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Agenda Packet TC 11/05/2012Town Council Trophy Club Entities Meeting Agenda 100 Municipal Drive Trophy Club, Texas 76262 Svore Municipal Building Boardroom6:00 PMMonday, November 5, 2012 CALL TO ORDER AND ANNOUNCE A QUORUM WORKSHOP SESSION 1.2012-541-T Recognition of Employee of the Quarter; discussion of same. 2.2012-543-T Recognition of Town Secretary Shannon DePrater for completing the Texas Municipal Clerks Certification Program. 3.2012-545-T Overview and discussion regarding Town of Trophy Club adoption of 2009 Building Codes. 4.2012-544-T Discussion and direction regarding Town of Trophy Club signage regulations. 5.2012-546-T Discussion of agenda items posted for consideration on the Regular Session Council Agenda for November 5, 2012. 6.2012-547-T Discussion of proposed agenda items for the December 10, 2012 Regular Session Agenda. December 10 2012 Proposed Agenda Items.pdfAttachments: 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. 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 Page 1 of 100 Meeting Date: November 5, 2012 November 5, 2012Town Council Meeting Agenda 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. 7.2012-548-T Consider and take appropriate action regarding the Minutes dated October 15, 2012. October 15 2012 Minutes.pdfAttachments: 8.2012-550-T Consider and take appropriate action regarding a Resolution approving an Investment Policy for the Town of Trophy Club, and approving an effective date. RES 2012-28 Revised Investment Policy.pdfAttachments: 9.2012-558-T Consider and take appropriate action regarding a requested waiver for Jim Hase to be appointed to serve on two boards as required for compliance with the Board and Commission Handbook. REGULAR SESSION 10.2012-542-T Recognition of Sgt. James Norcross completing his Bachelors Degree through American Military University. 11.2012-551-T Consider and take appropriate action regarding the traffic study findings at the Bobcat Boulevard and Durango intersections with Trophy Club Drive. crossing guard counts for october.pdf TRO-Stop Study.pdf.pdf Attachments: 12.2012-559-T Consider and take appropriate action regarding the painting of the three bridges and sound wall in the SH114/170 project in coordination with the City of Roanoke and the Town of Westlake; and authorizing the Mayor or her designee to execute all necessary documents. Lois Bridge Painting.pdf Options_Board.pdf.pdf Attachments: 13.2012-552-T Council to receive an update by Town Staff concerning the current and future Trophy Club Park Master Concept Plan; discussion of same. 14.2012-549-T Consider and take appropriate action to call a Special Session for Wednesday, November 14, 2012 to discuss the following items: - Canvass the November 6, 2012 Special Election - Calling/Action regarding the 2002 Obligation Bonds - Action regarding the creation of a Crime Control and Prevention District 15.2012-553-T Consider and take appropriate action regarding financial and variance report dated September 2012 (Preliminary). Town Council Page 2 of 100 Meeting Date: November 5, 2012 November 5, 2012Town Council Meeting Agenda 16.2012-554-T Town Council Liaison Updates; discussion of same: - October 16, 2012 Charter Review Commission; Council member Tiffany - October 22, 2012 EDC 4B; Mayor Pro Tem Strother - October 23, 2012 TCMUD No. 1; Council member Rose 17.2012-555-T Town Manager Slye's update regarding the following; discussion of same. - CAFR Award - Road Construction - Roundabout Dedication - Fire Department Open House/30th Anniversary - Christmas/Clock Tower Lighting Event 18.2012-556-T Mayor and Council Updates regarding training opportunities, educational sessions, and regional meetings; discussion of same: - October 17, 2012 Joint Northwest Communities Partnership/Metroport Cities Partnership Meeting - October 18, 2012 Emergency Preparedness Planning Council Meeting - October 23, 2012 Vision Trophy Club Committee Meeting - October 26, 2012 Northwest Communities Partnership Task Force Meeting - October 29, 2012 Joint Chamber Meeting - October 31, 2012 Denton County Mayors' Meeting - November 2, 2012 Heart of North Texas Business Seminar 19.2012-557-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 Town Council Page 3 of 100 Meeting Date: November 5, 2012 November 5, 2012Town Council Meeting Agenda 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 Thursday, November 1, 2012 by 7:00 P.M. in accordance with Chapter 551, Texas Government Code. ________________________________ Shannon DePrater, TRMC 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 ______________________, 2012. ________________________________, Title: ___________________________ Town Council Page 4 of 100 Meeting Date: November 5, 2012 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12012-541-T Name: Status:Type:Agenda Item Regular Session File created:In control:10/29/2012 Town Council On agenda:Final action:11/5/2012 Title:Recognition of Employee of the Quarter; discussion of same. Attachments: Action ByDate Action ResultVer. TITLE Recognition of Employee of the Quarter; discussion of same. Town Council Page 5 of 100 Meeting Date: November 5, 2012 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12012-543-T Name: Status:Type:Agenda Item Regular Session File created:In control:10/29/2012 Town Council On agenda:Final action:11/5/2012 Title:Recognition of Town Secretary Shannon DePrater for completing the Texas Municipal Clerks Certification Program. Attachments: Action ByDate Action ResultVer. TITLE Recognition of Town Secretary Shannon DePrater for completing the Texas Municipal Clerks Certification Program. Town Council Page 6 of 100 Meeting Date: November 5, 2012 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12012-545-T Name: Status:Type:Agenda Item Regular Session File created:In control:10/29/2012 Town Council On agenda:Final action:11/5/2012 Title:Overview and discussion regarding Town of Trophy Club adoption of 2009 Building Codes. Attachments: Action ByDate Action ResultVer. TITLE Overview and discussion regarding Town of Trophy Club adoption of 2009 Building Codes. EXPLANATION: The Town of Trophy Club currently operates under the 2003 International Building Codes which regulates the construction standards for residential structures, plumbing, mechanical, energy efficiency, and property maintenance, as well as fire codes. In addition, the Town currently builds to the 2002 National Electrical Code. This review is an overview of the ordinances staff will be bringing to Council in December to adopt the 2009 International Codes and the 2011 National Electrical Code. The State Energy Commission Office (SECO) mandated that all municipalities in Texas adopt the 2009 International Residential and Energy Efficiency Codes by January 2012. Trophy Club had only one Inspector/Building Official during most of this year and was unable to prepare the paperwork to adopt new codes by January 2012. An additional inspector was hired in August 2012, freeing up some of the Building Official’s time so that he could bring an update of the codes to you. TOWN COUNCIL GOAL(S): Sound building codes help achieve all Council 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 #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 Forge collaborative relationships with other governmental and public entities Support citizen volunteer opportunities Promote recreational / active lifestyle opportunities for all ages Goal #4: Healthy, Picturesque, and Environmentally Sound Promote recreational / active lifestyle opportunities for all ages Maintain neat and tidy appearance Improve property maintenance standards and code enforcement Town Council Page 7 of 100 Meeting Date: November 5, 2012 File #: 2012-545-T, Version: 1 Develop / Enhance environmental and sustainability standards and programs Goal #5: Financial and Operational Stewardship Develop, recognize, 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 RECOMMENDATION AND JUSTIFICATION TO COUNCIL: This item is for the workshop session only for informational purposes, direction and discussion with the Council. Town Council Page 8 of 100 Meeting Date: November 5, 2012 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12012-544-T Name: Status:Type:Agenda Item Regular Session File created:In control:10/29/2012 Town Council On agenda:Final action:11/5/2012 Title:Discussion and direction regarding Town of Trophy Club signage regulations. Attachments: Action ByDate Action ResultVer. TITLE Discussion and direction regarding Town of Trophy Club signage regulations. EXPLANATION: In May 2011, Councilwoman Cantrell and Mayor White requested an update to the sign ordinance in regard to retail windows and political signs. Staff will present an overview of suggested changes to the overall sign ordinance in order to get feedback and direction from Council before presenting an ordinance change to the Planning and Zoning Commission for their recommendation to Council. TOWN COUNCIL GOAL(S): 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 Forge collaborative relationships with other governmental and public entities Support citizen volunteer opportunities Promote recreational / active lifestyle opportunities for all ages Goal #4: Healthy, Picturesque, and Environmentally Sound Promote recreational / active lifestyle opportunities for all ages 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 Develop, recognize, 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 RECOMMENDATION AND JUSTIFICATION TO COUNCIL: This item is for the workshop session only for informational purposes, direction and discussion with the Council. Town Council Page 9 of 100 Meeting Date: November 5, 2012 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12012-546-T Name: Status:Type:Agenda Item Regular Session File created:In control:10/29/2012 Town Council On agenda:Final action:11/5/2012 Title:Discussion of agenda items posted for consideration on the Regular Session Council Agenda for November 5, 2012. Attachments: Action ByDate Action ResultVer. TITLE Discussion of agenda items posted for consideration on the Regular Session Council Agenda for November 5, 2012. Town Council Page 10 of 100 Meeting Date: November 5, 2012 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12012-547-T Name: Status:Type:Agenda Item Regular Session File created:In control:10/29/2012 Town Council On agenda:Final action:11/5/2012 Title:Discussion of proposed agenda items for the December 10, 2012 Regular Session Agenda. Attachments:December 10 2012 Proposed Agenda Items.pdf Action ByDate Action ResultVer. TITLE Discussion of proposed agenda items for the December 10, 2012 Regular Session Agenda. Town Council Page 11 of 100 Meeting Date: November 5, 2012 Meeting Date 12/10/2012 Item File ID Dept Have ARF? Workshop Discussion of agenda items posted for consideration on the Regular Session Council Agenda for December 10, 2012. Town Sec Discussion of proposed agenda items for the January 7, 2013 Regular Session Agenda. Town Sec Consent Consider and take appropriate action regarding the Minutes dated November 5, 2012. Town Sec Consider and take appropriate action regarding the Minutes dated November 14, 2012 (Special Session). Town Sec Public Hearing Regular Session Singage Ordinance Adoption CD 2009 Building Code Adoption CD Calling Bonds ILA with EDC B 2012-340-T Finance Appoint members to CCPD, ASA and CFAB Town Sec NH5 Ph 2E Final Plat Approval and Subdividers Agmt CD Town Council Liaison Updates; discussion of same: Scheduled by meetings Town Sec Town Manager Slye's update regarding the following; discussion of same. Town Sec Mayor and Council Updates regarding training opportunities, educational sessions, and regional meetings; discussion of same. Town Sec Items for Future Agendas.Town Sec Executive Session Consider and take appropriate action regarding the Executive Session.Town Sec Town Council Page 12 of 100 Meeting Date: November 5, 2012 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12012-548-T Name: Status:Type:Agenda Item Consent Agenda File created:In control:10/29/2012 Town Council On agenda:Final action:11/5/2012 Title:Consider and take appropriate action regarding the Minutes dated October 15, 2012. Attachments:October 15 2012 Minutes.pdf Action ByDate Action ResultVer. TITLE Consider and take appropriate action regarding the Minutes dated October 15, 2012. Town Council Page 13 of 100 Meeting Date: November 5, 2012 MINUTES FROM REGULAR SESSION TOWN COUNCIL MEETING FOR THE TOWN OF TROPHY CLUB LOCATION: 100 MUNICIPAL DRIVE, TROPHY CLUB, TEXAS Monday, October 15, 2012 at 6:00 P.M. Svore Municipal Building Boardroom The Town Council of the Town of Trophy Club, Texas, met in a Regular Session on Monday, October 15, 2012. 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 Glenn Strother Mayor Pro Tem Bill Rose Council Member Jeannette Tiffany Council Member Danny Mayer Council Member TOWN COUNCIL MEMBERS ABSENT : Clint Schroeder 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 Danny Thomas Fire Chief Carolyn Huggins Community Development Director Michael Aguilera Finance Director Mayor White announced the date of October 15, 2012, called the meeting to order and announced a quorum at 6:10 p.m. Mayor White noted that Council Member Schroeder will be absent. WORKSHOP SESSION 1. Consider and provide direction regarding draft ordinances permitting the operation of golf carts on streets in Trophy Club. Chief Kniffen introduced Chief Smith from the City of Melissa to the Town Council. The City of Melissa recently passed a golf cart Ordinance and Chief Smith provided an overview of their ordinance and the process the City of Melissa went through as they considered their ordinance. Kniffen presented an updated draft of the golf cart Ordinance which included items addressed at the September 24, 2012 workshop. The Town Council and Staff reviewed and discussed the draft ordinance. Kniffen will review proposed changes and bring back another draft at a future Town Council workshop. Council discussed scheduling a couple of Town Hall meetings with a panel discussion. 2. Discussion of agenda items posted for consideration on the Regular Session Council Agenda for October 15, 2012. 3. Discussion of proposed agenda items for the November 5, 2012 Regular Session Agenda. Town Council Page 14 of 100 Meeting Date: November 5, 2012 Mayor White called a short break. CONVENE INTO REGULAR SESSION - ESTIMATED START TIME – 7:08 P.M. The Invocation was offered by Police Chief Scott Kniffen. The Pledges were led by Fire Chief Danny Thomas. 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. Dena Boudreau, 2622 Argyle Lane addressed the Town Council and offered her expertise and knowledge of working in the both the insurance industry and Public Safety to help the Town Council with the golf cart ordinance. Kathy Trotter, 310 Skyline, addressed the Town Council and thanked members of Staff and the Town Council who listened to her concerns and help come to a favorable resolution of the access road to the existing Lift Station behind her house. 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. 4. Consider and take appropriate action regarding the Minutes dated September 24, 2012. 5. Consider and take appropriate action regarding the approval of a joint election agreement and contract for election services with Tarrant County; and authorizing the Mayor or her designee to execute all necessary documents. Motion made by Council member Rose, seconded by Council member Mayer, to approve the Consent Agenda as presented. Motion carried unanimously. REGULAR SESSION Mayor White moved Agenda Item 9 forward: 9. Consider and take appropriate action regarding the approval of a Resolution of the Town Council repealing Resolution No. 2011-25, Resolution No. 2011-26, and Resolution No. 2012-01 and adopting a new Resolution making annual appointments of citizens and Council liaisons to serve Town Boards and Commissions; and providing an effective date. Motion made by Council member Rose, seconded by Council member Mayer, to allow a waiver of the six month residency requirement for Marshall Engelbeck. Motion carried unanimously. Motion made by Council member Mayer, seconded by Council member Rose, to approve Resolution 2012-26 of the Town Council repealing Resolution No. 2011-25, Resolution No. 2011-26, and Resolution No. 2012-01, adopting a new Resolution appointing all citizens listed and to include Council liaisons to serve Town Boards and Commissions; and providing an effective date. Motion carried unanimously. Town Council Page 15 of 100 Meeting Date: November 5, 2012 Mayor White moved to Agenda Item 15 forward: 15. Consider and take appropriate action regarding the approval of an interlocal agreement between the Town and the City of Roanoke providing for full Library Services to Town residents; and authorizing the Mayor or her designee to execute all necessary documents. Motion made by Council member Rose, seconded by Council member Mayer, to approve an interlocal agreement between the Town and the City of Roanoke providing for full Library Services to Town residents; and authorizing the Mayor or her designee to execute all necessary documents. Motion carried unanimously. Mayor White opened Agenda Items 6, 7 and 8 to be discussed simultaneously. Mayor Pro Tem Strother excused himself from the Council Chambers in order to avoid the appearance of impropriety or conflict of interest because agenda items 6, 7, and 8 were being discussed together. Mayor Pro Tem Strother consulted with the Town Attorney, and based upon some prior and potential future discussions with the property owner regarding a portion of the property, he has a potential conflict of interest in regards to Agenda Item 8. Given that Mayor Pro Tem Strother's involvement in the discussion could give the appearance of a conflict, he decided to abstain and the Town Attorney concurred that it was appropriate. Since the conflict of interest does not fall into one of the categories outlined by state law, per the Charter, Mayor Pro Tem Strother's abstention will be considered a no vote for agenda items 6, 7 and 8. 6. Consider and take appropriate action regarding a request for approval of a Final Plat for Canterbury Hills, Phase 1B (22.090 acres) located out of the M. Medlin Survey, Abstract No. 832 in the Town of Trophy Club, Denton County, Texas. A. Consider and take appropriate action regarding a Subdivider's Agreement between the Town and BDMR Development for Canterbury Hills, Phase 1B; and authorizing the Mayor or her designee to execute necessary documents. Motion made by Council member Mayer, seconded by Council member Tiffany, to approve a Final Plat, as amended, for Canterbury Hills, Phase 1B (22.090 acres) located out of the M. Medlin Survey, Abstract No. 832 in the Town of Trophy Club, Denton County, Texas and the Subdivider's Agreement between the Town and BDMR Development for Canterbury Hills, Phase 1B; and authorizing the Mayor or her designee to execute necessary documents. Motion carried 4-0-1 with Mayor Pro Tem Strother abstaining. 7. Consider and take appropriate action regarding the proposed access road to the Municipal Utility District No. 1 Lift Station No. 4. Motion made by Council member Rose, seconded by Council member Tiffany, to approve the proposed concept for the access road to the Municipal Utility District No. 1 Lift Station. Motion carried 4-0-1 with Mayor Pro Tem Strother abstaining. 8. Consider and take appropriate action regarding a request for approval of a Final Plat for Canterbury Hills, Phase 2 (21.552 acres) located out of the M. Medlin Survey, Abstract No. 832 in the Town of Trophy Club, Denton County, Texas. A. Consider and take appropriate action regarding a Subdividers Agreement between the Town and BDMR Development LLC for Canterbury Hills, Phase 2; and authorizing the Mayor or her designee to execute necessary documents. Motion made by Council member Tiffany, seconded by Council member Mayer, to approve a Final Plat for Canterbury Hills, Phase 2 (21.552 acres) located out of the M. Medlin Survey, Abstract No. 832 in the Town of Trophy Club, Denton County, Texas, and the Subdividers Agreement between the Town and Town Council Page 16 of 100 Meeting Date: November 5, 2012 BDMR Development LLC for Canterbury Hills, Phase 2; and authorizing the Mayor or her designee to execute necessary documents. Motion carried 4-0-1 with Mayor Pro Tem Strother abstaining. 10. Council to receive a bi-annual update from the Parks and Recreation Board; discussion of same. The Parks and Recreation Board presented a bi-annual update to the Town Council. Presentation included in the minutes. 11. Consider and take appropriate action regarding the expenditure of remaining 2008 Park Bond funds towards the completion of the pedestrian and equestrian trails located within Trophy Club Park in an amount not to exceed $25,000. Parks and Recreation Board member Tom Mills presented the Town Council with a PowerPoint of the Trophy Club pedestrian and equestrian trails and addressed questions from the Council. The following addressed the Town Council and expressed being in favor of the completion of the pedestrian and equestrian trails. • Kathy Trotter – 310 Skyline • Renee Esses – 501 Magnolia Trail, Grapevine • Shandra Doran, 2228 Galloway Blvd • Angela Walling, 3924 Sunnygate Drive, Roanoke • Yoon Lora Choi, 8043 MacArthur Blvd, #2178 • Richard Senelly, 35 Meadowbrook Lane • Theresa Kindred, 4601 TW King Road Town Manager Slye asked the Town Council to table this agenda item to the November 5, 2012, so that Council can hear the Trophy Club Master Plan Overview prior to voting on this item. Motion made by Council member Mayer, seconded by Council member Strother, to move this item until the November 5, 2012 Town Council meeting. Mayor White read the following emails into the record: 1. Shirlee Geer, 2710 Broadway Please let the Parks & Recreation group know that I fully support the $25,000 needed to improve the low water crossings and signage (kiosks) for our valuable nature trails. As a newcomer to this city, one of our important "must haves" was a natural environment in which to walk our dogs and get away from the hustle and bustle of city life. More and more newcomers are finding the trials now that there is a map on town website, but my neighbors are still commenting that there needs to be better signage. The low water crossings also stop others from exploring the entire system. 2. Todd DiPilla, 2218 Veranda Avenue: It has been brought to my attention that the Town Council is meeting to discuss the possibility of disbursing funds to Trophy Club Park for the benefit of the hiking trails. I would like to take this opportunity to show my support for Trophy Club Park and the trail committee’s desire to improve upon the already well planned trail system. My family and I use the Park and the trails frequently and I am happy to say it was one of the reasons we decided to relocate to Trophy Club. In our search for a new home in Texas we toured many towns; Southlake, Keller, Grapevine, Colleyville, Flower Mound and of course Trophy Club. When our realtor drove us through Trophy Club Park, we knew instantly that this was the place we wanted to be. With such close proximity to our home, access to the lake and the fabulous trail system; we knew we would be able to use the park on a regular basis. Town Council Page 17 of 100 Meeting Date: November 5, 2012 Currently, we visit the park at a minimum 3-4 times a week and utilize the biking and hiking trails. Although the trails are well planned and maintained, they need constant care and attention in order to keep a safe, informed, relaxed hiking experience. The use of trail markers, kiosks and even some informative stations about the wildlife and plant life can be beneficial. Please consider this when making your decision to allocate funds to the Trophy Club Park trail system. Motion to table this item until November 5, 2012 failed 1-4-0 with Council member Mayer voting for and Mayor White, Mayor Pro Tem Strother and Council members Rose and Tiffany voting against. Motion made by Council member Rose, seconded by Council member Tiffany, to approve the expenditure of remaining 2008 Park Bond funds towards the completion of the pedestrian and equestrian trails located within Trophy Club Park in an amount not to exceed $25,000. Motion carried unanimously. Presentation included in the minutes. Mayor White moved Agenda Item 13 forward: 13. Consider and take appropriate action regarding the expenditure of remaining 2008 Park Bond funds towards improvements to the basketball courts located within Harmony Park and Independence Park West in an amount not to exceed $8,707.13. Thomas Pulling, 213 Inverness Drive addressed the Town Council expressing his support of the proposed improvements to the basketball courts located within Harmony Park and Independence Park West. Mr. Pulling also requested some sort of memorial of Josh Hernandez with the booster club funding the memorial. Mayor White stated that the Council can only vote on the improvements at this time; she requests Town Manager Slye to work with Mr. Pulling and the booster club in regards to a memorial. Motion made by Council member Rose, seconded by Council member Mayer, to approve the expenditure of remaining 2008 Park Bond funds towards improvements to the basketball courts located within Harmony Park and Independence Park West in an amount not to exceed $8,707.13. Motion carried unanimously. Mayor White called a short break, resuming at 9:30 p.m. 12. Consider and take appropriate action regarding the expenditure of remaining 2008 Park Bond funds towards the Independence East trail connection adjacent to the LDS property in an amount not to exceed $10,000. Motion made by Council member Rose, seconded by Council member Tiffany, to approve the expenditure of remaining 2008 Park Bond funds towards the Independence East trail connection adjacent to the LDS property in an amount not to exceed $10,000. Motion carried unanimously. 14. Consider and take appropriate action regarding the expenditure of remaining 2008 Park Bond funds towards the installation of four tables to be located under the entry pavilions at Independence Park East in an amount not to exceed $3,711.16. Motion made by Council member Tiffany, seconded by Council member Rose, to approve the expenditure of remaining 2008 Park Bond funds towards the installation of four tables to be located under the entry pavilions at Independence Park East in an amount not to exceed $3,711.16. Motion carried unanimously. Town Council Page 18 of 100 Meeting Date: November 5, 2012 16. Consider and take appropriate action regarding the painting of the three bridges in the SH114/170 project in coordination with the City of Roanoke and the Town of Westlake; and authorizing the Mayor or her designee to execute all necessary documents. Motion made by Council member Tiffany, seconded by Mayor Pro Tem Strother, to approve the painting of the three bridges in the SH114/170 project in coordination with the City of Roanoke and the Town of Westlake; and authorizing the Mayor or her designee to execute all necessary documents, not to exceed $55,000. Motion made by Council member Mayer, seconded by Mayor Pro Tem Strother, to table this agenda item. A motion to table is a superseding motion; therefore a vote for the previous motion to approve the painting of the three bridges is not required. The following residents addressed the Town Council: • Chuck Hall, 4 Shady Oaks Court, asked the Council to consider past actions shared cooperation with neighboring cities. • Larry Hoover, 1118 Berkshire Court, supports the painting of the bridges and the expenditure of funds to allow this region look unified. Motion to table this agenda item carried unanimously. 17. Town Council Liaison Updates; discussion of same: - Sept 25, 2012 & Oct 8, 2012 Charter Review Commission Meetings; Council member Tiffany - Oct 8, 2012 Trophy Club Municipal Utility District No. 1 Meeting; Council member Rose Council members Tiffany and Council member Rose provided brief updates of their respective Board meetings and addressed questions; no action taken, update only. 18. Town Manager Slye's update regarding the following; discussion of same. - DENCO Precinct 4 Meeting - Transportation – Roundabout Town Manager Slye updated the Council and addressed questions; no action taken, update only. 19. Mayor and Council Updates regarding training opportunities, educational sessions, and regional meetings; discussion of same. - September 25, 2012 Education Meeting - September 25, 2012 Northwest Communities Partnership Board Retreat - September 27, 2012 Northeast Leadership Forum Mayor's Roundtable - September 29, 2012 Wounded Warrior 5K and Fun Run - October 2, 2012 Chamber Luncheon - October 5, 2012 Empowering Seniors - October 12, 2012 MOW Fashion Show Mayor White and Council members updated the Council and addressed questions regarding meetings attended; no action taken, update only. 20. 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 Town Council Page 19 of 100 Meeting Date: November 5, 2012 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. 1. Consider and take appropriate action regarding procurement policies and their alignment with State statutes. (Rose, 2/1/10) 2. Consider and take appropriate action regarding noise regulations for Oil and Gas Well Drilling and Production (Rose, 4/26/10) 3. Staff proposal regarding the amenity lakes, including associated costs to accept the amenity lakes from the developer. (Stotts, 10/4/10) 4. Consider and take appropriate action regarding the creation of a “Going Green” initiative throughout the Town. (White, 2/24/2011) 5. Consider and take appropriate action regarding updates to the Sign Ordinance (retail windows and political signs) (White and Cantrell, 5/2/2011) 6. Consider and take appropriate action regarding ball park signage. (Cantrell, 6/6/2011) 7. Consider and take appropriate action regarding a Golf Cart Community. (Tiffany, 6/6/2011) 8. Consider and take appropriate action regarding splash pad options at Harmony Park, including input/direction from Council to Staff to start construction and have available next summer. (Strother, 8/1/2011) 9. Consider and take appropriate action regarding the possibility of erecting a marquee at the North entrance of the Town and asking the MUD and/or developers to help with the funding. (Cantrell, 11/14/2011) 10. Consider and take appropriate action regarding Food Prep Carts for sporting events and special events and to review/update Park Policies (Cantrell, 5/7/2012) 11. Review of #10 of Chapter 8 “Nuisances”, Article I “Noise Nuisances”, Section 1.01 “Nuisances Defined” (Schroeder, 6/21/2012) 12. Consider and take appropriate action regarding America Supporting Americans. (Mayer, 8/20/2012) 13. Consider and take appropriate action regarding the creation of a Youth Council within Trophy Club (White and Schroeder, 8/20/2012) 14. Consider and take appropriate action regarding input from Staff regarding the creation of a ‘PID Board’ (Mayer, 9/24/2012) No changes were made to the list. ADJOURN Motion made by Council member Mayer, seconded by Council member Tiffany to adjourn. Motion carried unanimously. Meeting adjourned at 10:33 p.m. ___________________________________ ___________________________________ Shannon DePrater, Town Secretary Connie White, Mayor Town of Trophy Club, Texas Town of Trophy Club, Texas Town Council Page 20 of 100 Meeting Date: November 5, 2012 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12012-550-T Name: Status:Type:Agenda Item Regular Session File created:In control:10/29/2012 Town Council On agenda:Final action:11/5/2012 Title:Consider and take appropriate action regarding a Resolution approving an Investment Policy for the Town of Trophy Club, and approving an effective date. Attachments:RES 2012-28 Revised Investment Policy.pdf Action ByDate Action ResultVer. TITLE Consider and take appropriate action regarding a Resolution approving an Investment Policy for the Town of Trophy Club, and approving an effective date. EXPLANATION: The Town’s current Investment Policy requires a minor revision due to the change in the status of the US Bond Rating. The current policy requires investment to be made in funds that are rated AAA by at least one nationally recognized rating service. The United States is now rated AA+. Staff has complied with these regulations and after reviewing the applying the changes dictated in the Public Funds Investment Act, Town Staff recommends that Council approve the revised Investment Policy. The change is as follows: Money Market Mutual funds that: 1) are registered and regulated by the Securities and Exchange Commission, 2) have a dollar weighted average stated maturity of 90 days or less, 3) seek to maintain a net asset value of $1.00 per share, and 4) are rated AAA AA+ by at least one nationally recognized rating service. TOWN COUNCIL GOAL(S): Goal #5: Financial and Operational Stewardship Develop, recognize, 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 RECOMMENDATION AND JUSTIFICATION TO COUNCIL: Management recommends the adoption of the revised Investment Policy. Town Council Page 21 of 100 Meeting Date: November 5, 2012 TOWN OF TROPHY CLUB RESOLUTION NO. 2012-28 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS REPEALING RESOLUTION NO. 2011-01 AND APPROVING A NEW RESOLUTION ADOPTING AN INVESTMENT POLICY FOR FUNDS FOR THE TOWN OF TROPHY CLUB, A COPY OF WHICH IS ATTACHED HERETO AND INCORPORATED HEREIN AS EXHIBIT “A”; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on January 3, 2011 by passage of Resolution 2011-01, the Town Council adopted an Investment Policy; and WHEREAS, by passage of this Resolution, the Town Council hereby repeals Resolution No. 2011-01 in its entirety and adopts this Resolution adopting a new Investment Policy; and WHEREAS, the Town Council has reviewed the Investment Policy attached hereto as Exhibit A, for compliance with the Public Funds Investment Act, Texas Government Code Chapter 2256. et seq.; and WHEREAS, upon consideration, the Town Council finds and determines it to be in the best interests of the Town to adopt Exhibit “A” as the Town’s Investment Policy. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB: Section 1. That Resolution No. 2011-01 is hereby repealed in its entirety. Section 2. That the Town Council has reviewed the attached Investment Policy, which contains investment strategies and policies that the Council has determined to be beneficial to the Town and hereby adopts the attached Investment Policy set forth in Exhibit “A’, a copy of which is attached hereto and incorporated herein in its entirety. Section 3. That the Director of Finance is hereby designated as the Town’s primary investment officer to perform the functions required by the attached policy, and the investment officer is hereby authorized to perform the functions required under the Investment Policy and Chapter 2256 of the Texas Government Code. Section 4. That this Resolution shall take effect immediately upon its passage and approval. Town Council Page 22 of 100 Meeting Date: November 5, 2012 PASSED AND APPROVED this 5th day of November, 2012. Mayor, Connie White Town of Trophy Club, Texas ATTEST: [SEAL] Interim Town Secretary, Shannon DePrater Town of Trophy Club, Texas APPROVED TO AS FORM: Town Attorney, Patricia A. Adams Town of Trophy Club, Texas Town Council Page 23 of 100 Meeting Date: November 5, 2012 EXHIBIT A Town Council Page 24 of 100 Meeting Date: November 5, 2012 TOWN OF TROPHY CLUB INVESTMENT POLICY I. POLICY It is the policy of the Town of Trophy Club that after allowing for the anticipated cash flow requirements of the Town of Trophy Club and giving due consideration to the safety and risk of investment, all available funds shall be invested in conformance with these legal and administrative guidelines, seeking to optimize interest earnings to the maximum extent possible. Effective cash management is recognized as essential to good fiscal management. Investment interest is a source of revenue to Trophy Club funds. Trophy Club’s investment portfolio shall be designed and managed in a manner designed to maximize this revenue source, to be responsive to public trust, and to be in compliance with legal requirements and limitations. Investments shall be made with the primary objectives of: ∗ Safety and preservation of principal ∗ Maintenance of sufficient liquidity to meet operating needs ∗ Public trust from prudent investment activities ∗ Optimization of interest earnings on the portfolio II. PURPOSE The purpose of this investment policy is to comply with Chapter 2256 of the Government Code (“Public Funds Investment Act”), which requires the Town of Trophy Club to adopt a written investment policy regarding the investment of its funds and funds under its control. The Investment Policy addresses the methods, procedures and practices that must be exercised to ensure effective and judicious fiscal management of Trophy Club’s funds. III. SCOPE This Investment Policy shall govern the investment of all financial assets of the Town of Trophy Club. These funds are accounted for in the Town of Trophy Club’s Comprehensive Annual Financial Report (CAFR) and include: • General Fund • Special Revenue Funds • Capital Projects Funds • Debt Service Funds, including reserves and sinking funds, to the extent not required by law or existing contract to be kept segregated and managed separately • Any new fund created by the Town of Trophy Club, unless specifically exempted from this Policy by the Town Council or by law. The Town of Trophy Club consolidates fund cash balances to maximize investment earnings. Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles. This Investment Policy shall apply to all transactions involving the financial assets and related activity for all the foregoing funds. However, this policy does not apply to the assets administered for the benefit of the Town of Trophy Club by outside agencies under deferred compensation programs. Town Council Page 25 of 100 Meeting Date: November 5, 2012 IV. INVESTMENT OBJECTIVES The Town of Trophy Club shall manage and invest its cash with four primary objectives, listed in order of priority: safety, liquidity, public trust, and yield, expressed as optimization of interest earnings. The safety of the principal invested always remains the primary objective. All investments shall be designed and managed in a manner responsive to the public trust and consistent with state and local law. The Town of Trophy Club shall maintain a comprehensive cash management program, which includes collection of accounts receivable, vendor payments in accordance with invoice terms, and prudent investment of available cash. Cash management is defined as the process of managing monies in order to insure maximum cash availability and maximum earnings on short-term investment of idle cash. Safety [PFIA 2256.005(b)(2)] Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit and interest rate risk.  Credit Risk and Concentration of Credit Risk – The Town of Trophy Club will minimize credit risk, the risk of loss due to the failure of the issuer or backer of the investment, and concentration of credit risk, the risk of loss attributed to the magnitude of investment in a single issuer, by: • Limiting investments to the safest types of investments • Pre-qualifying the financial institutions and broker/dealers with which the Town of Trophy Club will do business • Diversifying the investment portfolio so that potential losses on individual issuers will be minimized.  Interest Rate Risk – the Town of Trophy Club will manage the risk that the interest earnings and the market value of investments in the portfolio will fall due to changes in general interest rates by limiting the maximum weighted average maturity of the investment portfolio to 365 days. The Town of Trophy Club will, in addition,: • Structure the investment portfolio so that investments mature to meet cash requirements for ongoing operations, thereby avoiding the need to liquidate investments prior to maturity. • Invest operating funds primarily in certificates of deposit, shorter-term securities, money market mutual funds, or local government investment pools functioning as money market mutual funds. • Diversify maturities and staggering purchase dates to minimize the impact of market movements over time. Liquidity [PFIA 2256.005(b)(2)] The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that investments mature concurrent with cash needs to meet anticipated demands. Because all possible cash demands cannot be anticipated, a portion of the portfolio will be invested in shares of money market mutual funds or local government investment pools that offer same-day liquidity. In addition, a portion of the portfolio will consist of securities with active secondary or resale markets. Public Trust All participants in the Town of Trophy Club’s investment process shall seek to act responsibly as custodians of the public trust. The investment officer shall avoid any transaction that might impair public confidence in the Town of Trophy Club’s ability to govern effectively. Town Council Page 26 of 100 Meeting Date: November 5, 2012 Yield (Optimization of Interest Earnings) [PFIA 2256.005(b)(3)] The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. V. INVESTMENT STRATEGY STATEMENTS The Town of Trophy Club portfolio will be structured to benefit from anticipated market conditions and to achieve a reasonable return. Relative value among asset groups shall be analyzed and pursued as part of the investment program within the restrictions set forth by the investment policy. The Town of Trophy Club maintains portfolios which utilize four specific investment strategy considerations designed to address the unique characteristics of the fund groups represented in the portfolios. Operating Funds Suitability - All investments authorized in the Investment Policy are suitable for Operating Funds. Preservation and Safety of Principal - All investments shall be high quality securities with no perceived default risk. Liquidity - Investment strategies for the pooled operating funds have as their primary objective to assure that anticipated cash flows are matched with adequate investment liquidity. The dollar-weighted average maturity of operating funds, based on the stated final maturity date of each security, will be calculated and limited to one year or less. Constant $1 net asset value investment pools and money market mutual funds shall be an integral component in maintaining daily liquidity. Investments for these funds shall not exceed an 18-month period from date of purchase. Marketability - Securities with active and efficient secondary markets will be purchased in the event of an unanticipated cash requirement. Diversification - Maturities shall be staggered throughout the budget cycle to provide cash flows based on anticipated needs. Investment risks will be reduced through diversification among authorized investments. Yield - The Town’s objective is to attain a competitive market yield for comparable securities and portfolio constraints. The benchmark for Operating Funds shall be the 91 day Treasury bill. Reserve and Deposit Funds Suitability - All investments authorized in the Investment Policy are suitable for Reserve and Deposit Funds. Preservation and Safety of Principal - All investments shall be high quality securities with no perceived default risk. Liquidity - Investment strategies for reserve and deposit funds shall have as the primary objective the ability to generate a dependable revenue stream to the appropriate reserve fund from investments with a low degree of volatility. Except as may be required by the bond ordinance specific to an individual issue, investments should be of high quality, with short-to-intermediate-term maturities. The dollar-weighted Town Council Page 27 of 100 Meeting Date: November 5, 2012 average maturity of reserve and deposit funds, based on the stated final maturity date of each security, will be calculated and limited to two years or less. Marketability - Securities with active and efficient secondary markets will be purchased in the event of an unanticipated cash requirement. Diversification - Maturities shall be staggered throughout the budget cycle to provide cash flows based on anticipated needs. Investment risks will be reduced through diversification among authorized investments. Yield - The Town’s objective is to attain a competitive market yield for comparable securities and portfolio constraints. The benchmark for Reserve and Deposit Funds shall be the 91 day Treasury bill. Bond and Certificate Capital Project Funds and Special Purpose Funds Suitability - All investments authorized in the Investment Policy are suitable for Bond and Certificate Capital Project Funds and Special Purpose Funds. Preservation and Safety of Principal - All investments shall be high quality securities with no perceived default risk. Liquidity - Investment strategies for bond and certificate capital project funds, special projects and special purpose funds portfolios will have as their primary objective to assure that anticipated cash flows are matched with adequate investment liquidity. The stated final maturity dates of investments held should not exceed the estimated project completion date or a maturity of no greater than three years. The dollar- weighted average maturity of bond and certificate capital project funds and special purpose funds, based on the stated final maturity date of each security, will be calculated and limited to two years or less. Marketability - Securities with active and efficient secondary markets will be purchased in the event of an unanticipated cash requirement. Diversification - Maturities shall be staggered throughout the budget cycle to provide cash flows based on anticipated needs. Investment risks will be reduced through diversification among authorized investments. Yield - The Town’s objective is to attain a competitive market yield for comparable securities and portfolio constraints. The benchmark for Bond and Certificate Capital Project Funds and Special Purpose Funds shall be the 91 day Treasury bill. A secondary objective of these funds is to achieve a yield equal to or greater than the arbitrage yield of the applicable bond or certificate. Debt Service Funds Suitability - All investments authorized in the Investment Policy are suitable for Debt Service Funds. Preservation and Safety of Principal - All investments shall be high quality securities with no perceived default risk. Liquidity - Investment strategies for debt service funds shall have as the primary objective the assurance of investment liquidity adequate to cover the debt service obligation on the required payment date. Securities purchased shall not have a stated final maturity date which exceeds the debt service payment date. The dollar-weighted average maturity of debt service funds, based on the stated final maturity date of each security, will be calculated and limited to one year or less. Marketability - Securities with active and efficient secondary markets will be purchased in the event of an unanticipated cash requirement. Town Council Page 28 of 100 Meeting Date: November 5, 2012 Diversification - Maturities shall be staggered throughout the budget cycle to provide cash flows based on anticipated needs. Investment risks will be reduced through diversification among authorized investments. Yield - The Town’s objective is to attain a competitive market yield for comparable securities and portfolio constraints. The benchmark for Debt Service Funds shall be the 91 day Treasury bill. VI. RESPONSIBILITY AND CONTROL Delegation of Authority [PFIA 2256.005(f)] In accordance with the Town of Trophy Club and the Public Funds Investment Act, the Town Council designates the Director of Finance as the Town of Trophy Club’s Investment Officer. The Investment Officer is authorized to execute investment transactions on behalf of the Town of Trophy Club and may designate a secondary investment officer to act in his/her absence. No other person may engage in an investment transaction or the management of the Town of Trophy Club funds except as provided under the terms of this Investment Policy. The investment authority granted to the investing officer is effective until rescinded. Quality and Capability of Investment Management [PFIA 2256.005(b)(3)] The Town of Trophy Club shall provide periodic training in investments for the designated investment officers and other investment personnel through courses and seminars offered by professional organizations, associations, and other independent sources in order to insure the quality and capability of investment management in compliance with the Public Funds Investment Act. Training Requirement [PFIA 2256.008 – Local Governments] In accordance with the Town of Trophy Club and the Public Funds Investment Act, designated Investment Officers shall attend an investment training session no less often than once every two years and shall receive not less than 10 hours of instruction relating to investment responsibilities. A newly appointed Investment Officer must attend a training session of at least 10 hours of instruction within twelve months of the date the officer took office or assumed the officer’s duties. The investment training session shall be provided by an independent source. For purposes of this policy, an “independent source” from which investment training shall be obtained shall include a professional organization, an institution of higher education or any other sponsor other than a business organization with whom the Town of Trophy Club may engage in an investment transaction. Internal Controls (Best Practice) The Investment Officer is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the Town of Trophy Club are protected from loss, theft, or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management. Accordingly, the Investment Officer shall establish a process for annual independent review by an external auditor to assure compliance with policies and procedures. The internal controls shall address the following points. • Control of collusion. Town Council Page 29 of 100 Meeting Date: November 5, 2012 • Separation of transactions authority from accounting and record keeping. • Custodial safekeeping. • Avoidance of physical delivery securities. • Clear delegation of authority to subordinate staff members. • W ritten confirmation for telephone (voice) transactions for investments and wire transfers. • Development of a wire transfer agreement with the depository bank or third party custodian. Investment Policy Certification [PFIA 2256.005(k-l)] All investment providers, including financial institutions, banks, money market mutual funds, and local government investment pools, must sign a certification acknowledging that the organization has received and reviewed the Town of Trophy Club’s investment policy and that reasonable procedures and controls have been implemented to preclude investment transactions that are not authorized by the Town of Trophy Club’s policy. Prudence [PFIA 2256.006] The standard of prudence to be applied by the Investment Officer shall be the “prudent investor” rule. This rule states that “Investments shall be made with judgment and care, under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.” In determining whether an Investment Officer has exercised prudence with respect to an investment decision, the determination shall be made taking into consideration: • The investment of all funds, or funds under the Town of Trophy Club’s control, over which the officer had responsibility rather than a consideration as to the prudence of a single investment. • Whether the investment decision was consistent with the written approved investment policy of the Town of Trophy Club. Indemnification The Investment Officer, acting in accordance with written procedures and exercising due diligence, shall not be held personally responsible for a specific investment’s credit risk or market price changes, provided that these deviations are reported immediately and the appropriate action is taken to control adverse developments. Ethics and Conflicts of Interest [PFIA 2256.005(i)] Officers and employees involved in the investment process shall refrain from personal business activity that would conflict with the proper execution and management of the investment program, or that would impair their ability to make impartial decisions. Employees and Investment Committee (see Section XIII) members shall disclose any material interests in financial institutions with which they conduct business. They shall further disclose any personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and Investment Committee members shall refrain from undertaking personal investment transactions with the same individual with which business is conducted on behalf of the Town of Trophy Club. An Investment Committee member of the Town of Trophy Club who has a personal business relationship with an organization seeking to sell an investment to the Town of Trophy Club shall file a statement Town Council Page 30 of 100 Meeting Date: November 5, 2012 disclosing that personal business interest. An Investment Committee member who is related within the second degree by affinity or consanguinity to an individual seeking to sell an investment to the Town of Trophy Club shall file a statement disclosing that relationship. A statement required under this subsection must be filed with the Texas Ethics Commission and the Town Council. VII. SUITABLE AND AUTHORIZED INVESTMENTS Portfolio Management The Town of Trophy Club currently has a “buy and hold” portfolio strategy. Maturity dates are matched with cash flow requirements and investments are purchased with the intent to be held until maturity. However, investments may be liquidated prior to maturity for the following reasons: • An investment with declining credit may be liquidated early to minimize loss of principal. • Cash flow needs of the Town of Trophy Club require that the investment be liquidated. Investments [PFIA 2256.005(b)(4)(A)] Trophy Club funds governed by this policy may be invested in the instruments described below, all of which are authorized by Chapter 2256 of the Government Code (Public Funds Investment Act). Investment of Town of Trophy Club funds in any instrument or security not authorized for investment under the Act is prohibited. The Town of Trophy Club will not be required to liquidate an investment that becomes unauthorized subsequent to its purchase. I. Authorized 1. Obligations of the United States of America, its agencies and instrumentalities. 2. Certificates of Deposit issued by a depository institution that has its main office or a branch office in Texas. The certificate of deposit must be guaranteed or insured by the Federal Deposit Insurance Corporation or its successor or the National Credit Union Share Insurance Fund or its successor and secured by obligations in a manner and amount as provided by law. In addition, certificates of deposit obtained through a depository institution that has its main office or a branch office in Texas and that contractually agrees to place the funds in federally insured depository institutions in accordance with the conditions prescribed in Section 2256.010(b) of the Public Funds Investment Act are authorized investments. 3. Fully collateralized direct repurchase agreements with a defined termination date secured by obligations of the United States or its agencies and instrumentalities. These shall be pledged to the Town of Trophy Club, held in the Town of Trophy Club’s name, and deposited at the time the investment is made with the Town of Trophy Club or with a third party selected and approved by the Town of Trophy Club. Repurchase agreements must be purchased through a primary government securities dealer, as defined by the Federal Reserve, or a financial institution doing business in Texas. A Master Repurchase Agreement must be signed by the bank/dealer prior to investment in a repurchase agreement. All repurchase agreement transactions will be on a delivery vs. payment basis. Securities received for repurchase agreements must have a market value greater than or equal to 102 percent at the time funds are disbursed. (Sweep Accounts and/or Bond Proceeds) 4. Money Market Mutual funds that: 1) are registered and regulated by the Securities and Exchange Commission, 2) have a dollar weighted average stated maturity of 90 days or less, 3) seek to maintain a net asset value of $1.00 per share, and 4) are rated AA+ by at least one nationally recognized rating service. Town Council Page 31 of 100 Meeting Date: November 5, 2012 5. Local government investment pools, which 1) meet the requirements of Chapter 2256.016 of the Public Funds Investment Act, 2) are rated no lower than AAA or an equivalent rating by at least one nationally recognized rating service, and 3) are authorized by resolution or ordinance by the Town Council. In addition, a local government investment pool created to function as a money market mutual fund must mark its portfolio to the market daily and, to the extent reasonably possible, stabilize at $1.00 net asset value. All prudent measures will be taken to liquidate an investment that is downgraded to less than the required minimum rating. (PFIA 2256.021) Additionally, Trophy Club is not required to liquidate investments that were authorized at the time of purchase. (PFIA 2256.017) II. Not Authorized [PFIA 2256.009(b)(1-4)] Investments including interest-only or principal-only strips of obligations with underlying mortgage-backed security collateral, collateralized mortgage obligations with an inverse floating interest rate or a maturity date of over 10 years are strictly prohibited. VIII. INVESTMENT PARAMETERS Maximum Maturities [PFIA 2256.005(b)(4)(B)] The longer the maturity of investments, the greater their price volatility. Therefore, it is the Town of Trophy Club’s policy to concentrate its investment portfolio in shorter-term securities in order to limit principal risk caused by changes in interest rates. The Town of Trophy Club attempts to match its investments with anticipated cash flow requirements. The Town of Trophy Club will not directly invest in securities maturing more than two years from the date of purchase; however, the above described obligations, certificates, or agreements may be collateralized using longer dated investments. Because no secondary market exists for repurchase agreements, the maximum maturity shall be 120 days except in the case of a flexible repurchase agreement for bond proceeds. The maximum maturity for such an investment shall be determined in accordance with project cash flow projections and the requirements of the governing bond ordinance. The composite portfolio will have a weighted average maturity of 365 days or less. This dollar-weighted average maturity will be calculated using the stated final maturity dates of each security. [PFIA 2256.005(b)(4)(C)] Diversification [PFIA 2256.005(b)(3)] The Town of Trophy Club recognizes that investment risks can result from issuer defaults, market price changes or various technical complications leading to temporary illiquidity. Risk is managed through portfolio diversification that shall be achieved by the following general guidelines: • Limiting investments to avoid overconcentration in investments from a specific issuer or business sector (excluding U.S. Treasury securities and certificates of deposit that are fully insured and collateralized in accordance with state and federal law), • Limiting investment in investments that have higher credit, • Investing in investments with varying maturities, and Town Council Page 32 of 100 Meeting Date: November 5, 2012 • Continuously investing a portion of the portfolio in readily available funds such as local government investment pools (LGIPs), money market funds or overnight repurchase agreements to ensure that appropriate liquidity is maintained in order to meet ongoing obligations. IX. SELECTION OF BANKS AND DEALERS Depository At least every five years a Depository shall be selected through the Town of Trophy Club’s banking services procurement process, which shall include a formal request for proposal (RFP). The selection of a depository will be determined by competitive bid and evaluation of bids will be based on the following selection criteria: • The ability to qualify as a depository for public funds in accordance with state law. • The ability to provide requested information or financial statements for the periods specified. • The ability to meet all requirements in the banking RFP. • Complete response to all required items on the bid form • Lowest net banking service cost, consistent with the ability to provide an appropriate level of service. • The credit worthiness and financial stability of the bank. Authorized Brokers/Dealers [PFIA 2256.025] The Town of Trophy Club Investment Committee (see Section XIII) shall, at least annually, review, revise, and approve a list of qualified broker/dealers and financial institutions authorized to engage in securities transactions with the Town of Trophy Club. Those firms that request to become qualified bidders for securities transactions will be required to provide a completed broker/dealer questionnaire that provides information regarding creditworthiness, experience and reputation. and 2) a certification stating the firm has received, read and understood the Town of Trophy Club’s investment policy and agree to comply with the policy. Authorized firms may include primary dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15C3-1 (Uniform Net Capital Rule), and qualified depositories. All investment providers, including financial institutions, banks, money market mutual funds, and local government investment pools, must sign a certification acknowledging that the organization has received and reviewed the Town of Trophy Club’s investment policy and that reasonable procedures and controls have been implemented to preclude investment transactions that are not authorized by the Town of Trophy Club’s policy. [PFIA 2256.005(k-l)] Competitive Bids It is the policy of the Town of Trophy Club to require competitive bidding for all individual security purchases and sales except for: a) transactions with money market mutual funds and local government investment pools and b) treasury and agency securities purchased at issue through an approved broker/dealer or financial institution. The Investment Officer shall develop and maintain procedures for ensuring a competition in the investment of the Town of Trophy Club’s funds. Delivery vs. Payment [PFIA 2256.005(b)(4)(E)] Securities shall be purchased using the delivery vs. payment method with the exception of investment pools and mutual funds. Funds will be released after notification that the purchased security has been received. Town Council Page 33 of 100 Meeting Date: November 5, 2012 X. CUSTODIAL CREDIT RISK MANAGEMENT Safekeeping and Custodial Agreements The Town of Trophy Club shall contract with a bank or banks for the safekeeping of securities either owned by the Town of Trophy Club as part of its investment portfolio or held as collateral to secure demand or time deposits. Securities owned by the Town of Trophy Club shall be held in the Town of Trophy Club’s name as evidenced by safekeeping receipts of the institution holding the securities. Collateral for deposits will be held by a third party custodian designated by the Town of Trophy Club and pledged to the Town of Trophy Club as evidenced by safekeeping receipts of the institution with which the collateral is deposited. Original safekeeping receipts shall be obtained. Collateral may be held by the depository bank’s trust department, a Federal Reserve bank or branch of a Federal Reserve bank, a Federal Home Loan Bank, or a third party bank approved by the Town of Trophy Club. Collateral Policy [PFCA 2257.023] Consistent with the requirements of the Public Funds Collateral Act, it is the policy of the Town of Trophy Club to require full collateralization of all Town of Trophy Club funds on deposit with a depository bank, other than investments. In order to anticipate market changes and provide a level of security for all funds, the collateralization level will be 102% of market value of principal and accrued interest on the deposits or investments less an amount insured by the FDIC. At its discretion, the Town of Trophy Club may require a higher level of collateralization for certain investment securities. Securities pledged as collateral shall be held by an independent third party with whom the Town of Trophy Club has a current custodial agreement. The Investment Officer is responsible for entering into collateralization agreements with third party custodians in compliance with this Policy. The agreements are to specify the acceptable investment securities for collateral, including provisions relating to possession of the collateral, the substitution or release of investment securities, ownership of securities, and the method of valuation of securities. A clearly marked evidence of ownership (safekeeping receipt) must be supplied to the Town of Trophy Club and retained. Collateral shall be reviewed at least monthly to assure that the market value of the pledged securities is adequate. Collateral Defined The Town of Trophy Club shall accept only the following types of collateral: • Obligations of the United States or its agencies and instrumentalities • Direct obligations of the state of Texas or its agencies and instrumentalities • Collateralized mortgage obligations directly issued by a federal agency or instrumentality of the United States, the underlying security for which is guaranteed by an agency or instrumentality of the United States • Obligations of states, agencies, counties, cities, and other political subdivisions of any state rated as to investment quality by a nationally recognized rating firm not less than A or its equivalent with a remaining maturity of ten (10) years or less • A surety bond issued by an insurance company rated as to investment quality by a nationally recognized rating firm not less than A • A letter of credit issued to the Town of Trophy Club by the Federal Home Loan Bank Subject to Audit All collateral shall be subject to inspection and audit by the Investment Officer or his/her designee, including the Town of Trophy Club’s independent auditors. Town Council Page 34 of 100 Meeting Date: November 5, 2012 XI. PERFORMANCE Performance Standards The Town of Trophy Club’s investment portfolio will be managed in accordance with the parameters specified within this policy. The portfolio shall be designed with the objective of obtaining a rate of return through budgetary and economic cycles, commensurate with the investment risk constraints and the cash flow requirements of the Town of Trophy Club. Performance Benchmark It is the policy of the Town of Trophy Club to purchase investments with maturity dates coinciding with cash flow needs. Through this strategy, the Town of Trophy Club shall seek to optimize interest earnings utilizing allowable investments available on the market at that time. Market value will be calculated on a quarterly basis on all securities owned and compared to current book value. The Town of Trophy Club’s portfolio shall be designed with the objective of regularly meeting or exceeding the average rate of return on U.S. Treasury Bills at a maturity level comparable to the Town of Trophy Club’s weighted average maturity in days. XII. REPORTING (PFIA 2256.023) Methods The Investment Officer shall prepare an investment report on a quarterly basis that summarizes investment strategies employed in the most recent quarter and describes the portfolio in terms of investment securities, maturities, and shall explain the total investment return for the quarter. The quarterly investment report shall include a summary statement of investment activity prepared in compliance with generally accepted accounting principals. This summary will be prepared in a manner that will allow the Town of Trophy Club to ascertain whether investment activities during the reporting period have conformed to the Investment Policy. The report will be provided to the Town Council. The report will include the following: • A listing of individual securities held at the end of the reporting period. • Unrealized gains or losses resulting from appreciation or depreciation by listing the beginning and ending book and market value of securities for the period. • Additions and changes to the market value during the period. • Average weighted yield to maturity of portfolio as compared to applicable benchmark. • Listing of investments by maturity date. • Fully accrued interest for the reporting period • The percentage of the total portfolio that each type of investment represents. • Statement of compliance of the Town of Trophy Club’s investment portfolio with state law and the investment strategy and policy approved by the Town Council. An independent auditor will perform a formal annual review of the quarterly reports with the results reported to the governing body [PFIA 2256.023(d)]. Town Council Page 35 of 100 Meeting Date: November 5, 2012 Monitoring Market Value [PFIA 2256.005(b)(4)(D)] Market value of all securities in the portfolio will be determined on a quarterly basis. These values will be obtained from a reputable and independent source and disclosed to the governing body quarterly in a written report. XIII. INVESTMENT COMMITTEE Members An Investment Committee, consisting of the Town Manager, the Assistant Town Manager, the Investment Officer/Director of Finance, and the Secondary Investment Officer, shall review the Town’s investment strategies and monitor the results of the investment program at least quarterly. This review can be done by reviewing the quarterly written reports and by holding committee meetings as necessary. The committee will be authorized to invite other advisors to attend meetings as needed. Scope The Investment Committee shall include in its deliberations such topics as economic outlook, investment strategies, portfolio diversification, maturity structure, potential risk to the Town’s funds, evaluation and authorization of broker/dealers, rate of return on the investment portfolio, and review of compliance with the investment policy. The Investment Committee will also advise the Town Council of any future amendments to the investment policy that are deemed necessary or recommended. Procedures The investment policy shall require the Investment Committee to provide minutes of investment information discussed at any meetings held. The committee shall meet at least annually to discuss the investment program and policy. XIV. INVESTMENT POLICY ADOPTION [PFIA 2256.005(e)] The Town of Trophy Club’s investment policy shall be adopted by resolution of the Town Council. It is the Town of Trophy Club’s intent to comply with state laws and regulations. The Town of Trophy Club’s investment policy shall be subject to revisions consistent with changing laws, regulations, and needs of the Town of Trophy Club. The Town Council shall adopt a resolution stating that it has reviewed the policy and investment strategies not less than annually, approving any changes or modifications. Town Council Page 36 of 100 Meeting Date: November 5, 2012 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12012-558-T Name: Status:Type:Agenda Item Consent Agenda File created:In control:10/30/2012 Town Council On agenda:Final action:11/5/2012 Title:Consider and take appropriate action regarding a requested waiver for Jim Hase to be appointed to serve on two boards as required for compliance with the Board and Commission Handbook. Attachments: Action ByDate Action ResultVer. TITLE Consider and take appropriate action regarding a requested waiver for Jim Hase to be appointed to serve on two boards as required for compliance with the Board and Commission Handbook. EXPLANATION: At the October 15, 2012 Town Council meeting, an oversight was made regarding the request for a waiver to allow Jim Hase to be appointed to the Zoning Board of Adjustment as an Alternate. Mr. Hase is currently serving a term on the Citizen Financial Advisory Board and was subsequently appointed as an Alternate to the Zoning Board of Adjustment on October 15, 2012. TOWN COUNCIL GOAL(S): Goal # 3: Strong Partnerships and Community Involvement Create a positive regional identity Foster a well informed community Forge collaborative relationships with other governmental and public entities Support citizen volunteer opportunities Promote recreational / active lifestyle opportunities for all ages RECOMMENDATION AND JUSTIFICATION TO COUNCIL: Management recommends approval of this request. Town Council Page 37 of 100 Meeting Date: November 5, 2012 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12012-542-T Name: Status:Type:Agenda Item Regular Session File created:In control:10/29/2012 Town Council On agenda:Final action:11/5/2012 Title:Recognition of Sgt. James Norcross completing his Bachelors Degree through American Military University. Attachments: Action ByDate Action ResultVer. TITLE Recognition of Sgt. James Norcross completing his Bachelors Degree through American Military University. EXPLANATION: Sgt. Norcross has completed his Bachelor of Arts in Criminal Justice with the American Military University. We would like to recognize that accomplishment and honor Sgt. Norcross by recognizing him at this Council meeting. TOWN COUNCIL GOAL(S): 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 #5: Financial and Operational Stewardship Develop, recognize, 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 RECOMMENDATION AND JUSTIFICATION TO COUNCIL: Management requests that Council join us in recognizing this achievement. Town Council Page 38 of 100 Meeting Date: November 5, 2012 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12012-551-T Name: Status:Type:Agenda Item Regular Session File created:In control:10/29/2012 Town Council On agenda:Final action:11/5/2012 Title:Consider and take appropriate action regarding the traffic study findings at the Bobcat Boulevard and Durango intersections with Trophy Club Drive. Attachments:crossing guard counts for october.pdf TRO-Stop Study.pdf.pdf Action ByDate Action ResultVer. TITLE Consider and take appropriate action regarding the traffic study findings at the Bobcat Boulevard and Durango intersections with Trophy Club Drive. EXPLANATION: As the roundabout nears completion, we have received empirical data that does not support 3-way stops at either the Bobcat or Durango intersections. Safety, however, is paramount. Very little feedback from the residents of the Lakes would indicate that a 3-way stop is not necessary, however, slowing Trophy Club Drive down during the beginning and ending of the school day to protect the crosswalk at both of these intersections is very important. TOWN COUNCIL GOAL(S): 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 RECOMMENDATION AND JUSTIFICATION TO COUNCIL: Staff recommendation is to create school zones 100’ on either side of each of these intersections during drop-off and pick -up of school children to slow Trophy Club Drive vehicles at each of the crossing guard crosswalks at each of these intersections. Town Council Page 39 of 100 Meeting Date: November 5, 2012 Location Date AM PM Meadow Creek @ TC Dr.Tu. 10/9 9 5 We. 10/10 9 26 Th. 10/11 10 7 Fr. 10/12 10 8 Mo. 10/15 9 9 Tu. 10/16 7 6 We.10/17 9 7 Th.10/18 7 9 Fr.10/19 9 14 Village Trl. @ Lakeview Elem.Tu. 10/9 93 We. 10/10 78 Th. 10/11 90 Fr. 10/12 42 82 Mo. 10/15 41 111 Tu. 10/16 40 90 We.10/17 58 73 Th.10/18 58 87 Fr.10/19 47 82 Marshal Creek @ Bobcat Tu. 10/9 19 56 We. 10/10 28 50 Th. 10/11 25 53 Fr. 10/12 19 46 Mo. 10/15 19 66 Tu. 10/16 28 54 We.10/17 23 42 Th.10/18 19 45 Fr.10/19 26 40 Bobcat @ Parkview Tu. 10/9 58 53 We. 10/10 58 62 Th. 10/11 47 51 Fr. 10/12 59 68 Mo. 10/15 53 91 Tu. 10/16 82 69 We.10/17 58 65 Th.10/18 38 64 Fr.10/19 42 56 Town Council Page 40 of 100 Meeting Date: November 5, 2012 Location Date AM PM Durango @ Parkview Tu. 10/9 14 12 We. 10/10 12 12 Th. 10/11 14 12 Fr. 10/12 15 20 Mo. 10/15 14 22 Tu. 10/16 35 24 We.10/17 14 12 Th.10/18 12 12 Fr.10/19 15 12 Parkview @ Community Pool Tu. 10/9 8 84 We. 10/10 15 98 Th. 10/11 11 71 Fr. 10/12 19 73 Mo. 10/15 18 72 Tu. 10/16 14 70 We.10/17 63 178 Th.10/18 29 96 Fr.10/19 24 92 Location Date AM PM Durango @ TC Dr.Tu. 10/9 9 9 We. 10/10 8 10 Th. 10/11 11 15 Fr. 10/12 20 19 Mo. 10/15 6 20 Tu. 10/16 43 18 We.10/17 20 19 Th.10/18 16 10 Fr.10/19 43 18 Parkview @ Beck Elem.Tu. 10/9 93 77 We. 10/10 101 83 Th. 10/11 101 84 Fr. 10/12 101 84 Mo. 10/15 45 96 Tu. 10/16 104 85 We.10/17 115 80 Th.10/18 109 78 Fr.10/19 114 92 Town Council Page 41 of 100 Meeting Date: November 5, 2012 Location Date AM PM TL Dr. @ Village Trail Tu. 10/9 13 17 We. 10/10 11 17 Th. 10/11 9 16 Fr. 10/12 12 17 Mo. 10/15 11 14 Tu. 10/16 12 13 We.10/17 14 12 Th.10/18 16 10 Fr.10/19 12 17 TC Dr. @ Bobcat Tu. 10/9 8 18 We. 10/10 8 21 Th. 10/11 6 20 Fr. 10/12 10 20 Mo. 10/15 6 22 Tu. 10/16 25 24 We.10/17 10 18 Th.10/18 11 24 Fr.10/19 6 23 Town Council Page 42 of 100 Meeting Date: November 5, 2012 T o w n C o u n c i l P a g e 4 3 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 4 4 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 4 5 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 4 6 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 4 7 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 4 8 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 4 9 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 5 0 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 5 1 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 5 2 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 5 3 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 5 4 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 5 5 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 5 6 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 5 7 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 5 8 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 5 9 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 6 0 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 6 1 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 6 2 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 6 3 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 6 4 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 6 5 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 6 6 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 6 7 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 6 8 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 6 9 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 7 0 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 7 1 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 7 2 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 7 3 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 7 4 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 7 5 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 T o w n C o u n c i l P a g e 7 6 o f 1 0 0 M e e t i n g D a t e : N o v e m b e r 5 , 2 0 1 2 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12012-559-T Name: Status:Type:Agenda Item Regular Session File created:In control:10/31/2012 Town Council On agenda:Final action:11/5/2012 Title:Consider and take appropriate action regarding the painting of the three bridges and sound wall in the SH114/170 project in coordination with the City of Roanoke and the Town of Westlake; and authorizing the Mayor or her designee to execute all necessary documents. Attachments:Lois Bridge Painting.pdf Options_Board.pdf.pdf Action ByDate Action ResultVer. TITLE Consider and take appropriate action regarding the painting of the three bridges and sound wall in the SH114/170 project in coordination with the City of Roanoke and the Town of Westlake; and authorizing the Mayor or her designee to execute all necessary documents. EXPLANATION: EDC-4B met on October 22, 2012 and unanimously passed an action to fund 75% (not to exceed $50,000) for the purpose of participating with Westlake and Roanoke in the 114/170 corridor painting of Trophy Club, Trophy Lake, Lois Street bridges and the sound wall bordering the Trophy Club town limits. Total cost for this project is $67,493.73 per municipality. The remaining funds would come from the General Fund to allow Trophy Club to participate with the other cities. All three cities have agreed that it would require all municipalities to participate to complete this project, i.e., if one drops out … all three will drop out. TOWN COUNCIL GOAL(S): Goal # 3: Strong Partnerships and Community Involvement Create a positive regional identity Foster a well informed community Forge collaborative relationships with other governmental and public entities Support citizen volunteer opportunities Promote recreational / active lifestyle opportunities for all ages Goal #4: Healthy, Picturesque, and Environmentally Sound Promote recreational / active lifestyle opportunities for all ages Maintain neat and tidy appearance Improve property maintenance standards and code enforcement Develop / Enhance environmental and sustainability standards and programs RECOMMENDATION AND JUSTIFICATION TO COUNCIL: Recommend funding the remaining portion of the Trophy Club commitment ($17,493.73) to paint the 3 bridges and sound wall on the 114/170 corridor. Town Council Page 77 of 100 Meeting Date: November 5, 2012 From:Mike Slye Sent:Wednesday, October 31, 2012 4:58 PM To:Shannon DePrater Subject:FW: Lois Bridge Painting From: Stephen Seidel Sent: Wednesday, October 31, 2012 4:53 PM To: Mike Slye Subject: FW: Lois Bridge Painting Total w/ TxDOT 13% overhead = $67,493.73 Stephen Seidel Assistant Town Manager Town of Trophy Club From: Mike Slye Sent: Monday, October 22, 2012 5:43 PM To: Stephen Seidel Subject: FW: Lois Bridge Painting From: Jarrod Greenwood [mailto:jgreenwood@westlake-tx.org] Sent: Monday, October 22, 2012 2:25 PM To: Mike Slye; Jimmy Stathatos; Tom Brymer Subject: FW: Lois Bridge Painting Gentlemen, here are the costs for the two options revised per our discussion at lunch today. While I believe everyone wants to keep Trophy Club Bridge in the scope of work, I am including the revised Option 2 for your review since I provided it previously. To include the sound wall, the cost to each city will increase by approximately $14,410.09 ($59,728.96 - $45,318.87) for either option. For your convenience I have provided the previous email with the original cost sharing estimates below. Please remember, when talking to your Councils/Boards, these estimates are pre-TxDOT admin costs. Feel free to let me know if you need anything else. Jarrod The costs associated with the painting are included below as two options. As you may recall, we have eliminated the sound wall from the proposed work. Jimmy suggested that we forgo repainting of the Trophy Club Drive bridge and replace it with the Lois Street bridge. I have provided the costs with and without the TC Drive bridge. Please remember, these costs are pre­TxDOT admin costs. OPTION 1 OPTION 2 All 3 Bridges and Sound Wall 2 Bridges and Sound Wall Sound Wall $43,230.27 Sound Wall $43,230.27 Trophy Lake Bridge $20,783.04 Trophy Lake Bridge $20,783.04 Trophy Club Bridge $55,225.00 Trophy Club Bridge $55,225.00 Lois Street Bridge $59,948.57 Lois Street Bridge $59,948.57 TOTAL $179,186.88 TOTAL $123,961.88 Westlake Responsibility $59,728.96 Westlake Responsibility $41,320.63 Roanoke Responsibility $59,728.96 Roanoke Responsibility $41,320.63 Trophy Club Responsibility $59,728.96 Trophy Club Responsibility $41,320.63 OPTION 1 OPTION 2 All 3 Bridges 2 Bridges (proposed by Jimmy) Sound Wall $43,230.27 Sound Wall $43,230.27 Trophy Lake Bridge $20,783.04 Trophy Lake Bridge $20,783.04 Trophy Club Bridge $55,225.00 Trophy Club Bridge $55,225.00 Lois Street Bridge $59,948.57 Lois Street Bridge $59,948.57 TOTAL $135,956.61 TOTAL $80,731.61 Westlake Responsibility $45,318.87 Westlake Responsibility $26,910.54 Roanoke Responsibility $45,318.87 Roanoke Responsibility $26,910.54 Trophy Club Responsibility $45,318.87 Trophy Club Responsibility $26,910.54 Page 1 of 2 10/31/2012file:///Q:/TOWNSEC/PENDING/2012/028%20November%205%202012/FW%20Lois%... Town Council Page 78 of 100 Meeting Date: November 5, 2012 Jarrod ­­­­­Original Message­­­­­ From: Tom Brymer Sent: Wednesday, October 10, 2012 11:37 AM To: Jarrod Greenwood Cc: Jimmy Stathatos; Mike Slye Subject: Re: Lois Bridge Painting Jarrod, so what is the total cost for all the painting for the Lois St bridge and all the SH 170/114 interchange and how much is each of our one­ third of the cost? Speaking just for me, I'd like to get this "buttoned up". Tom Brymer Town Manager Superintendent Westlake Academy On Oct 10, 2012, at 9:30 AM, "Jarrod Greenwood" <jgreenwood@westlake­tx.org> wrote: > Mr. Stathatos and Mr. Slye, I have attached the SEMA proposal of $59,000 to repaint the Lois Street Bridge. Obviously TxDOT will add approximately 10% ­ 13% for administrative costs. As soon as the three municipalities determine what work we would like done, TxDOT will send an Advanced Funding Agreement to be executed by Westlake. It is our intention to have an ILA between Westlake, Roanoke, and Trophy Club funding reimbursement. > > Thank you, > > Jarrod > <SEMA19092012_00000.pdf> Page 2 of 2 10/31/2012file:///Q:/TOWNSEC/PENDING/2012/028%20November%205%202012/FW%20Lois%... Town Council Page 79 of 100 Meeting Date: November 5, 2012 To w n Co u n c i l Pa g e 80 of 10 0 Meeting Date: November 5, 2012 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12012-552-T Name: Status:Type:Agenda Item Regular Session File created:In control:10/29/2012 Town Council On agenda:Final action:11/5/2012 Title:Council to receive an update by Town Staff concerning the current and future Trophy Club Park Master Concept Plan; discussion of same. Attachments: Action ByDate Action ResultVer. TITLE Council to receive an update by Town Staff concerning the current and future Trophy Club Park Master Concept Plan; discussion of same. EXPLANATION: This update will cover various aspects of the current 2003 Master Concept Plan and examine the details and processes being evaluated in a revision of that plan. Concept plans delineate specific allowable uses within the park. A revised plan will have to be approved by both Town Council and the Army Corp of Engineers. TOWN COUNCIL GOAL(S): 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 life 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 RECOMMENDATION AND JUSTIFICATION TO COUNCIL: Master park plans are typically revised every five to seven years to adjust and reflect any anticipated changes in park use or operation. Town Council Page 81 of 100 Meeting Date: November 5, 2012 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12012-549-T Name: Status:Type:Agenda Item Regular Session File created:In control:10/29/2012 Town Council On agenda:Final action:11/5/2012 Title:Consider and take appropriate action to call a Special Session for Wednesday, November 14, 2012 to discuss the following items: - Canvass the November 6, 2012 Special Election - Calling/Action regarding the 2002 Obligation Bonds - Action regarding the creation of a Crime Control and Prevention District Attachments: Action ByDate Action ResultVer. TITLE Consider and take appropriate action to call a Special Session for Wednesday, November 14, 2012 to discuss the following items: - Canvass the November 6, 2012 Special Election - Calling/Action regarding the 2002 Obligation Bonds - Action regarding the creation of a Crime Control and Prevention District Town Council Page 82 of 100 Meeting Date: November 5, 2012 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12012-553-T Name: Status:Type:Agenda Item Regular Session File created:In control:10/29/2012 Town Council On agenda:Final action:11/5/2012 Title:Consider and take appropriate action regarding financial and variance report dated September 2012 (Preliminary). Attachments: Action ByDate Action ResultVer. TITLE Consider and take appropriate action regarding financial and variance report dated September 2012 (Preliminary). Town Council Page 83 of 100 Meeting Date: November 5, 2012 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12012-554-T Name: Status:Type:Agenda Item Regular Session File created:In control:10/29/2012 Town Council On agenda:Final action:11/5/2012 Title:Town Council Liaison Updates; discussion of same: - October 16, 2012 Charter Review Commission; Council member Tiffany - October 22, 2012 EDC 4B; Mayor Pro Tem Strother - October 23, 2012 TCMUD No. 1; Council member Rose Attachments: Action ByDate Action ResultVer. TITLE Town Council Liaison Updates; discussion of same: - October 16, 2012 Charter Review Commission; Council member Tiffany - October 22, 2012 EDC 4B; Mayor Pro Tem Strother - October 23, 2012 TCMUD No. 1; Council member Rose Town Council Page 84 of 100 Meeting Date: November 5, 2012 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12012-555-T Name: Status:Type:Agenda Item Regular Session File created:In control:10/29/2012 Town Council On agenda:Final action:11/5/2012 Title:Town Manager Slye's update regarding the following; discussion of same. - CAFR Award - Road Construction - Roundabout Dedication - Fire Department Open House/30th Anniversary - Christmas/Clock Tower Lighting Event Attachments: Action ByDate Action ResultVer. TITLE Town Manager Slye's update regarding the following; discussion of same. - CAFR Award - Road Construction - Roundabout Dedication - Fire Department Open House/30th Anniversary - Christmas/Clock Tower Lighting Event Town Council Page 85 of 100 Meeting Date: November 5, 2012 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12012-556-T Name: Status:Type:Agenda Item Regular Session File created:In control:10/29/2012 Town Council On agenda:Final action:11/5/2012 Title:Mayor and Council Updates regarding training opportunities, educational sessions, and regional meetings; discussion of same: - October 17, 2012 Joint Northwest Communities Partnership/Metroport Cities Partnership Meeting - October 18, 2012 Emergency Preparedness Planning Council Meeting - October 23, 2012 Vision Trophy Club Committee Meeting - October 26, 2012 Northwest Communities Partnership Task Force Meeting - October 29, 2012 Joint Chamber Meeting - October 31, 2012 Denton County Mayors' Meeting - November 2, 2012 Heart of North Texas Business Seminar Attachments: Action ByDate Action ResultVer. TITLE Mayor and Council Updates regarding training opportunities, educational sessions, and regional meetings; discussion of same: - October 17, 2012 Joint Northwest Communities Partnership/Metroport Cities Partnership Meeting - October 18, 2012 Emergency Preparedness Planning Council Meeting - October 23, 2012 Vision Trophy Club Committee Meeting - October 26, 2012 Northwest Communities Partnership Task Force Meeting - October 29, 2012 Joint Chamber Meeting - October 31, 2012 Denton County Mayors' Meeting - November 2, 2012 Heart of North Texas Business Seminar Town Council Page 86 of 100 Meeting Date: November 5, 2012 100 Municipal Drive Trophy Club, Texas 76262Trophy Club Entities Legislation Details (With Text) File #: Version:12012-557-T Name: Status:Type:Agenda Item Regular Session File created:In control:10/29/2012 Town Council On agenda:Final action:11/5/2012 Title:Items for Future Agendas. Attachments:Future Agenda Items List.pdf Action ByDate Action ResultVer. TITLE Items for Future Agendas. Town Council Page 87 of 100 Meeting Date: November 5, 2012 Town of Trophy Club Town Council Future Agenda Items List 1. Consider and take appropriate action regarding procurement policies and their alignment with State statutes. (Rose, 2/1/10) 2. Consider and take appropriate action regarding noise regulations for Oil and Gas Well Drilling and Production (Rose, 4/26/10) 3. Staff proposal regarding the amenity lakes, including associated costs to accept the amenity lakes from the developer. (Stotts, 10/4/10) 4. Consider and take appropriate action regarding the creation of a “Going Green” initiative throughout the Town. (White, 2/24/2011) 5. Consider and take appropriate action regarding updates to the Sign Ordinance (retail windows and political signs) (White and Cantrell, 5/2/2011) 6. Consider and take appropriate action regarding ball park signage. (Cantrell, 6/6/2011) 7. Consider and take appropriate action regarding a Golf Cart Community. (Tiffany, 6/6/2011) 8. Consider and take appropriate action regarding splash pad options at Harmony Park, including input/direction from Council to Staff to start construction and have available next summer. (Strother, 8/1/2011) 9. Consider and take appropriate action regarding the possibility of erecting a marquee at the North entrance of the Town and asking the MUD and/or developers to help with the funding. (Cantrell, 11/14/2011) 10. Consider and take appropriate action regarding Food Prep Carts for sporting events and special events and to review/update Park Policies (Cantrell, 5/7/2012) 11. Review of #10 of Chapter 8 “Nuisances”, Article I “Noise Nuisances”, Section 1.01 “Nuisances Defined” (Schroeder, 6/21/2012) 12. Consider and take appropriate action regarding America Supporting Americans. (Mayer, 8/20/2012) 13. Consider and take appropriate action regarding the creation of a Youth Council within Trophy Club (White and Schroeder, 8/20/2012) 14. Consider and take appropriate action regarding input from Staff regarding the creation of a ‘PID Board’ (Mayer, 9/24/2012) Town Council Page 88 of 100 Meeting Date: November 5, 2012 1   October 30, 2012 Number 9       PRE-FILING OF BILLS BEGINS IN NOVEMBER Bill filing for the 2013 legislative session begins on Monday, November 12. The 2011 session was characterized, first and foremost, by the volume of work. Lawmakers filed 6,303 bills and proposed Constitutional amendments. While that number represented a slight decrease from the 2009 figure, it is still substantially more than in years past. According to the trend, it is likely that at least that many bills, if not more, will be filed in the upcoming session. As always, the Legislative Update will feature summaries of city-related bills, starting with the next edition. For the upcoming session, filed bills will be grouped according to areas of interest to allow city officials to go directly to their area(s) of interest. During interim hearings, several committees have heard testimony related to limiting municipal authority in areas from land use to utility rate cases and more. (See “Interim Committees Update: Cities in the Crosshairs?” article elsewhere in this edition.) In addition, legislators will review several important state agencies, including the Public Utility Commission, the Railroad Commission, and others. Throw in elections that may lead to numerous “freshman” legislators, and cities will have their work cut out for them in 2013. Town Council Page 89 of 100 Meeting Date: November 5, 2012 2   WHAT’S YOUR AREA OF EXPERTISE OR INTEREST? JOIN YOUR FAVORITE E-LIST The TML staff has been gathering e-mail addresses from city officials (elected or appointed) who are willing to provide testimony during the 2013 legislative session, want to be kept “in the loop” on certain subject matters, and/or are willing to simply provide their perspective on a particular legislative matter. These “E-lists” are the primary way TML staff contacts city officials regarding harmful legislation, and are an invaluable grassroots tool. In many cases, bills will be set for committee hearings with essentially no notice. When that happens, an e-mail will go out to the appropriate E-list asking for information or action on your part. If you can, please respond as indicated. Legislators need to hear from their constituents more than from TML staff. It’s not too late to participate in the 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. COMPTROLLER ADDRESSES LOCAL TAXES: PART TWO—PROPERTY TAXES In August 2012, the Texas Comptroller released a report called “Your Money and the Taxing Facts,” which examined local tax growth. The report is available at: http://www.texastransparency.org/yourmoney/pdf/TexasItsYourMoney-TaxingFacts.pdf The gist of the report is that local taxes—school, city, county, and special district—are growing faster than inflation and population growth combined. The report makes this claim for both local sales taxes and local property taxes. Last month, we examined the report’s treatment of city sales taxes. This edition will look at property taxes, specifically city property taxes. The report uses a chart to show total growth in property tax levy by each type of taxing entity relative to inflation. Here’s the chart: Town Council Page 90 of 100 Meeting Date: November 5, 2012 3   The chart shows that city property taxes grew 192 percent between 1992 and 2010, while combined population growth and inflation in Texas was just 122 percent during the same period. Presumably, this is a bad thing if we accept the premise that combined state population growth and consumer inflation is the proper way of measuring (and thus limiting) acceptable property tax levy growth, and if we assume there are no other factors involved in explaining levy growth. But is it the proper method, and are there other factors? Let’s look at each component in turn. Population Growth The chart above seems to suggest that total state population growth ought to be a limiting factor in the city property tax growth. Is that a fair suggestion? It could be, but only if the rate of state population growth was a fair measure of city population growth. Here’s the thing: it isn’t a fair measure. As the following chart shows, population grew within incorporated Texas cities at a greater rate than it did outside cities. While non-city population in Texas grew by 35.5 percent from 1992 to 2010, city population grew by 45 percent. 0 2 4 6 8 10 12 14 16 18 20 Mi l l i o n s City Non City Town Council Page 91 of 100 Meeting Date: November 5, 2012 4   Texas’ state population growth is only useful when evaluating school district and county property taxes because all areas within the state lie within each of those. It’s less useful looking at cities because there are vast swaths of unincorporated land that fewer people are choosing to move to. Inflation The second benchmark the comptroller’s report uses to measure property tax growth is inflation. Specifically, it appears, the comptroller relies on the Consumer Price Index. The Consumer Price Index (CPI) measures cost increases for a variety of household consumer goods, including things like groceries and clothing. The problem with using CPI is that cities don’t buy a lot of things measured by it. Instead, cities buy things like asphalt, gasoline, police cars, and building materials. Fortunately, there is a better measure of the increasing costs of things that cities buy. It’s called the Municipal Cost Index. The Municipal Cost Index (MCI) is developed by American City and County magazine and goes back more than two decades. For the period 1992 to 2010, the MCI rose 63.5 percent as opposed to the 55-percent rise in the CPI. That’s a 15.3-percent relative spread between the price increase that the average consumer saw versus what the average city saw during that time period. Other Considerations Of course, even adjusting the comptroller’s population and inflation methodology to the more meaningful metrics of city population growth and municipal cost inflation doesn’t tell the whole story of why total city levy increased as it did from 1992 to 2010. One crucial point is that there was much new development and construction during the period, meaning there were more properties that needed services and that weren’t on the tax rolls in 1992. This figure of total new development is hard to extrapolate, but a fair analysis of increased tax levy would look at the change in tax levy on properties that existed in both 1992 and 2010. “Apples to apples,” in other words. Such a perspective would show what happened to a typical home or business owner over the period. Total levy increase, on the other hand, is misleading unless it can somehow back out new development and the service needs of that new development. Further, events like natural disasters—the devastating Gulf hurricanes that occurred during the time period in question—don’t occur on an inflation-adjusted timeline. When these events happen, it’s generally city taxes that are necessary to pay for rebuilding the lost infrastructure. Finally, as the following press release in response to recent comptroller attack on local debt points out, the state’s share of building new state infrastructure is decreasing decade by decade, particularly for our state highways: http://www.tml.org/scrollnews/Scroll%20News%20pdf/TML-PressRelease.pdf Of course, many of the highways are getting built, and that’s because more and more it’s cities doing the state’s job. Town Council Page 92 of 100 Meeting Date: November 5, 2012 5   IS YOUR CITY’S NEWSPAPER OVERCHARGING FOR LEGAL NOTICES? Numerous Texas statutes require cities to publish notice of various city actions. Chapter 2051 of the Texas Government Code generally governs the type of newspaper that should be used, as well as other notice-related issues. One issue that appears to continue to plague some cities is the amount a newspaper charges for legal notices. Some city officials may be surprised to learn that Section 2051.045 of the Government Code provides that “[t]he legal rate for publication of a notice in a newspaper is the newspaper’s lowest published rate for classified advertising.” Further, Section 2051.048 provides that a city shall publish notices in a newspaper that is: (1) published in the city; and (2) willing to publish the notice at or below the legal rate. If no newspaper published in the city will publish the notice at or below the legal rate, the city shall publish the notice in a different newspaper that: (1) is published in the county in which the city is located; and (2) will charge the legal rate or a lower rate. (The law also provides that, “if no newspaper published in the county in which the city is located will publish the notice at or below the legal rate, the city shall post the notice at the door of the county courthouse.”) Suspicious that some newspapers are overcharging cities to publish legal notices, the League conducted an informal survey of a handful of newspapers. League staff presented each newspaper with three separate notices and asked for pricing: 1. a simple notice to sell a car, which was 3 lines/66 spaces; 2. a required legal notice for probating an estate, which was 52 lines/724 spaces; and 3. a government procurement notice, which was 77 lines/1705 spaces. For each notice, the terms were varied as to number of days, cost per day, and cost per inch/line, etc. To be able to compare each cost in a uniform way, the results were broken down into a standard, that being “cost per space or letter per day.” Of the fourteen major daily newspapers surveyed, half charge more per space/letter per day for a government procurement notice than for either a car or probate notice. What do those results tell us? It depends. State law provides that “[t]he legal rate for publication of a notice in a newspaper is the newspaper’s lowest published rate for classified advertising,” but it does not provide a methodology for determining a newspaper’s “lowest published rate.” The “cost per space/letter” methodology used in the League’s survey seems reasonable, but it has never been tested in court. In any case, the results of the informal survey show that – depending on how a newspaper claims to calculate its rates – some may be overcharging for legal notices in violation of state law. City officials who feel that their newspaper’s rates may exceed those allowed by law may wish to have a conversation with their newspaper about the issue. Town Council Page 93 of 100 Meeting Date: November 5, 2012 6   FIFTH CIRCUIT ISSUES OPEN MEETINGS ACT OPINION On September 25, a three-judge panel of the federal Fifth Circuit Court of Appeals issued the much- anticipated opinion in Diana Asgeirsson v. Greg Abbott and the State of Texas. The case is commonly referred to as “TOMA II,” and is the second challenge brought by several city councilmembers who claim that the criminal closed meeting provision of the Texas Open Meetings Act (Act) unconstitutionally infringes on their right to freedom of speech. In short, the city officials lost. The trial court had previously ruled that the Act is – in legal terms – a valid “time, place, and manner restriction.” In other words, the trial court concluded that the Act does not limit what city officials can say (i.e., the content of their speech), but merely limits when and where they can say it (e.g., at a properly-posted open meeting). The Fifth Circuit upheld the trial court’s ruling, but it relied on an entirely different body of law to do so. Oddly, the court analogized the Act to regulations that govern the operation of sexually oriented business. In a seminal 1986 United States Supreme Court decision, Renton v. Playtime Theaters, the Court upheld a zoning ordinance that was facially content-based because it regulated only theaters showing sexually explicit material. The Court reasoned that the regulation was content-neutral because it was not aimed at suppressing the erotic message of the speech but instead at “secondary effects,” such as crime and lowered property values, that tend to accompany such theaters. In other words, the Court concluded that a regulation is not content-based merely because the applicability of the regulation depends on the content of the speech. A statute that appears content-based on its face may still be deemed content neutral if it is justified without regard to the content of the speech. The Fifth Circuit applied the same logic to the Act. It held that – even though the Act applies only to speech that relates to public business (i.e., it is “facially content-based”) – it is aimed at prohibiting the secondary effects of closed meetings. According to the court, closed meetings: (1) prevent transparency; (2) encourage fraud and corruption; and (3) foster mistrust in government. Those justifications are unrelated to the messages or ideas that are likely to be expressed in closed meetings. The court held that, if a quorum of a governing body were to meet in secret and discuss knitting or other topics unrelated to their powers as a governing body, no harm would occur. That situation is analogous to Playtime Theaters, in which adult movie theaters attracted crime and lowered property values, but not because the ideas or messages expressed in adult movies caused crime. Of particular interest to city officials is footnote 15 in the opinion. That footnote cites the amicus curiae brief submitted by TML, the South Dakota Municipal League, the National League of Cities, and the International Municipal Lawyers Association: In its brief as amicus curiae, the Texas Municipal League offers other situations in which TOMA arguably could prohibit constitutionally-protected speech. For example, amicus mentions a situation in which a city council member is prohibited from attending a civic event at which a fellow member who is running for re-election will be speaking about public-policy issues. Amicus argues that that is prohibited, because it is a quorum discussing government policy at an event not open to the general public. Town Council Page 94 of 100 Meeting Date: November 5, 2012 7   The potential situations listed, however, are not from actual cases but are only examples of advice attorneys have given to local government officials. Furthermore, such broad interpretations of the law are suspect, given that TOMA appears to exclude such gatherings from its definition of “meeting”: [“Meeting”] does not include the gathering of a quorum of a governmental body at a social function unrelated to the public business that is conducted by the body, or the attendance by a quorum of a governmental body at a regional, state, or national convention or workshop, ceremonial event, or press conference, if formal action is not taken and any discussion of public business is incidental to the social function, convention, workshop, ceremonial event, or press conference. “Broad interpretations” by municipal attorneys in Texas are absolutely essential in advising city officials whether they may be in violation of the Act. While the footnote could be used to defend against prosecution, it doesn’t change the opinion of League staff that city officials should exercise extreme caution at any event in which a quorum of the city council is present and public business is being discussed. That’s because once a closed meeting is held, by accident or otherwise, the elements of the crime have been met. A public official is then subject to criminal prosecution, period. The court’s opinion neglects to take into account the broad interpretations of the Act by the attorney general and some prosecutors. The court’s dismissal of their concerns will likely be little consolation to city councilmembers who still scratch their heads over how to conduct city business without running afoul of the Act. It is likely the opinion will be appealed. That could take the form of a request for a rehearing en banc (by the entire court instead of a three-judge panel) or an appeal directly to the U.S. Supreme Court. TEXAS FIRE COMMISSION FUNDING: MORE REVERSE INTERGOVERNMENTAL AID The state budget process is a long, arduous one that involves many months of hearings, meetings, staff time, and agency input. State agencies and commissions are usually aware of their fate with sufficient time to vet proposals and provide feedback to the legislature on funding mechanisms. However, changes made to the Texas Commission on Fire Protection’s budget in the final hours of the last legislative session require the commission to use city fees to fund the state’s general fund. Most regulatory agencies are essentially “self-funded.” This means that they are required to collect fees from those they regulate to cover all direct, indirect, and operational costs. The Commission on Fire Protection is no different. It is required to generate revenue through fees on cities and firefighters to cover all of the costs of the commission for the biennium. For the current biennium, this amounts to $3.9 million. However, a rider was placed in the commission’s budget during the last few hours of the 2011 session. The rider requires it to generate an additional $3.38 million to be swept into the state’s general revenue fund for general purpose state spending. Town Council Page 95 of 100 Meeting Date: November 5, 2012 8   To raise the needed revenue for the operation of the commission and to return the required $3.38 million to the state, the commission estimates that it will have to raise fees by 142 percent. Many firefighters, and in some cases the cities they work for, will see this fee increase for what it is: a new tax on their profession from which they will not see an additional benefit.     INTERIM COMMITTEE UPDATE: CITIES IN THE CROSSHAIRS? Senate Finance: Certificates of Obligation On September 25, the Senate Finance Committee held a hearing to receive a briefing on local debt issues, with an emphasis on the use of certificates of obligation. The committee hearing coincided with the comptroller’s release of the report “Your Money and Local Debt.” The report appears to paint an incomplete portrait of debt financing by Texas cities. (The report’s conclusions are refuted elsewhere in this edition in an article titled “Comptroller Addresses Local Taxes: Part Two – Property Taxes.”) While some at the hearing expressed concern over local debt, one witness’s testimony included a rational explanation of the underlying factors driving the issuance of local debt. Testimony from the Texas Bond Review Board (BRB) showed that increases in local debt are not as drastic as the raw numbers might suggest when factoring for growth in population and personal income in the state over the last decade. Further, the BRB pointed out that certificates of obligation make up a very small portion of all debt issued by Texas cities, reinforcing the fact that cities use certificates judiciously and usually only when issuing a general obligation bond or another debt obligation is not a viable alternative. Click here to view an excerpt of the BRB’s testimony from the hearing. The BRB charts and data that were provided to the committee are available at: www.tml.org/leg_updates/updatepdf/Senate_Finance_Hearing-9-25-12.pdf. House Land and Resource Management: “Pay or Waive” On September 24, the House Committee on Land and Resource Management held a hearing on whether cities should be subject to a state law known as the Private Real Property Rights Preservation Act (Act). The Act is designed to protect rural landowners from unnecessary government actions, and most city actions are exempt from it. It is an example of a “pay or waive” statute that would require a city to either pay a landowner for any alleged reduction in value of his property from any city regulation, or to waive the regulation altogether. (Of course, nothing in the law provides that if a land use regulation increases a parcel’s value, the owner must compensate the city in any way.) Cities are exempt from the law as a matter of good public policy. As opposed to rural residents, people move to cities with the expectation that their property will be protected for the good of the city as a whole. Because of that expectation, cities regulate private real property in many ways, such as by zoning and platting, by regulating nuisances, sexually oriented businesses, setbacks, and landscaping requirements, and by adopting building codes. If the Act is made to apply to cities, Town Council Page 96 of 100 Meeting Date: November 5, 2012 9   those regulatory powers would essentially become useless. Other states, such as Oregon, that have enacted similar laws have seen devastating results. Bills filed in every recent legislative session have attempted to make cities subject to the Act. These bills are championed by “property rights” advocates. Of course Texans, including city officials, believe in “property rights.” But the law’s proponents fail to take into account that, for those living and working in close proximity, everyone has property rights, and the stability cities provide is necessary to protect those rights. At the hearing, a representative of the Texas Landowner’s Council testified under oath that “a TML attorney got up and said to the assembled that a 99-percent reduction in property value should not be considered a taking in Texas.” That witness must have been misremembering the 2005 hearing to which he was referring. In fact, under fire from a former state representative who is no longer in office, the TML attorney said nothing of the sort. Click here to see the actual statement of the Landowner’s Council representative, and the actual testimony of TML staff from 2005. House State Affairs: Electric Rate Cases On October 24, the House Committee on State Affairs held a hearing on the following charge: Identify inefficiencies in the regulation of public utilities in order to minimize the cost of regulation to consumers. At the hearing, representatives from Centerpoint Energy and the Texas Public Policy Foundation (TPPF) appeared and testified that cities should not have a role in gas and electric rate cases. The TPPF representative told the committee that rate case expenses are extremely high, and that those expenses get added on to consumers’ utility bills. His solution? Eliminate cities’ original jurisdiction over investor-owned utilities and their ability to be reimbursed for legal and other fees in rate cases. The legislature can certainly do that. But what would be the effect? Almost certainly the answer would be exponentially higher bills for consumers. Historically, cities have formed coalitions to represent the collective interests of cities and their citizens before the regulatory agencies. By forming coalitions, cities have been able to present a strong consumer voice, which has served to reduce the costs that cities and their residents pay for electric and gas service. In numerous instances, without city participation, rate increases would have gone into effect without any meaningful review of a utility’s application. City participation in rate cases saves their ratepayers money by refusing to accept a utilities’ rate increase requests at face value. By participating in rate cases, cities are able to dig into the complex calculations of ratemaking to determine whether a utility has made a reasonable request. When cities determine that a utility’s request is unreasonable, they present evidence supporting the findings to the PUC or Railroad Commission and recommend reducing the rate increase requested by the utility. City coalitions do indeed incur expenses that are ultimately passed on to the consumer, but those expenses tend to be a small fraction of what a utility’s increased rates would have been without municipal scrutiny. Town Council Page 97 of 100 Meeting Date: November 5, 2012 10   The TPPF representative testified that “[we don’t need cities involved because] there are plenty of folks looking out for the consumer.” If the legislature removes cities from the ratemaking process, the falsity of that statement will certainly be borne out. To view the testimony of the TPPF representative, click here. TEXAS WATER DEVELOPMENT BOARD RECOMMENDS UNFUNDED MANDATE ON CITIES Prior to each legislative session, the Texas Water Development Board (TWDB) is required to provide the Texas Legislature with a “Legislative Priorities Report” outlining the agency’s policy priorities and requests that will be included in the agency’s Legislative Appropriations Request (LAR). In the Legislative Priorities Report to be submitted to the Eighty-Third Legislature, the TWDB included a recommendation to: Require annual water loss audits from retail public water suppliers that serve 3,300 or more connections. This would involve approximately 335 utilities, and these utilities are already required to provide annual reports on their water conservation plans. Currently, Section 16.0121(b) of the Texas Water Code requires all Texas retail public water utilities (including municipal water utilities) to perform and file a water loss audit with the TWDB every five years, rather than annually as called for in the recommendation. The next scheduled report is due in May 2016, for the year 2015. This TWDB recommendation presents an unfunded mandate on Texas cities. The League’s position has been that each city has a unique perspective and resulting priorities for expending resources to save water. Climate, population density, availability of water resources, and the ratio of industrial to residential water use in the city are but a few of the various factors that affect water-related decisions across the state. The heart of the issue is that while everyone agrees that water conservation is important for Texas, city officials have traditionally resisted the imposition of further state mandates that do not take into account the needs, financial and otherwise, of cities.     TEXAS SENATE COMMITTEE CHAIRS   On October 4, Lieutenant Governor Dewhurst appointed new Senate committee chairs. Below are the new appointees. Administration Senator Kevin Eltife (R – Tyler) Agricultural, Rural Affairs & Homeland Security Senator Craig Estes (R – Wichita Falls) Business & Commerce Senator John Carona (R – Dallas) Criminal Justice Senator John Whitmire (D – Houston) Town Council Page 98 of 100 Meeting Date: November 5, 2012 11   Economic Development Senator Bob Deuell (R – Greenville) Education Senator Dan Patrick (R – Houston) Finance Senator Tommy Williams (R – The Woodlands) Government Organization Senator Judith Zaffirini (D – Laredo) Health & Human Services Senator Jane Nelson (R – Flower Mound) Higher Education Senator Kel Seliger (R – Amarillo) Intergovernmental Relations Senator Juan “Chuy” Hinojosa (D – McAllen) Jurisprudence Senator Royce West (D – Dallas) Natural Resources Senator Troy Fraser (R – Horseshoe Bay) Nominations Senator Glenn Hegar (R – Katy) Open Government Senator Rodney Ellis (D – Houston) State Affairs Senator Robert Duncan (R – Lubbock) Transportation Senator Robert Nichols (R – Jacksonville) Veteran Affairs & Military Installations Senator Leticia Van de Putte (D – San Antonio)     TCEQ TAKING PUBLIC COMMENTS ON 2012 TEXAS INTEGRATED REPORT OF SURFACE WATER QUALITY In compliance with Sections 305(b) and 303(d) of the Federal Clean Water Act (CWA), the Texas Commission on Environmental Quality (TCEQ) evaluates water bodies in the state and identifies those that do not meet the uses and criteria defined in the Texas Surface Water Quality Standards (TSWQS). The Environmental Protection Agency (EPA) directs each state to document and submit the results of its evaluation to the EPA biennially, in even-numbered years. The TCEQ has recently released the 2012 Texas Integrated Report of Surface Water Quality, available at http://www.tceq.texas.gov/waterquality/assessment/12twqi/twqi12. The integrated report describes the status of water quality in all surface water bodies in Texas. The TCEQ uses the data collected during the most recent seven- to ten-year period. The data is gathered by many different organizations, and the quality of waters described in the integrated report represents a snapshot of conditions of these water bodies. Of note, one of the sections of this report, the 303(d) list, identifies impaired surface waters for which Total Maximum Daily Loads (TMDLs) are needed. Comments must be submitted to the TCEQ by 5:00 p.m. on November 19, 2012, via e-mail to 303d@tceq.texas.gov. Town Council Page 99 of 100 Meeting Date: November 5, 2012 12   DON’T FORGET TO POST BUDGET ONLINE Budget adoption time is over for most cities, and cities are required by law to post their adopted budget on the city’s Web site. More information on the budget posting requirement, and other Internet posting requirements, is available at http://www.tml.org/legal_pdf/InternetPostingReq.pdf. The Texas comptroller, as part of ongoing efforts relating to government transparency, is now providing online access to city budgets. City officials can notify the comptroller’s Economic Development and Analysis Division to provide a link to their city’s budget. The division can be contacted at 1-800-531-5441 (Ext. 3-4679) or transparency@cpa.state.tx.us. DIR ASSISTS WITH WEB SITE ACCESSIBILITY The Texas Department of Information Resources (DIR) announced a new program to assist state agencies, local government entities, and institutions of higher education in improving the accessibility of their public Web sites for people with disabilities. DIR contracted with a company to use Web accessibility scanning services. The service scans and analyzes key portions of agency public Web sites and provides precise information on accessibility errors found. To discuss scope and pricing, contact Wes Dillon at wes.dillon@deque.com. More information about the new program is available at http://www2.dir.state.tx.us/about/pressroom/Pages/WebsiteAccessibiltyScanning.aspx.   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 Page 100 of 100 Meeting Date: November 5, 2012