the state's 20-cent-per-gallon gasoline tax. “Public entities” (cities) are paying a state tax each time a police car or fire truck refuels. Town Council 144 of 205 Meeting Date: February 7, 2011 4 Local Participation in State Highway Projects The best way to describe “local participation” is to quote from a state document titled “Background and Need for Partnering.” That document makes the case that the Texas Department of Transportation (TxDOT) faces a funding shortfall because growth in population, vehicle-miles per capita, and total vehicle miles have grown at faster rates than growth in the highway system and growth in revenue available for highway projects. Those trends, according to the report, will continue. To help address this dilemma… TxDOT continues to seek additional ways to fund the state transportation program. For years, TxDOT has partnered with local public agencies to make transportation improvements on state highways. This local participation has come in many forms, including provision of right-of-way, financial contributions, maintenance agreements and other forms… Cooperative partnering between state and local agencies will be needed to meet future transportation needs. TxDOT will depend on local and regional leaders to provide both leadership and commitment to help carry projects forward…TxDOT is currently suggesting to local agencies that they consider increasing their participation in TxDOT projects in order to expedite scheduling of locally desired projects. (Emphasis added.) In short, “local participation” may become a “pay-to-play” system imposed by TxDOT on local governments that wish to see highway projects in their area move forward. How much do cities annually contribute in local participation? In 2010, cities pitched in more than $130 million in cash and much more in right-of-way donations and in-kind services. That’s a 44-percent increase since 2007. In addition, the state gasoline tax paid by cities accounts for many more millions of dollars paid by cities for the state transportation system. Here’s the bottom line. In most states, the state government makes grants to cities to help those cities build and maintain city streets. In Texas, city governments transfer municipal revenue to the state to help pay for the state highway system. State Fees on Municipal Court Fines Municipal courts in Texas collect funds on behalf of the state for a wide variety of state programs. These state programs range from the Criminal Justice Planning Fund to the Crime Victims’ Compensation Fund. In most cases, the fees are imposed on persons convicted of any criminal offense. For these collection efforts, cities are generally allowed to keep some small amount of revenue as reimbursement for the costs incurred to collect the fees and remit them to the state. Many city officials contend that state court costs adversely impact municipal courts in two ways. First, the state’s court costs are complicated to administer. While cities can keep a small Town Council 145 of 205 Meeting Date: February 7, 2011 5 percentage of the costs as an administrative fee, that amount is not sufficient to reimburse the cities for the bookkeeping and administrative problems connected with this function. Second, when setting an appropriate fine for an offense, a judge must consider the fact that the defendant will also be paying state court costs. As a result, municipal fine revenue is often lower than it would otherwise be because the judge has considered the state court costs when setting a defendant’s total fine. Municipal court clerks also point out that the state requires that in the event of a partial payment, the state court costs must be paid first before the city can keep any of the fine. This means that cities must do all the work collecting fines but are not allowed to keep any money until the state court costs have been fully satisfied. In recent years, the number and amount of the state fees collected by municipal courts have grown rapidly. For example, on a typical traffic offense conviction, a municipal court defendant must currently pay $82 in state-imposed fees before any city fine is collected. The following chart is a comparison of the present situation with fees imposed just nine years ago. January 2002 January 2011 Crime Victim Compensation $15.00 $15.00 Judicial/Court $ 2.00 $ 2.00 Personnel Training Fugitive Apprehension Fund $ 5.00 $ 5.00 Consolidated Court Costs $17.00 $17.00 Juvenile Crime/Delinquency $ 0.50 $ 0.50 (Prairie View A&M) Correction Management $ 0.50 $ 0.50 Institute (Sam Houston State) State Traffic Fine -- $30.00 Jury Pay -- $ 4.00 State Judges’ Salaries -- $ 6.00 Indigent Defense -- $ 2.00 Total $40.00 $82.00 Town Council 146 of 205 Meeting Date: February 7, 2011 6 In many ways, municipal court collection of state fees is similar to the state’s collection of municipal sales tax. In each case, one level of government is processing a tax/fee levied by another level of government, is remitting it, and is keeping a fee for providing those services. While there are similarities, however, there are also substantial differences. For example, the state doesn’t really “collect” the municipal sales tax; it’s collected by the merchant. With regard to state fees on municipal court fines, however, a municipal court employee actually collects the fees and bears the brunt of any resulting fee-payer anger. Second, the state controls the level of the municipal sales tax, but cities certainly don’t control the level of state fees on municipal fines. So while cities can’t unilaterally raise the city sales tax without permission from the state, the state can (and frequently does) increase the amount of state fees that cities must collect and remit. How much state fee/fine revenue do municipal courts collect annually? For fiscal year 2010, the amount was just over $235 million. Conclusion What’s the grand total amount of reverse intergovernmental aid in Texas? After making various adjustments, the annual total is at least $250,000,000, just from these four sources of reverse intergovernmental aid. And why does this transfer of revenue from cities to the state matter? It matters because these transfers of resources result in either reductions in municipal services or increased local fees or taxes—most often the local property tax, which is the only general purpose municipal tax that a city council can raise or lower. Texas taxpayers remain concerned about property taxes. It is clear that some of the pressure on the property tax results from reverse intergovernmental aid, a system under which governments that must depend on the property tax (cities) transfer revenue to a level of government (the State of Texas) that has many revenue sources. It’s not hard to understand why some state legislators are tempted to turn to cities and ask them to generate revenue for the state. It’s much harder to understand why some of those same legislators have been trying for several years to limit the revenue-generating capacity of cities by placing caps on the municipal property tax. FIRST DRAFT OF STATE BUDGET WOULD HARM CITIES The reverse intergovernmental aid article in this issue explains that the State of Texas, unlike almost all other states, provides virtually no financial assistance to its cities. State aid to Texas cities, defined as a grant made by the state to cities from revenue generated by the state, is very Town Council 147 of 205 Meeting Date: February 7, 2011 7 rare indeed. Two ways in which the state does provide aid to cities are: (1) a sharing of the state’s sales tax on sporting goods for local parks funding; and (2) sharing a portion of the state’s mixed drink alcoholic beverage tax imposed on bars within the city limits (the revenue from which may be used for any municipal purpose). The Legislative Budget Board has released its proposed budget for 2012-2013. While there will be significant negotiations and changes to the proposal, several items would negatively affect cities. The proposed budget would slash local parks funding from $36 million to $868,000 for the biennium. It would also slash around $26 million from the city portion of the state’s mixed drink tax. Cities received around $130 million per year in previous state budgets. Of particular interest to larger cities, the proposed budget would reduce the major events trust fund (a state fund used to help cities attract or keep large events that boost the local economy in excess of their cost to the state treasury) and cut funds used to provide services to the homeless. VIRTUALLY NO STATE REVENUE SHARING? GOOD! In light of the reverse intergovernmental aid and state budget articles in this issue, is there any good news to report? There is. When is it a good thing that Texas cities receive virtually no state funding? How about when the state is facing an estimated $27-billion budget deficit. The National League of Cities recently released the results of its 2011 State Municipal League Legislative Issues and Priorities Survey, in which state municipal leagues reported on the legislative issues that most affect cities in their state. Interestingly, out of 37 state municipal leagues that responded to the survey, 18 listed “the protection of shared revenue with the state” or “state budget concerns” as their top legislative priority in 2011. The results are not that surprising, considering that most states provide direct financial assistance to cities in recognition of the fact that cities provide basic services on which the entire state depends. Unlike other states, Texas cities are forced to generate their own revenue. Although many Texas cities are currently dealing with their own fiscal woes, they can take some solace in knowing that their capacity to govern will not be significantly linked to the state budget appropriations process in a year the legislature must close an unprecedented gap. Massive budget cuts will dramatically reduce the amount of funding for social services and education in this state. If Texas cities relied on state revenue to fund essential city services, they could expect to see a similarly drastic reduction in funding. Texas cities are fortunate that they don’t have to rely on state funding to do their jobs (and perhaps some of the state’s jobs, too). The full survey results are available at http://www.nlc.org/ASSETS/A93DD63C3A0243399EB9D973E35CF237/Complete%20Survey %202011.pdf. Town Council 148 of 205 Meeting Date: February 7, 2011 8 COMPTROLLER RELEASES PROPERTY TAX NUMBERS: CITIES REGISTER NEGLIGIBLE INCREASE The Texas Comptroller published the Annual Property Tax Report for Tax Year 2009 this month. According to the report (the most recent available), total city property taxes increased 2.2 percent from tax year 2008 to tax year 2009. Such a meager increase is significant for several reasons. First, Texas’ population grew by 1.9 percent from 2008 to 2009. Second, from December 2008 to December 2009, consumer inflation rose 2.7 percent. Thus, combined population growth and inflation—the usual measure city critics cite when analyzing city property taxes—was, at 4.6 percent, more than twice what cities chose to increase their taxes. Third, the 2.2-percent increase includes new taxes levied on new construction. Factor out new construction, as must be done to compare taxes on same-value homeowners and businesses (“apples-to-apples,” in other words), and the effective increase was likely much smaller than the reported 2.2 percent. Also, five additional cities levied property taxes in 2009 compared to 2008. Again, adjusting to the effective rate would yield an increase smaller than 2.2 percent. The comptroller’s full report is available at http://www.window.state.tx.us/taxinfo/proptax/annual09/. RULE OF CAPTURE, WAT ER RIGHTS VESTING, AND OTHER ISSUES DEALT WI TH BY PROPOSED LEGISLATION AND SUPREME COURT OF TEXAS Senate Bill 332, filed last week by Senator Troy Fraser, would create a vested ownership interest in, and a right to produce, groundwater below the surface of a landowner’s real property. The bill would also prohibit an aquifer authority from depriving or divesting the landowner or his lessee of that right. The bill addresses the “rule of capture,” which is an issue that has been making its way through the Texas courts for years. The rule of capture has been part of Texas groundwater law for decades. The rule generally holds that a landowner has a right to drill a well and pump groundwater for use on his property, regardless of the amount pumped or the effect on groundwater availability to surrounding landowners. The Supreme Court of Texas is currently considering a case regarding the rights of landowners to pump groundwater. The case, Edwards Aquifer Authority v. Day (274 S.W.3d 742 (Tex.App.—San Antonio 2008, pet. granted)), involves landowners who purchased property within the Edwards Aquifer Authority. The landowners applied for a permit to pump Town Council 149 of 205 Meeting Date: February 7, 2011 9 groundwater, but after a contested hearing were limited by the authority in the amount they could pump. The landowners appealed the decision, arguing in part that the limit constituted an unconstitutional taking by the authority. They argued that their constitutionally-protected, vested interest in pumping groundwater for irrigation (related to the rule of capture) had been taken by the authority without just compensation. The trial court disagreed and granted summary judgment for the authority. The landowners appealed, asking the San Antonio Court of Appeals to “confirm the precedent of groundwater ownership as an unconditional component of land ownership.” The appeals court agreed in part with the landowners, stating that “[b]ecause Applicants have some ownership rights in the groundwater, they have a vested interest therein,” which is entitled to constitutional protection. The Supreme Court of Texas’ decision in the case could have far-reaching ramifications, as could the passage of S.B. 332 or similar legislation. The League will continue to monitor developments in the area and report as needed. DOT ISSUES NEW PIPELINE SAFETY GUIDELINES AND ANNOUNCES GRANT OPPO RTUNITY Last month, the U.S. Department of Transportation (DOT) released new safety guidelines to help local governments, developers, and community planners better protect areas near transmission pipelines. The guidelines, developed by the Pipelines and Informed Planning Alliance (PIPA), mark the first time a set of recommendations for development near existing transmission pipelines has been issued. The report, “Partnering to Further Enhance Pipeline Safety in Communities through Risk- Informed Land Use Planning,” offers nearly 50 recommended practices for local communities, developers, and pipeline operators to use to help reduce the safety risks that result from growth of communities near pipelines. The recommendations offer options on how land-use planning and development decisions can help protect existing pipeline infrastructure and growing communities. The report also provides recommendations on how communities can gather information about local transmission pipelines and how local planners, developers, and pipeline operators should communicate during all phases of new development to understand pipeline risks and how to minimize pipeline excavation damages during site preparation and construction. Two of the key recommendations for local governments pertain to consultation zones and planning areas. The report recommends that local governments “define a ‘consultation zone’ to provide a mechanism for communication between property developers/owners and operators of nearby transmission pipelines when new land uses and property developments are being Town Council 150 of 205 Meeting Date: February 7, 2011 10 planned.” Additionally, the report recommends that local governments “consider implementing ‘planning areas’ to enhance safety when new land use and property development is planned near transmission pipelines.” Austin Mayor Lee Leffingwell served as NLC’s representative to the PIPA steering group tasked with developing the report. “I’m proud of the City of Austin’s contribution to this effort. These new guidelines will greatly contribute to the safety of residential areas as they develop around existing pipelines,” said Leffingwell. When transmission pipelines are located in proximity to where people live, work, shop, or travel, pipeline safety concerns must be incorporated into every level of the decision-making and land development approval process. “The best practices developed by the PIPA Committee will provide valuable tools and guidance for local officials as they try to balance economic development, public safety, and protection of important energy infrastructure,” said Chuck Lesniak, environmental policy program manger with the Austin Watershed Protection Department, who provided technical assistance and staff support for Mayor Leffingwell. To read the PIPA report, go to http://primis.phmsa.dot.gov/comm/LandUsePlanning.htm. In addition, the DOT Pipeline and Hazardous Materials Administration (PHMSA) is accepting applications for Technical Assistance Grants through February 28, 2011. The Technical Assistance Grant (TAG) program is designed to provide funding to communities and non-profit groups for engineering or other scientific analysis of natural gas and hazardous liquid pipeline safety issues. The funding can also be used to help promote public participation in official proceedings pertaining to pipeline safety. Eligible activities could include implementation of PIPA recommended practices, conducting studies of pipeline safety issues at the local level, increasing public awareness of pipeline safety issues, etc. The maximum award for a single grantee is $50,000, and a total of $1,000,000 is available. To learn more about the TAG program, go to http://primis.phmsa.dot.gov/comm/DamagePreventionGrantsToStates.htm. For more information on the grant opportunity, contact Sam Hall, TAG program manager for PHMSA, at sam.hall@dot.gov. (Reprinted with permission of Carolyn Berndt at the National League of Cities.) Town Council 151 of 205 Meeting Date: February 7, 2011 11 COMMITTEES CONTINUE TO RELEASE INTERIM REPORTS Senate Committee on Criminal Justice The Senate Committee on Criminal Justice completed and released its interim report, which addressed several interim charges. Seven of the charges contained issues of interest to cities, including the following recommendations to the legislature: Sex Offenders • Repeal Article 62.402 (A) and (B) of the Code of Criminal Procedure to enable Texas not to be bound to the federal minimum for sex offender registration requirements. • Establish a minimum standard for sex offender registration requirements, which include the current process for deregistration for those approved by the Council on Sex Offender Treatment. • Do not implement the Adam Walsh Act. • Require that all registered sex offenders have risk assessments done. • Continue working to improve communication between states regarding registered sex offenders who present a significant risk to community safety. Driving While Intoxicated • Eliminate or greatly reduce the Driver Responsibility Program surcharges as they relate to DWI convictions. The increasing number of drivers who are unlicensed and uninsured is unacceptable. • Add to current statutes incentives for suspected DWI offenders for submitting to a breath or blood test. At the time of a trial, if evidence is presented that a BAC of .15 or over is established, allow a first or second DWI offense to be punishable at the next level. • Establish strict guidelines for the execution of search warrants for suspected DWI case blood draws. Place limitations on the level of force allowed to obtain samples, and establish the professional certification level required for individuals who conduct these procedures. Municipal Jails • Require registration of all municipal jails with the Texas Commission on Jail Standards, including an annual report of the average number of persons detained per day, the average number of hours held prior to release, and a description of how the facility operates. • Adopt the “Best Practices” as defined by the Texas Police Chiefs Association (below) for use by all municipal jails, and as an element of the above registration, require certification that the municipal jails, holdovers, etc., are in compliance and if not, what actions are being implemented to obtain compliance. Those municipal jails not in compliance should be required, at the time of submission of the information called for, to submit their progress toward compliance, their reasons for lack of attainment and obstacles to achievement, the steps that will be taken to achieve compliance, and the date of their projected compliance. Best Practices recommendations included: Town Council 152 of 205 Meeting Date: February 7, 2011 12 Search and Transport of Arrestees: Police departments must have a written directive regarding searching and transporting adult prisoners, including: (1) requiring the search of all adult arrestees before transport; (2) approved methods of how to safely transport arrestees; (3) methods or actions for transporting sick, injured, or disabled arrestees; (4) search of the transporting vehicle before and after the transport; (5) proper use of restraining devices; (6) monitoring of the arrestee to avoid medical difficulties; and (7) training of all personnel in these policies. Juveniles – Arrest, Detention, and Transportation: Police departments must have a written directive regarding the arrest, detention, and transportation of juveniles, including: (1) the rights of arrested juveniles; (2) the searching of juveniles; (3) the methods of transporting juveniles to detention; (4) the use of restraints and monitoring of the prisoner; (5) approved methods and locations of detention; and (6) the development, control, and separate storage of juvenile files, preferably separately from adult files. Approval of Juvenile Holding Area: Police departments must have written approval from a juvenile court judge or juvenile board for the holding and processing area of juvenile arrest, if used. Separation of Prisoners: Police departments must provide for: (1) cell separation of males and females; and (2) sight and sound separation between arrested adults and juveniles. Jail Cells: Jail cell areas must provide prisoners with access to water and toilet facilities, and access to food for prisoners who are detained through normal meal times. Visual Observation: Personnel must visually observe prisoners every thirty minutes to one hour, as workload permits, in person or through a monitored camera system. • Require that all reports from municipal jails to the Texas Commission on Jail Standards be freely available to the public on the Internet. Juvenile Offenders • Maintain better records on juveniles in local jails to ensure they are not being housed too long or with adult offenders. • Remove all citations issued to juveniles from municipal courts to juvenile courts in order to increase consistency. Crime Labs • All crime labs should be independent of law enforcement, investigators, and prosecutors. • A centralized training center for forensic scientists should be pursued under the crime lab division. Such a model would accommodate the accreditation and certification of personnel through standardized procedures. Town Council 153 of 205 Meeting Date: February 7, 2011 13 • The Legislative Budget Board should be instructed to conduct a study to evaluate the cost benefit ratios of public versus private crime laboratories. It should also determine if competitive bidding between them would have a positive influence on testing cost. • State crime lab services should be on a fee recovery basis, and legislature mandating such is supported. Mentally Ill Arrestees and Prisoners • Convene a meeting of key local and state criminal justice, mental health, regulatory, and law enforcement agencies to address implementation issues. This would provide stakeholders the opportunity to discuss implementation barriers and make recommendations toward resolving the problem areas. • Legislation that authorizes transportation of mentally ill individuals to state hospitals by means other than law enforcement resources should be considered. House Committee on General Investigating and Ethics The House Committee on General Investigating and Ethics, which considered three interim charges, recently released its interim report. The report’s city-related recommendations are as follows: • Texas Ethics Commission Ethics Advisory Opinion No. 484: Ethics Advisory Opinion No. 484 concluded that under the Penal Code, lobby law, and Title 15 of the Election Code, an elected officeholder may not accept transportation, meals, or lodging from a corporation or labor organization in return for addressing an audience or participating in a seminar if the officeholder’s services are in connection with his duties or activities as an officeholder, unless the transportation, meals, or lodging are reportable under the lobby law or are reimbursable with public money. The committee recommended that the Commission: (1) reconsider the opinion during an open meeting and provide the public opportunity to comment on the issue; and (2) consider exercising its rulemaking authority, after consideration in an open meeting, to clarify the manner in which an elected official can determine compliance with state law. • The Definition of “Political Advertising”: The committee was charged with considering whether the definition of the term “political advertising” should be expanded to include content contained in blogs and other Internet communications. The committee recommended that the legislature: (1) consider regulating blogs from a political committee that are placed on another person’s Web site for a fee; and (2) continue to monitor Internet communication regulations at the state level and the implementation of the Federal Election Commission and the Maryland State Board of Elections Internet communication regulations. The full text of the report is available online at http://www.house.state.tx.us/_media/pdf/committees/reports/82interim/House-Committee-on- General-Investigating-and-Ethics-Interim-Report-2010.pdf. Town Council 154 of 205 Meeting Date: February 7, 2011 14 Senate State Affairs Committee At the end of 2009, the Senate State Affairs Committee was given fourteen charges to consider. Of interest to cities, those charges included: (1) workers compensation issues; and (2) open government as relates to social media. The committee reviewed the issues and came up with the following recommendations: • Workers Compensation: The committee discussed the idea that workers compensation benefits do not pay as much for catastrophic injuries, such as the loss of limbs or paralysis, as lawsuit awards. The committee decided that the purpose of workers compensation benefits is to pay lost wages due to permanent impairment caused by workplace injury or illness, and not to make the employee whole the way tort law is designed to do. In the end, the committee recommended that the legislature should address this inadequacy by changing benefits for catastrophically-injured workers, including those sustaining severe burns, paralysis, and death. • Open Meetings and Public Information Act: The committee discussed the Open Meetings Act and the Public Information Act and took testimony on the issues. The committee recommended that the legislature update the Acts and the record retention statutes to address newer technologies, such as e-mail, Internet, and social media. The committee also recommended that the legislature consider forming an advisory board made up of state agency representatives to address ongoing public information and open meetings issues relative to current and future technology developments. The committee recommended that this group work with the Public Electronic Services On-the-Internet (PESO) workgroup coordinated by the Department of Information Resources. Finally, the committee recommended that – if amendments are made to the Acts – the legislature should also provide for new and “thorough” training for all entities subject to the Acts, including cities. The entire report is available at http://www.senate.state.tx.us/75r/senate/commit/c570/c570.InterimReport81.pdf. SUNSET ADVISORY COMMISSION DECISIONS The Sunset Advisory Commission is an independent state agency that periodically reviews other state agencies to determine whether those agencies should remain in existence. The purpose of the Commission’s review is to assess the need to retain an agency, look for potential duplication of programs within the agency, and consider changes to improve the agency. After lengthy staff reports and a hearing process, the Commission held its final meeting on January 12, 2011. The recommendations of the Commission will be filed in the form of a “sunset bill” for each agency. Several important agencies are up for review this session. Some of the most relevant final recommendations that would affect cities from some of those agencies Town Council 155 of 205 Meeting Date: February 7, 2011 15 are listed below. The recommendations of other agencies will appear in next week’s Legislative Update. Much more detailed information on all the agencies is available at http://www.sunset.state.tx.us. Texas Department of Transportation (TxDOT) • Disband the Texas Transportation Commission and replace it with one commissioner of transportation, appointed by the governor, which the Commission envisions as a “cabinet- level position.” The position would be re-appointed every two years, and would not be able to serve past the end of that term without Senate approval. • Require all outdoor advertising fees collected by TxDOT to be deposited into the general revenue fund, and not the dedicated beautification account. The commission also discussed, but did not vote on, a proposal to require billboard companies to choose, on a case-by-case basis, how each billboard will be valued (ad valorem or condemnation), and bind the company to that valuation for both ad valorem tax and condemnation purposes. Members of the commission expressed their support for the idea, but believed that the legislature should debate an independent bill on the question. Texas Railroad Commission (RRC) • Disband the three-member commission and replace it with one elected commissioner. • Require the RRC’s oil and gas program to be self-supporting, and authorize the RRC to levy surcharges on the program’s permits, licenses, certificates, or reports to achieve this purpose. • Require the RRC to develop, in rule, an enforcement policy to guide staff in evaluating and ranking oil- and natural gas-related violations. • Require the RRC to formally adopt penalty guidelines in rule. • Transfer the RRC’s enforcement hearings to the State Office of Administrative Hearings. • Authorize the RRC to enforce damage prevention requirements for interstate pipelines. Texas Commission on Environmental Quality (TCEQ) • Transfer the authority for making groundwater protection recommendations regarding oil and gas activities from TCEQ to the Railroad Commission. • Focus the Office of Public Interest Counsel’s efforts on representing the public interest in matters before the TCEQ rather than assisting regulated entities in cases before the TCEQ. • Direct TCEQ to revise its rules on compliance history. • Require the TCEQ to structure its general enforcement policy in rule and publicly adopt its resulting enforcement policies. • Increase TCEQ’s administrative penalty caps. • Exempt “low-hazard” dams from regulation. • Authorize TCEQ to consider supplemental environmental projects for local governments that would improve the environment. • Clarify the TCEQ executive director’s authority to curtail water use in water shortages and times of drought. Town Council 156 of 205 Meeting Date: February 7, 2011 16 • Require water rights holders to keep records of monthly water use information, and to submit those to TCEQ annually. • Re-authorize the petroleum storage tank fee, but require TCEQ to reduce the fee as the cost of the program decreases. Texas Forest Service (TFS) • Transfer state forests to Texas Parks and Wildlife Department or the Texas Department of Agriculture. • Authorize TFS to take all necessary actions to respond to wildfires to help best protect communities. • Authorize TFS to involve the volunteer fire service in statewide wildfire response, and ensure that these personnel have needed qualifications. • Require TFS to develop a Texas Wildfire Protection Plan to be reported to the legislature. • Require TFS to include a criterion regarding wildfire risk and threat of loss to communities when awarding Volunteer Fire Department (VFD) Assistance Program grants. • Authorize TFS to allocate a portion of its VFD Assistance Program funding to help volunteer fire departments meet cost-sharing requirements for federal grants. • Require TFS to adopt VFD Assistance Program rules and hold public meetings when making program decisions. Commission on State Emergency Communications (CSEC) • Authorize CSEC to coordinate the development and implementation, and provide ongoing management of, an interconnected state-level 911 network and an interconnected state-level Internet protocol-based emergency communications network. • Require CSEC to establish an advisory committee for the development, implementation, and management of the various aspects of the state’s next generation 911 system. Texas Department of Housing and Community Affairs (TDHCA) • Change the basis for quantifying a community’s participation in a proposed tax credit development to the receipt of a written statement from the local city council or county commissioners court. • Allow TDHCA to create additional tax credit allocation cycles to take advantage of non- standard federal assistance opportunities. • Allow TDHCA to update the qualified allocation plan biennially instead of annually. WHAT’S YOUR AREA OF EXPERTISE OR INTEREST? JOIN YOUR FAVORITE E-LIST The TML staff is gathering e-mail addresses from city officials (elected or appointed) who are willing to provide testimony during the 2011 legislative session, want to be kept “in the loop” on certain subject matters, or are willing to simply provide their perspective on a particular legislative matter. Town Council 157 of 205 Meeting Date: February 7, 2011 17 If you would like to participate in this E-List project, simply go to http://www.tml.org/genform/E-List.asp and fill out the online form. If you have any questions, please contact JJ Rocha at jj@tml.org or 512-231- 7400. CITY-RELATED BILLS FILED H.B. 250 (Hilderbran) – Elections: would: (1) require the voter registrar of each county and the secretary of state to provide notice of voter identification requirements and to educate voters about the requirements through certain programs by publishing notice on certain websites; (2) require a voter to present to an election officer at the polling place a voter registration certificate and an acceptable form of identification; (3) provide that, if a voter does not present acceptable identification, the voter shall be accepted for provisional voting only; (4) modify the types of acceptable voter identification documents; (5) make an offense under the bill a second degree felony or a state jail felony if the person is convicted of attempt; (6) provide that a voter who presents a voter registration certificate indicating that the voter is currently registered in the precinct, but whose name is not on the precinct list of registered voters, shall be accepted for voting if the voter’s identity can be verified from the proof presented; and (7) provide that a provisional ballot may be accepted only if: (a) the voter presents acceptable proof of identification at the time the ballot is cast; or (b) the voter submits a copy of the identification to the voter registrar by personal delivery or by mail for examination by the early voting ballot board not later than the sixth business day after the date of the election. H.B. 597 (Madden) – Synthetic Derivative of Marihuana: would make any quantity of a synthetic chemical compound that is a cannabinoid receptor agonist and that mimics the pharmacological effect of naturally occurring cannabinoids subject to Penalty Group 2 of the Texas Controlled Substances Act. (Companion bill is S.B. 331 by Shapiro.) H.B. 601 (Jackson) – E-verify: would: (1) require an employer, including a city, to participate in the e-verify program; and (2) require a city to terminate the employee responsible for using E- verify if they fail to comply with this law. H.B. 603 (Farrar) – Immigration: would provide that a peace officer may not inquire as to the nationality or immigration status of a victim of or witness to a criminal offense except as necessary to investigate the offense. H.B. 607 (Miller) – Commercial Driver’s Licenses: would allow deferred disposition or driver safety course dismissal for a holder of a commercial driver’s license who violates a state law or local ordinance relating to motor vehicle control. H.B. 609 (Zerwas) – Property Tax: would reduce the property tax appraisal cap on homesteads from ten to five percent. (Note: please see H.J.R. 62 below.) H.B. 610 (Zerwas) – Texas Commission on Environmental Quality: would require TCEQ to provide certain notices to state representatives and senators via e-mail. Town Council 158 of 205 Meeting Date: February 7, 2011 18 H.B. 611 (Murphy) – Professional Services: would provide that: (1) a governmental entity, including a city, may not provide through its officers or employees a commercially available service (e.g., the practice of engineering or architecture, construction services, or construction management services) for an improvement to real property that is not owned or leased by the entity; and (2) a governmental entity, including a city with a population of 50,001 or more, that provides through its officers or employees a commercially available service for an improvement to real property owned or leased by the entity shall provide and make available to the public an accounting of the cost of performing that service. H.B. 616 (Quintanilla) – Alcohol Regulations: would provide that the commissioners court of a county may enact certain regulations applicable in areas in the county outside an incorporated city, and the governing board of an incorporated city may enact regulations applicable in the city, that prohibit the possession or consumption of an alcoholic beverage at a location that was previously licensed or permitted to sell alcoholic beverages for on-premises consumption if the commissioners court or governing board determines the license or permit was: (1) canceled for cause; (2) denied renewal; or (3) voluntarily canceled or expired before a hearing after the Texas Alcoholic Beverage Commission had initiated action to cancel or suspend the license or permit. H.B. 617 (Dutton) – Sovereign Immunity: would permit plaintiffs to obtain discovery from cities that raise certain sovereign immunity defenses to a lawsuit. H.B. 621 (Fletcher) – Police Education: would require a police chief to complete certain initial training and continuing education provided by the Bill Blackwood Law Enforcement Management Institute of Texas. H.B. 623 (Bonnen) – Immigration: would enact comprehensive “immigration reform.” Specifically, the bill would, among other things, provide that: 1. Not later than 48 hours after a person is arrested and before the person is released on bond, the law enforcement agency that arrested the person or that has custody of the person shall: (1) have the person’s immigration status verified by a law enforcement officer who is authorized under federal law to verify a person's immigration status or a federal law enforcement officer; and (2) if United States Immigration and Customs Enforcement (ICE) does not have the results of the immigration status of the person, notify ICE if the person is not a citizen or national of the United States and is unlawfully present in the United States. 2. A law enforcement agency that notifies ICE of the results of an immigration status verification shall provide the results of the immigration status verification to the Texas Department of Public Safety (DPS). 3. DPS shall maintain a computerized central database containing information regarding each person who has been arrested in the state and immigration status verification reveals that the person: (a) is not a citizen or national of the United States; and (b) is unlawfully Town Council 159 of 205 Meeting Date: February 7, 2011 19 present in the United States according to the terms of the federal Immigration Reform and Control Act. 4. DPS shall make the information in the database available to any peace officer or law enforcement agency in the state. 5. Most of the information in the database is public and shall be posted on the DPS Web site. 6. A person who is not authorized by law to be present in the United States may not be considered a resident of this state for higher education tuition purposes. 7. Each state agency must include with the agency’s legislative appropriations request a supporting schedule that provides an accounting of amounts spent by the agency during the state fiscal biennium preceding the biennium for which the legislative appropriations request is made to directly or indirectly provide services to persons who were not lawfully present in the United States. 8. A state agency that distributes money to a local governmental entity must include in the agency’s accounting the amounts distributed to a local governmental entity that the entity spent to provide services to persons who were not lawfully present in the United States. 9. A state agency, through the agency's governing body or chief administrative officer, as appropriate, may adopt rules requiring local governmental entities to which the agency distributes money to provide sufficiently detailed information that will enable the agency to comply with the requirement in number 8, above. 10. English is the official language of the state. 11. A city or any officer or employee of the city may not adopt any policy that does not fully enforce state and federal law, and, in the case of policies that would not fully enforce state and federal immigration laws, prohibit the city from receiving state funds. 12. Cities and other licensing authorities who license or permit individuals to engage a business, occupation, or profession must ensure that the applicant is eligible for employment in the United States before issuing the license. 13. DPS shall verify the citizenship status of each applicant for a driver’s license or personal identification certificate and provide that information on the card. H.B. 624 (Bonnen) – Elections: would: (1) require the voter registrar of each county and the secretary of state to provide notice of voter identification requirements and to educate voters about the requirements through certain programs by publishing notice on certain websites; (2) require a voter to present to an election officer at the polling place a voter registration certificate and an acceptable form of identification; (3) provide that, if a voter does not present acceptable Town Council 160 of 205 Meeting Date: February 7, 2011 20 identification, the voter shall be accepted for provisional voting only; (4) modify the types of acceptable voter identification documents; (5) provide that a voter who presents a voter registration certificate indicating that the voter is currently registered in the precinct, but whose name is not on the precinct list of registered voters, shall be accepted for voting if the voter’s identity can be verified from the proof presented; and (6) provide that a provisional ballot may be accepted only if: (a) the voter presents acceptable proof of identification at the time the ballot is cast; or (b) the voter submits a copy of the identification to the voter registrar by personal delivery or by mail for examination by the early voting ballot board not later than the sixth business day after the date of the election. H.B. 628 (Callegari) – Construction Procurement: would, among other things: (1) prohibit a reverse auction procedure for a public works contract for which a performance or payment bond is required; (2) provide that the board of trustees of a school district may enter into an agreement for the design, construction, or renovation of improvements to real property not owned or leased by the district if the improvements benefit real property owned or leased by the district, such as the design, construction, or renovation of highways, roads, streets, sidewalks, crosswalks, utilities, and drainage improvements; (3) prohibit the use of an interlocal contract to purchase construction services unless the services are in connection with the construction of a specific facility to be jointly owned, used, or financed by the parties to the contract or: (a) the services are in connection with a job order contract; (b) the governing body of the governmental entity for whom the work will ultimately be performed approves the purchase in open session; (c) public notice is provided in a manner consistent with a direct contract for job order contracting services; and (d) work orders under the contract comply with state law; (4) consolidate the provisions of current law relating to alternative delivery systems for construction projects (e.g., competitive sealed proposals, construction manager-agent, construction manager at-risk, design- build, job order contracting for buildings) by most governmental entities, including cities; (5) provide procedures and criteria for a governmental entity to use when selected a construction contractor using a method other than competitive bidding; (6) authorize the use of any alternative delivery method, except for design-build (which is authorized for most projects but with various limitations), for any improvement to real property; and (5) limit the use of design-build in various ways, and in some instances provide that an unsuccessful design-build offeror owns the information submitted unless the governmental entity pays a stipend to the offeror; (7) provide that, if a change order for a public works contract in a city with a population of 500,000 or more involves a decrease or an increase of $100,000 or less, or a lesser amount as provided by ordinance, the governing body may grant general authority to an administrative official of to approve the change order; (8) provide that a contract with an original contract price of $1 million or more may not be increased by more than 25 percent; (9) provide that, if a change order for a contract with an original contract price of less than $1 million increases the contract amount to $1 million or more, subsequent change orders may not increase the revised contract amount by more than 25 percent. H.B. 629 (Pickett) – Transportation Reinvestment Zones: would amend the law relating to transportation reinvestment zones (TRZs) to provide that: (1) the governing body of a city or county may determine the portion of tax increment generated from the sales and use taxes attributable to the zone, above the sales tax base, to be used only to pay for authorized project costs or to satisfy claims of holders of tax increment bonds, notes, or other obligations issued or Town Council 161 of 205 Meeting Date: February 7, 2011 21 incurred for authorized projects; (2) a city or county shall deposit the designated portion or amount of tax increment to their respective tax increment account; and (3) before pledging or otherwise committing money in the tax increment account under Subsection, the governing body of a city or county may enter into an agreement to authorize and direct the comptroller to: (a) withhold from any payment to which the city or county may be entitled the amount of the payment into the tax increment account; (b) deposit that amount into the tax increment account; and (c) continue withholding and making additional payments into the tax increment account until an amount sufficient to satisfy the amount due has been met. H.B. 631 (Chisum) – Elections: would allow an early voting ballot board to establish a process for removing data from voting machines used in early voting before election day if: (1) the county will use the voting machines on election day; and (2) the process is approved by the secretary of state. H.B. 633 (Chisum) – Police Application Fees: would allow the Texas Commission on Law Enforcement Officers Standards and Education to refund an application fee, including a fee that is otherwise nonrefundable, if the commission determine the application was submitted by mistake. H.B. 644 (Orr) – Employment Preference: would: (1) lengthen the time from 15 days to 30 days, after receiving a written complaint, for a public entity, including a city, to reconsider a matter of employment regarding a veteran; and (2) require the city to discuss the complaint at its next meeting for which it has not posted notice. H.B. 654 (Solomons) – Sales Tax: would require the comptroller to report to the legislature and governor on the amount of revenue remitted to the comptroller for each tax collected in each city and county. H.B. 659 (Villarreal) – Property Assessments: would: (1) authorize a city to create a voluntary property assessment in order to finance certain water improvements; (2) require a city that authorizes contractual assessments for water or energy efficiency improvements to file written notice of each assessment in the real property records of the county in which the property is located; (3) provide that a contractual assessment for water or energy efficiency improvements has the same priority as a lien for city property taxes. H.B. 662 (Rodriguez) – County Development Authority: would provide that: (1) pursuant to certain procedures, the commissioners court of a county may adopt a comprehensive plan and land use regulations that require a buffer zone between certain uses in the unincorporated area of the county, with certain exceptions; and (2) the commissioners court by order may enter into agreements with any city located in the county to assist in the implementation and enforcement of buffer zone regulations. H.B. 665 (Villarreal) – Employment Discrimination: would prohibit an elected city official or a city that employs fifteen or more employees from discriminating against an employee or an employment applicant on the basis of sexual orientation or gender identity. Town Council 162 of 205 Meeting Date: February 7, 2011 22 H.B. 666 (Villarreal) – Property Tax: would require the comptroller to conduct a study to evaluate the impact that requiring disclosure of the sales price of real property would have on the property tax system. H.B. 668 (F. Brown) – Vehicle Storage: would provide that if a vehicle towed to a vehicle storage facility is not claimed before the tenth day after the date notice is mailed or published, the vehicle storage facility shall consider the vehicle abandoned, send notice to the owner and primary lienholder, and send a report of abandonment to certain law enforcement agencies, including the police department of a city. H.B. 670 (Crownover) – Statewide Smoking Ban: would: (1) prohibit smoking in most public places, in places of employment, and in seating areas at outdoor events; (2) provide that the bill’s provisions preempt and supersede a local ordinance, rule, or regulation that prohibits smoking to a lesser degree; (3) provide that a local ordinance, rule, or regulation that prohibits or restricts smoking to a greater degree than the bill is not preempted; (4) require the Texas Department of State Health Services to annually request other government agencies to establish local operating procedures to comply with the bill, including urging all federal, state, county, and municipal governments as well as independent school districts to update existing smoking control regulations to be consistent with the current health findings regarding secondhand smoke; and (5) require any entity that grants business licenses, including a city, to provide notice of the state smoking law to each license applicant. H.B. 676 (Lucio) – Cell Phone Ban: would prohibit the operator of a motor vehicle from using a wireless communication device while stopped for a bus that is receiving or discharging a student. H.B. 678 (Lucio) – Transportation: would provide that: (1) before a school district may issue bonds or enter into a contract to construct a facility to be used for any purpose on real property owned by the district on September 1, 2011, the board of trustees must hold a joint meeting with representatives of the Texas Department of Transportation district office, the governing body of each city in which or in whose extraterritorial jurisdiction any part of the property is located, and the commissioners court of each county in which any part of the property is located; and (2) the meeting must address: (a) the impact of the facility on traffic and the transportation infrastructure in the area of the facility; (b) the cost of any necessary associated transportation infrastructure improvements; and (c) each entity that will be responsible for paying for any necessary associated transportation infrastructure improvements. H.B. 679 (Button) – Purchasing: would provide that: (1) if a change order involves a decrease or an increase of $50,000 or less and is for work within the original bid, the governing body may authorize an administrative official of the municipality to approve the change order; (2) a governing body may authorize an official or employee responsible for purchasing or administering a contract to approve a change order that involves a change of $50,000 or less; and (3) similar changes shall apply to civic center authorities and certain other local governmental entities. Town Council 163 of 205 Meeting Date: February 7, 2011 23 H.B. 681 (Kleinschmidt) – Firearms: would: (1) preclude an employer from prohibiting an employee who has a concealed handgun license from transporting or storing a firearm or ammunition in a locked, privately owned vehicle in a parking lot, garage, or parking area provided for employees; but (2) provide that the bill’s restriction on an employer do not apply to a vehicle owned or leased by the employer and used by the employee, unless the employee is required to transport or store a firearm in the official discharge of the employee’s duties. (Companion bill is S.B. 321 by Hegar). H.B. 683 (Rodriguez) – Property Tax: would change the community housing development (CHDO) property tax exemption as follows: (1) provide that rented housing may qualify for a CHDO exemption regardless of whether it is single-family housing or apartments; (2) provide that in order to qualify for an exemption, an apartment property owned for the purpose of rehabilitating a housing project must contain original construction that was completed at least ten years before the rehabilitation began, and the owner from whom the organization acquired the property must have owned the project for at least five years; and (3) require a chief appraiser to use the income method when appraising CHDO property even if the appraiser considers another method to be more appropriate. H.B. 685 (Dutton) – Municipal Court: would allow a prosecutor to dismiss a case involving a nonviolent criminal offense if the defendant becomes a member of the U.S. armed forces serving on active duty and has no other convictions other than fine-only traffic or parking offenses. H.B. 687 (Dutton) – Governmental Immunity: would amend the Texas Tort Claims Act to provide that a governmental unit, including a city, is liable for personal injury and death caused by the negligence of the city if the city would, were it a private person, be liable to the claimant according to Texas law. H.B. 688 (Dutton) – Criminal History Records: would: (1) expand the situations in which an individual who was placed on community supervision may petition for an order of nondisclosure, and (2) creates an offense if a person compiles or disseminates the information that is the subject of an order of nondisclosure with the intend to benefit or with intent to harm or defraud another. H.B. 690 (Martinez Fischer) – Graffiti: would provide that marking a historic structure or property with graffiti is a state jail felony offense if the amount of the pecuniary loss to real property or to tangible personal property is less than $20,000. H.B. 695 (Allen) – Mercury Thermostat Recycling: would enact detailed procedures for mercury thermostat recycling and require an operator of a solid waste treatment, processing, or disposal facility to notify the facility’s customers of the requirement to take an out-of-service mercury-added thermostat to a point of collection by posting at the facility signs that clearly note the requirement. H.B. 697 (Hunter) – Police Training: would prohibit the Texas Commission on Law Enforcement Standards and Education from adopting rules that place a police training provider on at-risk probationary status based solely on the provider’s students’ scores if at least 80 percent of the students pass by their third attempt. Town Council 164 of 205 Meeting Date: February 7, 2011 24 H.B. 703 (Gutierrez) – Health Care Services Providers: would make assault on a health care services provider, while the person is providing health care services, a felony of the third degree. H.B. 704 (Gutierrez) – Sales Tax: would: (1) allow a city or other local governmental entity authorized to adopt a sales tax at an increment of one-fourth or one-eighth of one percent to adopt a sales tax rate set at an increment of one-sixteenth of one percent; and (2) authorize a city or local governmental entity that imposes a sales tax at a rate that may be increased or decreased by one-fourth or one-eighth of one percent to increase or decrease the rate in increments of one- sixteenth of one percent. H.J.R. 62 (Zerwas) – Property Tax: would amend the Texas Constitution to authorize the legislature to reduce the property tax appraisal cap on homesteads from ten to five percent. (Note: please see H.B. 609, above.) H.J.R. 64 (Pickett) – Transportation Funding: would amend the Texas Constitution to provide that: (1) subject to legislative allocation, appropriation, and direction, three fourths of the net revenue from the motor fuel tax shall be used for the sole purpose of constructing and maintaining public highways, and one-fourth of the net revenue shall be allocated to school funding; and (2) for a biennium, the legislature may not appropriate funds derived from the revenue described (1), above, for a purpose other than acquiring rights-of-way or constructing or maintaining public roadways in an amount that exceeds the lesser of: (a) the total amount of those funds appropriated for a purpose other than acquiring rights-of-way or constructing or maintaining public roadways in the preceding biennium; or (b) the maximum amount that may be appropriated under (a), above, reduced by 20 percent from the preceding biennium if the estimate of anticipated revenue from all sources made in advance of the regular session for the biennium exceeds the total amount of revenue from all sources for the preceding biennium by more than three times the amount of the reduction. H.J.R. 66 (Pickett) – Transportation Funding: would amend the Texas Constitution to provide that: (1) subject to legislative allocation, appropriation, and direction, three fourths of the net revenue from the motor fuel tax shall be used for the sole purpose of constructing and maintaining public highways, and one-fourth of the net revenue shall be allocated to school funding; and (2) for a biennium, the legislature may not appropriate funds derived from the revenue described (1), above, for a purpose other than acquiring rights-of-way or constructing or maintaining public roadways in an amount that exceeds the lesser of: (a) the total amount of those funds appropriated for a purpose other than acquiring rights-of-way or constructing or maintaining public roadways in the preceding biennium; or (b) the maximum amount that may be appropriated under (a), above, reduced by 20 percent from the preceding biennium if the estimate of anticipated revenue from all sources made in advance of the regular session for the biennium exceeds the total amount of revenue from all sources for the preceding biennium by more than three times the amount of the reduction. S.B. 14 (Fraser) – Elections: would: (1) require the voter registrar of each county and the secretary of state to provide notice of voter identification requirements and to educate voters about the requirements through certain programs by publishing notice on certain websites; (2) Town Council 165 of 205 Meeting Date: February 7, 2011 25 require a voter under 70 years of age to present to an election officer at the polling place a voter registration certificate and an acceptable form of identification; (3) provide that, if a voter does not present acceptable identification, the voter shall be accepted for provisional voting only; (4) modify the types of acceptable voter identification documents; (5) make an offense under this section a second degree felony or a state jail felony if the person is convicted of attempt; (6) provide that a voter who presents a voter registration certificate indicating that the voter is currently registered in the precinct, but whose name is not on the precinct list of registered voters, shall be accepted for voting if the voter’s identity can be verified from the proof presented; and (7) provide that a provisional ballot may be accepted only if: (a) the voter presents acceptable proof of identification at the time the ballot is cast; or (b) the voter submits a copy of the identification to the voter registrar by personal delivery or by mail for examination by the early voting ballot board not later than the sixth business day after the date of the election. S.B. 330 (Watson) – Renewable Energy: would provide: (1) for the establishment of additional goals for renewable energy capacity in the state; (2) that the Public Utility Commission shall adopt rules necessary to administer and enforce the goals; and (3) that, at a minimum, the rules shall establish the minimum annual renewable energy requirement for each retail electric provider, municipally owned utility, and electric cooperative operating in this state in a manner reasonably calculated by the commission to produce, on a statewide basis, compliance with the requirements. S.B. 331 (Shapiro) – Synthetic Derivative of Marihuana: would make any quantity of a synthetic chemical compound that is a cannabinoid receptor agonist and that mimics the pharmacological effect of naturally occurring cannabinoids subject to Penalty Group 2 of the Texas Controlled Substances Act. (Companion bill is H.B. 597 by Madden.) S.B. 332 (Fraser) – Groundwater: would: (1) create a vested ownership interest in, and a right to produce, groundwater below the surface of a landowner’s real property, and (2) prohibit an aquifer authority from depriving or divesting the landowner or his lessee of that right. S.B. 333 (Fraser) – Water Supply Corporations: would, among other things, provide for qualifications and election procedures for directors of non-profit water supply corporations. S.B. 339 (Gallegos) – Air Quality: would require the Texas Commission on Environmental Quality (TCEQ) to: (1) after receiving a report of an unauthorized emission of air contaminants from one or more emissions points at a regulated entity, provide notice of the emissions event to officials who represent the area in which the event occurred, including a mayor of any city in the area; and (2) maintain a list of recent emissions events on TCEQ’s Web site that is easily accessible by the public. S.B. 344 (Gallegos) – Civil Service: would: (1) repeal the statutory provision allowing a fire or police department to maintain a separate protected personnel file; (2) include failure to maintain a certification or fulfill a condition of employment as a civil service rule subjecting a disciplinary action taken on these bases to the civil service disciplinary procedure; (3) allow a city with civil service to pay seniority pay and longevity pay to an individual temporarily assigned to a higher classification if the city offers both seniority and longevity pay; (4) allow a city less than 1.5 Town Council 166 of 205 Meeting Date: February 7, 2011 26 million in population to pay both seniority and longevity pay; and (5) require a city to pay seniority pay, if adopted, in a nondiscriminatory fashion. S.B. 348 (Estes) – Salvia Divinorum: would: (1) make the sell or delivery of salvia divinorum, Salvinorin A, or a product containing salvia divinorum or Salvinorin A to a person younger than 18 years of age a Class C misdemeanor; and (2) provide that it is a defense to prosecution for the offense described in (1) above if the person presents an apparently valid proof of identification indicating, among other things, that the person is 18 years of age or older. S.B. 350 (Williams) – TMRS: would: (1) require the establishment of individual accounts for each city employee who is receiving contributions; (2) eliminate the employees’ saving fund in favor of individual member accounts; (3) change all benefits and interest received to be based on contributions to individual member accounts instead of deposits to the employees’ saving fund; (4) require an individual with military service credit to pay for the credit before it is added to the calculation for the individual’s TMRS benefit; (5) require reestablishment of an individual member account if a retiree resumes employment with a city; (6) make the annuities required of a city the obligation of the city payable from the city’s benefit accumulation fund account; (7) eliminate the current service annuity reserve fund; and (8) require TMRS to transfer all amounts in the employees’ saving funds to the benefit accumulation fund. S.B. 355 (Ellis) – Statewide Smoking Ban: would: (1) prohibit smoking in most public places, in places of employment, and in seating areas at outdoor events; (2) provide that the bill’s provisions preempt and supersede a local ordinance, rule, or regulation that prohibits smoking to a lesser degree; (3) provide that a local ordinance, rule, or regulation that prohibits or restricts smoking to a greater degree than the bill is not preempted; (4) require the Texas Department of State Health Services to annually request other government agencies to establish local operating procedures to comply with the bill, including urging all federal, state, county, and municipal governments as well as independent school districts to update existing smoking control regulations to be consistent with the current health findings regarding secondhand smoke; and (5) require any entity that grants business licenses, including a city, to provide notice of the state smoking law to each license applicant. S.B. 357 (Van de Putte) – Property Tax: would provide a complete residence homestead propert y tax exemption for the surviving spouse of a totally disabled veteran if: (1) the surviving spouse has not remarried; (2) the property was the residence homestead of the surviving spouse when the disabled veteran died; and (3) the property remains the residence homestead of the surviving spouse. The bill would also provide a complete residence homestead property tax exemption for the owner of a property if: (1) the property remains the principal residence of one or more of the disabled veteran’s surviving children who are under the age of 18 and unmarried; and (2) the property was the principal place of residence for the children when the disabled veteran died. (Note: please see S.J.R. 14, below.) S.B. 358 (Wentworth) – Governmental Immunity: would waive municipal sovereign and governmental immunity from suit and liability for damages in any amount. Town Council 167 of 205 Meeting Date: February 7, 2011 27 S.B. 359 (Wentworth) – Emergency Services Districts: would repeal Chapter 776 of the Texas Health and Safety Code, which governs emergency services districts in counties with a population of 125,000 or less, and convert all existing districts in counties of 125,000 or less into a district operated under Chapter 775 of the Texas Health and Safety Code. S.B. 360 (Fraser) – Rural Water Assistance Fund: would expand the permitted uses of the Texas Rural Water Assistance Fund. S.B. 361 (Duncan) – Construction Contracts: would essentially eliminate “broad form” indemnification in construction contracts by, among other things, providing: (1) that a provision in a construction contract, or in an agreement collateral to or affecting a construction contract, is void and unenforceable as against public policy to the extent that it requires an indemnitor to indemnify, hold harmless, or defend another party to the construction contract or a third party against a claim caused by the negligence or fault, the breach or violation of a statute, ordinance, governmental regulation, standard, or rule, or the breach of contract of the indemnitee, its agent or employee, or any third party under the control or supervision of the indemnitee, other than the indemnitor or its agent, employee, or subcontractor of any tier; (2) for an exception to (1), above, for a provision in a construction contract that requires a person to indemnify, hold harmless, or defend another party to the construction contract or a third party against a claim for the bodily injury or death of an employee of the indemnitor, its agent, or its subcontractor of any tier; (3) that provision in a construction contract that requires the purchase of additional insured coverage, or any coverage endorsement or provision within an insurance policy providing additional insured coverage, is void and unenforceable to the extent that it requires or provides coverage the scope of which is prohibited for an agreement to indemnify, hold harmless, or defend; (4) for certain exclusions from (1), above; and (5) that the provisions of the bill may not be waived by contract or otherwise. S.B. 364 (Ogden) – Law Enforcement: would require any police department that enforces intoxication laws to report information regarding arrests for intoxication offenses to the Texas Department of Public Safety. S.B. 366 (Ogden) – Public Information Act: would repeal the exception to the Public Information Act that protects information relating to competitive matters of a public power utility. S.B. 370 (Seliger) – Texas Water Development Board Assistance: would prohibit an applicant for financial assistance or loans from the Texas Water Development Board from receiving assistance if the applicant has failed to satisfactorily complete a request by the agency’s executive administrator or a regional planning group for information relevant to the project for which the assistance is being requested, including a water infrastructure financing survey. S.J.R. 14 (Van de Putte) – Property Tax: would amend the Texas Constitution to permit the Legislature to provide a complete residence homestead property tax exemption for the surviving spouse of a totally disabled veteran if: (1) the surviving spouse has not remarried; (2) the property was the residence homestead of the surviving spouse when the disabled veteran died; Town Council 168 of 205 Meeting Date: February 7, 2011 28 and (3) the property remains the residence homestead of the surviving spouse. Would also amend the Texas Constitution to permit the Legislature to provide a complete residence homestead property tax exemption for the owner of a property if: (1) the property remains the principal residence of one or more of the disabled veteran’s surviving children who are under the age of 18 and unmarried; and (2) the property was the principal place of residence for the children when the disabled veteran died. (Note: please see S.B. 357, above.) 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. Town Council 169 of 205 Meeting Date: February 7, 2011 1 January 28, 2011 Number 4 GOVERNOR ADDS ADDITIONAL EMERGENCY ITEMS On the first day of a legislative session that will feature a record state budget deficit, the governor declared two emergency items, both of which could affect cities: (1) protecting private property rights/addressing eminent domain issues; and (2) abolishing “sanctuary cities” for undocumented immigrants in Texas. Last week, he added more emergency items to the legislature’s agenda: (1) requiring voters to present proof of identification when voting; (2) seeking federal legislation to provide for a balanced budget amendment to the U.S. Constitution; and (3) requiring a sonogram before a woman elects to have an abortion. Numerous bills relating to a voter identification requirement have been filed (and summarized in this and previous issues of the Legislative Update). Debate on S.B. 14 by Senator Troy Fraser began on January 25, and the bill passed the Senate after much debate on the evening of January 26. (See Significant Floor Actions, below.) With regard to seeking a balanced budget amendment to the U.S. Constitution, the Texas Legislature has no authority to introduce or enact any binding legislation in that arena. Town Council 170 of 205 Meeting Date: February 7, 2011 2 OPEN MEETINGS AT THE STATE CAPITOL? YEAH, RIGHT. The Texas attorney general’s Open Meetings Act (Act) training video – which legislators are not required by law to watch – features attorney general Abbott explaining the need for open meetings laws: Thomas Jefferson once said that a public office is a public trust, and in that spirit the work of government must be open to all the people. It is a principle written into Texas law and upheld by the courts. The Sharpstown stock fraud scandal of the early 1970s serves as a reminder of the public trust and also of what happens when that trust is breached. Federal accusations and state charges were levied upon several elected officials. After the scandal, new Texas open government laws were passed to ensure that a scandal of that magnitude never happened again. Sharpstown was a bank in Houston. The scandal involved – among many other things – money for votes, bribery, and other untoward actions by the legislature. Following criminal convictions, and after a political shift brought by later elections, the legislature in 1973 passed various open government laws. One of those laws included very stringent amendments to the Act. What is most interesting about the Act, and what general Abbot fails to mention in the video, is that they do not apply to the Texas House or the Texas Senate. The Act, in one of its very first provisions, states that “[by enacting the Act,] the legislature is exercising its powers to adopt rules to prohibit secret meetings of the legislature…except as specifically permitted in the constitution.” Article III, Section 11, of the Texas Constitution, provides that “[e]ach House may determine the rules of its own proceedings...” That is the catch. Both houses of the legislature take the position that their rules of procedure, which are adopted pursuant to the constitution, trump the Act. Under those rules, the members can discuss public business freely amongst themselves, groups of their members, or even as a “caucus of the whole Senate” outside of the public’s view. One legislator was recently quoted by Texas Monthly editor Paul Burka as saying that From my perspective, it would be pretty hard to have a candid discussion if it always had to be in public. If I am trying to line up votes, there are times when I want to have a private discussion. If we couldn’t, it would put real restraints on policy making. Whether that statement is correct or not isn’t the issue. It’s the hypocrisy of some legislators concerning the Act. Many of them seem to believe strongly in open government, so long as it doesn’t apply to them. Town Council 171 of 205 Meeting Date: February 7, 2011 3 Legislative standing committees are supposed to comply with the Act as well. But the members frequently suspend the law to allow them to meet with little notice. Case in point? S.B. 751, which was filed last week. The bill amends the law relating to committee procedures to provide that “the attendance at a legislative caucus meeting by members of a standing committee who constitute a quorum of the committee is not considered a meeting of the standing committee under other law [e.g., the Act] or under the rules of procedure for the house creating the standing committee.” In addition, committee members commonly visit in private break rooms behind committee chambers to come to agreements on legislation that is before the committee. Consider a similar situation involving city councilmembers. Under the Act’s definition of a “meeting,” any time a quorum of the council is together and discusses public business, that gathering is subject to the Act. According to the attorney general’s interpretation in Opinion No. JC-0203 (April 4, 2000), if a quorum of a governmental body desires to attend the same speaking engagement or lecture, an attending member participates in the discussion, and the deliberation relates to public business, the attendance will be subject to the requirements of the Act. What does that mean in plain English? If a quorum of city councilmembers attends another entity’s meeting and public business is discussed, each member has just committed a jailable offense unless the meeting has been posted for 72 hours and other requirements are met. For example, if a quorum attends a meeting of their party’s county caucus meeting, and the discussion is regarding an issue over which the city council has authority (e.g., street repair, economic development incentives, etc.), councilmembers may not participate at all unless all of the requirements of the Act are met. Not surprisingly, when members of the legislature discovered that the law could prohibit councilmembers from testifying at a legislative committee meeting, a state law was passed to correct the problem. But only as it relates to legislative committees: “[T]he attendance by a quorum of a governmental body at a meeting of a committee or agency of the legislature is not considered to be a meeting of that governmental body if the deliberations at the meeting by the members of that governmental body consist only of publicly testifying at the meeting, publicly commenting at the meeting, and publicly responding at the meeting to a question asked by a member of the legislative committee or agency.” Ironic? You be the judge. Next week: “Public information” as practiced at the Capitol. ADDITIONAL SUNSET ADVISORY COMMISSION DECISIONS The Sunset Advisory Commission is an independent state agency that periodically reviews other state agencies to determine whether those agencies should remain in existence. After lengthy staff reports and a hearing process, the Commission held its final meeting on January 12, 2011. Several important agencies are up for review this session. Some of the most Town Council 172 of 205 Meeting Date: February 7, 2011 4 relevant final recommendations that would affect cities from some of those agencies are listed below. (Other agency’s recommendations were reviewed in the last issue of the Legislative Update.) Much more detailed information on all the agencies is available at www.sunset.state.tx.us. Texas Public Utility Commission (PUC) • Authorize the PUC to order restitution to market participants harmed by market power abuse. • Authorize the PUC to issue emergency cease-and-desist orders. (The PUC could use this authority when a company’s actions would harm the reliability of the electric grid; are fraudulent, hazardous, or create an immediate danger to public safety; or could reasonably be expected to cause immediate harm to consumers in situations in which monetary compensation would be inadequate.) • PUC should publish additional complaint and enforcement data on its Web site. (Implementation of this recommendation would increase consumers’ access to complaint and enforcement data online, and provide a more user-friendly format.) The sunset staff report on the Texas Commission on Environmental Quality recommended transferring water utility rate regulation to the PUC. It is unclear whether the Commission actually voted to approve that recommendation, but it appears that the transfer is likely. More information will be available when the relevant sunset bills are filed. Texas Water Development Board (TWDB) Bond Authority • Authorize the TWBD to issue additional bonding authority, but instead of evergreen authority, require the TWDB to return to the Legislature for additional bond authority, as needed. • Authorize the TWDB to request that the attorney general take legal action to compel a recipient of any of the TWDB’s financial assistance programs to cure or prevent default in payment. Statewide Water Planning • Add a representative of each groundwater management area that overlaps with a regional water planning group as a voting member of that regional water planning group, and require that a representative of a groundwater management area represent a groundwater conservation district that overlaps with the regional water planning group. • Require regional water planning groups to use the desired future conditions in place at the time of adoption of the TWDB’s state water plan in the next water planning cycle. Town Council 173 of 205 Meeting Date: February 7, 2011 5 • Strengthen the public notice requirements for groundwater management area meetings and adoption of desired future conditions and require proof of notice be included in submission of conditions to the TWDB. • Require groundwater conservation districts to provide a list of agenda items, rather than a summary of proposed action, in public notice of groundwater management area meetings, and require public hearings in groundwater conservation districts only on desired future conditions that are relevant to the groundwater conservation district. Aquifer Desired Future Conditions • Require groundwater management areas to document consideration of factors or criteria that comprise a reasonable, desired future condition and to submit that documentation to the TWDB. • The TCEQ should promote mediation in desired future condition petition cases where appropriate. Geographic Information Systems • The TWDB should request a full exemption for the Texas Natural Resources Information System (TNRIS) from the data center services contract at DIR to accommodate its statutory emergency management responsibilities. (The TNRIS is a division within the TWDB that serves Texas agencies and citizens as the centralized information clearinghouse and referral center for geographic information system [GIS] data, including natural resource, census, socioeconomic, and emergency management-related data.) • Clarify TNRIS duties regarding coordinating and advancing GIS initiatives. Water Conservation • As part of the state water plan, require the TWDB to evaluate the state’s progress in meeting its water needs. • Require the TWDB and Texas Commission on Environmental Quality (TCEQ), in consultation with the Water Conservation Advisory Council, to develop uniform, detailed gallons per capita daily reporting requirements, with the following exceptions: (1) the TWDB and TCEQ should not require reporting of water use information that is more detailed than an entity’s billing system is capable of producing; and (2) water use reporting applies only to entities required to submit municipal water use data to the TWDB or TCEQ. • As additional tools and data evolve, the TWDB should continue exploring ways to develop metrics for additional water use sectors and incentivize water conservation efforts. The recommendations of the Commission will be filed in the form of a “sunset bill” for each agency, and the city-related provisions of each of those bills will be summarized as they are Town Council 174 of 205 Meeting Date: February 7, 2011 6 filed in the coming weeks. Sunset decisions relating to other agencies may appear in next week’s edition of the Legislative Update. FEDERAL EMERGENCY MANAGEMENT AGENCY RELEASES DRAFT NATIONAL INCIDENT MANAGEMENT SYSTEM TRAINING PLAN The draft National Incident Management System (NIMS) training plan has been posted in the Federal Register for comment. NIMS provides the template for federal, state, tribal, and local governments; the private sector; and nongovernmental organizations to work together to prepare for and respond to emergency incidents. NIMS training is one component of comprehensive emergency management programs, which require continuous planning. The NIMS Training Plan is designed to define the national NIMS training curriculum, core competencies, and personnel qualifications, as well as to assemble and update the training guidance for available NIMS courses. This draft NIMS Training Plan would supersede the Five-Year NIMS Training Plan, originally released in February 2008. To view the draft training plan and comment instructions in the Federal Register, please go to: http://frwebgate1.access.gpo.gov/cgi- bin/TEXTgate.cgi?WAISdocID=xkXe5z/0/1/0&WAISaction=retrieve. PROPOSAL COULD LIMIT TEXAS CITIES’ INVESTMENT OPTIONS The League recently filed comments with the federal Securities and Exchange Commission voicing concerns about a report issued by the President’s Working Group on Financial Markets. The group’s report addressed the vulnerabilities of money market mutual funds which, according to the group’s report, allowed for a “run” on money market funds that significantly contributed to the financial crisis in 2008. (Specifically, the group has recommended a shift away from a stable net asset value [NAV] to a floating NAV as the method of assigning value to the funds.) The stable NAV has been a key reason why money market mutual funds appeal to a broad range of investors, including Texas cities. In fact, the Texas Public Funds Investment Act (PFIA) provides that cities and other local governments may only invest in a money market mutual fund that features a stable NAV of $1 per share. Assigning a floating NAV to money market funds would conflict with the current provision in the PFIA, and consequently would eliminate Texas cities’ ability to invest in money market funds. Town Council 175 of 205 Meeting Date: February 7, 2011 7 The League’s comments echoed the concerns of the National League of Cities and other groups, while also highlighting the conflict between the group’s proposal and state investment laws. COMMITTEES CONTINUE TO RELEASE INTERIM REPORTS House Committee on County Affairs The House Committee on County Affairs, which considered six interim charges, recently released its interim report. The report’s city-related recommendations are as follows: • Each taxing entity should be required to report all proposed bond initiatives and debt to the Texas Bond Review Board. The Legislature should ensure that implementation of this measure does not result in an unfunded mandate on the taxing entity. • The Texas Bond Review Board or the Comptroller’s Office should have a tool on its Web site so that people can enter their zip code and find an immediate tally of how much debt is being carried by their local taxing entities. • Taxing entities should provide a projected ad valorem tax impact anticipated from bonds that will be issued in the current tax year and over the life of the outstanding bonds based on projected repayment schedules. The legislature should ensure that implementation of this measure does not result in an unfunded mandate on the taxing entity. • Taxing entities should disclose the status of all existing bond projects and an accounting of expenditure of proceeds within two years of issuance and arbitrage compliance. The legislature should ensure that implementation of this measure does not result in an unfunded mandate on the taxing entity. • The legislature should consider adopting limited and reasonable measures to protect against incompatible land uses in high growth areas outside of city jurisdiction. Such measures might include granting counties optional authority to adopt regulations for performance based buffer zones or the ability to designate reserved industrial land use areas, with appropriate safeguards for both new and existing homeowners, as well as new and existing industry. • The legislature should consider granting counties optional authority to adopt regulations that would assess impact fees or “in lieu” fees for the proportional costs of widening or extending roads required to serve new development. • The legislature should continue to monitor growth management issues in counties experiencing high rates of population growth and take steps to provide county governments with the tools necessary to protect private property rights, land values, and development opportunities for all in the unincorporated areas of these counties. • The legislature should monitor and support the use of tax increment finance zones, county improvement districts, water districts, and other special service districts, since Town Council 176 of 205 Meeting Date: February 7, 2011 8 they are vital tools used to improve the quality of life and promote economic development. The full text of the report is available online at http://www.house.state.tx.us/_media/pdf/committees/reports/81interim/House-Committee- on-County-Affairs-Interim-Report-2010.pdf. House Transportation Committee The House Transportation Committee had multiple charges over the legislative interim. Of particular interest to cities is the charge to review federal, state, and local programs to promote traffic light signalization, improve traffic flow, and reduce congestion. The committee had the following recommendations on those issues: • Allowing transportation funding programs to be used for local agencies to improve their traffic signal programs, including the use of smart signal systems, and acquire the personnel necessary to maintain and improve those systems. • Encouraging local jurisdictions to: (1) use fewer traffic signals; (2) use alternatives to traffic signals during off-peak hours; and (3) use alternatives to traffic signals, such as flashing yellow or red arrows, green balls for unprotected left turns, traffic roundabouts, superstreets, and continuous flow intersections to improve mobility. • The Texas Department of Transportation (TxDOT) should: (1) adopt a standard for unprotected left turns to allow traffic to move more freely through intersections; (2) evaluate the criteria used to justify the use of traffic signals; and (3) establish more effective guidelines for the use of traffic signals with a goal of reducing the number of traffic lights in actual use. The committee also had recommendations related to road worker safety, toll roads, metropolitan planning organizations, transportation in rural areas related to agriculture, and TxDOT’s implementation of sunset recommendations. The full report is available at http://www.house.state.tx.us/_media/pdf/committees/reports/81interim/House-Committee- on-Transportation-Interim-Report-2010.pdf. House Committee on Ways and Means The House Committee on Ways and Means addressed six interim charges. The committee did not make any recommendations on the six charges, but did conduct interim hearings to gather information related to each. The committee’s city-related charges and a brief summary of the relevant information are as follows: Examine the state’s major tax exemptions to determine how the current costs and benefits compare with the original legislative objectives. Make recommendations for adjustments as needed. Town Council 177 of 205 Meeting Date: February 7, 2011 9 • The committee received oral and written testimony from the comptroller’s office and various interest groups in examining exemptions to the franchise tax, property tax, sales tax, and severance tax. The report included a discussion of the “Freeport” property tax exemption, tax increment financing, and a number of sales tax exemptions that affect cities. Study methods for improving the quality and uniformity of, and communications to taxpayers about, property tax appraisals. Monitor the implementation of property tax appraisal and alternative valuation appeal reforms enacted by the Eighty-First Legislature. • The committee summarized legislation adopted during the last legislative session to address certain appraisal issues, including legislation adopted to address the issue of excluding foreclosed properties from appraisals, the issue of appraising property at its “highest and best use” value, and legislation amending the appraisal protest process. • The committee looked at H.B. 2982, passed in 2007, which changed the methodology for oil and gas valuation in the appraisal process. Counties argued to the committee that the new valuation formula has created a loss in revenue and shifted the tax burden from the oil and gas industry to private property owners. The oil and gas industry testified that the current law is working, and any difference in valuation can be attributed to market forces. Study the tax structure as applied to cable versus satellite service to determine if any unfair competition results from state tax policies. • The committee broadly addressed the issue of the effect of municipal franchise fees on telecommunications. According to the report, the cable industry believes that franchise fees and sales taxes imposed on cable companies put cable companies at a distinct disadvantage when competing with satellite companies, which do not pay franchise fees. Satellite providers do not believe they should be subject to access line fees because they do not use the public rights-of-way. WHAT’S YOUR AREA OF EXPERTISE OR INTEREST? JOIN YOUR FAVORITE E-LIST The TML staff is gathering e-mail addresses from city officials (elected or appointed) who are willing to provide testimony during the 2011 legislative session, want to be kept “in the loop” on certain subject matters, or are willing to simply provide their perspective on a particular legislative matter. Town Council 178 of 205 Meeting Date: February 7, 2011 10 If you would like to participate in this E-List project, simply go to http://www.tml.org/genform/E-List.asp and fill out the online form. If you have any questions, please contact JJ Rocha at jj@tml.org or 512-231-7400. SIGNIFICANT FLOOR ACTIONS S.B. 14 (Fraser), requiring a voter to present proof of identification. As passed by the Senate, the bill would: (1) require the voter registrar of each county and the secretary of state to provide notice of voter identification requirements on voter registration certificates and to educate voters about the requirements through certain programs by publishing notice on certain Web sites; (2) require a voter under 70 years of age to present to an election officer at the polling place a voter registration certificate and an acceptable form of identification that contains a photo and is a driver’s license, a military identification card, a citizenship certificate, a Texas concealed handgun license, or an unexpired passport, and allow certain forms of identification listed herein to be used even if expired for up to 60 days after expiration; (3) provide that, if a voter does not present acceptable identification, the voter shall be accepted for provisional voting only; (4) require an election officer to provide information on how to obtain identification without a fee to each voter who presents insufficient identification at time of voting; (5) modify the types of acceptable voter identification documents; (6) make an offense under this section a second degree felony or a state jail felony if the person is convicted of attempt to vote illegally; (7) provide that a voter who presents a voter registration certificate indicating that the voter is currently registered in the precinct, but whose name is not on the precinct list of registered voters, shall be accepted for voting if the voter’s identity can be verified from the proof presented; (8) provide that a provisional ballot may be accepted only if: (a) the voter presents acceptable proof of identification at the time the ballot is cast; (b) the voter submits a copy of the identification to the voter registrar by personal delivery or by mail for examination by the early voting ballot board not later than the sixth business day after the date of the election; or (c) the voter executes an affidavit stating that the voter is indigent or has a religious objection to being photographed; (9) require election judges and clerks to be trained on this voter identification law; (10) require the presiding election judge to post a sign stating the list of acceptable forms of identification; (11) provide for certain exceptions to the bill’s requirements for disabled persons; and (12) require the county clerk and secretary of state to provide notice that is separate from other notices required by law of the bill’s requirements in each language in which voter registration materials are available. CITY-RELATED BILLS FILED H.B. 159 (Raymond) – Texas Municipal Retirement System (TMRS): would: (1) allow an individual who has retired from TMRS, and who has returned to work at the same city at least five years since the date of retirement, to receive an additional benefit equal to the amount of deposits and interest that were credited during the time of re-employment; and (2) preclude anyone who is already employed by an affected city at the time the bill goes into Town Council 179 of 205 Meeting Date: February 7, 2011 11 effect from receiving the additional benefit. (Note: This bill summary has been slightly revised from the previously-published summary.) H.B. 664 (Larson) – Metropolitan Planning Organizations: would provide that, to be eligible to be a voting member of a metropolitan planning organization policy board, a member must be an elected official. H.B. 715 (Hochberg) – Elections: would: (1) designate the secretary of state as the voter registrar for purpose of the registration of voters and maintenance of the list of registered voters; (2) require the secretary of state to automatically register any individual who is eligible to vote and who is issued or makes a change to a Texas driver’s license or personal identification card by the Department of Public Safety (DPS); (3) require the secretary of state to post registration application forms on its website in English and any other language other than English for which over five percent of the total voting age citizens of a political subdivision in this state are members of that single minority language group; (4) require the secretary of state to adopt rules establishing standards used for the verification of information on a voter registration application; and (4) require the DPS and secretary of state to develop printed materials and a public service announcement to inform the public about automatic voter registration. H.B. 725 (Callegari) – Water Districts: would make numerous changes to the laws that affect water districts. Of particular interest to cities, the bill would – among many other things – provide that: (1) to be annexed for limited purposes under a strategic partnership agreement, an area must be in the city’s extraterritorial jurisdiction and contiguous to the corporate or limited purpose boundaries, unless the district consents to noncontiguous annexation pursuant to a strategic partnership agreement with the city; (2) a municipal management district may enact and apply to residential property in the district an impact fee, assessment, tax, or other requirement for payment for water, sewer, drainage, reclamation, flood control, road, or park and recreational services or improvements of a district; (3) a city may enter into a contract with a water district or with a non-profit water supply corporation under which the district or corporation will acquire for the benefit of and convey to the city, either separately or together, one or more water, sewer, drainage, or road projects; (4) that the contract under (3), above, may provide that any payments due are payable from and are secured by a pledge of a specified part of the revenues of the city, including revenues from municipal sales and use taxes; (5) a peace officer contracted for by a water district, individually or through a county, sheriff, constable, or city, is an independent contractor, and the district is responsible for the acts or omissions of the peace officer only to the extent provided by law for other independent contractors; (6) a water district providing potable water or sewer service to household users may, separately or jointly with another district, city, or other political subdivision, establish, operate, and maintain, finance with ad valorem taxes, mandatory fees, or voluntary contributions, and issue bonds for a fire department to perform all fire-fighting services within the district and may provide for the construction and purchase of necessary buildings, facilities, land, and equipment and the provision of an adequate water supply; and (7) a city may provide in its written consent for the inclusion of land in a district that is initially located wholly or partly outside the corporate limits of the Town Council 180 of 205 Meeting Date: February 7, 2011 12 city that a contract (“allocation agreement”) between the district and the city be entered into prior to the first issue of bonds, notes, warrants, or other obligations of the district. (Note: Any city in an area with water districts should carefully review the provisions of this bill to determine its impact on the city’s relationship with those districts.) H.B. 735 (Patrick) – Major Events Trust Fund: would expand the definition of “event” for purposes of the major events trust fund to include the Academy of Country Music Awards or a national political convention of the Republican National Committee or the Democratic National Committee. H.B. 744 (Raymond) – Sales Tax: would exempt the sale, lease, or rental of certain computer equipment by an eligible small business from the sales tax if the item: (1) is for the exclusive use and benefit of the business; (2) is necessary for the operation of the business; (3) replaces computer equipment with respect to the sale, lease, rental, or use of which the business paid the tax imposed by this chapter; and (4) was sold, leased, rented, or used not later than the fifth anniversary of the date the business initially qualifies as an eligible small business. H.B. 745 (Johnson) – Eminent Domain: would amend the provision in current law that requires an entity that makes a final offer to a property owner to acquire real property to provide the owner with a “landowner’s bill of rights.” Specifically, the bill would provide that the bill of rights must include a provision informing the property owner that the entity is required to provide the information in English, Spanish, or any other language requested by the property owner. H.B. 746 (Johnson) – Eminent Domain: would modify the damages available to a property owner in a condemnation proceeding by providing that the special commissioners shall admit evidence relating to, among other things, the injury to the property owner, including, if the condemnation makes relocation of a homestead, farm, or business necessary, the financial damages associated with the cost of relocating from the condemned property to another property: (1) in the same city or, if the property is not in an incorporated area, the same county; and (2) that allows the property owner, without the necessity of incurring an amount of debt, debt service, or total projected interest obligation that is higher than the property owner was subject to immediately before the condemnation, to: (a) have a standard of living comparable to the property owner’s standard of living immediately before the condemnation, if the condemned property is a homestead that is habitable; or (b) operate a comparable farm or business, if the condemned property is a farm or business. H.B. 747 (Johnson) – Eminent Domain: would add additional requirements to the current condemnation process that would mandate a governmental entity that wants to acquire real property for a public use to disclose to the property owner at the time an offer to purchase is made: (1) in a written statement, the reasons the acquisition of the property is necessary for public use; and (2) on request of the owner, information and records relating to the governmental entity’s analysis in selecting the property, including alternative properties considered. Town Council 181 of 205 Meeting Date: February 7, 2011 13 H.B. 758 (Eiland)—Mandatory Health Benefits: would require a health benefit carrier, including a benefits pool, to cover any emergency or medical expenses incurred because of an injury caused by the insured’s intoxication or by the insured being under the influence of drugs. H.B. 759 (Eiland) – Appraisals: would require an owner of a facility that stores oil, gas, or other hydrocarbons to report to the appraisal district the owners of the gas, oil, or other hydrocarbons and the type and volume of the hydrocarbon. H.B. 760 (Eiland) – Government Hospitals and Clinics: would exempt from the term “health spa” a hospital or clinic owned or operated by a political subdivision of the state and thereby exempt the same from certain regulations imposed on health spas. H.B. 764 (Lozano) – Sex Offenders: would permit a general law city to prohibit a registered sex offender from going in, on, or within a specified distance of a child safety zone within the city. H.B. 766 (Lozano) – Sales Tax: would exempt textbooks for university and college courses from the sales tax if the book is: (1) written, designed, and produced for educational, instructional, or pedagogical purposes; (2) bought by a full-time or part-time student enrolled at a state college or university; and (3) required for a course at the state college or university. H.B. 767 (Lozano) – Property Tax: would entitle a disabled veteran to an exemption from taxation of the total appraised value of the veteran’s residence homestead (Note: H.B. 3613, passed in 2009, already entitles a disabled veteran to a residence homestead exemption.) H.B. 773 (Anchia) – Energy Efficiency: would: (1) establish the state-level Energy Efficiency Council (EEC) to be supported by the State Energy Conservation Office (to the extent resources are available); (2) require the EEC to develop and periodically update a list of currently operating energy efficiency programs in the state; and (3) authorize the EEC to submit to various entities, including cities, recommendations on means to encourage greater energy efficiency. H.B. 774 (Anchia) – Renewable Energy: would provide: (1) for the establishment of additional goals for renewable energy capacity in the state; (2) that the Public Utility Commission shall adopt rules necessary to administer and enforce the goals; and (3) that, at a minimum, the rules shall establish the minimum annual renewable energy requirement for each retail electric provider, municipally owned utility, and electric cooperative operating in this state in a manner reasonably calculated by the commission to produce, on a statewide basis, compliance with the requirements. (Companion bill is S.B. 330 by Watson.) H.B. 781 (P. King) – Property Tax: would provide a complete residence homestead property tax exemption for the surviving spouse of a totally disabled veteran who has not remarried since the death of the disabled veteran. (Note: please see H.J.R. 72, below.) Town Council 182 of 205 Meeting Date: February 7, 2011 14 H.B. 782 (Y. Davis) – Municipal Bonds: would provide that neither a city nor a Type B economic development corporation may issue bonds to purchase property unless the city or corporation first obtains an independent appraisal of the property’s market value. H.B 783 (Y. Davis) – Law Enforcement: would: (1) make impersonation of a peace officer or other public servant with the intent to commit an offense a second-degree felony; and (2) create an offense for providing or possessing a uniform bearing an insignia of a law enforcement agency that identified as person as a peace officer, or intentionally or knowingly misrepresenting that uniform as property belonging to a law enforcement agency. H.B. 784 (Y. Davis,) – Property Tax: would require the Sunset Commission to evaluate each property tax exemption provided by state statute at least once every six years, and make recommendations for retaining, repealing, or amending each exemption. H.B. 786 (Y. Davis) – Mandatory Health Benefits: would generally require health benefit plans to provide coverage for HIV tests. (Companion bill is S.B. 241 by Ellis). H.B. 787 (Kuempel) – Abandoned Watercraft and Aircraft: would: (1) authorize a law enforcement agency to seize and auction an abandoned aircraft; and (2) provide that an aircraft or watercraft could, under certain circumstances, constitute a junked vehicle and a nuisance subject to abatement. H.B. 798 (Creighton) – Property Tax: would reduce the property tax appraisal cap on homesteads from ten to five percent. (Note: please see H.J.R. 74 below.) H.B. 802 (Bonnen) – Alarm Sales Solicitation: would provide that an alarm systems company, including any employee or contractor of an alarm systems company, engaged in business or performing a service in a city must comply with any ordinance regulating the unsolicited promotion, sale, or offer for sale of goods or services. H.B. 803 (Bonnen) – Property Tax: would reduce the penalty for failure to make a timely installment payment of ad valorem taxes on property in a disaster area from twelve percent for each month the tax remains unpaid, to six percent for each month the tax remains unpaid, plus interest. H.B. 804 (Lewis) – Elections: would provide that a person commits a second degree felony if he or she is not a United States citizen and votes in an election held in Texas. H.B 806 (D. Howard) – Elections: would provide, among other things, that a candidate for public office: (1) who files a declaration of intent that he or she will not exceed $500 in political expenditures in the election is not required to appoint a campaign treasurer unless the candidate exceeds the aggregate amount of $500 in political expenditures; and (2) is exempt from filing any additional reports if the candidate does not intend to make political expenditures that in the aggregate exceed $500 in connection with the election. Town Council 183 of 205 Meeting Date: February 7, 2011 15 H.B. 812 (P. King) – Fire Peace Officers: would make fire marshals, fire investigators, and some county fire personnel authorized peace officers under the Code of Criminal Procedure. H.B. 815 (Paxton) – Transportation Funding: would provide that the proceeds from the collection of state sales taxes on the sale, storage, or use of new and used motor vehicle tires and new and used motor vehicle parts shall be deposited to the credit of the state highway fund. (Please see H.J.R. 75, below.) H.B. 816 (Hunter) – Health Care Benefit: would prohibit all health benefit plans, including benefit pools, from covering the cost of an abortion unless the plan provides a specific premium and plan solely for coverage of abortions. (Companion bill is S.B. 404 by Hegar.) H.B. 820 (Farrar) – Air Quality: would require additional on-site air quality monitoring for sites that qualify as “major sources” under the federal Clean Air Act. H.B. 821 (Farrar) – Municipal Solid Waste: would: (1) require the Texas Commission on Environmental Quality to pass a rule prohibiting a person from intentionally or knowingly disposing of used electronic equipment eligible for manufacturer recovery in a municipal solid waste landfill; (2) create a penalty for disposing of or accepting such electronic waste in a municipal solid waste landfill; and (3) require the owner or operator of a municipal solid waste facility to make a good faith effort to both post a sign in a conspicuous location stating that used electronic equipment eligible for manufacturer recovery is not accepted and notify any solid waste collector registered to dispose at the landfill that such equipment is not accepted in order to avoid liability for accepting such waste, even unknowingly. H.B. 830 (Dutton) – Air Quality: would require the Texas Commission on Environmental Quality to consider the cumulative effects on public health and physical property of expected air contaminant emissions from a facility in the area of the facility when issuing or renewing certain emissions permits for new construction or modification of an existing facility. H.B. 831 (Craddick) – Public Hospitals: would: (1) authorize certain entities, including a city or municipal hospital authority, to borrow money for purposes of a hospital owned or operated by the entity and secure the loan with: (a) revenue from the hospital that is not pledged to pay the entity’s bonded indebtedness; or (b) tax revenue to be collected by the entity during the twelve months following the date of the pledge; and (2) establish a loan maturation date. H.B. 833 (Lozano) – Property Tax: would provide a complete residence homestead property tax exemption for the surviving spouse or surviving children of totally disabled veterans. (Note: please see H.J.R. 76, below.) Town Council 184 of 205 Meeting Date: February 7, 2011 16 H.B. 834 (Hernandez Lunz) –Mandated Health Benefit: would require a health benefit provider, including a benefits pool, to cover the cost of mammography, low dose mammography, and physician recommended supplemental breast cancer screening. H.B. 837 (V. Taylor) – Motor Vehicle Stops: would: (1) authorize a peace officer who makes a motor vehicle stop to request and obtain: (a) a digital thumbprint from the vehicle’s operator if the person fails to provide a driver’s license, a passport, or other form of photographic identification; and (b) an ink thumbprint if the operator fails to provide identification described in (a) above and the officer issues a citation; (2) authorize a law enforcement agency to maintain the thumbprint beyond the duration of the stop if the person is cited or arrested during or as a result of the stop; (3) require discard of the thumbprint after the charge is dismissed, the person is acquitted, or the person is convicted of an offense punishable by fine; and (4) require a court to notify thumbprint custodians after disposition of a defendant’s case. H.B. 838 (Elkins) – Immigration: would: (1) prohibit a city from adopting a policy under which the city’s police department or other city official would not fully enforce state or federal laws relating to immigration; (2) penalize a city that adopts such a policy by taking away state funds, not allowing a city to retain unexpended state money, and prohibiting a city from imposing a tax other than a property or additional sales and use tax; (3) require the attorney general to determine if a city is ineligible to retain state money or impose a property or additional sales and use tax and provide notice to the city and comptroller of the determination; and (4) allow a city to appeal a determination by the attorney general to a Travis County district court. H.B. 843 (Geren) – Property Tax: would require the assessor for a taxing unit to deliver a tax bill by electronic means to a person listed on the tax roll and that person’s authorized agent if: (1) the assessor has implemented procedures to permit delivery of a bill by electronic means; and (2) on or before September 15 the person or person’s authorized agent submits a written request to receive an electronic tax bill to the assessor. An assessor who delivers a tax bill electronically under this section does not need to mail the same bill. H.B. 854 (Dutton) – Public Information Act: would amend the law enforcement exception in the Public Information Act by providing that information held by a law enforcement agency is excepted from disclosure only if: (1) the release of the information would unduly interfere with the detection, investigation, or prosecution of crime; and (2) the information relates to an ongoing investigation or conduct that remains subject to prosecution. H.B 856 (Dutton) – Water and Sewer Utilities: would: (1) require a non-municipally- owned water or sewer utility to provide the city’s governing body with a statement of intent to change its rates at least 120 days before the proposed effective date of the rate change; (2) suspend the proposed rates once a ratemaking hearing is scheduled by the city’s governing body; and (3) require a non-municipally-owned water or sewer utility to file a statement of intent to increase its rates no later than sixty months after the effective date of the utility’s last rate increase, with some exceptions. Town Council 185 of 205 Meeting Date: February 7, 2011 17 H.B. 864 (Fletcher) – Evading Arrest: would provide that the punishment for the offense of evading arrest or detention is: (1) a state jail felony if the actor has been previously convicted of the same offense; (2) a third-degree felony if the actor uses a vehicle while in flight, another person suffers bodily injury as a result of the flight, or the actor uses a tire deflation device against the officer; or (3) a second-degree felony if another person dies as a result of the flight or suffers serious bodily injury as a result of the use of a tire deflation device. H.B. 876 (C. Howard) – Financial Statements: would provide that financial disclosure statements required for elected officers, the city manager, and the city attorney in a city with over 100,000 population are not required from a municipal officer who doesn’t receive compensation for serving as an officer, or from a candidate for such office. H.B. 868 (Huberty) – Property Tax: would reduce the property tax rollback rate from 108 percent to the lesser of either 105 percent or the rate of inflation. H.B. 874 (C. Howard) – Property Tax: would do the following: (1) eliminate the requirement that appraisal value notices must include estimated tax liability based on an application of last year’s tax rate to this year’s appraised value; (2) require tax assessors to submit the appraisal roll to a city not later than 21 days after the date the appraisal roll is certified to the assessor; (3) require a city to calculate its effective tax rate, same services tax rate, and rollback tax rate not later than 30 days after it receives the certified appraisal roll from the assessor; (4) require the person who calculates the effective tax rate, same services tax rate, and rollback rate to submit the rate to the city council within five days of making the calculation; (5) require an officer or employee designated by the city to either mail to each property owner, or publish in the newspaper, tax rate information at least 14 days before the date of the first meeting of the city council to consider the budget; (6) amend various sections of state law to include the application of a same services tax rate; (7) extend from 60 to 90 days the deadline for a city to adopt its tax rates after receiving a certified appraisal roll; (8) provide that if the requirements of number 5, above, are not met due to circumstances beyond the city’s control, such as a natural disaster, the city must adopt a default property tax rate for the year that is the lower of the same services tax rate or last year’s adopted rate; (9) eliminate the application of the default tax rate provision in cases where the city council fails to meet the statutory deadline for adopting a tax rate (Note: it appears that the confusing provisions in numbers 8 and 9, above, may be unintended features of this bill); and (10) require a city council, before giving notice of tax increase hearings, to take a record vote on the proposal to increase taxes and that the motion for that vote must be as follows: “I move that a proposal to increase property taxes by the adoption of a tax rate of (specify tax rate) be placed on the agenda for the meeting to be held on (date at which the governing body anticipates adopting the tax rate).” H.B. 875 (C. Howard) – Law Enforcement: would: (1) require a sheriff or any other office in charge of a correctional facility in which a defendant is confined awaiting trial for a felony or certain intoxication offenses to make a reasonable effort to determine the defendant’s Town Council 186 of 205 Meeting Date: February 7, 2011 18 citizenship status and contact federal immigration officials within forty-eight hours if the status cannot be determined; (2) require a sheriff or any other office in charge of a correctional facility in which a defendant is confined awaiting trial for a felony or certain intoxication offenses to notify the judge or magistrate authorized to determine bail release if the defendant is not in the country legally; and (3) create a rebuttable presumption at any bail hearing that the defendant presents a flight risk. H.B. 878 (C. Howard) – E-verify: would: (1) require a governmental entity, including a city, to participate in e-verify and check the immigration status of all new employees using e- verify; (2) prohibit a governmental entity, including a city, from entering into a contract with a contractor who does not participate in e-verify; and (3) make it an unlawful employment practice for an employer, including a city, to retain an undocumented immigrant when discharging a citizen or permanent resident if the city is not participating in e-verify. H.B. 879 (C. Howard) – Property Tax: would reduce the property tax appraisal cap on homesteads from ten to five percent. H.B. 884 (D. Howard) – Governmental Immunity: would waive governmental immunity for a city or other governmental entity in a suit where a nurse alleges the city took adverse employment action against the nurse in retaliation for a report required by state laws governing nurse conduct. H.J.R. 69 (Kolkhorst) – Federal Constitutional Amendment: requests a constitutional convention for an amendment to the U.S. Constitution that would provide that states have the sole power to regulate education and health. H.J.R. 71 (Larson) – Maximum Salary for Elected Public Officers: would amend the Texas Constitution to provide that the annual salary for an elected public officer in this state, other than a member of the judiciary, may not exceed the average salary paid to a full-time classroom teacher in the five school districts in this state with the largest enrollments for the preceding school year. H.J.R. 72 (P. King) – Property Tax: would amend the Texas Constitution to permit the Legislature to provide a complete residence homestead property tax exemption for the surviving spouse of a totally disabled veteran that has not remarried since the death of the disabled veteran. (Note: please see H.B. 781, above.) H.J.R. 74 (Creighton) – Property Tax: would amend the Texas Constitution to authorize the legislature to reduce the property tax appraisal cap on homesteads from ten to five percent. (Note: please see H.B. 798, above.) H.J.R. 75 (Paxton) – Transportation Funding: would amend the Texas Constitution to provide that, subject to legislative appropriation, allocation, and direction: (1) three-fourths of the net revenue that is remaining after payment of all refunds allowed by law and expenses of collection that is derived from taxes on motor fuels and lubricants used to propel motor Town Council 187 of 205 Meeting Date: February 7, 2011 19 vehicles over public highways – and on new and used motor vehicle tires and new and used motor vehicle part – shall be used for the sole purpose of constructing and maintaining public highways; and (2) one-fourth of the net revenue shall be allocated to the available school fund. (Please see H.B. 815, above.) H.J.R. 76 (Lozano) – Property Tax: would amend the Texas Constitution to authorize a complete residence homestead property tax exemption for the surviving spouse or surviving children of totally disabled veterans. (Note: please see H.B. 833, above.) S.B. 350 (Williams) – Texas Municipal Retirement System: would: (1) combine the municipality accumulation fund, employees saving fund, and current service annuity reserve fund into one fund to be called the benefit accumulation fund; and (2) require all benefits to be paid into and out of the benefit accumulation fund. (Note: This bill summary has been slightly revised from the previously-published summary.) S.B. 374 (Wentworth) – Law Enforcement Fees: would increase the fee paid by a defendant for executing or processing an issued arrest warrant, capias, or capias pro fine to $75, to be paid to the executing or processing law enforcement agency after conviction, upon the agency’s request. S.B. 375 (Wentworth) – Public Information Act: would provide that certain types of information are expressly public unless they are made confidential under the Public Information Act or other law. S.B. 383 (Harris) – Court Costs: would: (1) require a defendant to pay a $45 fee as a cost of court on conviction of certain intoxication offenses; and (2) authorize a county that maintains a certified breath alcohol testing program to keep the fee, in addition to other court costs relating to a breath alcohol testing program to which the county is entitled. S.B. 393 (Patrick) – Sales Tax: would do the following regarding the reallocation of city sales tax revenues due to a mistake: (1) allow a taxpayer to amend a tax report for a previous reporting period within the statute of limitations; (2) grant cities a right to notification and independent audit review regarding reallocation decisions; and (3) allow cities to view certain information concerning the pending reallocation, regardless of whether the information is confidential. (Companion bill is H.B. 590 by Thompson.) S.B. 395 (Patrick) – Intoxication Offenses: would make changes and add requirements to deferred adjudication guidelines, nondisclosure order petitions, and enhancement for certain intoxication offenses. S.B. 396 (Deuell) – Firefighter Death Investigation: would broaden the state fire marshal’s authority to investigate firefighter deaths including any factors that may have contributed to a death in connection with an on-duty incident. Town Council 188 of 205 Meeting Date: February 7, 2011 20 S.B. 402 (West) – Community Land Trusts: would provide that the governing body of a city or county by ordinance or order may create or designate one or more community land trusts (CLTs), including a housing finance corporation or a land trust operated by a community housing development organization certified by the city or county, to operate in the city or county. (Note: A CLT is an affordable housing tool generally used in gentrifying areas in which the CLT acquires title to land, sells or leases housing units located on the land, and leases the land through ground leases with terms of at least 50 years.) Land in a CLT would be tax-exempt. S.B. 403 (Eltife) – Gas Ratemaking: would – among other things – provide that, in establishing a gas utility's rates, the regulatory authority (a city or the Railroad Commission) shall allow expenses for pension and other postemployment benefits, as determined by actuarial or other similar studies in accordance with generally accepted accounting principles, in amounts the regulatory authority finds reasonable and necessary. S.B. 404 (Hegar) – Health Care Benefit: this bill is the same as H.B. 816, above). S.B. 409 (Estes) – Property Tax: would: (1) require the State Soil and Water Conservation Board, with the assistance of the comptroller, to develop standards for determining whether land qualifies for appraisal based on water-stewardship use; (2) provide that the chief appraiser an appraisal review board shall apply the standards adopted by the State Soil and Water Conservation board and comptroller. S.B. 412 (West) – Public Improvement Districts: would, among other things, provide that costs of improvements in a public improvement district may be paid or reimbursed by any combination of certain methods if the improvements are dedicated, conveyed, leased, or otherwise provided to a city, county, or related entity for the benefit of the city, county, or related entity. S.J.R. 15 (Wentworth) –U.S. Constitution: would apply to the Congress of the United States to call a convention to propose amendments to the U.S. Constitution to provide for: (1) congressional term limits; (2) the line-item veto; (3) a balanced federal budget; (4) a limit on federal debt; and (5) the repeal of federal law by two-thirds of the several states. S.J.R. 16 (Estes) – Property Tax: would amend the Texas Constitution to include water stewardship as a category of open-space land to be taxed on the basis of its productive capacity. 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. Town Council 189 of 205 Meeting Date: February 7, 2011 1 February 4, 2011 Number 5 THE STATE BUDGET: WHAT IS THE CITY MESSAGE? Preliminary analysis of the proposed House and Senate budgets makes one thing clear: what little money cities currently get from the state may be dramatically cut. (See article elsewhere in the issue for details.) And those cuts may get worse as the budget process proceeds. So what should city officials do now? Most importantly, we must keep perspective. In the best of all worlds, the budget-writers would have left cities untouched. But these are extraordinary times, and the state’s budget deficit is so vast that it is a virtual certainty that cities will face funding cuts. Far worse, however, would be legislation that requires cities to maintain current service levels in the state programs that are being cut (unfunded mandates), or that would limit the ability of cities to fund such vital services as police, fire, streets, and trash collection (artificial revenue restrictions). The vast majority of our efforts must be to prevent these mandates and/or revenue restrictions. This doesn’t mean that city officials shouldn’t speak out against the proposed cuts; they should. But it also means that in exchange for taking our share of cuts (cuts that are but a drop in the bucket compared to those faced by schools and many state agencies), cities should insist that they be allowed to handle those cuts as they deem necessary and continue to provide essential services as each community sees fit. We must, in other words, preserve local control. Local control is more important than state funding; it always has been, and must always be. Town Council 190 of 205 Meeting Date: February 7, 2011 2 AND THE CUTS KEEP ON COMING… Last week, we reported on various cuts in the House version of the proposed state budget (House Bill 1) that would affect cities, including reductions and/or elimination of local parks funding, the cities’ portion of the mixed beverage tax, the major events trust fund, and money to serve the homeless. Further review of House Bill 1 and the Senate version of the proposed state budget (Senate Bill 1) reveals additional cuts in funding – or increases in city collections for the state – that would negatively impact services provided by cities: • Pension Fees: Current law states that the governing board of any public retirement system may vote to make an annual contribution, not to exceed 50 cents for each active member and annuitant of the retirement system, to the state Pension Review Board. A rider in the Pension Review Board’s bill pattern, which is contingent upon legislation passing this session, would make that 50-cent fee mandatory. • Libraries: Both budget bills drastically reduce funding for the Lone Star Library Grant Program, which provides aid to local libraries. Although not entirely eliminated, the program can expect $20 million less (a 67-percent reduction) in the upcoming biennium. The bills also reduce funding for the cost-saving resource sharing program at the State Library and Archives Commission. • Law Enforcement: Both budget bills would reduce funding for police officer training, which is provided by the Texas Commission on Enforcement Officer Standards and Education. In addition, the bills would also eliminate funding for the Texas Automobile Burglary and Theft Prevention Authority (TABTPA), which awards grants to police stations to assist in preventing and investigating automobile theft. In 2010, TABTPA awarded $14.1 million in grants to local police departments. Those grants were funded by a $1 annual fee on auto insurance policies in the state. The bills would continue that fee, but would divert the revenue into the state’s general fund. PUBLIC INFORMATION AND THE LEGISLATURE? NOT SO MUCH. The Texas attorney general’s handbook on the Public Information Act (Act) explains that “[g]overnment transparency and openness are fundamental to American democracy” and, in Texas, the Act “is one of the primary mechanisms by which members of the public hold their governmental accountable.” So how do the Act’s requirements relating to cities, as well as the efforts of cities to improve government transparency, stack up against the “openness” of the records of the state legislature? Town Council 191 of 205 Meeting Date: February 7, 2011 3 Texas cities and city councils are subject to the Act. That means, for example, that communications about city business that occur between members of a city council and a citizen by letter or electronic mail are generally subject to release to the public. Those same communications between a citizen and a legislator may, however, be protected from public release. Chapter 306 of the Texas Government Code exempts legislators from having to disclose their constituent communications. The provisions of Chapter 306 trump the Act, thereby relieving legislators from ordinary public disclosure requirements. The legislature, in the Act itself, explains that [u]nder the fundamental philosophy of the American constitutional form of representative government that adheres to the principle that government is the servant and not the master of the people, it is the policy of this state that each person is entitled, unless otherwise expressly provided by law, at all times to complete information about the affairs of government and the official acts of public officials and employees. The people, in delegating authority, do not give their public servants the right to decide what is good for the people to know and what is not good for them to know. The people insist on remaining informed so that they may retain control over the instruments they have created. Apparently, access to communications between constituents and members of the city council is fundamental to maintaining our democratic government, but communications between constituents and members of the state legislature are not. Might this be another case of hypocrisy when it comes to state-level open government? What about other efforts of cities to improve government openness and accountability? The Texas comptroller launched a local government transparency program in December 2009. By August 2010, more than 200 local governments—including cities, counties, and school districts—had earned a spot in the comptroller’s “leadership circle” by posting budgets, financial information, and/or check registers online. As of January 2011, 97 cities had received a leadership circle designation. Unfortunately, the legislature cannot boast of such transparency. This legislative session, Senator Kirk Watson proposed to add some transparency to the state budget process by requiring the conference committee report on the budget to be available for five days prior to its passage. His proposal did not pass. As recently noted by Texas Monthly editor Paul Burka, “real transparency will require a fundamental change in the entire budget adoption process. All deliberations – the committee, the working groups, conference committee working groups, those of the conference committee itself – should be held in public.” Burka notes that under the current process, “[f]inding out the time and place of working group meetings is a mystery akin to cracking the DaVinci Code.” This Town Council 192 of 205 Meeting Date: February 7, 2011 4 “working group” approach, which assigns particularly complex issues to be debated in a small group setting has – as Burka explains – increasingly occurred behind closed doors. Do individual legislators and the legislative leadership have the commitment to make the state budget process more transparent? Ultimately, Senator Watson was able to garner support only for a 48-hour “layout” of such bills. Perhaps the citizens of Texas should request that the comptroller grade the transparency of the legislature and its budget process? FINAL REPORT ON SUNSET ADVISORY COMMISSION DECISIONS: TEXAS DEPARTMENT OF TRANSPORTATION The Sunset Advisory Commission is an independent state agency that periodically reviews other state agencies to determine whether those agencies should remain in existence. After lengthy staff reports and a hearing process, the Commission held its final meeting on January 12, 2011. Several important agencies are up for review this session, and many of those have been reported on in previous editions of the Legislative Update. Some of the most relevant final recommendations from the Commission’s review of the Texas Department of Transportation are listed below. The recommendations come from a “special purpose review” of the Texas Department of Transportation (TxDOT) that is a follow-up on the full sunset review conducted in 2008. At that time, the Commission adopted and forwarded recommendations on TxDOT to the Eighty-First Legislature. However, the legislature failed to pass the TxDOT sunset bill that session. Much more detailed information on all the agencies is available at www.sunset.state.tx.us. (Note: Sunset staff recommended that cities be required “to pay the costs of condemnation if they do not allow relocation of billboards affected by state roadway projects within their jurisdictions.” That recommendation was not adopted by the Commission, but legislation to implement it is likely to be filed.) Trust in TxDOT • Continue TxDOT for four years. • Abolish the Texas Transportation Commission and replace it with an appointed commissioner of transportation. • Request that the Senate Committee on Transportation and Homeland Security and the House Committee on Transportation continue providing necessary oversight of TxDOT and the state’s transportation system. Transparency and Accountability • Require TxDOT’s chief financial officer to report directly to the commissioner of transportation. Town Council 193 of 205 Meeting Date: February 7, 2011 5 • Require TxDOT to evaluate the performance of its administrative and decision-making staff to determine whether employees should retain their positions. Transportation Planning Process • Require TxDOT to redevelop and regularly update the long-range Statewide Transportation Plan describing total system needs, establishing overarching statewide transportation goals, and measuring progress toward those goals. • Require TxDOT to establish a transparent, well-defined, and understandable system of project approval and programming within TxDOT that integrates project benchmarks, timelines, priorities, and cash forecasts. • Require TxDOT districts to develop detailed work programs driven by benchmarks for major projects and other statewide goals for smaller projects. Need for Consistent, Unbiased, and Meaningful Public Involvement • Require TxDOT to develop and implement a public involvement policy that guides and encourages more meaningful public involvement efforts agency-wide. RED LIGHT CAMERAS: WORKING TO SAVE LIVES A new study by the Insurance Institute for Highway Safety shows that red light cameras save lives. The study, released February 1, examined U.S. cities with populations over 200,000, comparing those with red light camera programs to those without. The research revealed that, in the 14 large U.S. cities that had cameras during 2004-2008 (including the City of Garland), the combined per capita rate of fatal red light crashes fell 35 percent, compared with 1992-1996. (The rate also fell in 48 cities without red light cameras in either period, but only by 14 percent.) Eighty-three lives were saved in the cities with cameras during the study period. The benefits of red light programs were even greater when researchers considered the rate of all fatal crashes at intersections, rather than only those attributed to red light running. The rate of all fatal crashes fell 14 percent in camera cities, but increased two percent in non-camera cities. Considering the decrease in all fatal intersection crashes, 159 lives were saved in cities with cameras. Based on these findings, the study determined that if red light cameras had been in place all five years in all cities over 200,000 in population, a total of 815 deaths could have been avoided. In sum, the study concludes that red light camera programs save lives by reducing fatal red light running crashes, as well other types of fatal intersection crashes. The study is available online at http://www.iihs.org/news/rss/pr020111.html. Town Council 194 of 205 Meeting Date: February 7, 2011 6 Even mounting evidence of the benefits of red light programs won’t sway some Texas legislators. In fact, at least one bill – S.B. 500 – has been filed already to eliminate the cameras. More are sure to come. IRS OFFERS ASSISTANC E TO CITIES The Federal, State, and Local Government (FSLG) Division of the Internal Revenue Service provides assistance to cities. FSLG is responsible for ensuring federal tax compliance by federal and state agencies, and city and other local governments, but it also provides information and education. FSLG offers various services, including individualized instruction, information on return reporting, training and seminars, and guidance on other federal tax-related issues. FSLG also works with the Social Security Administration to educate government entities about social security agreements. FSLG provides resources on its Web site, including fact sheets and frequently asked questions, and is also available to answer questions by e-mail and phone. For more information, please go to http://www.irs.gov/govt/fslg/article/0,,id=96062,00.html. SENATE COMMITTEE ON ECONOMIC DEVELOPMENT The Senate Committee on Economic Development recently released its interim report in which it considered four interim charges. The report’s city-related recommendations are as follows: • Implement a system to track all incentives given to a company by an economic development corporation, a city, a county, and/or a state. In order to gain a clear picture of all the incentives a company is receiving, a total summary of tax incentives is necessary. A summary of a company’s tax incentives from each level of government will help ensure that one company is not over-incentivized. • Synchronize the state Emerging Technology Fund’s current reporting requirements for a grant recipient by requiring a fiscal total, intended outcomes, and complete outcomes for all fiscal years. • Implement a timeline for approval or denial of Emerging Technology Fund and Texas Enterprise Fund applications. A deadline for approval is necessary in order to keep Texas competitive. A sufficient deadline will give applicant businesses notice of when they can expect a decision, and therefore they will wait for an application decision from Texas before immediately accepting a grant in another state. • Assess possibilities for the implementation of an independent review panel for the Emerging Technology Fund and the Texas Enterprise fund applications. The appointees should be independent from the Offices of the Governor, Lieutenant Governor, and the Speaker of the House. The purpose of an independent third-party panel would be to develop an outside opinion of whether the leadership should give a grant based on the due diligence completed by the Office of the Governor’s Economic Development staff on applications. Town Council 195 of 205 Meeting Date: February 7, 2011 7 The full text of the report is available online at http://www.senate.state.tx.us/75r/senate/commit/c525/c525.InterimReport81.pdf. COMMENTS FILED OPPOSING SEC’S PROPOSED RULE ON REGISTRATION OF “MUNICIPAL ADVISORS” The League recently filed comments with the federal Securities and Exchange Commission (SEC) opposing a proposed rule that would require appointed board members of municipal entities that issue municipal securities or that invest public funds to register as “municipal advisors” with the SEC and the federal Municipal Securities Rulemaking Board. The proposed rule would have the effect of requiring individuals appointed to certain boards and commissions, including economic development corporations, to pay annual registration fees and subject themselves to heightened federal regulatory controls. To view the comments, go to http://www.tml.org/legal_topics/legal_finance.asp. For more information on the proposed rule, or to submit comments to the SEC online, please visit http://sec.gov/news/press/2010/2010-253.htm. Comments must be submitted to the SEC no later than February 22, 2011. TML LEGISLATOR-OF-THE-MONTH FOR JANUARY 2011 Representative Burt Solomons is the TML Legislator-of-the-Month for January 2011. Representative Solomons represents House District 65, which includes Carrollton and Lewisville. First elected to the Texas House of Representatives in 1994, Representative Solomons is currently serving in his eighth term in office. During his tenure, he has served as chairman of the powerful House State Affairs Committee. Representative Solomons understands municipal issues. Prior to his election to the Texas House of Representatives, Chairman Solomons has served as a municipal judge and as president of the Texas Municipal Courts Association. This session, he has filed H.J.R. 56, which would prohibit the legislature from passing along unfunded mandates to units of local government, including cities. We hope that city leaders across Texas, and particularly those in Representative Solomons’ district, will express their appreciation to this outstanding leader. Town Council 196 of 205 Meeting Date: February 7, 2011 8 WHAT’S YOUR AREA OF EXPERTISE OR INTEREST? JOIN YOUR FAVORITE E-LIST The TML staff is gathering e-mail addresses from city officials (elected or appointed) who are willing to provide testimony during the 2011 legislative session, want to be kept “in the loop” on certain subject matters, or are willing to simply provide their perspective on a particular legislative matter. If you would like to participate in this E-List project, simply go to http://www.tml.org/genform/E-List.asp and fill out the online form. If you have any questions, please contact JJ Rocha at jj@tml.org or 512-231-7400. CITY-RELATED BILLS FILED H.B. 887 (Geren) – Red Light Cameras: would prohibit the county assessor collector and the Texas Department of Motor Vehicles from refusing to register a vehicle when the owner of the motor vehicle is delinquent in the payment of a civil penalty imposed as the result of a violation detected by a photographic traffic signal enforcement system. H.B. 889 (Lewis) – Property Tax: would change the method by which a real property interest in oil and gas in place is appraised by: (1) using the average price of the oil or gas interest for the preceding two calendar years; and (2) eliminating the comptroller-computed market condition factor multiplier. H.B. 892 (C. Howard) – Transport of Illegal Aliens: would create the offense of unlawful transport of an illegal alien. H.B. 903 (Thompson) – Juvenile Case Manager Fund: would expand the permitted uses of the juvenile case manager fund to include training expenses, travel expenses, costs of office supplies, and other operating and maintenance costs of the juvenile case manager. H.B. 904 (Thompson) – Municipal Court Building Security Fund: would increase the optional municipal court building security fee to $4. H.B. 913 (Dutton) – Expunction: would: (1) expand the situations in which an individual would be entitled to have all records and files relating to an arrest expunged; (2) expand the situations in which a court would be required to enter an order of expunction of all files and records relating to a specific arrest; (3) require a municipal prosecutor to bring a motion for expunction in any case where a person was arrested but a complaint was not filed before the second anniversary of the date of arrest; and (4) repeal all expunction fees. H.B. 918 (Allen) – Solid Waste: would require a solid waste permit application to include: (1) a certification from the applicant that an explanation of the site’s proposed operations and a questionnaire seeking community comments was mailed to each resident and community Town Council 197 of 205 Meeting Date: February 7, 2011 9 organization, nonprofit organization, or civic club within a certain distance of the proposed site; and (2) any comments made in response to the questionnaire. H.B. 925 (Bonnen) -- TMRS: would allow a city to provide for retirement credit for prior service as a volunteer reserve police officer if the officer currently works for the city as a full time officer. H.B. 926 (Harper-Brown) – Elections: would: (1) allow the Department of Public Safety to disclose the results of an investigation into the validity of an address to the secretary of state (SOS) for voter registration purposes; and (2) require the SOS to inform the voter registrar of the county in which the address is located. H.B. 930 (Darby) – Property Tax: would require a court to issue a tax warrant authorizing the seizure of personal property for the payment of property taxes if the applicant for the warrant has reason to believe that personal property owned by the property owner will be sold at a liquidation sale in connection with the cessation of a business. H.B. 939 (V. Gonzales) – Municipal Court Fees: would create a $75 fee to be paid by a defendant convicted of a misdemeanor if a written notice to appear was issued following the defendant’s violation of a traffic law, municipal ordinance, or state penal law, and the services of a peace officer are required to locate the defendant to issue that notice. H.B. 943 (Dukes) – Missing Persons: would: (1) require the Department of Family and Protective Services to report to and make monthly contact with appropriate law enforcement agencies regarding certain missing children; and (2) require a local law enforcement agency to enter a report of a missing child or person, no later than two hours after receiving the report, into the clearinghouse, national crime information center missing person file, and Alzheimer’s Association Safe Return crisis number. H.B. 947 (Lozano) – Education Partnerships: would establish a pilot program to expand access to career and technical education partnerships in rural areas, including cities with a population of less than 50,000. H.B. 951 (Lozano) – Rural Economic Development: would create the “Texas Rural Development Fund” as an account in the state’s general revenue fund. Money in the account may consist of legislative appropriations, gifts, and donations, and may be spent in rural areas of the state on entrepreneurship programs, regional planning, rural leadership enhancement, and rural youth corps programs. H.B. 954 (Lozano) – Firearms: would: (1) preclude an employer from prohibiting an employee who has a concealed handgun license from transporting or storing a firearm or ammunition in a locked, privately owned vehicle in a parking lot, garage, or parking area provided for employees; but (2) provide that the bill’s restriction on an employer do not: (a) prohibit an employer from requiring that the firearm be hidden from view; (b) apply if the parking area has restricted or limited access; (c) apply if the employer provides an alternative location to store the firearm; (d) apply to property where the possession of a firearm or ammunition is prohibited by law; or (e) Town Council 198 of 205 Meeting Date: February 7, 2011 10 apply to a vehicle owned or leased by the employer and used by the employee, unless the employee is required to transport or store a firearm in the official discharge of the employee’s duties. H.B. 956 (Marquez) – Firefighter Death Investigation: would broaden the state fire marshal’s authority to investigate firefighter deaths, including any factors that may have contributed to a death in connection with an on-duty incident. (Companion bill is S.B. 396 by Deuell.) H.B. 963 (Hartnett) – Cruelty to Animals: would provide that when an animal’s owner has cruelly treated the animal and been divested of ownership: (1) a court could order the animal to be given to a city or county animal shelter; (2) a court must order the owner to pay any costs incurred by a city or county animal shelter in housing and caring for the animal; (3) a court must set the amount of bond for an appeal to include the estimated costs to house and care for the impounded animal as provided by the city, county, or a nonprofit; (4) an officer that is unable to sell the animal at auction may give the animal to a city or county animal shelter; and (5) the owner may appeal the divestment order and the court shall provide either a transcript, clerk’s record, or audio recording of the proceedings, depending upon whether the court is or is not a court of record. H.B. 965 (Callegari) – TCEQ License Requirements: would: (1) permit the Texas Commission on Environmental Quality (TCEQ) to recognize Internet-based continuing education programs; and (2) require the TCEQ to provide a method for certain individuals who hold a license issued by the TCEQ to certify at the time of license renewal that the license holder has complied with the TCEQ’s continuing education requirements. H.B. 966 (Murphy) – Gas Ratemaking: would – among other things – provide that, in establishing a gas utility’s rates, the regulatory authority (a city or the Railroad Commission) shall allow expenses for pension and other postemployment benefits, as determined by actuarial or other similar studies in accordance with generally accepted accounting principles, in amounts the regulatory authority finds reasonable and necessary. (Companion bill is S.B. 403 by Eltife.) H.B. 974 (Dutton) – Elections: would provide that: (1) an election judge or clerk is entitled to at least one-and-a-half times the federal hourly minimum wage as compensation for services rendered at a precinct polling place; and (2) the election judge or clerk serving in a municipal election shall be paid by the city not later than 72 hours after the time the compensation statement is submitted. H.B. 975 (Dutton) – Appraisal Review Board: would provide that a person who has served all or part of three consecutive terms as a member of an appraisal review board is ineligible to serve on the next appraisal review board during a term that begins on the next January 1 following the third of those consecutive terms. H.B. 976 (Carter) – Magistrates: would permit a magistrate to hear a complaint under oath through an electronic broadcast system, with certain restrictions and requirements. Town Council 199 of 205 Meeting Date: February 7, 2011 11 H.B. 978 (Villareal) – School Boards: would provide a system for reforming school board governance of academically unacceptable school districts of a certain size that would allow the mayor of a city with the largest overlapping population of the school district to make appointments to the board if authorized by election to do so. H.B. 981 (Guillen) – Transportation Funding: would – among other things – authorize, in certain circumstances, a metropolitan planning organization, a rural planning organization, or a Texas Department of Transportation district to participate in a new “local mobility credit program,” which would allow those entities to accumulate amounts in excess of the local cost share requirement for a federally-financed project, and to use those credits for the local cost share of future projects. H.B. 983 (Menendez) – Survivor Benefits: would make a survivor of an employee or trainee killed in the line of duty: (1) eligible to purchase health benefits from the deceased officer’s employer’s benefits carrier even if the survivor has health benefits with another employer; and (2) eligible to apply for health benefits until September 1, 2012 if the officer died after September 1993. (Companion bill is S.B. 423 by Lucio). H.B. 984 (Truitt) – Municipal Court: would authorize a city with a non-record municipal court to enter into an agreement with a contiguous city to provide concurrent and original jurisdiction of the municipal courts in both cities for most types of cases heard by municipal courts. H.B. 993 (Rodriguez) – Road Closures: would authorize a firefighter working for a volunteer fire department or a fire department operated by an emergency services district or general-law city to close one or more lanes of a road or highway to protect the safety of persons or property when performing the firefighter’s official duties. H.B. 997 (Truitt) – TMRS: would: (1) combine the Municipality Accumulation Fund, Employees Saving Fund, and Current Service Annuity Reserve Fund into one fund (the Benefit Accumulation Fund); and (2) require all benefits to be paid into and out of this fund. (Companion bill is S.B. 350 by Williams.) H.B. 998 (McClendon) – Dogs: would: (1) require a dog owner to obtain liability insurance for large male dogs who have not been neutered; and (2) create a class C misdemeanor for the offense of not having the insurance. H.B. 1005 (Hopson) – Elections: would: (1) require the secretary of state to establish methods to obtain a photograph of each registered voter for use on voter registration certificates; and (2) require a voter to present his/her voter registration certificate with a photograph, an identification card, or a certain affidavit in order to vote. H.B. 1011 (Bonnen) – Synthetic Derivatives of Marihuana and Salvia divinorum: would make synthetic derivatives of marihuana subject to Penalty Group 2 of the Texas Controlled Substances Act and would make salvia divinorum, and its derivatives and extracts, subject to Penalty Group 3 of the Texas Controlled Substances Act. Town Council 200 of 205 Meeting Date: February 7, 2011 12 H.B. 1014 (Legler) – Municipal Court: would authorize a justice of the peace to appoint a municipal court judge of a city located in the same county as the justice precinct to serve as a visiting justice of the peace in criminal cases involving a misdemeanor traffic offense. H.B. 1021 (Guillen) – Historically Underutilized Businesses: would provide that a person who is disabled according to the federal Americans with Disabilities Act is eligible to be listed as a historically underutilized business by the state. H.B. 1024 (Dutton) – Metal Recycling: would, among other things, require an individual to show documentation that insulated wire that is being sold for recycling was salvaged from a fire. H.B. 1038 (Reynolds) – Elections: would make it a state jail felony for an election officer to knowingly: (1) remove the name of an eligible voter from the list of registered voters or the poll list for the precinct; (2) refuse to accept for voting a person whose acceptance is required by this code, or (3) prevent the deposit in the ballot box of a marked and properly folded ballot that was provided at the polling place to the voter who is depositing it or for whom the deposit is attempted. The bill would also make it a class B misdemeanor for a person to knowingly, and with the intent to prevent another from voting in an election, deceive another person regarding an election or voter eligibility. H.B. 1044 (Solomons) – Public Information Act: would provide that certain types of information are expressly public unless they are made confidential under the Public Information Act or other law. (Companion bill is S.B. 375 by Wentworth.) H.B. 1045 (Fletcher) – Police Proficiency Certificates: would require a proficiency certificate issued by the Texas Commission on Law Enforcement Education and Standards to include the date the license holder became eligible for the certificate. H.B. 1047 (Schwertner) – Impoundment of Motor Vehicle: would: (1) authorize a peace officer to impound the vehicle of a person who operates a vehicle but fails to establish financial responsibility for the vehicle, such as liability insurance, and fails to display a driver’s license; (2) require the officer to provide a written explanation about how to recover the vehicle; and (3) establish criteria under which a law enforcement agency may release the vehicle. H.B. 1053 (D. Patrick) – Fire Fighters: would require the Texas Higher Education Coordinating Board to study and develop rules regarding a tuition exemption for fire science curriculum for fire fighters. H.B. 1056 (Villarreal) – Affordable Housing: would: (1) provide that a property tax exemption is available for property owned directly by a Community Housing Development Organization (CHDO) and for property owned by a 100 percent subsidiary of the CHDO; (2) provide that an entity controlled or equitably owned by a CHDO can receive an exemption, even if it is not a 100 percent subsidiary of the CHDO, only if the entity initially applied for the exemption between January 1, 2002 and December 31, 2003; (3) provide that, if a multifamily rental housing property that previously received an exemption has that exemption in question, Town Council 201 of 205 Meeting Date: February 7, 2011 13 the owner must file an application with, and comply with the rules promulgated by, the Texas Department of Housing and Community Affairs (TDHCA) to determine the availability of the exemption; (4) provide that a non-profit organization that owns a home ownership project or a multifamily rental project, either directly or through a 100 percent subsidiary, may apply for the exemption to either the appraisal district or TDHCA; (5) provide that a non-profit organization that own a multifamily rental project by controlling a limited partnership or similar entity or by equitable ownership must apply for the exemption to TDHCA; (6) require TDHCA to create an application process and rules allowing TDHCA to implement its duties; and (7) clarify that properties that have received the exemption in prior years will not lose the exemption because the population of the county subsequently increases beyond 1.4 million. H.B. 1058 (Frullo) -- Assessments: would allow a city council to contract with the governing body of another taxing unit or the board of directors of an appraisal district to perform the duties of the city relating to the collection of special assessments levied in a public improvement district. (Companion bill is S.B. 422 by Duncan.) H.B. 1062 (Madden) – Eminent Domain: would provide that a city may exercise the right of eminent domain for a public use to acquire public or private property, whether located inside or outside the municipality, for any of an enumerated list of uses in current law, including providing, enlarging, or improving of a municipally owned city hall or any other municipal public use the governing body considers advisable. H.J.R. 77 (Harper-Brown) – Transportation Funding: would amend the Texas Constitution to provide that, beginning on January 1, 2012, the net revenue derived from the tax imposed on the sale, use, or rental of a motor vehicle shall be allocated as follows: (1) twenty-five percent to the credit of the state highway fund; and (2) the remainder as provided by the legislature by general law. H.J.R. 78 (Harper-Brown) – Transportation Funding: would amend the Texas Constitution to provide that, for a state fiscal biennium beginning on or after September 1, 2013 and subject to legislative appropriation, allocation, and direction: (1) three-fourths of the net revenue that is remaining after payment of all refunds allowed by law and expenses of collection that is derived from taxes on motor fuels and lubricants used to propel motor vehicles over public highways shall be used for the sole purpose of constructing and maintaining public highways; and (2) one- fourth of the net revenue shall be allocated to the available school fund. H.J.R. 79 (C. Howard) – Property Tax: would amend the Texas Constitution to authorize the legislature to reduce the property tax appraisal cap on homesteads from ten to five percent. (Note: please see H.B. 879, summarized in last week’s edition.) S.B. 389 (Williams) – Water Utilities: would require a water utility that serve 250 connections or more in Harris County and certain surrounding counties to make certain plans and provisions for operations during an emergency, including an extended power outage. S.B. 417 (West) – Municipal Court Records: would prohibit a municipal court from disclosing to the public any information that is the subject of an order of nondisclosure. Town Council 202 of 205 Meeting Date: February 7, 2011 14 S.B. 422 (Duncan) – Assessments: this bill is the same as H.B. 1058, above. S.B. 423 (Lucio) – Survivor Benefits: would make a survivor of an individual killed in the line of duty: (1) eligible to purchase health benefits from the deceased officer’s employer’s benefits carrier even if the survivor has health benefits with another employer; and (2) eligible to apply for health benefits until September 1, 2012, if the officer died after September 1993. (Companion bill is H.B. 983 by Menendez). S.B. 432 (Jackson) – Property Tax: would reduce the penalty for failure to make a timely installment payment of ad valorem taxes on property in a disaster area from twelve percent for each month the tax remains unpaid, to six percent for each month the tax remains unpaid, plus interest. (Companion bill is H.B. 803 by Bonnen.) S.B. 437 (Nelson) – Municipal Utility Districts: would provide that, to be eligible to vote in an election to confirm the creation of a municipal utility district or to authorize the district’s first bond issuance, a person must reside in the district for at least one year immediately preceding the date of the election. S.B. 440 (Lucio) – Mandatory Health Benefit: would require all individual health benefit plans to cover certain mental illnesses. S.B. 441 (Lucio) – Mandatory Health Benefit: would require a health benefit plan to provide coverage for autism spectrum disorder until the individual is 17 years of age. S.B. 442 (Wentworth) – Geospatial Data: would require a city to provide certain notice on each geospatial data product (including any basic map) that: (1) is created or hosted by the city; (2) appears to represent property boundaries; and (3) was not produced using information from an on-the-ground survey conducted under the supervision of a registered professional land surveyor. S.B. 449 (Watson) – Property Tax: would: (1) require the State Soil and Water Conservation Board, with the assistance of the comptroller, to develop standards for determining whether land qualifies for appraisal based on water-stewardship use; (2) provide that the chief appraiser and appraisal review board shall apply the standards adopted by the State Soil and Water Conservation board and comptroller; and (3) provide that land is not eligible for appraisal on the basis of use for water stewardship if: (a) the land was appraised as qualified open-space land or qualified timber land at the time the water-stewardship use began; and (b) was developed to a degree that precludes the land from eligibility for appraisal on a basis other than use for water stewardship or under the subchapter relating to qualified timber land. S.B. 454 (Ellis) – Energy Conservation: would, among other things, require that a city annually report to the State Energy Conservation Office regarding the entity’s efforts and progress relating to energy conservation, including information regarding the city’s seasonal-specific thermostat settings and thermostat settings for nonpeak or off hours. Town Council 203 of 205 Meeting Date: February 7, 2011 15 S.B. 455 (Ellis) – Air Quality: would impose certain restrictions on the location and operation of concrete crushing facilities. S.B. 459 (Seliger) – Property Assessments: would: (1) authorize a city to create a voluntary property assessment in order to finance certain water improvements; (2) require a city that authorizes contractual assessments for water or energy efficiency improvements to file written notice of each assessment in the real property records of the county in which the property is located; (3) provide that a contractual assessment for water or energy efficiency improvements has the same priority as a lien for city property taxes. (Companion bill is H.B. 659 by Villareal.) S.B. 462 (West) – Expunction: would expand the situations in which an individual would be entitled to have all records and files relating to an arrest expunged. S.B. 474 (Patrick) – Property Tax: would extend the current ten-percent appraisal cap to business property. (The cap currently applies only to residential homesteads.) S.B. 477 (Patrick) – Elections: would provide that the allocation of election expenses in a joint election involving a school district must provide that the school district is responsible only for the proportion of election expenses that correspond to the total number of registered voters in the school district as compared to the total numbers of registered voters of all political subdivisions participating in the election. S.B. 480 (Hegar) – Municipal Court: would provide that, for a conviction from a municipal court of record, an appellant has the right to appeal to the court of appeals if: (1) the fine assessed against the defendant exceeds $100 and the judgment is affirmed by the appellate court; or (2) the sole issue is the constitutionality of the statute or ordinance on which a conviction is based. S.B. 492 (Fraser) – Solar Power Incentives: would, among many other things, provide that: (1) the bill applies only to an electric cooperative or municipally owned utility with retail sales of more than 500,000 megawatt hours in 2007; (2) electric cooperatives and municipally owned utilities administer incentive programs that increase the amount of solar generation capacity installed in this state in a cost-effective, market-neutral, and nondiscriminatory manner; (3) customers of electric cooperatives and municipally owned utilities will have access to incentives for the installation of distributed solar generation; (4) electric cooperatives and municipally owned utilities expend funds to increase the amount of solar generation capacity at a total funding level consistent with the requirements for investor owned electric utilities in this state; (5) beginning not later than September 1, 2014, an electric cooperative or municipally owned utility must report annually to the state energy conservation office information regarding the efforts of the municipally owned utility or electric cooperative related to solar power; and (6) an electric cooperative or municipally owned utility may recover the costs imposed by the bill through a nonbypassable fee or another cost recovery mechanism as determined by the governing body of the electric cooperative or municipally owned utility. S.B. 494 (Fraser) – Finance: would allow a local governmental entity, including a city, to borrow money for purposes of a hospital owned or operated by the entity at a rate not to exceed the maximum annual percentage rate allowed by law at the time the loan is made. Town Council 204 of 205 Meeting Date: February 7, 2011 16 S.B. 500 (Jackson) – Red Light Cameras: would: (1) prohibit a local authority, including a city, from implementing or operating an automated traffic control system with respect to a highway or street under its jurisdiction (but would grandfather certain, existing contracts); (2) repeal a municipal court’s jurisdiction over cases involving photographic traffic signal enforcement offenses; (3) repeal provisions of the Health and Safety Code that establish regional trauma accounts; (4) repeal provisions of the Transportation Code that establish the amount of and direct the deposit of civil and administrative penalties collected as a result of a photographic traffic signal enforcement system; and (5) repeal Chapter 707 of the Transportation Code, which authorizes a photographic traffic signal enforcement system. S.J.R. 17 (Carona) – Unfunded Mandates: would amend the Texas Constitution to provide that no bill enacted on or after January 1, 2012 that imposes on a city, or a special district created by a city, a duty that requires the expenditure of revenue is effective unless an appropriation or other form of payment or reimbursement is provided from a resource other than the revenue of the city or special district. S.J.R. 20 (Patrick) – Property Tax: would amend the Texas Constitution to permit the legislature to apply a ten-percent appraisal cap to business property. (Note: please see S.B. 474, above.) 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. Town Council 205 of 205 Meeting Date: February 7, 2011