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Home My WebLink AboutCC 2003-02-24 Agendas . . CITY OF NORTH RICHLAND HILLS PRE-COUNCIL AGENDA FEBRUARY 24, 2003 - 5:45 PM For the Meeting conducted at the North Richland Hills City Hall - Pre-Council Chambers 7301 Northeast Loop 820. -. NUMBER ITEM ACTION TAKEN 1. Discuss Items from Regular February 24, 2003 City Council Meeting (5 Minutes) 2. Discuss Police Department Racial Profiling Annual Report IR 2003-016 (10 Minutes) 3. IR 2003-015 Presentation on GovDelivery Email Service (10 Minutes) 4. IR 2003-017 Update on QuadCitiesDFW Marketing Plan (5 Minutes) 5. *Executive Session - The Council may enter into closed Executive Session to discuss the following: 1.) Personnel Matters Authorized by Government Code §551.074 Deliberate Appointment of Alternate Judges 2.) Deliberation Regarding Real Property as Authorized by Government Code §551.072 a) Land Acquisition - Fire Station (North Davis) b) Land Acquisition - Parkland (North Davis) 3.) Consultation with City Attorney Authorized by Government Code §551.071 Davis v. NRH 6. Adjournment POSTED *Closed due to subject matter as provided by the Open Meetings ~"J; Jb~action is contemplated, it will be taken in open session. Date q..q..s 4 07 Time . 2/24/03 City Council Agenda Page 1 of 4 9J~~ · · · CITY OF NORTH RICHLAND HILLS CITY COUNCIL AGENDA FEBRUARY 24, 2003 - 7:00 PM For the Meeting conducted at the North Richland Hills City Hall Council Chambers 7301 Northeast Loop 820, at 7:00 p.m. The below listed items are placed on the Agenda for discussion and/or action. 1. Items on the consent agenda will be voted on in one motion unless a Council Member asks for separate discussion. 2. The Council reserves the right to retire into executive session concerning any of the items listed on this Agenda, whenever it is considered necessary and legally justified under the Open Meetings Act. 3. Persons with disabilities who plan to attend this meeting and who may need assistance should contact the City Secretary's office at 817-427-6060 two working days prior to the meeting so that appropriate arrangements can be made. NUMBER ITEM ACTION TAKEN 1. Call to Order 2. Invocation - Birdville High School Dr. Debbie Tribble, Principal Jake Earlv 3. Pledge - Birdville High School Dr. Debbie Tribble, Principal Alvssa Stevens 4. Special Presentations IR 2003-014 Certificate of Achievement - Fred Werner, Director of Finance - City of Grapevine (Past President of GFOA T) 5. Removal of Item(s) from the Consent Agenda 2/24/03 City Council Agenda Page 2 of 4 · · · NUMBER ITEM ACTION TAKEN 6. a. Minutes of the Pre-Council Meeting February 05, 2003 b. Minutes of the Council Meeting February 05, 2003 GN 2003-030 c. Authorizing TexSTAR Investment Pool - Resolution No. 2003-023 GN 2003-026 d. Rescheduling March 10, 2003 City Council Meeting to March 13, 2003 PU 2003-009 e. Award Bid for Utility Materials to Atlas Utility Supply in the Amount of $199,949 - Resolution No. 2003-018 PU 2003-010 f. Award Bid for Traffic Materials Supply Contract to Vulcan Signs and Centerline Supply and Approve Resolution No. 2003-019 PU 2003-011 g. Award Bid for 2003 Year Model Dump Trucks to Hayes Truck Group in the Amount of $161,656 PU 2003-012 h. Authorize Interlocal Purchasing Agreement with the City of Piano and Authorize Purchase of Accessory Items for Scott Breathing Apparatus - Resolution No. 2003-020 PW 2003-001 i. Recommend Award of Bid for the 27th Year CDBG Project/Susan Lee Lane Street Improvements to McClendon Construction in the amount of $471,518.85 Regional Law Enforcement Mutual Aid Task 7. GN 2003-027 Force AQreement - Resolution No. 2003-016 Metro Narcotics Intelligence and 8. GN 2003-028 Coordination Unit Interagency Agreement - Resolution No. 2003-017 Interlocal Agreement with Tarrant County 9. GN 2003-029 Public Health Services - Resolution No. 2003- 022 2/24/03 City Council Agenda Page 3 of 4 . . e NUMBER ITEM ACTION TAKEN Consider Ordinance Regulating Solid Waste 10. GN 2003-025 Disposal and Sanitation Requirements for Residential Construction Sites - Ordinance No. 2688 Investment Policy and Investment Strategies 11. GN 2003-024 Update - Resolution No. 2003-024 Presentation of Fiscal Year 2002 Audited 12. GN 2003-032 Financial Report & Approval 13. GN 2003-031 Adopt the Compensation and Classification Recommendations from Water Consulting Group - Resolution No. 2003-021 14. GN 2003-033 Appoint Municipal Court Alternate Judges - Ordinance No. 2689 15. Action on Any Item Discussed in Executive Session listed on Pre-Council Agenda 16. a) Citizens Presentation b) Information and Reports 17. Adjournment POSTED ';',,;JI-/) 3 Date q: l/!S a fYl Time - 9ø~ 2/24/03 City Council Agenda Page 4 of 4 . . . ., INFORMAL REPORT TO MAYOR AND CITY COUNCIL No. 2003-016 \ ~ V Date: ¡February 24, 2003 Subject: Police Department Racial Profiling Annual Report The 77th Regular Session of the Texas Legislature passed Senate Bill 1074, an Act relating to the prevention of racial profiling by certain peace officers. This new law specifically prohibited racial profiling by peace officers in Texas. This law also added, among other things, requirements for the training of peace officers. In addition, this law added Section 2.132 to the Texas Code of Criminal Procedure. This statute requires police departments to adopt a policy on racial profiling, which we have done. The North Richland Hills Police Department provided the required training to all its members before the statutory deadline of September 1, 2002. Most Patrol Section officers received this training before January 1, 2002 when key portions of the statute took effect. The Police Department continues to train new officers as the need arises. The required policy on racial profiling must include a report to the governing body of each county or municipality served by the agency. The annual report must contain, "information relating to traffic stops in which a citation is issued and to arrests resulting from those traffic stops, including information relating to: A) the race or ethnicity of the individual detained; and (B) whether a search was conducted and, if so, whether the person detained consented to the search." If the Police Department did not have video-recording equipment in all patrol cars and audio-recording devices for motorcycle officers, the required data collection and analysis would be much more extensive. Police Department officers recorded the required data on the existing citation form. Municipal Court personnel entered this data into the court database. The software program used by the court provides most of the information required for this report. The attached report meets the requirements of Section 2.132 of the Texas Code of Criminal Procedure. The data are only from traffic stops in which a citation is issued, as required by the statute. The report is broken down by race or ethnicity for each of the activities required by the statute. For example, the first category shows that Blacks received 1,083 of the 18,499 citations issued. That number represents 5.85% of citations issued. The next category shows that 1,032 Blacks were not searched. That represents 5.8% of persons who were not searched. The table shows three Blacks were subjected to a consent search. This represents 2.65% of all consent searches. Next is the number for non-consent search. This column shows 48 Blacks, were subjected to non-consent searches, representing 8.26% of all non-consent searches. The final category is arrests. There were 74 Blacks arrested representing 11.09% of all arrests made under the reporting criteria. The numbers are repeated for each ethnic or racial group. An analysis of the reported activities by race or ethnicity, compared to Census data on persons in the Fort Worth/Arlington area with access to at least one vehicle, reveals Whites are more likely to be subjected to the reported activities. Blacks, Hispanics and Whites are slightly over- represented in the arrest category. Asians are under-represented in all categories. During calendar year 2002, three racial profiling complaints were received. None of these complaints were substantiated. There is no evidence of racial profiling by the North Richland Hills Police Department evident in this report. Jøt Tom Shockley Chief of Police ISSUED BY THE CITY MANAGER NORTH RICHLAND HILLS, TEXAS .' . . . North Richland Hills Police Department 2002 Annual Racial Profiling Report Annual report required by Texas Code of Criminal Procedure Art. 2.132(7) Law Enforcement Policy on Racial Profiling Information relating to traffic stops in which a citation is issued and to arrests resulting from those traffic stops, including information relating to: (A) the race or ethnicity of the individual detained; and (8) whether a search was conducted and, if so, whether the person detained consented to the search Non 0/. Non- e¡. of Total No % No Consent e¡. Consent Consent Consent % Citations Citations Search Search Search Search Search Search Arrests Arrested Black Hispanic Asian White Amer. Ind. Other/Unknown 1,083 5.85% 1,032 5.80% 3 2.65% 48 8.26% 74 11.09% 1,476 7.98% 1,399 7.86% 6 5.31% 71 12.22% 91 13.64% 336 1.82% 328 1.84% 0 0.00% 8 1.38% 6 0.90% 15,529 83.95% 14,972 84.09% 103 91.15% 454 78.14% 494 74.06% 27 0.15% 26 0.15% 1 0.88% 0 0.00% 2 0.30% 48 0.26% 48 0.27% 0 0.00% 0 0.00% 0 0.00% 100.00% 100.00% 100.00% 100.00% 100.00% Totals 18,499 17,805 113 581 667 Percentages reported are of the racial or ethnic group compared to the total shown for the reported activity (Percentages are rounded) There were no substantiated racial profiling complaints received for calendar year 2002 ACLU Recommended Baselines (based on households with access to at least one vehicle by Race or Ethnicity for the Ft. Worth - Arlington Metro Area, according to U.S. Census data) Black 10.10% Hispanic 12.42% Asian 2.42% White 73.24% Amer. Ind. 0.60% Other/Unknown 1.22% 100.00% INFORMAL REPORT TO MAYOR AND CITY COUNCIL IR 2003-015 No. . + Date: j) GovDelivery on Website Subject: The City is expanding its web site capabilities by using a new email service called GovDelivery. Through this new service, we can notify citizens of updates to our web site through an automatic notification email. Residents can sign up to recei\e certain web site pages as they are updated. This is an excellent new resource for the City to use to communicate with its residents on current events. We look forward to the many opportunities this new service can provide us. February 24, 2003 The pages that residents can sign up to recei\e are the following: Job Openings City Council Agendas and Minutes Planning and Zoning Agendas and Minutes Election Information City Highlights City Newsletter Time of Your Life Off the Shelf Library Newsletter Budget Information Bid Updates Dining and Entertainment Guide Event Calendar Park and Recreation Calendar Environmental Services Calendar Citicable Schedule . I will be providing a presentation to demonstrate how the system works so you can see first-hand how easy it is for citizens to sign up for this great new service. Respectfully Submitted, ~t2Þt~ ~~ab~ ~ Public Information Director - ISSUED BY THE CITY MANAGER NORTH RICHLAND HILLS, TEXAS ~ .. INFORMAL REPORT TO MAYOR AND CITY COUNCIL No. 2003-017 + Date: February 24, 2003 Subject: Update on Quad Cities DFW Marketing Program The Northeast Tarrant Quality of Life Foundation has officially been renamed as the Quad Cities DFW Foundation. This organization is made up of equal representation from the cities of North Richland Hills, Richland Hills, Watauga and Haltom City; the Birdville and Keller Independent School Districts and the Northeast Tarrant Chamber of Commerce. Quad Cities DFW has been created to enhance the quality of life in our area and encourage economic development. The combined amenities of the area will help us compete on a larger scale for important development projects and hopefully bring a positive identity for our area. It is hoped that this initiative will establish a new, cohesive identity, or branding for the area which will help organizations identify this area regionally and nationally as Quad Cities DFW. This organization is not meant to compete with the North Richland Hills community or identity that we already have, but enhance efforts on a much larger scale to bring focus to our area. The Board is made up of a elected and appointed officials from each entity. Dr. Stephen Waddell from BISD currently serves as the Chairman of Quad Cities DFW. North Richland Hills representatives on the Board are Frank Metts and Larry Cunningham. Quad Cities DFW has no fulltime employees, but contract with the Todd Company for marketing efforts and the Northeast Tarrant Chamber for administrative support. The Economic Development Directors and assigned staff from each entity will serve as a volunteer Technical Advisory Committee making recommendations to the Board. The Board meets on a bi-monthly basis. We are pleased to announce the official kick-off of the Quad Cities DFW Foundation on Wednesday, March 5 at 4:30 p.m. at the Birdville Fine Arts/Athletic Complex. We invite the entire City Council and any interested individuals to participate in a festive event. We also plan to give a brief presentation on the proposed Quad Cities DFW Web site in the Council briefing session. :J~'~ John Pitstick Development Director ISSUED BY THE CITY MANAGER NORTH RICHLAND HILLS, TEXAS 1 e e e Education ExcelJen~e In Business w~t~~~~~f ~~~lity Of Life /..r, 'Æ'J1// [". ··\~"d'..-I '; , ' 'It A u.. '.... ...~. ,- ....0..... ..~'. ....... f. .... ."" .' ." .. ...... .. .....'.';;.... ._.,.~.'...,,~ ~~ / t'J ¡ 'a·-.........·<.'i~.4,;,;;-I^. ..$~..'.. ·····,··"·,,.s··""'..".·'~·D··~" ..... <<'fN' .~.,.~.. ..... '^-tf'~ '.~;' ....-- '. '~Ij" ·,~v. .......,. ..~e('. .....' .:' . .:. <. ~. ette.....,_~'.., '» I.',> ~ .":. ".. ¡¡ .( :!I' ,~...., 3 !, .... \, ~. \. ~', ". -'~'.. ':;',. - ~,,.,,..:>.~.f.,_ .P,">........,~- .~_ ~;;;...o'. __v Haltom City . h R·chland Hills, NortRic~land Hills Watauga Birdville ISD Keller ISD DfWINn. AIIIJtOfn' .~<~~~~~ INFORMAL REPORT TO MAYOR AND CITY COUNCIL No. 2003-014 ~ Date: --r Subject: February 24, 2003 Special Presentation - Certificate of Achievement for Excellence in Financial Reporting for the Comprehensive Financial Report ending September 30, 2001 The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its Comprehensive Financial Report for the fiscal year ending September 30, 2001. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports. The Certificate of Achievement is valid for a period of one year only. The City has been awarded a Certificate of Achievement for the last 19 consecutive years. In 2001 there were a total of 1,177 municipalities in the State of Texas, and 149 received the award. The Certificate of Achievement for Excellence in Financial Reporting Program was established by the Government Finance Officers Association (GFOA) in 1945. The GFOA instituted the program to encourage all government units to prepare and publish an easily readable and understandable comprehensive annual financial report (CAFR) covering all funds and financial transactions of the government during the fiscal year. The GFOA believes that governments have a special responsibility to provide the public with a fair presentation of their financial affairs. CAFR's go beyond the requirements of generally accepted accounting principles (GAAP) to provide the many users of government financial statements with a wide variety of information useful in evaluating the financial condition of a government. The Certificate Program provides participants with extensive technical reference materials to improve their financial reporting techniques. Suggestions and comments from reviewers also help staff to improve the document. Another great benefit of the Certificate of Achievement is that it provides a detailed vehicle by which market analysts, investors, potential investors and others may assess the relative attractiveness of our City's bonds compared to alternative investment opportunities. Fred Werner, Director of Finance with the City of Grapevine and past President of the Government Finance Officers Association of Texas, will be at the Council meeting to present the Certificate of Achievement award to the City. Although no action is needed by Council, we do commend Jackie Theriot, Accounting Manager, and the Accounting staff for their professional efforts that have made it possible for the City to again receive this prestigious award. This is truly a team effort by City Council, Management, and staff and meets Council Goal 4: Financially Responsible City Government. Respectfully submitted, ~·/~ Larry Koonce Director of Finance ISSUED BY THE CITY MANAGER NORTH RICHLAND HILLS, TEXAS .. , .- e MINUTES OF THE PRE-COUNCIL MEETING OF THE CITY OF NORTH RICH LAND HILLS, TEXAS, HELD IN THE PRE-COUNCIL ROOM AT CITY HALL, 7301 NORTHEAST LOOP 820 - FEBRUARY 05, 2003 - 6:00 P.M. Present: Oscar Trevino Frank Metts, Jr. Lyle E. Welch Scott Turnage JoAnn Johnson David Whitson Joe D. Tolbert Timothy J. Welch Mayor Mayor Pro Tern Councilman Councilman Councilwoman Councilman Councilman Councilman e Larry J. Cunningham Steve Norwood Greg Vick Karen Bostic Patricia Hutson Alicia Richardson George Staples Paulette Hartman John Pitstick Larry Koonce Mike Curtis Jenny Mabry Jim Browne Bill Thornton Chris Swartz Clay Caruthers Tom Shockley City Manager Assistant City Manager Assistant City Manager Managing Director Administrative/Fiscal Services City Secretary Assistant City Secretary City Attorney Assistant to the City Manager Director of Development Finance Director Public Works Director Communications Director Parks & Recreation Director Assistant Parks Director Aquatic Manager Budget Manager Police Chief e ITEM DISCUSSION ASSIGNMENT CALL TO ORDER Mayor Trevino called the meeting to order at 6:00 p.m. DISCUSS ITEMS FROM REGULAR FEBRUARY 05, None. 2003 CITY COUNCIL MEETING IR 2003-009 Mr. Jim Browne provided council with a INDUSTRIAL powerpoint presentation. Mr. Browne pointed HOLIDAY out requirements of estimates for the park site. NEIGHBORHOOD Mr. Browne also reported to council there are PARK SITE three options for council consideration. Option 1 A - <' e e e . IR 2003-010 UPDATE ON NETS URBAN TRANSIT DISTRICT BOARD Pre Council Minutes February 05, 2003 Page 2 Include bank stabilization work «$65,000) in the development of the park - Allows expedition of the project - Would not include culvert extension, parking or lake in Phase 1 -Timing may allow concurrent bidding with Forest Glen Option 1 B - Additional direction as to which amenities are desirable - List of amenities to be included in future CIP Budgets Proceeding now with engineering and permits to expedite the USACEfTCEQ review forthe future project would require a budget amendment to the current CIP budget. - Consideration of City Image enhancements - Bridge enhancements Option 2 Include some or all of the amenities in first phase of development · Budget amendment required to increase construction budget · 12-24 months required to secure necessary permits · Will require separate bid package from Forest Glen The Park & Recreation Board voted in favor of Options 1A and 1 B. Consensus of council was to move forward with the Park & Recreation Board recommendation. J.Browne/G.Vick Mr. Cunningham announced that the item would be heard at the next Pre-Council meeting due to limited time. NAN .. Pre Council Minutes February 05, 2003 Page 3 e ADJOURNMENT Mayor Trevino announced at 6:30 p.m. that the Council would adjourn to Executive Session for consultation with City Attorney as authorized by Government Code §551.071 to discuss Cable Issue and Davis v. NRH. Mayor Trevino announced at 6:45 p.m. that the Council would adjourn to the regular Council meeting Oscar Trevino - Mayor ATTEST: e Patricia Hutson - City Secretary e e e e MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, HELD IN THE CITY HALL, 7301 NORTHEAST LOOP 820 - FEBRUARY 05, 2003 - 7:00 P.M. 1. CALL TO ORDER Mayor Trevino called the meeting to order February 05, 2003 at 7:01 p.m. ROLL CALL Present: Oscar Trevino Frank Metts, Jr. Lyle E. Welch Scott Turnage JoAnn Johnson David Whitson Joe D. Tolbert Timothy J. Welch Mayor Mayor Pro T em Councilman Councilman Councilwoman Councilman Councilman Councilman Staff: Larry J. Cunningham Steve Norwood Greg Vick Karen Bostic Patricia Hutson Alicia Richardson George Staples City Manager Assistant City Manager Assistant City Manager Managing Director Administrative/Fiscal Services City Secretary Assistant City Secretary Attorney 2. INVOCATION Councilwoman Johnson gave the invocation. 3. PLEDGE OF ALLEGIANCE Councilwoman Johnson led council in the pledge of allegiance. 4. SPECIAL PRESENTATIONS None. City Council Minutes February 05, 2003 Page 2 e 5. REMOVAL OF ITEM(S) FROM THE CONSENT AGENDA None. 6. APPROVAL OF CONSENT AGENDA ITEMS APPROVED A. MINUTES OF THE PRE-COUNCIL MEETING JANUARY 27, 2003 B. MINUTES OF THE CITY COUNCIL MEETING JANUARY 27, 2003 C. GN 2003-015 VACATE THE DEDICATION OF A PORTION OF THE EXISTING RIGHT-OF-WAY FOR CHEROKEE TRAIL- ORDINANCE NO. 2686 D. GN 2003-016 REJECT BIDS FOR THE RUFE SNOW DRIVE ELEVATED STORAGE TANK E. GN 2003-019 CALLING MAY 3,2003 CITY COUNCIL ELECTION - RESOLUTION NO. 2003-009 e F. PU 2003-006 AWARD OF BID TO WILLIAMS LANDSCAPE, INC. IN THE AMOUNT OF $31,652.53 FOR THE CONSTRUCTION OF PLANTER WALLS, IRRIGATION AND LANDSCAPING - RESOLUTION NO. 2003-014 G. PU 2003-007 AWARD OF BID TO JOHN DEERE LANDSCAPE IN THE AMOUNT OF $27,590 FOR THE PURCHASE OF HARDWARE NECESSARY FOR TUCOR IRRIGATION CONVERSION - RESOLUTION NO. 2003-015 H. PU 2003-008 AWARD CONTRACT FOR GIS WATER, WASTEWATER AND STORM DRAIN SYSTEM UPDATE TO APPLIED TECHNOLOGICAL SERVICES - RESOLUTION NO. 2003-013 COUNCILMAN WHITSON MOVED, SECONDED BY COUNCILMAN LYLE E. WELCH TO APPROVE THE CONSENT AGENDA. Motion to approve carried 7-0. 7. PS 2001-24 CONSIDERATION OF A REQUEST FROM ARCADIA HOLDINGS FOR THE APPROVAL OF THE FINAL PLAT OF HOME TOWN EAST INFRASTRUCTURE I ADDITION LOCATED EAST OF BRIDGE STREET AND WEST OF CARDINAL e LANE - 4.6 ACRES e e e City Council Minutes February 05, 2003 Page 3 Item 7 heard later in the meeting. 8. PZ 2002-42 PUBLIC HEARING TO CONSIDER A REQUEST FROM REBEL PROPERTIES, LLC, FOR A ZONING CHANGE FROM "AG AGRICULTURAL TO "R- 2" SINGLE FAMILY RESIDENTIAL (LOCATED IN THE 7000 BLOCK OF HIGHTOWER DRIVE AND THE 7200 BLOCK OF CHAPMAN ROAD) -77.1 ACRES- ORDINANCE NO. 2684 APPROVED Mayor Trevino opened the public hearing. Mr. Mark Wood, applicant, advised council Rebel Properties plans to develop the site as a low density, single family neighborhood. Mr. Wood informed council that he was aware of the adjacent neighborhoods concern relating to his development connecting to their development. Mr. Wood advised council that the two streets would be stubbed out and would not connect to surrounding neighborhood. Mr. Pitstick summarized item for council and gave staff and Planning and Zoning recommendations. Mayor Trevino asked for anyone wishing to speak in favor of item to come forward. There being no one wishing to speak, Mayor Trevino asked for anyone wishing to speak in opposition to come forward. HOA Chairman Kathy Luppy, 6856 Richfield Drive; expressed the Homeowners Association desire to be involved in the planning process of the development. Ms. Luppy stated the HOA would like to be aware of the road construction. Mr. Scott Swanson, 6832 Richfield Drive; expressed his concern with the following: development not having infrastructure, increased road traffic and damage to Hightower, who will pay for the road repairs when Hightower deteriorates from the additional traffic and the capability of the new drainage. Mayor Trevino stated he understood the concerns of the citizens up north. With the recent approval of the Bond Election the citizens will see a few changes in their immediate area. There will be a street light erected on Chapman and Douglas will be widened from Starnes to Hightower. There being no one else wishing to speak Mayor Trevino closed the public hearing. COUNCILWOMAN JOHNSON MOVED TO APPROVE ORDINANCE No. 2684. COUNCILMAN WHITSON SECONDED THE MOTION. e e e City Council Minutes February 05,2003 Page 4 Motion to approve carried 7-0. 9. GN 2003-017 APPROVE RESOLUTION ENDORSING THE IMPLEMENTATION OF A CONTINUING PRETREATMENT PROGRAM - RESOLUTION NO. 2003-012 APPROVED . Mr. Mike Curtis, Public Works Director, advised council that Trinity River Authority had been issued a revised discharge permit by the Texas Commission on Environmental Quality (formerly the TNRCC). The Texas Commission on Environmental Quality is requiring Trinity River Authority to have all wholesale customers submit several items which address the Industrial Pretreatment Program. The City needs to submit a resolution endorsing the implementation of the pretreatment program and an ordinance revising the Industrial Waste Ordinance which revises the local limits on "fats, oils, greases and metals" to be discharged. Mr. Curtis advised council that all wholesale customers have been requested to provide the same resolution. MAYOR PRO TEM METTS MOVED TO APPROVE RESOLUTION No. 2003-012. COUNCILMAN TIM WELCH SECONDED THE MOTION. Motion to approve carried 7-0. 10. GN 20003-018 ADOPT A REVISED INDUSTRIAL WASTE ORDINANCE AND REPEAL ORDINANCE NO. 1773 - ORDINANCE NO. 2687 APPROVED Mr. Curtis advised council this ordinance is required by the Texas Commission on Environmental Quality in order to satisfy Trinity River Authority discharge permit. COUNCILMAN WHITSON MOVED TO APPROVE ORDINANCE No. 2687. COUNCILMAN TOLBERT SECONDED THE MOTION. Motion to approve carried 7-0. 11. GN 2003-020 CANVASSING FEBRUARY 1, 2003 SPECIAL BOND ELECTION - RESOLUTION NO. 2003-010 APPROVED Ms. Patricia Hutson, City Secretary, advised council pursuant to State law, the City Council must canvass the February 1, 2003 Special Bond Election. Resolution No. e e e City Council Minutes February 05, 2003 Page 5 2003-010 canvasses the election and declares the results. The following was read into record: RESOLUTION NO. 2003-010 A RESOLUTION canvassing the returns and declaring the results of the bond election held February 1, 2003. WHEREAS, an election was held in the City of North Richland Hills, Texas on the 1 sl day of February, 2003, for the purpose of submitting certain propositions for the issuance of bonds to the resident electors of the City; and WHEREAS, it is hereby found and determined that notice of the election was duly given in the form, manner and time required by law, and said election was in all respects legally held and conducted in accordance with applicable laws of the State of Texas and the proceedings calling and governing the holding of such election; and WHEREAS, the returns of said election have been duly and legally made and submitted to the City Council for canvas~ing, and a tabulation of the returns for the polling places and for early voting, as canvassed and tabulated by this governing body and shown in Exhibit A attached hereto, reflect that the total sum of votes counted "FOR" and "AGAINST" the propositions submitted were as follows: PROPOSITION NUMBER 1 "THE ISSUANCE OF $30,010,000 GENERAL OBLIGATION BONDS FOR STREET IMPROVEMENTS" "FOR" 844 votes "AGAINST" 619 votes PROPOSITION NUMBER 2 "THE ISSUANCE OF $4,000,000 GENERAL OBLIGATION BONDS FOR DRAINAGE IMPROVEMENTS" "FOR" 805 votes "AGAINST" 661 votes e e e City Council Minutes February 05, 2003 Page 6 PROPOSITION NUMBER 3 "THE ISSUANCE OF $1,900,000 GENERAL OBLIGATION BONDS FOR PUBLIC SAFETY FACILITIES (FIRE AND POLICE)" "FOR" 793 votes "AGAINST" 673 votes PROPOSITION NUMBER 4 "THE ISSUANCE OF $1,000,000 GENERAL OBLIGATION BONDS FOR THE CITY'S MAINTENANCE SERVICE CENTER FACILITY" "FOR" 726 votes "AGAINST" 737 votes PROPOSITION NUMBER 5 "THE ISSUANCE OF $1,300,000 GENERAL OBLIGATION BONDS FOR AN ANIMAL SHELTER" "FOR" 879 votes "AGAINST" 588 votes THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: SECTION 1: All of the recitals contained in the preamble of this resolution are found to be true and are adopted as findings of fact by this governing body and as part of its judgment. SECTION 2: It is further found and determined that the results of the election are as canvassed and tabulated in the preamble hereof and in Exhibit A attached hereto, and a majority of the electors voting at said election having voted in favor of the propositions numbered 1, 2, 3 and 5, the Board of Trustees is hereby declared to be authorized and empowered to issue bonds of the District in the amount and for the purposes stated in said propositions numbered 1, 2, 3 and 5; all as more fully set forth and identified above and in the proceedings calling said bond election. . SECTION 3: The City Secretary is hereby authorized and directed to make the appropriate entries of information appearing in the tabulation of precinct results shown in Exhibit A attached hereto in the election register maintained by the City in accordance with provisions of Section 67.006 of the Election Code. e e e City Council Minutes February 05, 2003 Page 7 COUNCILMAN TOLBERT MOVED TO APPROVE RESOLUTION No. 2003-010. COUNCILMAN TURNAGE SECONDED THE MOTION. Motion to approve carried 7-0. 12. GN 2003-021 ORDINANCE TO AMEND THE SIGN ORDINANCE FOR POLITICAL SIGNS - ORDINANCE NO. 2685 TABLED Mayor Trevino advised council that he requested this item be brought for council consideration so the City would have the ability to pick up political signs while remaining unbiased. Mayor Trevino admitted that the timing may not have been the best, but he wanted to address the problem of political signs being placed in public right-of-ways. Mayor Trevino would like council to table item in order to give staff time to address the following: - A penalty or fee be included if the ordinance were to be violated - Staff to review what other cities are doing with regards to political signs - Address the distance for all right-of-ways - Staff to review and address citizens freedom of speech - An unbiased way of collecting political signs that are in violation COUNCILMAN TOLBERT MOVED TO TABLE GN 2003-021 AND ORDINANCE No. 2685. COUNCILWOMAN JOHNSON SECONDED THE MOTION. Councilwoman Johnson would like staff to include the utility easements because they also have provisions as does the State. Councilman Whitson asked staff to look out for safety hazards. Motion to table carried 7-0. e e e City Council Minutes February 05, 2003 Page 8 13. GN 2003-022 RESOLUTION OF SUPPORT TO FUND THE FIRST RESPONDER INITIATIVE-RESOLUTION NO. 2003-011 APPROVED Mr. Greg Vick, Assistant City Manager, summarized item for council. COUNCILMAN TIM WELCH MOVED, SECONDED BY COUNCILWOMAN JOHNSON TO APPROVE RESOLUTION No. 2003-011. Motion to approve carried 7-0. 7. PS 2001-24 CONSIDERATION OF A REQUEST FROM ARCADIA HOLDINGS FOR THE APPROVAL OF THE FINAL PLAT OF HOME TOWN EAST INFRASTRUCTURE I ADDITION LOCATED EAST OF BRIDGE STREET AND WEST OF CARDINAL LANE - 4.6 ACRES APPROVED Mayor Trevino advised council that the applicant was not available to present his case. Mayor Trevino asked council if they wanted to hear the case or follow their procedure that states the applicant must be present. Mr. John Pitstick, Director of Development, summarized item for council. Councilman Tim Welch asked staff when construction would begin on project. Mr. Pitstick advised council that applicant wants to move forward quickly with project. Mayor Trevino asked about the status of closing a median off of Davis to allow fire truck access. Mr. Curtis advised council that he was not aware of the status of the median, but would get information and forward to council. Mayor Trevino asked if staff would report back to council by means of an informal report. COUNCILMAN TURNAGE MOVED TO APPROVE PS 2001-24. COUNCILMAN TIM WELCH SECONDED THE MOTION. Motion to approved carried 7-0. e e - City Council Minutes February 05, 2003 Page 9 14. ACTION ON ANY ITEM DISCUSSED IN EXECUTIVE SESSION LISTED ON PRE- COUNCIL AGENDA None. 15. A. CITIZENS PRESENTATION Mr. George Gay, 6612 Circleview Court (south of Loop 820, just off Rufe Snow Drive) said that a few of his neighbors have received code violation letters for their gardens in the TXU easement. Mr. Gay understand that there is a hike and bike trail being proposed along the Oncor right-of-way. Mr. Gay would like someone from staff to meet with him and his neighbors. Mayor Trevino asked Mr. Cunningham to arrange a meeting with the citizens and staff. B.INFORMATION AND REPORTS Councilman Turnage announced the following. The City will be celebrating its first 50th Anniversary event on Saturday, February 22nd. The Fort Worth Symphony Orchestra will be performing at Birdville High School. The concert tickets are $15.00 per person and the concert begins at 7:30 p.m. Come join us as we celebrate our 50th Anniversary together! Februarv6,7,10 Winter Camp NRH Recreation Center 6720 NE Loop 820 817 -427 -6600 Februarv 15 Critter Connection North Hills Mall 10:00 a.m. - 6:00 p.m. 817-427 -6570 e e e City Council Minutes February 05, 2003 Page 10 16. ADJOURNMENT Mayor Trevino adjour~ed the meeting at 7:57 p.m. ATTEST: Oscar Trevino - Mayor Patricia Hutson - City Secretary .,.,;' CITY OF NORTH RICHLAND HILLS e Department: Finance Council Meeting Date: 02/24/2003 Subject: Authorizinq TexSTAR Investment Pool Resolution No. 2003-023 Agenda Number: GN 2003-030 Among the primary goals of the City's Investment Policy are diversification and liquidity to provide safety against market volatility and to ensure availability of funds, respectively. The City accomplishes these goals, in part, by investing idle, available funds in two fully liquid investment pools, TexPool and LOGIC. During the January 20,2003 quarterly Investment Committee meeting, committee members made a motion to approve a third investment pool, Texas Short Term Asset Reserve Program (TexSTAR), as an alternative investment vehicle to the existing pools. The Texas Public Funds Investment Act is the controlling authority over the pool and stipulates how the pool is operated and how funds are invested. TexSTAR offers yields competitive with currently approved pools and is operated by experienced, professional management. e TexSTAR is rated AAAm by Standard & Poor's which is one of the highest required ratings available. All invested funds are available on demand. The pool seeks to maintain a stable net asset value of $1 as required by the Public Funds Investment Act. This means that the City is assured of full return of principal invested. The pool does not directly charge participants' accounts for fees or "loads" for investing funds; the pool earns money by deducting basis points from the yield attained and credits interest to participants accounts monthly net of fees. Currently, the pool has waived all management fees. As of January 31, 2003, the pool's invested balance was $1.2 billion and 128 participants (see attached list) were enrolled representing mainly cities, school districts, and utility districts. While the City will have the authority to invest in TexSTAR, the City is in no way obligated to do so. Rates and other financial considerations will be assessed by the Director of Finance before a decision is made to invest City funds. The proposed resolution authorizes the Investment Officer to execute the attached forms that will designate the Texas Short Term Asset Reserve Program (TexSTAR) as an authorized investment pool of the City, authorize investment personnel, and establish City accounts. Recommendation: To approve Resolution NO.2oo3-023 which designates TexSTAR as an authorized investment pool for the City's overnight funds. Finance Review Source of Funds: Bonds (GO/Rev.) Operating Budget Other Account Number N/ A Sufficient Funds Avaifable \U£ Budget Director P",nø 1 nf ~ e e e Resolution No. 2003-023 WHEREAS, pursuant to the requirements of the Public Funds Investment Act, Texas Government Code, Section 2256.001 et seq. (the "Act"), the City Council of the City of North Richland Hills has previously reviewed and adopted an investment policy that provides in part that the funds of the City of North Richland Hills will be invested in investments permitted by the Act in order to: (i) invest only in investments legally permitted under Texas law; (ii) minimize risk by managing portfolio investments so as to preserve principal and maintain a stable asset value; (iii) manage portfolio investments to ensure cash will be available as required to finance operations; and (iv) maximize current income to the degree consistent with legality, safety, and liquidity; and WHEREAS, the Act provides that funds under the control of the City of North Richland Hills may be invested through investment pools meeting the standards of Section 2256.016 of the Act and the City of North Richland Hills has reviewed the Information Statement, dated 4/8/02 (the "Statement"), of Texas Short Term Asset Reserve Program ("TexSTAR"), an investment pool (the "Pool") administered by First Southwest Asset Management, Inc. and JPMorgan Fleming Asset Management (USA), Inc. as the managers of the Pool (the "Managers") and has determined that the investments proposed to be acquired by the Pool are of a type permitted by the Act and consistent with the Policy will assist in achieving the goals set forth in the Policy; and WHEREAS, the City of North Richland Hills understands that the Pool is created under the authority of applicable Texas law, including the Interlocal Cooperation Act, Chapter 791 of the Texas Government Code, as amended (the "Interlocal Act"), and the Investment Act and that the attached agreement (the "Agreement), upon enactment, serves as the agreement between the City and the Pool and provides the terms on which the Pool will operate and the rights of the participants in the Pool who will be governed and sets for the responsibilities of the Managers, and of JPMorgan Chase Bank. as custodian (the "Custodian"); NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, THAT: The form, terms and provisions of the Agreement, a draft of which was presented and reviewed at this meeting, be and the same are hereby approved and adopted; and that Larry Koonce, Director of Finance, heretofore appointed by the City of North Richland Hills pursuant to the Policy and the Act as its Investment Officer, be and he is hereby authorized and directed to execute and deliver to the Managers and the Custodian in the name and on behalf of the City of North Richland Hills, an Agreement substantially in the form of the agreement reviewed and approved at this meeting, together with such changes as said officer may approve, such approval to be conclusively evidenced by the execution thereof; and be it further Resolved, that the investment program described in the Statement is hereby found and determined to be consistent with the Policy, and to preclude imprudent investment activities arising out of investment transactions conducted between the City of North Richland Hills and the Pool; and be it further Resolved, that the City Council hereby officially finds and determines that the facts and recitations in the preamble of this Resolution are true and correct and adopts the preamble as part of the operative provisions of this Resolution; and be it further e e e Resolved, that the City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Resolution was adopted was posted for the time required by law preceding this meeting, and that such meeting was open to the public as required by law at all times during which this Resolution and the subject matter thereof were discussed, considered and formally acted upon, all as required by Chapter 551, Texas Government Code, as amended, and the Act; and be it further Resolved, that the officers of the City of North Richland Hills, each is expressly authorized, empowered and directed from time to time to perform all acts and to execute, acknowledge, seal and deliver in the name and on behalf of the City of North Richland Hills all certificates, instruments and other documents as they may determine to be necessary or desirable to carry out the provisions of this Resolution and the Agreement, such determination to be conclusively evidenced by the performance of such acts and the execution of any such documents; and be it further Resolved, that this Resolution shall take effect and be in full force upon and after its passage. PASSED AND APPROVED this 24th day of February 2003. APPROVED: Oscar Trevino, Mayor ATTEST: Patricia Hutson, City Secretary APPROVED AS TO CONTENT: e e e APPLICATION FOR PARTICIPATION IN TEXSTAR The undersigned local government (Applicant) applies and agrees to become a Participant in the Texas Short Term Asset Reserve Program (TExSTAR). 1. Authorization. The governing body of Applicant has duly authorized this application by adopting the following resolution at a meeting of such governing body duly called, noticed, and held in accordance with the Texas Open Meeting Law, chapter 551, Texas Government Code, on February. Q4 , 20.Q3: WHEREAS, it is in the best interests of this governmental unit ("Applicant') to invest its funds jointly with other Texas local governments in the Texas Short Term Asset Reserve Program (TEXSTAR) in order better to preserve and safeguard the principal and liquidity of such funds and to earn an acceptable yield; and WHEREAS, Applicant is authorized to invest its public funds and funds under its control in TEXST AR and to enter into the participation agreement authorized herein; Now, THEREFORE, BE IT RESOLVED THAT: SECTION 1. The form of application for participation in TEXST AR attached to this resolution is approved. The officers of Applicant specified in the application are authorized to execute and submit the application, to open accounts, to deposit and withdraw funds, to designate other authorized representatives, and to take all other action required or permitted by Applicant under the Agreement created by the application, all in the name and on behalf of Applicant. SECTION 2. The TEXST AR Investment Policy is adopted as Applicant's investment policy, the TEXST AR investment officers are designated as Applicant's investment officers, and the TEXST AR Board is designated as custodian and depository, in each case for Applicant's public funds and funds under its control that are deposited with TExSTAR. Unless Applicant provides a contrary investment policy to TEXST AR, it shall be Applicant's investment policy that any or all of its public funds and funds under its control may be invested in and through TEXST AR. SECTION 3. This resolution will continue in full force and effect until amended or revoked by Applicant and written notice of the amendment or revocation is delivered to the TEXST AR Board. SECTION 4. Terms used in this resolution have the meanings given to them by the application." 2. Agreement. Applicant agrees with other TEXST AR Participants and the TEXST AR Board to the Terms and Conditions of Participation in TEXSTAR, effective on this date, which are incorporated herein by reference. Applicant makes the representations, designations, delegations, and representations described in the Terms and Conditions of Participation. . 3. Authorized Representatives, Each of the following Participant officials is designated as Participants Authorized Representative authorized to give notices and instructions to the Board in accordance with the Agreement, the Bylaws, the Investment Policy, and the Operating Procedures: e Name · .:t:..o?-.n~y.. .J.<.9.9H~~.,...,.... Sianature Title ............ ...~ ...QJ;r::~ç.t9x...q~..fJg?nce · .J.?,c;}ç;l.~.. Xb.Eg'.i.Q.1;.,..... .. .4..ç¡:;çn·mtJng. .:M?I}..~ger · :r.Q¡)';i.. .V.?1JJJ..QQ~.~J:...,... .. ÄC;kQ\.H\t.?}:).1:;........... · .Kei.t:h..W.il,SQJ)........... .. ÄC;kQ\.\t\ t.?}:).L......... ................................... ................................ ................................ The following Participant official is designated as the Primary Contact and will receive all TexSTAR correspondence including transaction confirmations and monthly statements [required]: Name ~~ ---..ð.f.D1:L~.~ Title .. 'J:OJJ.Í..Y.anRoDser....... .. A\Ç.ÇRHR ~.~.J:?L......... The following Participant official is designated as a Participant Inquiry Only Representative authorized to obtain account information [optiona~: ~ Sianature Title e .................................. ................................ ................................ Applicant may designate other authorized representatives by written instrument signed by an existing Applicant Authorized Representative or Applicant's chief executive officer. 4 T Id ·f' . N b A I· t' t ·d t'f' t· b· 1 75 6005194 . axpayer entl Icatlon um er, pp Ican s axpayer I en Ica Ion num er IS ..7:...::.................. 5. Bank Information Sheet(s). The attached [insert quantity] ....12..... Bank Information Sheet(s) is or are approved and incorporated herein by reference to establish account(s) in the name of Applicant. Dated this . ..?4~h ..c.I.~y. ..9.L!:~Þ.!~~~¥.. .~003 .. C;í. ty.. Df. .N.orth. .1lich1.and. .B.ills,... r~~as (Name of Applicant) By: ................................................................. (Signature of official) Approved and accepted: ..,.. .La;n:y.. .Ç~Jm:J.»ghç.JJJ.... ~;I. t.Y. .M9.T;1.q.g~r.....,..... (Printed name and title) TEXAS SHORT TERM ASSET RESERVE FUND By: FIRST SOUTHWEST ASSET MANAGEMENT, INC., Participant Services Administrator e By: .. ................................................ Authorized Signer . TexST~ BANK INFORMATION SHEET EFFECTIVE DATE: Please check all that apply Participant Name o Add new account o Wire and ACH* Street Address o Change Information 0 Wire Only Mailing Address o ACH Only* City State Zip County Location Series Fund Primary Representative Account Name Phone Fax INSTRUCTIONS Ik Name: nk Address: City: Bank ABA No. (9 digits): State: Zip: Bank Account No: Bank Account Name: Bank Contact: Correspondent Bank (if any) Name/City: Bank ABA No: Account Name: Account No: CONFIRM THE INSTRUCTIONS FOR WIRE AND ACH TRANSFERS WITH YOUR LOCAL BANK. ACH INSTRUCTIONS MAY VARY FROM YOUR BANK'S WIRING INSTRUCTIONS IF THE LOCAL BANK IS NOT ON-LINE WITH THE FEDERAL RESERVE. IF ACH INSTRUCTIONS DIFFER FROM WIRING INSTRUCTIONS, PLEASE COMPLETE AN ADDITIONAL BANK INFORMATION SHEET. . If ACH availability is selected, I hereby authorize JP Morgan Chase to directly deposit and withdraw funds by means of ACH electronic transfer to and from the financial institution and the account designated above ("Designated Account"). I agree that this authorization may be withdrawn with at least 45- days advance written notice to TexSTAR Participant Services. I understand that TexSTAR reserves the right to discontinue ACH electronic transfer without advance notice. I also authorize JP Morgan Chase to deduct from the Designated Account or from subsequent deposits made to the Designated Account all amounts deposited in error. Likewise, I authorize JP Morgan Chase to credit all amounts withdrawn in error to Designated Account. NOTE: This authorization must be executed by two current Authorized Representatives of the Participant as set forth in the duly enacted Resolution of the Participant which Is on file with TexSTAR. As a current Authorized Representative, I certify that the above information is both true and correct. Printed Name e Authorized Representative Signature Title Date Authorized Representative Signature Printed Name Title Date e Type City e e TexSTAR~ Participant List January 31, 2003 Participant Name City of Abilene City of Bedford City of Bellmead City of Bowie City of Burleson City of Cedar Hill City of Cleburne City of Coppell City of Copperas Cove City of Corsicana City of Crandall City of EI Paso * Town of Fairview City of Fort Worth City of Frisco * City of Gainesville City of Georgetown City of Greenville City of Heath City of Highland Village City of Kerrville City of Killeen City of Lake Jackson City of League City City of Lufkin City of Lubbock City of Madisonville City of Mexia City of Midland City of Mineral Wells City of Murphy City of Ovilla City of Panhandle City of Palestine City Abilene Bedford Bellmead Bowie Burleson Cedar Hill Cleburne Coppell Copperas Cove Corsicana Crandall EI Paso Fairview Fort Worth Frisco Gainesville Georgetown Greenville Heath Highland Village Kerrville Killeen Lake Jackson League City Lufkin Lubbock Madisonville Mexia Midland Mineral Wells Murphy Ovilla Panhandle Palestine e TexSTAR~ City of Rowlett Rowlett City of San Marcos San Marcos City of Sherman Sherman City of Temple Temple City of Weatherford Weatherford County Collin County McKinney Johnson County Cleburne Navarro County Corsicana Rockwall County Rockwall Tarrant County Fort Worth Health Care Gainesville Memorial Hospital District Gainesville Higher Education e Blinn College Brenham Brazosport College Lake Jackson Cisco Junior College Cisco Collin County Community College McKinney Dallas County Community College District Mesquite Del Mar College District Corpus Christi Houston Community College System Houston Tarrant County College District Fort Worth Other North Central Texas Housing Finance Corp. Duncanville School District Aldine ISD Houston Aransas County ISD Rockport Azle ISD Azle Bandera ISD Bandera Castleberry ISD Fort Worth Coppell ISD Coppell Denton ISD Denton EI Paso ISD EI Paso Farmersville ISD Farmersville e Fort Worth ISD Fort Worth Glen Rose ISD Glen Rose e TexSTAR..Ii e Grapevine Colleyville ISD Harlingen CISD Henrietta ISD Huntsville ISD Keller ISD Killeen ISD Kilgore ISD Lockhart ISD Lubbock - Cooper ISD Lumberton ISD McKinney ISD Mansfield ISD Mission CISD North East ISD Northside ISD Piano ISD Plemons-Stinnett-Phillips CISD Quinlan ISD Richardson ISD Robinson ISD Sealy ISD Sherman ISD Somerset ISD Spring Branch ISD * Temple ISD Waco ISD White Settlement ISD Grapevine Harlingen Henrietta Huntsville Keller Killeen Kilgore Lockhart Lubbock Lumberton McKinney Mansfield Mission San Antonio San Antonio Plana Stinnett Quinlan Richardson Robinson Sealy Sherman Somerset Houston Temple Waco White Settlement e Utility District Bethesda Water Supply Corporation Big Oaks MUD Caddo Basin Special Utility District Chelford One MUD Chimney Hills MUD Cinco MUD # 1 City of Harlingen Waterworks System Fort Bend County MUD #23 Fort Bend County MUD #47 Fort Bend County MUD #48 Harris County MUD # 102 Harris County MUD # 130 Harris County MUD #261 Burleson Houston Greenville Houston Houston Houston Harlingen Houston Houston Houston Houston Houston Houston e e Harris County MUD #321 Harris County MUD #322 Harris County MUD #354 Harris County MUD #367 Harris County WCID #110 Harris County WCID #156 Greater Greenspoint Redevelopment Authority Greater Texoma Utility Authority Guadalupe Blanco River Authority New Braunfels Utilities Northeast Texas MWD Palo Pinto County MUD #1 Post Wood MUD Reid Road MUD # 1 Renn Road MUD San Leon MUD Sienna Plantation MUD #3 South Texas Water Authority Travis County WCID #17 Upper Trinity Regional Water District West Harris County MUD #10 West Harris County MUD #11 . Governing Board Member e Tex5TAR,J¡;¡ Houston Houston Houston Houston Houston Houston Houston Denison Seguin New Braunfels Hughes Springs Mineral Wells Houston Houston Houston San Leon Houston Kingsville Austi n Lewisville Houston Houston CITY OF NORTH RICHLAND HILLS Department: City Secretary Council Meeting Date: 2/24/03 Subject: Reschedulinq March 10, 2003 City Council Meetinq Agenda Number: GN 2003-026 At the January 13, 2003 City Council meeting, it was brought to Council's attention of the need to reschedule the March 10 Council meeting due to a number of the Council members attending the NLC Conference. The consensus of the Council was to reschedule the March 10 meeting to March 13. Recommendation: To reschedule the March 10,2003 City Council meeting to March 13,2003. \ Source of Funds: Bonds (GO/Rev.) Operating Budget Other Finance Review Account Number Sufficient Funds ÄvallaDle Finance Director CITY OF NORTH RICHLAND HILLS . Department: Finance / Public Works Council Meeting Date: 2/24/2003 Subject Award Bid for Utilitv Materials to Atlas Utilitv Supplv in the Amount of $199,949 - Resolution No. 2003-018 Agenda Number: PU 2003-009 As a part of the 2002/2003 approved budget, Council appropriated funds for the purchase of various utility materials for the Utility Division and the Utility Construction Division of the Public Works Department. Formal bids were solicited for an annual contract to supply utility materials for the budget year. The results are outlined below. Atlas Utility Supply Company D&W Utility Hughes Supply National Waterworks Metro Valve & Pipe Ferguson Waterworks Texas Water Products $199,949 $204,625 $215,206 $230,518 $236,746 $244,194 $249,346 Vendors were supplied a list of items to bid on and were required to guarantee the price of each item for a twelve month period. PVC pipe, gate valves, fire hydrants, meter boxes, various pipefittings and various sizes of clamps are some of the items included under this contract. Materials will be ordered on an as need basis and delivered to various locations. Based on the estimated quantities included in the bid, purchases will stay within the 2002/2003 budget. Atlas Utility Supply met all the specifications and general conditions of the bid. This company has been awarded the contract several years and has provided good service and made deliveries within the requested time. Recommendation: To award the bid to supply utility materials to Atlas Utility Supply in the amount of $199,949 and approve Resolution No. 2003-018 authorizing the City Manager to execute the agreement. Finance Review Source of Funds: Bonds (GO/Rev.) Operating Budget Other ~ h 1'l ~ t.1i ¡ . .,. I ~. ~ . '- Depa ment ead Signature Paqe 1 of 1 . . . L RESOLUTION NO. 2003-018 BE IT RESOLVED BY THE CITY COUNCIL OF NORTH RICHLAND HILLS, TEXAS, that: 1. The City Manager is hereby authorized to execute the agreement with Atlas Utility to supply miscellaneous . PASSED AND APPROVED this 24th day of February 2003 APPROVED: Oscar Trevino Mayor ATTEST: Patricia Hutson, City Secretary APPROVED AS TO FORM AND LEGALITY: Attorney for the City APPROVED AS TO CONTENT: Larry Koonce, Director of Finance - > CITY OF NORTH RICHLAND HILLS Department: Finance / Public Works Council Meeting Date: 2/24/2003 Subject: Award Bid for Traffic Materials Supply Contract to Agenda Number: PU 2003-010 Vulcan Signs and Centerline Supply - Resolution No. 2003-019 As part of the 2002/2003 approved budget, Council appropriated funds for the purchase of various traffic materials. Formal bids were solicited for a company to supply all the required materials under an annual contract and the results are outlined below. Section Section Section Section ABC D Centerline Supply Vulcan Materials Hall Signs Roadrunner Traffic $54,309 $52,832 $61,051 $65,703 $3,018 $1,309 $1,374 $1,449 $14,063 $16,125 $15,710 $15,108 $21 ,230 No Bid No Bid $25,500 Vendors were supplied a list of items and estimated quantities to bid on and will be required to hold the prices for a one year period. Sign blanks, sign faces, street markers, and reflective sheeting are some of the items included under this contract. Materials will be ordered and delivered on an as need basis. Staff is requesting the bid for sign blanks, sign faces and reflective sheeting be awarded to Vulcan Signs in the amount of $54,141 and the bid for sign post materials, pavement marking supplies and miscellaneous items be awarded to Centerline Supply in the amount of $35,293. Based on the estimated quantities included in the bid, purchases will stay within the 2002/2003 budget. Centerline Supply and Vulcan Materials met all the specifications and general conditions of the bid. Recommendation: To award the annual contract for sign blanks, sign faces and reflective sheeting to Vulcan Signs in the amount of $54,140.75 and the contract for sign post materials, pavement marking supplies and miscellaneous items to Centerline Supply in the amount of $35,293 and pass Resolution No. 2003-019 authorizing the City Manager to execute the contracts. Source of Funds: Bonds (GO/Rev.) Operating Budget Other Finance Review Account Number Sufficient Funds Av. . a e Budget Director ~ 'ìv1 ~0 C.^~· . DeDartment ead SIQnature PaQe 1 of ) . . . , RESOLUTION NO. 2003-019 BE IT RESOLVED BY THE CITY COUNCIL OF NORTH RICHLAND HILLS, TEXAS, that: 1. The City Manager is hereby authorized to execute the annual contract for sign blanks, sign faces and reflective sheeting to Vulcan Signs in the amount of $54,140.75 and the contract for sign post materials, pavement marking supplies and miscellaneous items to Centerline Supply in the amount of $35,293, as the act and deed of the City. PASSED AND APPROVED this 24th day of February 2003 APPROVED: Oscar Trevino Mayor ATTEST: Patricia Hutson, City Secretary APPROVED AS TO FORM AND LEGALITY: Attorney for the City APPROVED AS TO CONTENT: Larry Koonce, Director of Finance CITY OF NORTH RICHLAND HILLS Department: Finance / Support Services Council Meeting Date: 2/24/2003 Subject: Award Bid for 2003-Year Model Dump Trucks to Haves Truck Group in the Amount of $161,656 Agenda Number: PU 200~11 In the 2002/2003 approved budget, Council appropriated funds for the replacement of three dump trucks. Formal bids were solicited and the results are outlined below. Hayes Truck Group Durant Chevrolet Amarillo Truck Center A TC Freightliner MHC Kenworth Dallas Peterbuilt $161,656 $166,008 $166,250 $172,811 $192,248 $196,328 Two of the trucks will be used by the Public Works Streets Division and one will be used by Public Works Utility. The current trucks are approximately 14 years old and are being replaced due to the age and maintenance related problems. Hayes Truck Group met all the specifications and general conditions of the bid and can deliver the trucks within 120 days. Recommendation: To award the bid for three 2003-year model dump trucks to Hayes Truck in the amount of $161 ,656. Finance Review Source of Funds: Account Number 310-0000:-601.79-00 Bonds (GO/Rev.) Sufficient Funds Avai a e Operating Budget Other ~t2 &/ r ) ~ Head Si£!Zure PaQe 1 of 1 í .. ,·c·;"·,/,-··~,,,,·-., ..""JI«.....,.._~ ,.~,'''- ., rI' CITY OF NORTH RICHLAND HILLS Department: Finance / Fire Department Council Meeting Date: 2/5/2003 Subject: Authorize Interlocal Purchasing Agreement with the City of Agenda Number: PU 2003-012 Piano and Authorize Purchase of Accessory Items for Scott Breathing Apparatus- Resolution No. 2003-020 Staff is requesting to enter into an interlocal purchasing agreement with the City of Piano for the purchase of goods and services from vendors selected through the competitive bidding process. One type of contract being considered is for miscellaneous accessory items and parts for the breathing apparatus used by the Fire Department. The Fire Department received a grant from the Department of Justice in the amount of $158,000 for replacing the self-contained breathing apparatus used by firefighters. They will receive 47 self-contained breathing apparatus and 43 additional air bottles manufactured by Scott. The fire Department currently uses units manufactured by Mine Safety Supply. The City of Piano has a contract for the accessory items and parts such as facepieces, cylinders, adapters and hoses and fittings that will be required to convert to the Scott units. These items and parts will be purchased on an as needed basis as the conversion progresses. Funds have been appropriated for this conversion in the amount of $62,484. Staff is requesting authorization to purchase the miscellaneous items in an amount not to exceed $62, 484. The Local Government Code states that purchases made under a cooperative purchasing agreement satisfy any State law that would require the City to solicit competitive bids. This agreement will be mutually beneficial to Piano and North Richland Hills because purchasing larger quantities will reduce the overall expense to each agency. Each agency will place their orders and pay the vendors directly. North Richland Hills or the City of Piano may change or cancel the agreement with a 30-day written agreement. Recommendation: Authorize the interlocal agreement with the City of Piano and pass Resolution No. 2002-020 authorizing the City Manager to execute the agreement and authorization to purchase the accessory items and parts in an amount not to exceed $62, 484. Finance Review ~~æ~\ Departmen Head Si ature csJ Source of Funds: Bonds (GO/Rev.) Operating Budget Other Page 1 of 1 RESOLUTION NO. 2003-020 . BE IT RESOLVED BY THE CITY COUNÇIL OF NORTH RICHLAND HILLS, TEXAS, that: ", ' . . 1. The City Manager is hereby authorized to execute the interlocal agreement with the City of PIano authorizing each City to purchase goods and services from vendors selected through the competitive bidding process. PASSED AND APPROVED this 24th day of February 2003 APPROVED: Oscar Trevino Mayor . ATTEST: Patricia Hutson, City Secretary APPROVED AS TO FORM AND LEGALITY: Attorney for the City APPROVED AS TO CONTENT: e . INTERLOCAL COOPERATIVE PURCHASING AGREEMENT BY AND BETWEEN THE CITY OF PLANO, TEXAS AND THE CITY OF NORTH RICHLAND HILLS, TEXAS THIS AGREEMENT is made and entered into by and between the CITY OF PLANO, a home- rule municipal corporation located in Collin and Denton Counties, Texas (hereinafter referred to as "PLANO"), and the CITY OF NORTH RICHLAND HILLS, a home-rule municipal corporation located in Tarrant County, Texas (hereinafter referred to as "NRH"). WHEREAS, Section 271.101, Local Government Code, allows local governments to participate in cooperative purchasing programs which allows the local governments to purchase from a contract currently existing between another local government and a vendor, and such process satisfies the state law competitive bid requirements; and . WHEREAS, PLANO currently has a contract for products and/or services, and NRH has a need for same and desires to enter into a Cooperative Purchasing Agreement with PLANO pursuant to Chapter 271 et seq. (Cooperative Purchasing Program), Local Government Code; and WHEREAS, NRH agrees to prepare, execute, and administer its own contract with the vendor and the City of Plana shall not be a party to NRH's agreement with the vendor. NOW, THEREFORE, PLANO and NORTH RICH LAND HILLS, for the mutual consideration hereinafter stated, agree as follows: I. EFFECTIVE DATE The effective date of this Agreement shall be effective upon execution by the parties. e Cooperative Purchasing Agreement with City of - 1 - e . e II. DUTIES OF NORTH RICHLAND HILLS NRH agrees to prepare, execute, and administer its own contract with the vendor and PLANa shall not be a party to the agreement with the vendor and the other governmental entity. PLANa shall have no obligations for payment to vendor for any services or goods incurred by any party other than PLANO. Any payments owed the vendor for services or goods shall be paid directly by NRH. NRH will be responsible for the vendor's compliance with provisions relating to the quality of items and terms of delivery; and any other terms or conditions of its agreement with the vendor. III. TERMINATION This Agreement may be terminated at any time, with or without cause, by either party giving thirty-(30) days advance written notice to the other party. IV. NOTICE Notice as required by this Agreement shall be in writing delivered to the parties via facsimile or certified mail at the addresses listed below. Each party shall notify the other in writing within ten (10) days of any change in the information listed in this paragraph. PLANa NORTH RICHLAND HILLS Thomas H. Muehlenbeck CITY MANAGER City of Piano P.O. Box 860358 Plana, Texas 75086-0358 Telephone: (972) 941-7121 Facsimile: (972) 423-9587 Name: Title: City of North Richland Hills P.O. Box 820609 North Richland Hills, TX 76182-0609 Telephone: 817/427-6150 Fax: 817/427-6151 Cooperative Purchasing Agreement with City of - 2 - . V. HOLD HARMLESS . Each party does hereby agree tow aive a II claims against, release, and hold h armless the other party and its respective officials, officers, agents, employees, in both their public and private capacities, from any and all liability, claims, suits, demands, losses, damages, attorneys fees, including all expenses of litigation or settlement, or causes of action which may arise by reason of injury to or death of any person or for loss of, damage to, or loss of use of any property arising out of or in connection with this contract. In t he event of joint or concurrent negligence of the parties, responsibility, if any, shall be apportioned comparatively in accordance with the laws of the State of Texas, without, however, waiving any governmental immunity available to either party individually under Texas law. P LANO shall be responsible for its sole negligence. NRH shall be responsible for its sole negligence. The provisions of this paragraph are solely for the benefit of the parties hereto and are not intended to create or grant any rights, contractual or otherwise, to any other person or entity. VI. ENTIRE AGREEMENT This Agreement represents the entire and integrated agreement between PLANO and NRH and supersedes all prior negotiations, representations and/or agreements, either written or oral. This Agreement may be amended only by written instrument signed by both parties. VII. VENUE This Agreement and any of its terms or provisions, as well as the rights and duties 0 f the parties hereto, shall be governed by the laws of the State of Texas, and this Agreement is performable in Collin County, Texas. Exclusive venue shall be in Collin County, Texas. e Cooperative Purchasing Agreement with City of - 3 - e e e VIII. . SEVERABILITY The provisions of this agreement are severable. In the event that any paragraph, section, subdivision, sentence, clause, or phrase of this agreement shall be found to be contrary to the law, or contrary to any rule or regulation having the force and effect of the law, such decisions shall not affect the remaining portions of this agreement. However, upon the occurrence of such event, either party may terminate this Agreement by giving the other party thirty (30) days written notice of its intent to terminate. IX. AUTHORITY TO SIGN I CITY COUNCIL AUTHORIZATION The undersigned officer and/or agents of the parties hereto are duly authorized officials and possess the requisite authority to execute this Agreement on behalf of the parties hereto. NRH has executed this Agreement pursuant to the duly authorized resolution of the North Richland Hills City Council on February 5, 2003. PLANO has executed this Agreement pursuant to the duly authorized Piano City Council Resolution No. 2002-2-15(R) dated February 25,2002. X. ASSIGNMENT AND SUBLETTING The parties agree that the rights and duties contained in this Agreement will not be assigned or sublet without the prior written consent of both parties. XI. INTERPRETATION OF AGREEMENT This is a negotiated Agreement, should any part of this Agreement be in dispute, the parties stipulate that the Agreement shall not be construed more favorably for either party. Cooperative Purchasing Agreement with City of -4- e . e XII. REMEDIES No right or remedy granted hereir:t or reserved to the parties is exclusive of any right or remedy granted by law or equity; but each shall be cumulative of every right or remedy given hereunder. No covenant or condition of this Agreement may be waived without the express written consent of the parties. It is further agreed that one (1) or more instances of forbearance by either party in the exercise of its respective rights under this Agreement shall in no way constitute a waiver thereof. EXECUTED in duplicate originals this day of February, 2003. CITY OF PLANO, TEXAS CITY OF NORTH RICHLAND HILLS ,TX By: By: Larry J. Cunningham CITY MANAGER P.O. Box 820609 North Richland Hills, TX 76182 Thomas H. Muehlenbeck CITY MANAGER P.O. Box 860358 Plana, Texas 75086-0358 APPROVED AS TO FORM: APPROVED AS TO FORM: Diane Wetherbee, CITY A TIORNEY George Staples, CITY ATTORNEY Cooperative Purchasing Agreement with City of - 5 - ACKNOWLEDGMENTS . STATE OF TEXAS . e ) ) COUNTY OF TARRANT ) CITY OF NORTH RICHLAND HilLS, TEXAS This instrument was acknowledged before me on the day of February 2003, by Larry J. Cunningham, City Manager of the CITY OF NORTH RICHLAND HILLS, TEXAS, a home-rule municipal corporation, on behalf of such corporation. Notary Public, State of Texas STATE OF TEXAS ) ) ) CITY OF PLANO, TEXAS COUNTY OF COLLIN This instrument was acknowledged before me on the day of 2003 by THOMAS H. MUEHLENBECK, City Manager of the CITY OF PLANO, TEXAS, a home-rule municipal corporation, on behalf of such corporation. Notary Public, State of Texas Cooperative Purchasing Agreement with City of -6- CITY OF NORTH RICHLAND HILLS Department: Public Works Council Meeting Date: 2/24/2003 Subject: Recommend Award of Bid for the 27th Year CDBG Project/ Agenda Number:PW 2003-001 Susan Lee Lane Street Improvements to McClendon Construction in the amount of $471 ,518.85 City Council passed Resolution 2001-029 on April 9, 2001, which identified Susan Lee Lane Street Improvements as the 27th Year Community Development Block Grant (CDBG) project. In coordination with Tarrant County, staff has had this project designed, reviewed, and approved for bidding. Bids were taken on January 29, 2003. A total of 10 contractors submitted bids. The three low bidders are summarized below. Bidder McClendon Construction Reliable Pavin Stabile & Winn, Inc. Base Bid 6" HMAC and Sidewalks $ 460,307.85 $ 489,985.45 $ 490,628.29 Base Bid 6" Concrete and Sidewalks $ 471,518.85 $ 498,800.35 $ 523,958.49 The bid prices include street reconstruction, storm drainage improvements and sidewalks for Susan Lee Lane from Maplewood Avenue to Lola Drive. This is the second section of the original Susan Lee Lane CDBG project. The first section was constructed with concrete pavement and sidewalks with the 26th Year CDBG project and was completed and accepted by Tarrant County on January 30,2002. CDBG funds are available from Tarrant County to pay $374,272.52 towards the total project cost. Sufficient funds are available to fund the remaining $97,246.33. Recommendation: To recommend Tarrant County award the contract to McClendon Construction to construct Susan Lee Lane with concrete pavement and sidewalks in the amount of $471,518.85 for a period of 120 calendar days. Finance Review Source of Funds: Bonds (GO/Rev.) Operating Budget Other Account Number 13-53-18-6000/02-13-53-018 Sufficient Funds ÄvaJl Die ;:SU:J-UUUU-bU;:S. {~-UU ~ ~~~ C~t- D partme t Head Signa ure -'-- Finance Director Page 1 of _ Street & Sidewalk Capital Improvements Susan Lee Lane Street Improvements (Maplewood to Lola Drive) (CDBG) 02-13-53-018 PROJECT DESCRIPTION & JUSTIFICATION This project will reconstruct approximately 3,500 feet of an existing minor collector (C2U) street. The project will begin approximately 150' North of Loop 820 and will be constructed North to Lola Drive. This project will be divided into 2 phases. Phase 1 will begin approximately 150' North of Loop 820 and will end at Maplewood Avenue. Phase 2 will begin at Maplewood and end at Lola Drive. This section of Susan Lee Lane was originally constructed in the 1960's as an asphalt street. The average life of an asphalt street is 20 years. This street is approximately 45 years old and has never been overlaid. The current street condition rating is 32. This rating is considered to be Poor, consisting of significant potholes, complete surface deterioration and misaligned curb and pavement surface. PROJECT STATUS Original Start Date 2002/2003 Revision Original End Date 2002/2003 Revision Engineering Construction 09/2000 02/2001 12/2000 08/2001 01/2002 07/2003 REVISION EXPLANATION This project was adopted in the 2000-2001 CIP Budget and funding was secured for non-grant expenditures in 2001-2002, but funds were not appropriated for the 2002-2003 fiscal year. Therefore, this revision is necessary for Public Works to gain legal expenditure authority. Also, as shown below, the existing funding is higher than the proposed contract amount. It is proposed that the funding be revised accordingly, which will make $1,727 available for future needs of the Drainage Utility Fund. FINANCIAL DATA Funding Source Amount to Date 2002/2003 Adopted 200212003 Propòsed Revision 2002/2003 Revised Budget Remaining Budget Total Project Cost Available Funding (City Portion): Drainage Utility Fund Reserves Engineering Construction (City Portion> $98,974 $0 $97,247 $0 $97,247 0 0 0 0 0 $98,974 $0 $97,247 $0 * $97,247 $0 $0 $0 $0 $0 0 0 97,247 0 97,247 $0 $0 $97,247 $0 * $97,247 Total Project Expenditures Total * Please Note: The total project budget equals $918,000. This revision covers only the city's portion of project costs, which equals $97,247. IMPACT ON OPERATING BUDGET Nominal impact is expected. Annual Operating Impact Pro·ected . ' 05 Jun 0100:24:54 Tuesday GIS No: financo,0176 AML:cip.amlmap PLOT:sucan lee I.rll _(.) ~ ~~"'. srOR'l. C:...,?·,\(\ \. \ ¡ [ "\", ~ 1! ~, ~: ~.'~ ~. n '!j."'Þ '... ·_TERR:'f'=C.I=----' , \ \¿' ~ L"..ü,~ \~ .~ ~ )C..: IiOl-.CDR, ~ A§RISIop.Ht;p(',;:\r ~ ----¡n° . <-... '-, I ~òo _ ~ u SY.BIL-::DR=s~eIL::oR. . .W_C!;¡ II }:.'f.. 27th Year CDBG ¥ 'n ¡""r"' !'il. ...; : ~=SCHI((ER=DR=~ :-¡ II E ~ ~ i -=5LtJuLJ ¡ tr---¡ [ I ~I 26th Year CDSG "Cs .:: (Loop 820 to Maplewood Ave.) Completed .. CJ ::: ,~ .:s II Lg j L!~ u '-' I U ... .. % u :i II z ... '" '"! .. ... ~ ""'~"l 0: ° II Z ¡;; 1 Susan Lee Ln. (CDBG) Street Improvements N E ìí VI Z o III III Õ ·CIBBO Lw C,m !~ ~ ~\ II, o· ~\ III s N$RTH RICHLAND HILLS -: 53 Department of Information Services, Geographic Information SystemllGISI Scale: 1" " 600' . . e /Ill!! r~t;f!su.~u~1o~f-. ~o'!s~T!:!ffRKINS Mr. Lance Barton, P.E. City of North Richland Hills P.O. Box 820609 North Richland Hills, Texas 76182-0609 Dear Lance: February 7, 2003 FEB 1 0 2003 RE: CDBG - 27 th Year Project NRH Public Works Susan Lee Lane Street & Utility Improvements City of North Richland HillslTarrant County TNP# TAR 01232 On January 29, 2003 bids were received for the above referenced project. A total of ten bids were received as follows: McClendon Construction Reliable Paving Stabile & Winn, Inc, Reynolds Asphalt & Const. TMD & Associates SYB Construction Co., Inc. Ed A. Wilson, Inc. JRJ Paving R con, Inc. North Texas Contracting BASE BID #1 HMAC PAVEMENT $460,307.85 $489,985.45 $490,628.29 $491,276.50 $502,565.15 $525,443.18 $547,858.60 $523,457.84 $555,862.00 $650,228.90 BASE BID #2 CONCRETE PAVEMENT $471,518.85 $498,800.35 $523,958.49 NO BID $607,902.70 $515,774.00 $569,817.60 $555,476.64 $528,818.75 $769,628.40 We have evaluated the low bid and found it to be complete and responsive. Based upon previous experience with this contractor on projects of similar scope and size, I recommend that the City of North Richland Hills make the recommendation to Tarrant County to award the construction contract for Susan Lee Lane Street & Utility Improvements to McClendon Construction for the base bid #2 amount of $471,518.85. With base bid #2, Susan Lee Lane will be constructed with concrete pavement. This sum includes $37,225.00 for sidewalk construction. Tarrant county has $374,272.52 available for construction of this project. Therefore, along with recommendation of award, North Richland Hills should commit $97,250.00 for construction of this project. 1100 MACON STREET FORT WORTH, TEXAS 76102 (817) 336-5773 FAX (817) 336-2813 · · · A complete bid tabulation is attached for your use. If you have any questions or require additional information, please do not hesitate to call. Yours Very Truly, T~DPER Greg D. Saunders, P.E. GDS enclosure cc: Don Day - Tarrant County Community Development CITY OF NORTH RICHLAND HILLS Department: Police Department Council Meeting Date: February 24, 2003 Subject: Regional Law Enforcement Mutual Aid Task Force Agreement - Agenda Number: GN 2003~27 Resolution No. 2003-016 The Regional Law Enforcement Interlocal Assistance Agreement that existed among over 100 of the Dallas/Fort Worth metropolitan police agencies needs to be updated due to modifications of Texas law. Authority for such an agreement now resides in Chapter 791 of the Texas Government Code and Section 362.002 of the Texas Local Government Code. The purpose of this Interlocal Agreement is to allow agencies the ability to obtain or deliver police services on a discretionary basis when conditions necessitate mutual aid. The provision of requested services is voluntary, and the responding member has the option to withdraw personnel and equipment to discontinue participation in any activity initiated pursuant to this agreement. This agreement does not reassign costs of any participant to any other jurisdiction and provides a termination clause that allows any participant to terminate participation in the agreement by giving (30) thirty days written notice. This agreement allows our police department the ability to request assistance from any of the participating agencies when necessary: The membership list and copies of the agreements are being kept up to date by the Highland Park Department of Public Safety. A list of agencies that have already executed this agreement is attached to this cover sheet. Responsibilities pertaining to workers' compensation, salary, pension and all other compensation are the responsibility of the employing agency. Provisions of the agreement also state that in the case of a lawsuit, the officer(s) concerned will be defended by the jurisdiction where he/she is regularly employed. Each party to the agreement expressly waives all claims against other member agencies. We believe this regional mutual aid agreement will benefit the City of North Richland Hills. We have always been ready to respond to other jurisdictions with manpower and equipment and have, occasionally, received assistance from other jurisdictions. The City Attorney has reviewed this agreement. Recommendation: To pass Resolution No. 2003-016 adopting the Regional Law Enforcement Mutual Aid Task Force Agreement. Source of Funds: Bonds (GO/Rev.) Operating Budget Other Finance Review Account Number Sufficient Funds Available Budget Director , Page 1 of . . . RESOLUTION NO. 2003-016 WHEREAS, the City of North Richland Hills, Texas desires to contribute to the protection and safety of citizens in this City and in surrounding communities; and WHEREAS, the legislature has authorized the formation of interlocal assistance agreements between and among the cities and their law enforcement agencies; and WHEREAS, the City of North Richland Hills wishes to participate in an interlocal assistance agreement among local law enforcement agencies in the Greater Dallas-Fort Worth North Texas area for the purpose of providing and receiving law enforcement assistance; and WHEREAS, the North Richland Hills Police Department and other local law enforcement agencies have tentatively approved an Interlocal Assistance Agreement to be known as the Greater Dallas-Fort Worth Regional Law Enforcement Mutual Aid Task Force Agreement; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF NORTH RICHLAND HILLS, TEXAS: SECTION 1. That the City Manager is hereby authorized to execute the attached "Greater Dallas-Fort Worth Regional Law Enforcement Mutual Aid Task Force Agreement." SECTION 2. That this resolution shall take effect immediately from and after its passage in accordance with the provisions of the Charter of the City of North Richland Hills and it is accordingly so resolved. PASSED AND APPROVED on this the 24th day of February 2003. APPROVED: Oscar Trevino, Mayor ATTEST: City Secretary APPROVED AS TO CONTENT: ;rJ...t-z-,f~ Chief of Police · GREATER DALLAS-FORT WORTH REGIONAL LAW ENFORCEMENT MUTUAL AID TASKFORCE AGREEMENT 1. Preamble: WHEREAS, the governmental entities which are parties to this agreement desire to form a law enforcement mutual aid task force to cooperate in the investigation of criminal activity; enforcement of the laws of this State; and, to protect health, life and property from riot, disaster, threat of concealed explosives, unlawful assembly characterized by force and violence or threatened violence by groups of three or more persons; and, WHEREAS, Chapter 791, et. seq. of the Texas Government Code authorizes local government entities to enter into Interlocal Contracts and Section 362.002 of the Texas Local Government Code specifically authorizes Mutual Aid Task Force agreements such as this agreement; NOW, THEREFORE, it is mutually agreed by the parties hereto to enter into this Agreement upon the following terms: 2. DefInitions: · The following terms shall have the following meamngs when used in this Agreement: "Law Enforcement Officer" means any commissioned peace officer as defmed under the Texas Code of Criminal Procedure. "Member" means any local government entity, including the Dallas-Fort Worth International Airport Board (hereinafter "DFW Airport"), which is a party to this Agreement. "Chief Law Enforcement Officer" means the Chief of Police or the Director of Public Safety of a municipality or DFW Airport, or the Sheriff of a County. "Requesting Member" means a member who requests law enforcement assistance from another member under this Agreement. "Responding member" means a member to whom a request for assistance is directed by a requesting member under this Agreement. 3. Name: · The members hereby form a mutual aid law enforcement task force to be named the Greater Dallas-Forth Worth Regional Law Enforcement Mutual Aid Task Force (hereinafter "Task Force"). DFW Regional Mut. Aid Agreement - Page 1 · 4. Purpose: The purpose of the Task Force is to cooperate in the investigation of criminal activity; enforcement of the laws of this State; and, to protect health, life and property from riot, disaster, threat of concealed explosives, unlawful assembly characterized by force, and violence or threatened violence by groups of three or more persons. 5. Request for Assistance: Any request for assistance under this Agreement shall, when reasonably possible, include a statement of the amount and type of equipment and number of law enforcement personnel requested, and shall specify the location to which the equipment and personnel are to be dispatched. However, the amount and type of equipment and number of personnel actually furnished by a responding member shall be determined by the responding member's chieflaw enforcement officer or his designee. 6. Response to Request for Assistance: Responding members will assign law enforcement officers to perlonn law enforcement duties outside the responding member's territorial limits, but within the territorial limits of a requesting member, subject to the responding member's determination of availability of personnel and discretion when: · A. Such assignment is requested by the chief law enforcement officer or his designee, of a requesting member, and B. The chief law enforcement officer, or his designee, of the responding member has determined, in his sole discretion, that the assignment is necessary to fulfill the purposes of this agreement in providing police protection and services within the territorial limits of the requesting member. 7. Operational control: All personnel of the responding member shall report to the requesting member's officer in tactical control at the location to which said law enforcement personnel have been dispatched and shall be under the operational command of the requesting member's chief law enforcement officer or his designee. 8. Release: Law Enforcement Officers of the responding member will be· released by the requesting member when their services are no longer necessary. 9. Withdrawal from Response: · The chief law enforcement officer, or his designee, of the responding member, in his sole discretion, may at any time withdraw the personnel and equipment of the DFW Regional Mut. Aid Agreement - Pa.ge 2 responding member or discontinue participation in any activity initiated pursuant to this . Agreement. 10. Qualifications of Office and Oath: While any law enforcement officer regularly employed by a responding member is in the service of the requesting member under this Agreement, said law enforcement officer shall be deemed to be a peace officer of the requesting member and be under the command of the requesting member's chief law enforcement officer with all powers of a law enforcement officer of the requesting member as if said law enforcement officer were within the territorial limits of the governmental entity where said officer is regularly employed. The qualifications of office of said law enforcement officers where regularly employed shall constitute his or her qualifications for office within the territorial limits of the requesting member and no additional oath, bond or compensation shall be required. 11. Right to Reimbursement: Each party to this agreement, when providing services of personnel as a responding party, expressly waives the right to receive reimbursement for services performed or equipment utilized under this Agreement even though a.request for such reimbursement may be made pursuant to Chapter 362 of the Texas Local Government Code. . 12. Officer Benefits: Any law enforcement officer or other police personnel assigned to the assistance of another member pursuant to this Agreement shall receive the same wage, salary, pension, and all other compensation in all other rights of employment in providing such service, including injury, death benefits and worker compensation benefits and well as any available insurance, indemnity or litigation defense benefits. Said benefits shall be the same as though the law enforcement officer or personnel in question had been rendering service within the territorial limits of the member where he or she is regularly employed. All wage and disability payments, including worker compensation benefits, pension payments, damage to equipment, medical expenses, travel, food and lodging shall be paid by the member which regularly employs the officer providing service pursuant to this Agreement in the same manner as though such service had been rendered within the limits of the member where such person or law enforcement officer is regularly employed. Each responding member shall remain responsible for the payment of salary and benefits as well as for legal defense of the responding member's officers or personnel when acting pursuant to this agreement. 13. Liability: e In the event that any person performing law enforcement services pursuant to this Agreement shall be named or cited as a party to any civil claim or lawsuit arising from the performance of their services, said person shall be entitled to the same benefits from their regular employer as they would be entitled to receive if such similar action or claim had arisen out of the performance of their duties as a member of the department where DFW Regional Mut. Aid Agreement - Page 3 . they are regularly employed and within the jurisdiction of the member by whom they are regularly employed. The Members hereby agree and covenant that each Member shall remain solely responsible for the legal defense and any legal liability due to the actions of an officer or other personnel regularly employed by said member. Nothing herein shall be construed to expand or enlarge the legal liability of a Member for any alleged acts or omissions of any employee beyond that which might exist in the absence of this Agreement. Nothing herein shall be construed as a waiver of any legal defense of any nature whatsoever to any claim against a Member or against an officer or employee of a Member. 14. Waiver of Claims: Each party of this Agreement to its members respectively waives all claims against each and every other party or member for compensation from any loss, damage, personal injury or death occurring as a consequence of the performance of this Agreement even though such alleged damage may have or is alleged to have occurred as a result of alleged negligent or other tortious conduct of any party to this Agreement. 15. Immunity Not Waived: . The parties hereto expressly do not waive any immunity or other defenses to any civil claims with the execution of this agreement. It is understood and agreed that, by executing this Agreement, no party or member hereto waives, nor shall be deemed hereby to waive, any immunity or defense which otherwise is available in claims arising which are signs of or connection with, any activity conducted pursuant to this Agreement. 16. Venue: Each party to this Agreement agrees that if legal action is brought under this Agreement, the venue shall lie in the county in which the defendant member is located, and if located in more than one county, then it shall lie in the county in which the principal offices of said defendant member are located. The Parties hereby stipulate and agree that this Agreement is to be construed and applied under Texas law. 17. Arrest Authority Outside Primary Jurisdiction: e It is expressly agreed and understood that a law enforcement officer employed by a responding party who performs activities pursuant to this Agreement may make arrests outside the jurisdiction in which said officer is regularly employed, but within the area covered by this Agreement; provided, however, that the law enforcement agency of the requesting jurisdiction and/or the jurisdiction in which the arrest is made shall be notified of such arrest without unreasonable delay. The police officers employed by the parties to this Agreement shall have such investigative or other law enforcement authority in the jurisdictional area encompassed by the members, collectively, to this Agreement as is reasonable and proper to accomplish the purposes for which a request for mutual aid assistance is made pursuant to this Agreement. DFW Regional Mut. Aid Agreement - Page 4 18. Clauses Severable: . The provisions of this Agreement are to be deemed severable such that should any one or more of the provisions or tenns contained in this Agreement be, for any reason, held to be invalid, illegal, void, or unenforceable; such holding shall not affect the validity of any other provision or tenn herein and the agreement shall be construed as if such invalid, unenforceable, illegal or void provision or tenn did not exist. 19. Termination: Any Party to this Agreement may tenninate it's participation or rights and obligations as a Party by providing thirty (30) days written notice via certified mail to the Chief Law Enforcement Officer of every other Party. Should one Party terminate its participation in, or withdraw from, this Agreement, such termination or withdrawal shall have no effect upon the rights and obligations of the remaining Parties under this Agreement. 20. Effective Date: This Agreement becomes effective immediately upon the execution by the Parties hereto and continues to remain in effective until terminated pursuant to Section 19 above. 21. Modification: . 'This Agreement may be amended or modified by the mutual agreement of the parties hereto in writing to be attached to and incorporated into this Agreement. This instrument contains the complete agreement of the parties hereto and any oral modifications, or written amendments not incorporated to the Agreement, shall be of no force or effect to alter any term or condition herein. 22. Execution of Agreement: This Agreement shall be executed by the duly authorized official of the respective Parties pursuant to approving resolutions of the governing body of the respective units of local government. Copies of said approving resolutions shall be attached hereto and made a part hereof. This agreement may be executed in multiple original copies by the respective Parties. 23. Compliance with Law: The Parties shall observe and comply with all applicable Federal, State and Local laws, rules, ordinances and regulations that affect the provision of services provided herein. 24. Interjurisdictional Pursuit Agreement: - The Parties hereto expressly understand and agree that this agreement does not in any way modify or restrict the procedures or guidelines which are followed by any law DFW Regional Mut. Aid Agreement - Page 5 e enforcement agency or Member pursuant to the Inter-Jurisdictional Pursuit Policy Agreement to which some Members or their law enforcement agencies, may be parties. To the extent any provision of, or action taken pursuant to, the Inter-Jurisdictional Pursuit Policy Agreement may be construed to conflict with the terms and conditions of this Agreement, the tenns of the Inter-Jurisdictional Pursuit Policy Agreement shall control as to those particular actions. 25. Coordinating Agency: The Parties hereby agree that the City of Highland Park Department of Public Safety shall served as the Coordinating Agency of the Agreement. The Chief Law Enforcement Officer, or his designee, of said Coordinating Agency shall maintain on file executed originals of this Agreement, related resolutions or orders of the Parties and other records pertaining to this Agreement. Said Coordinating Agency shall notify all members of the identity of the current Parties hereto every twelve (12) months. Executed and entered into on this 24th day of February 2003 by: CITY OF NORTH RICHLAND IDLLS . City Manager ATTEST: City Secretary c=i1~ APPROVED AS TO FORM AND LEGALITY: Attorney for the City e Approved by Resolution No. 2003-016 DFW Regional Mut. Aid Agreement - Page 6 Mutual Aid Agreement Membership List With Resolutions As of February 7, 2003 - 1 Allen PD 2 Alvarado PD 3 Argyle PD 4 Arlington PD 5 Bedford PD 6 Bells PD 7 Blue Mound PD 8 Burleson PD 9 Cedar Hill PD 10 Colleyville PD 11 Coppell PD 12 Corsicana PD 13 Denison PD 14 Denton PD 15 Desoto PD 16 Ouncanville PD 17 Euless PD 18 Farmers Branch PO 19 Frisco PD 20 Grand Prairie PO 21 Grapevine PD 22 Greenville PD 23 Heath PD 24 Highland Park DPS 25 Highland Village PD 26 Irving PD 27 Keller PO 28 Lake Worth PD 29 Lancaster PO 30 Mansfield PD 31 McKinney PO 32 Mesquite PD 33 Pantego PD 34 PIano PD 35 Prosper PD 36 Richland Hills PD 37 River Oaks PD 38 Rockwall PD 39 Rowlett PD 40 Saginaw PD 41 Sherman PD 42 Southlake PD 43 The Colony PD 44 University Park PD 45 Waxahachie PD 46 Westworth PD 47 Whitesboro PD 48 Wylie PD e . CITY OF NORTH RICHLAND HILLS . Department: Police Department Council Meeting Date: February 24, 2003 Subject: Metro Narcotics Intelligence and Coordination Unit Interagency Agreement - Resolution No. 2003-017 Agenda Number: GN 2003-028 The Metro Narcotics Intelligence and Coordination Unit is a grant-funded program that includes the operation of a multi-agency, multi-jurisdictional task force that provides enhanced narcotics enforcement by using a cooperative approach. The program also includes asset forfeiture and prosecution teams in the District Attorney's Office, a countywide computerized intelligence system and investigative liaison with law enforcement agencies in surrounding counties. The police department has participated in this task force since 1988 and currently provides one Sergeant to the task force. The task force has proven to be a continued benefit to the Police Department and to the City of North Richland Hills. The Interagency Agreement provides that the grant under which the task force is funded will pay seventy-five (75) percent of the sergeant's salary and benefits. In order for the grant to be continued, the governing body of the city must approve the Interagency Agreement. . Recommendation: It is recommended that the City Council pass Resolution No. 2003-017 allowing the City Manager to sign the Metro Narcotics Intelligence and Coordination Unit Interagency Agreement. Source of Funds: Bonds (GO/Rev.) Operating Budget Other Finance Review Account Number Sufficient Funds Available e Budget Director Page 1 of 1 . RESOLUTION NO. 2003-017 WHEREAS, the City of North Richland Hills, Texas has reviewed the Metro Narcotics Intelligence and Coordination Unit Interagency Agreement, and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, THAT the City Manager, be, and is hereby, authorized to execute the attached Metro Narcotics Intelligence and Coordination Unit Interagency Agreement for the North Richland Hills Police Department. PASSED AND APPROVED this 24th day of February 2003. APPROVED: Oscar Trevino, Mayor ATTEST: . City Secretary APPROVED AS TO CONTENT: ~{Øf; APPROV D S TO FORM AND LEGALITY: e . STATE OF TEXAS ) INTERAGENCY AGREEMENT REVIEW AND APPROVAL COUNTY OF TARRANT ) This Agreement is entered into by and between Tarrant County, a political subdivision of the State of Texas, (hereinafter referred to as ~~County"), and the CITY OF NORTH RICHLAND lllLLS, a municipal corporation situated in Tarrant County, Texas, (hereinafter referred to as "Participating Agency"), pursuant to Chapter 791 of the Texas Government Code, concerning inter-local cooperation contracts. The parties are located in the State of Texas. WITNESSETH WHEREAS, the County and Participating Agency wish to jointly share the Metro . Narcotics Intelligence and Coordination Unit (hereinafter referred to as "MNIC{Y') Grant with the Criminal Justice Division ofthe Governor's Office, State of Texas, for funding of $3,615,209 and; WHEREAS, the Participating Agency agrees to contnbute the total of$19,999 in matching funds if said joint application is approved; and WHEREAS, it is acknowledged by the Participating Agency that the officer's salary and benefits are to be paid by the MNI CU grant. The payment of a financial investigator for the participating agency will be $79,996 (salary and benefits); and WHEREAS, the Participating Agency's source of funds would not nonnally have been used for the purpose of being assigned to the MNICU; and e INTERAGENCY AGREEMENT PAGE 1 e WHEREAS, the Participating Agency and the County believe it to be in their best interests to share in the MNICU grant funding; and WHEREAS, the Participating Agency and the County agree to each accept the responsibility to adhere to all pertinent federal, state, and local laws or regulations. NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS: I. PURPOSE 1.01 Tarrant County wishes to file a grant application with the Criminal Justice Division of the Office of the Governor, State of Texas, for funding in the amount of $3,615,209 for Metro Narcotics Intelligence and Coordination Unit. . 1.02 The parties hereto to contribute matching funds if said grant application is approved. The funds would not normally be used for this purpose. . 1.03 The parties hereto believe it to be in their best interests to participate in the MNICU. n. TERM 2.01 The term of this agreement is to commence on June 1,2003, and to end on May 31,2004. ill. CONSIDERATION 3.01 As consideration for this agreement, the Participating Agencies in MNICU and both Tarrant and Ellis Counties agree to contribute a total of $59,997 in matching funds, and the Participating Agency agrees to contribute a total of $19,999 in matching funds, for the enhancement and support of the MNlCU. e INERAGENCY AGREEMENT PAGE 2 . IV. ALLOCATION OF FUNDS 4.01 The specific allocation of the funds contnòuted by the grant is set forth in the attachment to this agreement marked as Exlnòit "A" which is a copy of the grant application and is adopted by reference and made a part hereof for all purposes. The specific allocation of the funds contnòuted by the Participating Agency is set forth in the same exhibit. v. OWNERSHIP OF EQUIPMENT 5.01 Upon termination of this agreement, ownership of equipment, hardware, and other non-expendable items will revert to the applicant for which it . was acquired, subject to the approval of the Criminal Justice Division, Office of the Governor, State of Texas. VI. AMENDMENTS 6.01 The parties hereto agree to comply with all pertinent federal, state, and local laws or regulations. VII. GOVERNING LAW 7.01 This agreement is governed by the laws ofthe State of Texas. e INERAGENCY AGREEMENT PAGE 3 . VIII. AMENDMENTS 8.01 This agreement may be amended only by the mutual agreement of the parties hereto in writing to be attached to and incorporated into this agreement. IX. LEGAL CONSTRUCTION 9.01 In case anyone or more ofthe provisions contained in this agreement shall be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision thereof, and this agreement shall be construed as if such invalid, illegal or unenforceable provision was never contained herein. x. DRUG TESTING . 10.01 In order to be in compliance with applicable state regulation pertaining to cm drug testing to wit: TAC Section 3.2005, both participants, agree to :MNICU funded quarterly random testing of25% of all grant designated positions. XI. ENTIRE AGREEMENT 11.01 This agreement supersedes any and all other agreements, either oral or in writing, between the parties hereto with respect to the subject matter hereof, and no other agreement, statement, or promise relating to the subject matter of this agreement which is not contained herein shall be valid or binding. e INERAGENCY AGREEMENT PAGE 4 . The undersigned parties bind themselves to the faithful performance of this agreement and acknowledge that duplicate originals of this agreement are being executed. APPROVED: APPROVED: Tim Curry Criminal District Attorney Tarrant County, Texas Larry Cunningham, City Manager City of North Richland Hills, Texas ~(QQ~'Qcç Bill ussell, Commander Metro Narcotics Intelligence and Coordination Unit Tom Shockley, Chief North Richland Hills ce Dept. North Richland Hills, Texas Approved As To Form: . Tom VandergriJI: County Judge Tarrant County, Texas Funds Certified Available By: S. Renee Tidwell, Auditor Tarrant County, Texas - INERAGENCY AGREEMENT PAGE 5 ,. .." .J...., CITY OF NORTH RICHLAND HILLS Department: Fire Council Meeting Date: 2/24/03 Subject: Interlocal Agreement with Tarrant County Public Health Services - Resolution No. 2003-022 . Agenda Number: GN 2003--29 Purpose: To seek the Mayor and Council's support of an interfocal agreement to provide office space for two Tarrant County Public Health Department (TCPHD) officials in the Fire Administration building for a term of one to two years. Background: TCPHD received a grant to evaluate the needs of Emergency Preparedness on Bio Terrorism in Tarrant County. For evaluation purposes, the county has been divided into quadrants and will be evaluated by four teams for 12 to 24 months. Each team is comprised of a Registered Nurse and an Epidemiologist who will be gathering data to prepare a Bio Terrorism Plan. The Fire Department has been approached by Debi Bench, R.N., B.S.N., and her division manager, Darren Asher, MPA, with the TCPHD regarding office space for this process. They are in need of office space and desks appropriate for two officials and access to a local telephone line. There is space available in Fire Administration to accommodate this request. TCPHD would provide their own computers, cell phones and any other items needed for operation. Their hours of operation would be Monday through Friday from 8:00 a.m. to 5:00 p.m. Their purpose would be to assess Northeast Tarrant County and prepare a Bio Terrorism Plan. The two officials to use the office have been named as Debi Bench and Lee Sewell. Pam Burney and I agree that the presence of the Tarrant County Public Health Department in our City will be a positive one for issues other than Bio Terrorism, and that our affiliation and cooperation with other agencies sends a positive message to our citizens and others in our area. Should we proceed with a partnership with the TCPHD, an inter-local agreement would be signed between both parties. The agreement would be for a period of 12 months for an annual fee of $10.00 payable to the City of North Richland Hills, with a renewal option if agreed upon, by both parties for an additional 12 months. Recommendation: To approve Resolution No. 2003-022 Finance Review Source of Funds: Bonds (GO/Rev.) Operating Budget Other Account Number Sufficient Funds Ävallable Finance Director Dep~\~L<j11 . (5J rlM .df (~ B"dg,lDlœoo City Man~ ignature Page 1 of 1 RESOLUTION NO. 2003-022 e 4 WHEREAS, the City Council desires to authorize the City Manager to execute the a contract in connection With Tarrant County Health Department; NOW, THEREFORE, 6 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND fiLLS, TEXAS: 8 Section I: That the City Manager of the City of North Richland Hills is authorized to execute the Interlocal Agreement with Tarrant County Health Department to provide and equip office space in the Fire Administration Building at 7202 Dick Fisher Drive North in the City of North Richland Hills. 10 12 14 AND IT IS SO RESOLVED. 16 PASSED on the 24th day of February, 2003. 18 CITY OF NORTH RICHLAND IDLLS 20 22 . By: Oscar Trevino, Mayor ATTEST: 26 28 Patricia Hutson, City Secretary 30 APPROVED AS TO FORM AND LEGALITY: 32 34 George A. Staples, Attorney 36 APPROVED AS TO CONTENT: 40 ~otdi~¥ Department Head 38 e 1 . INTER-LOCAL AGREEMENT CITY OF NORTH RICHLAND IDLLS AND COUNTY OF TARRANT PUBLIC HEALTH SERVICES This agreement is made on the date of the last party's signature to this agreement and is between County of Tarrant, Texas, hereinafter referred to as COUNTY, and the City of North Richland Hills, Texas, hereinafter referred to as CITY. The CITY and the COUNTY agree as follows: I. The City of North Richland Hills shall provide office space for two individuals in the Fire Administration Building, located at 7202 Dick Fisher Drive North, North Richland Hills, Texas. II. The tenn of the lease shall be for a period of eight months, commencing February 1,2003 and tenninating September 30, 2003. III. City agrees to lease office space to the Tarrant County Health Department for the term described in Paragraph II. for a fee often (10) dollars. . IV. The office space shall be equipped with telephone and computer outlets. A copier is available in the building and the county shall have access. The county shall pay all telephone, computer, copying and supply charges, or any other charges incurred by county employees. V. The City shall not be liable for any costs incurred by the County. VI. This agreement shall be renegotiated annually and changes shall be documented by letter agreement on or before September 30th of each year. VII. Upon expiration hereof, this agreement shall be automatically renewed for successive one-year tenns unless changed by an agreement signed by both parties. Either party may tenninate this contract or any renewal hereofby 30 days written notice to the other party. e . . e EXECUTED this day of , 2003, in Tarrant County, Texas. EXECUTED IN DUPLICATE ORIGINALS ON THE DATE SHOWN. CITY OF NORTH RICHLAND HILLS STATE OF TEXAS BY: Date: ATTEST: Larry J. Cunningham City Manager City Secretary APPROVED AS TO FORM: City Attorney By: Date: COUNTY OF TARRANT, STATE OF TEXAS BY: Tom Vandergriff County Judge Approved as to form: County Legal Advisor Date: County Auditor Date: e e e CITY OF NORTH RICHLAND HILLS Department: Economic Development Council Meeting Date: 2/24/03 Subject: Consider Ordinance Regulating Solid Waste Disposal and Agenda Number: GN 2003-025 Sanitation Requirements - Ordinance No. 2688 CASE SUMMARY: City Council recently approved a 5 year contract with Trinity Waste Services for exclusive solid waste collection, transport, disposal and recycling services. The terms of the contract stipulate that the City of North Richland Hills agrees to require that solid waste and sanitation services be provided by Trinity Waste at all residential construction sites. The proposed ordinance spells out that all trash and debris from residential construction sites shall be provided by the City's solid waste franchise holder. The proposed ordinance will require the following: · All residential contractors will be required to use Trinity Waste for trash disposal with a front load dumpster or rolloff. · All residential contractors will be required to use Trinity Waste for portable restrooms. · Stipulates charges for city-wide garbage and recycling services and delinquent penalties. · Allows city forces to issue tickets to illegal independent trash haulers. The formal contract with Trinity Waste Services began on February 1, 2003. This proposed ordinance basically allows city forces to enforce the requirements of the Trinity contract. RECOMMENDATION: Staff recommends that City Council approve Ordinance No. 2688 to enforce the requirements of the contract with Trinity Waste Services. Finance Review Source of Funds: Bonds (GO/Rev.) Operating Budget Other ~ Finance Director ,~d2~ Department Head Signature GN 2002- Tax Abatement Guidelines Page I of I e ORDINANCE NO. 2688 AN ORDINANCE AMENDING THE NORTH RICHLAND HILLS CODE OF ORDINANCES, AMENDING REGULATIONS PERTAINING TO SOLID WASTE AND RESIDENTIAL CONSTRUCTION REFUSE AND SANITATION; EST ABLISHING RATES FOR SOLID WASTE AND RECYCLING COLLECTION SERVICE IN THE CITY OF NORTH RICHLAND HILLS, TEXAS; PROVIDING A PENALTY; PROVIDING FOR SEVERABILITY, FOR PUBLICATION; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City Council contracts for garbage and waste collection and disposal and for recycling service which contract contemplates the City providing billing services and the City desires to establish a formula for rates which includes an amount sufficient to provide adequate revenue to pay the contractor its charges plus franchise fees, and to compensate the City for its billing services and postage, as well as for charges to be imposed for late payments; and WHEREAS, the City rate formula established herein has been reviewed by City staff and has been determined to be reasonable; NOW, THEREFORE, e BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS. Section 1: THAT Chapter 5 of the North Richland Hills Code of Ordinances be amended by adding a new Section 5-53.1 which shall read as follows: "Section 5-53.1 Residential Construction Refuse. Removal of said trash and debris from residential construction sites is provided by the City's solid waste franchise holder. It shall be the responsibility of the general contractor to arrange and compensate the solid waste franchise holder for this service. The use of companies, other than the City's solid waste franchise holder, for the purpose of disposing of construction refuse, is a violation of this ordinance. The following shall be the only permitted means of refuse disposal: (1) Provide front-load (6 or 8 cubic yard) container with a frequency of service at least weekly as provided in Appendix A of the solid waste franchise contract, or. (2) Provide roll-off container at least weekly at the rate agreed in Appendix A of the solid waste franchise contract." Section 2: THAT Section 5-52 of the North Richland Hills Code of Ordinances is hereby e ~ e e e amended by changing all references to "Building Official" to "Public Works Director." Section 3: THAT Section 5-56 of the North Richland Hills Code of Ordinances is hereby amended to read as follows: "Section 5-56 Sanitation Requirements. (a) The general contractor for each building pennit for new buildings or additions to existing buildings is required to provide temporary restroom facilities for use by construction workers. (b) Exception: The requirements of this section shall not apply: (1) When restroom facilities in the existing building on the lot are available to construction workers or; (2) When restroom facilities are available within one hundred fifty (150) feet (45,720 mm) of the lot on which the pennit authorizes work. (c) Temporary restroom facilities provided at residential construction site are provided by the City's solid waste franchise holder. It shall be the responsibility of the general contractor to arrange and compensate the solid waste franchise holder for this service. The use of companies other than the City's solid waste franchise holder, for the purpose of providing temporary restrooms is a violation of this ordinance. Section 4: THAT Section 11.21 (b) of the North Richland Hills Code of Ordinances is hereby amended by deleting the second sentence thereof providing for an amount to be charged for recycling service. Section 5: Chapter 11 of the North Richland Hills Code of Ordinances is hereby amended by adding new Sections 11-22 and 11-23, which shall read as follows: "Section 11-22 Charges for Garbage and Recycling Services. (a) A charge shall be made to each water customer of the City for solid waste collection and disposal. For residential customers, such charge shall include an amount for recycling service. All other businesses requiring solid waste collection shall be charged as well, whether or not they are water customers. Charges shall be calculated by adding twelve percent (12%) to the amount charged by the City's solid waste contractor for residential solid waste and recycling and by adding ten percent (10%) to the amount charged for commercial and other solid waste and recycling services. Ordinance No. 2688 Page 2 of 4 C:\Documents and Settingslphutson\Local SettingslTemplSolid WasteRate.wpd · e e e (b) Garbage and recycling service shall be billed with water and sewer utility bills and customers and shall carry the same delinquent penalties as such utility bills. City will not accept a payment which does not include all billed amounts unless a payment plan is in effect. Section 11-23 Residential Construction Sites. Each residential construction site permitted in the City shall be required to utilize solid waste and sanitation services provided by City's solid waste contractor." Section 6: Section 23-26 of the North Richland Hills Code of Ordinances is hereby amended to read as follows: "Section 23-26 Due Date, Delinquent Penalty. All charges for water, sewer, garbage and recycling service shall be due and payable twenty (20) days after the billing date stamped on the bill and if not paid within such time, a penalty of ten percent (10%) shall be added to the next bill. A minimum penalty of $2.50 is established for residential accounts and $15.00 for commercial accounts." Section 7: Any person, firm or corporation violating any provision of this ordinance shall be deemed guilty of a misdemeanor and upon final conviction thereof fined in an amount not to exceed Five Hundred Dollars ($500.00). Each day any such violation shall be allowed to continue shall constitute a separate violation and punishable hereunder. Section 8: It is hereby declared to be the intention of the City Council that the sections, paragraphs, sentences, clauses and phrases of this ordinance are severable and, if any phrase, clause, sentence, paragraph, subsection, article or section of this ordinance shall be declared unconstitutional or otherwise invalid by the final judgment or decree of any court of competent jurisdiction, such invalidity shall not affect any of the remaining phrases, clauses, sentences, paragraphs, subsections, articles and sections of this ordinance, since the same would have been enacted by the City Council without the incorporation in this ordinance of any such invalid phrase, clause, sentence, paragraph, subsection, article or section. Section 9: The City Secretary is hereby authorized and directed to cause the publication of the descriptive caption and penalty clause of this ordinance as an alternative method of publication provided by law. Section 10: This ordinance shall become effective immediately upon passage. Ordinance No. 2688 Page 3 of 4 C:\Documents and Settings\phutsonlLocal Settings\Temp\Solid WasteRate.wpd e e e AND IT IS SO ORDAINED. PASSED AND APPROVED this 24th day of February, 2003. ATTEST: Patricia Hutson, City Secretary CITY OF NORTH RICHLAND HILLS By: Oscar Trevino, Mayor APPROVED AS TO FORM AND LEGALITY: George A. Staples, Attorney APPROVED AS TO CONTENT: Department Head Ordinance No. 2688 Page 4 of 4 C:\Documents and Settings\phutson\Local SettingslTemplSoüd WasteRate.wpd t·,. e e e Lo' CITY OF NORTH RICHLAND HILLS Department: Finance Council Meeting Date: 2/24/2003 Subject: Investment Policv and Investment Strateç¡ies Update Resolution No. 2003-024 The Pubic Funds Investment Act (PFIA) requires that the governing body of a municipality review and adopt the city's investment policy and investment strategy annually. The City of North Richland Hills' Investment Policy and Strategy Statement are due for review and adoption. Occasional legislative changes in the Public Funds Investment Act as well as changes in the economic environment affecting investment decisions require occasional revisions to the Investment Policy and Strategy Statement. Several substantive revisions have been made to the attached investment documents in order to ensure safety of invested funds as well as to maximize yield within the restrictions of the Public Funds Investment Act and applicable state laws. Agenda Number: GN_~3-024 The Investment Committee has reviewed and recommends the proposed revised Policy and Strategy Statement with changes indicated in red type. Substantive changes are as follows: · Two fund groups were added to the Investment Strategy Statement in order to address the appropriate treatment of these monies. The PFIA requires that the objectives of each group of funds be addressed as to suitability, safety of principal, liquidity, marketability, diversification, and yield. The two additions are: ~ General Fund Balance Reserve (Strategy page 5) - A portion of the General Fund Balance represents a reserve that is available to invest for a longer period than funds that may be needed on a more timely basis. This strategy establishes a group of funds that may be invested over an extended time horizon in order to attain a greater yield while adhering to strictly established rules for maintaining safety, liquidity, and marketability. ~ Revenue Bond Reserves (Strategy Page 5) - Bond covenants require that reserves be maintained for debt service. This strategy segregates these designated funds which will be tracked and maintained in a different fund group that shall be invested over a longer time horizon than those designated for operations of the City. The same strict requirements to maintain safety, liquidity, and marketability will be applied as is required by the previous General Fund Balance Reserve strategy. Source of Funds: Bonds (GO/Rev.) Operating Budget Other Finance Review Account Number Sufficient Funds Ava; a e ~ Budget Director Finance Director P<:on'" 1 nf I e e e ~ --~~ ,,,,,,..,,,- 1. ' CITY OF NORTH RICHLAND HILLS · Investment diversification limits have been modified in the Policy (page 6) for allowable portfolio percentages in certificates of deposit, U.S. Treasury issues, and state and local bonds in order to address liquidity and diversification. · The Public Funds Investment Act as amended by the 2001 Texas Legislature (Appendix G) has been revised to reflect the changes then implemented. Overall, this revised Investment Policy is designed in a manner responsive to the public trust and consistent with state and local law. Recommendation: To approve Resolution No. 2003-024 CITY COUNCIL ACTION ITEM Page 2 of 2 .. e e e 't., RESOLUTION NO. 2003-024 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, THAT: 1. The City of North Richland Hills acknowledges the high priority of providing the necessary guardianship of public funds in the municipal sector. The City Council expressly intends to set high fiscal standards, delegate treasury and investment duties to appropriate officials, and to review the actual performance at regular intervals. The City Council hereby intends to implement investment requirements set forth in Tex. Rev. Civ. Stat. Ann., Art. 4413 (34c) and 2256. 2. The City Council has reviewed and hereby adopts the City of North Richland Hills' Investment Policy February 24, 2003, including all revisions and changes required under state law or recommended by City staff. This Investment Policy replaces the investment policy dated March 23, 1998. The City Council has also reviewed and approved the City of North Richland Hills' Investment Strategy document, as prepared by the City's Investment Committee. PASSED AND APPROVED this 24th day of February 2003. APPROVED Oscar Trevino, Mayor ATTEST: Patricia Hutson, City Secretary APPROVED AS TO FORM AND LEGALITY: George Staples, City Attorney APPROVED AS TO CONTENT: .. e e e l. CITY OF NORTH RICHLAND HILLS INVESTMENT STRATEGY STATEMENT Approved: March 23. 1 998Februarv 24. 2003 .. 't,. .. e PREFACE It is the policy of the City of North Richland Hills that, giving due regard to the safety and risk of investment, all available funds shall be invested in conformance with State and Federal Regulations, applicable Bond Resolution requirements, adopted Investment Policy and adopted Investment Strategy. In accordance with the Public Funds Investment Act (Texas Government Code Art. 2256), the City of North Richland Hills' investment strategies shall address the following priorities (in order of importance): · Understanding the suitability of the investment to the financial requirements of the City, · · · · e · Preservation and safety of principal, Liquidity, Marketability of the investment prior to maturity, Diversification of the investment portfolio, and Yield. Effective investment strategy development coordinates the primary objectives of the City of North Richland Hills' Investment Policy and cash management procedures to enhance interest earnings and reduce investment risk. Aggressive cash management will increase the available "investment period" and subsequently interest earnings. Maturity selections shall be based on cash flow and market conditions to take advantage of various interest rate cycles. The City's investment portfolio shall be designed and managed in a manner responsive to the public trust and consistent with the Investment Policy. Each major fund type has varying cash flow requirements and liquidity needs. Therefore specific strategies shall be implemented considering the fund's unique requirements. The City's Funds shall be analyzed and invested according to the following major fund types: I. Operating Funds II. Capital Improvement Funds III. Debt Service Funds IV. General Fund Balance Reserve V. Revenue Bond Reserves - 1 INVESTMENT STRATEGY In order to minimize risk of loss due to interest rate fluctuations, investment maturities will not exceed the anticipated cash flow requirements of the funds. Investment guidelines by fund type are as follows: I. Operatinq Funds The City of North Richland Hills Operating Funds are as follows: General Fund Special Revenue Funds _Special Investigation Fund _Crime Control District Fund Donations Fund Drainage Utility Fund Economic DevelopmontPromotional Fund Parks & Recreation Facilities Development Fund Enterprise Funds _Utility Fund _Golf Course Fund Internal Service Funds _Support Buildinq Services Fund Equipment Services Fund Capital Projects Funds General CIP Fund Street Maintenance Fund Component Units Tax Increment Financinq District 1 (T.I.F. No.1) Tax Increment Financinq District 2 (T.I.F. No.2) Aquatic Park Fund Self-Insurance Fund Information Services Fund Sidewalk Maintenance Fund Suitability - Any investment eligible in the Investment Policy is suitable for the Operating Funds. Safety of Principal - All investments shall be of high quality securities with no perceived default risk. Market price fluctuations will occur. By managing the weighted average days to maturity for the operating fund portfolio to less than 270 days and restricting the maximum allowable maturity to twathree years, the price volatility of the overall portfolio will be minimized. Marketability - Securities with active and efficient secondary markets are necessary in the event of an unanticipated cash requirement. Historical market "spreads" between the bid and offer price of a particular security-type of less than 0.25% will define an efficient secondary market. Liquidity - The Operating Funds require the greatest short-term liquidity of any of the fund types. Short-term constant dollar investment pools and money market mutual funds shall provide daily liquidity and may be utilized as a competitive yield alternative to fixed maturity investments. 2 " e e - 't . Diversification - Investment maturities shall be staggered throughout the budgot I Ery'6Iefiscal year to provide cash flow based on the anticipated operating needs of the City. ' Market cycle risk will be reduced by diversifying the appropriate maturity structure throughout two years and bv diversifvinq bv market sector. Yield - Attaining a competitive market yield for comparable security-types and portfolio restrictions is the desired objective. The yield of an equally weighted, rolling three month tIreasury bill portfolio shall be the minimum yield objective. II. Capital Improvement Funds The City of North Richland Hills Capital Improvement Funds are comprised from the monies available from the sale of debt and other sources to finance capital improvement projects. Bond Proceeds are segregated from Operations funds on the General Ledger and in investment accounts for arbitrage compliance purposes. Capital Improvement funds include all funding for the design and construction of municipal improvements, including: streets, drainage, utilities, parks, public safety and the purchase of capital items. Suitability - Any investment eligible in the Investment Policy is suitable for Capital Improvements. Safety of Principal - All investments shall be of high quality securities with no perceived default risk. Market price fluctuations will occur. By managing the various Capital Improvement accounts in anticipation of cash flow requirements, the impact of market risk for the portfolio will be minimized. Marketability - Securities with active and efficient secondary markets are necessary in the event of an unanticipated cash requirement. Historical market "spreads" between the bid and offer price of a particular security-type of less than 0.25% will define an efficient secondary market. Liquidity - The City's funds used for construction and capital improvement programs have reasonably predictable draw down schedules. Therefore, investment maturities shall generally follow the anticipated cash flow requirements. Investment pools and money market mutual funds shall provide readily available funds generally equal to one month's anticipated cash flow needs, or a competitive alternative for short term fixed maturity investments. A singular repurchase agreement may be utilized if disbursements are allowed in the amount necessary to satisfy any expenditure request. This investment structure is commonly referred to as a Flexible Repurchase Agreement. Diversification - Market conditions and arbitrage regulations influence the attractiveness of staggering the maturity of fixed rate investments for bond proceeds and other construction and capital improvement funds. With bond proceeds, if investment rates exceed the applicable arbitrage yield, the City is best served by locking in most investments. If the arbitrage yield can not be exceeded, then concurrent market conditions 3 · . will determine the attractiveness of diversifying maturities or investing in shorter and larger amounts. At no time will the anticipated expenditure schedule be exceeded in an attempt to increase yield with any City funds. Yield - Achieving a positive spread to the applicable arbitrage yield is the desired objective for bond proceeds. Non-bond proceed construction and capital project funds will target a rolling portfolio of three-month treasury bills as the minimum yield objective. III. Debt Service Funds The City's Debt Service funds include the General Debt Service Fund and the Sales Tax Revenue Debt Service Fund. The General Debt Service Fund is funded from ad valorem tax collections and monthly transfers from various other funds. The Sales Tax Revenue Debt Service Fund is funded solely from monthly transfers from the Park and Recreation Facilities Development Fund. Suitability - Any Investment listed as eligible in the Investment Policy is suitable for the Debt Service Fund. Safety of Principal - All investments shall be of high quality securities with no perceived default risk. Market price fluctuations will however occur. By managing the Debt Service Fund's portfolio to not exceed the debt service payment schedule, the market risk of the overall portfolio will be minimized. Marketability - Securities with active and efficient secondary markets are not necessary as the event of an unanticipated cash requirement is not probable. Liquidity - Debt service funds have predictable payment schedules. Therefore, investment maturities shall not exceed the anticipated cash flow requirements. Investment pools and money market mutual funds may provide a competitive yield alternative for time deposits and short term fixed maturity investments. A singular repurchase agreement may be utilized if disbursements are allowed in the amount necessary to satisfy any expenditure request. This investment structure is commonly referred to as a Flexible Repurchase Agreement. Diversification - Market conditions influence the attractiveness of fully extending maturities to the next unfunded payment date. Generally, if investment rates are trending down, the City is best served by locking in most investments. If interest rates are flat or trending up, then concurrent market conditions will determine the attractiveness of extending maturity or investing in shorter term alternatives. At no time shall the debt service schedule be exceeded in an attempt to bolster yield. Yield - Attaining a competitive market yield for comparable security-types and portfolio restrictions is the desired objective. The yield of an equally weighted, rolling three month tlreasury bill portfolio shall be the minimum yield objective. 4 e e - ~. IV. General Fund Balance Reserve The City's objective reqardinq the General Fund Balance is to maintain a sufficient fund balance to operate the City for a period of sixty days or 15% of the followinQ year's budqeted expenditures. The amount of funds to be invested in non-liquid other-than- overniqht investments shall be limited to not more than 50% of this amount of the General Fund Balance. Suitability - Anv investment eliqible in the Investment Policv is suitable for General Fund Balance Reserves. Safety of Principal - Generallv. the investment Qualitv of all securities allowed as investments in the Operatinq Funds will be allowable in the General Fund Balance Reserve. All investments shall be of hiQh Qualitv securities with no perceived default risk. Market price fluctuations will occur. Under no circumstance shall any investment from this portfolio cause the combined portfolio's weiqhted averaqe maturity to exceed the maximum allowed bv the Investment Policv. The maximum allowable maturity is restricted to three years. thereby maximizinq vield while minimizinq the price volatilitv of the General Fund Balance Reserve portfolio. Marketability - Securities with active and efficient secondary markets are necessary in the event of an unanticipated cash requirement. Historical market "spreads" between the bid and offer price of a particular security-type of less than 0.25% will define an efficient secondary market. liQuidity - The Fund Balance Reserve requires the liQuiditv necessary to cover the City's expenditures in the event of a cash shortfall. Short-term constant dollar investment pools and money market mutual funds shall provide dailv liQuiditv and may be utilized as a competitive vield alternative to time deposits and fixed maturity investments. Diversification - Investments that mature shall be reinvested to the maximum allowable maturity . To provide cash flow in the event that cash is needed for the operatinQ needs of the City. investment maturities should be staqqered throuqhout the year. Market cvcle risk will be reduced bvdiversifvinq the appropriate maturity structure throuqhout three years and bv diversifvinq bv market sector. Yield - Attaininq a competitive market vield for comparable security-types and portfolio restrictions is the desired obiective. The minimum vield objective shall be the qreater of that of the overall portfolio of the City or the vield of an eQuallv weiqhted. rollinq six-month Treasury bill portfolio. V. Revenue Bond Reserves Debt service reserves are required bv bond covenants for a particular bond issue. A Debt Service Reserve portfolio shall be established to better complv with bond covenant reauirements. 5 Suitability - Anv investment eliqible in the Investment Policv is suitable for Debt Service Fund Reserves. Safety of Principal - Generallv. the investment aualitv of all securities allowed as investments in the Operatina Funds will be allowable in the Debt Service Fund Reserve. All investments shall be of hiah aualitv securities with no perceived default risk. Market price fluctuations will occur. Under no circumstance shall any investment from this portfolio cause the combined portfolio's weiahted averaqe maturity to exceed the maximum allowed bv the Investment Policv. The maximum allowable maturity is restricted to three years, thereby maximizina vield while minimizinq the price volatility of the Revenue Bond Reserve portfolio. Marketability - Securities with active and efficient secondary markets are necessary in the event of an unanticipated cash reauirement. Historical market "spreads" between the bid and offer price of a particular security type of less than 0.25% will define an efficient secondary market. Bv utilizinq the vield advantaaes of fixed income securities. maximum vield should be attained while meetinq cash reauirements. liQuidity - The Debt Service Reserve Funds reauire the amount of liauiditv necessary to convert securities into cash for payment of debts on schedule. Short-term constant dollar investment pools and money market mutual funds shall provide dailv liauiditv and may be utilized as a competitive vield alternative to fixed maturity investments. Fixed income investments with maturity structures matchinq scheduled debt payment needs shall provide an additional source for competitive vield within the portfolio. Diversification - Investment maturities shall be scheduled to provide cash flow based on the anticipated debt payments of the City's obliqations. Market cvcle risk will be reduced bv diversifvinq the appropriate maturity structure throuqhout three years and bv diversifvinq bv market sector. Yield - Attainina a competitive market vield for comparable security-types and portfolio restrictions is the desired obiective. The vield of an eauallv weiqhted. rollinq three month Treasury Bill portfolio shall be the minimum vield objective. 6 e e e ". CITY OF NORTH RICHLAND HILLS INVESTMENT POLICY MARCH 23FEBRUARY 24, 40082003 " . e TABLE OF CONTENTS Preface Page I. Introduction and Objectives 1 II. Scope 1 III. Delegation and Restriction of Investment Authority 4-2 IV. Investment Committee 2 V. Investments 3 A. Authorized 3 B. Unauthorized 5 VI. Diversification 6 A. Securities Dealers and Banks 6 B. Investments 6 e VII. Safekeeping 7 VIII. Collateral ization 8 IX. Investment Procedures 9 A. Approval of Broker/Dealers 10 B. Investment Transactions 10 C. Investment Reporting 10 D. Training 11 X. Prudence 11 XI. Ethics and Conflicts of Interest 12 XII. Arbitrage 13 XIII. Depositories 13 XIV. Investment Policy Adoption 1~ e APPENDICES Page A. City of North Richland Hills Ordinance 2079 16 B. Investment Bid Form and Security Information Worksheet 18 C. Broker/Dealer Questionnaire 20 D. Authorized Securities Dealers 25 E. Primary Dealers 27 F. PSA Master Repurchase Agreement 28 G. Public Funds Investment Act of 1997 34 H. Interlocal Agreements 55 I. Glossarv 61 '. " '. e PREFACE "A public office is a public trust." Charles Sumner, 1872 If a public office is a public trust, then the trust must be administered properly. Public funds are acquired by governments largely through involuntary payments, particularly through taxation. In a modern democratic society, public officials are obligated to manage these funds in a disciplined manner. In most cases, laws govern the investment process. Laws alone however cannot compel public officials to a series of actions that assure the public's best interests. The actions of public officials responsible for investing public funds must be guided by knowledge, skills, systems, policies, procedures and confidence that can be described only as professional e discipline. It is the policy of the City of North Richland Hills that, giving due regard to safety and risk of investments, all available funds shall be invested in conformance with these legal and administrative guidelines, and, to the maximum extent possible, at the highest rates obtainable at the time of the investment. Effective cash management is recognized as essential to good fiscal management. An aggressive cash management and investment policy will be pursued to take advantage of investment interest as a viable and material revenue to all operating and capital funds. Earnings from investments will be used in a manner that will best serve the interest of the City of North Richland Hills. The City's portfolio shall be designed and managed in a manner responsive to the public trust and consistent with state and local law. e I. INTRODUCTION AND OBJECTIVES The purpose of this document is to set forth the specific investment policy and strategy guidelines for the City of North Richland Hills. All investment activity shall be consistent with state law as defined in Government Code 10 (Chapter 2256), known as the Public Funds Investment Act (the Act) and local law and shall be made in accord with the following objectives in order of priority: - security of investments and City funds preservation of capital and protection of principal maintenance of sufficient liquidity to meet operating needs _ diversification of investments to avoid unreasonable or avoidable risks maximization of the portfolio's yield within the City's investment risk constraints The City is required under the Public Funds Investment Act of 1007, Section 5, to adopt a formal written Investment Policy. This policy wasis to be adopted in 1987annuallv to meet the requirements of the Act, and has been revised periodically to comply with updated state requirements. Cash management is the process of managing monies in order in ensure maximum cash availability and maximum yield on short-term investments of idle cash. An aggressive cash management program and investment policy will be pursued by the Investment Officer to take advantage of investment interest as a viable and material revenue to all operating and capital funds. The City's portfolio shall be designed and managed in a manner responsive to the public trust. Earnings from investments will be used in a manner that will best serve the interests of the City of North Richland Hills. II. SCOPE This Investment Policy applies to all financial assets of the City of North Richland Hills in all current funds, any funds to be created in the future, and any other funds held in custody by the City, unless expressly prohibited by law or unless it is in contravention of any depository contract between the City and its depository bank. These funds are accounted for in the City's Comprehensive Annual Financial Report and include: General Fund Special Investigation Fund Crime Control District Fund Donations Fund Drainage Utility Fund Parks & Recreation Facilities Development Fund Economic Dovelopment Promotional Fund 1 Utility Fund Golf Course Fund Aquatic Park Fund Self-Insurance Fund Intern:)1 Buildina Service§ Fund Equipment Services Fund Information Services Fund Grant Fund e e e ", Capital Improvements Fund§ Street Maintenance Fund Sidewalk Maintenance Fund Debt Service Fund§ Tax Increment Financinq District NO.1 Tax Increment Financinq District NO.2 III. DELEGATION AND RESTRICTION OF INVESTMENT AUTHORITY This i!nvestment pPolicy and the outlining of investment practices and authorities is compiled in accordance with state legislation, Article 4413 (34c) which requires the adoption of rules governing investment and designation of an investment officer, and City Ordinance # 2079 which designates investment officers and provides prudent investment rules. Collateral requirements are created in accordance with the Public Funds Collateral Act (2257). Ultimate responsibility and authority for all investment transactions and cash management reside with the City Manager and the City's Finance Director. The Finance Director is also responsible for considering the quality and capability of staff to be involved in investment management and procedures. The Finance Director may delegate responsibility for the day to day investment activities to other qualified staff members. These staff members will be termed Investment Officers of the City. One of these Investment Officers will be designated the Primary Investment Officer by the Finance Director to conduct daily investment activity and prepare required investment reports. Investment Officers will not conduct any investment or banking activities involving City funds until a resolution or ordinance giving them authority to do so has been approved by the City Council of the City of North Richland Hills. All participants in the investment process shall seek to act responsibly as custodians of public trust. IV. INVESTMENT COMMITTEE There shall be established an investment committee to assist in monitoring the performance and structure of the City's portfolio and approved brokers. Members of this committee shall include the Director of Finance (as Chairman), and the Accounting Manager as permanent members. Additional members, numbering no less than three, will be appointed at the discretion of the Finance Director. The Primary Investment Officer will report to and make recommendations to the Investment Committee, but will have no vote concerning investment policy or suitability of investments. Any matters presented to the committee requiring a vote of the members shall be passed or denied by a simple majority. The Investment Officer or any other member of the committee shall have the power to call meetings of the committee. The committee shall meet no less than quarterly. 2 The Investment Committee shall perform the following functions: A. Approve the process of selecting authorized dealers, brokers, investment advisors, and safekeeping agents/custodians used by the City. B. Review the City's general portfolio activity and performance for compliance to this policy and recommend any changes or amendments to this policy to the City Council. C. Approve the Investment Strategy document, as prepared by the Investment Officer. This document is required by State law to be separate from the Investment Policy. The investment strategy will be a guide to the investment of all funds controlled by the City as described in Section II of the Investment Policy. The strategy is intended to adapt to changes in market conditions. D. Advise the Investment Officer as to recommendations regarding investment strategy and portfolio performance. E. Approve the purchase of any securities with maturities over twathree (2ª) years. F. Immediately notify the Investment Officer of any information brought to their attention that materially affects the portfolio or the marketability of any investments purchased in accordance with the Investment Policy. G. Oversee the activities of the persons designated to carry out investment transactions and inform the City Council of unaddressed concerns with the management of the City's investment portfolio. V. INVESTMENTS A. Authorized Investments Within the guidelines provided by the Public Funds Investment Act, Government Code 10, Chapter 2256, and further restrictions imposed by local ordinances, the following are acceptable investments of the City of North Richland Hills. 1. Obligations of the United States, its Agencies, and Instrumentalities. 2. Collateralized Mortgage Obligations (CMOs) directly issued by an agency or instrumentality of the United States, the underlying security for which is guaranteed by an agency or instrumentality of the United States. 3. Direct Obligations of the State of Texas or its Agencies. 3 ------ --,~----_.-._._.- e 4. Obligations of states, agencies, counties, cities, and other political subdivisions of any state rated as to investment quality of not less than A or its equivalent by a nationally recognized investment rating firm. 5. Certificates of Deposit issued by state or national banks or s3vings 3nd I03ns domicilod doinQ business in the state of Texas, guaranteed or insured by the Federal Deposit Insurance Corporation or its successor or secured by obligations described in 1 through 4 above, and that have a market value of not less than the principal amount of the certificates. 6. Fully Collateralized Repurchase Agreements that are structured in compliance with the Public Funds Investment Act. A flexible repurchase agreement can be utilized for the investment of bond proceeds to meet projected cash flow expenditures. Repurchase agreements must be purchased through a primary government securities dealer, as defined by the Federal Reserve, or a financial institutions doing business in this state (see Appendix E for a current list of Primary Dealers). Repurchase Agreements will only be executed with counterparties that have signed a PSA Tri-party Repurchase Agreement with the City. A sample PSA Tri-Party Repurchase Agreement is incorporated in this investment policy as Appendix F. e 7. Banker's Acceptances issued by depository institutions of the United States with a maximum maturity of 270 days and a minimum credit rating of A-1 or P-1 by at least one nationally recognized rating agency. Acceptable instruments must be liquidated in full at maturity and be eligible as collateral for borrowing from a Federal Reserve Bank. 8. Commercial Paper issued in the United States by any corporation. Such instruments must have a maturity of less than 270 days and must either be rated A-1 or P-1 by two nationally recognized credit rating agencies or be recognized by one nationally recognized credit agency and be fully secured by an irrevocable letter of credit issued by a national or state bank. 9. Mutual Funds a. No-load Money Market Mutual Funds are acceptable investments provided they are registered and regulated by the Securities and Exchange Commission, have a dollar-weighted stated average maturity of 90 days or less, and maintain a stable net asset value of $1 per share. -- b. No-load Mutual Funds are acceptable investments provided they are regulated by the Securities and Exchange Commission, have a dollar- weighted average stated maturity of 90 days or less, maintain a stable net asset value of $1 per share, are continuously rated AAA by at least one nationally recognized credit rating agency, and conform to all requirements 4 .' under the Public Funds Investment Act relating to the eligibility of investment pools to receive and invest funds of investing entities. (See Appendix G for the complete requirements for authorized Mutual Funds under the Act.) 10. Investment Pools a. Investment Pools must provide the Investment Officer with an offering statement that contains specific and detailed information required by the Act. Additionally, the pool should provide transaction confirmations, detailed monthly transaction summaries and monthly performance reports to the Investment Officer. The specific requirements for authorized investment pools are detailed in the Public Funds Investment Act, Subchapter A, Section 2256.016 (See Appendix G, pp. 47 for specifics). Authorized pools must maintain a credit rating of no lower than investment grade by at least one nationally recognized rating service. Investment Pools created to operate as a money market mutual fund must mark investments to market daily and maintain a net asset value of $1 per share with the market value per share between .995 and 1.005. b. In order to participate in an investment pool, the City Council must approve by resolution or ordinance a Participation Agreement or Interlocal Agreement to be executed with the State or Interlocal authority responsible for the investment pool. This agreement will specify the City's authorized representatives and the standard delivery instructions for fund transfers and information reports. (See Appendix H for approved interlocal agreements). B. Unauthorized Investments The following investment instruments are specifically not authorized: 1. Obligations whose payment represents the coupon payments on the outstanding principal balance of the underlying mortgage-backed security collateral and pays no principal (CMO derived Interest Only Strips). 2. Obligations whose payment represents the principal stream of cash flow from the underlying mortgage-backed security collateral and bears no interest (CMO derived Principal Only Strips). 3. Collateralized Mortgage Obligations that have a stated final maturity date of greater than ten (10) years. 4. Collateralized Mortgage Obligations whose interest rates are determined by an index that adjusts opposite to the changes in a market index (Inverse Floaters). 5. Certificates of Deposit and other investments issued by Savings and Loans. 5 __._.__.__.. _._,-u·_ e e e .... 6. Share Certificates and other investments issued by Credit Unions. 7. Guaranteed Investment Contracts. VI. DIVERSIFICATION A Securities Dealers and Banks Diversification of funds and investments must be accompanied by competitive bidding of all investments to assure diversification among securities dealers. Diversification is necessary to reduce the portfolio's credit and market risks, while helping the portfolio attain a market rate of return. The City shall seek to conduct its investment transactions with several competing, reputable investment security dealers and brokers to protect principal while achieving full advantage of the market. To assure diversification of financial institutions, business involving two party transactions (Le. repurchase agreements, BA's, and Commercial Paper) with anyone investment broker should be limited to thirty percent (30%) of the par value of the total portfolio for any reporting period. In this way, a bankruptcy, receivership or legal action would not immobilize the City's ability to meet payroll, operating, or other expenses. It is the policy of the City to diversify its investment portfolio so that reliance on anyone issuer or broker will not place an undue financial burden on the City. B. Investment Type Texas statutes authorize depositories and define allowable investment programs for municipal governments. The Texas City Depository Act (Article 2559-2599a, V.AT.C.S.) and the Public Funds Investment Act of 1995 (Article 842a-2, V.AT.C.S.) are the primary legal influences upon City investment practices. It is the policy of the City to purchase only securities authorized by both the Public Funds Investment Act and Section VI. A. of the City's Investment Policy. Market risk shall be minimized by diversification of investment types. The following limits, by instrument, are established for the City's total portfolio: (1) Repurchase Agreements 50% (2) Certificates of Deposit 4Q30% (3) U.S. Treasury Notes/Bonds/Bills 40080% (4) U.S. Agencies and Instrumentalities 75% (5) Commercial paper 10% 6 (6) Prime Domestic Banker's Acceptances 10% (7) State and Local Bonds and Notes 4020% (8) Money Market Mutual Funds (9) Mutual Funds 80% 15% (10) Investment Pools 100% The maximum maturity of any given investment in the portfolio shall not exceed a final, stated maturity of 5 years from the date of purchase. Reductions in the size of the portfolio due to cash outflows may cause an investment type to exceed the maximum percentage allowed for that investment type. In such situations, securities will be sold to reduce the percentage to allowable levels only if no loss will be realized from the sale. If a loss will be realized, then the investment may be held to maturity. To allow efficient and effective placement of proceeds from bond sales, a singular repurchase agreement can be utilized for the investment of bond proceeds, which exceeds the diversification limits. VII. SAFEKEEPING The laws of the State of Texas and prudent treasury management require that all purchased securities shall be held in safekeeping by either the City, a City account in a third party financial institution, or the City's safekeeping account in its designated depository bank. All securities owned by the City shall be held by a third party safekeeping agent, or in the Federal Reserve Bank, except for certificates of deposit that have FDIC insurance provided. For certificates of deposit with FDIC insurance, the City will hold the deposit receipt. Transfers of securities in safekeeping shall be processed with written confirmations. The confirmation will be used for documentation and retention purposes. One of the City's designated investment officers must approve release of collateral prior to its removal from the safekeeping account. It is the policy of the City that all securities rendered for payment will be sent "delivery verses payment" (DVP) through the Federal Reserve System. By so doing, City funds are not released until the City has received, through the Federal Reserve wire, the securities purchased. 7 e e . . VIII. COLLATERALlZATION Consistent with the requirements of State law, it is the policy of the City to require full collateralization of all City investments other than obligations of the United States and its agencies and instrumentalities. Collateral on investments shall be maintained by an appropriate third party safekeeping agent, as designated by the City. This policy also applies to any deposits held in an approved depository in excess of the amount protected by FDIC insurance. According to the Public Funds Investment Act of 1995, Section 10(2), the City may invest in certificates of deposit that are fully guaranteed by the Federal Deposit Insurance Corporation (FDIC) or are secured by obligations listed in Section VI (A) (1-4) of the Investment Policy. Certificates of deposit plus accrued interest up to $100,000 per bank do not need to be collateralized pursuant to this policy as long as FDIC insurance is provided. Certificates of Deposit in excess of $100,000, including accrued interest must be secured by approved collateral for the amount in excess of FDIC insurance. Collateral is valued at current market plus interest accrued through the date of the valuation. Collateral shall be marked to market no less than monthly to determine if adequate collateralization is being maintained. Repurchase agreement collateral must be maintained at the following levels, with respect to repurchase agreement par value plus accrued interest: Maturity of Collateral U.S. Treasury Secu rities Other Securities 1 year or less 1 year to 5 years Over 5 years 101% 102% 103% 101% 102% 104% Any collateral with a maturity of over 5 years must be approved by the investment committee in writing before the transaction is initiated. Collateralized investments often require substitution of collateral. Any broker or financial institution requesting substitution must contact the Primary Investment Officer, or in his absence any other authorized Investment Officer, for approval and settlement. The substituted collateral's value will be calculated and the substitution approved if its value is equal to or greater than the original collateralization level. The Finance Director, or an authorized designee, must give immediate notification of the decision to the bank or third party holding the collateral. Substitution is allowable for all transactions, but should be limited, if possible, to minimize potential administrative problems and transfer expense. The Finance Director may limit substitution and assess appropriate fees if substitution becomes excessive or abusive. Collateral shall be audited at least annually by the City's independent audit firm, and 8 may be audited by the City at any time during normal business hours of the safekeeping party. The financial institutions with whom the City invests and/or maintains other deposits shall provide, as requested by the City, a listing of the City's certificates of deposit and other deposits at the institution and a listing of collateral pledged to the City marked to current market prices. The listing shall include total pledged securities with the following information: Name Type/description Par value Current market value Maturity date Moody's or Standard & Poor's rating (both if available) Under state law, Article 2560, Section (d) (V.A.T.C.S.) substitution and release of collateral must be approved by the governing body. City of North Richland Hills Ordinance # 2079 Section (3) delegates the investment officers' overall responsibilities to ensure that investment objectives are accomplished, and therefore the authority to release and substitute collateral as deemed necessary and reasonable within the guidelines of this policy. IX. INVESTMENT PROCEDURES In order to enhance total yield and fulfill the objectives of this policy, the investment profile will be directed towards an active versus a passive portfolio. The risk-return relationship will be controlled through the investment parameters, operating requirements, and guiding policies of the Council. Safety of principal is the foremost objective of this investment policy. Each investment transaction shall seek to avoid capital losses from security defaults or erosion of market value. In order to avoid capital losses occurring from market declines, the City monitors market prices through a private financial firm. This financial firm provides daily updates on financial markets and the value of the City's investments. The City will practice competitive bidding when purchasing all investments to guarantee the highest rate of return. The right is reserved to reject the most financially favorable bid if it is potentially disruptive to the investment strategy or portfolio composition of the City. The investment portfolio is designed with the objective to achieve a rate of return in excess of the highest yielding investment pool in which the City is a participant. 9 e Additional benchmarks used in the evaluation of the performance of the City's portfolio are the three-month and six-month U.S. Treasury Bills, as applicable, given the portfolio's weighted average maturity. A. Approval of Broker/Dealers It is the policy of the City to purchase securities only from those institutions on the City's approved list of broker/dealers and banks. All securities dealers must be registered and certified with the Texas State Securities Commission, National Association of Security Dealers (NASD) and Securities and Exchange Commission (SEC). An institution must complete a broker/dealer questionnaire, sign a certification stating that they have read the City's Investment Policy, be approved by the Investment Committee and added to the list of approved broker/dealers before any business can be transacted with the City. A blank broker/dealer questionnaire is included in Appendix "C." A current list of approved securities dealers and banks is included in Appendix "D." This list may be revised by the Investment Committee as the City's investment needs change. The investment committee shall also be able to limit the number of authorized securities dealers/banks doing business with the City as required. The Investment Committee shall annually review, revise, and adopt a list of qualified brokers that are authorized to engage in investment transactions with the City. e All banks authorized to sell securities to the City will be Federal Reserve member banks and must be approved by the Investment Committee. No investments will be placed with Savings and Loan institutions or Credit Unions. B. Investment Transactions All purchases and sales of securities must be on a competitive bid basis. A minimum of three bids must be obtained to ensure a competitive price for the transaction. All investment transactions must be approved by the Accounting Manager, or the Finance Director, or, in their absence, an authorized Investment Officer. Appendix "B" contains the Investment Bid Form and Security Information Worksheet necessary to provide documentation for all investment transactions. All securities purchased shall require delivery on the settlement date to the City or its third party accounts on a DVP (delivery versus payment) basis. By so doing, City funds are not released until the City has received, through the Federal Reserve wire, the securities purchased. e C. Investment Reporting The Public Funds Investment Act of 1997 requires the preparation of quarterly management reports and an annual report of all investment transactions of the City to be presented to the City Council. City Ordinance # 2079 section (4) also requires an 10 , . annual report be presented to the City Council. The Primary Investment Officer will prepare the required quarterly and annual reports for evaluating investment portfolio performance. The reports will be approved and signed by all members of the Investment Committee. The reports will include the following information, as required by the Public Funds Investment Act: - a summary narrative of investment activity and portfolio performance over the period - size and composition of portfolio at the beginning and end of the reporting period - list all investments according to the fund they were purchased from - beginning and ending book and market value for all securities held - beginning and ending book and market value for the total portfolio - all additions and changes to the market value during the period - state the compliance of the portfolio to the investment policy and the Public Funds Investment Act - r3to of returnvield - diversification of funds - total sales, maturities, and purchases - accrued interest - performance compared to an established benchmark These quarterly reports should be used along with the annual report to fully evaluate and explain market trends and adjustment of investment strategies to manage market fluctuations. The annual report will show on a fiscal year basis the results of the overall investment strategy. The quarterly reports will conform to GAAP and be reviewed annually by the City's independent auditor, with results reported to Council. D. Training As required by the Act, all authorized Investment Officers must attend a training course that covers the requirements of the Act within one year of taking office or assuming duties. This training, provided by an independent source selected by the Investment Committee will include discussion of investment controls, security risks, and market risks. An additional 10 hours of investment training is required every two years for investment officers. X. PRUDENCE The standard of prudence to be applied by the investment officer shall be the "prudent investor" rule, which states: "Investments shall be made with judgement 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 capital as well as the probable income 11 - e 4t . .' to be derived." It should be noted that, in a diversified portfolio, occasional losses are inevitable and must be considered within the context of the overall portfolio's return:, I· In determining whether an investment officer has exercised prudence with respect to an investment decision, the determination shall take into consideration the investment of all funds, or funds under the City's control, over which the investment officer had responsibility, rather than a consideration as to the prudence of a single investment; and whether the investment decision was consistent with the written investment policy of the City. The investment officer, acting in accordance with written procedures and exercising due diligence, shall not be held personally responsible for a specific security's credit risk or market price changes, provided that these deviations are reported in a timely manner and appropriate action is taken to control adverse developments. The City shall provide for the defense and indemnification of any investment officer or investment committee member who is made party to any suit or proceeding, other than by actions of the City, or against whom a claim is asserted by reasons of their actions taken within the scope of their service as investment officers or appointed members of the investment committee. Such indemnity shall extend to judgements, fines, and amounts paid in settlement, of any such claim, suit or proceeding, including any appeal thereof. This protection shall extend only to members who have acted in good faith and in a manner which they reasonably believe to be in, or not opposed to, the best interests of the City. XI. ETHICS AND CONFLICTS OF INTEREST City staff involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair the ability to make impartial investment decisions. City staff should disclose to the City Manager any material financial investments in financial institutions that conduct business with the City and they shall further disclose positions that could be related to the performance of the City's portfolio. City staff shall subordinate their personal financial transactions to those of the City, particularly with regard to the timing of purchases and sales. An investment officer of the City who has a personal business relationship, as defined by the Public Funds Investment Act Of 1997, Section 2256.005 (I), with an organization seeking to sell an investment to the City shall file a statement disclosing that personal business interest. An investment officer who is related within the second degree of affinity or consanguinity to an individual seeking to sell an investment to the City shall file a statement disclosing that relationship. A disclosure statement required under this section must be filed with the Texas Ethics Commission and the governing body of the City. 12 XII. ARBITRAGE The Tax Reform Act of 1986 provides limitations on the City's yield from investing tax- exempt General Obligation and Revenue bond proceeds and debt service funds. These arbitrage rebate provisions require that the City compute earnings on investments from each issue of bonds on a periodic basis to determine if a rebate is required. To determine the City's arbitrage position, the city is required to calculate the actual yield earned on the investment of the funds and compare it to the yield that would have been earned if the funds had been invested at a rate equal to the yield on the bonds sold by the City. The rebate provisions state that periodically (not less than once every five years, and not later than sixty days after maturity of the bonds), the City is required to pay the U.S. Treasury a rebate of any excess earnings. These restrictions require extreme precision in the monitoring and record keeping of investments, particularly in computing yields to ensure compliance. Failure to comply can dictate that the bonds become taxable, retroactively from the date of issuance. The City's investment position relative to the arbitrage restrictions is to continue pursuing the maximum yield on applicable investments while ensuring the safety of capital and liquidity. It is a fiscally sound position to continue maximization of yield and to rebate excess earnings, if necessary. XIII. DEPOSITORIES The Texas City Depository Act, Article 2559 through 2566a, prescribes procedures for selection of a city depository designating that both general-law and home-rule cities are "authorized to receive applications (as depository) for the custody of city funds from any banking corporation, association, or individual banker doing business within the city". This clause indicates that cities are not required to designate one central depository. The City of North Richland Hills will, through a request for proposals process, designate one or more banks as its primary depository(ies). This centralization is designed to maximize investment capabilities and minimize banking cost. The depository designation does not limit investment activity to one financial institution. The consideration the City of North Richland Hills will use to consumm3teexecute a banking services contract will include: - Full service capabilities - Submission of financial statements and availability schedules _ Collateralization of the total City funds on deposit in the bank _ Statement of staff experience and equal opportunity employment practices - Cost of banking services - Credit worthiness 13 - .'-'-- - -_.~. . -- - ~- -- e e - Obtaining competitive proposals on the City's depository specifications will be the responsibility of the Finance Director. Selection of the depository shall be based on the institution's offering the most favorable terms and conditions for the handling of City funds (Article 2560, V.A.T.C.S.) and the services available to the City. The maximum term for a depository contract under State law is five years. The City's contract shall not exceed 5 years. An annual performance review will be conducted by the Investment Committee. Special banking needs may be contracted for by the City outside the depository contract if approved by City Council. If a depository does not meet the city's requirements in the banking services contract, the bank will be required to meet the requirements within six months or lose the depository contract. XIV. INVESTMENT POLICY ADOPTION The investment policy shall be adopted by ordinance or resolution of the City Council. The policy shall be reviewed annually by the Investment Committee and the City Council. Any policy revisions that require enactment due to updates of applicable state or federal laws may be authorized by the City Manager. Any other significant revisions must be approved by the City Council. 14 NI~H 15 e e e " . . Appendix A ORDINANCE NO. 2079 AN ORDINANCE OF THE CITY OF NORTH RICHLAND HILLS, TEXAS PROVIDING FOR THE DESIGNATION OF INVESTMENT OFFICERS: PROVIDING FOR INVESTMENT RULES AND POLICIES: PROVIDING FOR MANAGEMENT REPORTS: REPEALING A PREVIOUS ORDINANCE: AND PROVIDING A SEVERABILITY CLAUSE Whereas, the City of North Richland Hills acknowledges the high priority of providing the necessary guardianship of public funds in the municipal sector; and Whereas, the City Council expressly intends to set high fiscal standards, delegate treasury and investment duties to appropriate officials, and to review the actual performance at regular intervals; and Whereas, the City Council hereby intends to implement investment requirements set forth in Tex. Rev. Civ. Stat. Ann., Art. 4413 (34c) and 2256, NOW, THEREFORE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS. Section 1. Investment Rules. That the following policies and guidelines be established as investment rules governing the investment of local funds: A. All City funds from various revenue sources shall be billed or requested as earfy as they are recognized, computed, and determined to be due to the City. B. Funds received by the City shall be deposited into the depository bank at the end of each business day or as earfy as practical operating circumstances will allow. C. All debts owed by the City shall be paid as of the date they come due and not before unless approval is given by the City Manager. D. Based on cash forecasts, all monies not required immediately to pay obligations shall be invested in an income producing instrument or account. E. All investment activities and procedures shall be governed by a written investment policy. The Investment Policy is attached to this ordinance. Revisions to the Investment Policy required by updates to state and federal laws may be authorized by the City Manager. Any other significant alterations to the Investment Policy must be approved by the City Council. Section 2. Investment Obiectives. The City's funds shall be invested in appropriate instruments in such a manner to ensure the safety of investments, retention of investment principal, maintenance of sufficient liquidity to cover operating needs, diversity of the portfolio, and maximization of yield. The preceding objectives are listed in order of priority. The City shall invest in instruments providing the highest rate of return, as long as such investments do not conflict with the other priorities of the City's investment portfolio or statutes of this state regulating investments of City funds. 16 Appendix A Section 3. Designated Officials. The City Council hereby designates the Investment Officers of the City to be the City Manager and Finance Director. The City Manager and Finance Director will have the overall responsibility to ensure that investment objectives are accomplished and that the guidelines of the investment policy are followed. The Finance Director will designate staff members to administer the daily functions of managing the cash and investments of the City. These persons must be authorized as investment officers by a Resolution of the City Council before they are delegated any investment duties. Section 4. Management Reports. At least quarterly the investment officers shall prepare a written report concerning the City's investment transactions for the preceding quarter. This report will describe in detail the investment position of the City at the end of each quarter. A report on investment activity for the fiscal year shall be presented as the report for the fourth quarter. The reports shall be signed by the City Manager, the Finance Director and all other authorized investment officers and presented to the City Council. Section 5. Repeal of Previous Ordinances. Ordinance No. 2076 is hereby repealed. Section 6. Severability. Provisions of this ordinance shall be, and they are hereby, declared to be severable; and should any portion of it be declared to be invalid for any reason by a court of competent jurisdiction, such holding shall not affect the remaining portions thereof. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICH LAND HILLS, TEXAS on this the 9th day of October, 1995. APPROVED: ~~~>r If;LJn.J-''-J Tommy Brown ayor ATTEST: ~~ Secretary 17 , ' e TRADE DATE / TIME: INVESTMENT ACCOUNT: DESIRED SECURITY: DESIRED PAR VALUE: DESIRED MATURITY: CITY OF NORTH RICHLAND HILLS INVESTMENT BID FORM PURCHASE: SELL: Appendix B BROKER ACCEPTED SECURITY MATURITY COUPON YTM YTC 1. e2. 3. 4. 5. Comments: Transaction By: Approved By: e 18 Appendix B CITY OF NORTH RICHLAND HILLS SECURITY INFORMATION WORKSHEET NAME OF SECURITY: CUSIP NUMBER: COUPON / DISC. RATE: YIELD TO MATURITY/CALL: MATURITY/CALL DATE: PAR VALUE: TRADE DATE: SETTLEMENT DATE: PRINCIPAL +ACCRUED INTEREST: + PURCHASE PRICE SAFEKEEPING ACCOUNT: 259091 NAME OF BROKER: TIME OF TRADE: ENTERED BY: FAX TO: BANK OF AMERICA SAFEKEEPING PH # 1-800-657-9529 FAX # 704-386-0175 APPROVED BY: K:ACCl\INVESTMENTS\BROKER\SECURITIES WORKSHEET.XLS FUND: 19 e e e , . Appendix C CITY OF NORTH RICH LAND HILLS BROKERfDEALER QUESTIONNAIRE AND CERTIFICATION 1. Name offinn 2. Address: Local: National: 3. Telephone number: Local: National: 4. Primary representative/manager/partner-in-charge Name Name Title Title Telephone no. Telephone no. 5. Is your finn a subsidiary of another finn? If yes, which finn? 6. Are you a primary dealer in U. S. Government securities? [ ] Yes [] No If so, for how long has your finn been a primary dealer? years 7. Is your finn an inventory dealer? Do you take a position in securities which you sell or buy? 8. What was your finn's total volume in U. S. Government and agency securities trading last year? Finn-wide $ Your local office $ Number of transactions Number of transactions 20 Appendix C City of North Richland Hills Broker/Dealer Questionnaire 9. Which instruments are offered regularly by your local desk? [] T -bills [] BAs (domestic) [] Treasury notes/bonds [] Commercial paper [] GNMAs [] Bank CDs [] FHLMCs [] S & L CDs Other Federal Agencies (Please specify) Instrumentalities (Please specify) 10. Identify all personnel who will be trading with or quoting securities to our government's employees. Name Title Telephone Number Primary Alternate Alternate (Please attach resumés of the personnel listed above.) How long has the primary representative been an institutional governmental securities broker at the firm? 11. Is the firm and the account representative registered with the Texas State Securities Commission? If yes, for how long? Firm_ Representative_ 12. Which ofthe above personnel have read the City's investment policies? 13. Please indicate which agents of your firm's local offices currently are licensed, certified or registered, and by whom. Agent Licensed or registered by 14. Please identify your public-sector clients in our geographical area who are most comparable to our government. Entity Contact person Telephone no. Client since - 15. Is your firm a member ofNASD? Yes If not, why? No· - ..-.~...:,...- 21 ·' . . e e e Appendix C City of North Richland Hills BrokerlDealer Questionnaire 16. Place an "X" by each regulatory agency that your finn is examined by and/or subject to its rules and regulations: FDIC Comptroller of Currency SEC NYSE Federal Reserve System Other: (example: State Regulatory Agency) Multistate finns please note: It is not necessary to include regulatory agencies which do not have jurisdiction over your finn's activities in the State of Texas. 17. Have you obtained all required licenses to operate as a broker/dealer in the State of Texas? [ ] Yes [ ] No 18. To the best of your knowledge, has there been any "material" litigation, arbitration, or regulatory proceedings, either pending, adjudicated or settled, that your finn has been subject to within the last five (5) years that involved issues concerning the suitability of the sale or purchase of securities to institutional clients or fraudulent or unfair practices related to the sale of securities to an institutional client? If so, please describe each such matter briefly. For purposes of this question, proceedings are "material" if your independent accountant applying generally accepted accounting principles detennines that such proceedings required disclosure in your financial statements. 22 Appendix C City of North Richland Hills Broker/Dealer Questionnaire 19. Have any of the employees listed in item ten (10) ever had sanctions imposed due to any of the activities noted in item eighteen (18)? Explain the outcome, case and/or case citation in an attached explanation. 20. Please include samples of research reports that your firm regularly provides to public-sector clients. 21. Please explain your normal custody and delivery process. Who audits these fiduciary systems? What reports, transactions, confirmations and paper trail will we receive? 22. Enclose a complete schedule of fees and charges for various transactions. 23. Please provide your firm's most recent certified audited financial statements. In addition, for those dealers preparing and submitting financial statements to the following organizations, please provide publicly available financial documents filed with these agencies for the most current reporting period: National Association of Securities Dealers Securities and Exchange Commission New York Stock Exchange Federal Deposit Insurance Corporation 24. Has your firm consistently complied with the Federal Reserve Bank's capital adequacy guidelines? As of this date, does your firm comply with the guidelines? Has your capital position ever fallen short? By what factor (1.5x, 2x, etc.) does your firm presently exceed the capital adequacy guidelines? Include certified documentation of your capital adequacy as measured by the Federal Reserve standards. 23 _..'-'---'--- .. e e e Appendix C City of North Richland Hills BrokerlDealer Questionnaire 25. Describe the capital line and trading limits that support/limit the office that would conduct business with our government. 26. If you are not a bank, please provide the following information regarding your principal banking relationship. Bank Name Address Person to Contact Length of Relationship Telephone # 27. Do you participate in the SIPC insurance program? Ifnot, explain why not. 28. What portfolio information do you require from your clients? 29. How many and what percentage of your transactions failed last month? Last year? 30. Describe the precautions taken by your firm to protect the interests of the public when dealing with governmental agencies as investors. 24 Appendix C City of North Richland Hills BrokerlDealer Questionnaire -CERTIFICATION- This certification is executed on behalf of the City of North Richland Hills (the Investor) and (the Business Origination) pursuant to the Public Funds Investment Act, Chapter 2256, Texas Government Code (the Act) in connection with investment transactions conducted between the Investor and the Business Origination. The undersigned Qualified Representatives of the Business Organization bereby certifies on behalf of the Business Organization that: 1. The undersigned is a Qualified Representative of the Business Organization offering to enter an investment transaction with the Investor as such terms are used in the Public Funds Investment Act, Chapter 2256, Texas Government Code and 2. The Qualified Representative of the Business Organization has received and reviewed the Investment Policy furnished by the Investor and 3. The Qualified Representative of the Business Organization has implemented reasonable procedures and controls in an effort to preclude investment transactions conducted between the Business Organization and the Investor that are not authorized by the entity's investment policy, except to the extent that this authorization is dependent on an analysis of the makeup ofthe entity's entire portfolio or requires and interpretation of subjective investment standards. Qualified Representative of the Business Organization Signature Name Title Date 25 e e e Appendix D City of North Richland Hills Approved Securities Dealers As of December 31,2002 Securities Dealers First Southwest Corp. Merrill Lynch, Inc. Paine 'Nebber, Inc. Gilford Securities, Inc. First Empire, Inc. Multi Bank Securities, Inc. Morgan Keegan & Company Griffin, Kubik, Stephens, & Thompson Everen Securities APS Financial Corp. Duncan-Williams. Inc. Coastal Securities Seattle-Northwest Securities Corp. Great Pacific Securities O'Connor & Co. Securities Bankina Institutions NationsBank Texas First Simmons National Bank Commorco Bank Zions Bank First Tennossoo Capital Markets Investment Pools T exPool LOGIC MBIA CLASS 26 PRIMARY SECURITIES DEALERS This page to be inserted when received. 27 Appendix E " e e e Public Securities Association 40 B~oad Street, New York, NY 10004-2373 ïelephone (212) 809-7000 APPENDIX F PSA MASTER REPURCHASE AGREEMENT Between: Dated as of and 1. Applicability From time to time the parties hereto may enter into transactions in which one parïy ("Seller") agrees to transfer to the other ("Buyer") securities or financial instruments ("Securities") against the transfer of f¡;nds by Buyer, with a simultaneous agreemer.t by Buyer to transfer to Seller such Securities at a dare cenain or on der.¡and. against the tr2nsfer of funes by Seller, Each such transaction shall be referred to herein as a "Transaction" and shall be governed by this Agreement, including 2ny suppiemental terms or conditions contained in Annex I hereto, unless otherNise agreed in '",riting, 2. Definitions (a) ''Act of Insolvency", with respect to any party, (i) the commencement by such party as debtor of any case or proceeding under any bankruptcy. insolvency. reorganization, liquidation. dissolution or similar law. or 'such party seeking the appointment of a receiver, trustee, custodian or similar official for such party or any substantial pal. of its property, or (ii) the camr;;er:cement of any s¡,;ch case or proceeding against such parïy, or another seeking such an appointment. or the filing against a party of an application for a protective decree under the provisions of the Securities Investor Protection Act of 1970, whicr, (A) is consented to or not timely contested by such p2~y, (B) iesulLs in the entry of an order for relief, such an appointment, the issuance ot such a protective decree or the entry of an order having a similar ettect, or (C) is not dismissed within 15 days, (iii) the making by ë. parïy of a general assignment for the benetit of creditors, or (iv) the adrr;1ission in writing by a party of such party's inability to pay such p2..y's debts as they become due; (b) ''Additional Purchased Securities", Securities provided by Seller to Buyer pursuant to Paragraph 4(a) hereof; (c) "Buyer's Margi;-¡ Amount", with respect to any Transaction as ot any date, the amount obtained by application of a perceniage (which may be equal to the percentage that is agreed to as the Seifer's Margin Amount und¿r subparagraph (q) ot this Paragraph), agreed to by Buyer and Seifer prior to entering into the Transaction, to the Repurchase Price for such Transaction as of such date; (d) "Confirmation", the meaning specified in Paragraph 3(b) hereof; (e) "Income", with respect to any Security at any time, any principal thereof then payable and all interest, dividends or other distrÓutions ,thereon; (f) "Margin Deficit", the meaning specified in Paragraph 4(a) hereof; (g) "Margin Excess". the meaning specified in Paragraph 4(b) hereof; (h) "Market Value", with respect to any Securities as of any date, the price for such Securities on such date obtained from a generally recognized source agreed to by the parïjes or the most recent closing bid quotation from such a sO'Jrce, plus accrued Income to the extent not included therein (other than any Income credited or transferred to, or applied to the obligations of, Seller pursuant to Paragraph 5 hereof) as of such date (unless contrary :0 market practice for such Securities); (i) "Price Differeniial", with respect to any Transaction hereunder as of any date. the aggregate amount obtained by daily application ot the Pricing Rate for such Transaction to the Purchase Price for such Transaction on a 360 day per year basis for the actu2/ number of days during ¡he periOd commencing on (and including) the Purchase Date for such Transaction and ending on (but excluding) the date of determination (reduced by any amount of such Price Differential previously paid by Seller to Buyer with respect to such Transaction); \ 28 -. So'!! 7 APPENDIX F U) "Pricing Rate". the per annum percentage rate for cetermination of the Price Differential; (I<) "Prime Rate", the prime rate of U.S. money center commercial banks as published in The Yv.3/1 Street Journal; (I) "Purchase Date", the date on which Purchased Securities are transferred by SeHer to Buyer; (171) "Purchase Price", (i) on the Purchase Date. the price at which Purchased Securities are transferred by Seifer to Buyer, and (ii) thereafter, such price increased by the amount of any cash transferred by Buyer to Seller pursuant to Paragraph 4(b) hereof and decreased by the amount of any cash transferred by Seller to Buyer pursuant to Paragraph 4(a) hereof or applied to reduce SeHer's obligations under clause (ii) of Paragraph 5 hereof; (,'1) "Purchased Securities", the Securities transferred by Seller to Buyer in a Transaction hereunder, and any Securities substituted therefor in accordance with Paraç;raph 9 hereof. The term "Purchased Securities" with respect to any Transaction at any time also shall include Additional P...JrChased Securities delivered pursuant to Paragraph 4(a) and shall exclude Securities returned pursuant to Paragraph 4(b); (0) "Repurchase Date", the date on which Seifer is to repurchase the Purchased Securities from Buyer, incJuding any date determined by application of the provisions of Paragraphs3(c) or 11 hereof; (p) "Repurchase Price", the price at which Purchased Securities are to be transferred from Buyer to Seifer UDOõ1 termination of a Transaction. which will be determined in each case (including Transactions terminable upon demand) as the sum of the Purchase Price and the Price Differential as ofthe date of such determination, increased by any amount determined by the application of the provisions of Paragraph' 1 hereof; (q) "SeHer's Margin Amount", with respect to any Transaction as of any date. the amount obtained by ap¡::;lication of a percentage (which may be equal to the percentage that is agreed to as the Buyer's Margin Amount under subparagraph (c) of this Paragraph). agreed to by Buyer and Seller prior to entering into the Transaction, to the Repurchase Price for such Transaction as of such date. 3. Initiation; Confirmation; Termination (a) An agreement to enter into a Transaction may be made orally or in writing at the initiation of either BL:yer or Seller. On the Purchase Date for the Transaction. the Purchased Securities shall be transferred to Buyer or its agent against the transfer of the Purchase Price io an account of Seller. (b) Upon agreeing to enter into a Transaction hereunder. Buyer or Seller (or both). as shall be agreed. sha!l promptly deliver to the other parïy a written confirmaiion of each Transaction (a "Confirmation"). The Confirmation shall describe the Purchased Securities (inCluding CUSIP number. if any), identify Buyer and Seller and set forth. (i) the Purchase Date, (ii) the Purchase Price, (iii) the Repurchase Date, unless the Transaction is to be terminable on demand, (iv) the Pricing Rate or Repurchase Price applicable to the Transaction, and (v) any additional terms or conditions of the Transaction not inconsistent with this Agreement. The Confirmation, together with this Agreement. shall constitute conclusive evidence of the terms agreed bel/leen Buyer and Seller with respect to the Transaction to which the Confirmation relates, unless with respect to the Confirmation specific objection is made promptly after receipt thereof. In the event of any conflict between the terms of such Confirmation and this Agreement. this Agreement shall prevail. (c) In the case of Transactions terminable upon demand. such demand shall be made by Buyer or Seller. no later than such time as is customary in accordance with market practice, by telephone Ç>r otherwise on or prior to the business day on which such termination will be effective. On the date specified in such demand, or on the date fixed for termina.tion in the case of Transactions having a fixed term, termination of the Transaction will be effected by transfer to Seller or its agent of the Purchased Securities and any Income in respect thereof received by Buyer (and not previously credited or transferred to, or applied to the obligations of, Seller pursuant to Paragraph 5 hereof) against the transfer of the Repurchase Price to an account of Buyer. I 4. Margin Maintenance (a) If at any time the aggregate Market Value of all Purchased Securities subject to all Transactions in which a particular party hereto is acting as Buyer is less than the aggregate Buyer's Margin Amount for all such Transactions (a "Margin Deficit"), then Buyer may by notice to Seller require Seller in such Transactions, at Seller's option, to transfer to Suyercash or additional Securities reasonably acceptable to Buyer ("Additional Purchased Securities"), so that the cash and aggregate Market Value of the Purchased Securities, including any such Additional Purchased Securities. will thereupon equal or exceed such aggregate Buyer's Margin Amount (decreased by the amount of any Margin peficit as of such date arising from any Transactions in which such Buyer is acting as Seller). (b) If at any time the aggregate Market Value of all Purchased Securities subject to all Transactions in which a particular party hereto is acting as Seller exceeds the aggregate Seller's Margin Amount for áll such Transactions at such time (a "Margin Excess"), then Seller may by notice to Buyer require Buyer in such TransactIOns, at Buyer's option, to transfer cash or Purchased Securities to Seller, so that the aggregate Market Value of the Purchased Securities, after deduction of any such cash or any Purchased Securities so transferred, will thereupon not exceed such aggregate Seller's Margin AmOunt (increased,by the amount of any Margin Excess as of such date arising from any Transactions in which such Seifer is acting as Buyer). (fj Any cash transferred pursuant to this Paragraph shalf be attributed to such Transactions as shall be agree-;j upon by Buyer and Seller. -. 29 " e e e APPENDIX F (d) Seller and Buyer may agree. with respect to any or all Transactions hereunder, that the respective rights of Buyer or Se:ler (or both) unde, subparagraphs (a) and (J) of this Paragraph may be exercised only where a Margin Deficit or Margin Excess exceeds a specified dollar amount or a specified percentage of the RepurChase Prices for such Transactions (which amount or percentage shall be agreed to by Buyer and SeHer prior to entering into any such Transactions). (e) Seller and Buyer may agree. with respect to any or all Transactions hereunder, that the respective rights of Buyer and Seller under subparagraphs (a) and (b) of this Paragraph to require the elimination of a Mar~in Deficit or a Margin Excess, as tne case may be, may be exercised whenever such a Margin Deficit or Margin Excess exists with respect to any single Transaction hereuncer (calculated without regard to any other Transaction outstanding under this Agreement). 5. Income Payments Where a particular Transaction's term extends over an Income payment date on the Securities subject to that Transaction, Buyer shall, as the pa~ies may agree with respect !o such Transaction (or, in the absence of any agreement, as Buyer shall reasonably determine in its discretion), on the date such Income is payable either (i) transfer to or credit to the account of Seller an amount equal to such Income payment or payments with respect to ariy Purchased Securities subject to such Transaction or (ii) apply the Income payment or payments to reduce the amount to be transferred to Buyer by Seller upon termination of the Transaction. Buyer shall not be obligated to take any action pursuant to the preceding sentence to the extent that such action would result in the creation of a Margin Deficit, unless prior thereto or simultaneously therewith Seller transfers to Buyer cash or Additional Purchased Securities sufficient [0 eliminate such Margin Deficit. 6. Security Interest Although the parties intend that all Transactions hereunder be safes and purChases and not loans, in the event any such Transactions are deemed to be loans, Seller shall be deemed to have predged to Buyer as security for the pertormance by Seller of its obligations uncer each such Transaction, and shall be deemed to. have granted to Buyer a securiiy interesi in, all of the Purchased S¿curities with respect to all Transactions hereunder and all proceeds thereat. 7. Payment and Transfer Unless otherwise mutually agreed. all transfers of funds hereunder shall be in immediately available flJnCs. All Securities transferred by one pa~y hereiO to the other par.y (i) shaH be in suitable form tor transfer or shall be accompanied by du!y executed instruments of transfer or assignment in blank and such other documentation as the party receiving possession may reasonably request. (ii) s~all ~e transferred on the book-entry system of a Federal Reserve Bank, or (iii) shall be transferred by any other method mlJtually acceptable to Seller and Buyer. As used herein with respect to Securities, "transfer" is intended to have the same meaning as when used in Section 8-3' 3 of the New York Uniform Commercia! Ccce or, where applicable, in any federal regulation governing transfers of the Securities. 8. Segregation of Purchased Securities To the extent required by applicable law, all Purchased Securities in the possession of Seller shall be segregated trom other seçurities in its possession and shall be identified as subject to this Agreement. Segregation may be accomplished by appropriate identification on the books and records of the holder, including a financial inter¡¡¡ediary or a clearing corporation. Title to all Purc.',ased Securities shall pass to Buyer and, unless otherwise agreed by Buyer and Seller, nothing in this Agreement shall preclude Buyer from engaging in repurchase transactions with the Purchased Securities or otherwise pledging or hypothecating the Purchased Securities, but no such transaction shall relieve Buyer of its obligations to transfer Purchased Securities to Seller pursuant to Paragraph~ 3, 4 or , 1 hereof, or of Buyer's obligation to credit or pay Income to, or apply Income to the obligations of, Seller pursuant to Paragraph 5 hereof. Required Disclosure for Transactions in Which the Seller Retains Custody of the Purchased Securities Seller is not permitted to substitute other securities for those subject to this Agreement and tilerefore must keep Buyer's securities segregated at all times. lJnless in this Agreement Buyer grants Seller the fight to substitute other securities. If Buyer grants the right to substitute. this means that Buyer's securities will likely be commingled with SeHer's own securities during the trading day. Buyer is advised thar. during any trading day that Buyer's securities are commingled with Seller's securities, they (willr (may]"- be subject to liens granied by Seller to (its clearing bank]" [third parries]"- and may be used by Seller for deliveries on other seclJrities transactions. Whenever the secunties are Commingled. Seller's ability to resegrega:e substitu:e securities for Buyer will be 'subject to Selier's ability to satisfy {the clearing]" (any]"· lien or to obtain substitute securities. ... 'Lanç¡:aç!! to be used under 1 ì C.F.R. §403.4(e) it Seller is a government S!!C¡:rities br::l":f>r or dealer other than a financial institution. uLanguë,e to b!! used under 17 C,F.R. §~03.5(d) it Seller is a financial in~i:u::on. 30 9. Substitution (a) Seller may, su!Jject to agreement wit;' and acceptance by Buyer, substitute other Securities for any Purchased Securities. Such substitution shaH be õ.1ade by transfer to Buyer of such other Securities and transfer to Seller of such Purchased Securities. After substitution. the substituted Securities shall be deemed to be Purchased Securities. (b) In Transactions in which the Seller re:ains custody of Purchased Securities, the parties expressly agree that Buyer shall be deemed. for þurpcses of subparagraph (a) of this Paragraph, to have agreed to and accepted in this Agreement substitution by S-:!Ier of other Securities for Purchased Securities; provided. however, that such other Securities shall have a Market Value at least equal to the Market Value of tô'"',e Purchased Securities for which they are substituted. 10. Representations '. Each of Buyer and Seller represents and warrants to the other that (i) it is duly authorized to execute and deliver this Agreement. to enter into the Transactions contemplated hereunder and to perform its obligations hereunder and has taken all necessary action to authorize such execution, delivery and performance, (ii) it will engage in such Transactions as principal (or, if agreed in writing in advance of any Transaction by the other party hereto, as agent for a disclosed principal). (iii) the person signing this Agreement on its behalf is duly authorized to do so on its behalf (or on behalf of any such disclosed principal). (iv) it has obtained all authorizations of any governmental body required in connection with this Agreement and the Transactions hereunder and such authorizations are in full force and effect and (v) the execution, delivery and performance of this Agreement and the Transactions hereunder will not violate any law, ordinance, charter, by-law or rule applicable to it or any agreement by which it is bound or by which any of its assets are affected. On the Purchase Date for any Transaction Buyer and Seller shall each be deemed to repeat all the foregoing representations made by it. 11. Events of Default In the event that (i) Seller fails to repurchase or Buyer fails to transfer Purchased Securities upon the applicable Repurchase Date, (ii) Seller or Buyer fails. afier one business day's notice. to comply with Paragraph 4 hereof, (iii) Buyer fails to comply with Paragraph 5 hereof, (iv) an Act of InSOlvency occurs with respect to Seller or Buyer. (v) any representation made by Seller or Buyer shall have been incorrect or untrue in any material respect when made or repeated or deemed to have been made or repeated. or (vi) Seller or Buyer shall admit to the other its inability to. or its intention not to. perform any of its obJiga:ions hereunder (each an "Event of Default..): (a) At the option of the nondefaulting party. exercised by written notice to the defaulting party (which option shall be deemed to have been exercised. even if no notice is given, immediately upon the occurrence of an Act of Insolvency), the Repurchase Date for each Transaction hereunder shall be deemed immediately to occur. (b) In aIJ Transactions in which the defaul1ing party is acting as Seller, it the nonde/aulting party exercises . or is deemed to have exercised the option referred to in subparagraph (a) of this Paragraph. (i) the defaulting· party's obligations hereunder to repurchase afJ Purcha:sed Securities in such Transactions shall thereupon become immediately due and payable. (ii) to the extent permitted by applicable law, the Repurchase Price with respect to each such ïransaction shall be increased by the aggregate amOL:nt obtained by daily application of (x) the greater of the Pricing Rate for such Transaction or the Prime Rate to (y) the Repurchase Price for su.ch Transaction as of the Repurchase Date as determined pursuant to subparagraph (a) of this Paragraph (decreased as of any day by (A) any amounts retained by the nondefaulting party with respect to such Repurchase Price pursuant to clause (iii) of this subparagraph, (B) any proceeds from the safe of Purchased Securities pursuant to subparagraph (d)(i) 0/ this Paragraph, and (C) any amounts credited to the account oi the defaulting party pursuant to subparagraph (e) of this Paragraph) on a 360 day per year basis for the actual number of days during the period from and in clueing the date of the Event of Default giving rise to such option to but excluding the date of payment of the Repurchase Price as so increased, (iii) all Income paid after such exercise or deemed exercise shall be retained by the non defaulting party and applied to the aggregate unpaid Repurchase Prices owed by the defaulting party. and (iv) the defaulting party shall immediately deliver to the nondefaufting party any Purchased-Securities subject to such Transactions then in the defaulting party's possession. (c) In all Transactions in which the defaulting party is acting as Buyer. upon tender by the nondefaulting party of payment of the aggregate Repurchase Prices for all such Transactions, the defaulting party's right. title and interest in all Purchased Securities subject to such Transactions shall be deemed tTansferred to the nondefaulting party, and the defaulting party shall deliver all such Purchased Securities to the nondefaulting party. (d) After one business day's notice to the defaulting party (which notice need not be given if an Act of Insolvency shall have occurred. and which may be the notice given under subparagraph (a) of this Paragraph or the notice referred to in clause (ii) of the first sentence of this Paragraph), the nondefaultjng party may: (i) as to Transactions in which the defaulting parry is acting as Seller, (A) immediately sell, in a recognized market at such price or prices as the nondefaulting party may reasonably deem satisfactory, any or all Purchased Securities subject to such Transactions and apply the proceeds thereof to the agîregate unpaid Repurchase Prices and any other amounts owing by the defaulting party hereunder APPENDIX F ~. 31 e e e .......... .....~.LIli'l. r VI to} 1.111::; ~Ult! Olscreílon elect, In lieu of Se!IIng all or a portion of such Purchased Securities, to give the defaulting pa;.y credit for such PurChased Securities in an amount equal to the price therefor on such date, obtained irom a generally recognized Source or the most recent closing bid quotation from such a source, against the aggregate unpaid Repurchase Prices and any other amounts owing by the defaulting party hereunder; and (ij) as to Transactions in which the defaulting party is acting aS8uyer, (A) purchase securities ("Replacement Securities") of the same class and amount as any Purchased Securities that are not delivered by the defaulting party to the nondeiaulting party as required hereunder or (8) in its sole' discretion elect, in lieu of purchasing Replacement Securities, to be deemed to have purchased Replacement Securities at the price therefor on such date, obtained from a generally recognized source or the most recent closing bid quotation from such a source. (e) As to Transactions in which the 'defaulting party is acting as Buyer, the defaulting party shall be liable to the nondefaulting party (i) with respect to Purchased Securities (other than Additional Purchased Securities), ,for any excess of the price paid (or deemed paid) by the nondefaulling party for Replacement Securities therefor over the Repurchase Price for such Purchased Securities and (ii) with respect to Additional Purchased Securities. for the price paid (or deemed paid) by the nondefaulting party for the Replacement Securities therefor. In addition, the defaulting party shall be liable to the nondefautting party for interest on such remaining liability with respect to each such purchase (or deemed purchase) of Replacement Securities from the date of such purchase (or deemed purchase) until paid in full by Buyer. Such interest shall be at a rate equal to the greater of the Pricing Rate for such Transaction or the Prime Rate. (f) For purposes of this Paragraph 1 1. the Repurchase Price for each Transaction hereunder in respect of which the defaulting party is acting as Buy~r shall not increase above the amount of such Repurchase Price for such Transaction determined as of the date of the exercise or deemed exercise by the nondefaulting party of its option under subparagraph (a) of this Paragraph. (g) The defaulting party shall be liable to the nondefaulting party for the amount of all reasonable leçal or other expenses incurred by the nondefauiting parry in connection with or as a consequence of an Event of Default, together with interest thereon at a rate equal to the greater of the Pricing Rate for the relevant Transaction or the Prime Rate. (h) The nondefaulting party shall have, in aCdition to its rights hereunder, any rights otherwise available to it under any other agreement or applicable law. 12. Single Agreement Buyer and Seller acknowledge that. and have entered herein to and will enter into e,ach Transaction .hereunder in consideration of and in reliance upon the fact that, all Transactions hereunder constitute a single business and contractual relationship and have been made in consideration of each other. Accordingly. each of Buyer and Se!ler agrees (i) to periorm all of its obligations in respect of each Transaction hereunder, and that a default in the periormance of any such obligations shall constitute a defau~t by it in respect of all Transactions hereunder, (ii) that each of them shall be entitled to set off claims and apply píOperty held by them in respect of any Transaction against obligations owing to them in respect of any other Transactions hereunder and (iii) that payments, deliveries and other transfers made by either of them in respect of any Transaction shall be deemed to have been made in consideration of payments. deliveries and other transfers in respect of any other Transactions hereunder. and the obligations to make any such payments, deliveries and other transfers may be applied against each other and netted. 13. Notices and Other Communications Unless another address is specified in writing by the respective party to whom any notice or other com. munication is to be given hereunder, all such notices or communications shall be in writing or confirmed in writing and delivered at the respective addresses set forth in Annex II attached hereto. 14. Entire Agreement; Severability This Agreement shall supersede any existing agreements between the parties containing genera! terms and conditions for repurchase transactions. Each provision and agreement herein shall be treated as separate and independent from any other provision or agreement herein and shall be enforceable notw!thstanding the unenforceability of any such other provision or 'agreement. 15, Non-assignability; Termination The rights and obligations of the parries under this Agreement and under any Transaction shall not be assiçned by either pa:ty without the prior written consent of the other parry. Subject to the foregoing, this Agreement and any Transactions shall be binding upon and shall inure to the benefit of the parties and their respective SUCCessors and assigns. This Agreement may be cancelled by either party upòn giving written notice to the other, except that this Agreement shaH, notwithstanding such notice. remain applicable to any Transactions then outstanding. \ -. 32 i 6. Governing Law This Agreement shall be governed by the laws of the State of New York without giving effect to the conflict of law principles thereof. APPENDIX F 17. No Waivers, Etc. . No express or implied waiver of any Event of Default by either party shall constitute a waiver of any other Event of Default and no exercise of any remedy hereunder by any party shall constitute a waiver of its richt to exercise any other remedy hereunder. No modificatjon or waiver of any provision of this Agreement and -no cons.ent by any party to a departure herefrom shaIJ be effective unless and until such shall be in writing and duly executed by both of the parties hereto. Without limitation on any of the foregoing. the failure to give a notice pursuant to subparagraphs 4(a) or 4(b) hereof wiIJ not constitute a waiver of any right to do so at a later d~e. _ '18. . Use of Employee Plan Assets (a) If assets of an employee benefit plan subject to any provision of the Employee Retirement Income Security Act of 1974 ("ERISA") are intended to be used by either party hereto (the "Plan Party") in a Transaction. the Plan Party shaIJ so notify the other party prior to the Transaction. The Plan Party shaIJ represent in writing to the other party that the Transaction does not constitute aprohibited transaction under ERISA or is otherwise exempt therefrom, and the other party may proceed in reliance thereon but shaIJ not be required so to proceed. (b) Subject to the last sentence of subparagraph (a) of this Paragraph, any such Transaction shall proceed only if SeIJer furnishes or has furnished to Buyer its most recent available audited .statement of its financial condition and its most recent subsequent unaudited statement Of its financial condition. (c) By entering into a Transaction pursuant to this Paragraph, Seller shall be deemed (i) to represent to Buyer that since the date of Seller's latest such financial statements, there has been no material adverse change in Seller's financial condition which SeIJer has not disclosed to Buyer, and (ii) to agree to provide Buyer with future audited and unaudited statements of its financial condition as they are issued, so long as it is a SeIJer in any outstanding Transaction involving a Plan Party. 19. Intent (a) The parties recognize that each Transactio!! is a "repurchase agreement" as that term is defined in Section 101 of Title 11 of the United Sta:es Code, as amended (except insofar as the type of Securities subject to such Transaction or the term of such Transaction would render such definition inapplicable), anda "securities contract" as that term is defined in Section 741 of Title 11 of the United States Code, as amended. (b) It is understood that either party's right to liquidate Securities delivered to it in connection with Transactions "hereunder or to exercise any other remedies pursuant to Paragraph 11 hereof, is a con:ractual right to liquidate such Transaction as described in Sections 555 and 559 of Tille j 1 of the United S!a:es Code. as amended. 20. Disclosure Relating to Certain Federal Protections The parties acknowledge that they have been advised that: (a) in the case of Transactions in which one of the parties is a broker or dealer registered with the Securities and Exchange Commission ("SEC") under Section 15 of the Securities Exchange Act of 1934 ("1934 Act"), the Securities Investor Protection Corporation has taken the position that the provisions of the Securities Investor Protection Act of 19iO ("SIPA") do no: protect the other party with respect to any Transaction hereunder; . (b) in the case of Transactions in which one of the panies is a governmen: securities broker or a governrr¡ent securities dealer registered with the SEC under Section j 5C of the 1934 Act, SfPA will nol provide protection to the other pariy with respect to any Transaction hereunder; and (c) in the case of Transactions in which one of the parties is a financial institu:ion, funds held by the financial institution pursuant to a Transaction hereunder are not a deposit and therefore are not insured by the Federal Deposit InSl:Jfance Corporation, the Federal Savings and Loan Insurance Corporation or the National Credit Union Share Insurance Fund, as applicable. [Name of Party) [Name of Party) -. By By Title Title Date Date \ 33 " e e e Appendix G TEXAS GOVERNMENT CODE CHAPTER 2256. PUBLIC FUNDS INVESTMENT SUBCHAPTER A. AUTHORIZED INVESTMENTS FOR GOVERNMENTAL ENTITIES Sec. 2256.001. SHORT TITLE This chapter may be cited as the Public Funds Investment Act. Sec. 2256.002. DEFINITIONS. In this chapter: (1) "Bond proceeds" means the proceeds from the sale of bonds, notes, and other obligations issued by an entity, and reserves and funds maintained by an entity for debt service purposes. (2) "Book value" means the original acquisition cost of an investment plus or minus the accrued amortization or accretion. (3) "Funds" means public funds in the custody of a state agency or local government that: (A) are not required by law to be deposited in the state treasury; and (B) the investing entity has authority to invest. (4) "Institution of higher education" has the meaning assigned by Section 61.003, Education Code. (5) "Investing entity" and "entity" mean an entity subject to this chapter and described by Section 2256.003. (6) "Investment pool" means an entity created under this code to invest public funds jointly on behalf of the entities that participate in the pool and whose investment objectives in order of priority are: (A) preservation and safety of principal; (B) liquidity; and (C) yield. (7) "Local government" means a municipality, a county, a school district, a district or authority created under Section 52(b)(1) or (2), Article III, or Section 59, Article XVI, Texas Constitution, a fresh water supply district, a hospital district, 34 Appendix G and any political subdivision, authority, public corporation, body, politic, or instrumentality of the State of Texas, and any nonprofit corporation acting on behalf of any of those entities. (8) "Market value" means the current face or par value of an investment multiplied by the net selling price of the security as quoted by a recognized market pricing source premium or discount quoted on the valuation date. (9) "Pooled fund group" means an internally created fund of an investing entity in which one or more institutional accounts of the investing entity are invested. (10)"Qualified representative" means a person who holds a position with a business organization, who is authorized to act on behalf of the business organization, and who is one of the following: (A) for a business organization doing business that is regulated by or registered with a securities commission, a person who is registered under the rules of the National Association of Securities Dealers; (B) for a state or federal bank, a savings bank, or a state or federal credit union, a member of the loan committee for the bank or branch of the bank or a person authorized by corporate resolution to act on behalf of and bind the banking institution; 9F (C) for an investment pool, the person authorized by the elected official or board with authority to administer the activities of the investment pool to sign the written instrument on behalf of the investment pool.,.; or (D) for an investment manaqement firm reqistered under the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-1 et seq.) or, if not subject to reqistration under that Act. reqistered with the State Securities Board, a person who is an officer or principal of the investment manaqement firm. (11) "School district" means a public school district. (12) "Separately invested asset," means an account or fund of a state agency or local government that is not invested in a pooled fund group. (13) "State agency" means an office, department, commission, board, or other agency that is part of any branch of state government, an institution of higher education, and any nonprofit corporation acting on behalf of any of those entities. 35 ." e e e Appendix G Sec. 2256.003. AUTHORITY TO INVEST FUNDS; ENTITIES SUBJECT TO THIS CHAPTER. -'ªlEach governing body of the following entities may purchase, sell, and invest its funds and funds under its control in investments authorized under this subchapter in compliance with investment policies approved by the governing body and according to the standard of care prescribed by Section 2256.006: (1) a local government or municipality; (2) a state agency or a county; (3) a school district nonprofit corporation actinq on behalf of a local qovernment or a state aQencv; or (-1) a district or authority created under an investment pool actinq on behalf of two or more local qovernments. state aqencies. or a combination of those entities.;..:. (A1 Article III, Section 52(b)(1) or (2), of the Texas Constitution; or (8) Article XVI, Section 59, of the Texas Constitution; (5) an institution of higher education; (6) a hospital district; (6) a nonprofit corporation acting on behalf of a local governmont or a state agency an ontity listed in Subdivisions (1) through (6); or an invostment pool acting on behalf of t\\~0 or more local governments, state agencies, or a combination of those entities; (7) a public funds in'/estment pool croated undor Chapter 791 acting on behalf of a combination of entities listed in Subdivisions (1) through (6). (b) In the exercise of its powers under Subsection (a). the qoverninQ body of an investinq entity may contract with an investment manaqement firm reQistered under the Investment Advisers Act of 1940 (15 U.S.C. Section 80b-1 et seQ.) or with the State Securities Board to provide for the investment and manaqement of its public funds of other funds under its control. A contract made under authority of this subsection may not be for a term lonqer than two years. A renewal or extension of the contract must be made bv the qoverninq body of the investinq entity bv order. ordinance. or resolution. (c) This chapter does not prohibit an investinq entity or investment officer from usinq the entity's emplovees or the services of a contractor of the entity to aid the investment officer in the execution of the officer's duties under this chapter. 36 Appendix G Sec. 2256.004. APPLICABILITY. !ID.. This subchapter does not apply to: (1) a public retirement system as defined by Section 802.001; (2) state funds invested as authorized by Section 404.024; (3) an institution of higher education having total endowments of at least $95 million in book value on May 1, 1995; (4) funds invested by the Veterans' Land Board as authorized by Chapter 161, 162, or 164, Natural Resources Code; ef (5) a deferred compensation plan that qualifies under either Section '101 (k) or '157 of the Intern::JI Revenue Code of 1986 (26 U.S.C. Section 1 et seq.), as amended.ReQistrv funds deposited with the county or district clerk under Chapter 117. Local Government Code; or !§L~ a deferred compensation plan that qualifies under either Section 401 (k) or 457 or the Internal Revenue Code of 1986 (26 U.S.C. Section 1 et seq.), as amended. (b) This subchapter does not applv to an investment donated to an investinq entity for a particular purpose or under terms of use specified bv the donor. Sec.2256.005. INVESTMENT POLICIES; INVESTMENT STRATEGIES; INVESTMENT OFFICER. (a) The governing body of an investing entity shall adopt by rule, order, ordinance, or resolution, as appropriate, a written investment policy regarding the investment of its funds and funds under its control. (b) The investment policies must: (1) be written; (2) primarily emphasize safety of principal and liquidity; (3) address investment diversification, yield, and maturity and the quality and capability of investment management; and (4) include: 37 "- -_..~~ e e e Appendix G (A) a list of the types of authorized investments in which the investing entity's funds may be invested; (B) the maximum allowable stated maturity of any individual investment owned by the entity; (C) for pooled fund groups, the maximum dollar-weighted average maturity allowed based on the stated maturity date for the portfolio; (D) methods to monitor the market price of investments acquired with public funds; and (E) a requirement for settlement of all transactions, except investment pool funds and mutual funds, on a delivery versus payment basis. (c) The investment policies may provide that bids for certificates of deposit be solicited: (1) orally; (2) in writing; (3) electronically; or (4) in any combination of those methods. (d) As an integral part of an investment policy, the governing body shall adopt a separate written investment strategy for each of the funds or group of funds under its control. Each investment strategy must describe the investment objectives for the particular fund using the following priorities in order of importance: (1) understanding of the suitability of the investment to the financial requirements of the entity; (2) preservation and safety of principal; (3) liquidity; (4) marketability of the investment if the need arises to liquidate the investment before maturity; (5) diversification of the investment portfolio; and (6) yield. (e) The governing body of an investing entity shall review its investment policy and investment strategies not less than annually. The governing body shall adopt a written 38 Appendix G instrument by rule, order, ordinance, or resolution stating that it has reviewed the investment policy and investment strategies and that the written instrument so adopted shall record any changes made to either the investment policy or investment strategies. (f) Each investing entity shall designate, by rule, order, ordinance, or resolution, as appropriate, one or more officers or employees of the state agency, local government, or investment pool as investment officer or contract with an investment manaQement firm under Section 2256.003(b) to be responsible for the investment of its funds consistent with the investment policy adopted by the entity. If the QoverninQ body of an investinQ entity has contracted with another investinQ entity to invest its funds. the investment officer of the other investinQ entity is considered to be the investment officer of the first investinQ entity for purposes of this chapter. Authority granted to a porsonfiduciarv to invest an entity's funds is effective until rescinded by the investing entity~ 9f-until the expiration of the officer's term or the termination of the person's employment by the investing entity~ or if an investment manaQement firm. until the expiration of the contract with the investinQ entity. In the administration of the duties of an investment officer, the personfiduciarv designated as investment officer shall exercise the judgment and care, under prevailing circumstances, that a prudent person would exercise in the management of the person's own affairs. but the QoverninQ body of the investinQ entity retains ultimate responsibilitv as fiduciaries of the assets of the entity. Unless authorized by law, a person may not deposit, withdraw, transfer, or manage in any other manner the funds of the investing entity. (g) Subsection (f) does not apply to a state agency, local government, or investment pool for which an officer of the entity is assigned by law the function of investing its funds. (h) An officer or employee of a commission created under Chapter 391, Local Government Code, is ineligible to be designated as an investment officer under Subsection (f) for any investing entity other than for that commission. (i) An investment officer of an entity who has a personal business relationship with a business organization offering to engage in an investment transaction with the entity shall file a statement disclosing that personal business interest. An investment officer who is relate within the second degree by affinity or consanguinity, as determined under Chapter 573, to an individual seeking to sell an investment to the investment officer's entity shall file a statement disclosing that relationship. A statement required under this subsection must be filed with the Texas Ethics Commission and the governing body of the entity. For purposes of this subsection, an investment officer has a personal business relationship with a business organization if: (1) the investment officer owns 10 percent or more of the voting stock or shares of the business organization or owns $5,000 or more of the fair market value of the business organization; 39 .' Appendix G e (2) funds received by the investment officer from the business organization exceed 10 percent of the investment officer's gross income for the previous year; or (3) the investment officer has acquired from the business organization during the previous year investments with a book value of $2,500 or more for the personal account of the investment officer. U) The governing body of an investing entity may specify in its investment policy that any investment authorized by this chapter is not suitable. (k) A written copy of the investment policy shall be presented to any person offering to engage in an investment transaction with an investing entity or to an investment manaqement firm under contract with an investinq entity to invest or manaqe the entity's investment portfolio. For purposes of this subsection, a business organization includes investment pools and an investment manaqement firm under contract with an investinq entity to invest or manaqe the entity's investment portfolio. Nothing in this subsection relieves the investing entity of the responsibility for monitoring the investments made by the investing entity to determine that they are in compliance with the investment policy. The qualified representative of the business organization offering to engage in an investment transaction with an investing entity shall execute a written instrument in a form acceptable to the investing entity and the business e organization substantially to the effect that the business organization has: (1) received and reviewed the investment policy of the entity; and (2) acknowledged that the business organization has implemented reasonable procedures and controls in an effort to preclude investment transactions conducted between the entity and the organization that are not authorized by the entity's investment policy, except to the extent that this authorization is dependent on an analysis of the makeup of the entity's entire portfolio or requires an interpretation of subjective investment standards. (I) The investment officer of an entity may not acquire or otherwise obtain any authorized investment described in the investment policy of the investing entity from a person who has not delivered to the entity the instrument required by Subsection (k). (m) An investing entity other than a state aqencv, in conjunction with its annual financial audit, shall perform a compliance audit of management controls on investments and adherence to the entity's established investment policies. St3te 3gencios shall report tho rosults of tho 3udit performod under this subsoction to tho st3te auditor. Tho state 3uditor shall compile the results of reports received under this subsection 3nd 3nnually report those results to the legisl3tivo audit oommittee. e 40 Appendix G (n) Except as provided bv Subsection (0). at least once every two years a state aaencv shall arranqe for a compliance audit of manaaement controls on investments and adherence to the aaencv's established investment policies. The compliance audit shall be performed bv the aaencv's internal auditor or bv a private auditor emploved in the manner provided bv Section 321.020. Not later than January 1 of each even- numbered year. a state aqencv shall report the results of the most recent audit performed under this subsection to the state auditor. A state aaencv also shall report to the state auditor other information the state auditor determines necessary to assess compliance with laws and policies applicable to state aaencv investments. A report under this subsection shall be prepared in a manner the state auditor prescribes. (0) The audit requirements of Subsection (n) do not applv to assets of a state aQencv that are invested bv the comptroller under Section 404.024. Sec. 2256.006. STANDARD OF CARE. (a) Investments shall be made with judgment and care, under prevailing circumstances, that a person of prudence, discretion, and intelligence would exercise in the management of the person's own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived. Investment of funds shall be governed by the following investment objectives, in order of priority: (1) preservation and safety of principal; liquidity; ~md yiold. (2) liquiditv: and (3) vield. (b) In determining whether an investment officer has exercised prudence with respect to an investment decision, the determination shall be made taking into consideration: (1) the investment of all funds, or funds under the entity's control, over which the officer had responsibility rather than a consideration as to the prudence of a single investment; and (2) whether the investment decision was consistent with the written investment policy of the entity. Sec. 2256.007. INVESTMENT TRAINING: STATE AGENCY BOARD MEMBERS AND OFFICERS. 41 Appendix G e (a) Each member of the qoverninq board of a state aqencv and its investment officer shall attend at least one traininq session relatinq to the person's responsibilities under this chapter within six months after takinq office or assuminq duties. (b) The Texas Hiqher Education Coordinatinq Board shall provide the traininq under this section. (c) Traininq under this section must include education in investment controls. security risks. strateqv risks. market risks, diversification of investment portfolio. and compliance with this chapter. (d) An investment officer shall attend a traininq session not less than once in a two-year period and may receive traininq from any independent source approved bv the qoverninq body of the state aqencv. The investment officer shall prepare a report on this subchapter and deliver the report to the qoverninq body of the state aqencv not later than the 180th day after the last day of each reqular session of the leqislature. SectÏÐA:. 2256.008. INVESTMENT TRAINING; LOCAL GOVERNMENTS. (a) Except as provided bv Subsection (b), the +Re-treasurer, the chief financial officer if the treasurer is not the chief financial officer, and the investment officer of a local e government shall: (1) attend at least one training session under a curriculum approved bv the state auditor and containinq at least 10 hours of instruction relating to the treasurer's or officer's responsibilities under this subchapter within 12 months after taking office or assuming duties; and (2) except as provided bv Subsection (b). attend an investment training session not less than once in a two-year period and receive not less than 10 hours of instruction relating to investment responsibilities under this subchapter under a curriculum approved bv the state auditor and from ~m independent source approved by the governing body of the local government or a designated investment committee advising the investment officer as provided for in the investment policy of the local government. e (b) Training under this section must include education in investment controls, security risks, strategy risks, market risks and compliance with this chapterAn investinq entity created under authority of Section 52(b). Article III. or Section 59. Article XVI. Texas Constitution, that has contracted with an investment manaqement firm under Section 2256.003(b) and has fewer than five full-time emplovees or an investinq entity that has contracted with another investinq entity to invest the entity's funds may satisfy the traininq requirement provided bv Subsection (a)(2) bv havinq an officer of the qoverninq body attend four hours of appropriate instruction in a two-year period. 42 Appendix G (c) Traininq under this section must include education in investment controls. security risks. strateqv risks. market risks. diversification of investment portfolio. and compliance with this chapter. (d) Not later than December 31 each year. each individual. association. business. orqanization. qovernmental entity. or other person that provides traininq under this section shall report to the comptroller a list of the qovernmental entities for which the person provided required traininq under this section durinq that calendar year. An individual's reportinq requirements under this subsection are satisfied bv a report of the individual's em plover or the sponsorinq or orqanizinq entity of a traininq proqram or seminar. Sec.2256.009. AUTHORIZED INVESTMENTS: OBLIGATIONS OF, OR GUARANTEED BY GOVERNMENTAL ENTITIES. (a) Except as provided by Subsection (b), the following are authorized investments under this subchapter: (1) obligations of the United States or its agencies and instrumentalities; (2) direct obligations of this state or its agencies and instrumentalities; (3) 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; (4) other obligations, the principal and interest of which are unconditionally guaranteed or insured by, or backed by the full faith and credit of, this state or the United States or their respective agencies and its instru mentalities;-aAd (5) obligations of states, agencies, counties, cities, and other political subdivisions of any state rated as to investment quality by a nationally recognized investment rating firm not less than A or its equivalent:·: and (6) bonds issued. assumed. or quaranteed bv the State of Israel. (b) The following are not authorized investments under this section: (1) obligations whose payment represents the coupon payments on the outstanding principal balance of the underlying mortgage-backed security collateral and pays no principal; 43 · . e e e Appendix G (2) obligations whose payment represents the principal stream of cash flow from the underlying mortgage-backed security collateral and bears no interest; (3) collateralized mortgage obligations that have a stated final maturity date of greater than 10 years; and (4) collateralized mortgage obligations the interest rate of which is determined by an index that adjusts opposite to the changes in a market index. Sec. 2256.010. AUTHORIZED INVESTMENTS: CERTIFICATES OF DEPOSIT AND SHARE CERTIFICATES. A certificate of deposit is an authorized investment under this subchapter if the certificate is issued by a state or national bank domiciled in this state, a savings bank domiciled in this state, or a state or federal credit union domiciled in this state and is: (1) guaranteed or insured by the Federal Deposit Insurance Corporation or its successor or the National Credit Union Share Insurance Fund or its successor; (2) secured by obligations that are described by Section 2256.009(a), including mortgage backed securities directly issued by a federal agency or instrumentality that have a market value of not less than the principal amount of the certificates, but excluding those mortgage backed securities of the nature described by Section 2256.009(b); or (3) secured in any other manner and amount provided by law for deposits of the investing entity. Sec. 2256.011. AUTHORIZED INVESTMENTS: REPURCHASE AGREEMENTS. (a) A fully collateralized repurchase agreement is an authorized investment under this subchapter if the repurchase agreement: (1) has a defined termination date; (2) is secured by obligations described by Section 2256.009(a)ill, and (3) requires the securities being purchased by the entity to be is pledged to the entity, held in the entity's name, and deposited at the time the investment is made with the entity or with a third party selected and 9F-approved by the entity; and 44 Appendix G (4) is placed through a primary government securities dealer, as defined by the Federal Reserve, or a financial institution doing business in this state a bank domiciled in this: s:tate. (b) In this section, "repurchase agreement" means a simultaneous agreement to buy, hold for a specified time, and sell back at a future date obligations described by Section 2256.009(a)(1), at a tho principal and interest of which are guaranteed by tho United Statos in market value at the time the funds are disbursed of not less than the principal amount of the funds disbursed. The term includes a direct security repurchase agreement and a reverse security repurchase agreement. (c) Notwithstanding any other law, the term of any reverse security repurchase agreement may not exceed 90 days after the date the reverse security repurchase agreement is delivered. (d) Money received by an entity under the terms of a reverse security repurchase agreement shall be used to acquire additional authorized investments, but the term of the authorized investments acquired must mature not later than the expiration date stated in the reverse security repurchase agreement. Sec. 2256.012. AUTHORIZED INVESTMENTS: BANKER'S ACCEPTANCES. A bankers' acceptance is an authorized investment under this subchapter if the bankers' acceptance: (1) has a stated maturity of 270 days or fewer from the date of its issuance; (2) will be, in accordance with its terms, liquidated in full at maturity; (3) is eligible for collateral for borrowing from a Federal Reserve Bank; and (4) is accepted by a bank organized and existing under the laws of the United States or any state, if the short-term obligations of the bank, or of a bank holding company of which the bank is the largest subsidiary, are rated not less than A-1 or P-1 or an equivalent rating by at least one nationally recognized credit rating agency. Sec. 2256.013. AUTHORIZED INVESTMENTS: COMMERCIAL PAPER. Commercial paper is an authorized investment under this subchapter if the commercial paper: (1) has a stated maturity of 270 days or fewer from the date of its issuance; and (2) is rated not less than A-1 or P-1 or an equivalent rating by at least: 45 " e e e Appendix G (A) two nationally recognized credit rating agencies; or (B) one nationally recognized credit rating agency and is fully secured by an irrevocable letter of credit issued by a bank organized and existing under the laws of the United States or any state. Sec. 2256.014(a). AUTHORIZED INVESTMENTS: MUTUAL FUNDS. (a) A no-load money market mutual fund is an authorized investment under this subchapter if the mutual fund: (1) is registered with and regulated by the Securities and Exchange Commission; (2) provides the investing entity with a prospectus and other information required by the Securities Exchange Act of 1934 (15 U.S.C. Section 78a et seq.) or the Investment Company Act of 1940 (15 U.S.C. Section 80a- 1 et seq.); (3) has a dollar-weighted average stated maturity of 90 days or fewer; and (4) includes in its investment objectives the maintenance of a stable net asset value of $1 for each share. (b) In addition to a no-load money market mutual fund permitted as an authorized investment in Subsection (a), a no-load mutual fund is an authorized investment under this subchapter if the mutual fund: (1) is registered with the Securities and Exchange Commission; (2) has an average weighted maturity of less than two years; (3) is invested exclusively in obligations approved by this subchapter; (4) is continuously rated as to investment quality by at least one nationally recognized investment rating firm of not less than AAA or its equivalent; and (5) conforms to the requirements set forth in Sections 2256.016(b) and (c) relating to the eligibility of investment pools to receive and invest funds of investing entities. (c) An entity is not authorized by this section to: 46 Appendix G (1) invest in the aggregate more than 0015 percent of its monthly average fund balance, excluding bond proceeds and reserves and other funds held for debt service, in money market mutual funds described in Subsection (a) or mutual funds described in Subsection (b), oither sepmately or collectively; (2) invest in the aggregate more than 15 percent of its monthly average fund balanco, excluding bond procoods and reserves and othor funds held for debt service, in mutual funds described in Subsection (b); (ð1 invest any portion of bond proceeds, reserves and funds held for debt service, in mutual funds described in Subsection (b); or (41illinvest its funds or funds under its control, including bond proceeds and reserves and other funds held for debt service, in anyone mutual fund described in Subsection (a) or (b) in an amount that exceeds 10 percent of the total assets of the mutual fund. Sec. 2256.015. AUTHORIZED INVESTMENTS FOR STATE ^GENCIES~ GUARANTEED INVESTMENT CONTRACTS. (a) A guaranteed investment contract is an authorized investment for state agencies for bond proceeds under this subchapter if the guaranteed investment contract: (1) has a defined termination date; (2) is secured by obligations described by Section 2256.009(a)(1), excluding those obligations described by Section 2256.009(b), in an amount at least equal to the amount of bond proceeds invested under the contract; and (3) is pledged to the entity and deposited with the entity or with a third party selected and approved by the entity. (b) Bond proceeds, other than bond proceeds representing reserves and funds maintained for debt service purposes, may not be invested under this subchapter in a guaranteed investment contract with a term of longer than five years from the date of issuance of the bonds. (c) To be eligible as an authorized investment: (1) the governing body of the entity must specifically authorize guaranteed investment contracts as an eligible investment in the order, ordinance, or resolution authorizing the issuance of bonds; 47 e e e . . Appendix G (2) the entity must receive bids from at least three separate providers with no material financial interest in the bonds from which proceeds were received; (3) the entity must purchase the highest yielding guaranteed investment contract for which a qualifying bid is received; (4) the price of the guaranteed investment contract must take into account the reasonably expected drawdown schedule for the bond proceeds to be invested; and (5) the provider must certify the administrative costs reasonably expected to be paid to third parties in connection with the guaranteed investment contract. Sec. 2256.016. AUTHORIZED INVESTMENTS: INVESTMENT POOLS. (a) An entity may invest its funds and funds under its control through an eligible investment pool if the governing body of the entity by rule, order, ordinance, or resolution, as appropriate, authorizes investment in the particular pool. An investment pool shall invest the funds it receives from entities in authorized investments permitted by this subchapter. (b) To be eligible to receive funds from and invest funds on behalf of an entity under this chapter, an investment pool must furnish to the investment officer or other authorized representative of the entity an offering circular or other similar disclosure instrument that contains, at a minimum, the following information: (1) the types of investments in which money is allowed to be invested; (2) the maximum average dollar-weighted maturity allowed, based on the stated maturity date, of the pool; (3) the maximum stated maturity date any investment security within the portfolio has; (4) the objectives of the pool; (5) the size of the pool; (6) the names of the members of the advisory board of the pool and the dates their terms expire; (7) the custodian bank that will safekeep the pool's assets; 48 Appendix G (8) whether the intent of the pool is to maintain a net asset value of one dollar and the risk of market price fluctuation; (9) whether the only source of payment is the assets of the pool at market value or whether there is a secondary source of payment, such as insurance or guarantees, and a description of the secondary source of payment; (10) the name and address of the independent auditor of the pool; (11) the requirements to be satisfied for an entity to deposit funds in and withdraw funds from the pool and any deadlines or other operating policies required for the entity to invest funds in and withdraw funds from the pool; and (12) the performance history of the pool, including yield, dollar-weighted average maturities, and expense ratios. (c) To maintain eligibility to receive funds from and invest funds on behalf of an entity under this chapter, an investment pool must furnish to the investment officer or other authorized representative of the entity: (1) investment transaction confirmations; and (2) a monthly report that contains, at a minimum, the following information: (A) the types and percentage breakdown of securities in which the pool is invested; (B) the current dollar-weighted average maturity, based on the stated maturity date, of the pool; (C) the current percentage of the pool's portfolio in investments that have stated maturities of more than one year; (0) the book value versus the market value of the pool's portfolio, using amortized cost valuation; (E) the size of the pool; (F) the number of participants in the pool; (G) the custodian bank that is safekeeping the assets of the pool; 49 e ,e e Appendix G (H) a listing of daily transaction activity of the entity participating in the pool; (I) the yield and expense ratio of the pool; (J) the portfolio managers of the pool; and (K) any changes or addenda to the offering circular. (d) An entity by contract may delegate to an investment pool the authority to hold legal title as custodian of investments purchased with its local funds. (e) In this section, "yield" shall be calculated in accordance with regulations governing the registration of open-end management investment companies under the Investment Company Act of 1940, as promulgated from time to time by the federal Security and Exchange Commission. (f) To be eligible to receive funds from and invest funds on behalf of an entity under this chapter, a public funds investment pool created to function as a money market mutual fund must mark its portfolio to market daily, and, to the extent reasonably possible, stabilize at a $1 net asset value. If the ratio of the market value of the portfolio divided by the book value of the portfolio is less than 0.995 or greater than 1.005, portfolio holdings shall be sold as necessary to maintain the ratio between 0.995 and 1.005. (g) To be eligible to receive funds from and invest funds on behalf of an entity under this chapter, a public funds investment pool must have an advisory board composed: (1) equally of participants in the pool and other persons who do not have a business relationship with the pool and are qualified to advise the pool, for a public funds investment pool created under Chapter 791 and managed by a state agency; or (2) of participants in the pool and other persons who do not have a business relationship with the pool and are qualified to advise the pool, for other investment pools. (h) To maintain eligibility to receive funds from and invest funds on behalf of an entity under this chapter, an investment pool must be continuously rated no lower than AAA or AAA-m or at an equivalent rating by at least one nationally recognized rating service. Sec.2256.017. EXISTING INVESTMENTS. An entity is not required to liquidate investments that were authorized investments at the time of purchase. 50 Appendix G Sec. 2256.018. ADVISORY BOARD OF INVESTMENT POOLS. (a) An investment pool other than a pool described by Subsection (b) shall establish an advisory board composed of participants in the pool and other persons. (b) A public funds investment pool created under Chapter 791and managed by a state agency shall establish an advisory board composed equally of participants in the pool and other persons who do not have a business relationship with the pool. A board member must be qualified to advise the pool. Sec. 2256.019. RATING OF CERTAIN INVESTMENT POOLS. A public funds investment pool must be continuously rated no lower than AAA or AAA-m or at an equivalent rating by at least one nationally recognized rating service or no lower than investment grade by at least one nationally recognized rating service with a weighted average maturity no greater than 90 days. Sec. 2256.020. AUTHORIZED INVESTMENTS: INSTITUTIONS OF HIGHER EDUCATION. In addition to the authorized investments permitted by this subchapter, an institution of higher education may purchase, sell, and invest its funds and funds under its control in the following: (1) cash management and fixed income funds sponsored by organizations exempt from federal income taxation under Section 501 (f), Internal Revenue Code of 1986 (26 U.S.C. Section 501 (f»; (2) negotiable certificates of deposit issued by a bank that has a certificate of deposit rating of at least 1 or the equivalent by a nationally recognized credit rating agency or that is associated with a holding company having a commercial paper rating of at least A-1, P-1, or the equivalent by a nationally recognized credit rating agency; and ~illcorporate bonds, debentures, or similar debt obligations rated by a nationally recognized investment rating firm in one of the two highest long- term rating categories, without regard to gradations within those categories. Sec.2256.021. EFFECT OF LOSS OF REQUIRED RATING. An investment that requires a minimum rating under this subchapter does not qualify as an authorized investment during the period the investment does not have the minimum rating. An entity shall take all prudent measures that are consistent with its investment policy to liquidate an investment that does not have the minimum rating. 51 e e e Appendix G Sec. 2256.022. EXPANSION OF INVESTMENT AUTHORITY. Expansion of investment authority granted by this chapter shall require a risk assessment by the state auditor or performed at the direction of the state auditor. Section 2256.023. INTERNAL MANAGEMENT REPORTS. (a) Not less than quarterly, the investment officer shall prepare and submit to the governing body of the entity a written report of investment transactions for all funds covered by this chapter for the preceding reporting period. (b) The report must: (1) describe in detail the investment position of the entity on the date of the report; (2) be prepared jointly by all investment officers of the entity; (3) be signed by each investment officer of the entity; (4) contain a summary statement, prepared in compliance with generally accepted accounting principles, of each pooled fund group that states the: ' (A) beginning market value for the reporting period; (B) additions and changes to the market value during the period; (C) ending market value for the period; and (D) fully accrued interest for the reporting period; (4) state the book value and market value of each separately invested asset at the beginning and end of the reporting period by the type of asset and fund type invested; (5) state the maturity date of each separately invested asset that has a maturity date; (6) state the account or fund or pooled group fund in the state agency or local government for which each individual investment was acquired; and (7) state the compliance of the investment portfolio of the state agency or local government as it relates to: 52 Appendix G (A) the investment strategy expressed in the agency's or local government's investment policy; and (B) relevant provisions of this chapter. (d) If an entity invests in other than money market mutual funds, investment pools or accounts offered by its depository bank in the form of certificates of deposit, or money market accounts or similar accounts, the reports prepared by the investment officers under this section shall be formally reviewed at least annually by an independent auditor, and the result of the review shall be reported to the governing body by that auditor. Sec. 2256.024. SUBCHAPTER CUMULATIVE. (a) The authority granted by this subchapter is in addition to that granted by other law. Except as provided by Subsection (b), this subchapter does not: (1) prohibit an investment specifically authorized by other law; or (2) authorize an investment specifically prohibited by other law. (b) Except with respect to those investing entities described in Subsection (c), a security described in Section 2256.009(b) is not an authorized investment for a state agency, a local government, or another investing entity, notwithstanding any other provision of this chapter or other law to the contrary. (c) Mortgage pass-through certificates and individual mortgage loans that may constitute an investment described in Section 2256.009(b) are authorized investments with respect to the housing bond programs operated by: (1) the Texas Department of Housing and Community Affairs or a nonprofit corporation created to act on its behalf; (2) an entity created under Chapter 392, Local Government Code; or (3) an entity created under Chapter 394, Local Government Code. Sec. 2256.025. SELECTION OF AUTHORIZED BROKERS. The governing body of an entity subject to this subchapter or the designated investment committee of the entity shall, at least annually, review, revise, and adopt a list of qualified brokers that are authorized to engage in investment transactions with the entity. 53 e e - t . Appendix G Sec. 2256.026. STATUTORY COMPLIANCE. All investments made by entities must comply with this subchapter and all federal, state, and local statutes, rules, or regulations. SUBCHAPTER B. MISCELLANEOUS PROVISIONS Sec. 2256.051. ELECTRONIC FUNDS TRANSFER. Any local government may use electronic means to transfer or invest all fund collected or controlled by the local government. Sec.2256.052. RULES GOVERNING INVESTMENT. Each state agency or political subdivision shall adopt rules governing the investment of its local funds, including rules specifying the scope of authority of officers and employees designated to invest local funds. Sec.2256.053. INVESTMENT RATE OF RETURN. A state agency, political subdivision, or investment pool shall invest its local funds in investments that: (1) yield the highest possible rate of return; (2) protect the principal; and (3) are consistent with the operating requirements of the agency, subdivision, or pool as determined by the governing body. Sec. 2256.054. DESIGNATION OF INVESTMENT OFFICER. (a) Each state agency or political subdivision shall designate, by rule, order, ordinance, or resolution, one or more officers or employees of the agency, subdivision, or investment pool to be responsible for the investment of its local funds. (b) Subsection (a) does not apply if an officer of the agency or subdivision is assigned by law the function of investing its local funds. (c) An officer or employee of a commission created under Chapter 391, Local Government Code, is ineligible to be designated as an investment officer under Subsection (a). Sec. 2256.055. EXPRESS AUTHORITY REQUIRED. A person may not deposit, withdraw, invest, transfer, or manage in any other manner local funds of a state agency or political subdivision without express written authority of the governing body or chief executive officer of the agency or subdivision. 54 Appendix G Sec. 2256.056. LEGAL TITLE IN INVESTMENT POOL. A political subdivision by contract may delegate to an investment pool the authority to hold legal title as custodian of investments purchased with its local funds. Sec.2256.058. PRIVATE AUDITOR. Notwithstanding any other law, a state agency shall employ a private auditor if authorized by the legislative audit committee either on the committee's initiative or on request of the governing body of the agency. Sec. 2256.059. EFFECT OF OTHER LAW. This subchapter does not: (1) prohibit an investment specifically authorized by other law; or (2) authorize an investment specifically prohibited by other law. Sections 2256.060-2256.100 reserved for expansion SUBCHAPTER C. PAYMENT FOR AND DELIVERY AND DEPOSIT OF SECURITIES PURCHASED BY STATE . Sec.2256.101. AUTHORIZED INVESTMENTS; APPLICATION OF INCOME. (a) A board or agency of the state that may direct the investment of funds of the board or agency may invest those funds in: (1) direct obligations of the United States; (2) obligations the principal and interest of which are guaranteed by the United States; (3) direct obligations of or participation certificates guaranteed by: (A) a farm credit bank; (B) the Federal National Mortgage Association; (C) a federal home loan bank; or (D) a bank for cooperatives; 55 e e - , ,.. Appendix G (4) certificates of deposit of a bank or trust company, the deposits of which are fully secured by a pledge of securities described by Subdivisions (1) through (3); (5) other securities made eligible for investment by other law or the constitution; or (6) a combination of securities described by Subdivisions (1) through (5). (b) The board or agency shall direct the application of income from investments under this section. Sec.2256.102. PAYMENT FOR SECURITIES PURCHASED BY STATE. The comptroller, the state treasurer, or the disbursing officer of an agency that has the power to invest assets directly may pay for authorized securities purchased from or through a member in good standing of the National Association of Securities Dealers or from or through a national or state bank on receiving an invoice from the seller of the securities showing that the securities have been purchased by the board or agency and that the amount to be paid for the securities is just, due, and unpaid. A purchase of securities may not be made at a price that exceeds the existing market value of the securities. Sec. 2256.103. DELIVERY OF SECURITIES PURCHASED BY STATE. A security purchased under this chapter Section 2256.102 may be delivered to the state treasurer, a bank, or the board or agency investing its funds. The delivery shall be made under normal and recognized practices in the securities and banking industries, including the book entry procedure of the Federal Reserve Bank. Sec. 2256.104. DEPOSIT OF SECURITIES PURCHASED BY STATE. At the direction of the state treasurer or the agency, a security purchased under this chapter Section 2256.102 may be deposited in trust with a bank or Federal Reserve Bank or branch designated by the treasurer, whether in or outside the state. The deposit shall be held in the entity's name as evidenced by a trust receipt of the bank with which the securities are deposited. Sec. 2256.056. COMPLIANCE WITH OTHER LAWS. Notwithstanding any other law, a municipality with a population of less than 50,000 may not issue for any purpose or cause to be issued in its behalf any installment sale obligation or lease-purchase obligation having the principal amount of $1 million or more without complying with the provisions of Section 3.002, Chapter 53, Acts of the 70th Legislature, 2nd Called Session, 1987 (Article 717k-8, Vernon's Texas Civil Statutes), regardless of whether the obligation was issued individually or in a series of related transactions, or whether the obligation was issued with no recourse to the local government. 56 - --..-..-----.-- , ,. e e It Appendix H RESOLUl'ION NO. 90-04 WHEREAS, the City of North Richland Hills is an agency or political subdivision of the State of Texas (the "Participant") and is e.mpowered to delegate to a public funds investment pool the authority to invest funds and to act as custodian of investments purchased with local investment funds; and WHEREAS, it is in the best interest of the Participant and its inhabitants to invest local funds in investments that yield the highest possible rate of return while providing necessary safekeeping and protection of the principal; and WHEREAS, the Treasurer of the State of Texas acting by and through the Texas Treasury Safekeeping Trust Company (the 1ITrust Canpany") has created 1ITexPooI ", a public funds investJœnt pool to effectuate the goals of providing investments at the highest possible yield and maintaining cœplete safety of the funds of the Participant, NJW THEREFORE, be it resolved as follows: 1. That the City of North Richland Hills establish an account in its name with the Trust Canpany' s Public Funds Investment Pool "TexPool" for the purpose of transmitting local funds for investment by the Trust Caopany in TexPool. 2. That the following individuals whose signatures appear below are officers or employees of the Participant and are each hereby authorized to transmit fmlds to the TJ::ust Canpany for investment in TexPool and are each further authorized to withdraw f1.mds fran ti1re to time, to issue letters of instruction, and to take all other actions deemed necessary . or appropriate for the investrnent of local funds: Name: Lee Maness Title: Director of Finance Signature: ~ 711~ Name: Jim Cook Title: Asst. Director of Finance Signature: 9,;.--- z;¿~ Name: Camelia Fisher Title: Senior Staff Accmmtant Signature: ~.L:" "-~ 'i'i CITY OF NORTH RICHLAND HILLS Appendix H ~. Department: Finance Council Meeting Date: 3/25/96 Subject: Allthnri7ino P=:Irtir.ip=:ltinn in thp. I n("~1 ~nvp.rnmp.nt Agenda Number: Investment Cooperative (LOGIC), Resolution No. 96-19 GN ~R-~R Fundamental goals of the City's investment policy include diversification and liquidity within a prudent framework of safety and market rate of return. In an effort to enhance these efforts, the Investment Committee has recommended that the City invest a portion of available short term funds with Local Government Investment Cooperative (LOGIC). The City currently utilizes Texpool as the primary investment tool of the portfolio matching this short term criteria. The intent of the Committee is that a portion of the portfolio currently invested in Texpool would be transferred to LOGIC, an investment pool of political subdivisions of the State of Texas, administered by Southwest Securities. . .' LOGIC has a rating of AAA, and all funds invested can be withdrawn on a daily basis. As of March 1, 1996, a total of seventy-six cities, counties and school districts had over $725 million invested at LOGIC. To invest in LOGIC, the City must enter into an interlocal agreement with the other participants of the Investment Cooperative. Recommendation: It is recommended that Resolution No. 96- 19 be approved. /.~fé~h~~ ;:::~~.~~ 3USJECT: _ _ -b2 f=f~_ r '~0UNCiL ACTION: APPROVED 0 DI:';,\Pf't<OVED COMMENTS' Finance Review Source of Funds: Bonds (GO/Rev.) Operating Budget _ rnher~ ~ D partment Head Signature '-- CITY COUNCIL ACTION ITEM 56 ---I Page 1 of .. (. ¡.- I'·· I I . It Appendix H Resolution 96-19 Local Government Investment Cooperative Resolution RESOLUTION APPROVING AND AUTHORlZING EXECUTION OF AN INTERLOCAL AGREEMENT FOR PARTICIPATION IN A PUBUC FUNDS INVESThŒNT COOPERATIVE (THE ·COOPERATIVE-), DESIGNATING THE BOARD OF DIRECfORS OF THE COOPERATIVE AS AN AGENCY AND INSTRUMENTALITY TO SUPERVISE THE COOPERATIVE, APPROVING INVESTMENT POLICIES OF THE COOPERATIVE, APPOINTING AUTHORIZED REPRESENTATIVES AND DESIGNATING INVESTMENT OFFICERS WHEREAS, the InterlocaI Cooperation Act, Chapter 791 of the Texas Government Code, as amended (the -Interloca1 Act-), permits any -local government- to contract with one or more other -local governments- to perform -governmental functions and services, - including investment of public funds (as such phrases are defined in the Interlocal Act); WHEREAS. the Interlocal Act authorizes the contracting parties to any interlocal agre::ment to contract with agencies of the State of Texas, within the meaning of Chapter 771 of the Government Code, WHEREAS. the Act permits the contracting parties to any interloca1 agreement to create an administrative agency to supervise the perfonnance of such interlocal agreement and to employ personnel and enpge in other administrative activities and provide other administrative services necessary to execute the terms of such interlocal agreement; WHEREAS, the Public Funds Investment Act, Chapter 2256 of the Texas Government Code, as amended (the ·PFIA .). authorizes the entities described in Subsection (a) of the PFIA to invest their funds in an eligible public funds investment pool, and the intends to . become and remain an eligible public funds investment pool, under the terms and conditions set forth in PFlA; WHEREAS City of North Richland Hills , (the -Government Entity-) desires to enter into that certain Interloca1 Agreement (the - Agreement-), a copy of which is presented with this Resolution and is incorporated hereLTl by reference, and to become a participant in a public funds investment pool created thereunder and under PRA, to be known as Local Government Investment Cooperative (the ·Cooperative-); . WHEREAS, the Government Entity is a Government Entity as defIned in the Agreement; and -1- ResolutiOG 57 4, .' . Appendix H WHEREAS, the Government Entity desires to cause administration of the Cooperative to be performed by a board of directors (the -Board-), which shall be an administrative agency created under the Interlocal Act; and . WHEREAS, the Government Entity desires to designate the Board as its aaency and instrumentality with authority to supervise performance of the Agre=ment, employ per;'nnel and engage in other administrative activities and provide other administrative services necessary to execute the terms of the Agreement; WHEREAS, each capitalized tenn used in this Resolution and not otherwise defined has the same meaning assigned to it in the Agreement; NOW, THEREFORE, BE IT RESOLVED: 1. The Agreement is hereby approved and adopted and, upon execution thereof by an Authorized Representative (defined below) and receipt of the Government Entity's application to join the Cooperative by the Administrator, the Government Entity shall become a Participant in the Cooperative for the purpose of investing its available funds therein from time to time in accordance with its terms. 2. The Board is hereby designated as an agency and instrumentality of the Government Entity, and the Board shall have the authority to supervise performance of the Agreement and the Cooperative, employ personnel and engage in other administrative activities and provide other administrative services necessary to execute the terms of the Agreement. 3. The investment policies of the Cooperative, as set forth in the document entitled Investment Policies, as summarized in the Information Statement, and as may be amended from time to time by the Board, are hereby adopted as investment policies of the Government Entity with respect to money invested in the Cooperative, and any existing investment policies of the Government Entity in conflict therewith shall not apply to investments in the Cooperative. 4. The following officers, offlCials or employees of the Government Entity are hereby designated as -Authorized Representatives- within the meaning of the Agreement, with fun power and authority to: execute the Agreement, an application to join the Cooperative and any other documents required to become a Participant; dcposit money to and withdraw money from the Government Entity's Cooperative account from time to time in accordance with the Agreement and the Information Statement; and take all other actions deemed necessary or appropriate for the investment of funds of the Government Entity: -2- RaolutiOQ 58 ~ 4. ,.. . e It Appendix H Signature: U--~ Printed Name: Bret Starr Title: Accountant Signature: Printed Name: Jackie Theriot Title: Accounting Manager --'),..... .~.I ~ ;~ , Si¡nature: (££iØ>¿~Ç.::'~/t~/ /~ Printed Name: Charles Harris Title: Finance Director In accordance with Cooperative procedures, an Authorized Representative shall promptly notify the Cooperative in writing of any changes in who is serving as Authorized Representatives. ,. In addition to the fore¡oin¡ Authorized Representatives, each Investment Officer of the C~perative appointed by the Board from time to time is hereby designated as an investment officer of the Government Entity and, as such, shall have responsibility for investing the share of Cooperative assets representing funds of the Government Entity. Each depository and custodian appointed by the Board from time to time are hereby designated as a depository and custodian of the Government Entity for purposes of holding the share of Cooperative assets representing funds of the Government Entity. PASSED AND APPROVED this 25 day of March , 19~. ATŒST: By: ~-/~¿<~' Jeanette Rewis, City Secretary Printed name and title B~L- ~~~ -/ ~Brown, Mayor Printed Name and Title SEAL -3- R.uoIIIIioa . 59 '\ t I - Appendix H Additional Party Agreement The Government Entity of the State of Texas named below, acting by and throuah o. the undersigned Authorized Representative, hereby agrees to become a party to that certain Interlocal Agreement to which this page is attached, and thereby become a Participant in the Local Government Investment Cooperative, subject to all of the terms and provisions of such Agreement. The undersigned hereby represents that it is a Government Entity as defined in such Agreement. Executed this 25t1tlayof March , 1996. _ Ciry nf NnTrn Ri~nl~~ñ Hill~ Name of Government Entity By:~$ ~~-/ AUthOriz~epresentative Tammv Brown. Mavor Printed Name and Title ACCEPTED: Local G~, ent Investment Cooperative By: ~cL~~u If.f~ LOG C Administrator PATRICK SHINKLE, V.P. Printed Name and Title -10- Interlocal A¡reement 60 ¥ I) ~ . . . Appendix I GLOSSARY Aaencies: Orqanizations formed bv the Federal Government but not directlv controlled bv the Government. Each aqenCV is authorized to issue its own securities. which are comparable to Treasury Notes. Bills. and Bonds. Book Value: The value of a security as stated in the City's qeneral ledqer. This is qenerallv the purchase price plus any amortized discount or less any amortized premium. Bullet Aaencv: An aqenCV security that contains no call provision. Interest is paid until the investment matures. Callable: Describes a fixed income security containinQ a provision that allows the issuer to redeem the security for a fixed price on a certain date or a ranqe of dates. Bonds are usuallv called when interest rates fall so siqnificantlv that the issuer can save money bv issuinQ new bonds at lower rates. Certificate of Deposit (CD): A time deposit issued bva bank that quarantees a specified interest rate for a specified time for the amount of the certificate. Commercial Paper: Short-term unsecured promissory notes issued bv larqe corporations with maturities ranqinq from two to 270 days. CUSIP: Committee on Uniform Securities Identification Procedures. This committee assiQns identifvinq numbers and codes for all securities. The identifvinq number itself is often referred to a its "CUSIP". Discount: The amount paid below a fixed income security's par (maturitv) value. Discount Notes: Short-term securities issued bv Qovernment aqencies that are sold at a discounted price and redeemed at full value upon maturity. The difference between the purchase price and maturity value is the investment's interest income. Federal Funds Rate: Interest rate charqed bv banks with excess reserves at a Federal Reserve district bank to banks needinq overniqht loans to meet reserve requirements. 11 is the most sensitive indicator of the direction of interest rates. since it is set dailv bv the market. FFCB: (Federal Farm Credit Bank) a U. S. Government Aqencv that issues securities. 61 Appendix I FHLB: (Federal Home Loan Bank) a U. S. Government AQencv that issues securities. FHLMC: (Federal Home Loan MortQaQe Corporation. or Freddie Mac) a U. S. Government AQencv that issues securities. FNMA: (Federal National MortQaQe Association. or Fannie Mae) a U. S. Government Aaencv that issues securities. Flex Repos: A Flexible Repurchase aQreement is a type of structured Repo that allows portions of the invested amount to be withdrawn under specified conditions before the maturity of the Repo. This type of transaction is useful for the investment of construction funds. where the size and timinQ of payments are somewhat predictable. Inverted Yield Curve: An unusual situation where short-term interest rates are hiaher than lona-term rates. This usuallv occurs when a surQe in demand for short-term credit drives UP short-term rates on T -bills and money-market funds. while lona-term rates move up more slowlv. LOGIC: (Local Government Investment Cooperative) a privatelv manaaed investment pool administered bv Southwest Securities with a structure similar to Texpool. Market Value: The value of a security if it was sold for cash at a Qiven date. Maturitv Value: The amount received for an investment at its maturity. not includinQ coupon interest. Also known as par value. Net Asset Value: A term used to indicate the market value of one dollar invested in the portfolio at a Qiven date. This measure shows the aQQreaate value of the portfolio instead of comparina the Qain or loss of any Qiven investment in the portfolio. Public Funds Investment Act: Also known as Chapter 2256 of the Texas Government Code. This law is the primary leQislation reaardina the proper investment Quidelines for political subdivisions in the State of Texas. A COpy of this act is included in the appendices of the City's Investment Policv. Purchased Interest: An additional amount paid for a fixed income security when the investment is purchased in the secondary market on a date other than the coupon payment date. The additional amount paid represents the seller's accrued interest on the investment since the last coupon date. The buyer recovers any purchased interest and realizes interest income for the period he owns the investment on the next coupon payment date. 62 .. f J ,.' . . - . Appendix I Premium: The amount paid above a fixed income security's par (maturitv) value. Repurchase Aareements (Repos): AQreements where the City purchases an investment with an aQreement to resell the investment to the same firm at a specific date for a specific price. The difference between the purchase price and the sale price represents interest earned on the transaction. Repos can be established for any Qiven size and maturity. Return on Investment (ROn: The amount of money earned on a qiven amount of investments for a specified period of time. Texpool: An investment pool administered bv First Southwest and Texas Commerce Bank. Funds from political subdivisions of Texas are deposited with Texpool and invested as a sinQle portfolio to earn hiQher levels of interest income. Treasury Bills (T -Bills): Short term securities sold bv the federal qovernment. Thev have a maturity of one year or under. and are similar to discount notes. Treasury Notes: Securities issued bv the federal Qovernment with maturities between 1 and 10 years. Interest is paid in semi-annual coupons until maturity. Unrealized Gain (Loss): The difference between the price paid for an investment plus or minus any unamortized discount or premium and the proceeds that would be realized if the investment were to be sold on a specific date. Weiahted Averaae Maturitv (WAM): A measure of the averaQe lenQth until maturity for the investment portfolio based on the number of days until maturity for each investment weiQhted bv the dollar value of each investment. Yield Curve: A Qraphical representation of the principal that the market for investments with lonqer maturities demand a hiqher vield due to qreater uncertainty in the financial environment than do shorter term investments. The vield curve is tvpicallv upward slopinQ but varies Qreatlv in shape and steepness based on economic and political factors. Yield to Call (YTC): The percentaQe rate of a bond or note if the investor buys and holds the security until the call date. This vield is valid onlv if the security is called prior to maturity. Generallv. bonds are callable over several years and normallv are called at a sliQht premium. The calculation of vield to call is based on coupon rate. lenQth of time to call. and market price. 63 "" .. t " Appendix I Yield to Maturity (YTM): The percentaQe rate of return paid on a bond. note. or other fixed income security if the investor buys and holds it to its maturity date. The calculation for YTM is based on the coupon rate. lenQth of time to maturity. and market price (purchase price). It assumes that coupon interest paid over the life of the bond will be reinvested at the same rate. 64 " CITY OF NORTH RICHLAND HILLS Department: Finance Council Meeting Date: 2/24/02 Subject: Presentation of Fiscal Year 2002 Audited Financial Report Agenda Number: GN 2003-032 The results of the fiscal year 2002 Annual Financial Report for the City will be jointly presented by Director of Finance, Larry Koonce and a representative of the independent audit firm of Deloitte and Touche. Larry Koonce will review the year-end results and fund balance data for the various Funds (General, Enterprise, etc.) as well as other financial impacts. Deloitte and Touche will present the audit opinion and be available to respond to questions regarding the report. The auditor's opinion is again an unqualified opinion or a "clean" opinion. This means that they have found the Financial Statements of the City of North Richland Hills to present fairly our financial position. Included in the Council packet is a copy of the financial report and attached to the cover sheet is a summary of the various City Funds showing the results of the changes in Fund Balances from 2001 to 2002. As of September 30, 2002, the General Fund undesignated balance was $5,742,689. In fiscal year 2002, $3,000,000 of the General Fund balance was designated for economic development. City Council's goal is to have at least 60 days of operations in undesignated reserve. This ending balance represents 67 days of FY 2003 General Fund budgeted operating expenditures. The Crime Control District, Water and Sewer Fund, Golf Fund and Insurance Fund all ended the year with negative changes in working capital. The Crime Control District borrowed from the transition reserve to fund vehicle replacement. The Water and Sewer Fund used existing working capital balances for more than $3 million in system improvements on a pay-as-you go basis. The golf course made over $600,000 in improvements to the course with existing working capital. The Insurance Fund incurred a major increase in costs to the City health plan in FY 2002. Management has made changes to the 2003 plan which should reduce costs considerably, with minor changes to plan benefits. . The City of North Richland Hills ended fiscal year 2002 with over $43 million in working capital city- wide, and over $74 million in cash deposits and investments. All funds ended the year with positive balances. Overall, the City of North Richland Hills' results of operations during the 2002 fiscal year, as well as the financial position at year-end reflect a sound fiscal condition. This is in fulfillment of Council Goal 4: Financially Responsible City Government. RECOMMENDATION: To accept the 2002 fiscal year Audited Financial Report as presented. Finance Review Source of Funds: Bonds (GO/Rev.) Operating Budget Other ~ \W ~rlment Head Signature . . . FUND SUMMARY Actual FY 2002 Fund FY 2001 Balance FY 2002 Balance Change 2001 to 2002 General Fund $ 9,284,802 $ 10,043,484 $ 758,682 f------.. Promotional Fund $ 173,120 $ 255,084 $ 81,964 Donations Fund $ 604,981 $ 675,002 $ 70,021 ~eciallnvestigation Fund $ 227,010 $ 350,666 $ 123,6_~ ~rainage Utility Fund $ 316,448 $ 230,650 $ (85,798) --.--- --- - ~ - --~ Park Development Fund Reserved for Park Capi~! ~c:I~e.c~____ .__ ___ $ 5,986,522 $ 6,963,131 $ 976,609 Crime Control District Fund $ 4,473,775 ¿-- 4,190,.!I~ $ J2.!1~,-9~3) --~---------- ------------ ----------- ---- - - .. ---- General Debt Service Fund $ 1,802,490 $ 1,744,579 $ (57,~!!! -, Water &_~!\!er Operating Working Capital $ 10,340,161 $ 8,844,945 $ (1,495,.21.6) Golf Fund Working Capital $ 1,005,437 $ 714,102 $ (29!-1~~ --,- Aquatic Park Fu.nd Working Capital $ 2,511,372 $ 2,723,061 $ 211,689 -- ----------------- ------.- .- Building Services $ 843,544 $ 1,123,937 $ 280,393 Equipment Services $ 1,806,194 $ 1,761,790 $ (44,404) Insurance Reserve for Claims & Premiums $ 3,090,594 $ 2,116,182 $ (974,412) Information Services Reserved for Equipment Replacement $ 1,705,819 $ 1,694,649 $ (11,170) ..... ... Total Change In FundIWørldngCapltal Balances $ 44,172,269 $ 43,432,064 $ (740,205) Fund Balance SumrnaI"f A...... 2OO2_xIs " ,. . . . "" .~ .. CITY OF NORTH RICHLAND HILLS Department: Human Resources Council Meeting Date: 2/24/03 Subject: Approve Resolution NO. 2003-021 Adoptinq the Compensation Agenda Number:6tJa663· o~, and Classification Recommendations from Waters Consulting Group The Waters Consulting Group, Inc. was retained by the City of North Richland Hills, to perform a comprehensive study of the City's current classification and compensation program. Ruth Ann Edwards, Senior Consultant, and Rollie Waters, President of Waters Consulting Group will be in attendance to present their final report and recommendations to Council. The project involved participation by employees at all levels within the City. Input from employees ranged from initial employee meetings, employee job questionnaires, personal employee interviews, Department Director and City Council questionnaires, and participation of employees on two separate committees. The end product of the study resulted in the following: 1. New job descriptions for all full-time positions; 2. A point factor job evaluation system that reflects the City's values, culture, and management approach; 3. A comprehensive salary survey of City benchmark positions; 4. New and revised salary structures which improve internal equity and external competitiveness; 5. An implementation plan that takes into account the City's financial resources and goals and objectives; . 6. 2.83% market adjustment for all sworn public safety positions; 7. Implementation salary adjustment for all non-sworn positions based on time in position; 8. Policies, procedures and guidelines to provide for ongoing administration and maintenance; and 9. Training and software to support the new programs. Key elements of the implementation plan are attached in the Executive Summary and the cost of implementation is below the approved budgeted amount. Recommendation To approve Resolution NO. 2003-021 adopting the wage and salary administration guidelines, implementation plan, and pay structures as recommended by the Waters Consulting Group with an effective date of January 11, 2003 as recommended by staff. Source of Funds: Bonds (GO/Rev.) Operating Budget Other Finance Review Account Number suff~~nt Fr:1s Avai a e I'J~Uw~IAA- Budget Director ~ Department Head Sianature Finance Director Page 1 of 1 . . . RESOLUTION NO. 2003-021 WHEREAS, the City Council of the City of North Richland Hills recognizes that one of the City's greatest assets is the employees who make it their career to serve the citizens of North Richland Hills; and WHEREAS, the City Council believes that all employees should be treated in a fair and equitable manner regardless of position; and WHEREAS, the City Council endeavors to compensate City employees at a market competitive level in order to retain and attract quality individuals; and WHEREAS, the City Council recognizes the need to annually conduct surveys to determine market changes; and WHEREAS, the City Council authorizes the City Manager to make necessary adjustments to maintain the system in a manner consistent with the compensation system policies and procedures; and WHEREAS, the City Council believes that employees progression through their pay range should be based on the acceptable performance of their duties and include the opportunity for an annual merit increase; NOW, THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICH LAND HILLS, THAT the attached wage and salary administration guidelines, implementation plan, and pay structures from Waters Consulting Group is hereby adopted with an effective date of January 11, 2003. PASSED BY THE CITY COUNCIL this the 24th day of February, 2003. APPROVED: Oscar Trevino, Mayor ATTEST: City Secretary APPROVED AS TO FORM AND LEGALITY: Attorney for the City . . . Executive Summary Section I City of North Richland Hills, Texas Background The Waters Consulting Group, Inc. (WCG) was retained by the City of North Richland Hills, Texas to perform a comprehensive study of the City's current classification and compensation program. The City has made a commitment to develop an internally equitable classification system and a market-based compensation program for all City employees. The need for current and accurate job analysis has resulted in the establishment of an on- going job evaluation system designed to support internal equity considerations in conjunction with a market competitive position. This report presents the fmdings and recommendations of our research and analysis. The report is organized into five sections as follows: · Section I · Section IT · Section ill · Section IV · Section V Executive Swmnary Project Methodology Implementation Plan and Recommendations Salary Administration Guidelines Supporting Appendices Project Elements An organization's compensation plan is one of the most important elements of its human resources program. The compensation plan supports virtually every other component of the human resources function including recruitment and retention, training, workforce planning and resource allocation, and performance management. The compensation plan ensures the City's ability to: · Attract and retain qualified, high-performing talent for all positions · Compete with similar employers for employees · Effectively and efficiently manage fmancial resources Section I . Page 1 City of North Richland Hills, Texas Executive Summary Section I . · Defme compensation opportunities for positions which accurately reflect differences and similarities in levels of responsibility and accountability within the organization By choosing to review its current practices, the City has made a commitment to upgrade its classification and compensation programs. Based on the identified needs of the City, this multi-phase project was structured to achieve the following objectives: . · Develop a compensation program that is internally equitable and externally competitive for all positions covered by the scope of the project · Compose descriptions for positions covered by the study · Design and apply an on-going point-factor job evaluation system to establish objective and accurate internal relationships between positions · Develop and complete a salary data collection process using a customized Salary Survey · Build market-based salary plans that balance and support internal fairness · Provide recommendations for implementation of the system based on the City's financial resources as well as the goals and objectives of the City · Provide effective salary administration guidelines for continued program maintenance, including supporting software This project involved participation by employees at all levels within the organization. Input from employees ranged from initial employee briefmgs on the project scope and methodology, employee job questionnaires, targeted employee interviews, department director and City Council questionnaires and briefings, and participation of employees on various committees. The resulting tangible products are: . . New descriptions for all regular City positions. Using the questionnaires received from employees, new descriptions were written for City positions. The descriptions include a brief description of the job, its essential functions, physical and non-physical requirements, minimum qualifications, supervisory and budget responsibility, and scope of authority. Draft descriptions were distributed for review and Section I . Page 2 . . . Executive Summary Section I City of North Richland Hills, Texas . . editing and a final copy, both electronically and printed copy, are being provided to the City. . A point factor job evaluation system that reflects the City's values, culture, and management approach. In order to detemrine the internal worth of all positions within the City, each non-sworn position was evaluated utilizing a point factor job evaluation methodology. Ajob evaluation system is a systematic method of establishing a hierarchy of jobs in the organization based on objective and measurable compensable factors. Eight factors were used in this process to establish the relative value of a job in the organization and to assign the position to a pay grade: o Knowledge: The minimum formalized training or education that is required for entry into the position. o Experience: Based on the minimum education required for the job, the degree of experience required for entry into the position. o Organizational Control: The managerial requirements for achieving results through people. o Freedom to Exercise Authority: The degree of freedom to exercise authority as well as an assessment of the impact of those actions. o Human Relations Skills: The job requirements for interactions with others outside direct reporting relationships. o Complexity: The job difficulty in terms of the application of the knowledge required by the job. o Budget Responsibility: The position's accountability for the annual budget for one's department or assigned area of responsibility. o Working Conditions: The surroundings or physical conditions under which the work must be performed. Each factor has levels and each level has points associated with the level. All evaluated jobs received points for each rating and the total points received were used to establish the relative value of jobs and the Section I . Page 3 , . City of North Richland Hills, Texas Executive Summary Section I . hierarchy of jobs in the organization. Jobs were then assigned to pay grades based on position in the hierarchy. . Comprehensive salary review of City benchmark positions. To determine the external market value of positions within the City, salary data from relevant selected cities was utilized. WCG worked closely with the City to determine the relevant benchmark organizations and positions. In previous years, the City has utilized ten cities as benchmark organizations. They are: · Arlington · Carrollton · Duncanville · Grapevine · Irving Bedford Denton Euless Hurst Lewisville . A review of the demographics of these cities was conducted to ensure that they continued to satisfy standard practices for use as benchmark organizations. Seventy-nine City positions were compared to salary survey information from the identified markets. The number of benchmark jobs was expanded from forty-two used in previous years. Current plans were then compared to the market data. The data has shown the following positions of pay plans in relation to the market data collected: General Government Employee Pay Plan Appointed Pay Plan Public Safety Pay Plan 97% of Average Benchmarks 89% of Average Benchmarks 97% of Average Benchmark . . New and revised salary plans which improve internal equity and external competitiveness. Using the grades that benchmark positions were assigned to during the job evaluation process, regression lines were then drawn for the General Government Employee and Appointed Pay Plans that blended the data to establish a progression of the midpoint between grades and create the pay plans. The pay line establishes the midpoint of pay grades and a range establishing the minimum and maximum of each grade around the midpoint is designed using standard compensation practices. An illustration of this Section I . Page 4 ,.... ..... .,.,. _.......___ ''''~'' 'e," ·0'. _.... . ., . City of North Richland Hills, Texas Executive Summary Section I technique, a standard compensation methodology, is shown below for the General Government Employee Pay Plan. Proposed General Government Pay Plan vs. Market 60000 55000 50000 45000 40000 35000 30000 25000 20000 15000 910 911 912 913 914 915 916 917 - Proposed Min - Proposed Mid Proposed Ma.x · Market . All pay lines were drawn to create plans that reflect structures at approximately 100% of the market. The result is market competitive pay plans for all regular non-sworn City positions that can be maintained and updated by the City's Human Resources Department. The Public Safety Pay Plan was updated based on the average midpoint for the market benchmark. The point factor evaluation system was not used to evaluate sworn positions since an existing hierarchy is already in place that is consistent with public sector public safety organizations. However market data was collected to ensure that ranks for both police and fire sworn positions were assigned to the appropriate pay grade based on market data. The pay plan was then adjusted by 2.83% to maintain a market competitive position. . . An implementation plan that takes into account the City's financial resources and goals and objectives. The implementation recommendations listed below have been developed based on establishing pay plans that are approximately 100% of market data. The recommendations provide guidance on placement of employee salaries into pay plans: Section I . Page 5 . City of North Richland Hills, Texas Executive Summary Section I . o Employees in the Public Safety Pay Plan are recommended to receive a 2.83% pay adjustment to retain their relative position within their pay range o Employees in the General Government and Appointed Plans are recommended to be placed in their designated pay grade and any employee whose pay is below the minimum of their proposed pay range would be brought up to the new minimum of the designated pay range. o Employees in the General Government and Appointed Plans whose current pay is already within the ranges of the proposed plan for their position would receive an adjustment using a matrix based on time in position and position in their new pay grade. The purpose of this adjustment is to minimize pay compression with future new hires. The objective of the adjustment is to move employees with tenure in their current position closer to the market average (the midpoint of the pay range) without compressing their pay with other employees. It is recommended that the City provide adjustments to employee base pay during implementation of the new systems to avoid new hires being brought into grades at a base rate similar to employees that have more tenure in the same position. A copy of the matrix used for the proposed adjustments is in Attachment G. Applicable policies, procedures and guidelines to provide for ongoing administration and maintenance. A series of recommendations to provide procedures for various personnel actions that may occur once the study is approved have been provided. The recommendations cover actions relating to new hires, promotions, reclassification or creation of new positions, demotions, and salary adjustments. Recommendations also include standards and procedures for continued administration of the pay plans to maintain their competitive positions. Training and software to support the new programs. The pay module of the proprietary software, HRNavigator, will be installed with the approved pay plans. Staff will be trained on the use of the system to continue to update and maintain the plans. . . -- Section I . Page 6 . City of N orih Richland Hills, Texas Executive Summary Section I Implementation Plan and Recommendations The key elements are: . 1) Upon formal approval of the compensation system by the City Council, the new and updated pay plans and related salary guidelines should be applied to all current and new employees hired in the City effective with the first full pay period in calendar year 2003. 2) The City should implement the pay plans as illustrated in Appendix E. The market identified and established as a part of this study should continue to be surveyed annually and used as a basis for future adjustments to the pay plans. 3) When the salary plan is updated on an annual basis, all employees with acceptable performance who are below the proposed minimum of their salary range should be brought to the new minimum. It is also recommended that all other employees with acceptable performance receive adjustments to their base pay at the same rate as the plan movement unless the base rate is at or above the proposed ma.'dmum of the adjusted range. 4) No individuals should receive salary increases that would put their salaries above the ma.ximum of the salary ranges. It is recommended that the City implement the practice of providing lump sum payments to employees that are at or above the maximum of their pay range to allow participation in the performance pay program. 5) No individual should experience a decrease in pay as a result of changes in plans. Instead, an employee who is at or above the ma.ximum should have their pay frozen until the plan "catches up" with the individual's base pay. 6) An implementation plan has been provided for determining initial adjustments for employees at various salary levels in the new plans. Providing performance is acceptable, the implementation plan provides for employee salaries in the General Government and Appointed Pay Plans to be increased to the minimum of their designated pay range if their current rate of pay is below the new range. Employees in the General Government and Appointed Pay Plans would receive an adjustment based on the proposed pay matrix to minimize employee pay compression. Public Safety employee pay would move with the plan . Section I . Page 7 .~. . . City of North Richland Hills, Texas Executive Summary Section I adjustment of 2.83%. The following costs for the recommended increases for pay adjustments are: Assign positions to new ranges and adjust employee salaries if below the minimum Move Public Safety employee pay 2.83% General Government and Appointed Adjustment to address compression Total Costs $ 100,441 $ 235,942 $ 299,721 $ 636,104* * Includes benefits related costs . All employees with satisfactory performance ratings would continue to be eligible to receive a minimum 4% merit increase at their anniversary date. 7) During future budget cycles, the overall amount allocated to fund the system should be determined in the context of fiscal constraints and the City's competitive position. 8) Effective with the implementation of these programs, evaluation of new positions should follow the administrative procedures as outlined in the Salary Administration Guidelines. All requests for reviews of current positions as well as the review of proposed new positions should require the completion of a new job description questionnaire and review by the Director of Human Resources and the City Manager's Office to ensure appropriate placement in the classification system. A new description should be completed for all new positions. 9) Requests for review of an individual employee's classification should also require the completion of a job evaluation questionnaire that can be used to detennine if movement to another existing position or development of a new position is justified. All requests to create new positions or review existing positions and employee placements should be coordinated with the budgetary process and be conducted on an annual basis. 10) It is recommended that the City Council adopt a resolution that provides direction to the City Manager and Human Resources Department to implement the recommendations of this study and maintains the system and pay plans accordingly. . Section I . Page 8 CITY OF NORTH RICHLAND HILLS FINAL REPORT DEVELOPING COMPENSATION SYSTEMS TO ATTRACT, RETAIN AND REWARD TALENTED EMPLOYEES FEBRUARY 2003 BUILDING EFFECTIVE COMPENSATION AND PERFORMANCE SYSTEMS SINCE 1976 . ~THE WATERS ~~~~~~~~~.G 2695 Villa Creek Drive, Suite 104 Dallas, Texas 75234 800.899.1669 www.watersconsulting.com ~'k ~ ; -+0 to \..UI\~ \ J I-a..4 ( to J City of North Richland Hills City Council Briefings Developing Compensation Systems to Attract, Retain and Reward Talented Employees Febroaty, 2003 II jrHE WATERS IiI· CONSULTING GROUP, INC. 2/18/2d95 Villa Creek Drive, Suile 104. Dallas. Texas 75234 800.899.1669 www.waterscoDSulting.com n LJ -") Characteristics of an effective compensation! classifICation S}5œm · Internally equitable · Externally competitive · Affordable · Responsibly safeguards resources · Legal/Defensible · Understandable/Saleable · Efficient to administer · Capable of being reshaped for the future · Uniquely designed around the goals and objectives of the organization 2 Provided by The Waters Consulting Group, Inc. www.watersconsulting.com . Project Overview . IM'_~ \ UM7S_ 1_ \ 1== r/ .. ~\ A__ \ =$ S.., _to Project Approach -Initial Project Strategy Meeting - Initial planning session was conducted in July, 2002 -Briefings with City Management -Individual briefings with Department Directors -Various updates to City Manager and Human Resources Director -Oversight Committee Briefings -Employee Meetings Conducted -Meetings held August 7-9. 2002 .Toll-free number and email address established . Provided by The Waters Consulting Group, Inc. www.watersconsulting.com 5 6 Point Factor Evaluation: Compensable Factors KnowledCe This fàdor measures the minimum f'ormaIized training or education that is required for enll)' into the posiåon. Organizational Control This fàdor measures the managerial requirements for achieving results through people. Working Conditions This factor measures the swroundings or physical condiåons under which the wortc must be perfonneci. Freedom to Exercise Authority This factor me..ures the degn:e of freedom to exercise authority .. well .. assesses the impact of actions. Experience Bued on the rnÎnimwn education required for the job, this factor measures the degree of experience required for mil)' into the position. Human Relations Skills This fiu:Ior measura the job requirements of interaction with others OUISÎde diteCI reponing relationships. Complexity This factor measures the joh difficulty in tcm1S of the opplic:llion of the knowledge required by the job. Budget Responsibility This factor measures the .ccountability for the annual budget for one's department or ..signed ..... of responsibility. 9 Job Evaluation - Example of Process SAMPLE Job Groupings JE Points Staff Nurse Admin Asst Executive Secretary Sr. Computer Operator Sr. Secretary Sr. Drafter Computer Oper. II Offset Press Oper. II Secretary Drafter II Sr. Clerk Typist Computer Oper. II Computer Oper. I Offset Press Oper. I Clerk Typist II Drafter I Driver PorterlJ anitor Clerk Typist I Mail Clerk Pay Grade 855 735 726 642 636 633 573 570 549 546 531 513 495 459 453 450 393 390 387 336 8 7 7 6 6 6 5 5 5 5 4 4 4 3 3 3 2 2 2 1 10 Provided by The Waters Consulting Group, Inc. www.watersconsulting.com . . . Salary Survey Results Comparison of City Current Average Pay and Midpoints Compared to Market Average Pay North Ricbland Hills average structure midpoint compared to Market: Appointed 89% General Government 97% 97% Public Safety 13 Design Selections Assumptions in developing structures: Maintain current number of structures - General Government Employees - Appointed - Public Safety 14 Provided by The Waters Consulting Group, Inc. www.watersconsulting.com Design Selections Assumptions in developing structure: - Develop several structures - Pay structures established at approximately 100% of market 17 Design Selections Assumptions in developing structure: - Create multiple structures based on employee position types - Pay structure established at approximately 100% of market - Continue a step system for Public Safety Structure, open ranges for all other structures 18 Provided by The Waters Consulting Group, Inc. www.watersconsulting.com · Review of Public Safety System · Confirmation of range assignment for all ranks based on market data · Review of survey data to determine relationship of current pay structure to market · Proposed movement to achieve market competitive pay structure 21 · Proposed Implementation · All employees brought to minimum of proposed range · Public Safety salaries move 2.83% with pay plan · Non-public Safety move based on time in position 22 · Provided by The Waters Consulting Group, Inc. www.watersconsulting.com City of North Richland Hills City Council Briefings Developing Compensation Systems to Attract, Retain and Reward Talented Employees - END OF SLIDE SHOW - THE WATERS [!l CONSULTING GROUP, INe. 2I17/2iì95 Villa Creek Drive, Suite 104, Dallas. Texas 75234 800.899.1669 W\¥W.watcrscoosulting.com Provided by The Waters Consulting Group, Inc. www.watersconsulting.com . . - Executive Summary Section I City of North Richland Hills, Texas Background The Waters Consulting Group, Inc. (WCG) was retained by the City of North Richland Hills, Texas to perfonn a comprehensive study of the City's current classification and compensation program. The City has made a commitment to develop an internally equitable classification system and a market-based compensation program for all City employees. The need for current and accurate job analysis has resulted in the establishment of an on- going job evaluation system designed to support internal equity considerations in conjunction with a market competitive position. This report presents the findings and recommendations of our research and analysis. The report is organized into five sections as follows: · Section I · Section II · Section III · Section N · Section V Executive Summary Project Methodology Implementation Plan and Recommendations Salary Administration Guidelines Supporting Appendices Project Elements An organization's compensation plan is one of the most important elements of its ,human resources program. The compensation plan supports virtually every other component of the human resources function including recruitment and retention, training, workforce planning and resource allocation, and perfonnance management. The compensation plan ensures the City's ability to: · Attract and retain qualified, high-perfonning talent for all positions · Compete with similar employers for employees · Effectively and efficiently manage fmancial resources Section I . Page 1 . City of North Richland Hills, Texas Executive Summary Section I . . Define compensation opportunities for positions which accurately reflect differences and similarities in levels of responsibility and accountability within the organization By choosing to review its current practices, the City has made a commitment to upgrade its classification and compensation programs. Based on the identified needs of the City, this multi-phase project was structured to achieve the following objectives: . · Develop a compensation program that is internally equitable and externally competitive for all positions covered by the scope of the project · Compose descriptions for positions covered by the study · Design and apply an on-going point-factor job evaluation system to establish objective and accurate internal relationships between positions · Develop and complete a salary data collection process using a customized Salary Survey · Build market-based salary plans that balance and support internal fairness · Provide recommendations for implementation of the system based on the City's financial resources as well as the goals and objectives of the City · Provide effective salary administration guidelines for continued program maintenance, including supporting software . This project involved participation by employees at all levels within the organization. Input from employees ranged from initial employee briefings on the project scope and methodology, employee job questionnaires, targeted employee interviews, department director and City Council questionnaires and briefmgs, and participation of employees on various . committees. The resulting tangible products are: . . New descriptions for all regular City positions. Using the questionnaires received from employees, new descriptions were written for City positions. The descriptions include a brief description of the job, its essential functions, physical and non-physical requirements, minimum qualifications, supervisory and budget responsibility, and scope of authority. Draft descriptions were distributed for review and Section I . Page 2 · City of North Richland Hills, Texas Executive Summary Section I editing and a final copy, both electronically and printed copy, are being provided to the City. · . A point factor job evaluation system that reflects the City's values, culture, and management approach. In orde.r to determine the internal worth of all positions within the City, each non-sworn position was evaluated utilizing a point factor job evaluation methodology. Ajob evaluation system is a systematic method of establishing a hierarchy of jobs in the organization based on objective and measurable compensable factors. Eight factors were used in this process to establish the relative value of a job in the organization and to assign the position to a pay grade: o Knowledge: The minimum formalized training or education that is required for entry into the position. o Experience: Based on the minimum education required for the job, the degree of experience required for entry into the position. o Organizational Control: The managerial requirements for achieving results through people. o Freedom to Exercise Authority: The degree of freedom to exercise authority as well as an assessment of the impact of those actions. o Human Relations Skills: The job requirements for interactions with others outside direct reporting relationships. o Complexity: The job difficulty in terms of the application of the knowledge required by the job. o Budget Responsibility: The position's accountability for the annual budget for one's department or assigned area of responsibility . o Working Conditions: The surroundings or physical conditions under which the work must be performed. Each factor has levels and each level has points associated with the level. All evaluated jobs received points for each rating and the total points received were used to establish the relative value of jobs and the · Section I . Page 3 .. . City of North Richland Hills, Texas Executive Summary Section I hierarchy of jobs in the organization. Jobs were then assigned to pay grades based on position in the hierarchy. . Comprehensive salary review of City benchmark positions. To detennine the external market value of positions within the City, salary data from relevant selected cities was utilized. WCG worked closely with the City to determine the relevant benchmark organizations and positions. In previous years, the City has utilized ten cities as benchmark organizations. They are: · Arlington Bedford · Carrollton Denton · Duncanville Euless · Grapevine Hurst · Irving Lewisville . A review of the demographics of these cities was conducted to ensure that they continued to satisfy standard practices for use as benchmark organizations. Seventy-nine City positions were compared to salary survey information from the identified markets. The number of benchmark jobs was expanded from forty-two used in previous years. Current plans were then compared to the market data. The data has - shown the following positions of pay plans in relation to the market data collected: General Government Employee Pay Plan Appointed Pay Plan Public Safety Pay Plan 97% of Average Benchmarks 89% of Average Benchmarks 97% of Average Benchmark e . New and revised salary plans which improve internal equity and external competitiveness. Using the grades that benchmark positions were assigned to during the job evaluation process, regression lines were then drawn for the General Government Employee and Appointed Pay Plans that blended the data to establish a progression of the midpoint between grades and create the pay plans. The pay line establishes the midpoint of pay grades and a range establishing the minimum and maximum of each grade around the midpoint is designed using standard compensation practices. An illustration of this Section I . Page 4 . . e City of North Richland Hills, Texas Executive Summary Section I technique, a standard compensation methodology, is shown below for the General Government Employee Pay Plan. Proposed General Government Pay Plan vs. Market 60000 55000 50000 45000 40000 35000 30000 25000 20000 15000 910 911 912 913 914 915 916 917 - Proposed Min - Proposed Mid - Proposed Max · Market All pay lines were drawn to create plans that reflect structures at approximately 100% of the market. The result is market competitive pay plans for all regular non-sworn City positions that can be maintained and updated by the City's Human Resources Department. The Public Safety Pay Plan was updated based on the average midpoint for the market benchmark. The point factor evaluation system was not used to evaluate sworn positions since an existing hierarchy is already in place that is consistent with public sector public safety organizations. However market data was collected to ensure that ranks for both police and fire sworn positions were assigned to the appropriate pay grade based on market data. The pay plan was then adjusted by 2.83% to maintain a market competitive position. . An implementation plan that takes into account the City's financial resources and goals and objectives. The implementation recommendations listed below have been developed based on establishing pay plans that are approximately 100% of market data. The recommendations provide guidance on placement of employee salaries into pay plans: Section I . Page 5 . City of North Richland Hills, Texas Executive Summary Section I . o Employees in the Public Safety Pay Plan are recommended to receive a 2.83% pay adjustment to retain their relative position within their pay range o Employees in the General Government and Appointed Plans are recommended to be placed in their designated pay grade and any employee whose pay is below the minimum of their proposed pay range would be brought up to the new minimum of the designated pay range. o Employees in the General Government and Appointed Plans whose current pay is already within the ranges of the proposed plan for their position would receive an adjustment using a matrix based on time in position and position in their new pay grade. The purpose of this adjustment is to minimize pay compression with future new hires. The objective of the adjustment is to move employees with tenure in their current position closer to the market average (the midpoint of the pay range) without compressing their pay with other employees. It is recommended that the City provide adjustments to employee base pay during implementation of the new systems to avoid new hires being brought into grades at a base rate similar to employees that have more tenure in the same position. A copy of the matrix used for the proposed adjustments is in Attachment G. Applicable policies, procedures and guidelines to provide for ongoing administration and maintenance. A series of recommendations to provide procedures for various personnel actions that may occur once the study is approved have been provided. The recommendations cover actions relating to new hires, promotions, reclassification or creation of new positions, demotions, and salary adjustments. Recommendations also include standards and procedures for continued administration of the pay plans to maintain their competitive positions. Training and software to support the new programs. The pay module of the proprietary software, HRNavigator, will be installed with the approved pay plans. Staff will be trained on the use of the system to continue to update and maintain the plans. . . - Section I . Page 6 . City of North Richland Hills, Texas Executive Summary Section I Implementation Plan and Recommendations· The key elements are: e 1) Upon formal approval of the compensation system by the City Council, the new and updated pay plans and related salary guidelines should be applied to all current and new employees hired in the City effective with the fIrst full pay period in calendar year 2003. 2) The City should implement the pay plans as illustrated in Appendix E. The market identifIed and established as a part of this study should continue to be surveyed annually and used as a basis for future adjustments to the pay plans. 3) When the salary plan is updated on an annual basis, all employees with acceptable performance who are below the proposed minimum of their salary range should be brought to the new minimum. It is also recommended that all other employees with acceptable performance receive adjustments to their base pay at the same rate as the plan movement unless the base rate is at or above the proposed maximum of the adjusted range. 4) No individuals should receive salary increases that would put their salaries above the maximum of the salary ranges. It is recommended that the City implement the practice of providing lump sum payments to employees that are at or above the maximum of their pay range to allow participation in the performance pay program. 5) No individual should experience a decrease in pay as a result of changes in plans. Instead, an employee who is at or above the maximum should have their pay frozen until the plan "catches up" with the individual's base pay. 6) An implementation plan has been provided for detennining initial adjustments for employees at various salary levels in the new plans. Providing performance is acceptable, the implementation plan provides for employee salaries in the General Government and Appointed Pay Plans to be increased to the minimum of their designated pay range if their current rate of pay is below the new range. Employees in the General Government and Appointed Pay Plans would receive an adjustment based on the proposed pay matrix to minimize employee pay compression. Public Safety employee pay would move with the plan . Section I . Page 7 .. . City of North Richland Hills, Texas Executive Summary Section I adjustment of 2.83%. The following costs for the recommended increases for pay adjustments are: Assign positions to new ranges and adjust employee salaries if below the minimum Move Public Safety employee pay 2.83% General Government and Appointed Adjustment to address compression Total Costs $ 100,441 $ 235,942 $ 299,721 $ 636.104* * Includes benefits related costs . All employees with satisfactory performance ratings would continue to be eligible to receive a minimum 4% merit increase at their anniversary date. 7) During future budget cycles, the overall amount allocated to fund the system should be determined in the context of fiscal constraints and the City's competitive position. 8) Effective with the implementation of these programs, evaluation 'of new positions should follow the administrative procedures as outlined in the Salary Administration Guidelines. All requests for reviews of current positions as well as the review of proposed new positions should require the completion of a new job description questionnaire and review by the Director of Human Resources and the City Manager's Office to ensure appropriate placement in the classification system. A new description should be completed for all new positions. 9) Requests for review of an individual employee's classification should also require the completion of a job evaluation questionnaire that can be used to determine if movement to another existing position or development of a new position is justified. All requests to create new positions or review existing positions and employee placements should be coordinated with the budgetary process and be conducted on an annual basis. 10) It is recommended that the City Council adopt a resolution that provides direction to the City Manager and Human Resources Department to implement the recommendations of this study and maintains the system and pay plans accordingly. . Section I . Page 8 CITY OF NORTH RICHLAND HILLS Department: Municipal Court Council Meeting Date: 02/24/03 Subject: Appoint Municipal Court Alternate JudQes Agenda Number: GN 2003-033 -.- ~ In May of 2002 Council approved Ordinance No. 2622 which appointed Judge Oujesky and named alternate judges as Len Wade, Jennifer Rymell and Stewart Bass, in the event of Judge Oujesky's absence. Alternate Judge Len Wade has been elected as a District Court Judge and Jennifer Rymell was elected as a Tarrant County Court at Law NO.2 Judge in the November 2002 election. These appointments have caused vacancies as alternate judges in the North Richland Hills Municipal Court. Stewart Bass will continue to serve as alternate as originally appointed. We recommend that the council consider appointing Glynis McGinty, your current teen court judge, and Yolanda Bernal. Ms Bernal is a former Fort Worth Municipal Judge who moved out of the Fort Worth city limits and had to give up the seat. Ms. Bernal works for the F.A.A. fulltime. Steve Wallace has requested that he be considered for this position. Mr. Wallace is a former Tarrant County Court at Law NO.2 Judge for 12 years. He decided not to seek re- election this year. Judge Oujesky will select which will serve as needed. RECOMMENDATION: Select alternate judges and pass Ordinance 2689 with appropriate names. Source of Funds: Bonds (GO/Rev.) Operating Budget Finance Review Account Number Sufficient Funds Available Other ~ Budget Director Finance Director Page 1 of 1 ORDINANCE NO. 2689 . 4 AN ORDINANCE APPOINTING ALTERNATE JUDGES OF THE MUNICIPAL COURT OF RECORD NO.1 OF THE CITY OF NORTH RICHLAND HILLS. 8 WHEREAS, Section 30.00008, Texas Government Code, provides that the governing body of a municipality which has created a municipal court of record may appoint one or more qualified persons to be able to serve for a municipal judge who is temporarily absent due to illness, family death, continuing legal or judicial education programs or for any other reason; and, 6 10 12 WHEREAS, Several of the persons previously appointed to serve in such capacity can no longer serve; NOW THEREFORE, 14 16 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND fiLLS, TEXAS. 18 Section 1: are hereby appointed to serve as municipal judge to serve when the Judge of the Municipal Court of Record is temporarily absent for any reason. 20 22 .4 AND IT IS SO ORDAINED. PASSED AND APPROVED this 24th day of February, 2003. 26 CITY OF NORTH RICHLAND HILLS 28 30 By: Oscar Trevino, Mayor 32 ATTEST: 34 36 Patricia Hutson, City Secretary 40 38 e 1 ¡e - e Announcements and Information February 24, 2003 Announcements There has been a heightened awareness of Homeland Security as our President has raised the threat condition to a level orange. Our City continues to be prepared for any disaster situation including weather conditions, hazardous spills and any situation pertaining to Homeland Security. We have provided links on our website for citizens to access information pertaining to homeland security and the measures to take in preparing your family and home. Our website address is www.nrhtx.com and the link is Homeland Defense and Family Disaster Plan. If you would like us to mail you information, please call Sean Hughes at 817-427-6969. Join us for a FREE Fishing Derby on Saturday, March 1st. The Derby will be held at Green Valley Park. Children under age 12 will be eligible for prizes and there will be a prize awarded every hour for the largest catch. For further information, call the Recreation Center at 817-427-6600. The City has joined the surrounding cities of Haltom City, Richland Hills and Watauga along with the Northeast Tarrant Chamber of Commerce and the two school districts, Birdville and Keller, to form the QuadCities DFW. This is a great new initiative designed to enhance the quality of life and encourage development in the area. Additionally, it provides a cohesive identity for this area to become known as QuadCities DFW. There will be a kick-off event on Wednesday, March 5 at Birdville Fine Arts/Athletic Complex at 4:30 p.m. It is a free event that citizens are encouraged to attend. Information March 1 Critter Connection North Hills Mall 10:00 a.m. - 6:00 p.m. 817 -427 -6570