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HomeMy WebLinkAboutCC 2008-04-28 AgendasCITY OF NORTH RICHLAND HILLS CITY COUNCIL WORK SESSION AGENDA NORTH RICHLAND HILLS CITY HALL PRE-COUNCIL CHAMBERS 7301 NORTHEAST LOOP 820 NORTH RICHLAND HILLS, TEXAS Monday, April 28, 2008 5:45 P.M. A.1 Discuss Items from Regular City Council Meeting A.2 IR 2008-047 Discuss the City's Wireless Network Initiative (10 Minutes) A.3 IR 2008-048 Citizens on Patrol Program (10 Minutes) A.4 IR 2008-049 Discussion of Standards for Neighborhood Garage Sales (15 Minutes) A.5 IR 2008-050 Discuss Setting Date for Special Council Meeting to Administer Oaths of Office (5 Minutes) A.6 IR 2008-046 Update on Transition to Duncan Disposal (5 Minutes) B.0 EXECUTIVE SESSION -The City Council may enter into closed Executive Session to discuss the following as authorized by Chapter 551, Texas Government Code B.1 Executive Session: Pursuant to Section 551.071, Texas Government Code for Consultation with Attorney on litigation: Friend vs NRH B.2 Executive Session: Pursuant to Section 551.072, Texas Government Code to deliberate the purchase of real property at: 4908 Marilyn Drive C.0 Adjournment Certification I do hereby certify that the above notice of meeting of the North Richland Hills City Council was posted at City Hall, City of North Richland Hills, Texas in compliance with Chapter 551, Texas Government Code on April 25, 2008 at ~.~`~0 .~ ., _ \f ;~ ~ ssistant City Secretary This facility is wheelchair accessible and accessible parking spaces are available. Requests for accommodations or interpretive services must be made 48 hours prior to this meeting. Please contact the City Secretary's office at 817-427-6060 for further information. The City Council may confer privately with its attorney to seek legal advice on any matter listed on the agenda or on any matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551, Texas Government Code. April 28, 2008 -City Council Agenda Page 1 of 4 CITY OF NORTH RICHLAND HILLS CITY COUNCIL AGENDA CITY HALL COUNCIL CHAMBERS 7301 NORTHEAST LOOP 820 NORTH RICHLAND HILLS, TEXAS Monday, April 28, 2008 7:00 P.M. --------------------------------------------------------------------------------------------------------------------- Copies of the full City Council agenda information packet are accessible prior to every regularly scheduled Monday Council meeting according to the following locations and schedule: ^ Library on the Friday prior to the meeting (available electronically) ^ City Hall on the day of the meeting (hard copy available) Additionally, the agenda packet is available for download from the City's web site at www.nrhtx.com after 5:00 p.m. on the Friday prior to every regularly scheduled Council meeting. A.0 Call to Order -Mayor Trevino A.1 Invocation -Councilman Sapp A.2 Pledge -Councilman Sapp A.3 Special Presentation(s) and Recognitions) -Presentation of Motorcycle Safety and Awareness Month Proclamation presented by Councilman Turnage A.4 Special Presentation(s) and Recognitions) -Keep NRH Beautiful Yard of the Month Awards presented by Councilman Lewis A.5 Citizens Presentation An opportunity for citizens to address the C'rty Council on matters which are not scheduled for consideration by the City Council or another City Board or Commission at a later date. In order to address the Council, please complete a Public Meeting Appearance Card and present it to the City Secretary prior to the start of the Council meeting. The Texas Open Meetings Act prohibits deliberation by the Council of any subject which is not on the posted agenda, therefore the Council will not be able to discuss or take action on items brought up during the citizens presentation. A.6 Removal of Item(s) from Consent Agenda B.0 CONSIDER APPROVAL OF CONSENT AGENDA ITEMS All consent agenda items listed below are considered to be routine items deemed to require little or no deliberation by the City Council and will be voted on in one motion. There will be no separate discussion of these items unless a Council Member so requests, in which event the item will be removed from the Consent Agenda and considered. April 28, 2008 -City Council Agenda Page 2 of 4 B.1 Approval of Minutes of April 14, 2008 City Council Meeting B.2 PU 2008-012 Award Bid #08-023 for Sections A & C for Annual Food Services to C.D. Hartnett Co., and reject Section B B.3 PU 2008-013 Renew Annual Contract for Rights-of-Way Mowing Services with TruGreen LandCare B.4 PU 2008-014 Renew Annual Contract for Uniform Cleaning Services with Dry Clean Super Center B.5 PU 2008-015 Award Bid No. 08-020 for Sports and Work Wear Section A, C and D to Impress Designs and Section B to Promos Distributors C.0 PUBLIC HEARINGS C.1 GN 2008-033 Public Hearing and Consideration of Ordinance Readopting Youth Programs Standards of Care -Ordinance No. 2992 D.0 PLANNING AND DEVELOPMENT Items to follow do not require a public hearing. No items for this category. E.0 PUBLIC WORKS No items for this category. F.0 GENERAL ITEMS F.1 GN 2008-028 Consider All Matters Incident and Related to the Issuance and Sale of $4,180,000 "City of North Richland Hills, Texas, General Obligation Bonds, Series 2008", Including the Adoption of Ordinance No. 2989 Authorizing the Issuance of Such Bonds F.2 GN 2008-029 Consider All Matters Incident and Related to the Issuance and Sale of $4,750,000 "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 2008", Including the Adoption of Ordinance No. 2990 -Authorizing the Issuance of Such Certificates of Obligation. F.3 GN 2008-030 Ordinance prohibiting parking motor vehicles with keys in ignition - Ordinance No. 2991 F.4 GN 2008-034 Selective Traffic Enforcement Program 2009 Comprehensive Grant - Resolution No. 2008-026 F.5 GN 2008-031 FY 2008 Click It or Ticket Mobilization Program Grant -Resolution No. 2008-024 April 28, 2008 -City Council Agenda Page 3 of 4 F.6 GN 2008-032 Appointment to Teen Court Advisory Board -Place 4 F.7 GN 2008-035 Consider Dates for May Council Meetings G.0 EXECUTIVE SESSION ITEMS G.1 Action on Any Item Discussed in Executive Session Listed on Work Session Agenda H.0 INFORMATION AND REPORTS H.1 Announcements -Councilman Welch H.2 Adjournment All items on the agenda are for discussion and/or action. Certification I do hereby certify that the above notice of meeting of the North Richland Hills City Council was posted at City Hall, City of North Richland Hills, Texas in compliance with Chapter 551, Texas Government Code on April 25, 2008 at 1O :~~Qi~~ . ,r ~ ~~ ,~ l~~ ~ ~. _._: ss~stant ~t Secrets Y rY This facility is wheelchair accessible and accessible parking spaces are available. Requests for accommodations or interpretive services must be made 48 hours prior to this meeting. Please contact the City Secretary's office at 817-427-6060 for further information. The City Council may confer privately with its attorney to seek legal advice on any matter listed on the agenda or on any matter in which the duty of the attorney to the governmental body under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551, Texas Government Code. April 28, 2008 -City Council Agenda Page 4 of 4 City of North Richland Hills City Council Work Session Meeting Agenda North Richland Hills City Hall Pre-Council Chambers 7301 Northeast Loop 820 North Richland Hills, TX 76180 Monday, April 28, 2008 5:45 P.M. A.1 Discuss Items from Regular City Council Meeting A.2 iR 2008-047 Discuss the City's Wireless Network Initiative (10 Minutes) A.3 IR 2008-048 Citizens on Patrol Program (10 Minutes A.4 IR 2008-049 Discussion of Standards for Neighborhood Garage Sales. (15 Minute A.5 IR 2008-050 Discuss Setting Date for Special Council Meeting to Administer Oaths of Office (5 Minutes) A.6 IR 2008-046 Update on Transition to Duncan Disposal (5 Minutes) B.0 EXECUTIVE SESSION -The City Council may enter into closed Executive Session to discuss the following as authorized by Chapter 551, Texas Government Code B.1 Executive Session: Pursuant to Section 551.071, Texas Government Code for Consultation with Attorney on litigation: Friend vs NRH B.2 Executive Session: Pursuant to Section 551.072, Texas Government Code to deliberate the purchase of real property at: 4908 Marilyn Drive C.0 Adjournment CITY OF NORTH RICHLAND HILLS Department: City Secretary Council Meeting Date: 4-28-2008 Presented by: Agenda No. A.1 Subject: Discuss Items from Regular City Council Meeting INFORMAL REPORT TO MAYOR AND CITY COUNCIL No. IR 2008-047 Date: April 28, 2008 -~; v =-==:,-==~~ Subject: City of North Richland Hills Wireless Initiative At last year's Mid-Year Budget Work Session Council provided direction to staff to proceed with a municipal wireless mesh network. Additionally, Council appropriated $80,000 in the 2007/2008 Capital Budget to implement a one square mile pilot network and perform a study to identify the cost of city-wide coverage, provide data on speed, test the network's reliability and identify specific applications the network could benefit. The primary drivers to create the network are to increase efficiency and productivity by mobilizing public safety, parks, public works, inspections, and neighborhood service computer applications. Currently the City is utilizing a combination of "hot spots" and leased air cards in the Police Department to mobilize patrol and investigation units. Over the past six months to year, several cities around the country have begun to experience issues with their networks ranging from performance and return on investment issues, to the companies that provide and maintain the networks pulling out of their agreements. EarthLink, one of the nation's largest companies in the wireless network arena, pulled out of agreements with the cities of San Francisco, Houston and Corpus Christi. The instability of the market has caused City staff to re-evaluate the City's position. After evaluating the technology currently in use by the City, staff has the come to the following conclusions: • Leased air cards are providing comparable speeds to mesh • Leased air cards are providing a much greater range of network connectivity • Hot spots at all City facilities are providing wired network connectivity speed It is recommended that we not move forward with conducting the pilot mesh network and allow the $80,000 budgeted for this project to be returned to Information Services reserves and not spent. It is also recommended that we move forward with expanding the use of leased air cards to enhance productivity in the field for those departments that can benefit from this. It is also recommended that wireless access be installed for public use at Richfield, Cross Timbers, Walker's Creek and Green Valley Parks, as well as look at providing wireless access at NRH2O. look forward to discussing this with you further on Monday night. Respectfully Submitted, Kyle Spooner Director of Information Services ISSUED BY THE CITY MANAGER NORTH RICHLAND HILLS, TEXAS INFORMAL REPORT TO MAYOR AND CITY COUNCIL No. IR 2008-048 Date: April 28, 2008 '`~-_ Subject: Citizens on Patrol Program One of the strengths of the Police Department's relationship with our community is the outstanding group of volunteers that assist us in our mission. The Citizens' Police Academy is the cornerstone of this relationship as it allows us to educate the public about how we perform our jobs providing them an exposure to the intricacies of the police department. Many graduates of this academy continue to build on this knowledge by joining our Citizens' Police Academy Alumni Association. These individuals support their Police Department and provide a core group of people that perform a variety of functions. Recently the creation of our Volunteers in Policing (VIP) program expanded this role by giving specific work responsibilities within the Police Department to a small group of individuals. These volunteers have proven invaluable in filling needed positions and actually performing work that would have had to be done by a salaried employee. The Police Department continues to look for avenues to use this cadre of individuals and would like to explore the creation of a Citizen on Patrol Program. Citizen on Patrol or COP programs have been in place across the country for many years. There have been many success stories and most have grown over the past few years. Many programs utilize their citizen police academy as an opportunity to introduce the program and evaluate the volunteers for a successful match into this type of program. Most COP programs will provide the volunteers with a clearly marked (but not like a police car) vehicle with which they can do their patrolling. They usually are equipped with a distinguishable shirt either by color or logo and a way to contact police communication. They then can provide an extra set of eyes at specific locations or neighborhoods to supplement the officers in the field. They are not allowed to engage any criminal activity but simply observe and report. One exception to this is the ability for many COP program participants to write disabled parking citations. The Texas legislature passed a law that allows for the governing body of a municipality to authorize a select group of trained volunteers to enforce violations of disabled parking spaces. These individuals must complete a training program and meet others basic qualifications. Once authorized, they may issue citations for violations that they observe in disabled parking spaces. While no Council action is needed to create a basic COP program, I would like to be able to have the enforcement activity as one of their duties. Authorizing this requires Council action, and I am, therefore, seeking your comments and concurrence on allowing this type of activity. If you approve, then I will move forward with the project including bringing an authorizing ordinance back to you at a future council meeting. Respectfully submitted, Jimmy Perdue Chief of Police ISSUED BY THE CITY MANAGER NORTH RICHLAND HILLS, TEXAS ~ INFORMAL REPORT TO MAYOR AND CITY COUNCIL No. IR 2008-049 Date: April 28, 2008 _ _ ~~`, Subject: Neighborhood Garage Sale Permits Councilman Sapp asked if staff would look at the possibility of creating a neighborhood garage sale permit. The purpose of this approach would be to encourage homeowners' associations or other organized neighborhood groups to hold garage sales together. Such neighborhood garage sales could potentially reduce the number of weekends garage sales are in a neighborhood every year, create more sales opportunities for the residents participating in the neighborhood garage sales and encourage neighborhoods to get together for an event. Right now, if a neighborhood wants to have a garage sale, every resident participating submits a garage sale permit application with the $6 permit fee. This can be viewed as onerous and expensive if a homeowners' association is trying to organize such a neighborhood event. If a neighborhood has 100 homes, the fee alone would equal $600 and the neighborhood would have to assure that every resident properly fills out an application. The City does not regulate garage sales to be a burden on our residents. The City requires garage sale permits and only allows a residence to have a garage sale every six months so people do not use garage sales as business ventures. If the City provided an incentive for organized neighborhood groups to hold a neighborhood wide garage sale once a year, we would still continue to deter garage sales as businesses but it could possibly be an easier avenue for our residents to participate in garage sales. With a neighborhood garage sale permit, it could remove the advertising responsibility from individual homeowners and place it with an organized group, like a homeowners' association. Also, a neighborhood garage sale could bring more sales opportunities to the individual residents as it would create more cross traffic for their sales. As Council is aware, some neighborhoods in the City do not have recognized homeowners' associations. If that is the case, one possible way to handle this would be for the permit applicants to show that at least 10% of a set geographic area would participate in the sale. The fee for the neighborhood garage sale could be based on the number of residences within that set area, not participants. A $1 charge per household might be appropriate. That would reduce the fee for the neighborhood in the previous example from $600 to $100. ISSUED BY THE CITY MANAGER NORTH RICHLAND HILLS, TEXAS ~ If Council decides to provide a special neighborhood garage sales permit, we would not see this as prohibiting a resident from still having an individual garage sale in addition to the neighborhood event at another time in accordance with the city requirement. So if a person did not want to participate in the neighborhood event for some reason or it was not convenient, they would still have the option of having a garage sale at another time in accordance with city ordinance. Staff is bringing this to Council for discussion and would appreciate any feedback and direction. We have only identified some possible options to stimulate some thinking on this subject. If Council is believes it desirable to create a neighborhood garage sale permit, we will take any suggestions from Council on the matter, develop the appropriate ordinance or policy, and bring it back for your consideration at a future meeting. Respectfully Submitted, Elizabeth L. Reining Assistant to the City Manager INFORMAL REPORT TO MAYOR AND CITY COUNCIL No. IR 2008-050 -__; _- Date: April 28, 2008 _ . - _ _~ Subject: Discuss Setting Date for Special Council Meeting to Administer Oaths of Office The Texas Election law provides that the oaths of office can be administered to newly elected officials between May 13 and May 21. We therefore will not be able to administer the oaths to our newly elected officials at the regular meeting on May 12, and the next regular council meeting, May 27 falls outside the statutory timeframe. Council will need to set a date for a special council meeting between May 13 and May 21 for the purpose of administering the oaths. As an option, Council could reschedule the regular May 12 Council meeting to Tuesday, May 13, eliminating the need for a third meeting in May. The oaths of office would be administered at the beginning of the meeting followed by the items that would have been scheduled for the May 12 meeting. Council will be requested to arrive at a consensus during the work session on whether they desire to hold the regular May 12 council meeting and schedule a special meeting between May 13 and 21 to administer the oaths, or to reschedule the May 12 Council meeting to May 13 combining the oaths of office with the regular meeting. An item has been placed on the regular agenda for Council to take action on the scheduling of the May meetings. Respectfully Submitted, Patricia Hutson City Secretary ISSUED BY THE CITY MANAGER NORTH RICHLAND HILLS, TEXAS ~ INFORMAL REPORT TO MAYOR AND CITY COUNCIL No. IR 2008-046 Date: April 28, 2008 ___~~.- _ Subject: Update on Transition to Duncan Disposal This IR is to provide Council with a brief update on the transition from Allied Waste Services to Duncan Disposal. The transition is going well and the issues we have experienced were not unexpected. The service issues we experienced in the first month with Duncan Disposal seem to be working themselves out. During February Duncan issued 431 work orders for residential service. These work orders were everything from missed trash to requests for recycle bins. In March there were 181 residential work orders issued. A large percentage of these work orders were requests for recycle bins with some missed collection. Residents are still adjusting to the new collection schedules where they are being collected much earlier in the day than they were used to with Allied. This is the cause for a number of the missed trash calls. On the commercial side, there were 52 work orders issued during February. This number decreased to 29 in March. These calls were all for missed collections. There have been some instances where drivers have been provided a list in the morning of all the collections that need to be made during the day, and the driver has made the decision to put off certain collections until the following day. In these cases the driver is counseled with and explained the importance of emptying the commercial containers on time. Hopefully we will not see these types of missed trash complaints in the future. As mentioned above, none of the issues we've experienced have been unexpected and are working themselves out. We expect to see a continued decrease in the number of complaint calls to Duncan as they become more familiar with our City and as residents adjust to the new service. Duncan was instrumental in clearing the storm debris from the City after the April 10 storms. They came through the City on two occasions, outside of our normal pick up days, to pick up storm debris. This was greatly appreciated by the City and the residents as well. ISSUED BY THE CITY MANAGER NORTH RICHLAND HILLS, TEXAS ~ I also want to mention some steps Duncan Disposal is taking to address NOx emissions. When we were going through the bidding process, the Mayor mentioned the importance of a vendor to address vehicle emissions. Duncan has provided new trucks that operate in our City, but older trucks still operate in other cities serviced by Duncan. To address emissions, Duncan has been installing injection systems on older vehicles to neutralize the NOx emissions. We appreciate Duncan taking responsibility and addressing the emissions from their fleet. I hope this information is helpful to you. I look forward to discussing this with you further at Monday night's meeting. Respectfully Submitted, Karen Bostic Managing Director CITY OF NORTH RICHLAND HILLS Department: City Secretary Council Meeting Date: 4-28-2008 Presented by: Agenda No. B.0 Subject: EXECUTIVE SESSION -The City Council may enter into closed Executive Session to discuss the following as authorized by Chapter 551, Texas Government Code CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: George Staples Council Meeting Date: 4-28-2008 Agenda No. B.1 Subject: Executive Session: Pursuant to Section 551.071, Texas Government Code for Consultation with Attorney on litigation: Friend vs NRH CITY OF NORTH RICHLAND HILLS Department: City Manager's Office Presented by: Karen Bostic Council Meeting Date: 4-28-2008 Agenda No. B.2 Subject: Executive Session: Pursuant to Section 551.072, Texas Government Code to deliberate the purchase of real property at: 4908 Marilyn Drive CITY OF NORTH R/CHLAND HILLS Department: City Secretary Presented by: Council Meeting Date: 4-28-2008 Agenda No. C.0 Subject: Adjournment City of North Richland Hills City Council Regular Meeting Agenda North Richland Hills City Hall Council Chambers 7301 Northeast Loop 820 North Richland Hills, TX 76180 Monday, April 28, 2008 7:00 P.M. A.0 Call to Order -Mayor Trevino A.1 Invocation -Councilman Sapp A.2 Pledge -Councilman Sapp A.3 Special Presentations) and Recognitions) -Proclamation Honoring the Texas Brahmas presented by Councilman Welch A.4 Special Presentation~,s) and Recognitions) -Presentation of Motorcycle Safety and Awareness Month Proclamation presented by Councilman Turnage A.5 Special Presentation(s) and Recognition(~s,~ -Keep NRH Beautiful Yard of the Month Awards presented by Councilman Lewis A.6 Citizens Presentation An opportunity for citizens to address the City Council on matters which are not scheduled for consideration by the City Council or another City Board or Commission at a later date. In order to address the Council, please complete a Public Meeting Appearance Card and present it to the City Secretary prior to the start of the Council meeting. The Texas Open Meetings Act prohibits deliberation by the Council of any subject which is not on the posted agenda, therefore the Council will not be able to discuss or take action on items brought up during the citizens presentation. A.7 Removal of Itemts) from Consent Agenda B.0 CONSIDER APPROVAL OF CONSENT AGENDA ITEMS All consent agenda items listed below are considered to be routine items deemed to require little or no deliberation by the City Council and will be voted on in one motion. There will be no separate discussion of these items unless a Council Member so requests, in which event the item will be removed from the Consent Agenda and considered. B.1 Approval of Minutes of April 14, 2008 City Council Meeting B.2 PU 2008-012 Award Bid #08-023 for Sections A & C for Annual Food Services to C.D. Hartnett Co., and reiect Section B B.3 PU 2008-013 Renew Annual Contract for Rights-of-Way Mowing Services with TruGreen LandCare B.4 PU 2008-014 Renew Annual Contract for Uniform Cleaning Services with Dry Clean Super Center B.5 PU 2008-015 Award Bid No. 08-020 for Sports and Work Wear Section A, C and D to Impress Designs and Section B to Promos Distributors C.0 PUBLIC HEARINGS C.1 GN 2008-033 Public Hearing and Consideration of Ordinance Readopting Youth Programs Standards of Care -Ordinance No. 2992 D.0 PLANNING AND DEVELOPMENT Items to follow do not require a public hearing. No items for this category. E.0 PUBLIC WORKS No items for this category. F.0 GENERAL ITEMS F.1 GN 2008-028 Consider All Matters Incident and Related to the Issuance and Sale of $4,180,000 "City of North Richland Hills, Texas, General Obligation Bonds, Series 2008", Including the Adoption of Ordinance No. 2989 Authorizing the Issuance of Such Bonds F.2 GN 2008-029__Consider All Matters Incident and Related to the Issuance and Sale of $4,750,000 "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 2008", Including the Adoption_.of _Ordinance No. 2990 -Authorizing the Issuance of Such Certificates of Obligation. F.3 GN 2008-030 Ordinance prohibiting parking motor vehicles with keys in ignition - Ordinance No. 2991 F.4 GN 2008-034 Selective Traffic Enforcement Program 2009 Comprehensive Grant -Resolution No. 2008-026 F.5 GN 2008-031 FY 2008 Click It or Ticket Mobilization Program Grant -Resolution No. 2008-024 F.6 GN 2008-032 Appointment to Teen Court Advisory Board -Place 4 F.7 GN 2008-035 Consider Dates for May Council Meetings G.0 EXECUTIVE SESSION ITEMS G.1 Action on Any Item Discussed in Executive Session Listed on Work Session A. c~enda H.0 INFORMATION AND REPORTS H.1 Announcements -Councilman Welch H.2 Adjournment CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Council Meeting Date: 4-28-2008 Agenda No. A.0 Subject: Call to Order -Mayor Trevino CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Council Meeting Date: 4-28-2008 Agenda No. A.1 Subject: Invocation -Councilman Sapp CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Council Meeting Date: 4-28-2008 Agenda No. A.2 Subject: Pledge -Councilman Sapp CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Councilman Tim Welch Council Meeting Date: 4-28-2008 Agenda No. A.3 Subject: Special Presentation(s) and Recognitions) -Proclamation Honoring the Texas Brahmas presented by Councilman Welch PROCLAMATION WHEREAS, following a one year hiatus, in October 2007 the Texas Brahmas Hockey Team relocated to North Richland Hills and began its 10th season of play in newly re-opened NyTex Sports Centre; and WHEREAS, the City of North Richland Hills has enthusiastically supported the Brahmas as our hometown team; and WHEREAS, the 2007-08 season was an exciting, hard-fought and successful season for the Brahmas players, managers, coaches, owners, officials, sponsors and countless fans who supported the team; and WHEREAS, by its extraordinary efforts, this dynamic team progressed to the Central Hockey League's Northern Conference Finals and came within one game of advancing to the President Cup Finals; and WHEREAS, the Brahmas ended the season with an impressive 40-22-2 record making this one of its best seasons in team history; and WHEREAS, our City is proud of the record the Brahmas have earned and the fine publicity they have brought to our community by their good sportsmanship and inspired team play; and WHEREAS, the excellent performance, dedication and commitment of the team has proven to be a source of admiration and inspiration to the residents of North Richland Hills. NOW, THEREFORE, BE IT RESOVED, that I Oscar Trevino, Mayor of the City of North Richland Hills do hereby proclaim April 28, 2008 as "TEXAS B ~A -~ VIAS DAY" in the City of North Richland Hills and urge all residents to recognize and congratulate the team, its coaches, managers, owners and all people associated with the Texas Brahmas for their outstanding 2007-08 season and to wish them continued success for the future. IN WITNESS WHEREOF, I have hereunto set my hand and caused the seal of the City of North Richland Hills to be affixed this the 28th day of April 2008. Oscar Trevino, Mayor CITY OF NORTH RICHLAND HILLS Department: City Secretary Council Meeting Date: 4-28-2008 Presented by: Councilman Scott Turnage Agenda No. A.4 Subject: Special Presentation(s) and Recognitions) -Presentation of Motorcycle Safety and Awareness Month Proclamation presented by Councilman Turnage PROCLAMATION WHEREAS, today's society is finding more citizens involved in motorcycling on the roads of our country; and WHEREAS, motorcyclists are roughly unprotected and much more likely to be injured or killed in a crash than other vehicle drivers; and WHEREAS, campaigns have helped inform riders and motorists alike on motorcycle safety issues to reduce motorcycle related risks, injuries, and most of all fatalities, through a comprehensive approach to motorcycle safety; and WHEREAS, it is the responsibility of all who put themselves behind the wheel, to become aware of motorcyclists, regarding them with the same respect as any other vehicle traveling the highways of this country; and WHEREAS, urging all of our community to become aware of the inherent danger involved in operating a motorcycle and give the operator the respect on the road they deserve. NOW, THEREFORE, BE IT RESOLVED, that I Oscar Trevino, Mayor of the City of North Richland Hills, Texas do hereby proclaim the month May 2008 as "MOTORCYCLE SAFETY AND AWARENESS MONTH" in the City of North Richland Hills. IN WITNESS WHEREOF, I have hereunto set my hand and caused the seal of the City of North Richland Hills to be affixed this the 28th day of April 2008. Oscar Trevino, Mayor CITY OF NORTH R/CHLAND HILLS Department: City Secretary Council Meeting Date: 4-28-2008 Presented by: Diane Spradling and Councilman John Lewis Agenda No. A.5 Subject: Special Presentation(s) and Recognitions) -Keep NRH Beautiful Yard of the Month Awards presented by Councilman Lewis AREA 1 Jody Lewis, 3817 Diamond Loch West AREA 2 Danny & Carolyn Daniel, 6704 Oliver Dr. AREA 3 Joe & Roxanna McIntosh, 4817 Fairway Ct. AREA 4 Margaret Brosco, 7721 Noreast AREA 5 Sherry Chadwick, 8320 Dude Court AREA 6 David & Roseann Cady, 6921 Little Ranch Road AREA 7 Kent Cooley, 8724 Amundson Dr. AREA 8 Don & Betty Burkett, 7909 Bridlewood Dr. AREA 9 ~ginia Walton, 8625 Twisted Oaks Business Landscape Winner Green Mamas Garden Center. 5324 Davis Blvd. CITY OF NORTH R/CHLAND HILLS Department: City Secretary Council Meeting Date: 4-28-2008 Presented by: Agenda No. A.6 Subject: Citizens Presentation An opportunity for citizens to address the City Council on matters which are not scheduled for consideration by the City Council or another City Board or Commission at a later date. In order to address the Council, please complete a Public Meeting Appearance Card and present it to the City Secretary prior to the start of the Council meeting. The Texas Open Meetings Act prohibits deliberation by the Council of any subject which is not on the posted agenda, therefore the Council will not be able to discuss or take action on items brought up during the citizens presentation. CITY OF NORTH R/CHLAND HILLS Department: City Secretary Presented by: Council Meeting Date: 4-28-2008 Agenda No. A.7 Subject: Removal of Item(s) from Consent Agenda CITY OF NORTH R/CHLAND HILLS Department: City Secretary Council Meeting Date: 4-28-2008 Presented by: Agenda No. B.0 Subject: CONSIDER APPROVAL OF CONSENT AGENDA ITEMS All consent agenda items listed below are considered to be routine items deemed to require little or no deliberation by the City Council and will be voted on in one motion. There will be no separate discussion of these items unless a Council Member so requests, in which event the item will be removed from the Consent Agenda and considered. CITY OF NORTH R/CHLAND HILLS Department: City Secretary Council Meeting Date: 4-28-2008 Presented by: Agenda No. B.1 Subject: Approval of Minutes of April 14, 2008 City Council Meeting Recommendation: To approve the minutes of the April 14, 2008 City Council Meeting. MINUTES OF THE WORK SESSION AND REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, HELD IN THE CITY HALL, 7301 NORTHEAST LOOP 820 -APRIL 14, 2008 WORK SESSION The City Council of the City of North Richland Hills, Texas met in work session on the 14th day of April, 2008 at 5:45 p.m. in the Council Work Room prior to the 7:00 p.m. regular Council meeting. Present: Oscar Trevino Mayor Suzy Compton Mayor Pro Tem, Council Place 3 John Lewis Council, Place 1 Ken Sapp Council, Place 2 Tim Barth Council, Place 4 David Whitson Council, Place 5 Scott Turnage Council, Place 6 Tim Welch Council, Place 7 Staff Members: Larry J. Cunningham City Manager Ogden Bo Bass Assistant City Manager Jared Miller Assistant City Manager Patricia Hutson City Secretary Monica Solko Assistant City Secretary George Staples City Attorney Mary Peters Public Information Officer Elizabeth Reining Assistant to City Manager John Pitstick Director of Planning & Development Larry Koonce Finance Director Mike Curtis Public Works Director Eric Wilhite Chief Planner Vickie Loftice Parks and Recreation Director Andy Jones Fire Chief Kirk Marcum Assistant Chief -Fire Marshal Jo Ann Stout Neighborhood Services Director Dave Pendley Building Official Jamie Brockway Purchasing Manager Absent Karen Bostic Managing Director Call t~ (~rcler Mayor Trevino called the work session to order at 5:45 p.m. A.1 Discuss Items from Regular City Council Meeting There were no items discussed. A.2 IR 2008-045 Iron Horse Golf Course Master Drainage Plan Update Mr. Jared Miller, Assistant City Manager, presented a PowerPoint presentation reviewing previous improvements to the golf course. Some erosion improvements were made in the late 1990s and in 1999 the Drainage Master Plan identified high priority and low priority projects. The high priority projects were completed in 2002. The improvements included two slope projection projects and three bridge projects along Big Fossil Creek and Singing Hills Creek where erosion had negatively affected the appearance and playability of the golf course. During the past several years some of the low priority projects have become high priority and after the June 2007 floods, two areas were identified as needing emergency improvements. The current Golf Course Drainage Improvement project consists of making two emergency improvements and updating the 1999 Master Drainage Plan. The two emergency improvement projects are located at Hole 10 and Hole 7. The project design is completed, the bid documents are being prepared and the project completion date is September 2008. Mr. Richard DeOtte, DeOtte Engineering, reviewed with Council the methodology for the 1999 Master Plan and update to the plan. Mr. DeOtte presented to Council some of the new high priority projects that were identified during the update of the Master Plan. Council briefly discussed the needed improvements. A.3 IR 2008-042 Update of 2006 International Building and Fire Codes, 2005 National Electrical Code A PowerPoint presentation was presented highlighting upcoming changes for Council approval to the 2006 International Building Code, the 2005 National Electrical Code and the 2008 International Fire Code. Mr. Pendley, Building Official, reviewed some of the proposed amendments to the Building and Electrical Code and Mr. Marcum, Assistant Fire Chief, reviewed some of the proposed amendments to the Fire Code. The purpose of the updates is to remain current on latest technologies and construction methods. In addition, there are state mandates requiring the update of the building code and other surrounding communities are also moving towards the adoption of the 2006 International Codes. The updates also improve the City's Insurance Services Organization (ISO) rating. ISO ratings range from 1 (best) to 10 (poorest) and directly influence the rate that building owners are charged for property insurance as well as influence the city's floodplain program rating. The City's Inspection Division's ISO rating for residential was recently lowered from 5 to 4 and the commercial rating was lowered from 5 to 3. The adoption of these Codes will help the City gain even more positive ratings. Staff will be meeting with the Technical Review Committee (Construction Board of Appeals) for their approval and recommendations prior to Council adopting the Codes. Staff anticipates that the adoption of the Codes will be brought to Council for approval at either the April 28 or the May 12 Council meeting. Staff also plans to bring the 2006 versions of the International Residential Code, International Plumbing Code, International Mechanical Code, International Fuel Gas Code and the Energy Conservation Code to Council for adoption later this spring. Council concurred with Staff moving forward with the proposed updates to the codes. A.4 IR 2008-023 Neighborhood Services Year End Report Ms. JoAnn Stout, Neighborhood Services Director, presented a PowerPoint presentation highlighting the Year End Report for the department. In response to Council's goals in 2003 to focus on redevelopment and revitalization of residential neighborhoods, the Neighborhood Services Department implemented several new programs to meet Council's goals. The Neighborhood Initiative Program implemented in 2004 helps seniors, single parents and individuals with disabilities with home repairs. The Neighborhood LOOKS program implemented in 2006 educates citizens on code violations and focuses on targeted areas to abate nuisance violations. The Community Action Team "CAT" program implemented in 2008 will identify and focus on targeted areas to abate substandard housing conditions. Two high grass control individuals are in the process of being hired, which will allow the Code Officers to focus on addressing nuisance violations and substandard housing in the targeted areas. Within the past four years, Code Enforcement has increased its quantity and quality of inspections by over 300%, Consumer Health has increased their inspections by over 200% and less than 1 % of all code violations have resulted in a citation being issued. EXECUTIVE SESSION -The City Council may enter into closed Executive Session to discuss the following as authorized by Chapter 551, Texas Government Code B.1 Pursuant to the provisions of Section 551.072, Texas Government Code to deliberate the purchase, exchange, lease or value of real property: mineral leases of City property Mayor Trevino announced at 6:25 p.m. that the Council would adjourn to Executive Session pursuant to the provisions of Section 551.072, Texas Government Code to deliberate the lease of municipal real property for mineral development. C.0 Adjournment Mayor Trevino announced at 6:37 p.m. that the Council would adjourn to the regular Council meeting. REGULAR COUNCIL MEETING A.0 CALL TO ORDER Mayor Trevino called the meeting to order April 14, 2008 at 7:00 p.m. ROLL CALL Present: Oscar Trevino Suzy Compton John Lewis Ken Sapp Tim Barth David Whitson Scott Turnage Tim Welch Staff: Larry J. Cunningham Ogden Bo Bass Patricia Hutson Monica Solko George Staples Mayor Mayor Pro Tem, Council Place 3 Council, Place 1 Council, Place 2 Council, Place 4 Council, Place 5 Council, Place 6 Council, Place 7 City Manager Assistant City Manager City Secretary Assistant City Secretary Attorney A.1 INVOCATION Councilman Whitson gave the invocation. A.2 PLEDGE OF ALLEGIANCE Councilman Whitson led the pledge of allegiance. A.3 SPECIAL PRESENTATION(S) AND RECOGNITIONS) Presentation of "Child Abuse Prevention Month" Proclamation presented by Councilman Sapp Councilman Sapp presented a proclamation to Nancy Hagan, Executive Director of Alliance for Children, proclaiming the month of April as Child Abuse Prevention Month. A.4 CITIZENS PRESENTATION None. A.5 REMOVAL OF ITEM(S) FROM THE CONSENT AGENDA None. B.0 APPROVAL OF CONSENT AGENDA ITEMS APPROVED B.1 APPROVAL OF MINUTES OF MARCH 17, 2008 CITY COUNCIL MEETING B.2 FP 2007-20 CONSIDERATION OF A REQUEST FROM COMPASS REALTY TO APPROVE A FINAL PLAT OF LOTS 1-7, BLOCK 1, WILDWOOD BUSINESS PARK ADDITION (LOCATED AT THE NORTHEAST CORNER OF MID CITIES BOULEVARD AND CARDINAL LANE - 2.77 ACRES) B.3 PU 2008-009 AWARD BID #08-014 TO SKY CONSTRUCTION IN THE AMOUNT OF $63,388.00 FOR THE GATE AND FENCE REPLACEMENT PROJECT. B.4 PU 2008-010 AWARD OF BID # 08-022 TO COLE CONSTRUCTION, INC., IN THE AMOUNT OF $56,775 FOR THE J. B. SANDLIN PARK IRRIGATION IMPROVEMENTS. COUNCILMAN TURNAGE MOVED TO APPROVE THE CONSENT AGENDA. COUNCILMAN WHITSON SECONDED THE MOTION. MOTION TO APPROVE CARRIED 7-O. PUBLIC HEARINGS C.1 ZC 2008-01 PUBLIC HEARING AND CONSIDERATION OF A REQUEST FROM BARRETT AND JENNIFER BLACKBURN TO APPROVE A ZONING CHANGE OF TRACT 14f, ABSTRACT NO. 1266 FROM "AG" AGRICULTURAL TO "R-1" SINGLE FAMILY RESIDENTIAL (LOCATED AT 7525 KIRK ROAD - 0.921 ACRES) -ORDINANCE NO. 2987 APPROVED Mayor Trevino opened the public hearing and called for the applicant to come forward. Roger Hart, 134 Sheffield Dr, Fort Worth, TX 76134 with Area Surveying came forward representing the applicants. The applicants would like to demolish the existing home in order to build a new home. The lot is zoned agricultural and applicants would like to change zoning to residential. Eric Wilhite, Chief Planner, presented the item. The applicants, Barrett and Jennifer Blackburn are requesting approval of a zoning change fora 0.921 acre tract of property located on Kirk Road. The property currently occupied by an older wood framed house which the applicant indicates will be removed. By zoning the property to "R-1" Single Family, the applicants intend to construct a new single family residence. The subject property is also in the review process for plat approval. Both of these efforts will bring the property into conformance with residential land use regulations. The Planning and Zoning Commission recommended approval of the rezoning request by a vote of 7-0 Mayor Trevino called for anyone wishing to speak for or against the request to come forward. There being no one wishing to speak, Mayor Trevino closed the public hearing and called for the motion. COUNCILMAN SAPP MOVED TO ACCEPT THE RECOMMENDATION OF THE PLANNING AND ZONING COMMISSION AND TO APPROVE ORDINANCE NO. 2987. COUNCILMAN WELCH SECONDED THE MOTION. MOTION TO APPROVE CARRIED 7-O. PLANNING & DEVELOPMENT D.1 FP 2007-19 CONSIDERATION OF A REQUEST FROM JOHNSON DIVERSIFIED ENTERPRISES, INC. TO APPROVE A FINAL PLAT CONTAINING 96 LOTS, WEST HIGHTOWER PLACE ADDITION AND TO APPROVE RESOLUTION NO. 2008-020 AUTHORIZING THE CITY MANAGER TO EXECUTE A DEVELOPMENT AND MAINTENANCE AGREEMENT. (LOCATED IN THE 6700 BLOCK OF HIGHTOWER DRIVE - 22.34 ACRES) APPROVED Eric Wilhite, Chief Planner, presented the item. The applicant, Ben Johnson of Johnson Diversified Enterprises, Inc., is requesting approval of a final plat for this R-PD (Residential Planned Development). The site contains 22.34 acres located near the southeast intersection of Rufe Snow Drive and Hightower Drive. This request is for platting of the 96 lot residential development that was approved for R-PD zoning recently. The proposed plat includes the 96 single-family lots and 5 primary common open space lots as specifically approved in the site plan design guidelines established in the residential planned development regulations. The drainage from West Hightower Place is proposed to enter into an adjoining off-site drainage channel that will be incorporated into the future Graham Ranch, Phase III, Addition and connect into the existing channel within the Graham Ranch, Phase I, Addition. This drainage channel is divided into two sections: a north channel and a south channel. The south channel is proposed to be the same as the existing channel within the Graham Ranch, Phase I, Addition. This south channel will have a concrete pilot channel, landscaping, irrigation and sidewalks long the top of the bank in accordance with the City's design criteria. The north channel is proposed as an earthen channel without the amenities included as part of the south channel; the amenities will be added with the development of the future Graham Ranch, Phase III, Addition. In order for the West Hightower Place drainage to enter the off-site drainage channel, an agreement executed by all affected property owners and the City needs to be executed. These affected property owners are Graham Ranch Partners, LTD, Johnson Diversified Enterprises, Inc. and Billy & Ernestine Graham. The agreement defines the roles and responsibilities of each party in the construction and maintenance of both the north and south channels. This development and maintenance agreement defines the responsibilities of each party; the key responsibilities of each party are: • Graham Ranch Partners, Ltd. -Agrees to amend the current watercourse maintenance agreement (approved by City Council on September 26, 2005 for the development of Graham Ranch, Phases I & II) to include maintenance responsibilities for the south channel. The revised watercourse maintenance agreement will be brought to a future City Council meeting after the appropriate drainage easement has been dedicated to the City of North Richland Hills. • Johnson Diversified Enterprises, Inc. -Agrees to construct the north and south channels in accordance with City approved construction plans. • Billy & Ernestine Graham -Agree to dedicate a public drainage easement for each section of channel upon completion of the channel improvements and acceptance of such improvements by the City of North Richland Hills. Additionally, the Grahams agree to maintain the north channel. • City of North Richland Hills -Agrees to review construction plans for the proposed channels. The Planning and Zoning Commission recommended approval of final plat by a vote of 7-0. Mayor Trevino called Ben Johnson the developer to come forward to discuss drainage issues that had been brought before Council by area neighbors during the platting process of this project. Ben Johnson, 1712 Oak Knoll, Colleyville came forward. He stated that the drainage issues brought by area neighbors had been addressed. COUNCILMAN WHITSON MOVED TO APPROVE FP 2007-019 AND RESOLUTION NO. 2008-020. MAYOR PRO TEM COMPTON SECONDED THE MOTION. MOTION TO APPROVE CARRIED 7-O. PUBLIC WORKS E.1 PW 2008-010 APPROVE ENGINEERING AGREEMENT WITH NEEL-SCRAPPER FOR THE DESIGN OF THREE TRAFFIC SIGNAL LIGHT PROJECTS FOR AN AMOUNT NOT TO EXCEED $74,300 -RESOLUTION N0.2008-022 APPROVED Mike Curtis, Public Works Director, presented the item. An engineering agreement for the design of three traffic signal lights located at the intersections of Precinct Line Road/Amundson Drive, Precinct Line Road/Rumfield Road, and Davis Boulevard/Bursey Road is proposed for Council consideration. All three intersections were approved for traffic signal lights in the 2007/08 CIP Budget. This portion of the project will consist of the design of the new traffic signals. Requests for qualifications were mailed to over 20 engineering firms. Five firms submitted qualifications for consideration. A review committee reviewed the qualifications of the firms and ranked them based on qualifications, such as similar projects and the experience of the project team. After conducting interviews with the top three firms, Neel-Schaffer demonstrated by their qualifications that they have the experience and a thorough understanding of the design work needed for the three traffic signal lights. Their work load and ability to meet the City's schedules were also clearly shown. Nell-Schaffer has worked with the City previously on similar projects, most recently with the Chapman Road/Holiday Lane/Meadow Road intersections. Since the new traffic signals are located on Texas Department of Transportation (TxDOT) rights-of--way, the construction plans will need to be approved by TxDOT. This process will add to the overall design duration. The engineer with Neel-Shaffer has indicated that he plans to have the design submitted to TxDOT within 30 to 60 days after approval of the engineering agreement by the city. COUNCILMAN WELCH MOVED TO APPROVE PW 2008-010 AND RESOLUTION NO. 2008-022. COUNCILMAN TURNAGE SECONDED THE MOTION. MOTION TO APPROVE CARRIED 7-O. E.2 PW 2008-011 APPROVE ENGINEERING AGREEMENT WITH LEE ENGINEERING FOR THE SIGNAL TIMING SYNCHRONIZATION PROJECT FOR MID-CITIES BOULEVARD AND BOULEVARD 26 IN THE AMOUNT NOT TO EXCEED $80,000 - RESOLUTION N0. 2008-021 APPROVED Mike Curtis, Public Works Director, presented the item. An engineering agreement for the design of signal timing plans along the Boulevard 26 and Mid-Cities Boulevard corridors is being proposed for Council consideration. This project was approved in the 2007/08 CIP Budget. The project will involve the optimization of signal timing plans at 23 intersections on the Mid-Cities Boulevard and Boulevard 26. The intent of the project is to develop, implement, and fine-tune optimized signal timing plans to provide for progression of traffic during the peak hours of the day. The justification for the project is due to the significant changes that have taken place in traffic patterns since the completion of the 2005 timing plans. Updated timing plans will decrease motorist delays, fuel consumption and traffic congestion. Requests for qualifications were mailed to over 20 engineering firms. Four firms submitted qualifications for consideration. A review committee reviewed the qualifications of the firms and ranked them based on qualifications, such as similar projects and experience of the project team. Lee Engineering was selected for the project. They demonstrated that they have the knowledge and experience for designing like projects. Lee's staff has completed numerous signal timing plan projects on roadways in the Dallas-Fort Worth Metroplex. Their Statement of Qualifications showed their project-relevant experience and their ability to meet the requirements of this project. Lee Engineering has also designed seven signalized intersections in the City. COUNCILMAN LEWIS MOVED TO APPROVE RESOLUTION NO. 2008-021. COUNCILMAN EARTH SECONDED THE MOTION. MOTION TO APPROVE CARRIED 7-O. GENERAL ITEMS F.1 GN 2008-025 AUTHORIZE THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH BARBARA GRYGUTIS IN THE AMOUNT OF $149,000 FOR A PUBLIC ART COMMISSION AND INSTALLATION FOR THE GRAND AVENUE PARK PLAZA - RESOLUTION N0.2008-018 APPROVED Mayor Trevino announced that the item being discussed is an enhancement to the new library park plaza and the grand opening for the new NRH Public Library is Saturday, April 19t" and everyone is invited to join in the ribbon cutting. Mayor Trevino called on Vickie Loftice to come forward and present the item. Vickie Loftice, Parks and Recreation Director, presented the item. The approved 2007/08 Capital Improvement Program includes funding for public art within the Grand Ave Park Plaza. The park plaza is currently under design with construction expected to begin this October. The public art commission will be an important feature within the park plaza signifying arrival into the HomeTown NRH commercial and residential subdivision. For the past few months, staff has researched potential artists that have produced outdoor public art within an urban mixed use development. After reviewing several potential artists with qualifications and experience related to the above criteria, staff is recommending Barbara Grygutis for the public art commission. Barbara has a history of designing large scale, site-specific public art that is thematically based with strong visual statements about the communities for which the public art was created. Within the sculptural elements of her designs the viewer will notice interplay between art and nature. MAYOR PRO TEM COMPTON MOVED TO APPROVE RESOLUTION NO. 2008-018. COUNCILMAN WHITSON SECONDED THE MOTION. MOTION TO APPROVE CARRIED 7-O. F.2 GN 2008-027 APPOINTMENT TO TEEN COURT ADVISORY BOARD -PLACE 7 APPROVED Patricia Hutson, City Secretary presented the item. The Place 7 position on the Teen Court Advisory Board is currently vacant. Councilman Welch is recommending the appointment of Anita Jones to fill the vacancy with the term expiring June 30, 2009. COUNCILMAN WELCH MOVED TO APPOINT ANITA .JOHNSON TO PLACE 7 ON THE TEEN COURT ADVISORY BOARD. COUNCILMAN SAPP SECONDED THE MOTION. MOTION TO APPROVE CARRIED 7-O. G.1 ACTION ON ANY ITEM DISCUSSED IN EXECUTIVE SESSION LISTED ON WORK SESSION AGENDA 1) TO CONSIDER AND ACT UPON MINERAL LEASES OF CITY PROPERTY - RESOLUTION N0.2008-023 Bo Bass, Assistant City Manager, presented the item. Chesapeake Energy Corporation has approached the City with interest in leasing property around Walker Creek in central North Richland Hills. Mineral lease terms include bonus of $10,000 per acre (40 acres - $408,880), a 2 year term and 25% royalties. No surface drilling is part of this proposed lease. COUNCILMAN WHITSON MOVED TO APPROVE RESOLUTION NO. 2008-023. COUNCILMAN LEWIS SECONDED THE MOTION. MOTION TO APPROVE CARRIED 7-O. H.1 INFORMATION AND REPORTS Councilman Turnage made the following announcements. Join us at 10 a.m. on Saturday, April 19th for the grand opening of the new North Richland Hills Public Library. There will be dedication speeches and a ribbon cutting, followed by tours of the new facility. The new library is located at 9015 Grand Avenue. For more information, please call 817-427-6800. The Sounds of Spring Concert Series continues every Friday night through May 9th at NRH2O. Gates open at 6 p.m. and the concerts begin at 7 p.m. Admission is FREE. Remember to bring blankets and lawn chairs. For more information, call 817-427-6600 or visit www.soundsnrh.com. Don't forget to register your team for Companies in Action presented by Health Markets. The Companies in Action bowling competition is scheduled April 19th and a 5K Fun Run will be held May 10th. For more information, please call 817-427-6600. Kudos Korner -Officer Travis Peck, Police Department. A resident recently called to commend Officer Peck for his assistance with, and swift resolution of, an issue at his home. The resident said Officer Peck was the most professional officer he has dealt with in Tarrant County and he is sure to rise through the ranks very quickly due to his work ethic and high standard of performance. H.2 ADJOURNMENT Mayor Trevino adjourned the meeting at 7:39 p.m. Oscar Trevino -Mayor ATTEST: Patricia Hutson, City Secretary CITY OF NORTH RICHLAND HILLS Department: Finance Presented by: VLoftice/LKoonce Council Meeting Date: 4-28-2008 Agenda No. B.2 Subject: PU 2008-012 Award Bid #08-023 for Sections A & C for Annual Food Services to C.D. Hartnett Co., and reject Section B Request for Bids were solicited for an annual contract to supply food items for a twelve (12) month period with options to extend the agreement for five (5) additional twelve (12) month periods. Suppliers will be allowed to submit price increases for consideration sixty (60) days prior to the expiration of the current term. Bidders were requested to submit prices on a list of specific food items as well as specific brands that were high volume over the past year. Evaluation factors include brand of food item offered, price, quality, and customer service response. Notice of the Intent to Bid was advertised in local newspapers, as required by State Statute and posted on the City Website. Eighteen (18) vendors were contacted and requested to participate in this process. Bid specifications were viewed on the City Website by five (5) additional vendors. Three (3) bids were received from the following firms: C. D. Hartnett Ben E. Keith Performance Food Group The bid specification was issued with a Section "A" for the NRH2O Water Park, Section "B" for the Cup and Chaucer and Section "C" for the Police Department Detention Facility. Staff recommends that Section "A" and Section "Cn be awarded to C. D. Hartnett Co. based on the evaluation factors listed above including the lowest overall proposed prices. Performance Food Group case/packaging price was higher which eliminated them from the evaluation process; leaving C. D. Hartnett and Ben E. Keith. After adjusting the bid for items that were not bid on by either C. D. Hartnett or Ben E. Keith, C. D. Hartnett had the lowest price proposal for Section A and Section C. None of the Vendors were able to meet all the specification for Section B and it is recommended that all bids for Section B be rejected. Staff is recommending C.D. Hartnett be awarded Section A for the NRH2O Water Park and Section C for the Police Department Detention Facility. Section B for the Cup and Chaucer cafe will not be awarded. The Cup and Chaucer has an agreement with Starbucks to serve Starbucks products. The vendors who submitted were unable to supply Starbucks products. C. D. Hartnett Co. comes with solid credentials and is the food supplier for the Birdville Independent School District and the University of North Texas. C.D. Hartnett was also the food supplier for the NRH2O Water Park and Police Department Detention Facility during the previous year. The company was established in 1904 and is headquartered in Weatherford Texas with a distribution center in Fort Worth. An attachment has been provided showing the bid comparisons. Recommendation: Award Bid #08-023 for Sections A & C for Annual Food Services to C.D. Hartnett Co., and reject Section B Section A - 2008 NRHzO Food Service Analysis Ben E. Keith C. D. Hartnett Performance Food Group Core Food Total $113,019.26 $105,522.79 $120,524.00 Candy Total $2,963.76 $2,756.17 $3,843.78 Specialty Snacks Total $11,833.70 $10,671.80 $16,409.30 Chemical Total $701.12 $645.24 $836.53 Bread Total $7,157.52 $8,132.69 $8,779.95 Paper/Dry Goods Total $12,527.62 $10,275.70 $14,523.27 Ice Cream $288.00 $178.47 $288.27 Food Total $148,490.98 $138,182.86 $165,205.10 Adjusted w/out Candy $145,527.22 $135,426.69 $161,361.32 Adjusted w/out Bread $138,369.70 $127,294.00 $152,581.37 Food Bid Total $138,369.70 $127,294.00 $152,581.37 Section B: Bids rejected Section C-Police Department Detention Facility VENDOR C D Hartnett Ben E Keith Foods Description Unit Price Unit Price 'FROZEN FOODS ~~~~y,~~~ ,, Corn Dogs All Meat $11.14 $11.22 CASE PACK 3612.75 oz. 36/2.75 oz. Pizza Pepperoni 5" Deep Dish $43.89 $51.02 CASE PACK 54/6.25 oz. 54/6.25 oz. Hot Pockets -Ham & Cheese $20.20 $20.26 CASE PACK 24/5 oz. 24/5 oz. Hot Pockets -Beef & Cheddar $20.20 $16.50 CASE PACK 24/4 oz. 24/4 oz. Burrito Beef & Cheese $27.62 $45.30 CASE PACK 48/5 oz. 48/5 oz. Owens Sausage & Biscuit $14.99 $16.26 CASE PACK 24/4 oz. 24/4 oz. CAN~GOODSDESSERT Applesauce Fancy NW $19.21 $23.16 CASE PACK 6/6 Ib. 6/10 Ib. Fruit Cocktail Choice $31.49 $29.21 CASE PACK 6/6 Ib. 6/10 Ib. Muffins, Blueberry & Banana Nut $37.18 $36.35 CASE PACK 96/2.13 oz. 96/2.13 oz. MISCELLANEOUS,FOODS y Chips, Potato -Regular $21.52 $22.08 CASE PACK 60/1.5 oz. 60/1.5 oz. Chips, Doritos -Regular CASE PAC K $21.52 $22.08 60/1.5 oz. 60/1.5 oz. $21.52 $22.08 60/2 oz. 60/2 oz. Chips, Fritos -Regular CASE PACK Chips, Cheetos -Regular $21.52 $22.08 CASE PACK 60/2 oz. 60/2 oz. Kellogg's Assorted Cereal Box $30.57 $34.88 CASE PACK 96 ct. 70 ct. Honey Buns $24.27 No Bid CASE PACK 80/2.75 oz. 80/2.75 oz. TOTALS SECTION C $366.84 $372.48 CITY OF NORTH RICHLAND HILLS Department: Finance Presented by: MCurtis/LKoonce Council Meeting Date: 4-28-2008 Agenda No. B.3 Subject: PU 2008-013 Renew Annual Contract for Rights-of-Way Mowing Services with TruGreen LandCare Each year in the approved budget, Council appropriates funds for mowing services for rights-of-way, medians, drainage channels, water tower and pump station sites. Formal bids were solicited and a contract to provide these services were approved during the May 22, 2006 Council Meeting. Council awarded the annual contract to TruGreen LandCare. The initial term of the contract was for a period of one (1) year and included an option to renew for two (2) additional twelve (12) month terms. TruGreen LandCare renewed their first twelve (12) month extension option with the City with no increase in their price. TruGreen LandCare is requesting a 3.83% price increase for the final twelve (12) month renewal option due to the substantial increase in fuel since 2006. TruGreen LandCare has done a very good job for the City, and Public Works supports their contract extension. The Purchasing Department has reviewed the current contract that is in place and recommends renewing with TruGreen LandCare for the final twelve (12) month option. The pricing submitted for this final term is still fiscally beneficial to the City. There has been a substantial increase in fuel costs over the last two (2) years, TruGreen LandCare's request fora 3.83% rate increase is reasonable; and the requested increase is in compliance with the terms of the original bid document. Recommendation: Renew Annual Contract for Rights-of--Way Mowing Services with TruGreen LandCare. TRUGREEN LandCare rltin::1~is. Jamie Brockway April 8th, 2008 City of N, Richland Hills Purchasing Department P.D. Box 820609 1Vorth Richland Hills, Texas 76182-0649 Re: Renewal of Agreement -- RFB No. U6-1310 Dear Ms. Brockway, Please accept this letter as communication of TruGreen Landcare's .response to the extension of the above referenced RFB No. 06-1310 for the second renewal period. As requested in the extension offer letter, below are the price adjustments that we will need to become effective for the second renewal period. TruUreen Landcare is proposing that upon renewal of above referenced contract, an increase to the current established pricing of 3.834°~o which is Consistent with the Producers Price Index statistics as published by the Tepartment of Labors Bureau of Statistics. As you have noticed in the past, TruGreen Landcare makes every effort to minimize or negate the necessity for a price increase, however, due to the cost increases we have incurred, primarily in the categories; of Fuel and Wages. TruGreen Lands it necessary to seek this increase. Pricing to become effective June 1, 2408 through May 31, 2449 as outlined below..... Class I (3b cycles) -Current price - S8I,207,3fi Renewal Price - 584,320,85 Class li (18 Cycles) -Current Pricing - $49,549,97 Renewal Price - $S ],449.72 Class III (12 Cycles) ~- Current Pricing - $19,SS2.fi7 Renewal Price • 520,302.32 Clays IV (5 cycles) -Current Pricing, - ~ 1 S,105.00 Renewal Price - ~ 15,684.13 Total of Class 1, il, III, & 1V -Current Pricing 5165,415.00 Renewal Price- X171,757.02 As always, it is a p]easure working with you and the entire staff ai the City of North Richland Hills. We at TruGreen Landcare are appreciative of our business relationship and look forward to serving the City of NR1°1 on this as well as any other projects we moray be of assistance on. Respectfully, Tim ivleyer Branch ivianager ~'ruGreen Landcare ti=emorandum To: lim~ny Cates Dept Public Works From: Jamie Brockway, Purchasing Manager t~be-: 03I251U8 Re: Renewal of AG-1310 Annual Contract for Right-of Way Contract Mowing The above referenced contract will expire on May 23, 2008. This contract included two (2) options to renew for two (2) additional one { 1) year tetras. This final rrnewal term would commence May 24, 2008 and would expire May 23, 2009 1f you wish to exercise this final option to renew and continue this contract with TruGreen Landcare for one more year, please check the appropriate boxes bt:low and fax this form back to me at {8 i 7) 24~-b 1 ~ 1 ai your earliest convenience. Yes, I wish to continue the current contract with the above mentioned provider for the final renewal term of the contract. No,1 do not wish to continue the current contract with the provider for the following reason(s). 5TGNATUKE; ~ ~_~._.._.._.._.__~_ _- I)A"I'E,: ..~" a2 S ^ 2 OCR ~,. P~rcisasing CI'~,1 O1 ~~~1\11111~~,+~~~laL~1~~~i~~ ;March 25.2008 TruGrccn Landca~re Mr. I Yarold Hackney 2550 Acrner Street Fort Worth "i X 7b 11 I R.~: Rr~ No, t14-1't 1 ~ AnstaiPf C.nti~tre~c~ fear Ri~?ht~+~f-W~v Mc+v+ring Servic~x Dear Mr. Haclcncy: The above referenced conlrs~ct was for twelve { 12) months with two (2) options to renew fur aciditionsl twzlro { 12) months tech. The original contract was for the period of .lure 1,2406 through May 31, 200? and tlu first renewal will expire on May 31, 20d)g. '1`hc clfcctivc dates for the iinel renewal option will run from tune 1, 2008 through May 31, 2009. l~hc North Richland Hills Purchasing Depexm~nt hereby extrnds an invitation to '1'ruC#rncn t,andcare to accept tl~e line! option far an additional twelve (l2) month pttiod for this contract as awarded o1~ May 2Z, 2006. Plcaav mark the approprit~tc response below and provide your signa~htre above your printed ,nt~~nc. All prices must remain firm far the Uptiou Re~uwal period through May 31, 2009. ( .)Yes, TruGrcen Landcara will 1ccept the offer to extend the same contract pricing and discounts through May 31, 2009. {,~} Y~,, TruCroen Landcare will mecept the offer to rxtrnd the contract upon accepter of the enclosed price iwcr+~ase request. (The wntcnctor shall submit the rer-ewaa proposal with price changes, sad justification for price inerrase to the Purchasing Departmcut. Incrc~tscs in contract pricinb shall not exceed the Cl'1 of thla~ UFW xtandard ~seo f 3 ~34v'~ ~ s ~hw~~`fihdtke pvAL d ~~ ct~t DFW ~4 ~ . (~) ?~'o, TntC~recn i.andcarc will NOT accept the oftrr to extend tMe rune contract pricing through May 31, 2409. Please .fax you signed response to ($i 7~ 427-6151 by sprit 4, 2008. if you have any question, please contact me at (8l7) 427-G1fi5 or email meat jh~kyvav a nrhlx.~rti 5iaceraly, lair &oc~twaty, t'utctt~tng ~~ tlaroid Hackney ~7"titt~d'/. /M~r~-~j~,/' Ci~y of North tiict~tsad 11111s 1'n~Cir~ t.ac~clcare g ~,~ 'li'o6/'a~v L.IWJ~- ~'. ~;Q, (}q,~ 8~t~ * NoAn Rit~ilatxl E 1ii13 'itx.» 7G1G2.OG09 7301 Nr~rttxsasi Loop 820 .t t81~i y ~::~ t•81 s{t r ~c"1% ($ i ~ 42 p..G 1 ~ 1 CITY OF NORTH R/CHLAND HILLS Department: Finance Presented by: JPerdue/LKoonce Council Meeting Date: 4-28-2008 Agenda No. B.4 Subject: PU 2008-014 Renew Annual Contract for Uniform Cleaning Services with Dry Clean Super Center Each year in the approved budget, Council appropriates funds for uniform cleaning services. On May 29, 2007 Council awarded Bid No. 07-1383, Annual Contract for Uniform Cleaning Services to Dry Clean Super Store on Rufe Snow (PU2007-026). These services are required by the Police Department, Municipal Court and the Neighborhood Services Humane Division. Approximately 2,000 pieces per month are delivered to the vendor by City Employees for cleaning and laundry services. Dry Clean Super Center located on Rufe Snow submitted the lowest qualified pricing and has met all the specifications and general conditions of the current contract. The initial term of the contract was for a period of twelve (12) months and included options to extend for three (3) additional twelve (12) month terms if it remains beneficial to the City. Staff has recommended that the contract for the cleaning and laundry services be renewed with Dry Clean Super Center. The vendor has notified Purchasing in writing that their prices will remain firm until May 31, 2009. The Purchasing Department has reviewed the current contract that is in place and recommends renewing with Dry Clean Super Center for another twelve (12) month period. Recommendation: Authorize Contract Renewal with Dry Clean Super Centers for the Uniform Cleaning Services. CITY OF NORTH RICHLAND HILLS Department: Finance Council Meeting Date: 4-28-2008 Presented by: LKoonce Agenda No. B.5 Subject: PU 2008-015 Award Bid No. 08-020 for Sports and Work Wear Section A, C and D to Impress Designs and Section B to Promos Distributors Formal bids were solicited for an annual contract to supply various types of sports and work wear. T-Shirts, golf shirts and work wear are used by various City departments as part of their uniform. Parks and Recreation purchases items for the various sport leagues and special events. Notice of the Intent to Bid was advertised in local newspapers, as required by State Statute and posted on the City Website. Four (4) vendors were contacted and requested to participate in this process. Bid specifications were viewed on the City Website by additional vendors. Eight (8) bids were received from the following firms: Active Impressions A - T Shirts Co. Impress Designs Inline Promotions Promos Distributors R4 Industries RT & Associate Uniforms Mfg. Vendors were asked to submit a percentage off the manufactures retail catalog/price sheets with the products broken down into the different sections list below: Section "A" -Sports Wear Section "B" - T-Shirts Section "C" -Edward Uniforms Section "Dp - Dickie's Uniforms Awarding this by Section will allow the City to be able to choose any item from the vendor's catalog and not be limited to specific types, colors or brands. Miscellaneous services such as silk screening, embroidery and creating the artwork that may be required were included in the specification. Bidders were also requested to submit samples of artwork their company has created for other customers. Purchasing is recommending that sections A, C and D be awarded to Impress Designs and that the T-Shirts in Section B are awarded to Promos Distributors based on their lower cost for silk screening and artwork for the T-Shirts. Recommendation: Award Bid No. 08-020 Annual Contract for Sports and Work Wear Sections A, C and D to Impress Designs and Section B to Promos Distributors. Three Lowest Bidders Ems. v+~nc~r A~tirw~ Pt~om+as Dist, Imps ttetn Qesc~ip~i~ irnprsssi~ns inf. D~i~ns ~ECTiQAI A - SPt3RTS1NEAR Ariin~#Qn, TX Csrrt~iiton,TX Da#iss,TX CUBAVERA List /Catalog $44 2f3 533 58 533.58 Pnce . . 1 Sport Shirt -Women's 1 °,r° Discount 47°I° 40% 40% # CW 408 -size Medium Amount of Discount X20.81 X13.43 $13.43 Color -mink Net Pnce Each $23.47 52U.15 $20.15 JERZEES List dCatalog 10 78 8.53 8.53 Price . 2 Sport Shirt - ivlen's 1 °~° Discount 47°.f° 40°t° 40°~° J 100 - size X Large ~ Amount of Discount 85.07 53.41 $3.41 Color -Bimini Blue Net Price Each 55.71 5b.12 $5.12 VAN HEUSEN List iCatalog Price 38.42 27.75 27.75 3 Poplin Shin -den's 1 °~° Discount 47°.~0 40°.~° 40°l0 # 13V01 ~! 3 - size X Large Amount of Grscount 5.18.08 511.10 511.10 Color - Bav Lea# Net Price Each 52Q.36 516.fi5 $16.65 VAN HEUSEN List lCatalog 37 66 27 75 27.75 Pnce . . 4 Poplin Shirt -women's 1 °~o Discount 47°~~ 40°~° 40% 13V01 'l4 -size Medium Amount of Discount 517.70 811.10 811.10 Color -Pink Net Price Eaeh 519.9f 51 fi.GS $16.65 CROSS CREEK List ;Catalog Pnce 40.78 31.41 31.41 5 Sport Shirt -Men`s 1 °f° Discount 47°~0 40°/'0 40°~0 # CC9000 - size X Large Amount of Discount 519.17 X12 56 512.56 Color -Black Forest Net Price Each $21.61 518.85 $1$.85 CROSS CREEK List Catalog Price 20.88 20.79 20.79 6 Sport Shin -Women's 1 Q~° Discount 47U~O 40°I° 40% #6408 -size Large Amount of Discount 512.03 88.32 58.32 Color - Cornfl+c~wer Blue Net Price Each 514.25 512.47 $12.47 Descripbo~t Est, Vsn~ Acti~re R~'t~mos Cost, imp~esss IYem Imp~r~sic-ns inc. Ctesigns SECTION A - SPf?RTSWEAR Arlin~n +Csrr+altton Ctfslias IZC~D Ust JCatalog 560.90 ~-40.54 X40.54 Price 7 Sport Shirt -Men`s 1 °~° Discount 47°~° 40% 40°l0 # 3281 -size 2 X urge Amount of Discount X28.62 516.22 516.22 Golor -Creamy Yepow Net Price Each 5.32.28 524.32 $24.32 CHESTNUT HILL List (Catalog Price 542 56 531 98 $31.98 $ Poio -Men's 1 °,~° Discount 47°7~ 40°~'° 40% # CH150 - size X Large Amount of Discount X20.00 512.79 X12.79 Color - Merlot Net Price Each 522.66 519.19 $19.19 GiLDAN ~ list JCatalag Price $10.88 X8.46 $8.48 U Sparc Shlrt -Men's ~ % Di5cOUnt 47°io 40% 40°Io 2800 - size X Large Amount of Discount 55.02 X3.38 $3.39 Color -Sports Grey Net Pace Each 55.66 55.08 $5.09 t~UTERBANKS wtPC~LKET List JCatalag 22 82 20 4 20.4 Price . 'i 0 Palo -Men's 1 % Discount 47% 40°rc 40°A° # 2101 - size X Large Amount of Discount ~ 10.73 5$.16 $8.18 Color -Bright Royal Net Price Each 512.09 512.24 $12.24 ANti'I L List JCatalog 12.78 9.92 9.92 Price 11 Sport Shirt -Women's 1 °~° Discount 47°ro 40% 40°i° # 4680 - size X Large Amount of Discount 5lri.01 53.97 $3.97 Color -Red Net Pnce Each SG.77 55.95 $5.95 HARRiTUN List JCatalog Price 13.?$ 9.98 9.98 12 Poia -Men's 1 °~° Discount 47°~a 40% 40% M220 -size Large Amount of Discount Sfi-48 53.99 53.94 Color - Svaw Net Price Each 57.34 55.99 X5.99 Total Bid, this section 5192.03 $162.55 $162.67 Percent °i° Discount for items not listed. this section: 47°,0 40°~0 40°l° Catalog quoted against Broiler Bros. Broiler Bros. Broiler ;. EIVIDROIDERY CHARGES Existing Logos on disk , 1 to 11 $6.00 $4.95 SK 8K $5.00 up to 4000 stitches stitches 12 to 4? $4.00 $3.95 $2.40 48 and up $3.50 $3.50 $2.00 ~ECTIt~N B - T-~Hi~T~ Fit, Active Promos C1ist, Impre~t ttstn t3escription tmpr+ions Inc, t~si~ns AN~+`IL List ICatalog X7 36 X5.84 5.84 Price . { Ringer T's -ADULTS .l °,~e Discount 30°~'° 40°!° 45% # 923 sizes Small - X Amount of X2 2 ~ 52.34 $2.63 Large Discount . Colors -Navy Net Pnce Each 55.15 53.5Q $3.21 ANVIL List JCatalog 1$ 56 ~~ ~ $6.62 Price . . 2 Ringspun -ADULTS I °f° Discount 30°i° 40% # 980 sizes Sm - X Lrg Amount of Discount ~~ .$~ 52.34 X0.00 Colors - Net Pnce achE 54.33 53.5© $3.68 JERZEES - 100% List 1Catalog Price 57.2u ~ 55.90 $5.90 WJPoct~et -Adult ~ °~o DISCOUnt ~~°f° 40°10 45°1'0 3b3MP sizes Sm - X Lry Amount of ~~.1 C $2.3b $2.68, Discount Color -Heather Net Pnce Each 55.44 53.54 $3.25 FRUIT CF THE LbCM Llst !Catalog 57 52 55.72 55.72 Pace . 4 w~Poct{et -ADULTS 1 d3° Disc+~unt 30°~0 40°~0 45°,~0 # 3930P sizes Sm - X Lrg Amount of Discount 52.26 52.24 52.57 Color -Royal ~ Net Prrce Each 55.26 53.43 $3.15 JERZEES - 50/50 List ~Latalog Price 54.84 53.90 53.84 5 ADULTS 1 °fo Discount 30°~'° 40°r° # 24M Sizes Sm - X Lrg Amount of Discount 8-I.45 51.56 50.00 Color - Anv Net Price Each 53.39 52.34 $2. ~ 1 HAKES - 5050 Usi ,Catalog Price 54.90 53.90 $3.87 ~ ADULTS 1 °lo DlsCOUnt 30°Io 40°l0 5~I70 sizes Sm - X Lrg Amount of DISCt3lJnt 51.44 X1.56 50.00 Color - Anv Net Price Each 53.47 $2.34 52.13 Total Bid, this section 526.64 518.56 $17.53 Percent °~° Discount for items 30% 40°!0 45°,'0 not listed. this section: Catalog quoted against Broiler Bros. Broiler Bras. Broiler `' ' ~ECIxON ~-1+C1~4L~,I~Et)U~a CHAR~E~' ,, ~ Aset~E ~~5' ~IC!~ ~.S~,r ~, ~~ ~~ SILKSCREIN CHARGES 1 COLOR Front of Shirt $1.00 $0.90 $1.40 _ Front and back of shirts $2.00 $1.60 $2.80 On long sleeves of shirts $1.00 $1.20 $1.40 . Charges for each additional color screened $0.50 $0.30 $0.30 per location SCREE[1T C~iARGES: _ Per color $10.00 $10.00 $20.00 _ ARTI~ORK CHARGES: for New Design $25.00 $20.00 $30.00 (per hour) ~E~Ti+QN ~ - EDINA~D'~ BR~1NQ Ch~a~tipt~~n Es#, A~tiva Prom+aa fiat, lm~p~ass Barn +~_ im~r+~aions In+c, Dasi~ns Women's Flat Front Pants List 1Catalog icePr 828.00 828.00 828.00 l ~ 8~-10-10 size 12w { °!o Discount 35% 40°!a 400!0 (inseam 811 Amount of 8y.80 811 20 811.20 Discount Dolor - Eilack Net Price Each $15.20 X16.80 ~1 fi.$p ~Nomen's Lonp Sleeve Shin List iCatalog Price 822.00 822.00 822.00 2 ~ 5280 Size 14 1 0Io Discount 35°.'0 40°fa 40% Color -Wine Amount of 87 70 88 80 $8.80 Discount . . Net Pace $1a.3o X13.20 $13.2p Each Women's Short Sleeve Shirt List tCatalog Price $20.00 820.00 820.00 :i # 5230 SIZe '14 ~1 % Discount 85°.~0 4001a 40010 Color - Ye11ow Amount of Discount 87.00 88.00 $8.00 Net Pnce 813.00 812.00 $12.pp Each Men's Pleated Pants fist !Catalog Pnce $28.00 825.00 82$.00 4 ~ 2510-07 size 88W X 34L 1 ¢ro Discount 85°10 40°fa 40°l0 Dolor -Navy Amount of Discount 80.80 811.20 811.20 Net Price 518.20 ~16.8a ~1 s.$o Each Men's Short Sleeve Shirt List !Catalog 824 00 820 00 820.00 Pnce . . ~- # 1230 Size '10-1,`2 Tail 1 °fo Discount 8~°~0 40°fo 400!0 dolor -Tan Amount of 40 88 00 88 $5.00 Discount . . Net Pnce $15.60 X12.00 $12.p0 Each Men's Lonq Sleeve Shirt List ('Catalog Pnce 820.40 822 00 822.00 b ~ 1280 Size 15-1/2 Tall I °~o Discount 8~°'0 40°ro 400!0 Color -White Amount of Discount SJ.24 88.50 $8.50 Net Price X17 16 813.20 $13.20 Each . Total Bid, this section ~96.4s X84.00 x$4.00 Percent 0la Discount far items not listed, this section: 8~°'a 404ia 400ra Catalog quoted against Edward's Edwards Edwards ~ECTI4N Q - QICKIE'S BRANE~ E~~ Active Prc~mo~ Qist, Impresat ftQm D~scr~ptf~n Im~r~sfons Inc. Debsi~ns Work Pant List r'C;atalog Price $33.00 52F}.99 525.99 1 ~ 374 KH -Khaki .l °ro Discount ~5°~° 30°~° 40% Regular size Amount of Discount ~2a.oo X7.30 510.40 Net Price 517.10 518.19 $15.59 Each Work Pant List ~Cataloc~ Price X34.00 523.99 323.99 2 ~ 1b-2325T -Stone 1 Q,° Discount 55°'° 30% 40°i° Regular site Amount of Discount 518.10 57.20 $9.b0 Net Pnce 515.30 516.79 $14.39 Each Caroo Pant List iCatalog X44 00 99 529 529 99 Price . . . 3 23-214 RDN -Navy I °je Discount 33'~° 30°,~° 40°.~0 Regular size Amount of Discount 524.20 59.00 512.00 Net Price $18.80 52.4.99 $17.99 Each Total Bid. this section 552.20 55.98 $47.9$ Percent °,% Discount f©r items not fisted. this section: 35°~b 3o°/a 40°.{0 Catalog quoted against Dickies Diek~e's Dickies CITY OF NORTH R/CHLAND HILLS Department: City Secretary Presented by: Council Meeting Date: 4-28-2008 Agenda No. C.0 Subject: PUBLIC HEARINGS CITY OF NORTH RICHLAND HILLS Department: Parks and Recreation Presented by: Adrien Pekurney Council Meeting Date: 4-28-2008 Agenda No. C.1 Subject: GN 2008-033 Public Hearing and Consideration of Ordinance Readopting Youth Programs Standards of Care -Ordinance No. 2992 The Parks and Recreation Department is requesting City Council approval of an ordinance readopting the North Richland Hills Youth Programs Standards of Care. Adopted standards are a Texas Department of Family and Protective Services requirement for an exempt status for day care licensing. A public hearing is required for adoption of the ordinance. The public hearing and adoption of the ordinance may occur on the same day. The Recreation Center offers day camp programs for children ages five to thirteen. The Texas Legislature requires municipal day camp youth programs for elementary age children to meet day care licensing requirements or file for an exemption (Section 42.041(b)(14) of the Child Care Standards and Regulations of the Texas Human Resources Code). To receive exempt status, a municipality must submit a copy of program standards, a notice of a public hearing for the program and a copy of the ordinance adopting the standards. The Youth Programs Standards of Care will provide basic child care regulations for day camp activities operated by the City of North Richland Hills Parks and Recreation Department, allowing the department to qualify for an exemption from the requirements of the Texas Child Care Standards and Regulations within the Texas Human Resources Code. The City of North Richland Hills day camp program meets, and in some areas exceeds, many of the standards listed in the state's Child Care Standards and Regulations. All of the Standards of Care included in the City of North Richland Hills Parks and Recreation day camp policies and procedures have been in place for several years and have been used in the staff training process prior to camp starting each near. The Standards of Care will be provided to the parents of each program participant and shall include, at a minimum, the following areas: • Minimum requirements for staffing ratios • Staff qualifications and essential job functions • Facility, health and safety standards • Procedures for reporting child abuse/neglect allegations • Written procedures stating that parents and each staff member will be provided a set of standards • Contact information of department supervisors for the purpose of complaint notification and resolution regarding the recreational program • Written procedures for staff who will be monitoring the programs and enforcing the standards • Requirement of criminal background checks on prospective day camp employees • Service standards for communicating with parents and performance expectations of day camp employees • Behavior management and discipline procedures • General rules and regulations The application for exemption determination and the formal adoption of the Youth Programs Standards of Care and ordinance is an annual requirement so that the Standards of Care can be revised as needed to reflect current regulations. This is the fourth year for the formal adoption process. It is suggested that the public hearing be held, input received, and then consider action to approve. Recommendation: To approve Ordinance No. 2992. NFZH ORDINANCE NO. 2992 AN ORDINANCE READOPTING SECTION 62-10 OF THE NORTH RICHLAND HILLS CODE OF ORDINANCE AND READOPTING THE CITY OF NORTH RICHLAND HILLS YOUTH PROGRAMS STANDARDS OF CARE, FOLLOWING A PUBLIC HEARING. WHEREAS, the Human Resources Code; Section 42.041(b)(14), establishes requirements for exempting recreational programs operated by municipalities for elementary age (5-13) children from childcare licensing requirements; and WHEREAS, in order to receive exempt status for a youth recreation program, a municipality must adopt standards of care by ordinance after a public hearing for the program and a copy of the ordinance adopting the standards to the State; and WHEREAS, the City of North Richland Hills Youth Programs Standards of Care will provide basic child care regulations for day camp activities operated by the North Richland Hills Parks and Recreation Department in accordance with Section 42.041(b)(14) of the Human Resources Code; NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: SECTION 1. That Sec. 62-10 of the North Richland Hills Code of Ordinances is hereby readopted as follows: "SEC.62-10 YOUTH PROGRAMS STANDARDS OF CARE The City Council of the City of North Richland Hills hereby adopts the City of North Richland Hills Youth Programs Standards of Care for providing basic child care regulations for day camp activities operated by the North Richland Hills Parks and Recreation Department. As required by Section 42.041(b)(14) of the Human Resources Code, the Standards adopted by this ordinance include staffing ratios; minimum staff qualifications; minimum facility, health, and safety standards; and mechanisms for monitoring and enforcing the adopted local standards. A substantial copy of the City of North Richland Hills Youth Programs Standards of Care is attached hereto and incorporated herein for all intents and purposes and shall be available on the City's website under the Parks and Recreation subhead.M SECTION 2. This ordinance shall be in full force and effective immediately upon passage. PASSED AND APPROVED on this the 24th day of April, 2008. CITY OF NORTH RICHLAND HILLS By: Oscar Trevino, Mayor ATTEST: Patricia Hutson, City Secretary APPROVED AS TO FORM AND LEGALITY: George A. Staples, City Attorney APPROVED AS TO CONTENT: Vickie Loftice, Director of Parks and Recreation City of North Richland Hills Parks and Recreation Department Youth Programs Standards of Care I. GENERAL INFORMATION /ADMINISTRATION Purpose: To provide basic childcare regulations for activities operated by the North Richland Hills Parks and Recreation Department. This will allow the department to qualify as exempt from requirements of the Texas Human Resources Code. A. Organization: 1. The governing body of the City of North Richland Hills Youth Programs is the City of North Richland Hills City Council. 2. Implementation of the Youth Programs Standards of Care is the responsibility of the Assistant Director of Recreation and Recreation Division Staff. 3. The Youth Programs Standards of Care will apply to several day camp programs which are conducted by the North Richland Hills Parks and Recreation Department throughout the year. 4. Each Youth Program site will have available for public and staff a current copy of the Standards of Care. 5. Parents of participants will be provided a current copy of the Standards of Care during the registration process. B. Implementation: The Standards of Care Program will be the responsibility of the Parks and Recreation Department, with the Youth Program Coordinator overseeing the overall program and the Day Camp Director administering the program on-site. Programs: Regulations apply to three (3) on-going programs: Spring Break Camp Summer Day Camp Sport and Art Camps Other: Each camp will make available for public and staff a current copy of the Standards of Care. Parents of participants will be provided a copy of Standards of Care during the registration process and the Camp NRH parent orientation prior to camp starting each year. Program Sites: NRH Recreation Center, 6720 N.E. Loop 820 C. Day Camp Objectives: 1. To provide youth with the opportunity to experience a variety of recreational activities which include sports, games, arts and crafts, education, drama, special events, field trips, tournaments, etc. 2. To provide an encouraging atmosphere emphasizing positive development of physical skills, emotional growth and self-confidence. 3. To provide a safe environment; always promoting good health and welfare for all. 4. To teach children how to spend their leisure time wisely; in an effort to meet the emotional, physical, and social needs of the child. D. Exemption Status: Once an exempt status is established, the Licensing Division will not monitor the recreational program. The Licensing Division will be responsible for investigating complaints of unlicensed child care and for referring other complaints to the municipal authorities or, in the case of abuse/neglect allegation, to the local police authorities. E. Standards of Care Review: Standards will be reviewed annually and brought to the City Council for approval after a public hearing is held to pass an ordinance regarding section 42.041(b)(14) of the Texas Human Resources Code. Childcare Licensing will not regulate these programs nor be involved in any complaint investigation related to the program. Any parent, visitor or staff may register a complaint by contacting the North Richland Hills Recreation Center Manager at 817-427-6600 or the Parks and Recreation Administrative Offices at 817-427-6620, Monday through Friday, 8:00 a.m. - 5:00 p.m. II. STAFFING A. Day Camp Director -The Day Camp Director directs a staff of 10 day camp counselors and supervises the activities of children in a day camp setting. 1. Essential Job Functions: a.) Direct and supervise all counselors including hiring and training. b.) Complete and submit proper records including camp schedules, counselor work schedules, payroll, accident/incident reports and attendance. c.) Develop age appropriate camp curriculum (6-12 years) in accordance with the philosophy of the program. d.) Ensure staff is committed to following established guidelines, procedures and standards. e.) Maintain an orderly, clean and safe environment for the children while promoting a non-competitive program directed toward accentuating positive behaviors, physical development and emotional growth. f.) Develop and distribute a weekly schedule of activities. g.) Complete facility reservations and transportation needs for all camp activities. h.) Schedule, confirm, obtain and distribute payment for all field trips. i.) Maintain supplies, equipment and all necessary documentation for the operation of the camp. j.) Communicate to parents about camper's progress and activities. k.) Conduct on-going program evaluations implementing approved recommendations as needed. I.) Provide reports to the Youth Program Coordinator on a weekly basis to monitor camp activities throughout the program. 2. Qualifications: a.) Bachelor's Degree in Education or Recreation is preferred but not required. b.) A minimum of three years experience as a camp counselor and/or educator. c.) Requires a valid Texas driver's license with a good driving record over the last three years. d.) Must pass city criminal background check prior to hiring. e.) Must pass pre-employment drug screen and/or physical. f.) Must complete First Aid and CPR certification prior to camp. 3. Requirements of Work: a.) Director must complete the mandatory staff training program of at least 20 hours, in addition to planning hours with site staff prior to the start of camp. This training includes departmental orientation, customer service, sexual harassment training, behavioral issues and discipline, training and examination program on sexual abuse and child molestation, as well as practical skills on activities for children in games, songs and crafts. b.) Ability to be physically active and involved with children all day. c.) Ability to lift 55 pounds. d.) Knowledge of child development and age appropriate activities. e.) Advanced organizational and communication skills. f.) Team leadership abilities. g.) Varied experience in a variety of activities including sports, arts, nature, drama and cooperative activities. B. Day Camp Counselor -The Day Camp Counselor is responsible for direct leadership of youth ages 6-12 in a variety of activities including, but not limited to games, sports, crafts, special events and field trips. The counselor assists in planning and organization of camp schedules, activities, supplies and equipment, and is also responsible for cleanliness of the areas used by camp participants. The counselor positions are also responsible for completing necessary forms relating to attendance, check-in/check-out procedures, accidents, and incidents. 1. Essential Job Functions: a.) Promote a non-competitive, positive, self-image enhancing environment for each participant through the direction of non- competitive, fun, varied and well organized activities. b.) Directly lead activities using a method that will provide opportunity for the involvement of all children on an equal level. The Counselor prepares, in advance, directions for activities, daily schedules and required equipment used during the activities. c.) Exhibit enthusiasm for the activity to impart a feeling of excitement to camp participants. d.) Follow procedures for camper check-in/check-out. Report accidents/incidents, behavioral modifications and camp schedules. e.) Follow guidelines for safety and storage of equipment, including inventory of supplies. f.) Ensure safety of youth during transportation while on field trips. g.) Provide and adhere to established guidelines set forth for the safety, behavior, communication and discipline of the camp participants. h.) Recognize and reward positive, improved and outstanding behavior and/or accomplishments of camp participants. 2. Minimum Qualifications: a.) High school diploma with two years of college preferred. b.) One year experience working with children in a day camp setting. c.) A valid Texas driver's license with a good driving record over the last three years. d.) Must pass criminal background check prior to hiring. e.) Must pass pre-employment drug screen and/or physical. f.) Must complete First Aid and CPR certification prior to camp. 3. Other Requirements: a.) Staff must complete the mandatory staff training program of at least 20 hours, in addition to planning hours with site staff prior to the start of camp. This training includes departmental orientation, customer service, sexual harassment training, behavioral issues and discipline, training and examination program on sexual abuse and child molestation, as well as practical skills on activities for children in games, songs and crafts. b.) Staff must exhibit competency, good judgment and self control throughout the duration of the camp. c.) Staff should relate to the children with courtesy, respect, acceptance and patience. d.) Staff will be evaluated at least once during the summer prior to the completion of camp. Evaluations will be reviewed with the camp counselors to discuss any areas of improvement or suggestions. 4. Criminal Background Checks: Criminal background checks will be conducted on prospective day camp employees. Applicants may be disqualified if they have a job related criminal conviction. A prospective employee will be subject to apre-employment drug test and/or physical prior to hiring. 5. Staffing Ratios: The state required ratio for number of children (ages 5- 13) may not exceed 15:1 children to staff. Camp NRH Day Camp maintains 12:1 children (ages 6-12) to staff ratio. On all field trips Camp NRH Day Camp maintains 6:1 children to staff ratio. III. FACILITY STANDARDS A. Emergency evacuation and relocation plans will be posted at each facility. Program employees will inspect sites frequently for any sanitation or safety concerns. Those concerns should be passed on to the Program Coordinator or Recreation Center Manager immediately. B. Each camp must have a fully stocked first aid kit. This shall be checked and stocked on a weekly basis by the Program Coordinator. It shall include bandages and Band-Aids, first aid cream, rubber gloves, Neosporin, alcohol wipes, hot/cold packs, gauze, syrup of Ipecac, tweezers and scissors. C. In a situation where evacuation is necessary, the first priority of staff is to make sure all participants are in a safe location. Program sites will be inspected by the Fire Marshall annually. Each Facility Manager is responsible for compliance with Fire Marshall's directives. The recommended number of fire extinguishers shall be inspected quarterly and available and "primed" for use. Fire drills should be conducted once a month during the summer camp. D. Medication will only be administered with written parent consent completed on the registration form provided by the City of North Richland Hills. Prescription medications shall be left with staff in their original container, labeled with the child's name, date, directions, Polaroid photo of the child and the child's physician's name. Medication shall be dispensed only as stated on the bottle, and not past the expiration date. E. Non-prescription medicine with the child's name and date on the medication may be brought if in the original container. F. Each indoor site shall have adequate indoor toilets and lavatories located such that children can use them independently and program staff can supervise as needed. There shall be one flush toilet per 30 children. Outdoor sites shall provide portable toilets based on number of children attending each day. Sinks shall be provided based on 1 sink per 30 children. G. All participants must wear tennis shoes daily. Sandals will not be allowed. IV. SERVICE STANDARDS-Day Camp Staff A. This information will be provided to each staff member as a part of the day camp staff manual: 1. Appropriate shirts, shorts and tennis shoes are to be worn at all times. Camp NRH staff shirts are to be worn on the designated days. Staff shirts should always be tucked in. No tube tops allowed. Shorts should be at a respectable length, no cut-offs. No clothing should bear any inappropriate logos, phrases, or pictures. Any staff member, who does not adhere to the dress code, will be sent home for the day without pay. 2. Staff will be provided with two collared shirts and two Camp NRH T- shirts. Uniform schedules will be given to staff during training and should be followed throughout the summer. Any deviation must be approved by the Youth Program Coordinator. 3. Only one-piece bathing suits may be worn when visiting NRH2O. 4. Name tags/IDs should be worn and clearly visible at all times. 5. Camp participants and parents will be treated with respect at all times. 6. Camp staff will take it upon themselves to resolve complaints. Do not refer the customer to another staff member, unless necessary. If you are unable to resolve the complaint on the spot, take the customer's name and phone number, investigate the complaint and follow up with the customer. All complaints should be recorded (problem and resolution) on a Customer Comment Form provided by the Youth Program Coordinator. 7. Camp staff will keep parents informed of camp activities. A weekly schedule will be distributed one week in advance and extra copies will be kept with the daily sign in log. Camp staff will note details of behavior of campers (accomplishments, discipline problems, general activities, etc.) in the daily campers log and verbally update parents as much as possible. 8. Camp staff will monitor the check-in/check-out log at all times. 9. Camp staff will clean program areas after each activity. Floors will be swept/vacuumed, mirrors cleaned, and supplies put away. This is extremely important due to the fact that rooms are used throughout the day by other groups. 10. Camp staff will spend the majority of their time actively involved with campers and/or parents. Camp staff will check all messages for the day, prior to beginning any camp activities. VI. OPERATIONAL ISSUES A. Emergency phone numbers are kept at the Recreation Center front desk, as well as with the Day Camp Director on field trips. Those numbers include fire, police, and ambulance services. B. The Day Camp Manual is provided to every staff member and outlines the following: 1. Behavior Management and Discipline Procedures 2. Rules and Regulations 3. Forms 4. Service Standards 5. Game/Activity Leadership 6. Guidelines for Communication with children and parents C. Check-in/check-out forms will be used every day. Only adults listed on the camper's release form will be allowed to pick up children. The authorized parent/guardian must enter the building and sign the check-out form in order for staff to release the child. D. Emergency evacuation and relocation plans will be posted at each facility. E. Parents will be notified regarding planned field trips and provided the required release forms. F. Enrollment information will be kept and maintained on each vehicle while traveling to and from field trip sites. G. Enrollment information will be kept and maintained on each child and shall include: 1. Child's name, birth date, home address, home telephone number, physician's phone number and address and phone numbers where parents may be reached during the day. 2. Name, driver's license number and telephone number of persons to whom the child can be released. 3. Field trip release form as needed. 4. Liability waiver. 5. Parental consent to administer medication, medical information and release on participant. H. Staff shall immediately notify the parent or other person authorized by the parent when the child is injured or has been involved in any situation which placed the child at risk. I. The Youth Program Coordinator shall notify the parents/guardians of participants if/when there is an outbreak of a communicable disease in the facility as required by the County Department of Health. Staff must notify parents of children in a group when there is an outbreak of lice or other infestation in the group. VII. BEHAVIOR MANAGEMENT AND DISCIPLINE PROCEDURES A. Program employees will implement discipline and guidance in a consistent manner based on an understanding of individual needs and development with the best interests of program participants in mind. B. There will be no harsh, cruel, or corporal punishment used as a method of discipline. C. Program employees may use brief, supervised separation from the group if necessary. Children will be aware of all camp rules prior to the start of any activity. Their understanding of the rules is an integral part of behavior management. When negative behavior occurs they will know there is a consequence for their chosen action. D. Incident reports will be filled out on any disciplinary cases, and information is to be shared with parents when picking up the child (or sooner when extreme cases occur). Parents will be asked to sign the incident reports to indicate they have been advised about specific problems and/or negative behaviors. F. A sufficient number and/or severe nature of discipline reports as detailed in the program manual may result in a participant being suspended from the program. Parents/guardians will be contacted to pick up their child immediately. G. In instances where there is danger including physical harm or threat of physical harm to participants, staff, or themselves; the offending participant(s) will be removed from the program immediately. Parents/guardians will be contacted to pick up their child immediately. VIII. ILLNESS OR INJURY A. Participants shall have and maintain immunizations in accordance with those required by the Texas Department of Health for public school attendance according to age. B. Parents shall be notified in cases of illness or injury. C. An ill child will not be allowed to participate if the child is suspected of having a temperature and/or accompanied by behavior changes or other signs or symptoms until a medical evaluation indicates that the child can be included in the activities. In the event an injury cannot be remedied through basic first aid, staff shall notify paramedics. D. When an injury occurs, an incident report shall be filled out immediately after the incident, with the original sent to the Recreation Center Manager's office with a copy kept in the Day Camp files. E. In the event of suspected abuse, program employees will report suspected abuse or neglect in accordance with the Texas Family Code. In the case where a City employee is involved in an incident with a child that could be construed as child abuse, the incident must be immediately reported to the Assistant Director of Recreation. The Assistant Director will immediately notify the Police Department and any other agency as may be appropriate. F. Texas state law requires the staff of youth programs to report any suspected abuse or neglect of a child to the Texas Department of Family and Protective Services or a law enforcement agency. Failure to report suspected abuse is punishable by fines up to $1,000 and/or confinement up to 180 days. Confidential reports may be made by calling 1-800-252-5400. IX. GENERAL GUIDELINES FOR CHILDREN A. As a part of the Day Camp Manual, staff should be given the following information: 1. A child is not allowed to use the phone unless it is an emergency. In this case, Day Camp staff should make the call for the child. 2. Children must stay off tables, counter tops, ping pong tables, etc. 3. Children should walk in the building. Running is only permitted in the gym. 4. Bouncing and throwing balls is permitted only in the gym or designated game area with direct supervision from staff. 5. Active games using equipment that can cause damage to window, shades, lights, and ceilings must be played only in the gym or outdoors. 6. Children must respect staff and each other. 7. Children must wear shoes at all times. 8. Children must be contained and not allowed to filter in the general public. You must know where each child is at all times. B. The program will provide activities for each group according to the participants' ages, interests and abilities. The activities should be flexible and promote social and educational advancement. 1. A weekly calendar of activities will be posted for parents the Friday prior to the next week of camp. 2. When taking field trips, staff will: a.) Count everyone before they leave the program site as well as prior to leaving the field trip site. b.) Carry medical information on each child and necessary medication with them on the trip. c.) Carry a first aid kit and mobile phone in all vehicles and while on- site. d.) Encourage participants to wear camp shirts so that children are easily identified. X. MONITORING AND ENFORCEMENT A. Standards of Care established by the City of North Richland Hills will be monitored and enforced by City Departments responsible for their respective areas. Health and safety standards will be monitored and enforced by the City's Police, Fire, and Consumer Health Departments when applicable. B. Staff and program issues will be monitored and enforced by the North Richland Hills Parks and Recreation Department. The Recreation Center Manager shall visit each site on a bi-weekly basis. The Youth Program Coordinator is responsible for visually checking the camp activities on a daily basis. When not available, another full-time staff person is responsible for that check. C. Monthly reporting by the Youth Program Coordinator to the Recreation Center Manager will include a review of adherence to the Standards of Care as well as operational summaries of the programming month. For further information regarding the Youth Program Standards of Care or any other information about the youth programs offered through the City of North Richland Hills Parks and Recreation Department please contact the Recreation Center Manager or Youth Program Coordinator at 817-427-6600 or email NRHPARD(c(~nrhtx.com. CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Council Meeting Date: 4-28-2008 Agenda No. D.0 Subject: PLANNING AND DEVELOPMENT Items to follow do not require a public hearing. No items for this category. CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Council Meeting Date: 4-28-2008 Agenda No. E.0 Subject: PUBLIC WORKS No items for this category. CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Council Meeting Date: 4-28-2008 Agenda No. F.0 Subject: GENERAL ITEMS CITY OF NORTH RICHLAND HILLS Department: Finance Council Meeting Date:4-28-2008 Presented by: Larry Koonce Agenda No.F.1 Subject: GN 2008-028 Consider All Matters Incident and Related to the Issuance and Sale of $4,180,000 "City of North Richland Hills, Texas, General Obligation Bonds, Series 2008", Including the Adoption of Ordinance No. 2989 Authorizing the Issuance of Such Bonds A bond sale is scheduled for Monday, April 28, 2008. The sale will include $4,180,000 in General Obligation Bonds. The total amount will be used for street projects: $2,200,000 for North Tarrant Parkway (Davis to Whitley), $1,700,000 Rufe Snow Drive (Mid-Cities to Hightower), $100,000 Douglas Lane (Hightower to Starnes), and $180,000 for Holiday Lane/Dick Lewis Drive, signal, street and utility improvements (see attached summary). Rating conferences with Standard and Poor's and Moody's were recently held. The City received General Obligation Bond ratings from both Moody's Investors Service and Standard and Poor's. Moody's has reaffirmed the Aa3 rating, and Standard and Poor's has upgraded the AA- rating to AA. The bids are due to be received and opened at 11 a.m. on Monday April 28th. The bids will be tabulated, verified, and ready to present for approval at the meeting that evening. All blanks in the attached ordinance will be filled in prior to the City Council meeting on Monday. Recommendation: To adopt Ordinance No. 2989 approving the bid and issuance of $4,180,000 "City of North Richland Hills, Texas, General Obligation Bonds, Series 2008 Summary 2008 General Obligation Bonds 2003 Bond Election Street Improvement Projects North Tarrant Parkway (Davis to Whitley) Rufe Snow Drive (Mid-Cities to Hightower) Douglas Lane Street Improvements (Hightower to Starnes) Total G.O.2003 Bond Election Projects 1994 Bond Election Holiday Lane/Dick Lewis Dr., Signal, Street and Utility Improvements Total 2008 G.O. Bond Sale $ 2,200,000 1,700,000 100,000 4,000,000 $ 180,000 $ 4,180,000 ORDINANCE N0.2989 AN ORDINANCE authorizing the issuance of "CITY OF NORTH RICHLAND HILLS, TEXAS, GENERAL OBLIGATION BONDS, SERIES 2008"; specifying the terms and features of said bonds; levying a continuing direct annual ad valorem tax for the payment of said bonds; and resolving other matters incident and related to the issuance, sale, payment and delivery of said bonds, including the approval and execution of a Paying Agent/Registrar Agreement and the approval and distribution of an Official Statement; and providing an effective date. WHEREAS, the City Council further finds and determines that general obligation bonds in the principal amount of $4,180,000 approved and authorized to be issued at elections held September 27, 1994 and February 1, 2003, should be issued and sold at this time; a summary of the general obligation bonds authorized at said elections, the principal amounts authorized, amounts heretofore issued and being issued pursuant to this ordinance and amounts remaining to be issued subsequent hereto being as follows: .Date of Election ose 9-27-1994 Street Improvements 2-1-2003 Street Improvements 2-1-2003 Drainage Improvements 2-1-2003 Public Safety Facilities 2-1-2003 Animal Shelter Amount Amount Previously Being Unissued Authorized ($1 Issued Issued ance~ 20,000,000 19,395,000 $ 180,000 $ 425,000 30,010,000 6,955,000 4,000,000 19,055,000 4,004,000 1,340,000 -U- 2,660,000 1,900,000 1,650,000 -0- 250,000 1,300,000 -0- -0- 1,300,000 AND VV}IEREAS, the Council hereby reserves and retains the right to issue the balance of unissued bonds approved at said elections in one or more installments when, in the judgment of the Council, funds are needed to accomplish the purposes for which such bonds were voted; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF :~IOR'I'Ii RICI-ILAND HILLS, TEXAS: SECTION I : Authorization - Desitznation- Principal Amount- Purpose. General obligation bonds of the City shall be and are hereby authorized to be issued in the aggregate principal amount of $4,180,000, to be designated and bear the title "CITY OF NORTH RICHLANI7 HILLS, TEXAS, GENERAL OBLIGATION BONDS, SERIES 2008" (hereinafter referred to as the "Bonds"), for permanent public improvements and public purposes, to wit: street improvements, including traffic signalization, drainage incidental thereto and the acquisition of land and right-of--way therefor, in accordance with the Constitution and laws of the State of Texas, including V."T'.C.A., Government Code, Chapter 1331, as amended. soi729b7.i~IQ301D35 SECTION 2: F~1_~ Registered Obligations -Bond Date -Authorized Denominations-Stated Maturities-Interest Riates. The Bonds shall be issued as fully registered obligations only, shall be dated April 15, 2008 {the "Bond Date"}, shall be in denominations of $5,000 or any integral multiple (within a Stated Maturity) thereof, and shall become due and payable on February 15 in each of the years and in principal amounts {the "Stated vlaturities'~ in accordance with the following schedule: Year of Principal Interest Stated iVlaturity Amount Rate s 2009 $210,000 2010 210,004 2011 210,000 2012 210,000 2013 210,000 2014 210,000 2015 210,000 2016 210,000 2017 210,000 2018 210,000 2019 210,000 2020 210,000 2021 210,000 2022 210,000 2023 210,000 2024 210,000 2025 205,000 2026 205,000 2027 205,000 2028 205,000 The Bonds shall bear interest on the unpaid principal amounts from the Bond Date at the rate(s) per annum shown above in this Section (calculated on the basis of a 360-day year of twelve 30-day months). Interest on the Bonds shall be payable on February I S and August I S in each year, commencing February 15, 2009. SECTION 3: Terttas of Payment-Fagg AgentJRegistrar. The principal of, premium, if any, and the interest on the Bonds, due and payable by reason of maturity, redemption or otherwise, shall be payable only to the registered owners or holders of the Bonds (hereinafter called the "Holders") appearing on the registration and transfer books maintained by the Paying AgenURegistrar and the payment thereof shall be in any coin or currency of the United States of America, which at the time of payment is legal tender for the payment of public and private debts, and shall be without exchange or collection charges to the Holders. The selection and appointment of The Bank of New York Trust Company, N.A., Dallas, Texas, to serve as Paying Agent/Regisvar for the Bonds is hereby approved and confirmed. ~o17z467.~/~oso~o3s Books and records relating to the registration, payment, transfer and exchange of the Bonds (the '`Security Register"} shall at all times be kept and maintained on behalf of the City by the Paying Agent/Registrar, as provided herein and in accordance with the terms and provisions of a "Paying Agents Kegistrar Agreement", substantially in the form attached hereto as Exhibit A, and such reasonable rules and regulations as the Paying Agent/Registrar and the City may prescribe. The Mayor and City Secretary are authorized to execute and deliver such Agreement in connection with the delivery of the Bonds. The City covenants to maintain and provide a Paying Agent/Registrar at all times until the Bonds are paid and discharged, and any successor Paying Agent/Registrar shall be a bank, trust company, financial institution or other entity qualified and authorized to serve in such capacity and perform the duties and services of Paying Agent/Registrar. Upon any change in the Paying AgentlRegisirar for the Bonds, the City agrees to promptly cause a written notice thereof to be sent to each Holder by United States Mail, first class postage prepaid, which notice shall also give the address of the new Paying Agent/lZegistrar. Principal of and premium, if any, on the Bonds shall be payable at the Stated Maturities or the redemption thereof, only upon presentation and surrender of the Bonds to the Payiag Agent/Registrar at its designated offices in Dallas, Texas (the "Designated Payment/Transfer Office"). Interest on the Bonds shall be paid to the Holders whose name appears in the Security Register at the close of business on the Record Date (the last business day of the month next preceding each interest payment date) and shall be paid by the Paying Agent/Registrar (i) by check sent United States Mail, first class postage prepaid, to the address of the Holder recorded in the Security Register or (ii) by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the Holder. If the date for the payment of the principal of or interest on the Bonds shall be a Saturday, Sunday, a legal holiday, or a day when banking institutions in the city where the Designated PaymentlTransfer Office of the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day when banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. In the event of a nonpayment of interest on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date"} will be established by the Paying Agent/ Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be I S days after the Special Record Date) shall be sent at least five (S) business days prior to the Special Record Date by United States Mail, first class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. SECTION 4: Rede ion, (a) Optional Redemption. The Bonds having Stated Maturities on and after February l 5, 2019, shall be subject to redemption prior to maturity, at the option of the City, in whole or in part in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity by lot by the Paying Agent/Registrar), on February t 5, 2018 or on any date thereafter at the redemption price of par plus accrued interest to the date of redemption. 80172967.1~1O8U1U35 (b) Exercise of Redemption Option. At least forty-Five (45) days prior to a redemption date for the Bonds (unless a shorter notification period shall be satisfactory to the Paying Agent/Registrar), the City shall notify the Paying Agent/Registrar of the decision to redeem Bonds, the principal amount of each Stated Maturity to be redeemed, and the date of redemption therefor. The decision of the City to exercise the right to redeem Bonds shall be entered in the minutes of the governing body of the City. {c) Selection of Bonds for Redemption, If less than all Outstanding Bonds of the same Stated Maturity are to be redeemed on a redemption date, the Paying Agent/Registrar shall treat such Bonds as representing the number of Bonds Outstanding which is obtained by dividing the principal amount of such Bonds by $S,OOQ and shalt select the Bonds, or principal amount thereof, to be redeemed within such Stated Maturity by lot. (d) Notice of Redemption. Not less than thirty (3~) days prior to a redemption date for the Bonds, a notice of redemption shall be sent by United States Mail, first class postage prepaid, in the name of the City and at the City's expense, to each Holder of a Bond to be redeemed in whole or in part at the address of the Halder appearing on the Security Register at the close of business on the business day next preceding the date of mailing such notice, and any notice of redemption so mailed shall be conclusively presumed to have been duly given irrespective of whether received by the Holder. All notices of redemption shall (i) specify the date of redemption for the Bonds, {ii} identify the Bonds to be redeemed and, in the case of a portion of the principal amount to be redeemed, the principal amount thereof to be redeemed, (iii) state the redemption price, (iv) state that the Bonds, or the portion of the principal amount thereof to be redeemed, shall become due and payable on the redemption date specified, and the interest thereon, or on the portion of the principal amount thereof to be redeemed, shall cease to accrue from and after the redemption date, and (v} specify that payment of the redemption price for the Bonds, or the principal amount thereof to be redeemed, shall be made at the Designated Payment/Transfer Office of the Paying Agent/Registrar only upon presentation and surrender thereof by the Holder. if a Bond is subject by its terms to prior redemptiolt, and has been called for redemption, and notice of redemption thereat has been duly given as hereinabove provided, such Bond (or the principal amount thereof to be redeemed) shall become due and payable and interest thereon shall cease to accrue from and after the redemption date therefor; provided. moneys sufficient for the payment of such Bond (or of the principal amount thereof to be redeemed) at the then applicable redemption price are held for the purpose of such payment by the Paying Agcnt/Registrar. SECTION 5: Registration - "Transfer -Exchange of Bands-Predecessor Bonds. The Paying Agent/Registraz shall obtain, record, and maintain in the Security Register the name and address of each and every owner of the Bonds issued under and pursuant to the provisions of this Ordinance, or if appropriate, the nominee thereof. Any Bond may be transferred or exchanged for Bonds of other authorized denominations by the Holder, in person or by his duly authorized agent, upon surrender of such Bond to the Paying Agent/Registrar for cancellation, accompanied by a written instrument of transfer ar request for exchange duly executed by the Holder or by his duly authorized agent, in form satisfactory to the Paying Agent/Registrar. 801 Ty3bT.1 ~1U8U1035 Upon surrender of any Bond (other than the Initial Bond(s) referenced in Section 8 hereof) for transfer at the Designated Payment/Transfer Office of the Paying AgentlRegistrar, the Paying Agent/Registrar :shall register and deliver, in the name of the designated transferee or transferees, one or more new Bonds of authorized denominations and having the same Stated Maturity and of a like aggregate principal amount as the Bond or Bonds surrendered for transfer. At the option of the Hodder, Bonds (other than the Initial Bond(s) referenced in Section $ hereof] may be exchanged for other Bonds of authorized denominations and having the same Stated Maturity, bearing the same rate of interest and of like aggregate principal amount as the Bands surrendered for exchange, upon surrender of the Bonds to be exchanged at the Designated Payment/Transfer Office of the Paying AgentlRegistrar. Whenever any Bonds are surrendered for exchange, the Paying Agent/Registrar shall register and deliver new Bonds to the I-Iolder requesting the exchange. All Bonds issued in any transfer or exchange of Bonds shall be delivered to the Holders at the Designated PayrnentJTransfer Office of the Paying Agent/Registrar or sent by United States Mail, first class, postage prepaid to the Holders, and, upon the registration and delivery thereof, the same shall be the valid obligations of the City, evidencing the same obligation to pay, and entitled to the same benefits under this Ordinance, as the Bonds surrendered in such transfer ar exchange. All transfers or exchanges of Bonds pursuant to this Section shall be made without expense or service charge to the Holder, except as otherwise herein provided, and except that the Paying AgentlRegistrar shall require payment by the Holder requesting such transfer or exchange of any tax or ather governmental charges required to be paid with respect to such transfer or exchange. Bonds cancelled by reason of an exchange or transfer pursuant to the provisions hereof are hereby defined to be "Predecessor Bonds," evidencing all ar a portion, as the case may be, of the same obligation to pay evidenced by the new Bond or Bonds registered and delivered in the exchange or transfer therefor. Additionally, the term "Predecessor Bonds" shall include any mutilated, lost, destroyed, or stolen Bond for which a replacement Bond has been issued, registered, and delivered in lieu thereof pursuant to the provisions of Section 11 hereof and such new replacement Bond shall be deemed to evidence the same obligation as the mutilated, lost, destroyed, or stolen Bond. Neither the City nor the Paying Agent/R.egistrar shall be required to issue or transfer to an assignee of a I~Iolder any Bond called for redemption, in whole or in part, within 45 days of the date fixed for the redemption of such Bond; provided, however, such limitation on transferability shall not be applicable to an exchange by the Holder of the unredeemed balance of a Bond called for redemption in part. SECTION 6: Book-Entry Unly Transfers and Transactions. Notwithstanding the provisions contained in Sections 3, 4 and 5 hereof relating to the payment, and transfer/exchange of the Bonds, the City hereby approves and authorizes the use of "Book-Entry Only" securities clearance, settlement and transfer system provided by The Depository Trust Company (DTC), a limited purpose trust company organized under the laws of the State of New York, in accordance 80172967.i/10801035 with the operational arrangements referenced in the $lanket Issuer Letter of Representation, by and between the City and DTC (the "Depository Agreement"). Pursuant to the Depositary Agreement and the n1Jes of DTC, the Bands shall be deposited with DTC who shall hold said Bonds for its participants (the "DTC Participants"). While the Bonds are held by DTC under the Depository Agreement, the Holder of the Bonds on the Security Register for all purposes, including payment and notices, shall be Cede & Co., as nominee of DTC, notwithstanding the ownership of each actual purchaser or owner of each Bond (the "Beneficial Owners"} being recorded in the records of DTC and DTC Participants. In the event DTC determines to discontinue serving as securities depository for the Bonds or otherwise ceases to provide book-entry clearance and settlement of securities transactions in general or the City determines that DTC is incapable of properly discharging its duties as securities depository for the Bonds, the City covenants and agrees with the Holders of the Bonds to cause Bonds to be printed in definitive form and provide for the Bond certificates to be issued and delivered to DTC Participants and Beneficial Owners, as the case may be. Thereafter, the Bonds in definitive form shall be assigned, transferred and exchanged on the Security Register maintained by the Paying AgentlRegistrar and payment of such Bonds shall be made in accordance with the provisions of Sections 3, 4 and 5 hereof. SECTION 7: Execution -Registration. The Bonds shall be executed on behalf of the City by the Mayor under its seal reproduced or impressed thereon and countersigned by the City Secretary. The signature of said officers on the Bonds may be manual or facsimile. Bonds bearing the manual or facsimile signatures of individuals who are or were the proper officers of the City on the Bond Date shall be deemed to be duly executed on behalf of the City, notwithstanding that such individuals or either of them shall cease to hold such offices at the time of delivery of the Bonds to the initial purchaser(s) and with respect to Bonds delivered in subsequent exchanges and transfers, all as authorized and provided in V.T.C.A., Government Code, Chapter 12p1, as amended. No Bond shall be entitled to any right or benefit under this Ordinance, or be valid or obligatory for any purpose, unless there appears an such Bond either a certificate of registration substantially in the form provided in Section 9C, manually executed by the Comptroller of Public Accounts of the State of Texas, or his duly authorized agent, or a certificate of registration substantially in the farm provided in Section 9D, manually executed by an authorized officer, employee or representative of the Paying AgentlRegistrar, and either such certificate duly signed upon any Bond shall be conclusive evidence, and the only evidence, that such Bond has been duly certified, registered, and delivered. SECTION 8: Initial Bond(s). The Bonds herein authorized shall be initially issued either (i) as a single fully registered band in the aggregate principal amount of the Bonds with principal installments to become due and payable as provided in Section 2 hereof and numbered T-l, or (ii) as multiple fully registered bonds, being one bond for each year of maturity in the applicable principal amount and denomination and to be numbered consecutively from T- l and upward (hereinafter called the "Initial Bond(s)"} and, in either case, the Initial Bond(s) shall be registered in the name of the initial purchaser(s) or the designee thereof. The Initial Bond(s) shall be the Bonds submitted to the Office of the Attorney General of the State of Texas for 801?29b7.1~1U801035 approval, certified and registered by the Office of the Comptroller of Public Accounts of the State of Texas and delivered to the initial purchaser(s). Any time after the delivery of the initial Bond(s), the Paying Agent/Registrar, pursuant to written instructions from the initial purchasers}, or the designee thereof, shall cancel the Initial Bond(s) delivered hereunder and exchange therefor definitive Bonds of authorized denominations, Stated Maturities, principal amounts and bearing applicable interest rates for transfer and delivery to the Holders named at the addresses identified therefor; all pursuant to and in accordance with such written instructions from the initial purchaser(s), or the designee thereof, and such other information and documentation as the Paying AgenURegistrar may reasonably require. SECTION 9: Forms A. Farms Generally, The Bands, the Registration Certificate of the Comptroller of Public Accounts of the State of Texas, the Registration Certificate of Paying Agent/Registrar, and the form of Assignment to be printed on each of the Bonds, shall be substantially in the forms set forth in this Section with such appropriate insertions, omissions, substitutions, and other variations as are permitted or required by this Ordinance and may have such letters, numbers, or other marks of identification (including identifying numbers and letters of the Committee on Uniform Securities Identification Procedures of the American Bankers Association) and such legends and endorsements (including insurance legends in the event the Bonds, or any maturities thereof, are purchased with insurance and any reproduction of an opinion of counsel} thereon as may, consistently lrerevv>lth, be established by the City or determined by the officers executing such Bonds as evidenced by their execution. Any portion of the text of any Bonds may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Bond. The definitive Bondfi and the Initial Bond(s) shall be printed, lithographed, or engraved, typewritten, photocopied or otherwise reproduced in any other similar manner, all as determined by the officers executing such Bonds as evidenced by their execution thereof. A. Form of Definitive Bond. REGISTERED NO. REGISTERED UNITED STATF,S OF AMF..RICA STATE OF TEXAS CITY OF NORTH RICHI,AND HILLS, TEXAS GENERAL OBLIGATION BOND, SERIES 2008 Bond Date: Interest Rate: Stated Maturity: C~CJSIP NO: April l 5, 2008 ~% February 15, 20_ __ ___ Registered Owner: Principal Amount: DOLLARS SQ172967 i/10801fl35 The City of North Richland Hills (hereinafter referred to as the "City"), a body corporate and political subdivision in the County of Tarrant, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the Registered Owner named above, or the registered assigns thereof, on the Stated Maturity date specified above the Principal Amount hereinabove stated (or so much thereof as shall not have been paid upon prior redemption) and to pay interest on the unpaid principal amount hereof from the interest payment date next preceding the "Registration Date" of this Bond appearing below {unless this Bond bears a "Registration Date" as of an interest payment date, in which case it shall bear interest from such date, or unless the "Registratian llate'" of this Bond is prior to the initial interest payment date in which case it shall bear interest from the Bond Date) at the per annum rate of interest specified above computed on the basis of a 3b0-day year of twelve 30-day months; such interest being payable on February I S and August 15 in each year, commencing February 15, 2009. Principal of this Bond is payable at its Stated Maturity or redemption to the registered owner hereof, upon presentation and surrender, at the Designated Payment/Transfer Office of the Paying Agent/Registrar executing the registration certificate appearing hereon, or its successor. Interest is payable to the registered oKmer of this Bond (or one or more Predecessor Bonds, as defined in the Ordinance hereinafter referenced) whose name appears on the "Security Register" maintained by the Paying Agent/Registrar at the close of business on the "Record Date", which is the last business day of the month next preceding each interest payment date, and interest shall be paid by the Paying Agent/Registrar by chcx:k sent United States Mail, first class postage prepaid, to the address of the registered owner recorded in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the registered owner. If the date for the payment of the principal of or interest on the Bonds shall be a Saturday, Sunday, a legal holiday, or a day when banking institutions in the city where the Designated Payment/Transfer Office of the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day when banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. All payments of principal of, premium, if any, and interest on this Bond shall be without exchange or collection charges to the owner hereof and in any coin or currency of the United States of America which at the time of payment is legal tender far the payment of public and private debts. This Bond is one of the series specified in its title issued in the aggregate principal amount of $4,180,000 (herein referred to as the "Bonds") for permanent public improvements and public purposes, to wit: street improvements, including traffic signalization, drainage incidental thereto and the acquisition of land and right-of--way therefor, under and in strict conformity with the Constitution and laws of the State of Texas and pursuant to an Ordinance adopted by the City Council of the City (herein refereed tv as the "Ordinance"). T`he Bonds maturing on and after February 1 S, 2019, may be redeemed prior to their Stated Maturities, at the option of the City, in whole or in part in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity by lot by the Paying Agent/Registrar), on February 15, 2018, or on any date thereafter, at the redemption price of par, together with accrued interest to the date of redemption. i{01923CiT.1 ~ 10801035 At least thixty days prior to the date fixed for any redemption of Bonds, the City shall cause a written notice of such redemption to be sent by United States Mail, fast class postage prepaid, to the registered owners of each Bond to be redeemed at the address shown on the Security Register and subject to the terms and provisions relating thereto captained in the Ordinance. If a Band (or any portion of its principal sum) shall have been duly called far redemption and notice of such redemption duly given, then upon such redemption date such Bond (or the portion of its principal sum to be redeemed) shall become due and payable, and interest thereon shall cease to accrue from aad after the redemption date therefor; provided moneys for the payment of the redemption price and the interest on the principal amount to be redeemed to the date of redemption are held for the purpose of such payment by the Paying Agerri/Registrar. In the event a portion of the principal amount of a Bond is to be redeemed and the registered owner is someone other than Cede & Co., payment of the redemption price of such principal amount shall be made to the registered owner only upon presentation and surrender of such Bond to the Designated PaymentlTttansfer OB'ice of the Paying AgentlRegistrar, and a new Bond or Bonds of like maturity and interest rate in any authorized denominations provided by the Ordinance for the then unredeemed balance of the principal sum thereof will be issued to the registered owner, without charge. if a Bond is selected for redemption, in whole or in part, the City and the Paying Agent/Registrar shall not be required to transfer such Bond to an assignee of the registered owner within 45 days of the redemption date therefor; provided, however, such limitation on transferability shall not be applicable to an exchange by the registered owner of the unredeemed balance of a Bond redeemed in part. The Bonds are payable from the proceeds of an ad valorem tax levied, within the limitations prescribed by law, upon all taxable property in the City. Reference is hereby made to the Ordinance, a copy of which is on file in the Designated Payment/Transfer Office of the Paying Agent/Registrar, and to all of the provisions of which the owner or holder of this Bond by the acceptance hereof hereby assents, for definitions of terms; the description of and the nature and extent of the tax levied for the payment of the Bonds; the terms and conditions relating to the transfer or exchange of this Bond; the conditions upon which the Ordinance may be amended or supplemented with or without the consent of the Holders; the rights, duties, and obligations of the Ciry and the Paying Agent/Registrar; the terms and provisions upon which this Bond may be discharged at or prior to its maturity or redemption, and deemed to be no longer Outstanding thereunder; and for other terms and provisions contained therein. Capitalized terms used herein have the meanings assigned in the Ordinance. This Bond, subject to certain limitations captained in the Ordinance, may be transferred on the Security Register only upon its presentation and surrender at the Designated Payment/Transfer Office of the Paying AgentlRegistrar, with the Assignment hereon duly endorsed by, or accompanied by a written iastrument of transfer in form satisfactory to the Paying Agent/Registrar duly executed by, the registered owner hereof, or his duly authorized agent. When a transfer an the Security Register occurs, one or more new fully registered Bonds of the same Stated Maturity, of authorized denominations, bearing the same rate of interest, and of the same aggregate principal amount will be issued by the Paying Agent/Registrar to the designated transferee or transferees. 8U l 72967. l; 1 U80 t 035 The City and the Paying Agent/Registrar, and any agent of either, shall treat the registered owner whose name appears on the Security Register (i) on the Record Date as the owner entitled to payment of interest hereon, (ii) on the date of surrender of this Bond as the owner entitled to payment of principal hereof at its Stated Maturity or its redemption, in whole or in part, and (iii) on any other date as the owner for all other purposes, and neither the City nor the Paying AgentlRegistrar, or any agent of either, shall be affected by notice to the contrary. In the event of nonpayment of interest vn a scheduled payment date and for thirty {30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States Mail, first class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business an the last business day next preceding the date of mailing of such notice. It is hereby certified, recited, represented and declared that the City is a body corporate and political subdivision duly organized and legally existing under and by virtue of the Constitution and laws of the State of Texas; that the issuance of the Bonds is duly authorized by law; that alt acts, conditions and things required to exist and be done precedent to and in the issuance of the Bonds to render the same lawful and valid obligations of the City have been properly done, have happened and have been performed in regular and due time, form and manner as required by the Constitution and laws of the State of Texas, and the Ordinance; that the Bonds do not exceed any Constitutional or statutory limitation; and that due provision has been made for the payment of the principal of and interest on the Bonds by the levy of a tax as aforestated. In case any provision in this Bond shall be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or unpaired thereby. The terms and provisions of this Bond and the Ordinance shall be construed in accordance with and shall be governed by the laws of the State of Texas. IN WITNESS WHEREOF, the City Council of the Ciry has caused this Bond to be duly executed under the official seal of the City as of the Bond Date. CITY OF NORTH RICI-1LAND HILLS, TEXAS Mayor COUNTERSIGNED: City Secretary (SEAL) 80 t 72967. I ~ t 0801035 10 B. Form of Registration Certificate of Comptroller of Public Accounts to appear on Initial Bond(s) only. REGISTRATION CERTIFICATE OF COMPTROLLER OF PUBLIC ACCOUNTS OFFICE OF THE COMPTROLLER ) OF PUBLIC ACCOUNTS ) REGISTER NO. THE STATE OF TEXAS ) I HEREBY CERTIFY that this Bond has been examined, certified as to validity and approved by the Attorney General of the State of Texas, and duly registered by the Comptroller of Public Accounts of the State of Texas. WITNESS my signature and seal of office this (SEAL) Comptroller of Public Accounts of the State of Texas C. Form of Certificate of Paying AgentlRegistrar to appear on Definitive Bonds only. REGISTRATION CER'~IFICATE OF PAYING AGENT/REGiSTR11R This Bond has been duly issued and registered under the provisions of the within•mentioned Ordinance; the bond or bonds of the above entitled and designated series originally delivered having been approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts, as shown by the records of the Paying Agent/Registrar. The designatcd ofTices of the Paying Agent/Registrar in Dallas, Texas is the "Designated Payment/Transfer Office" for this Bond. THE BANK OF NEW YORK TRUST COMPANY, N.A., Dallas, 'Texas Registration date: By Authorized Signature soln46~.~/~oso~o3s 11 D. Form of Ass%gnment. ASSIGNMEN'1~ FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto (Print or typewrite name, address, and zip code of transferee:) (Social Security or other identifying number )the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. DATED: Signature guaranteed: NOTICE: The signature on this assignment must comspond with the name of the registered owner as it appears on the face of the within Bond in every particular. E. The Initial Bond(s) shall be in the form set forth in paragraph B of this Section, except that the form of the single fully registered Initial Bond shall be modified as follows: REGISTERED NO. T-1 UNITED STATES OF AMERICA STATE OF TEXAS CITY OF ?VOItTH RTCHLAND HILLS, TEXAS UEIvERAL OBLIGATION BOND, SFRTES 2008 Tiond Date: April 15, 2008 Registered Owner: REGISTERED $4,180,000 Principal Amount: FOUR MILLION ONE HUNDRED EIGHTY T)•IOUSAND DOLLARS The City of North Richland Hills (hereinafter referred to as the "City"), a body corporate and municipal corporation in the County of Tarrant, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the Registered Owner named above, or the registered assigns thereof, the Principal Amount hereinabove stated on February 15 in each of the years and in principal installments in accordance with the following schedule: so»a~~. i/ioxo~o3s 12 PRINCIPAL IN'['ERES`I' YEAR II~TSTALLMENTS RATE (Information to be inserted from schedule in Section 2 hereof). (or so much principal thereof as shall not have been prepaid prior to maturity) and to pay interest on the unpaid Principal Amount hereof from the Bond Date at the per annum rates of interest specified above computed on the basis of a 360-day year of twelve 30-day months; such interest being payable on February 15 and August 15 in each year, commencing February 15, 2009. Principal installments of this $ond are payable in the year of maturity or on a prepayment date to the registered owner hereof by The Bank of New York Trust Company, N.A., Dallas, Texas (the "Paying Agent/Registrar"), upon its presentation and surrender, at its designated offices in Dallas, Texas (the "Designated Payment/Transfer Office"}. Interest is payable to the registered owner of this Bond whose name appears on the "Security Register" maintained by the Paying Agent/Registrar at the close of business an the "Record Date", which is the last business day of the month next preceding each interest payment date, and interest shall be paid by the Paying Agent/R.egistrar by check sent United States Mail, first class postage prepaid, to the address of the registered owner recorded in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the registered owner, If the date for the payment of the principal of or interest on the Bonds shall be a Satwday, Sunday, a legal holiday, or a day when banking institutions in the city where the Designated PaymentlTransfer Office of the Paying AgentlRegistrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Satwday, Sunday, legal holiday, or day when banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. All payments of principal of, premium, if any, and interest on this Bond shall be without exchange or collection charges to the owner hereof and in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. SECTION 10: Levy of Taxes. To provide for the payment of the "Debt Service Requirements" of the Boads, being (i) the interest on the Bonds and (ii) a sinking fund for their payment at maturity or redemption or a sinking fund of 2% (whichever amount is the greater), there is hereby levied, and there shall be annually assessed and collected in due time, form, and manner, a tax on all taxable property in the City, within the limitations prescribed by law, and such tax hereby levied on each one hundred dollars' valuation of taxable property in the City for the Debt Service Requirements of the Bonds shall be at a rate from year to year as will be ample and sufficient to provide funds each year to pay the principal of and interest on said Bonds while Outstanding; full allowance being made for delinquencies and costs of collection; separate books and records relating to the receipt and disbursement of taxes levied, assessed and Collected for and on account of the Bonds shall be kept and maintained by the City at all times while the Boads are Outstanding, and the taxes collected for the payment of the Debt Service Requirements on the Bonds shall be deposited to the credit of a "Special 2008 Bond Account" (the "Interest and Sinking Fund") maintained on the records of the City and deposited in a special fund maintained at an official depository of the City's funds; and such tax hereby levied, and to be assessed and collected annually, is hereby pledged to the payment of the Bonds. 861?2947 110801035 13 The Mayor, Mayor Pro Tem, City Manager, Assistant City Manager, Director of Finance and City Secretary of the City, individually or jointly, are hereby authorized and directed to cause to be transferred to the Paying Agent/ Registrar for the Bonds, from funds on deposit in the Interest and Sinking Fund, amounts sufficient to fully pay and discharge promptly each installment of interest and principal of the Bonds as the same accrues or matures or comes due by reason of redemption prior to maturity; such transfers of funds to be made in such manner as will cause collected funds to be deposited with the Paying AgentlRegistraz on or before each principal and interest payment date for the Bonds. SECTION 11: Mutilated-D~,stroyed-Lost and Stolen Bands. In case any Bond shall be mutilated, ar destroyed, lost or stolen, the Paying Agent/Registrar may execute and deliver a replacement Bond of like form and tenor, and in the same denomination and bearing a number nat contemporaneously outstanding, in exchange and substitution for such mutilated Bond, or in lieu of and in substitution for such destroyed, lost or stolen Bond, only upon the approval of the Cit}r and after (i) the filing by the Holder thereof with the Paying Agent/Registraz of evidence satisfactory to the Paying AgentlRegistraz of the destruction, loss or theft of such Bond, and of the authenticity of the ownership thereof and (ii) the furnishing to the Paying AgentlRegistraz of indemnification in an amount satisfactory to hold the City and the Paying AgentlRegistraz harmless. All expenses and charges associated with such indemnity and with the preparation, execution and delivery of a replacement Bond shall be borne by the Ilolder of the Bond mutilated, or destroyed, lost or stolen. Every replacement Bond issued pursuant to this Section shall be a valid and binding obligation, and shall be entitled to all the benefits of this Ordinance equally and ratably with all other Outstanding Bonds; notwithstanding the enforceability of payment by anyone of the destroyed, lost, or stolen Bonds. The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement and payment of mutilated, destroyed, lost or stolen Bonds. SECTION 12: Satisfaction of Obligation of Ciri. If the City shall pay or cause to be paid, or there shall otherwise be paid to the Holders, the principal of, premium, if any, and interest on the Bonds, at the times and in the manner stipulated in this Ordinance, then the pledge of taxes levied under this Ordinance and all covenants, agreements, and other obligations of the City to the Holders shall thereupon cease, terminate, and be discharged and satisfied. Bonds or any principal amount(s) thereof shall be deemed to have been paid within the meaning and with the effect expressed above in this Section when (i) money sufficient to pay in full such Bonds or the principal amount(s) thereof at maturity or to the redemption. date therefor, together with all interest due thereon, shall have been irrevocably deposited with and held in trust by the Paying Agent/Registrar, or an authorized escrow agent, or (ii) Uovernment Securities shall have been irrevocably deposited in trust with the Paying Agent/Registrar, or an authorized escrow agent, which Government Securities have been certified by an independent accounting firm to mature as to principal and interest in such amounts and at such times as will insure the availability, without reinvestment, of sufficient money, together with any moneys deposited therewith, if any, to pay when due the principal of and interest on such Bonds, or the principal soin~~.i/~oaoto3s 14 amount(s) thereof, on and prior to the Stated Maturity thereof or (if notice of redemption has been duly given or waived or if irrevocable arrangements therefor acceptable to the Paying Agent/Registrar have been made) the redemption date thereof. The City covenants that no deposit of moneys or Government Securities will be made under this Section and no use made of any such deposit which would cause the Bonds to be treated as "arbitrage bonds" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, or regulations adopted pursuant thereto. Any moneys so deposited with the Paying Agent/ Registrar, or an authorized escrow agent, and all income from Government Securities held in trust by the Paying AgentlR.egistrar, or an authorized escrow agent, pursuant to this Section which is not required for the payment of the Bonds, or any principal amount(s) thereof, or interest thereon with respect to which such moneys have been so deposited shall be remitted to the City or deposited as directed by the City. Furthermore, any money held by the Paying Agent/Registrar for the payment of the principal of and interest on the Bonds and remaining unclaimed for a period of three (3) years after the Stated Maturity, or applicable redemption date, of the Bonds such moneys were deposited and are held in trust to pay shall upon the request of the City be remitted to the City against a written receipt therefor. Notwithstanding the above and foregoing, any remittance of funds from the Paying AgentlRegistrar to the City shall be subject to any applicable unclaimed property laws of the State of Texa_c. The term "Government Securities" shall mean (i) direct noncallable obligations of the United States of America, including obligations the principal of and interest on which are unwnditionally guaranteed by the United States of America, (ii) noncallable obligations of an agency or instrumentality of the United States, including obligations unconditionally guaranteed or insured by the agency or instrumentality and on the date of their acquisition or purchase by the City are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent and (iii) noncallable obligations of a state or an agency or a county, municipality, or other political subdivision of a state that have been refunded and on the date of their acquisition or purchase by the City, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA ar its equivalent. SECTION 13: Ordinance aContract - Amendments - Outstanding Bands. This Ordinance shall constitute a contract with the Holders from time to time, be binding an the City, and shall not be amended or repealed by the City so long as any Band remains Outstanding except as permitted in this Section and in Section 28 hereof. The City may, without the consent of ar notice to any I~Iolders, from time to time and at any time, amend this Ordinance in any manner not detrimental to the interests of the Holders, including the curing of any ambiguity, inconsistency, or formal defect or omission herein. In addition, the City may, with the consent of Holders holding a majority in aggregate principal amount of the Bonds then Outstanding, amend, add to, or rescind any of the provisions of this Ordinance; provided that, without the consent of all Holders of Outstanding Bonds, no such amendment, addition, or rescission. shall (1) extend the time or times of payment of the principal of, premium, if any, and interest on the Bonds, reduce the principal amount thereof, the redemption price therefor, or the rate of interest thereon, or in any other way modify the terms of payment of the principal of, premium, if any, or interest an the Bonds, (2} give any preference to any Bond over any other Bond, or (3) reduce the 801~2yb7.i/lU8b1033 1 5 aggregate principal amount of Bonds required to be held by Holders for consent to any such amendment, addition, or rescission. The term "outstanding" when used in this Ordinance with respect to Bonds means, as of the date of determination, all Bonds theretofore issued and delivered under this Ordinance, except: (1) thaw Bonds cancelled by the Paying Agent/Registrar or delivered to the Paying Agent/Registrar for cancellation; (2) thaw Bonds deemed to be duly paid by the City in accordance with the provisions of Section 12 hereof; and (3) those mutilated, destroyed, lost, or stolen Bonds which have been replaced with Bonds registered and delivered in lieu thereof as provided in Section 11 hereof. SECTION 14: Covenants to Maintain Tax-Exemgl Status. (a) Definitions. When used in this Sectian 14, the following terms have the following meanings: "Closing Date" means the date on which the Bonds are first authenticated and delivered to the initial purchasers against payment therefor. "Code" means the Internal Revenue Code of 1986, as amended by all legislation, if any, effective on or before the Closing Date. "Computation Date" has the meaning set forth in Section 1.148-I (b) of the Regulations. "Gross Proceeds" means any proceeds as defined in Section 1.148-1(b) of the Regulations, and any replacement proceeds as defined in Section 1.148- l (c) of the Regulations, of the Bonds. "Investment" has the meaning set forth in Section 1.14$-1(b) of the Regulations. "Nonpurpose Investment" means any investment property, as defined in section 148(b) of the Code, in which Gross Proceeds of the Bonds are invested and which is not acquired to carry out the governmental purposes of the Bonds. "Rebate Amount" has the meaning set forth in Section 1.148-1(b) of the Regulations. "Regulations" means any proposed, temporary, or final Income Tax Regulations issued pursuant to Sections 103 and 141 through 1 SO of the Code, and 103 of the Internal Revenue Code of 1954, which are applicable to the Bonds. soinvb~. i/~oao~a3s 16 Any reference to any specific Regulation shall also mean; as appropriate, any proposed, temporary or final Income Tax Regulation designed to supplement, amend or replace the specific Regulation referenced. "Yield" of (1} any Investment has the meaning set forth in Section 1.14$- 5 of the Regulations and (2) the Bonds has the meaning set forth in Section 1.148-4 of the Regulations. (b) Not to Cause Interest to Become Taxable. The City shall not use, permit the use of, or omit to use Gross Proceeds or any other amounts (or any property the acquisition, construction or improvement of which is to be financed directly or indirectly with Gross Proceeds) in a manner which if made or omitted, respectively, would cause the interest on any Bond to become includable in the gross income, as defined in section 61 of the Code, of the owner thereof for federal income tax purposes. Without limiting the generality of the foregoing, unless and until the City receives a written opinion of counsel nationally recognized in the field of municipal bond law to the effect that failure to comply with such covenant will not adversely affect the exemption from federal income tax of the interest on any Bond, the City shall comply with each of the specific covenants in this Section. (c} No Private Use or Priv_ate___ Pa}!ments. Except as permitted by section 141 of the Code and the Regulations and pilings thereunder, the City shall at all times prior to the last Stated Maturity of Bonds: (1) exclusively own, operate and possess all property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with Gross Proceeds of the Bonds, and not use or permit the use of such Grass Proceeds (including all contractual arrangements with terms different than those applicable to the general public) or any property acquired, constructed or improved with such Gross Proceeds in any activity carried on by any persan or entity (including the United States or any agency, department and instrumentality thereof) other than a state or local government, unless such use is solely as a member of the general public; and {2) not directly or indirectly impose or accept any charge or other payment by any person or entity who is treated as using Gross Proceeds of the fonds or any property the acquisition, construction or improvement of vtirhich is to be financed or refinanced directly or indirectly with such Gross Proceeds, other than taxes of general application within the City or interest earned on investments acquired with such Gross Proceeds pending application for their intended Purposes. {d) No Private Loan. Except to the extent permitted by section 141 of the Code and the Regulations and rulings thereunder, the City shall not use Gross Proceeds of the Bonds to make or finance loans to any person or entity other than a state or local government. Far purposes of the foregoing covenant, such Gross Proceeds are considered to be "loaned" to a person or entity if (1) property acquired, constructed or improved with such Gross Proceeds is sold or leased to such person or entity in a transaction which creates a debt for federal income tax so~~rw~.i/ioso~o~s l7 purposes; (2) capacity in or service from such property is committed to such person or entity under stake-or-pay, output or similar contract or arrangement; or (3) indirect benefits, or burdens and benefits of ownership, of such Gross Proceeds or any property acquired, constnrcted or improved with such Gross Proceeds aze otherwise transferred in a transaction which is the economic equivalent of a loan. (e) Nat to Invest at Higher Yield. Except to the extent permitted by section 148 of the Code and the Regulations and rulings thereunder, the City shall not at any time prior to the final Stated Maturity of the Bonds directly or indirectly invest Gross Proceeds in any Investment (or use Gross Proceeds to replace money so invested), if as a result of such investment the Yield from the Closing Date of all Investments acquired with Gross Proceeds (or with money replaced thereby), whether then held or previously disposed of, exceeds the Yield of the Bonds. (f) ~Iot Federally Guaranteed. Except to the extent permitted by section 149(b) of the Code and the Regulations and rulings thereunder, the City shall not take or omit to take any action which would cause the Bonds to be federally guaranteed within the meaning of section i 49(b) of the Code and the Regulations and rulings thereunder. (g) Information Report. The City shall timely file the information required by section 149(e) of the Code with the Secretary of the Treasury on Form 8038-G or such other form and in such place as the Secretary may prescribe. (h) Rebate of Arbitrage Profits. Except to the extent otherwise provided in section 148(f) of the Code and the Regulations and rulings thereunder: (l) The City shall account for all Gross Proceeds (including alI receipts, expenditures and investments thereof) on its books of account separately and apart from all other funds (and receipts, expenditures and investments thereof] and shall retain all records of accounting for at least six years after the day on which the last Outstanding Bond is discharged. However, to the extent permitted by law, the City may commingle Gross Proceeds of the Bond4 with other money of the City, provided that the City separately accounts for each receipt and expenditure of Gross Proceeds and the obligations acquired therewith. (2) Not less frequently than each Computation Date, the City shall calculate the Rebate Amount in accordance with rules set forth in section 148( fl of the Code and the Regulations and rulings thereunder. The City shalt maintain such calculations with its official transcript of proceedings relating to the issuance of the Bonds until six years after the final Computation llate. (3) As additional consideration for the purchase of the Bonds by the Purchasers and the loan of the money represented thereby and in order to induce such purchase by measures designed to insure the excludability of the interest thereon from the gross income of the owners thereof for federal income tax purposes, the City shall pay to the United States from the construction fund, other appropriate fund, or, if permitted by applicable Texas statute, regulation or opinion of the Attorney General of the State of Texas, the Interest and Sinking tsotn~~. t/tosoto~s 18 Fund, the amount that when added to the future value of previous rebate payments made for the Bonds equals (i) in the case of a Final Computation Date as defined in Section 1.148-3(ex2) of the Regulations, one hundred percent (100%) of the Rebate Amount on such date; and (ii) in the case of any other Computation Date, ninety percent (90%) of the Rebate Amount on such date. In all cases, the rebate payments shall be made at the times, in the installments, to the place and in the manner as is or may be required by section 148(f) of the Code and the Regulations and rulings thereunder, and shall be accompanied by Form 8038-T or such other forms and information as is or may be required by Section 148(fj of the Code and the Regulations and rulings thereunder. (4) The City shall exercise reasonable diligence to assure that no errors are made in the calculations and payments required by paragraphs (2) and (3), and if an error is made, to discover and promptly correct such error within a reasonable amount of time thereafter (and in all events within one hundred eighty (180) days after discovery of the error), including payment to the United States of any additional Rebate Amount owed to it, interest thereon, and any penalty imposed under Section 1.148-3(h) of the Regulations. (i) Not to Divert Arbitrage Profits. Except to the extent permitted by section 148 of the Code and the Regulations and rulings thereunder, the City shall not, at any time prior to the earlier of the Stated Maturity or final payment of the Bonds, enter into any transaction that reduces the amount required to be paid to the United States pursuant to Subsection h oC this Section because such transaction results in a smaller profit or a larger loss than would have resulted if the transaction had been at arm's length and had the Yield of the Bonds not been relevant to either party. (j) Elections. The City hereby directs and authorizes the Mayor, Mayor Pro Tem., City Manager, Assistant City Manager, Director of Finance and City Secretary, individually or jointly, to make elections permitted or required pursuant to the provisions of the Code or the Regulations, as they deem necessary or appropriate in connection with the Bonds, in the Certificate as to Tax Exemption or similaz or other appropriate certificate, form or document. (k) Oualified Tax Exempt Obligations. In accordance with the provisions of paragraph {3) of subsection (b) of Section 2b5 of the Code, the City hereby designates the Bonds to be "qualified tax exempt obligations" in that the Bonds are not "private activity bonds" as defined in the Code and the reasonably anticipated amount of "qualified tax exempt obligations" to be issued by the City (including all subordinate entities of the City) far the calendar year 2008 will not exceed $10,000,000. SECTION 15: Sale of Bonds. Pursuant to a public sale far the Bonds, the bid submitted by _ ~ _ ~ (herein referred to as the "Purchasers") is declared to be the best bid received producing the lowest true interest cost rate to the City, and the sale of the Bonds to said Purchasers at the price of par and accrued interest to the date of delivery, plus a premium of $ ___~ , is hereby approved and confirmed. Delivery of the Bonds to the Purchasers shall occur as soon as possible upon payment being made therefor in accordance with the terms of sale. 8b192961.1f 10801035 19 SECTION 16: Official Statement Approval. The use of the Official Statement by the Purchasers in connection with the public offering and sale of the Bonds is hereby ratified, confirmed and approved in all respects. "I`he final Official Statement, which reflects the terms of sale (together with such changes approved by the Mayor, Mayor Pro Tem, City Secretary, City Manager, Assistant City Manager, and Director of Finance, one or more of said officials), shall be and is hereby in all respects approved and the Purchasers arc hereby authorized to use and distribute said final Official Statement, dated Apri128, 2008, in the reoffering, sale and delivery of the Bonds to the public. SECTION 17: Control and Custody,.of Bonds. The Mayor of the City shall be and is hereby authorized to take and have charge of all necessary orders and records pending investigation by the Attorney General of the State of Texas, including the printing and supply of definitive Bonds, and shall take and have charge and control of the Initial Bond(s) pending the approval thereof by the Attorney General, the registration thereof by the Comptroller of Public Accounts and the delivery thereof to the initial purchasers. Furthermore, the Mayor, Mayor Prv Tem, City Secretary, City Manager, Assistant City Manager and Director of Finance, any one or more of said officials, are hereby authorized and directed to furnish and execute such documents and certifications relating to the City and the issuance of the Bonds, including certifications as to facts, estimates, circumstances and reasonable expectations pertaining to the use, expenditure, and investment of the proceeds of the Bonds, as may be necessary for the approval of the Attorney General, the registration by the Comptroller of Public Accounts and the delivery of the Bonds to the purchasers, and, together with the City's financial advisor, bond counsel and the Paying Agent/Registrar, make the necessary arrangements for the delivery of the Initial Bond(s) to the purchasers and the initial exchange thereof for definitive Bonds. SECTION 18: Proceeds of Sale. The proceeds of sale of the Bonds, excluding the accrued interest and premium in the amount of $ received from the Purchasers, shall be deposited in a construction fund maintained at the City's depository bank. Pending expenditure for authorized projects and purposes, such proceeds of sale may be invested in authorized investments and, subject to the provisions of Section 14(h) hereof, any investment earnings realized shall be expended for such authorized projects and purposes or deposited in the Interest and Sinking Fund as shall be determined by the City Council. Accrued interest and premium in the above amount received from the Purchasers as well as all surplus proceeds of sale of the Bonds, including investment earnings, remaining after completion of all authorized projects or purposes and paying or making provision for the payment of the amounts owed pursuant to Section 14(h) hereof shall be deposited to the credit of the Interest and Sinking Fund, SECTION 19: Notices to Holders-Waiver. Wherever this Ordinance provides for notice to 1-Iolders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and sent by United States Mail, first class postage prepaid, to the address of each Holder appearing in the Security Register at the close of business on the business day next preceding the mailing of such notice. In any case where notice to Holders is given by mail, neither the failure to mail such notice to any particular Holders, nor any defect in any notice so mailed, shall affect the soin~7. ~Iiagoio3s 20 sufficiency of such notice with respect to all other Bonds. Where this Ordinance provides for notice in any manner, such notice may be waived in writing by the Holder entitled to receive such notice, either before or after the event with respect to which such notice is given, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Paying Agent/Registrar, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. SECTION 20: Cancellation. All Bonds surrendered for payment, redemption, transfer, exchange, or replacement, if surrendered to the Paying AgentlRegistrar, shall be promptly cancelled by it and, if surrendered to the City, shall be delivered to the Paying Agent/Itegistrar and, if not already cancelled, shall be promptly cancelled by the Paying AgentlRegistrar. The City may at any time deliver to the Paying AgentlRegistrar for cancellation any Bonds previously certified or registered and delivered which the City may have acquired in any manner whatsoever, and all Bonds so delivered shall be promptly cancelled by the Paying Agent/Registrar. All cancelled fonds held by the Paying Agent/Registrar shall be returned to the City. SECTION 21: l,~egal Opinion. The obligation of the Purchasers to accept delivery of the Bonds is subject to being furnished a final opinion of Fulbright & Jaworski L.L.P., Attorneys, Dallas, Texas, approving such Bonds as to their validity, said opinion to be dated and delivered as of the date of delivery and payment for such Bonds. A true and correct reproduction of said opinion is hereby authorized to be printed on the definitive Bonds or an executed counterpart thereof shall accompany the global Bonds deposited with the Depository Trust Company. SECTION 22: CUSIP Numbers. CUSIP numbers may be printed or typed on the definitive Bonds. it is expressly provided, however, that the presence or absence of CUSIP numbers on the definitive Bonds shall be of no significance or effect as regazds the legality thereof and neither the City nor attorneys approving the Bonds as to legality are to be held responsible for CUSIP numbers incorrectly printed or typed on the definitive Bonds. SECTION 23: benefits of Ordinance. Nothing in this Ordinance, expressed or implied, is intended or shall be construed to confer upon any person other than thc City, the Paying AgentlRegistrar and the Holders, any right, remedy, or claim, legal or equitable, under or by reason of this Ordinance or any provision hereof, this Ordinance and all its provisions being intended to be and being for the sole and exclusive benefit of the City, the Paying Agent/Registrar and the Holders. SECTION 24: inconsistent Provisions. All ordinances, orders or resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed to the extent of such conflict, and the provisions of this Ordinance shall be and remain controlling as to the matters contained herein. SECTION 25: Governinyg Law. This Ordinance shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. SECTION 2Fi: Effect of Headings. The Section headings herein are for convenience only and shall not affect the construction hereof. 841?296? 1/10841035 2 1 SECTION 27: Construction of Terms. If appropriate in the context of this Ordinance, wards of the singular number shall be considered to include the plural, words of the plural number shall be considered to include the singular, and wvrds of the masculine, feminine yr neuter gender shall be considered to include the other genders. SECTION 28: Continuing Disclosure Undertaking. (a) Definitions. As used in this Section, the following terms Gave the meanings ascribed to such terms below: "MSRB" means the Municipal Securities Rulemaking Board. "NRMSIR" means each person whom the SEC or its staff has determined to be a nationally recogni2ed municipal securities information repository within the meaning of the Mule from time to time. "Rule" means SEC Rule 15c2-12, as amended from time to time. "SEC" means the United States Securities and Exchange Commission. "SID" means any person designated by the State of Texas or an authorized department, officer, or agency thereof as, and determined by the SEC or its staff to be, a state information depository within the meaning of the Rule from time to time. (b) Annual Reports. The City shall pravide annually to each NRMSIR and any SID, within six months after the end of each fiscal year (beginning with the fiscal year ending September 30, 2008) financial information and operating data with respect to the City of the general type included in the final Official Statement approved by Section 16 of this Ordinance, being the information described in Exhibit 13 hereto. Financial statements to be provided shall be (1) prepazed in accordance with the accounting principles described in Exhibit B hereto and. (2) audited, if the City commissions an audit of such statements and the audit is completed within the period during which they must be provided. If audited financial statements are not available at the time the financial information and operating data must be provided, then the City shall pmvide unaudited financial statements for the applicable fiscal year to cash NRMSIR and any SID with the financial infvrmativn anti operating data and will file the annual audit report when and if the same becomes available. If the City changes its fiscal year, it will notify each NRMSIR and any SID of the change (and of the date of the new fiscal year end) prior to the next date by which the City otherwise would be required to provide financial information and operating data pursuant to this Sectian. The financial information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any document (including an official statement or other offering document, if it is available from the MSRB) that theretofore has been provided to each NRMSIR and any SID or filed with the SEC. 841729fi7.1~10801035 22 (c) Material Event Notices. The City shall notify any SID and either each NRMSIR or the MSR13, in a timely manner, of any of the fallowing events with respect to the Bonds, if such event is material within the meaning of the federal securities laws: (1) Principal and interest payment delinquencies; (2) Non-payment related defaults; (3) Unscheduled draws on debt service reserves reflecting financial ditTiiculties; (4) Unscheduled draws on credit enhancements reflecting financial difficulties; (5) Substitution of credit or liquidity providers, or their failure to perform; (b) Adverse tax opinions or events affecting the tax-exempt status of the Bonds; (7) Modifications to rights of holders of the Bonds; (8) Bond calls; (9) Defeasances; (10) Release, substitution, or sale of property securing repayment of the Bonds; and (11) Rating changes. The City shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, of any failure by the City to provide #inancial information or operating data in accordance with subsection (b) of this Section by the time required by such Section. (d) Limitation;;, Disclaimers. and Amendments. The City shall be obligated to observe and perform the covenants specifted in this Section while, but only while, the City remains an "obligated person" with respect to the Bonds within the meaning of the Rule, except that the City in any event will give the notice required by subsection (c) hereof of any Bond calls and defeasance that cause the City to be no longer such an "obligated person." The provisions of this Section are for the sole benefit of the Holders and beneficial owners of the Bonds, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The City undertakes to provide only t11e financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the City's financial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Section or otherwise, except as expressly provided herein. The City does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Bonds at any future date. UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER OR BENEFICIAL OWNER OF A~JY BOND OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE OR IN PART FROM ANY BREACH BY THE CITY, WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED 1N THIS SECTION, BUT EVERY RIGI~T AND REMEDY OF ANY SUCH PERSON, IN CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHALL BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE. 801 T2967.1~10801035 2~ No default by the City in observing or performing its obligations under this Section shall constitute a breach of or default under this Ordinance far purposes of any other provision of this Ordinance. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the City under federal and state securities laws. Notwithstanding anything to the contrary in this Ordinance, the provisions of this Section may be amended by the City from time to time to adapt to changed circumstances resulting from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, but only if (1) the provisions of this Section, as so amended, would have permitted an underwriter to purchase or sell Bands in the primary offering of the Bonds in compliance with the Rule, taking into account any amendments or interpretations of the Rule to the date of such amendment, as well as such changed circumstances, and (2) either (a) the Holders of a majority in aggregate principal amount (or any greater amount required by any other provision of this Ordinance that authorizes such an amendment) of the Outstanding Bands consent to such amendment or (b) a Person that is unaffiliated with the City (such as nationally recognized bond counsel) determines that such amendment will not materially impair the interests of the Holders and bene£cial owners of the Bonds. The provisions of this Section may also be amended from time to time or repealed by the City if the SEC amends or repeals the applicable provisions of the Rule or a court of final jurisdiction determines that such provisions are invalid, but only if and to the extent that reservation of the City's right to do so would not prevent underwriters of the initial public offering of the Bands from lawfully purchasing ar selling Bonds in such offering. If the City so amends the provisions of this Section, it shall include with any amended financial information or operating data filed with each NRMSIR and SID pursuant to subsection (b) of this Section an explanation, in narrative farm, of the reasons for the amendment and of the impact of any change in the type of financial information or operating data so proirided. SECTION 29: 5everability. If any provision of this Urdinanee or the application thereof' to any circumstance shall be held to be invalid, the remainder of this Ordinance and the application thereof to other circumstances shall nevertheless be valid, and the City Council hereby declares that this Ordinance would have been enacted without such invalid provision. SECTIUN 30: Public Meeting. It is officially found, determined, and declared that the meeting at which this t~rdinance is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Ordinance, was given, all as required by V.T.C.A., Government Code, Chapter 551, as amended. SECTION 31: Effective Date. This Ordinance shall take effect and be in full force from and after its adoption on the date shown below in accordance with V.T.C.A., Government Code, Section 120 t .028, as amended. (remainder of page left blank intentinnallyJ go»z~7. i/~aao~o3s 24 PASSED AND ADOPTED, this Aprii 28, 2008. CITY OF NORTH RICHLAIVD HILLS, TEXAS Mayor ATTEST: City Secretary APPROVED AS TO LEGALITY: City Attorney (City Seal) APPROVED AS TO CONTENT: Director of Finance soiTrwa.i/~oBaia~s S-1 EXHIBIT A PAYING AGENT/REG1S'1'RAR AGREEMENT 8012961 /19801035 A-l Exhibit B to Ordinance DESCRIPTION OF ANNUAL FINANCIAL INFORMATION The following information is referred to in Section 2g of this Ordinance. Annual Financial Statements and Operating Data The financial information and operating data with respect to the City to be provided annually in accordance with such Section arc as specified (and included in the Appendix or under the headings of the Off vial Statement referred to) below: 1. The financial statements of the City appended to the Ofl~icial Statement as Appendix B, but for the most recently concluded fiscal year. 2. The information in the Official Statement under Tables 1 thmugh 6 and 8 through 1$. Accounting Principles The accounting principles referred to in such Section are the accounting principles described in the notes to the financial statements referred to in paragraph 1 above So172967, ~/~ oso~ o3s B-1 PAYING AGENT/R.EGISTRARRGREEMENT THIS AGREEM ~~ entered into as of April 28, 2008 (this "Agreement"), by and between the City of North Richland Hills, Texas (the "Issuer"}, and The Bank of New York Trust Company, N,A., a banking corporation organized and existing under the taws of the United States of America (the "Bank"), RECITALS WHEREAS, the Issuer has duly authorized and provided for the execution and delivery of its "City of North Richland Ilills, Texas, General Obligation Bonds, Series 2008" (the "Securities"), April 15, 2008, such Securities scheduled to be delivered to the initial purchasers thereof on or about June 4, 2008; and WHEREAS, the Issuer has selected the Bank to serve as Paying Agent/Registrar in connection with the payment of the principal of, premium, if any, and interest on said Securities and with respect to the registration, transfer and exchange thereof by the registered owners thereof; and WHEREAS, the Bank has agreed to serve in such capacities for and on behalf of the Issuer and has full power and authority to perform and serve as Paying Agent/Registrar for the Securities; NOW, THEREFORE, it is mutually agreed as follows: ARTICLE ONE APPUIN'I'MENT OF BANK AS PAYING AGENT AND REGISTRAR Section 1.01 Appointment. The Issuer hereby appoints the Bank to serve as Paying Agent with respect to the Securities, and, as Paying Agent for the Securities, the Bank shall be responsible for paying on behalf of the Issuer the principal, premium (if any), and interest on the Securities as the same become due and payable to the registered owners thereof; all in accordance with this Agreement and the "Bond Resolution" (hereinafter defined). The Issuer hereby appoints the Bank as Registrar with respect to the Securities and, as Registrar for the Securities, the Sank shall keep and maintain for and on behalf of the Issuer books and records as to the ownership of said Securities and with respect to the transfer and exchange thereof as provided herein and in the "Bond Resolution". The Bank hereby accepts its appointment, and agrees to serve as the Paying Agent and Registrar for the Securities. Section 1.02 Compensation. As compensation for the Bank's services as Paying Agent/Registrar, the Issuer hereby agrees to pay the Bank the fees and amounts set forth in Annex A attached hereto. In addition, the Issuer agrees to reimburse the Bank upon its request for all reasonable expenses, disbursements and advances incurred or made by the Bank in accordance with any of $OiR27R4.l;t0$91035 the provisions hereof (including the reasonable compensation and the expenses and disbursements of its agents and counsel). ARTICLE TWU DEFINITIONS Section 2.O1 Definitions. For all purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires: "Acceleration Date" on any Security means the date on at~d after which the principal or any or all installments of interest, or both, are due and payable on any Security which has become accelerated pursuant to the terms of the Security. "Bank Office" means the designated office of the Bank in Dallas, Texas at the address shown in Section 3.O1 hereof. The Bank will notify the Issuer in writing of any change in location of the Bank Office. "Bond Resolution" means the resolution, order, or ordinance of the governing body of the Issuer pursuant to which the Securities are issued, certified by the Secretary or any other officer of the Issuer and delivered to the Bank. "Fiscal Year" means the fiscal year of the Issuer, ending September 30th. "Holder" and "Security Holder" each means the Person in whose name a Security is registered in the Security Register. "Issuer Request" and "Issuer Order" means a written request ar order signed in the name of the Issuer by the Mayor, City Secretary, City Manager, Assistant City Manager, or Director of Finance, any one or more of said officials, and delivered to the Bank. "Legal Holiday" means a day on which the Bank is required or authorized to be closed. "Person" means any individual, corporation, partnership, joint venture, association, joint stock company, trust, unincorporated organization or government or any agency or political subdivision of a government. "Predecessor Securities" of any particular Security means every previous Security evidencing all or a portion of the same obligation as that evidenced by such particular Security (and, for the purposes of this definition, any mutilated, lost, destroyed, or stolen Security for which a replacement Security has been registered and delivered in lieu thereof pursuant to Section 4.06 hereof and the Bond Resolution). "Redemption Date", when used with respect to any Security to be redeemed, means the date fixed far such redemption pursuant to the terms of the Bond Resolution. 80182784.111081110 3 5 "Responsible Officc;r", when used with respect to the Bank, means the Chairman or Vice-Chairman of the Board of Directors, the Chairman or Vice-Chairman of the Executive Committee of the Board of Directors, the President, any Vice President, the Secretary, any Assistant Secretary, the Treasurer, any Assistant Treasurer, the Cashier, any Assistant Cashier, any Trust Officer or Assistant Trust Officer, or any other officer of the Bank customarily performing functions similar to those performed by any of the above designated officers and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of his knowledge of and familiarity with the particular subject. "Security Register" means a register maintained by the Bank on behalf of the Issuer providing for the registration and transfers of Securities. "Stated Maturity" means the date specified in the Bond Resolution the principal of a Security is scheduled to be due and payable. Section 2.02 Other Definitions. The terms "Bank," "Issuer," and "Securities (Security)" have the meanings assigned to them in the recital paragraphs of this Agreement. 'fhe term "Paying Agent/Registrar" refers to the Bank in the pcrformance of the duties and functions of this Agreement. ARTICLE THREE PAYING AGENT" Section 3.01 Duties of Paying A e~nt,. As Paying Agent, the Bank shall, provided adequate collected funds have been provided to it for such purpose by or on behalf of the Issuer, pay on behalf of the Issuer the principal of each Security at its Stated Maturity, Redemption Date, or Acceleration Date, to the Holder upon surrender of the Security to the Bank at the following address: P. O. Box 2320, Dallas, Texas 75221-2320 or 2001 Bryan Street, 9`h Floor, Dallas, Texas 75201, Attention: Operations. As Paying Agent, the Bank shall, provided adequate collected funds have been provided to it for such purpose by or on behalf of the Issuer, pay on behalf of the Issuer the interest on each Security when due, by computing the amount of interest to be paid each Holder and making payment thereof to the Holders of the Securities (or their Predecessor Securities) on the Record Date (as defined in the Bond Resolution). All payments of principal ancUor interest on the Securities to the registered owners shall be accomplished (1) by the issuance of checks, payable to the registered owners, drawn on the paying agent account provided in Section 5.05 hereof, sent by United States mail, first class, postage prepaid, to the address appearing on the Security Register or (2) by such other method, acceptable to the Bank, requested in writing by the Holder at the Holder's risk and expense. Section 3.02 Payment Dates. The Issuer hereby instructs the Bank to pay the principal of and interest on the Securities at the dates specified in the Bond Resolution. 80182784. ~ J1080 i 035 ARTICLE FOUR REGISTRAR 5ectian 4.01 Security Regtsster -Transfers and Exchanges. The Bank agrees to keep and maintain for and on behalf of the lssuer at the Bank Office books and records (herein sometimes referred to as the "Security Register") for recording the names and addresses of the Holders of the Securities, the transfer, exchange and replacement of the Securities and the payment of the principal of and interest on the Securities to the Holders and containing such other information as may be reasonably required by the Issuer and subject to such reasonable regulations as the Issuer and the Bank may prescribe. All transfers, exchanges and replacement of Securities shall be noted in the Security Register. Every Security surrendered far transfer or exchange shall be duly endorsed or be accompanied by a written instrument of transfer, the signature on which has been guaranteed by an officer of a federal or state bank or a member of the National Association of Securities Dealers, in form satisfactory to the Bank, duly executed by the Holder thereof or his agent duly authorized in writing. The Bank may request any supporting documentation it feels necessary to effect a re-registration, transfer or exchange of the Securities. To the extent possible and under reasonable circumstances, the Bank agrees that, in relation to an exchange or transfer of Securities, the exchange or transfer by the Holders thereof will be completed and new Securities delivered to the Holder or the assignee of the Holder in not more than three (3) business days after the receipt of the Securities to be cancelled in an exchange or transfer and the written instrument of transfer or request fur exchange duly executed by the Holder, or his duly authorized agent, in form and manner satisfactory to the Paying AgentlRegistrar. Section 4.02 Certificates. The Issuer shall provide an adequate inventory of printed Securities to facilitate transfers or exchanges thereof. The Bank covenants that the inventory of printed Securities will be kept in safekeeping pending their use and reasonable care will be exercised by the Bank in maintaining such Securities in safekeeping, which shall be not less than the care maintained by the Bank for debt securities of other governments or corporations For which it serves as registrar, or that is maintained far its own securities. Section 4.03 Form of Security Register. The Bank, as Registrar, will maintain the Security Register relating to the registration, payment, transfer and exchange of the Securities in accordance with the Bank's general practices and procedures in effect from time to time. The Bank shall not be obligated to maintain such Security Register in any form other than those which the Bank has currently available and currently utilizes at the time. The Security Register may be maintained in written form or in any other form capable of being converted into written form within a reasonable time. Section 4.04 List of Security holders. The Bank will provide the Issuer at any time requested by the Issuer, upon payment of the required fee, a copy of the information contained in the Security Register. The Issuer may also inspect the information contained in the Security 80182784.1110801635 4 Register at any time the Bank is customarily open for business, provided that reasonable time is allowed the Bank to provide an up-to-date listing or to convert the information into written form. The Bank will not release or disclose the contents of the Security Register to any person other than to, ar at the written request of, an authorized officer or employee of the Issuer, except upon receipt of a court order or as otherwise required by law. Upon receipt of a court order and prior to the release or disclosure of the contents of the Security Register, the Bank will notify the Issuer so that the Issuer may contest the court order or such release or disclosure of the contents of the Security Register. Section 4,05 Return of Cancelled Certificates. The Bank will, at such reasonable intervals as it determines, surrender to the Issuer, Securities in lieu of which or in exchange for which other Securities have been issued, or which have been paid. Section 4.06 Mutilated. Destroyed, Lost or Staten Securities. The Issuer hereby instructs the Bank, subject to the provisions of the Bond Resolution, to deliver and issue Securities in exchange for or in lieu of mutilated, destruyed, lost, or stolen Securities as long as the same does nat result in an overissuance. [n case any Security shall be mutilated, ar destroyed, lost or stolen, the Bank tray execute and deliver a replacement Security of like form and tenor, and in the same denomination and bearing a number not contemporaneously outstanding, in exchange and substitution for such mutilated Security, or in lieu of and in substitution for such destroyed lost or stolen Security, only upon the approval of the Issuer and after (i) the filing by the Holder thereof with the Bank of evidence satisfactory to the Bank of the destruction, lass or theft of such Security, and of the authenticity of the ownership thereof and (ii) the furnishing to the Bank of indemnification in an amaunt satisfactory to hold the Issuer and the Bank harmless. All expenses and charges associated with such indemnity and with the preparation, execution and delivery of a replacement Security shall be borne by the Holder of the Security mutilated, or destroyed, lost or stolen. Section 4.07 Transaction Information to Issuer. The Bank will, within a reasonable time after receipt of written request from the Issuer, funush the Issuer information as to the Securities it has paid pursuant to Section 3.01, Securities it has delivered upon the transfer or exchange of any Securities pursuant to Section 4.01, and Securities it has delivered in exchange for or in lieu of mutilated, destrayed, lost, or stolen Securities pursuant to Section 4.06, ARTICLE FIVE THE BANK Section 5.01 Duties of Bank. The Bank undertakes to perform the duties set forth herein and agrees to use reasonable care in the performance thereof. Section 5.02 Reliance on Documents, Etc. (a) The Bank may conclusively rely, as to the truth of the statements and correctness of the opinions expressed therein, on certificates or opinions furnished to the Bank. 80182784. t /10801035 {a) The Bank shall not be liable for any error of judgment made in good faith by a Responsible Officer, unles,5 it shall be proved that the Bank was negligent in ascertaining the pertinent facts. (b) No provisions of this Agreement shall require the Bank to expend or risk its own funds or otherwise incur any financial liability for performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity satisfactory to it against such risks or liability is not assured to it. (e) The Bank may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, security ar other paper or document believed by it to be genuine and to have been signed or presented by the proper parry or parties. Without limiting the generality of the foregoing statement, the Bank need not examine the ownership of any Securities, but is protected in acting upon receipt of Securities containing an endorsement or instruction of transfer or power of transfer which appears on its face to be signed by the Holder or an agent of the Holder. The Bank shall not be bound to make any investigation into the facts or matters stated in a resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, security or other paper or document supplied by the Issuer. (d) The Bank ma}~ consult with counsel, and the written advice of such counsel or any opinion of counsel shall be full and complete authorization and protection with respect to any action taken, suffered, or omitted by it hereunder in good faith and in reliance thereon. (e) The Bank may exercise any of the powers hereunder and perform any duties hereunder either directly or by or through agents or attorneys of the Bank. Section 5.03 Recitals of Issuer. The recitals contained herein with respect to the Issuer and in the Securities shall be taken as the statements of the Issuer, and the Bank assumes no responsibility for their correctness. The Bank shall in no event be liable to the Issuer, any Holder or Holders of any Security, ar any other Person for any amount due on any Security from its owr funds. Section 5.04 May Hold Securities. The Bank, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise deal with the Issuer with the same rights it would have if it were not the Paying Agent/Registrar, or any other agent. Section S.US Moneys Held by Bank - Pay~g Agent Account/Collateralization. Money deposited by the Issuer with the $ank of the principal (or Redemption Price, if applicable} of or interest on any Securities shall be segregated from other funds of the Bank and the Issuer and shall be held in trust for the benefit of the Holders of such Securities. .All money deposited with the Bank hereunder shall be secured in the manner and to the fullest extent required by law for the security of funds of the Issuer. 80182784.1/10801035 6 Amounts held by the Bank which represent principal of and interest on the Securities remaining unclaimed by the owner after the expiration of three years from the date such amounts have become due and payable shall be reported and disposed of by the Rank in accordance with the provisions of Texas law including, to the extent applicable, Title 6 of the Texas Property Code, as amended. The Bank shall have no liability by virtue of actions taken in compliance with this provision. The Bank is not obligated to pay interest on any money received by it hereunder. This Agreement relates solely to money deposited for the purposes described herein, and the parties agree that the Bank may serve as depository for other funds of the Issuer, act a.5 trustee under indentures authorizing other bond transactions of the Issuer, or act in any other capacity not in conflict with its duties hereunder. Section SA6 Indemnification. To the extent permitted by law, the Issuer agrees to indemnify the Bank for, and hold it harmless against, any loss, liability, or expense incurred without negligence or bad faith on its part, azising out of or in connection with its acceptance or administration of its duties hereunder, including the cost and expense against any claim or liability in connection with the exercise or performance of any of its powers or duties under this Agreement. Section 5.07 Internleader. The Issuer and the Bank agree that the Bank may seek adjudication of any adverse claim, demand, or controversy over its person as well as funds on deposit, in either a Federal or State District Court located in the State and County where the administrative offices of the Issuer is located, and agree that service of process by certif ed or registered mail, return receipt requested, to the address referred to in Section 6.03 of this Agreement shall constitute adequate service. The Issuer and the Bank further agree that the Bank has the right to file a Rill of Interpleader in any court of competent jurisdiction in the State of Texas to determine the rights of any Person claiming any interest herein. Section 5.08 DT Servi,~. It is hereby represented and warranted that, in the event the Securities are otherwise qualified and accepted for "Depository Trust Company" services or equivalent depository trust services by other organizations, the Bank has the capability and, to the extent within its control, will comply with the "Operational Arrangements", which establishes requirements for securities to be eligible for such type depository trust services, including, but not limited to, requirements far the timeliness of payments and funds availability, transfer turnaround time, and notification of redemptions and calls. ARTICLE SIX MISCELLANEOUS i~ItOVISIUNS Section 6.01 ~~,,~endment. This Agreement may be amended only by an agreement in writing signed by both of the parties hereto. Section 6.02 Assignment. This Agreement may not be assigned by either parry without the prior written consent of the other. 80182784. t /10801035 Section b.03 Notices. Any request, demand, authorization, direction, notice, consent, waiver, or other document provided or permitted hereby to be given or furnished to the Issuer or the Bank shall be mailed ar delivered to the Issuer or the Bank, respectively, at the addresses shown on page 9. Section 6.04 1:ffect of Headines. The Article and Section headings herein are for convenience of reference only and shall not affect the construction hereof. Section 6.05 Successors and Assigns. All covenants and agreements herein by the Issuer shall bind its successors and assigns, whether so expressed or not. Section b.Ub Severability. In case any provision herein shall be invalid, illegal. or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby, Section 6.07 Benefits of Agreement. Nothing herein, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder, any benefit or any legal or equitable right, remedy or claim hereunder. Section b.08 Entire Agreement. This Agreement and the Bond Resolution constitute the entire agreement between the parties hereto relative to the Bank acting as Paying AgentlRegistrar and if any conflict exists between this Agreement and the Bond Resolution, the Bond Resolution shall govern. Section 6.09 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which shall constitute one and the same Agreement. Section 6.10 Termination. This Agreement will terminate (i) on the date of final payment of the principal of and interest on the Securities to the Holders thereof or (ii) may be earlier terminated by either party upon sixty (60) days written notice; provided, however, an early termination of this Agreement by either party shall not be effective until (a) a successor Paying AgentlR.egistrar has been appointed by the Issuer and such appointment accepted and (b) notice given to the Holders of the Securities of the appointment of a successor Paying Agent/Registrar. Furthermore, the Bank and the Issuer mutually agree that the effective date of an early termination of this Agreement shall not occur at any time which would disrupt, delay or otherwise adversely affect the payment of the Securities. Upon an early termination of this Agreement, the Bank agrees to promptly transfer and deliver the Security Register {or a copy thereof), together with other pertinent books and records relating to the Securities, to the successor Paying Agent/Registrar designated and appointed by the Issuer. T'he provisions of Section 1.02 and of Article Five shall survive and remain in full force and effect following the termination of this Agreement. Section b.l l Uoveming Law. This Agreement shall be construed in accordance with and governed by the laws of the State of Texas. 80182784.1110801035 8 IN WITNESS WHEKEOF, the parties hereto have executed this Agreement as of the day and year first above written. Attest: Title: Attest: City Secretary THE BANK OF NEW YORK TRUST COMPANY, N.A. BY: Title: Address: 2001 Bryan Street, 8~' Flaar Dallas, Texas 75201 CITY OF NOKTH RICHLAND HILLS, TEXAS BY: Mayor Address: P. O. Box 820609 Narth Richland Hills, Texas76182-Ob09 80182784.1/10801035 CITY OF NORTH RICHLAND HILLS Department: Finance Council Meeting Date: 4-28-2008 Presented by: Larry Koonce Agenda No. F.2 Subject: GN 2008-029 Consider All Matters Incident and Related to the Issuance and Sale of $4,750,000 "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 2008", Including the Adoption of Ordinance No. 2990 -Authorizing the Issuance of Such Certificates of Obligation. On March 17th, City Council authorized the City Secretary to publish by March 28, 2008 a notice in a newspaper of general circulation of the intent of the City to issue Certificates of Obligation. Notices were published in accordance with State law. The sale of $4,750,000 in Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation for the design of a new aquatic park attraction, fire and public works equipment replacement, various utility projects, golf course drainage improvements, and design of the TIF #2 recreation center (see attached summary) will be completed on April 28, 2008. The City received Certificates of Obligation ratings from both Moody's Investors Service and Standard and Poor's. Moody's has reaffirmed the Aa3 rating, and Standard and Poor's has upgraded the AA- rating to AA. The results of the Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation sale will be submitted to City Council at the regular meeting on April 28th. The City Council will be requested to approve the ordinance prepared by our bond counsel, Fulbright and Jaworski. The ordinance is enclosed for your consideration. This ordinance also authorizes all other necessary actions such as paying agent/registrarsgreements. The bids are due to be received and opened at 11 a.m. on Monday April 28th. The bids will be tabulated, verified, and ready to present for approval at the meeting that evening. Exhibits A and B have been intentionally left blank and will be provided to Council on Monday. All blanks in the ordinance will be filled out prior to the City Council meeting Monday night. Recommendation: To adopt Ordinance No. 2990 approving the bid and issuance of "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 2008"; and approving and authorizing the execution of a Paying Agent/Registrar Agreement and a Purchase Contract in relation to such Obligations and the approval and distribution of an Official Statement. Summary 2008 Certificates of Obligation Golf Course Project Iron Horse Golf Course Drainage Improvements Aquatic Park Project NRH2O Strategic Plan -Third Phase Attraction Professional Services Facilities Improvement Project NRH Recreation Center (TIF #2) Engineering and Design Utility Capital Projects Douglas Lane Utility Improvements (Hightower to Starnes) Davis Blvd/Mid-Cities Intersection (TEA 21) Utility Relocation Telemetric Water Meter Ten-Year Replacement Program (2008) Water Line Holiday Lane and College Circle Water Line Holiday Lane and Iron Horse Blvd. Water Storage Tank Site Upgrades -Johnson, Bursey and Shady Grove Amundson Elevated Tank Rehabilitation Lift Station Expansion Blvd. 26 at Precinct Line Subtotal C.O. Utility Capital Projects $ 500,000 $ 150,000 $ 2,000,000 $ 245,000 500, 000 300,000 80,000 130,000 300,000 90,000 170,000 $ 1,815,000 Capital Equipment Replacement Ambulance Replacement $ 220,000 Utility Department Camera Van Replacement 65,000 Subtotal C.O. Equipment Replacement $ 285,000 Total 2008 C.O. Sale $ 4,750,000 ORDINANCE N0.2990 AN ORDINANCE authorizing the issuance of "CITY OF NORTH RICHLAND HILLS, TEXAS, TAX AND WATERWORKS AND SEWER SYSTEM (LIMITED PLEDGE.) REVEN[1E CERTIFICATES OF OBLIGATION, SERIES 2008"; specifying the terms and features of said certificates; providing for the payment of said certificates by the levy of an ad valorem tax upon all taxable property within the City and a limited pledge of the net revenues from the operation of the City's Waterworks and Sewer System; and resolving other matters incident and relating to the issuance, payment, security, sale and delivery of said certificates, including the approval and execution of a Paying AgentlRegistrar Agreement and the approval and distribution of an Official Statement; and providing an effective date. WHEREAS, notice of the City Council's intention to issue certificates of obligation in the maximum principal amount of 54,750,000 for the purpose of paying contractual obligations to be incurred for (i) constructing, improving and equipping NRH2O water park, (ii) purchasing equipment for fire service and public works, including vehicles related thereto, (iii) constructing and improving the City of North Richland hilts water and sewer system, (iv) constructing and improving Iron Horse Golf Course drainage, (v} designing the new North Richland Hills recreation center, and (vi) professional services rendered in relation to such projects and the financing thereof; has been duly published in the Fort Worth Star Telegram, a newspaper hereby found and deterniined to be of general circulation in the City of North Richland Hills, Texas, on March 21, 2008 and March 28, 2008, the date of the first publication of such notice being not less than thirty-one (31) days prior to the tentative date stated therein for the passage of the ordinance authorizing the issuance of such certificates; and WHEREAS, no petition protesting the issuance of the certificates of obligation and bearing valid petition signatures of at least 5% of the qualified electors of the City has been presented to or filed with the Mayor, City Secretary or any other official of the City on or prior to the date of the passage of this Ordinance; and WHEREAS, the City Council hereby finds and determines that the certificates of obligation described in the aforesaid notice should be issued and sold at this time in the amount and manner as hereinafter provided: now, therefore, B1/ IT ORDAINED BY TIIE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: SECTION 1: Authorization, Des nation, Principal Amount. Purpose. Certificates of obligation of the City shall be and are hereby authorized to be issued in the aggregate principal amount of $4,750,000, to be designated and bear the title "CITY OF NORTH RICHLAND HILLS, TEXAS, TAX AND WATERWORKS AND SEWER SYSTEM (LIMITED PLEDGE) REVENUE CERTIFICATES OF OBLIGATION, SERIES 2008" (hereinafter referred to as the "Certificates"), for the purpose of paying contractual obligations to be incurred for (i) 80172987.110801435 constructing, improving and equipping NRH2O water park, (ii) purchasing equipment for fire service and public works, including vehicles related thereto, (iii) constructing and improving the City of North Richland Hills water and sewer system, (iv) constructing and improving Iron Horse Golf Course drainage, (v) designing the new North Richland Hills recreation center, and (vi) professional services rendered in relation to such projects and the financing thereof, and (iii) professional services rendered in relation to such projects and the financing thereof; pursuant to authority conferred by and in conformity with the Constitution and laws of the State of Texas, including V.T.C.A., Local Government Code, Subchapter C of Chapter 271, as amended. SECTION 2: Fully Registered Obligations - Authorized Denominations - Stated Maturities -Date. The Certificates are issuable in fully registered form only; shall be dated April 15, 2008 (the "Certificate Date") and shall be in denominations of $5,000 or any integral multiple thereof (within a Stated Maturity) and the Certificates shall become due and payable on February 15 in each of the years and in principal amounts (the "Stated Maturities") and beaz interest at the per annum rate(s) in accordance with the following schedule: Year of Principal Interest Stated Maturity Amount Rates 2009 $ 290,000 2010 285,000 2011 285,000 2012 275,000 2013 270,000 2014 270,000 2015 270,000 2016 270,000 2017 270,000 2018 270,000 2019 210,000 2020 210,000 2021 210,000 2022 210,000 2023 210,000 2024 210,000 2025 210,000 2026 210,000 2027 210,000 2028 l 05,000 The Certificates shall bear interest on the unpaid principal amounts from the Certificate Date at the rates per annum shown above in this Section (calculated on the basis of a 360-day year of twelve 30-day months), and such interest shall be payable on February I S and August 15 in each yeaz, commencing February I5, 2009, until maturity or prior redemption. SECTlUN 3: '1'ernls of Payment -Paying Agent/Re i~ar. The principal of, premium, if any, and the interest on the Certificates, due and payable by reason of maturity, redemption or Ao~n9s~.il~osoio3s otherwise, shall be payable only to the registered owners or holders of the Certificates (hereinafter called the "Holders") appearing on the registration and transfer books maintained by the Paying Agent/Registrar and the payment thereof shall be in any coin or currency of the United States of America which, at the time of payment, is legal tender for the payment of public and private debts, and shall be without exchange or collection charges to the Holders. The selection and appointment of The Bank of New York Trust Company, N.A., Dallas, Texas to serve as Paying AgentlRegistraz for the Certificates is hereby approved and confirmed. Bvoks and records relating to the registration, payment, transfer and exchange of the Certificates (the "Security Register's shall at all times be kept and maintained on behalf of the City by the Paying Agent/Registrar, as provided herein and in accordance with the terms and. provisions of a "Paying AgentlRegistrar Agreement", substantially in the farm attached hereto as Exhibit A, and such reasonable rules and regulations as the Paying Agent/Registrar and the City may prescribe. The Mayor and City Secretary are authorized to execute and deliver such Agreement in connection with the delivery of the Certificates. The City covenants tv maintain and provide a Paying Agent/Registrar at all times until the Certificates are paid and discharged, and any successor Paying AgentlRegistrar shall be a bank, including a commercial bank, at which principal of the Bonds is payable, or trust company organized under the laws of the State of Texas or other entity duly qualified and legally authorized to serve as and perform the duties and services of Paying AgentlRegistrar for the Certificates. Upon any change in the Paying Agent/Registrar for the Certificates, the City agrees to promptly cause a written notice thereof to be sent to each Holder by United States Mail, first class postage prepaid, which notice shall also give the address of the new Paying AgentlRegistrar. Principal of and premium, if any, on the Certi#icates shall be payable at the Stated Maturities or upon prior redemption thereof only upon presentation and surrender of the Certificates to the Paying Agent/Registrar at its designated offices in Dallas, Texas, or such office as may be designated for such purpose by the Paying Agent/Registrar or any successor to its functions (the "Designated PaymentlTransfer Office"). Interest on the Certificates shall be paid to the Holders whose names appear in the Security Register at the close of business on the Record Date (the last business day of the month next preceding each interest payment date) and shall be paid by the Paying AgentlRegistrar (i) by cheek sent United States Mail, first class postage prepaid, to the address of the Holder recorded in the Security Register or (ii) by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the Holder. If the date for the payment of the principal of or interest on the Certificates shall be a Saturday, Sunday, a legal holiday, or a day when banking institutions in the city where the Designated Payment/Transfer Office of the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day when banking institutions are authorized to close; and payment on such date shalt have the same force and elTect as if made on the original date payment was due. In the event of a nonpayment of interest on a scheduled payment date, and for thirty (3U) days thereafter, a new record date for such interest payment (a "Special Record Date"} will be established by the Paying Agent/ Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall 80172987.110801035 be sent at least five (5) business days prior to the Special Record Uate by United States Mail, first class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the last business next preceding the date of mailing of such notice. SECTION 4: Redemption. (a) Outional Redemption. The Certificates having Stated Maturities on and after February 15, 2019 shall be subject to redemption prior to maturity, at the option of the City, in whole or in part is principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity by lot by the Paying Agent/Registrar), on February 15, 2018, or on any date thereafter at the redemption price of paz plus accrued interest to the date of redemption. (b) Exercise of Redemption Qption. At least forty-five (45) days prior to a redemption date for the Certificates (unless a shorter notification period shall be satisfactory to the Paying AgenURegistraz), the City shall notify the Paying Agent/Registrar of the decision to redeem Certificates, the principal amount of each Stated Maturity to be redeemed, and the date of redemption therefor. The decision of the City to exercise the right to redeem Certificates shall be entered in the minutes of the governing body of the City. (c) Selection of Certificates for Redemption. If less than all Outstanding Certificates of the same Stated Maturity are to be redeemed on a redemption date, the Paying Agent! Registrar shall treat such Certificates as representing the number of Certificates Outstanding which is obtained by dividing the principal amount of such Certificates by $5,000 and shall select the Certificates to be redeemed within such Stated Maturity by lot. (d) Notice of Redemption. Not less than thirty (30) days prior to a redemption date for the Certificates, a notice of redemption shall be sent by United States Mail, first class postage prepaid, in the name of the City and at the City's expense, to each Holder of a Certificate to be redeemed in whole or in part at the address of the Holder appearing on the Security Register at the close of business on the business day next preceding the date of mailing such notice, and any notice of redemption so mailed shall be conclusively presumed to have been duly given irrespective of whether received by the Holder. All notices of redemption shall (i) specify the date of redemption for the Certificates, (ii) identify the Certificates to be redeemed and, in the case of a portion of the principal amount to be redeemed, the principal amount thereof to be redeemed, (iii) state the redemption price, (iv) state that the Certificates, or the portion of the principal amount thereof to be redeemed, shall become due and payable on the redemption date specified and the interest thereon, or on the portion of the principal amount thereof to be redeemed, shall cease to accrue from and after the redemption date, provided moneys sufficient for the payment of such Certificate (or the principal amount thereof to be redeemed) at the then applicable redemption price are held for the purpose of such payment by the Paying Agent/Registrar and (v) specify that payment of the redemption price for the Certificates, or the principal amount thereof to be redeemed, shall be made at the Designated Payment/Transfer Office of the Paying AgentlRegistrar only upon presentation and surrender of the Certificates. If a Certificate is subject by its terms to prior redemption and has been called fvr redemption and notice of redemption has been duly given as hereinabove 80172)87.1~IU8U1U35 provided, such Certificate (or the principal amount thereof to be redeemed) shall become due and payable and interest thereon shall cease to accrue from and after the redemption date therefor. SECTION 5: Registration - Transfer - Exchange of Certificates - Predecessor Certificates. The Paying Agent/Registraz shall obtain, record and maintain in the Security Register the name and address of each and every owner of the Certificates issued under and pursuant to the provisions of this Ordinance, or if appropriate, the nominee thereof. Any Certificate may be transferred or exchanged for Certificates of other authorized denominations by the Holder, in person or by his duly authorized agent, upon surrender of such Certificate to the Paying Agent/Registraz for cancellation, accompanied by a written instrument of transfer or request for exchange duly executed by the Holder or by his duly authorized agent, in form satisfactory to the Paying Agent/Registrar. Upon surrender of any Certificate (other than the Initial Certificates} authorized in Section 8 hereof) for transfer at the Designated Payment/Transfc'r Office of the Paying Agent/Registraz, the Paying Agent/Registrar shall register and deliver, in the name of the designated transferee or transferees, one or more new Certificates of authorized denominatians and having the same Stated Maturity and of a like aggregate principal amount as the Certificate or Certificates surrendered for transfer. At the option of the Holder, Certificates (other than the Initial Certificates} authorized in Section 8 hereof) may be exchanged for other Certificates of authorized denominations and having the same Stated Maturity, bearing the same rate of interest and of like aggregate principal amount as the Certificates surrendered for exchange, upon surrender of the Certificates to be exchanged at the Designated Payment/Transfer Office of the Paying Agent~Registraz. Whenever any Certificates are surrendered. for exchange, the Paying Agent/Registrar shall register and deliver new Certificates to the Holder requesting the exchange. All Certificates issued in any transfer or exchange of Certificates shall be delivered to the Holders at the Designated PaymentlTransfer Office of the Paying AgentlRegistrar or sent by United States Mail, first class postage prepaid, to the Holders, and, upon the registration and delivery thereof, the same shall be the valid obligations of the City, evidencing the same obligation to pay, and entitled to the same benefits under this Ordinance, as the Certificates sturendered in such transfer or exchange. All transfers or exchanges of Certificates pursuant to this Section shall be made without expense or service charge to the Holder, except as otherwise herein provided, and except that the Paying Agent/Registrar shall require payment by the Holder requesting such transferor exchange of any tax or other governmental charges required to be paid with respect to such transfer or exchange. Certificates cancelled by reason of an exchange or transfer pursuant to the provisions hereof aze hereby defined to be "Predecessor Certificates," evidencing all or a portion, as the case may be, of the same obligation to pay evidenced by the new Certificate or Certificates registered and delivered in the exchange or transfer therefor. Additionally, the term "Predecessor Certificates" shall include any mutilated, lost, destroyed, or stolen Certificate far which a replacement Certificate has been issued, registered and delivered in lieu thereof pursuant 80172987.11080!035 to the provisions of Section l9 hereof and such new replacement Certificate shall be deemed to evidence the same obligation as the mutilated, lost, destroyed or stolen Certificate. Neither the City nor the Paying AgentJRegistrar shall be required to issue or transfer to an assignee of a Holder any Certificate called for redemption, in whole or in part, within 45 days of the date fixed for the redemption of such Certificate; provided, however, such limitation on transferability shall not be applicable to an exchange by the Holder of the unredeemed balance of a Certificate called for redemption in part. SECTION 6: Book-Entry-Only Transfers and Transactions. Notwithstanding the provisions contained in Sections 3, 4 and 5 hereof relating to the payment, and transfer/exchange of the Certificates, the City hereby approves and authorizes the use of "Book-F,ntry-Only" securities clearance, settlement and transfer system provided by The Depository Trust Company ("DTC', a limited purpose trust company organized under the laws of the State of New York, in accordance with the operational arrangements referenced in the Blanket Issuer Letter of Representations by and between the City and DTC (the "Depository Agreement"). Pursuant to the Depository Agreement and the rules of DTC, the Certificates shall be deposited with DTC who shall hold said Certificates for its participants (the "DTC Participants'. While the Certificates are held by DTC under the Depository Agreement, the Holder of the Certificates on the Security Register for all purposes, including payment and notices, shall be Cede & Co., as nominee of DTC, notwithstanding the ownership of each actual purchaser or owner of each Certificate (the "Beneficial Owners") being recorded in the records of DTC and DTC Participants. In the event DTC determines to discontinue serving as securities depository for the Certificates or otherwise ceases to provide book-entry clearance and settlement of securities transactions in general or the City determines that DTC is incapable of properly discharging its duties as securities depository for the Certificates, the City covenants and agrees with the Holders of the Certificates to cause Certificates to be printed in definitive form and issued and delivered to DTC Participants and Beneficial Owners, as the case may be. Thereafter, the Certificates in definitive form shall be assigned, transferred and exchanged on the Security Register maintained by the Paying Agent/Registrar and payment of such Certificates shall be made in accordance with the provisions of Sections 3, 4 and 5 hereof. SECTION 7: Execution -Registration. The Certificates shall be executed on behalf of the City by the Mayor under its seal reproduced or impressed thereon and countersigned by the City Secretary. The signature of said officers on the Certificates may be manual or facsimile. Certificates bearing the manual or facsimile signatures of individuals who are or were the proper officers of the City on the Certificate Date shall be deemed to be duly executed on behalf of the City, notwithstanding that one or more of the individuals executing the same shall cease to be such officer at the time of delivery of the Certificates to the initial pwchaser(s) and with respect to Certificates delivered in subsequent exchanges and transfers, all as authorized and provided in V.T.C.A., Government Code, Chapter 1201., as amended. No Certificate shall be entitled to any right or benefit under this Ordinance, or be valid or obligatory for any purpose, unless there appears on such Certificate either a certificate of 801 X2987. t~ 10801 t)35 ~ registration substantially in the form provided in Section 9(c), manually executed by the Comptroller of Public Accounts of the State of Texas, ar his duly authorized agent, or a certificate of registration substantially in the form provided in Section 9(d), manually executed by an authorized officer, employee or representative of the Paying Agent/Registrar, and either such certificate duly signed upon any Certificate shall be conclusive evidence. and the only evidence, that such Certificate has been duly certified, registered and delivered. SECTION 8: Initial Certificate(s). The Certificates herein authorized shall be initially issued either (i) as a single fully registered certificate in the total principal amount stated in Section 1 hereof with principal installments to become due and payable as provided in Section 2 hereof and numbered T-I, or (ii) as multiple fully registered certificates, being one certificate for each year of maturity in the applicable principal amount and denomination and to be numbered consecutively from T-1 and upward (hereinafter called the "Initial Certificate(s)") and, in either case, the Initial Certificate(s) shall be registered in the name of the initial purchaser(s) or the designee thereof. The Initial Certificate(s) shall be the Certificates submitted to the Office of the Attorney General of the State of Texas for approval, certified and registered by the Office of the Comptroller of Public Accounts of the State of Texas and delivered to the initial purchasers}. Any time after the delivery of the Initial Certificate(s), the Paying Agent(Registrar, pursuant to written instructions from the initial purchaser(s), or the designee thereof, shall cancel the Initial Certificate(s) delivered hereunder and exchange therefor definitive Certificates of authorized denominations, Stated Maturities, principal amounts and bearing applicable interest rates far transfer and delivery to the Holders named at the addresses identified therefor; all pursuant to and in accordance with such written instructions from the initial purchaser(s), or the designee thereof, and such other information and documentation as the Paying Agent/Registrar may reasonably require. SECTION 9: Forms. (a) Forms Generally. The Certificates, the Registration Certificate of the Comptroller of Public Accounts of the State of Texas, the Registration Certificate of Paying Agent/Registrar, and the form of Assignment to be printed on each of the Certificates, shall be substantially in the forms set forth in this Section with such appropriate insertions, omissions, substitutions, and other variations as are permitted or required by this Ordinance and may have such letters, numbers, or other marks of identification (including identifying numbers and letters of the Committee on Uniform Securities Identification Procedures of the American Bankers Association) and such legends and endorsements (including insurance legends in the event the Certificates, or any maturities thereof, are purchased with insurance and any reproduction of an opinion of counsel) thereon as may, consistently herewith, be established by the City or determined by the officers executing such Certificates as evidenced by their execution. Any portion of the text of any Certificates may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the certificate. The definitive Certificates and the Initial Certificate(s) shall be printed, lithographed, engraved, typewritten, photocopied or otherwise reproduced in any other similar manner, all as determined by the ot~icers executing such Certificates as evidenced by their execution. so»~~g~. il~oso~o3s (b) Form of Certificates. R)GISTERED REGISTERED NO. $ UNITED STATES OF AMERICA STATE OF TEXAS CITY OF NORTH RICHLAND HILLS, TEXAS, TAX AND WATERWORKS AND SEWER SYSTEM (LLVIITED PLEllGE) REVENUE CERTIFICATE OF OBLIGATION, SERIES 2008 Certificate Date: Interest Rate: Stated Maturity: CUSIP NO: April 15, 2008 % February 15, 20 Registered Owner: Principal Amount: DOLLARS The City of North Richland Hills (hereinafter referred to as the "City"), a body corporate and municipal corporation in the County of Tarrant, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the Registered Owner named above, or the registered assigns thereof, on the Stated Maturity date specified above the Principal Amount hereinabove stated (or so much thereof as shall not have been paid upon prior redemption} and to pay interest on the unpaid principal amount hereof from the interest payment date next preceding the "Registration Date" of this Certificate appearing below (unless this Certificate bears a "Registration Date" as of an interest payment date, in which case it shall bear interest from such date, or unless the "Registration Date" of this Certificate is prior to the initial interest payment date in which case it shall bear interest from the Certificate Date) at the per annum rate of interest specified above computed on the basis of a 360-day year of twelve 30-day months; such interest being payable on February I S and August 15 in each year, commencing February 15, 2009, until maturity or prior redemption. Principal of this Certificate is payable at its Stated Maturity or upon its prior redemption to the registered owner hereof, upon presentation and surrender, at the Designated PaymentlTransfer Office of the Paying Agent/Registrar executing the registration certificate appearing hereon, or its successor; provided, however, while this Certificate is registered to Cede & Co., the payment of principal upon a partial redemption of the principal amount hereof may be accomplished without presentation and surrender of this Certificate. Interest is payable to the registered owner of this Certificate (or one or more Predecessor Certificates, as defined in the Ordinance hereinafter referenced) whose name appears on the "Security Register" maintained by the Paying Agent/Registrar at the close of business on the "Record Date", which is the last business day of the month next preceding each interest payment date, and interest shall be paid by the Paying Agent/R.egistrar by check sent United States Mail, first class postage prepaid, to the address of the registered owner recorded in the Security Register or by such other method, acceptable to the Paying AgentlRegistrar, requested by, and at the risk and expense of, the registered owner. If the date for the payment of xo~n9aa.il~oxoio35 the principal of or interest on the Certificates shall be a Saturday, Sunday, a legal holiday, or a day when banking institutions in the city where the Designated PaymentfTransfer Office of the Paying Agent/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day when banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. All payments of principal of, premium, if any, and interest on this Certificate shall be without exchange or collection charges to the owner hereof and in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. This Certificate is one of the series specif ed in its title issued in the aggregate principal amount of $4,750,000 (herein referred to as the "Certificates") for the purpose of paying contractual obligations to be incurred for (i) constructing, improving and equipping NRH2O water pazk, (ii) purchasing equipment for fire service and public works, including vehicles related thereto, (iii) constructing and improving the City of North Richland Hills water and sewer system, (iv) constructing and improving Iron Horse Golf Course drainage, (v) designing the new North Richland Hills recreation center, and (vi) professional services rendered in relation to such projects and the financing thereof, under and in strict conformity with the Constitution and laws of the State of Texas, particularly V.T.C.A., Local Government Code, Subchapter C of Chapter 271, as amended, and pursuant to an Ordinance adopted by the City Council of the City (herein referred to as the "Ordinance"). The Certificates maturing on and after February 15, 2019 may be redeerrl.ed prior to their Stated Maturities, at the option of the City, in whole or in part in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity by lot by the Paying Agent/Registrar), on February 15, 201 S or on any date thereafter, at the redemption. price of par, together with accrued interest to the date of redemption. At least thirty (30) days prior to a redemption date, the City shall cause a written notice of such redemption to be sent by United States Mail, first class postage prepaid, to the registered owners of each Certificate to be redeemed at the address shown on the Security Register and subject to the terms and provisions relating thereto contained in the Ordinance. If a Certificate (or any portion of its principal sum) shall have been duly called for redemption and notice of such redemption duly given, then upon the redemption date such Certificate (or the portion of it~s principa! sum to be redeemed) shall become due and payable, and, if moneys for the payment of the redemption price and the interest accrued on the principal amount to be redeemed to the date of redemption are held for the purpose of such payment by the Paying Agent/Registrar, interest shall cease to accrue and be payable from and after the redemption date on the principal amount redeemed. In the event a portion of the principal amount of a Certificate is to be redeemed and the registered owner is someone other than Cede & Co., payment of the redemption price of such principal amount shall be made to the registered owner only upon presentation and surrender of such Certificate to the Designated Payment/Transfer Office of the Paying Agent/Registrar, and a new Certificate or Certificates of like maturity and interest rate in any authorized denominations provided by the Ordinance for the then unredeemed balance of the principal sum thereof will be issued to the registered owner, without charge. If a Certificate is selected for redemption, in 80172987.110801035 whole or in part, the Gity and the Paying Agent/Registrar shall not be required to transfer such Certificate to an assignee of the registered owner within forty-five (45) days of the redemption date therefor; provided, however, such limitation on transferability shall not be applicable to an exchange by the registered owner ofthe unredeemed balance of a Certificate redeemed in part. The Certificates are payable from the proceeds of an ad valorem tax levied, within the limitations prescribed by law, upon all taxable property in the City and from a limited pledge of the Net Revenues (as defined in the Ordinance) of the City's combined Waterworks and Sanitary Sewer System (the "System"), such pledge of the Net Revenues for the payment of the Certificates being limited to an amount not in excess of $l,000 and, together with a parity pledge securing the payment of the Previously Issued Certificates, being junior and subordinate to the lien on and pledge of such Net Revenues securing the payment of "Prior Lien Obligations" (as defined in the Ordinance) now outstanding and hereafter issued by the City. In the Ordinance, the City reserves and retains the right to issue Prior Lien Obligations without limitation as to principal amount but subject to any applicable terms, conditions or restrictions under law or otherwise. Reference is hereby made to the Ordinance, a copy of which is on file in the Designated PaymentlTransfer Office of the Paying Agent/Registrar, and to all the provisions of which the owner or holder of this Certificate by the acceptance hereof hereby assents, for definitions of terms; the description of and the nature and extent of the tax levied for the payment of the Certificates; the nature and extent of the pledge of the Net Revenues securing the payment of the Certificates; the terms and conditions relating to the transfer or exchange of this Certificate; the conditions upon which the Ordinance may be amended or supplemented with or without the consent of the Holders; the rights, duties, and obligations of the City and the Paying Agent/Registrar; the terms and provisions upon which the tax levy and the pledge of the Net Revenues and covenants made in the Ordinance may be discharged at or prior to the maturity of this Certificate, and this Certificate deemed to be no longer Outstanding thereunder; and for the other terms and provisions contained therein. Capitalized terms used herein have the meanings assigned in the Ordinance. This Certificate, subject to certain limitations contained in the Ordinance, may be transferred on the Security Register only upon its presentation and surrender at the Designated Payment/Transfer Office of the Paying Agent/Registrar, with the Assignment hereon duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Paying Agent/Registrar duly executed by, the registered owner hereof, or his duly authorized agent. When a transfer on the Security Register occurs, one or more new fully registered Certificates of the same Stated Maturity, of authorized denominations, bearing the same rate of interest, and of the same aggregate principal amount will. be issued by the Paying Agent(Registrar to the designated transferee or transferees. The City and the Paying Agent/Registrar, and any agent of either, shall treat the registered owner whose name appears on the Security Register (i) on the Record Date as the owner entitled to payment of interest hereon, (ii) on the date of surrender of this Certificate as the owner entitled to payment of principal hereof at its Stated Maturity or its redemption, in whole ar in part, and (iii) on any other date as the owner for all other purposes, and neither the City nor the Paying Agent/Registrar, or any agent of either, shall be affected by notice to the contrary. In the 801~2487.1/10801Q35 I U event of nonpayment of interest on a scheduled payment date and for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the City. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States Mail, first class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. It is hereby certified, recited, represented and declared that the City is a body corporate and political subdivision duly organized and legally existing under and by virtue of the Constitution and laws of the State of Texas; that the issuance of the Certificates is duly authorized by law; that all acts, conditions and things required to exist and be done precedent to and in the issuance of the Certificates to render the salve lawful and valid obligations of the City have been properly done, have happened and have been performed in regular and due time, form. and manner as required by the Constitution and laws of the State of Texas, and the Ordinance; that the Certificates do not exceed any Constitutional or statutory limitation; and that due provision has been made for the payment of the principal of and interest on the Certificates as aforestated. Incase any provision in this Certificate shall be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. The terms and provisions of this Certificate and the Ordinance shall be construed in accordance with and shall be governed by the laws of the State of Texas. 1N WITNESS WHEREOF, the City Council of the City has caused this Certificate to be duly executed under the official seat of the City as of the Certificate Date. CITY OF NORTH RICHLAND HILLS, TEXAS Mayor COUNTERSIGNED: City Secretary (SEAL) 8U172987.1~10801035 11 (c) Form of Registration Certificate of Comptroller of Public Accounts to appear on Initial Certificatefs) only. REGIST'1tArTIUN CERTIFICATE UF' COMPTROLLER OF PUBLIC ACCOUNTS OFFICE OF THE COMPTROLLER ) OF PUBLIC ACCOUNT'S ) REGISTER NO. THE STATE OF TEXAS ) I I-iEREBY CERTIFY that this Certificate has been examined, certified as to validity and approved by the Attorney Genera! of the State of Texas, and duly registered by the Comptroller of Public Accounts of the State of Texas. WITNESS my signature and seal of office this (SEAL) only. Comptroller of Public Accounts of the State of Texas (d) Form of Certificate of Paying Agent/Registrar to appear on Definitive Certificates KE~'~STR,ATIOIy' CERTIFICATE OF PAYING AGENT/REGISTRAR This Certificate has been duly issued and registered under the provisions of the within-mentioned Ordinance; the certificate or certificates of the above entitled and designated series originally delivered having been approved by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts, as shown by the records of the Paying AgentlRegistrar. The designated offices of the Paying Agent/Registraz located in Dallas, Texas, or such office as may be designated for such purpose by the Paying Agent/Registrar or any successor to its functions, is the ":Designated Payment(Transfer Office" for this Certificate. Registration Date: "THE BANK OF NEW YORK TRUST COMPANY, N.A., Dallas, Texas, as Paying Agent/Registrar By~ ___.___._ ___ _ Authorized Signature $Ul72987.t~10801035 1 2 (e) Form of Assignment. ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto (Print ar typewrite name, address and zip code of transferee): (Social Security or other identifying number )the within Certificate and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Certificate on the books kept for registration thereof, with full power of substitution in the premises. DATED: Signature guaranteed: NOTICE: The signature on this assignment must correspond with the name of the registered owner as it appears on the face of the within Certificate in every particular. (f) The Initial CertificateL) shall be in the form set forth in a~ra~ranh ) of this Section, except that the form of a sinstle fully registered Initial Certificate shall be modified as follows: REGISTERED NO. T-1 UNITED STATES OF AMERICA STATE OF TEXAS CITY OF NORTH RICHLAND HILLS, TEXAS, TAX AND WATERWORKS AND SEWER SYSTEM (LIMITED PLEDGE) REVENUE CERTIFICATE OF OBLIGATION, SERIES 2008 REGISTERED 54,750,000 Certificate Date: April 15, 2008 Registered Owner: Principal Amount: FOUR MILLION SEVEN HUNDRED FIFTY THOUSAND DOLLARS 'The City of North Richland I-Iills (hereinafter referred to as the "City"), a body corporate and municipal corporation in the County of Tarrant, State of Texas, for value received, acknowledges itself indebted to and hereby promises to pay to the Registered Owner named so~azvs~. i/iosai o3s 13 above, or the registered assigns thereof, the Principal Amount hereinabove stated on February 15 in each of the years and in principal installments in accordance with the following schedule: PRINCIPAL YEAR INSTALLMENTS INTEREST RATE (Information to be inserted from schedule in Section 2 hereof). (or so much thereof as shall not have been redeemed prior to maturity) and to pay interest on the unpaid principal amounts hereof from the interest payment date next preceding the "Registration Date" of this Certificate appearing below at the per annum rate(s) of interest specified above computed on the basis of a 360-day year of twelve 30-day months; such interest being payable on February 15 and August I S in each year, commencing February 15, 2009, until maturity or prior redemption. Principal installments of this Certificate are payable at its Stated Maturity or on a redemption date to the registered owner hereof by The Bank of New York Trust Company, N.A., Dallas, Texas (the "Paying Agent/Registrar"), upon presentation and surrender, at its designated offices in Dallas, Texas (the "Designated PaymentlTransfer Office"). Interest is payable to the registered owner of this Certificate whose name appears on the "Security Register" maintained by the Paying Agent/Registrar at the close of business on the "Record Date", which is the last business day of the month next preceding each interest payment date hereof and interest shall be paid by the Payiag AgenURegistrar by check sent United States Mail, first class postage prepaid, to the address of the registered owner recorded in the Security Register or by such other method, acceptable to the Paying Agentl Registrar, requested by, and at the risk and expense of, the registered owner. If the date for the payment of the principal of or interest on the Certificates shall be a Saturday, Sunday, a legal holiday, or a day when banking institutions in the city where the Designated Paymcntfl'ransfer Office of the Paying Agen#/Registrar is located are authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day when banking institutions are authorized to close; and payrnent on such date shall have the same force and effect as if made on the original date payment was due. All payments of principal of, premium, if any, and interest on this Certificate shall be without exchange or collection charges to the owner hereof and in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. SEC"PION 10: Definitions. For purposes of this Ordinance and far clarity with respect to the issuance of the Certificates herein authorized, and the levy of taxes and appropriation of Net Revenues therefor, the following words or terms, whenever the same appears herein without qualifying language, are defined to mean as follows: (a) The term "Certificates" shall mean the $4,750,000 "City of North Richland Hills, 'Texas, Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 2008" authorized by this Ordinance. (b) The term "Certificate Fund" shall mean the special Fund created and established under the provisions of Section 11 of this Ordinance. $0172987.110801035 1 4 (c) The term "Collection Date" shall mean, when reference is being made to the levy and collection of annual ad valorem taxes, the date the annual ad valorem taxes levied each year by the City become delinquent. (d) The term "Fiscal Year" shall mean the twelve month financial accounting period for the System ending September 30th of each year; provided, however, the City, by ordinance, may change the Fiscal Year to another period of not less dean twelve calendar months. (e) The term "Government Securities" shall mean (i) direct noncallable obligations of the United States of America, including obligations the principal of and interest on which are unconditionally guaranteed by the United States of America, (ii) noncallable obligations of an agency or instrumentality of the United States, including obligations unconditionally guaranteed or insured by the agency or instrumentality and, on the date of their acquisition or purchase by the City, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent and (iii) noncallable obligations of a state or an agency or a county, municipality, or other political subdivision of a state that have been refunded and that, on the date of their acquisition or purchase by the City, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent. (f) The term "Gross Revenues" shall mean all income and revenues of every nature derived or received from the operation and ownership (excluding refundable meter deposits, restricted gifts and grants in aid of construction, impact fees charged developers and special assessments against landowners) of the System, including earnings and income derived from the investment or deposit of moneys in any special funds or accounts created and established for the payment and security of the Prior Lien Obligations and other obligations payable solely from and secwed only by a lien on and pledge of the'Net Kevenues. (g) The term "Net Revenues" shall mean Gross Revenues of the System, with respect to any period, after deducting the System's Operating and Maintenance Expenses dwing such period. (h) The term "Operating and Maintenance Expenses" shall mean all current expenses of operating and maintaining the System, including all salaries, labor, materials, repairs and extensions necessary to render efficient service; provided, however, that only such repairs and extensions, as in the judgment of the City Council, reasonably and fairly exercised, are necessary to maintain the operations and render adequate service to the City and the inhabitants thereof, or such as might be necessary to meet some physical accident or condition which would otherwise impair obligations payable from Net Revenues shall be deducted in determining "Net Revenues". Depreciation charges shall not be considered Operating and Maintenance Expenses. Operating and Maintenance Expenses shall include payments under contracts for the purchase of water supply, treatment of sewage or other materials, goods or services for the System to the extent authorized by law and the provisions of such contract. (i) The term "Outstanding" when used in this Ordinance with respect to Certificates means, as of the date of determination, all Certificates theretofore issued and delivered under this Ordinance, except: 84172987.1/10801435 1 5 (1) those Certificates cancelled by the Paying Agent/Registrar or delivered to the Paying Agent/Registrar for cancellation; (2) those Certificates for which payment has been duly provided by the City in accordance with the provisions of Section 20 hereof; and (3) those Certificates that have been mutilated, destroyed, lost or stolen and replacement Certificates have been registered and delivered in lieu thereof as provided in Section 19 hereof. (j) The term "Previously Issued Certificates" shall mean the outstanding (i) "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 1998", dated May 1, 1998, originally issued in the principal amount of $8,180,000; (ii) "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 1999", dated April 15, 1999, originally issued in the principal amount of $3,560,000; (iii) "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System (Limited Pledge} Revenue Certificates of Obligation, Series 2000", dated May 1, 2000, originally issued in the principal amount of $2,315,000; (iv) "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 2006", dated April 15, 2006, originally issued in the principal amount of $11,310,000, and (v) "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 200T', dated April 15, 200'7, originally issued in the principal amount of $2,705,000. (k) The term "Prior Lien Obligations" shall mean all revenue bonds or other obligations, now outstanding and hereafter issued, payable from and secured, in whole or in part, by a lien on and pledge of the Net Revenues of the System that is superior to the lien on and pledge of the Net Revenues of the System securing the Certificates, the Previously Issued Certificates, the Subordinate Lien Obligations and any obligations having a lien on and pledge of the Net Revenues of the System that is on an parity with the lien on and pledge of the Net Revenues of the System securing any of the Certificates, the Previously Issued Certificates, and the Subordinate Lien Obligations. (1) The term "Subordinate Lien Obligations" shall mean all revenue bonds or other obligations now outstanding or hereafter issued payable from and secured, in whole or in part, by a lien on and pledge of the Net Revenues of the System that is inferior to the lien on and pledge of the Net Revenues of the System securing the Prior Lien Obligations, the Certificates, the Previously Issued Certificates and any obligation having a lien on and pledge of the Net Revenues of the System that is on a parity with the lien on and pledge of the Net Revenues of the System securing any of the Prior Lien Obligations, the Certificates and the Previously Issued Certificates, including, but not limited to, the outstanding "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System Surplus Revenue Certificates of Obligation, Series 2001 ", dated April 15, 2001, originally issued in the principal amount of 53,255,000, "City of North Richland Hills, Texas, 'Tax and Waterworks and Sewer System Surplus Revenue Certificates of Obligation, Series 2002", dated April 15, 2002, originally issued in the principal amount of $6,745,000, "City of North Richland Hilts, Texas, Tax and Waterworks and Sewer 80172987,1~1080L035 1 6 System Surplus Revenue Certificates of Obligation, Series 2003", dated April 15, 2003, originally issued in the principal amount of $3,700,000, and "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System Surplus Revenue Certificates of Obligation, Series 2004", dated April 15, 2004, originally issued in the principal amount of $685,000. (m) The term "System" shall mean all properties, facilities and plants currently owned, operated and maintained by the City for the supply, treatment and transmission of treated potable water and the collection, treatment and disposal ofwater-carried wastes, together with all future extensions, improvements, replacements and additions thereto; provided, however, that notwithstanding the foregoing, and to the extent now or hereafter authorized or permitted by law, the term "System" shall not mean to include facilities of any kind which are declared not to be a part of the System and which are acquired or constructed by or on behalf of the City with the proceeds from the issuance of "Special Facilities Bonds", which are hereby defined as being special revenue obligations of the City which aze not Prior Lien Obligations but which are payable from and secured by other liens on and pledges of any revenues, sources or payments, not pledged to the payment of the Prior Lien Obligations including, but not limited to, special contract revenues or payments received from any other legal entity in connection with such facilities. SECTION 11: Certificate Fund. For the purpose of paying the interest on and to provide a sinking fund for the payment, redemption and retirement of the Certificates, there shall be and is hereby created a special account or fund on the books and records of the City known as the "SPECIAL SERIES 2008 TAX AIV'D REVENUE CERTIFICATE OF OBLIGATION FUND", and all moneys deposited to the credit of such Fund shall be shall be kept and maintained in a special banking account at a depository bank of the City. The Mayor, Mayor Pro Tem, City Manager, Assistant City Manager, Director of Finance, and City Secretary of the City, individually or jointly, are hereby authorized and directed to make withdrawals from said Fund sufficient to pay the principal of and interest on the Certificates as the same become due aad payable, and, shall cause to be transferred to the Paying Agent/Registrar from moneys on deposit in the Certificate Fund an amount sufficient to pay the amount of principal and/or interest falling due on the Certificates, such transfer of funds to the Paying Agent/Registraz to be made in such manner as will cause immediately available funds to be deposited with the Paying Agent/Registrar on or before the last business day next preceding each interest and principal payment date for the Certificates. Pending the transfer of funds to the Paying Agent/Registraz, money in the Certificate Fund may, at the option of the City, be invested in obligations identified in, and in accordance with the provisions of the "Public Funds Investment Act" (V.T.C.A., Government Code, Chapter 2256, as amended) relating to the investment of "bond proceeds"; provided that all such investments shall be made in such a manner that the money required to be expended from said Fund will be available at the proper time or times. All interest and income derived from deposits and investments in said Certificate Fund shall be credited to, and any losses debited to, the said Certificate Fund. All such investments shall be sold promptly when necessary to prevent any default in connection with the Certificates. SECTION 12: Tax Levy. To provide for the payment of the "Debt Service Requirements" on the Certificates being (i) the interest on said Certificates and (ii) a sinking s©~~ivg7.~/~08o~o3s 17 fund for their redemption at maturity or a sinking fund of 2% (whichever amount shall be the greater), there shall be and there is hereby levied a sufficient tax, within the limitations prescribed by law, on each one hundred dollars' valuation of taxable property in said City, adequate to pay such Debt Service Requirements while the Certificates remain Outstanding, full allowance being made for delinquencies and costs of collection; and said tax shall be assessed and collected each year and applied to the payment of the Debt Service Requirements, and the same shall not be diverted to any other purpose. The taxes so levied and collected shall be paid into the Certificate Fund. The City Council hereby declares its purpose and intent to provide and levy a tax legally and fully sufficient to pay the said Debt Service Requirements, it having been determined that the existing and available taxing authority of the City for such purpose is adequate to permit a legally sufficient tax in consideration of all other outstanding indebtedness. The amount of taxes to be provided annually for the payment of the principal of and interest on the Certificates shall be determined and accomplished in the rollowing manner: (a) Prior to the date the City Council establishes the annual tax rate and passes an ordinance levying ad valorem taxes each year, the Council shall determine: (1) The amount on deposit in the Certificate Fund after (a) deducting therefrom the total amount of Debt Service Requirements to become due on Certificates prior to the Collection Date for the ad valorem taxes to be levied and (b) adding thereto the amount of the Net Revenues of the System appropriated and allocated to pay such Debt Service Requirements prior to the Collection Date for the ad valorem taxes to be levied. (2) The amount of Net Revenues of the System, appropriated and to be set aside for the payment of the Debt Service Requirements on the Certificates between the Collection Date for the taxes then to be levied and the Collection Date for the taxes to be levied during the next succeeding calendar year. (3) The amount of Debt Service Requirements to become due and payable on the Certificates between the Collection Date for the taxes then to be levied and the Collection Date for the taxes to be levied during the next succeeding calendar year. (b) The amount of taxes to be levied annually each year to pay the Debt Service Requirements on the Certificates shall be the amount established in paragraph (3) above less the sum total of the amounts established in paragraphs (1) and (2), after taking into consideration delinquencies and costs of collecting such annual taxes. SECTION 13: Limited Pledge of Net Revenues. The City hereby covenants and agrees that, subject to the prior lien on and pledge of the Net Revenues of the System to the payment and security of Prior Lien Obligations, the Net Revenues of the System in an aggregate amount not to exceed $1,000 are hereby irrevocably pledged to the payment of the principal of and interest on the Certificates, and the limited pledge of 51,000 of the Net Revenues of the System herein made for the payment of the Certificates shalt constitute a lien on the Net Revenues of the System in accordance with the terms and provisions hereof and shall be on an parity in all sa~n9a~.i/iosowas 18 respects with the lien on the Net Revenues securing the payment of the Previously Issued Certificates. Furthermore, such lien on and pledge of the Net Revenues securing the payment of the Certificates shall constitute a lien on the Net Revenues of the System until such time as the City shall pay all of such $1,000, after which time the pledge shall cease, all in accordance with the terms and provisions hereof and be valid and binding without further action by the City and without any filing or recording except for the filing of ties Ordinance in the records of the City. SECTION 14: System Fund. The City covenants and agrees that all Gross Revenues (excluding earnings from the investment of money held in any special funds or accounts created for the payment and xcurity of the Prior Lien Obligations) shall be deposited as collected into a fund maintained at an official depository of the City and known on the books of the City as the "Water and Sewer System Fund" {hereinafter called the "System Fund"). All moneys deposited to the credit of the System Fund shall be allocated, dedicated and disbursed to the extent required for the following purposes and in the order of priority shown, to wit: First: To the payment of all necessary and reasonable Operating and Maintenance Expenses of the System as defined herein or required by statute to be a first charge on and claim against the Gross Revenues of the System. Second: To the payment of all amounts required to be deposited in the special Funds created and established for the payment, security and benefit of Prior Lien Obligations in accordance with the terms and provisions of the ordinances authorizing the issuance of Prior Lien Obligations. Third: To the payment, equally and ratably, of the limited amounts pledged to the payment of the Previously Issued Certificates and the Certificates. Any Net Revenues remaining in the System Fund after satisfying the foregoing payments, or making adequate and sufficient provision for the payment thereof, may be appropriated and used for payment of the Subordinate Lien Obligations and then for any other City purpose now or hereafter permitted by law. SECTION 1 S: Security of Funds. All moneys on deposit in the Funds for which this Ordinance makes provision (except any portion thereof as may be at any time properly invested) shall be secured in the manner and to the fullest extent required by the laws of Texas for the security of public funds, and moneys on deposit in such Funds shall be used only for the purposes permitted by this Ordinance. SECTION 16: Special Covenants. The City hereby further covenants as follows: (a) It has the lawful power to pledge the Nei Revenues of the System to the payment of the Certificates in the manner herein contemplated and has lawfully exercised such power under the Constitution and laws of the State of Texas, including said power existing under V.T.C.A, Government Code, Sections 1502.OS6 and 1 S02.OS8 and V.T.C.A., Local Government Code, Sections 271.041, et seq. 8012987,1/10801035 1 9 (b) Other than for the payment of the Prior Lien Obligations, the Previously Issued Certificates, the Certificates and the Subordinate Lien Obligations, the Net Revenues of the System have not in any manner been pledged to the payment of any debt or obligation of the City or of the System. SECTION 17: Issuance of Prior Lien Obligations. The City expressly reserves the right to hereafter issue Prior Lien Obligations, without limitation as to principal amount but subject to any terms, conditions or restrictions applicable thereto under law or otherwise. Prior Lien Obligations hereafter issued may be payable, in whole or in part, from the Net Revenues (without impairment of the obligation of contract with the Holders of the Certificates) upon such terms and conditions as the City Council may determine. Additionally, the City reserves the right to issue {a) obligations payable, in whole or in part, from the Net Revenues of the System and, to the extent provided, secured by a lien on and pledge of the Net Revenues of equal rank and dignity with the lien and pledge securing the payment of the Certificates and the Previously Issued Certificates and (b) Subordinate Lien Obligations. SECTION 18: application of Prior Lien Obligations Covenants and A¢reements. It is the intention of this governing body and accordingly hereby recognized and stipulated that the provisions, agreements and covenants contained herein bearing upon the management and operations of the System, and the administering and application of revenues derived from the operation thereof, shall to the extent possible be harmonized with like provisions, agreements and covenants contained in the ordinances authorizing the issuance of the Prior Lien Obligations, and to the extent of any irreconcilable conflict between the provisions contained herein and in the ordinances authorizing the issuance of the Prior Lien Obligations, the provisions, agreements and covenants contained therein shall prevail to the extent of such conflict and be applicable to this Ordinance but in all respects subject to the priority of rights and benefits, if any, conferred thereby to the holders of the Prior Lien Obligations. SECTION 19: Mutilated, Destroyed. Lost and Stolen Certificates. In case any Certificate shall be mutilated, or destroyed, lost or stolen, the Paying Agent/Registrar may execute and deliver a replacement Certificate of like form and tenor, and in the same denomination and bearing a number not contemporaneously outstanding, in exchange and substitution for such mutilated Certificate, or in lieu of and in substitution for such destroyed, lost or stolen Certificate, only upon the approval of the City and after (i) the filing by the Holder thereof with the Paying Agent/Registrar of evidence satisfactory to the Paying AgentlRegistrar of the destruction, loss or theft of such Certificate, and of the authenticity of the ownership thereof and {ii) the furnishing to the Paying Agent/Registrar of indemnification in an amount satisfactory to hold the City and the Paying Agent/Registrar harmless. All expenses and charges associated with such indemnity and with the preparation, execution and delivery of a replacement Certificate shall be borne by the Holder of the Certificate mutilated, or destroyed, lost or stolen. Every replacement Certificate issued pursuant to this Section shall be a valid and binding obligation, and shall be entitled to ail the benefits of this Ordinance equally and ratably with all other Outstanding Certificates; notwithstanding the enforceability of payment by anyone of the destroyed, lost, or stolen Certificates. The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement and payment of mutilated, destroyed, lost or stolen Certificates. 80172987.110801035 2~ SECTION 20: Satisfaction of Qbliga'on of City. If the City shall pay or cause to be paid, or there shall otherwise be paid to the Holders, the principal of, premium, if any, and interest on the Certificates, at the tones and in the manner stipulated in this Ordinance, then the pledge of taxes levied under this Ordinance and the Net Revenues of the System and all covenants, agreements, and other obligations of the City to the Holders shall thereupon cease, terminate, and be discharged and satisfied. Certificates or any principal amount{s) thereof shall be deemed to have been paid within the meaning and with the effect expressed above in this Section when (i) money sufficient to pay in full such Certificates or the principal amount(s) thereof at maturity or the redemption date therefor, together with all interest due thereon, shall have been irrevocably deposited with and held in trust by the Paying Agent/Registrar, or an authorized escrow agent, or (ii) Government Securities shall have been irrevocably deposited in trust with the Paying Agent/Registrar, or an authorized escrow agent, which Government Securities have been certified by an independent accounting firm to mature as to principal and interest in such amounts aad at such times as will insure the availability, without reinvestment, of sufficient money, together with any moneys deposited therewith, if any, to pay when due the principal of and interest an such Certificates, or the principal amount(s) thereof, on and prior to the Stated Maturity thereof or (if notice of redemption has been duly given or waived or if irrevocable arrangements therefor acceptable to the Paying Agent/Registrar have been made) the redemption date thereof. The City covenants that no deposit of moneys or Government Securities will be made under this Section and no use made of any such deposit which would cause the Certificates to be treated as "arbitrage bonds" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, or regulations adopted pursuant thereto. Any moneys so deposited with the Paying Agent/Registrar, or an authorized escrow agent, and all income from Government Securities held intrust by the Paying Agent/R.egistrar, or an authorized escrow agent, pursuant to this Section which is not required for the payment of the Certificates, or any principal amount(s) thereof, or interest thereon with respect to which such moneys have been so deposited shall be remitted to the City or deposited as directed by the City. Furthermore, any money held by the Paying AgentlRegistrar for the payment of the principal of and interest on the Certificates and remaining unclaimed for a period of three (3) years after the Stated Maturity, or applicable redemption date, of the Certificates such moneys were deposited and are held in trust to pay shall upon the request of the City be remitted to the City against a written receipt therefor. Notwithstanding the above and foregoing, any remittance of funds from the Paying Agent/Registrar eo the City shall be subject to any applicable unclaimed property laws of the State of Texas. SECTION 21: Ordinance a Contract -Amendments. This Ordinance shall constitute a contract with the Holders from time to time, be binding on the City, and shall not be amended or repealed by the City so long as any Certificate remains Outstanding except as permitted in this Section and in Section 37 hereof. The Ciry may, without the consent of or notice to any Holders, from time to time and at any time, amend this Ordinance in any manner not detrimental to the interests of the Holders, including the curing of any ambiguity, inconsistency, or formal defect or omission herein. In addition, the City may, with the consent of Holders holding a majority in aggregate principal amount of the Certificates then Outstanding, amend, add to, or rescind any of the provisions of this Ordinance; provided that, without the consent of all Holders of Outstanding 80172987.110801035 2 1 Certificates, no such amendment, addition or rescission shall (1) extend the time or times of payment of the principal of, premium, if any, and interest on the Certificates, reduce the principal amount thereof, the redemption price, or the rate of interest thereon, or in any other way modify the terms of payment of the principal af, premium, if any, or interest on the Certificates, (2) give any preference to any Certificate over any other Certificate, or (3) reduce the aggregate principal amount of Certificates required to be li~eld by Holders for consent to any such amendment, addition, or rescission. SECTION 22: Covenants to Maintain Tax-Exempt Status. (a Definitions. When used in this Section, the following terms have the follawing meanings: "Closing Date" means the date on which the Certificates are first authenticated and delivered to the initial purchasers against payment therefor. "Code" means the Internal Revenue Code of 1986, as amended by all legislation, if any, effective on or before the Closing Date. "Computation Date" has the meaning set forth in Section l .148-1(b) of the Regulations. "Gross Proceeds" means any proceeds as defined in Section 1.148-1(b) of the Regulations, and any replacement proceeds as defined in Section 1.148-1(c) of the Regulations, of the Certificates. "Investment" has the meaning set forth in Section 1.148-1(b) of the Regulations. "Nonpurpose Investment" means any investment property, as defined in section 148(b) of the Code, in which Gross Proceeds of the Certificates are invested and which is not acquired to carry out the governmental purposes of the Certificates. "Rebate Amount" has the meaning set forth in Section 1.148-1(b) of the Regulations. "Regulations" means any proposed, temporary, or final Income Tax Regulations issued pursuant to Sections 103 and 141 through 150 of the Code, and 103 of the Internal Revenue Code of 1954, which are applicable to the Certificates. Any reference to any specific Regulation shall also mean, as appropriate, any proposed, temporary or final Income Tax Regulation designed to supplement, amend or replace the specific Regulation referenced. "Yield" of (1) any Investment has the meaning set forth in Section 1.148-5 of the Regulations and (2) the Certificates has the meaning set forth in Section 1.148-4 of the Regulations. (b) Not to Cause Interest to Beco,~me Taxable. The City shall not use, permit the use of, or omit to use Gross Proceeds or any other amounts (or any property the acquisition, construction or improvement of which is to be financed directly or indirectly with Gross Proceeds) in a manner which if made or omitted, respectively, would cause the interest on any Certificate to become includable in the gross income, as defined in section 61 of the Code, of the owner thereof for federal income tax purposes. Without limiting the generality of the foregoing, unless and until the City receives a written opinion of counsel nationally recogni7.ed in the field 801?298?.I~10801033 zZ of municipal bond law to the effect that failure to comply with such wvenant will not adversely affect the exemption from federal income tax of the interest on any Certificate, the City shall comply with each of the specific covenants in this Section. (c) No Private Use or Private Payments. Except as permitted by section 141 of the Code and the Regulations and rulings thereunder, the City shall at all times prior to the last Stated Maturity of Certificates: (1) exclusively own, operate and possess all property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with Gross Proceeds of the Certificates, and not use or permit the use of such Grass Proceeds (including all contractual arrangements with terms different than those applicable to the general public) or any property acquired, constructed or improved with such CJross Proceeds in any activity carved on by any person or entity (including the United States or any agency, department and instrumentality thereof] other than a state or local government, unless such use is solely as a member of the general public; and (2) not directly or indirectly impose or accept any charge or other payment by any person or entity who is treated as using Gross Proceeds of the Certificates or any property the acquisition, construction or improvement of which is to be financed or refinanced directly or indirectly with such Gross Proceeds, other than taxes of general application within the City or interest earned on investments acquired with such Gross Proceeds pending application for their intended purposes. (d) No Private Loan. Except to the extent permitted by section 141 of the Code and the Regulations and rulings thereunder, the City shall not use Gross Proceeds of the Certificates to make or finance loans to any person or entity other than a stale or local government. For purposes of the foregoing covenant, such Gross Proceeds are considered to be "loaned" to a person or entity if: (1) property acquired, constructed or improved with such Gross Proceeds is sold or leased to such person or entity in a transaction which creates a debt for federal income tax purposes; (2) capacity in or service from such property is committed to such person or entity under atake-or-pay, output or similar contract or arrangement; or (3) indirect benefits, or burdens and benefits of ownership, of such Gross Proceeds or any property acquired, constructed or improved with such Gross Proceeds are otherwise transferred in a transaction which is the economic equivalent of a loan. (e) Not to Invest at Higher Yie~l. Except to the extent permitted by section 148 of the Code and the Regulations and rulings thereunder, the City shall not at any time prior to the final Stated Maturity of the Certificates directly or indirectly invest Gross Proceeds in any Investment (or use Gross Proceeds to replace money so invested), if as a result of such investment the Yield from the Closing Date of all Investments acquired with Gross Proceeds (or with money replaced thereby), whether then held or previously disposed of, exceeds the Yield of the Certificates. (f) Not Federall~Guaranteed. Except to the extent permitted by section 149{b) of the Code and the Regulations and rulings thereunder, the City shall not take or omit to take any 80172987. if 10801035 23 action which would cause the Certificates to be federally guaranteed within the meaning of section 149(b) of the Code and the Regulations and rulings thereunder. (g) Information Report. The City shall timely file the information required by section 149(e) of the Code with the Secretary of the Treasury on Form 8038-G or such other form and in such place as the Secretary may prescribe. (h) Rebate of Arbitrage Profits. Except to the extent otherwise provided in section 148(f~ of the Code and the Regulations and rulings thereunder: (1) The City shall account for all Gross Proceeds (including all receipts, expenditures and investments thereof) on its books of account separately aad apart from all other funds (and receipts, expenditures and investments thereof) and shall retain all records of accounting for at least six years after the day on which the last Outstanding Certificate is discharged. However, to the extent permitted by law, the City may commingle Gross Proceeds of the Certificates with other money of the City, provided that the City separately accounts for each receipt and expenditure of Gross Proceeds and the obligations acquired therewith. (2) Not less frequently than each Computation Date, the City shall calculate the Rebate Amount in accordance with rules set forth in section 148(f) of the Code and the Regulations and rulings thereunder. The City shall maintain such calculations with its official transcript of proceedings relating to the issuance of the Certificates until six years after the final Computation Date. (3) As additional consideration for the purchase of the Certificates by the Purchasers and the loan of the money represented thereby and in order to induce such purchase by measures designed to insure the excludability of the interest thereon from the gross income of the owners thereof for federal income tax purposes, the City shall pay to the United States out of the Interest and Sinking Fund or its general fund, as permitted by applicable Texas statute, regulation or opinion of the Attorney General of the State of Texas, the amount that when added to the future value of previous rebate payments made for the Certificates equals (i) in the case of a Final Computation Date as defined in Section 1.14$-3(e)(2) of the Regulations, one hundred percent (100°!0) of the Rebate Amount on such date; and (ii) in the case of any other Computation Date, ninety percent (90%) of the Rebate Amount on such date. In all cases, the rebate payments shall be made at the times, in the installments, to the place and in the manner as is or may be required by section 148(f) of the Code and the Regulations and rulings thereunder, and shall be accompanied by Form 8038-T or such other forms and information as is or may be required by Section 148(f) of the Code and the Regulations and rulings thereunder. (4) The City shall exercise reasonable diligence to assure that no errors aze made in the calculations and payments required by paragraphs (2) and (3), and if an error is made, to discover and promptly correct such error within a 80172987.110801035 24 reasonable amount of time thereafter (and in all events within one hundred eighty (180) days after discovery of the error), including payment to the United States of any additional Rebate Amount owed to it, interest thereon, and any penalty imposed under Section 1.148-3(h) of the Regulations. (i) Nat to Divert Arbitrage Profits. Except to the extent permitted by section 148 of the Code and the Regulations and rulings thereunder, the City shalt not, at any time prior to the earlier of the Stated Maturity or final payment of the Certificates, enter into any transaction that reduces the amount required to be paid to the United States pursuant to Subsection (h} of this Section because such transaction results in a smaller profit or a larger loss than would have resulted if the transaction had been at arm's length and had the Yield of the Certificates not been relevant to either party. (j) ~le_ctions. The City hereby directs and authorizes the Mayor, Mayor Pro Tem, City Manager, Assistant City Manager, Director of Finance or City Secretary, individually ar jointly, to make elections permitted or required pursuant to the provisions of the Code or the Regulations, as they deem necessary or appropriate in connection with the Certificates, in the Certificate as to Tax Exemption or similar or other appropriate certificate, form or document. (k) Oualified Tax Exempt Obli ations. In accordance with the provisions of paragraph (3) of subsection (b) of Section 265 of the Code, the City hereby designates the Certificates to be "qualified tax exempt obligations" in that the Certificates are not "prjvate activity bonds" as defined in the Code and the reasonably anticipated amount of "qualified tax exempt obligations" to be issued by the City (including all subordinate entities of the City) for the calendar year 2008 will not exceed $10,000,000. SECTION 23: Sale of Certificates. Pursuant to a public sale for the Certificates, the bid submitted by (herein referred to as the "Purchasers") is declared to be the best bid received producing the lowest true interest cost rate to the City, and the sale of the Certificates to said Purchasers at the price of paz and accrued interest to the date of delivery, plus a premium of $ is hereby approved and confirmed. Delivery of the Certificates to the Purchasers shall occur as soon as possible upon payment being made therefor in accordance with the terms of sale. SECTION 24: Official Statement Approval. The use of the OtTicial Statement by the Purchasers in connection with the public offering and sale of the Certificates is hereby ratified, confirmed and approved in all respects. The final Official Statement, which reflects the terms of sale, (together with such changes approved by the Mayor, Mayor Pro Tem, City Manager, Assistant City Manager, Director of Finance, or City Secretary, one or both of said officials), shall be and is hereby in all respects approved and the Purchasers are hereby authorized to use and distribute said final Official Statement, dated April 28, 2008, in the reoffering, sale and delivery of the Certificates to the public. SECTION 25: Proceeds of Sale. The proceeds of sale of the Certificates (less accrued interest and premium in the amount of $ received from the Purchasers and amounts to pay costs of issuance) shall be deposited in a construction fund maintained at a depository bank of the City. Pending expenditure for authorized projects and purposes, such proceeds of 80172987.1f1060)035 25 sale may be invested in authorized investments in accordance with the provisions of V.T.C.A., Government Code, Chapter 2256, as amended, including ~ guaranteed investment contracts permitted by V.T.C.A., Section 2256.015 et seq., and the City's investment policies and guidelines, and any investment earnings realized may be expended for such authorized projects and purposes or deposited in the Certificate Fund as shall be determined by the City Council. Accrued interest and premium in the amount of $ received from the Purchasers as well as any surplus proceeds of sale of the Certificates, including investment earnings on the construction fund, remaining after completion of all authorized projects or purposes shall be deposited to the credit of the Certificate Fund. SECTION 26: Control and Custody of Certificates. The Mayor of the City shall be and is hereby authorized to take and have charge of all necessary orders and records pending the sale of the Certificates, the investigation by the Attorney General of the State of Texas, including the printing and supply of definitive Certificates, and shall take and have charge and control of the Initial Certificate(s) pending the approval thereof by the Attorney General, the registration thereof by the Comptroller of Public Accounts and the delivery thereof to the Purchasers. Furthermore, the Mayor, Mayor Pro Tem, City Manager, Assistant City Manager, Director of Finance and City Secretary, any one or more of said officials, are hereby authorized and directed to furnish and execute such documents and certifications relating to the City and the issuance of the Certificates, including a certification as to facts, estimates, circumstances and reasonable expectations pertaining to the use and expenditure and investment of the proceeds of the Certificates as may be necessary for the approval of the Attorney General and their registration by the Comptroller of Public Accounts. In addition, such off cials, together with the City's financial advisor, bond counsel and the Paying Agent/Registrar, are authorized and directed to make the necessary arrangements for the delivery of the Initial Certificate(s) to the Purchasers and the initial exchange thereof for definitive Certificates. SECTION 27: Notices to Holders -Waiver. Wherever this Ordinance provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and sent by United States Mail, first class postage prepaid, to the address of each Holder appearing in the Security Register at the close of business on the business day next preceding the mailing of such notice. In any case where notice to Holders is given by mail, neither the failure to mail such notice to any particular Holders, nor any defect in any notice so mailed, shall affect the sufficiency of such notice with respect to all other Certificates. Where this Ordinance provides for notice in any manner, such notice may be waived in writing by the Holder entitled to receive such notice, either before or after the event with respect to which such notice is given, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Paying Agent/Registrar, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. SECTION 28: Cancellation. All Certificates surrendered for payment, redemption, transfer, exchange, or replacement, if surrendered to the Paying Agent/Registrar, shall be promptly cancelled by it and, if surrendered to the City, shall be delivered to the Paying Agent/Registrar and, if not already cancelled, shall be promptly cancelled by the Paying 80172987.110801035 26 AgentlRegistrar. The City may at any time deliver to the Paying Agent/Registrar for cancellation any Certificates previously certified or registered and delivered which the City may have acquired in any manner whatsoever, and all Certificates so delivered shall be promptly cancelled by the Paying Agent/Registrar. All cancelled Certificates held by the Paying Agent/Registrar shall be returned to the City. SECTION 29: Bond Counsel's Opinion. The Purchasers' obligation to accept delivery of the Certificates is subject to being furnished a final opinion of Fulbright & Jaworski L.L.P., Dallas, Texas, approving the Certificates as to their validity, said opinion to be dated and delivered as of the date of delivery and payment for the Certificates. An executed counterpart of said opinion shall accompany the global certificates deposited with The Depository Trust Company or a reproduction thereof shall be printed on the definitive Certificates in the event the book entry only system shall be discontinued. SECTION 30: CUSIP Numbers. CUSIP numbers may be printed or typed on the definitive Certificates. It is expressly provided, however, that the presence or absence of CUSIP numbers on the definitive Certificates shall be of no significance or effect as regards the legality thereof and neither the City nor attorneys approving the Certificates as to legality are to be held responsible for CUSIP numbers incorrectly printed or typed on the definitive Certificates. SECTION 31: Benefits of Ordinance. Nothing in this Ordinance, expressed or implied, is intended or shall be construed to confer upon any person other than the City, the Paying Agent/R.egistrar and the Holders, any right, remedy, or claim, legal or equitable, under or by reason of this Ordinance or any provision hereof, and this Ordinance and all its provisions is intended to be and shall be for the sole and exclusive benefit of the City, the Paying Agent/Registrar and the Holders. SECTION 32: Inconsistent Provisions. All ordinances, orders or resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Ordinance are hereby repealed to the extent of such conflict, and the provisions of this Ordinance shall be and remain controlling as to the matters contained herein. SECTION 33: Governing_Law. This Ordinance shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. SECTION 34: Effect of Heading. The Section headings herein are for convenience of reference only and shall not affect the construction hereof. SECTION 35: Construction of Terms. If appropriate in the context of this Ordinance, words of the singular number shall be considered to include the plural, words of the plural number shall be considered to include the singular, and words of the masculine, feminine or neuter gender shall be considered to include the other genders. SECTION 36: Severability. If any provision of this Ordinance or the application thereof to any circumstance shall be held to be invalid, the remainder of this Ordinance and the application thereof to other circumstances shall nevertheless be valid, and the City Council hereby declares that this Ordinance would have been enacted without such invalid provision. 80172987.110801035 27 SECTION 37: Continuing_~isclosure Undertaking. (a) Definitions. As used in this Section, the following terms have the meanings ascribed to such terms below: "MSRB" means the Municipal Securities Rulernaking Board. "NRMSiR" means each person whom the SEC or its staff has determined to be a nationally recognized municipal securities information repository within the meaning of the Rule from time to time. "Rule" means SEC Rule 15c2-12, as amended from time to time. "SF,C" means the United States Securities and Exchange Commission. "SID" means any person designated by the State of Texas or an authorized department, officer, or agency thereof as, and determined by the SEC or its staff to be, a state information depository within the meaning of the Rule from time to time. (a) Annual R~rts. The City shall provide annually to each NRMSIR and any SID, within six months after the end of each fiscal year (beginning with the fiscal year ending September 30, 200$) financial information and operating data with respect to the City of the general type included in the final Official Statement approved by Section 24 of this Ordinance, being the information described in Exhibit B hereto. Financial statements to be provided shall be (1) prepared in accordance with the accounting principles described in Exhibit B hereto and (2) audited, if the City commissions an audit of such statements and the audit is completed within the period during which they must be provided. If audited financial statements are not available at the time the financial infon~nation and operating data must be provided, then the City shall provide unaudited financial statements for the applicable fiscal yeaz to each NRMSiR and any SID with the financial information and operating data and will file the annual audit report when and if the same becomes available. If the City changes its fiscal year, it will notify each NRMSIR and any SID of the change (and of the date of the new fiscal yeaz end) prior to the next date by which the City otherwise would be required to provide financial information and operating data pursuant to this Section. The financial information and operating data to be provided pursuant to this Section may be set forth in full in one or more documents or may be included by specific reference to any document (including an official statement or other offering document, if it is available from the MSRB) that theretofore has been provided to each NRMSIR and any SID or filed with the SEC. (b) Material Event Notices. The City shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, of any of the following events with respect to the Certificates, if such event is material within the meaning of the federal securities laws: Principal and interest payment delinquencies; 2. Non-payment related defaults; $0172987.I~IOg01435 28 3. Unscheduled draws on debt service reserves reflecting financial difficulties; 4. Unscheduled draws on credit enhancements reflecting financial difficulties; 5. Substitution of credit or liquidity providers, or their failure to perform; 6. Adverse tax opinions or events affecting the tax-exempt status of the Certificates; 7. Modifications to rights of holders of the Certificates; 8. Certificate calls; 9. Defeasances; 0. Release, substitution, or sale of property securing repayment of the Certificates; and 11. Rating changes. The City shall notify any SID and either each NRMSIR or the MSRB, in a timely manner, of any failure by the City to provide financial information or operating data in accordance with subsection (b) of this Section by the time required by such Section. (c) Limitations, Disclaimers and Amendments. The City shall be obligated to observe and perform the covenants specified in this Section while, but only while, the City remains an "obligated person" with respect to the Certificates within the meaning of the Rule, except that the City in any event will give the notice required by subsection (c) hereof of any Certificate calls and defeasance that cause the City to be no longer such an "obligated person." The provisions of this Section are for the sole benefit of the Holders and beneficial owmers of the Certificates, and nothing in this Section, express or implied, shall give any benefit or any legal or equitable right, remedy, or claim hereunder to any other person. The City undertakes to provide only the financial information, operating data, financial statements, and notices which it has expressly agreed to provide pursuant to this Section and does not hereby undertake to provide any other information that may be relevant or material to a complete presentation of the City's financial results, condition, or prospects or hereby undertake to update any information provided in accordance with this Section or otherwise, except as expressly provided herein. The City does not make any representation or warranty concerning such information or its usefulness to a decision to invest in or sell Certificates at any future date. UNDER NO CIRCUMSTANCES SHALL THE CITY BE LIABLE TO THE HOLDER OR BENEFICIAL OWNER OF ANY CERTIFICATE OR ANY OTHER PERSON, IN CONTRACT OR TORT, FOR DAMAGES RESULTING IN WHOLE UR IN PART FROM ANY BREACH BY TIME CITY, WHETHER NEGLIGENT OR WITHOUT FAULT ON ITS PART, OF ANY COVENANT SPECIFIED IN THIS SECTION, BUT EVERY RIGHT AND REMEDY OF ANY SUCH PERSON, 1N CONTRACT OR TORT, FOR OR ON ACCOUNT OF ANY SUCH BREACH SHAI,I. BE LIMITED TO AN ACTION FOR MANDAMUS OR SPECIFIC PERFORMANCE. 801 T.~.987. I ~ 10801035 29 No default by the City in observing or performing its obligations under this Section shall constitute a breach of or default under this Ordinance for purposes of any other provision of this Ordinance. Nothing in this Section is intended or shall act to disclaim, waive, or otherwise limit the duties of the City under federal and state securities laws. Notwithstanding anything herein to the contrary ,the provisions of this Section may be amended by the City from time to time to adapt to changed cin:umstanc:es resulting from a change in legal requirements, a change in law, or a change in the identity, nature, status, or type of operations of the City, but only if (1) the provisions of this Section, as so amended, would have permitted undervvri~e~s to purchase or sell Certificates in the primary offering of the Certificates in compliance with the Rule, taking into account any amendments or interpretations of the Rule to the date of such amendment, as well as such changed circumstances, and (2) either (a) the Holders of a majority in aggregate principal amount (or any greater amount required by any other provision of this Ordinance that authorizes such an amendment) of the Outstanding Certificates consent to such amendment or (b) a Person that is unaffiliated with the City (such as nationally recognized bond counsel) determines that such amendment will not materially impair the interests of the Holders and beneficial owners of the Certificates. The provisions of this Section may also be amended from time to tune or repealed by the City if the SEC amends or repeals the applicable provisions of the Rule or a court of final jurisdiction determines that such provisions are invalid, but only if and to the extent that reservation of the City's right to do so would not prevent underwriters of the initial public offering of the Certificates from lawfully purchasing or selling Certificates in such offering. If the City so amends the provisions of this Section, it shall include with any amended financial information or operating data next provided in accordance with subsection (b) an explanation, in narrative form, of the reasons for the amendment and of the impact of any change in the type of financial information or operating data so provided. SECTION 38: Public Meeting. It is officially found, determined, and declared that the meeting at which this Ordinance is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Ordinance, was given, all as required by V.T.C.A., Government Code, Chapter 551, as amended. SECTION 39: Effective Date. This Ordinance shall take effect and be in fiill force from and after its adoption on the date shown below in accordance with V.T.C.A., Government Code, Section 1201.028, as amended. [remainder of page left blank intentionally 60172987.1 ~ 10$01035 3 ~ PASSED AND ADOPTED, this Apri128, 2008. CITY OF NORTH RICHLAND HILLS, TEXAS Mayor ATTEST: City Secretary (City Seal) APPROVED AS TO I~F..GAI,ITY: City Attorney APPROVED AS TO CONTEIv'T: Director of Finance 80172987. I ~ 10801035 S- ] EXHIBIT A PAYING AGENT/REGIS'TRAR AGREEMENT ga~ngg~.~/~o~oia3s A-] EXHIBIT B DESCRIPTION OF ANNUAL FINANCIAL INFORMATION The following information is referred to in Section 37 of this Ordinance. Annual Financial Statements and Operating Data The financial information and operating data with respect to the City to be provided annually in accordance with such Section are as specified (and included in the Appendix or under the headings of the Official Statement referred to) below: 1. The financial statements of the City appended to the Official Statement as Appendix B, but for the most receatly concluded fiscal year. 2. The information contained in Tables 1 through G and 8 through 15 in the Official Statement Accounting Principles The accounting principles referred to in such Section are the generally accepted accounting principles as applicable to governmental unit.5 as prescribed by The Government Accounting Standards Board. so~n~sz. ~/toso~o3s B- l PAYING AGENT/REGISTRAR AGREEMENT TI-IIS AGREEMENT entered into as of April 28, 2008 (this "Agreement', by and between the City of North Richland Hills, Texas (the "Issuer"), and The Bank of New York Trust Company, N.A., a banking corporation organized and existing under the laws of the United States of America (the "Bank"), RECITALS WHEREAS, the Issuer has duly authorized and provided for the execution and delivery of its "City of North Richland Hills, Texas, Tax and Waterworks and Sewer System (Limited Pledge) Revenue Certificates of Obligation, Series 2008" (the "Securities"), April 15, 2008, such Securities scheduled to be delivered to the initial purchasers thereof on or about June 4, 2008; and WHEREAS, the Issuer has selected the Bank to serve as Paying Agent/Registrar in connection with the payment of the principal of, premium, if any, and interest on said Securities and with respect to the registration, transfer and exchange thereof by the registered owners thereof; and WHEREAS, the Bank has agreed to serve in such capacities for and on behalf of the Issuer and has full power and authority to perform and serve as Paying Agent/Registrar for the Securities; NOW, THEREFORE, it is mutually agreed as follows: ARTICLE ONE APPOINTMENT OF BANK AS PAYING AGENT AND REGISTRAR Section 1.01 Appointment. The Issuer hereby appoints the Bank to serve as Paying Agent with respect to the Securities, and, as Paying Agent for the Securities, the $ank shall be responsible for paying on behalf of the Issuer the principal, premium (if any), and interest on the Securities as the same become due and payable to the registered owners thereof; all in accordance with this Agreement and the "Bond Resolution" (hereinafter defined). The Issuer hereby appoints the Bank as Registrar with respect to the Securities and, as Registrar for the Securities, the Bank shall keep and maintain for and on behalf of the Issuer books and records as to the ownership of said Securities and with respect to the transfer and exchange thereof as provided herein and in the "Bond Resolution". The Bank hereby accepts its appointment, and agrees to serve as the Paying Agent and Registrar for the Securities. Section 1.02 Compensation. As compensation for the Bank's services as Paying Agent/Registrar, the Issuer hereby agrees to pay the Bank the fees and amounts set forth in Annex A attached hereto. SU182783.1l1Q801Q3S In addition, the Issuer agrees to reimburse the Bank upon its request for all reasonable expenses, disbursements and advances incurred or made by the Bank in accordance with any of the provisions hereof (including the reasonable compensation and the expenses and disbursements of its agents and counsel). ARTICLE TWO DEFINITIONS Section 2.01 Definitions. For all purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires: "Acceleration Date" on any Security means the date on and after which the principal or any or all installments of interest, or both, are due and payable on any Security which has become accelerated pursuant to the terms of the Security. "Bank Office" means the designated office of the Bank in Dallas, Texas at the address shown in Section 3,U1 hereof. The Bank will notify the Issuer in writing of any change in location of the Bank Office. "Bond Resolution" means the resolution, order, or ordinance of the governing body of the Issuer pursuant to which the Securities are issued, certified by the Secretary or any other officer of the Issuer and delivered to the Bank. "Fiscal Year" means the fiscal year of the Issuer, ending September 30th. "Holder" and "Security Holder" each means the Person in whose name a Security is registered in the Security Register. "Issuer Request" and "Issuer Order" means a written request or order signed in the name of the Issuer by the Mayor, City Secretary, City Manager, Assistant City Manager, or Director of Finance, any one or more of said officials, and delivered to the Bank. "Legal Holiday" means a day on which the Bank is required or authorized to be closed. "Person" means any individual, corporation, partnership, joint venture, association, joint stock company, trust, unincorporated organization or government or any agency or political subdivision of a government. "Predecessor Securities" of any particular Security means every previous Security evidencing all or a portion of the same obligation as that evidenced by such particular Security (and, for the purposes of this definition, any mutilated, lost, destroyed, or stolen Security for which a replacement Security has been registered and delivered in lieu thereof pursuant to Section 4.06 hereof and the Bond Resolution). 80182783.1!10801035 "Redemption Date", when used with respect to any Security to be redeemed, means the date fixed for such redemption pursuant to the terms of the Bond Resolution. "Responsible OfTicer", when used with respect to the Bank, means the Chairman or Vice-Chairman of the Board of Directors, the Chairman or Vice-Chairman of the Executive Committee of the Board of Directors, the President, any Vice President, the Secretary, any Assistant Secretary, the Treasurer, any Assistant Treasurer, the Cashier, any Assistant Cashier, any 'T'rust Officer or Assistant Trust Officer, or any other officer of the Bank customarily performing functions similar to those performed by any of the above designated officers and also means, with respect to a particular corporate trust matter, any other afEcer to whom such matter is referred because of his knowledge of and familiarity with the particular subject. "Security Register" means a register maintained by the Bank on behalf of the Issuer providing for the registration and transfers of Securities. "Stated Maturity" means the date specified in the Bond Resolution the principal of a Security is scheduled to be due and payable. Section 2.02 Other Definitions. The terms "Bank," "Issuer," and "Securities (Security}" have the meanings assigned to them in the recital paragraphs of this Agreement. The term "Paying AgentlRegistrar" refers to the Bank in the performance of the duties and functions of this Agreement. ARTICLE THREE PAYING AGENT Section 3.01 Duties of Paying Agent. As Paying Agent, the Bank shall, provided adequate collected funds have been provided to it for such purpose by or on behalf of the Issuer, pay on behalf of the Issuer the principal of each Security at its Stated Maturity, Redemption Date, or Acceleration Date, to the Holder upon surrender of the Security to the Bank at the following address: P. O. Box 2320, Dallas, Texas 75221-2320 or 2001 Bryan Street, 9`~ Floor, Dallas, Texas 75201, Attention: Operations. As Paying Agent, the Bank shall, provided adequate collected funds have been provided to it for such purpose by or on behalf of the Issuer, pay on behalf of the Issuer the interest on each Security when duc, by computing the amount of interest to be paid each Holder and making payment thereof to the Holders of the Securities {or their Predecessor Securities) on the Record Date (as defined in the Bond Resolution). All payments of principal and/or interest on the Securities to the registered owners shall be accomplished (1) by the issuance of checks, payable to the registered owners, drawn on the paying agent account provided in Section S.OS hereof, sent by United States mail, first class, postage prepaid, to the address appearing on the Security Register or (2) by such other method, acceptable to the Bank, requested in writing by the Holder at the Holder's risk and expense. 80182783.1110801035 Section 3.02 PaYmen# Dates. The Issuer hereby instructs the Bank to pay the principal of and interest on the Securities at the dates specified in the Bond Resolution. ARTICLE FOUR REGISTRAR Section 4.01 Security Register -Transfers and Exchanges. The Bank agrees to keep and maintain for and on behalf of the Issuer at the Bank Office books and records (herein sometimes referred to as the "Security Register's for recording the names and addresses of the Holders of the Securities, the transfer, exchange and replacement of the Securities and the payment of the principal of and interest on the Securities to the Holders and containing such other information as may be reasonably required by the Issuer and subject to such reasonable regulations as the Issuer and the Bank may prescribe. All transfers, exchanges and replacement of Securities shall be noted in the Security Register. Every Security surrendered for transfer or exchange shall be duly endorsed or be accompanied by a written instrument of transfer, the signature on which has been guaranteed by an officer of a federal or state bank or a member of the National Association of Securities Dealers, in form satisfactory to the Bank, duly executed by the Holder thereof or his agent duly authorized in writing.. The Bank may request any supporting documentation it feels necessary to ef~'ect a re-registration, transfer or exchange of the Securities. To the extent possible and under reasonable circumstances, the Bank agrees that, in relation to an exchange or transfer of Securities, the exchange or transfer by the Holders therevf will be completed and new Securities delivered to the Holder or the assignee of the Holder in not more than three (3) business days after the receipt of the Securities to be cancelled in an exchange or transfer and the written instrument of transfer or request for exchange duly executed by the Holder, or his duly authorized agent, in form and manner satisfactory to the Paying AgentlRegistrar. Section 4.02 Certificates. The Issuer shall provide an adequate inventory of printed Securities to facilitate transfers or exchanges thereof. The Bank covenants that the inventory of printed Securities will be kept in safekeeping pending their use and reasonable care will be exercised by the Bank in maintaining such Securities in safekeeping, which shall be not less than the care maintained by the Bank for debt securities of other governments or corporations for which it serves as registrar, or that is maintained for its own securities. Section 4.03 Form of Security Register. The Bank, as Registrar, will maintain the Security Register relating to the registration, payment, transfer and exchange of the Securities in accordance with the Bank's general practices and procedures in effect from time to time. The Bank shall not be obligated to maintain such Security Register in any form other than those which the Bank has currently available and currently utilizes at the time. The Security Register may be maintained in written form or in any other form capable of being converted into written farm within a reasonable time. 80182783.1/10801035 4 Section 4.04 List of Security Holders. The Bank will provide the Issuer at any time requested by the Issuer, upon payment of the required fee, a copy of the information contained in the Security Register. The Issuer may also inspect the information contained in the Security Register at any time the Bank is customarily open for business, provided that reasonable time is allowed the Bank to provide an up-to-date listing or to convert the information into written form. The Bank will not release or disclose the contents of the Security Register to any person other than to, or at the written request of, an authorized officer or employee of the Issuer, except upon receipt of a court order or as otherwise required by law. Upon receipt of a court order and prior to the release or disclosure of the contents of the Security Register, the Bank will notify the Issuer so that the Issuer may contest the court order or such release or disclosure of the contents of the Security Register. Section 4.05 Return of Cancelled Certificates. The Bank will, at such reasonable intervals as it determines, surrender to the Issuer, Securities in lieu of which or in exchange for which other Securities have been issued, or which have been paid. Section 4.06 Mutilated, Destroyed,, L,o~t or Stolen Securities. The Issuer hereby instructs the Bank, sub}ect to the provisions of the Bond Resolution, to deliver and issue Securities in exchange for or in lieu of mutilated, destroyed, lost, ar stolen Securities as long as the same does not result in an overissuance. In case any Security shall be mutilated, ar destroyed, lost or stolen, the Bank may execute and deliver a replacement Security of like form and tenor, and in the same denomination and bearing a number not contemporaneously outstanding, in exchange and substitution for such mutilated Security, or in lieu of and in substitution for such destroyed lost or stolen Security, only upon the approval of the Issuer and after (i) the filing by the Holder thereof with the Bank of evidence satisfactory to the Bank of the destruction, loss or theft of such Security, and of the authenticity of the ownership thereof and (ii) the furnishing to the Bank of indemnification in an amount satisfactory to hold the Issuer and the Bank harmless. All expenses and charges associated with such indemnity and with the preparation, execution and delivery of a replacement Security shall be borne by the Holder of the Security mutilated, or destroyed, lost or stolen. Section 4.07 Transaction Information. to Issuer. The Bank will, within a reasonable time after receipt of written request from the Issuer, furnish the Issuer information as to the Securities it has paid pursuant to Section 3.01, Securities it has delivered upon the transfer or exchange of any Securities pursuant to Section 4.01, and Securities it has delivered in exchange for or in lieu of mutilated, destroyed, lost, or stolen Securities pursuant to Section 4.06. ARTICLE FIVE THE BAN K Section 5.01 Duties of Bank. The Bank undertakes to perform the duties set forth herein and agrees to use reasonable care in the performance thereof. 80182783.1110801035 Section 5.02 Reliance on Documents. Etc. (a) The Bank may conclusively rely, as to the truth of the statements and correctness of the opinions expressed therein, on certificates or opinions furnished to the Bank. (a) The Bank shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it shall be proved that the Bank was negligent in ascertaining the pertinent facts. (b) No provisions of this Agreement shall require the Bank to expend or risk its own funds or otherwise incur any financial liability fox performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity satisfactory to it against such risks or liability is not assured to it. (c} The Bank may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, security or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties. Without limiting the generality of the foregoing statement, the Bank need not examine the ownership of any Securities, but is protected. in acting upon receipt of Securities containing an endorsement or instruction of transfer or power of transfer which appears on its face to be signed by the Holder or an agent of the Holder. The Bank shall not be bound to make any investigation into the facts or matters stated in a resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, security or other paper or document supplied by the Issuer. (d) The Bank may consult with counsel, and the written advice of such counsel or any opinion of counsel shall be full and complete authorization and protection with respect to any action taken, su.fi'ered, or omitted by it hereunder in good faith and in reliance thereon. (e) The Bank may exercise any of the powers hereunder and perform any duties hereunder either directly or by or through agents or attorneys of the Bank. Section 5.03 Recitals of Issuer. The recitals contained herein with respect to the Issuer and in the Securities shall be taken as the statements of the Issuer, and the Bank assumes na responsibility far their correctness. The Bank shall in no event be liable to the Issuer, any Holder or Holders of any Security, or any other Person for any amount due on any Security from its own funds. Section 5.04 Mav Hold Securities. The Bank, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise deal with the Issuer with the same rights it would have if it were not the Paying AgentlRegistrar, or any other agent. Section 5.05 Moneys Held by Bank -Paying Agent AccountlCollateralization. Money deposited by the Issuer with the Bank of the principal (or Redemption Price, if applicable) of or interest on any Securities shall be segregated from other funds of the Bank and the Issuer and shall be held is trust for the benefit of the Holders of such Securities. 80182783.1/10801035 f1 All money deposited with the Bank hereunder shall be secured in the manner and to the fullest extent required by law for the security of funds of the Issuer. Amounts held by the Bank which represent principal of and interest on the Securities remaining unclaimed by the owner after the expiration of three years from the date such amounts have become due and payable shall be reported and disposed of by the Bank in accordance with the provisions of Texas law including, to the extent applicable, Title 6 of the Texas Property Code, as amended. The Bank shall have no liability by virtue of actions taken in compliance with this provision. The Bank is not obligated to pay interest on any money received by it hereunder. This Agreement relates solely to money deposited far the purposes described herein, and the parties agree that the Bank may serve as depository for other funds of the Issuer, act as trustee under indentwes authorizing other bond transactions of the Issuer, or act in any other capacity not in conflict with its duties hereunder. Section S.O6 Indemnification. To the extent permitted by law, the Issuer agrees to indemnify the Bank for, and hold it harmless against, any loss, liability, or expense incurred without negligence or bad faith on its part, arising out of or in connection with its acceptance or administration of its duties hereunder, including the cost and expense against any claim or liability in connection with the exercise or performance of any of its powers or duties under this Agreement. Section 5.07 Interpleader. The Issuer and the Bank agree that the Bank may seek adjudication of any adverse claim, demand, or controversy over its person as well as fiands on deposit, in either a Federal or State District Court located in the State and County where the administrative offices of the Issuer is located, and agree that service of process by certified or registered mail, return receipt requested, to the address referred to in Section 6.03 of this Agreement shall constitute adequate service. The Issuer and the Bank further agree that the Bank has the right to file a Bili of Interpleader in any court of competent jurisdiction in the State of Texas to determine the rights of any Person claiming any interest herein. Section S.O8 DT Services. It is hereby represented and warranted that, in the event the Securities are otherwise qualified and accepted for "Depository Trust Company" services or equivalent depository trust services by other organizations, the Bank has the capability and, to the extent within its control, will comply with the "Operational Arrangements", which establishes requirements for securities to be eligible for such type depository trust services, including, but not limited to, requirements for the timeliness of payments and funds availability, transfer turnaround time, and notification of redemptions and calls. ARTICLE SIX MISCELLANEOUS PROVISIONS Section 6.01 Amendment. This Agreement may be amended only by an agreement in writing signed by both of the parties hereto. ao~ea7ss.~nosotoss Section 6.02 Assignment. This Agreement may not be assigned by either party without the prior written consent of the other. Section 6.03 Notices. Any request, demand, authorization, direction, notice, consent, waiver, or other document provided or permitted hereby to be given or furnished to the Issuer or the Bank shall be mailed or delivered to the Issuer or the Bank, respectively, at the addresses shown on page 9. Section 6.04 Effect of I-Ieadings. The Article and Section headings heroin are for convenience of reference only and shall not affect the construction hereof. Section b.05 Successors and Assigns. All covenants and agreements herein by the Issuer shall bind its successors and assigns, whether so expressed or not. Section 6.06 Severability. In case any provision herein shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. Section b.07 Benefits of Agreement. Nothing herein, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder, any benefit or any legal or equitable right, remedy or claim hereunder. Section 6.08 Entire Agreement. This Agreement and the Bond Resolution constitute the entire agreement between the parties hereto relative to the Bank acting as Paying Agent/Registrar and if any conflict exists between this Agreement and the Bond Resolution, the Bond Resolution shall govern, Section 6.09 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which shall constitute one and the same Agreement. Section 6.10 Termination. This Agreement will terminate (i) on the date of final payment of the principal of and interest on the Securities to the Holders thereof or (ii) may be earlier terminated by either party upon sixty (60) days written notice; provided, however, an early termination of this Agreement by either party shall not be effective until (a) a successor Paying Agent/Registrar has been appointed by the Issuer and such appointment accepted and (b) notice given to the Holders of the Securities of the appointment of a successor Paying Agent/Registrar. Furthermore, the Bank and the Issuer mutually agree that the effective date of an early termination of this Agreement shall not occur at any time which would disrupt, delay or otherwise adversely affect the payment of the Securities. Upon an early termination of this Agreement, the Bank agrees to promptly transfer and deliver the Security Register (or a copy thereof), together with other pertinent books and records relating to the Securities, to the successor Paying AgentlRegistrar designated and appointed by the Issuer. The provisions of Section 1.02 and of Article Five shall survive and remain in full force and effect following the termination of this Agreement. 80182783.1/10801435 8 Section 6.11 Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of Texas. TN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. THE BANK OF NEW YORK TRUST COMPANY, N.A. Attest: Title: Attest: City Secretary BY: Title: Address: 2001 Bryan Street, 8''' Floor llallas, Texas 75201 CITY OF NORTH RICHLAND HILLS, TEXAS BY: Mayor Address: P. O. Box 820609 North Richland Hills, Texas 76182-0609 80182783.1 H 0801035 CITY OF NORTH R/CHLAND HILLS Department: Police Presented by: Jimmy Perdue Council Meeting Date: 4-28-2008 Agenda No. F.3 Subject: GN 2008-030 Ordinance prohibiting parking motor vehicles with keys in ignition -Ordinance No. 2991 The North Richland Hills Police Department desires to reduce the number of vehicle thefts in the City where vehicles are left running and unattended. The Texas Transportation Code Section 545.404 prohibits the operator of a motor vehicle from leaving the vehicle unattended without stopping the engine, locking the ignition, and removing the key from the ignition. However, at least one Texas court, in Williamson v. Wayne Atrand Pontiac-GMC, Inc., 658 S.W.2d 263 (Tex. App. -Corpus Christi, 1983, writ refd n.r.e.), has held that former Article 6701d (now Texas Transportation Code Section 545.404), applies only to vehicles parked on public highways and streets. The Cities of Arlington, Hurst, Haltom City, Dallas, and Tyler have also interpreted Texas Transportation Code Section 545.404 in a similar manner. The North Richland Hills Police Department has examined this issue, and recommends the adoption of an ordinance to help prevent auto thefts from private property (excluding private residences), and off-street public and private parking areas. Such an ordinance is needed to address the loophole in Texas Transportation Code Section 545.404, as well as supplement the efforts of our Officers to deter prime targets of opportunity for criminal activity by auto thieves. Chapter 54 of the North Richland Hills Code of Ordinances would be amended by adding a new Section 54-179. Recommendation: To approve Ordinance No. 2991 t ~_1_ ~1~ ORDINANCE NO. 2991 AN ORDINANCE AMENDING CHAPTER 54 OF THE NORTH RICHLAND HILLS CODE OF ORDINANCES BY ADDING A NEW SECTION 54-179 PROHIBITING THE PARKING OF A MOTOR VEHICLE WITH KEYS REMAINING IN THE IGNITION; PROVIDING EXCEPTIONS; ESTABLISHING A PENALTY; PROVIDING A SEVERABILITY AND SAVINGS CLAUSE; AND PROVIDING FOR PUBLICATION. WHEREAS, the theft of motor vehicles is a significant and in many cases a preventable crime which could be reduced by simple precautions; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: Section 1: THAT Chapter 54 of the North Richland Hills Code of Ordinances be amended by adding a new Section 54-179 which shall read as follows: "Sec. 54-179. Parking motor vehicles with keys in ignition prohibited; exceptions. (a) It is unlawful for any person to park and leave any motor vehicle unattended on any public or private street or on any private or public property used for parking and accessible to the public with the engine running or the keys in the ignition. (b) This section shall not apply to vehicles parked in a private single family residential driveway nor to unattended vehicles with keys in the ignition rendered un-drivable by an anti-theft device." Section 2: Any person, firm or corporation who violates, disobeys, omits, neglects or refuses to comply with or who resists the enforcement of any of the provisions of this ordinance shall be fined not more than Two Hundred Dollars ($200.00) for each offense. Section 3: 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 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 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 or section. Section 4: All rights and remedies of the City of North Richland Hills are expressly saved as to any and all violations of the provisions of any ordinances affecting health and safety which have accrued at the time of the effective date of this ordinance; and, as to such accrued violations and all pending litigation, both civil and criminal, whether pending in court or not, under such ordinances, same shall not be affected by this ordinance, but may be prosecuted until final disposition by the courts. Section 5: The City Secretary is authorized and directed to cause publication of the descriptive caption and penalty clauses as an alternative method provided by law. AND IT IS SO ORDAINED. PASSED AND APPROVED and approved this 28th day of April, 2008. CITY OF NORTH RICHLAND HILLS By: Oscar Trevino, Mayor ATTEST: Patricia Hutson, City Secretary APPROVED AS TO FORM AND LEGALITY: George A. Staples, City Attorney APPROVED AS TO CONTENT: Jimmy Perdue, Police Chief CITY OF NORTH R/CHLAND HILLS Department: Police Presented by: Jimmy Perdue Council Meeting Date: 4-28-2008 Agenda No. F.4 Subject: GN 2008-034 Selective Traffic Enforcement Program 2009 Comprehensive Grant -Resolution No. 2008-026 The Texas Department of Transportation (TxDOT) provides grant programs to support the mission of the Selective Traffic Enforcement Program (STEP) which is to reduce the number and severity of vehicular crashes throughout the state. Under the STEP 2009 Comprehensive Program, grant funds provide increased enforcement for speed compliance and increased DWI enforcement during fiscal years 2009, 2010 and 2011. The North Richland Hills Police Department has received notification from TxDOT that grant funds have been allocated under the STEP 2009 Comprehensive Program to reimburse for overtime hours incurred while conducting enforcement. Participation in this grant will allow the Police Department to target two violations of the law that unquestionably cause our citizens injury and property damage. To receive the grant funds, the City of North Richland Hills is required to enter into a grant agreement with TxDOT. The City of North Richland Hills agrees to fund overtime for 1,846 projected additional man-hours targeting speed compliance and impaired drivers throughout this period. Based on the projected 1,846 additional man-hours for enforcement, this provides a target of 1,338 additional speed citations issued and 233 additional arrests made for DWI during this multi-year period. The Police Department will seek reimbursement from TxDOT at the conclusion of each month for overtime and mileage costs incurred each month. The maximum amount of the grant is $290,378.63. The City's matching amount will primarily be in-kind and cover overall administrative costs for the program, vehicle costs, etc. The Grant becomes effective on the date of final signature of both parties and ends on September 30, 2012, unless terminated or otherwise modified. The attached resolution will authorize application for the grant and appoint the City Manager as the agent to act for the City relative to the grant. Recommendation: To approve Resolution No. 2008-026 NRH RESOLUTION NO. 2008-026 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS: WHEREAS, The City of North Richland Hills, Texas possesses legal authority to apply for the STEP 2009 Comprehensive Program Grant and make appointments for the conduct of business relative to the Grant; and WHEREAS, The City Council of North Richland Hills finds it in the best interest of the citizens of North Richland Hills to provide for increased enforcement for speed compliance and additional enforcement hours targeting impaired drivers during the fiscal years 2009, 2010, and 2011. WHEREAS, The City Council of North Richland Hills finds that these two violations of the law unquestionably cause our citizens injury and property damage. WHEREAS, The City Council of North Richland Hills agrees to fund overtime hours to provide for this additional enforcement during fiscal years 2009-2011, in anticipation of reimbursement from the Texas Department of Transportation as set forth in the Grant Agreement. WHEREAS, The City Council of North Richland Hills designates City Manager Larry Cunningham as the grantee's authorized official. The authorized official is given the power to apply for, accept, reject, alter or terminate the grant on behalf of the applicant agency. NOW THEREFORE BE IT RESOLVED, that the City Council of North Richland Hills approves submission of the grant for the STEP 2009 Comprehensive Program. PASSED AND APPROVED this the 28th day of April, 2008. CITY OF NORTH RICHLAND HILLS By: Oscar Trevino, Mayor ATTEST: Patricia Hutson, City Secretary APPROVED AS TO FORM AND LEGALITY: George A. Staples, City Attorney APPROVED AS TO CONTENT: Jimmy Perdue, Chief of Police City of North Richland STEP 2009 Comprehensive 2009 BUDGET SUMMARY Bud et Cata v TxDOT ldatch Total Category 2 - Labor Costs (100}Salaries $88,104.00 SO S88 104.00 (200}Frin a Benefits S11 894.51 512,360.52 2g , Cat• o = Bub-Total 99 998.51 $12,360.52 112 359.03 Category 2I - Other Direct Costs (300}Travel $0 $25 489.80 25 489.80 (400} E i ment SO (500)Su lies 490.50 4 (600}Contractual Service$ 0 (700} Other Miscellaneous S0 Cats ory II sub-Total 25 980.30 0. Total Direct Costs 99 998.51 $38,340.82 $138,339.33 Cat• ory III - Iadirset Costs (800}Indirect Cost Rate SO Summ~ary Total Labor Costa S99 998.51 $12 360.52 5112 359.03 Total Direct Costs SO S25 980.30 2 980.30 Total Zndirec~ Costs SO araad Total 998.51 8 4 .82 Fund Sources (Percent Share) 72.28 27.72 TxUOT 1 4/11/2008 a a N 0 r 0 W a • • ~! y w 0 n W > ~ ~ ~ ~ ~ ~ o ~ +' G ~ U ~ d~ ~ ~ a N w x v~.~ • +~ N +~ ,t~ u w ,~ ~+ a • w x v ,~ u • m ,~ ro '~ ~ u ~ ,, ~ ~ ~ a u ~, a ~ ~ y 0 ~D Z W Q i.t ..~ U N k .~ ~ rr k 0 B o a o o 0 c q C i o 0 Q ,~ a o c ~ e A o a o 0 ~ ~ ~ ~ ~ • ~+ A ~ a o 0 M U w ~ 1+ • N ~ 0 ~ a a e _ _ _ _ a ~ o 0 0 0~ ,~ W o 0 0 0 0 0 • • ~ _ _ _ _ _ .~ ~ o 0 o n ~ ~ v> v> ur v1 it ~ ri w ~ Q ~ a o ~ a x 0 H H N H • ~ rM it d- eM rA M ~ *„~ ~ e +f ~ ~ p ~ ~ ~ ~ ~ ~ ~ r-i ,i r N M O ~ ~ N N b y H _ _ _. r.~ • ~ ` xy o ~ a o ~ i U y +d O o? rn o L '~ • o ~ ao- ~ ~ r x ' a~ ~ H ~ N r t in ~ a `i iJt N U} N a ~ ~ +~ w o• • '~ ~ ~ a ,P ~ o~ , m at> N o n m• ~ ,,~ r r r ~ o ~ ro ~ ~ - - - -- ---- ~ U o N r o tQ ~ o ~ ~ o +~ o ~ ~ ~ ~ ~ H A o o ~ ~ ++~e ~rn ~ ~ a ,4 ~ ~ ui ~ ~ ~' a o ro y• "~ ~ • w U A . '~ ~, ~ ~ 0 ~ ++ a a a ° + ~ ~' Ih 0 0 0 ~ d s ~ N N N N p~ .~ i ~ r1 N t'1 V' ~1 I ; x 0 0 N a !q ~Q* A K E+ City of North Richland 2009 TRAVEL AND PER DIEM: STEP ENFORCEMENT MILEAGE - 300 Unit # Original Life Vehicle Cost Expectancy {In Years) Maintenance Costs Fuel Costs Yearly Miles OP Cost/Mile Vehicle 1 8872 523,021.00 6 $9,268.00 SO 22520.00 S1.05 Vehicle 2 8921 $33,531.00 7 $9,628.00 $0 23787.00 51.05 Vehicle 3 8803 $17,331.00 5 $8.00.00 $600.00 6243.00 50.78 Vehicle 4 88.74 $23,021.00 7 59,628.00 SO 29921.00 50.52 Vehicle 5 8894 $31,360.00 6 $9,628.00 SO 7490.00 $2.00 Average Operational Cost of the Vehicle Per Mile ~ 51.08 Miles Total Amount Parc~snta 48 TxDOT $Q 0.00 Match $14,814.25 100.00 Total $.14,814.25 TxDOT 1 2/11/2008 City of North Richland STEP 2009 Comprehensive 2009 BUDGET SLJNIlH.ARY Bud et Categor TxDOT Match Total Category I - Labor Coats (100)Salaries $86,193.28 $0 $g{ 193.28 (200)Frin a Benefits $12 866.84 $10,862.17 2 729 OZ Catego I Sub-Total 99 060.12 $10,862.17 109 922.29 Catego II - Other Direst Casts {300)Travel $0 $16 258.48 16 258.48 {400) E i ment $0 (500)Su lies $52g,g0 {600)Contractual Services 0 (700) Other Miscellaneous $0 Category 22 Sub-Total 16 787.98 6 7 7 Total Direct Costs 99 060.12 527,650.15 $126,714.27 Category IZI - Indirect Courts {8Q0}Indirect Cost Rate $0 Summa Total Labor Costs $99,060.12 $10 862.17 $109,922.29 Total Direct Costs $0 $16 78?.98 16 787.98 Total Indirect Coats $p Grand Total 99 060.12 27 15 Fund Sources (Percent Share} 78.18 ~ 2i.82~C TxDOT 1 4111/200$ If the overrun is five (5) percent or less, the Subgrantee must provide written notification to the Department, through the TxDOT Electronic Grants Management System {eGrants) messaging system, prior to the Request for Reimbursement being approved. The notification must indicate the amount, the percent over, and the specific reason(s) for the overrun. Any overrun of more than five (S) percent of the amount eligible for reimbursement (TxDOT} in the attached Project Budget requires an amendment of this Grant Agreement. The maximum amount eligible for reimbursement shall not be increased above the Grand Total TxDOT Amount in the approved Project Budget, unless this Grant Agreement is amended, as described in Article 5 of this Agreement. For Selective Traffic Enforcement Program {STEP) grants only: In the Project Budget, Subgrantees are not allowed to use undenun funds from the TxDOT amount of {100) Salaries, Subcategories A, "Enforcement," or B, "PI&E Activities," to exceed the TxDOT amount listed in Subcategory C, "Other." Also, Subgrantees are not allowed to use underrun funds from the TxDOT amount of {100} Salaries, Subcategories A, "Enforcement," or C, "Other," to exceed the TxDOT amount listed in Subcategory B, "PI&E Activities." The TxDOT amount for Subcategory B, "PIBcE Activities," or C, "Other," can only be exceeded within the 5 percent flexibility, with underrun funds from Budget Categories II or III. C. To be eligible for reimbursement under this Agreement, a cost must be incurred in accordance with the Project Budget, within the time frame specified in the Grant Period of this Grant Agreement, attributable to work covered by this Agreement, and which has been completed in a manner satisfactory and acceptable to the Department. D. Federal or T.~cDOT funds cannot supplant (replace} funds from any other sources. The term "supplanting," refers to the use of federal or TxDOT funds to support personnel or an activity already supported by local or state funds. E. Payment of costs incurred under this Agreement is further governed by one of the following cost principles, as appropriate, outlined in the Federal Office of Management and Budget {OMB) Circulars: • A-21, Cost Principles for Educational Institutions; • A-87, Cost Principles for State, Local, and Indian Tribal Governments; or, • A-122, Cost Principles for Nonprofit Organizations. 1r. The Subgrantee agrees to submit monthly or quarterly Requests for Reimbursement, as designated in this Grant .Agreement, within shirty {30) days after the end of the billing period. The Request for Reimbursement and appropriate supporting documentation must be submitted through eGrants. G. The Subgrantee agrees to submit the final Request for Reimbursement under this Agreement within forty-five (45) days of the end of the grant period. H. Payments are contingent upon the availability of appropriated funds. I. Project agreements supported with federal or TxDOT funds are limited to the length of this Grant Period specified in this Grant Agreement. If the Department determines that the project has demonstrated merit or has potenfial Lang-range benefits, the Subgrantee may apply for funding assistance beyond the initial Agreement period. Preference for funding will be given to those projects for which the Subgrantee has assumed some cost sharing, those which propose to assume the largest percentage of subsequent project costs, and those which have demonstrated performance that is acceptable to the Department. City of North Richland STEP 2009 Comprehensive 2009 BUDGET SUMMARY -_ Bu et Catego TxDOT Match Total Category I - Labor Costa (100)Salaries 591,320.00 S5, 300.00 $96 620.00 {200) Frin a Benefits 526, 595.49 ~ ~6 599 4 Cate o I Sub-Total 91 320.00 $31,899.49 123 219.49 Catego II - Other Direct Costa (300)Travel $0 $26 957.74 26 957.74 (400)E i ment 0 {500)Su lies 513.75 3 7 {600)Contractual Services 0 (700) Other Miscellaneous SO Cate ory II Sub-Total 27 471.49 27 471 Total Direat Coats 92 320.00 $59,370.98 $150,690.98 Catego III - Indirect Costs {800)Indirect Cost Rate S0 .Summary Total Labor Costs 591,320.00 S31 $99.49 $123,215.49 Total Direct Costs $0 S27 471.49 7 7' Total Indirect Costs $0 Grand Total 9i 00 70.98 Fund Sources {Percent Share? 60.60 ~ 3g,40~ TxDOT 1 4/11/2008 Ci1:y of North Richland LAW ENFORCEMENT OBJECTIVE / PERFORMANCE MEASURE Objsctive / Parformauce Measure Target Number 1. Number and Type citations/arrests to be issued under STEP a. Increase DWI arrests by 233 b. Increase Speed citations by 1338 2. Propose Total Number of Traffic Related crashes a. Reduce the number of Alcohol-Related crashes to 12 b. Reduce the number of Speed-Related crashes to 400 3. Increase Speed Compliance a. Increase the Speed Compliance rate to 50 ~ 4. Number of Enforcement Houre 1846 STEP Indicator 3 2009 TxL~OT i 2/21/2008 ~~ O C'~ N a~ D .,~ N G s1J t~ 0 U rn 0 0 t4 G3 F ~: t4 ..i .,.i C c~ .,~ y W 0 z w .~ U 'tl 13 0 U U JJ~ 1"1 a 0 y E Q v° W 0 4) ~". H .1.i as b G ~O b .~ 4 0i •.~1 .~ U ~ ~, v} 0 ~ 3 ~ ~ mw z a C U ~,~ o ~ ~ yr U ~ C ~ ~ •~+ ID ~ U s. J +% ~ Y! tT C ~ ~ a v, ~ G 3 u ~ ~ m ~ 3 ~ .C 0 m 4i 0 '0 ,= u t3 RS 1.- ~ C t~ 0 q ri ~ G 0 -~ to '0 ~ '~0 vI ~ @.~ t ~ ~ U C is t~ ~ 4a ~~ •.~ C •n 0 ,-+ w •.i .. 0 r-t W .-i OQ N aP O 0 ~ m ~- a o ~ o 0- o ~ r, ~ U ,-i Li rtS ~ ~ ~ ~ ~ ~ ~ ~ ~ 0 ~ ~ di w ~ U 3 :. 3 0 ~ u •.-j ~ ~ ~ ~ N~ m ~ ~ ~ ~ ~ U W C ~ ~ w QY 1~ +~- ~ A ~• ~ ~ ~ 0 >-~ ~ 0 0 w A LL ~ a1 w ro ~ .-i C u rt w w ~, ~ :~ ~ tr C. iS 0 v ~ H Gi 3} C U 3 .C ~ ~. ~ m ~ .~ ~ ro v a~ ~ ~ :~ t~ ~ ~ ~ tr ~ .c Q rts w 0 !~ w ,-i t~ C u Ci .C ~ ~ 0 R 0 ~ rt1 •ri Ol ~ i. w ~ p. ~ U L da .-1 v f~ ~ N C O ~ Cr ~ ?s a3 '0 C C +~ C U L! -~ ~ ~ ~ Rf ~ tP ~ ~ .C ~ ai t~' r~~ $ '0 ~j ~ W W T' a ~b a ,~ ~ ~ y Ow 0 ~ ~ 3 ~ ~ 1J U ~1 +a '~ >+ Q ~ U} tJ ~ C C H II7 ~ ~ J4 N ~ RS ~ ~ ~ O w ~ ~ ~ ~ ~ U aC, O 4 N n r+ cr !i H 8 F a, 0 0 cv m .,~ c a~ d a 0 u rn a 0 N a w m c .~ C: u ~+ C Z W O '~ R u R b a 0 .,~ :./ 1J 0 U {1 a.~ E R .~ .,~ N '~ 0 ply A ~i W .. a 0 .~ m m v a u ~+ a a a ro m a 6 m a~ u v »~ b N v 0 A a~ A .,~ 3 U ~ O a~ W W H Q b B m rt a~ .a .., .a 3 m O U O ~, ro .L" 3 C1 u U wi '-i '~ ~'+ ~ O H (~i 0 a .. ., c ro S x Texas Traffic Safety Program GRANT AGREEMENT GENERAL TERMS AND CONDITIONS ARTICLE 1. COMPLIANCE WITH LAWS The Subgrantee shall comply with all federal, state, and local taws, statutes, codes, ordinances, rules and regulations, and the orders and decrees of any courts or administrative bodies or tribunals in any matter affecting the performance of this Agreement, including, without limitation, workers' compensation laws, minimum and maximum salary and wage statutes and regulations, nondiscrimination laws and regulations, and licensing laws and regulations. When required, the Subgrantee shall furnish the Department with satisfactory proof of its compliance therewith. ARTICLE 2. STANDARD ASSURANCES The Subgrantee hereby assures and certifies that it will comply with the regulations, policies, guidelines, and requirements, including 49 CFR (Code of Federal Regulations}, Part 18; 49 CFR, Part l9 (OMB [Office of Management and Budget] Circular A-110); OMB Circular A-87; OMB Circular A-102; OMB Circular A-2 i; OMB Circular A-122; OMB Circular A-133; and the Department's Traffic Safety Program Manual, as they relate to the application, acceptance, and use of federal or state funds for this project. Also, the Subgrantee assures and certifies that: A. It possesses legal authority to apply for the grant; and that a resolution, motion, or similar action has been duly adopted or passed as an official act of the applicant's governing body, authorizing the filing of the application, including all understandings and assurances contained therein, and directing and authorizing the person identified as the official representative of the applicant to act in connection with the application and to provide such additional information as may be required. B. tt and its subcontractors will comply with Title VI of the Civil Rights Act of 1964 (Public Law 88- 352), as amended, and in accordance with that Act, no person shall discriminate, on the grounds of race, color, sex, national origin, age, religion, or disability. C. It will comply with requirements of the provisions of the Uniform Relocation Assistance and Real Property Acquisitions Act of 1970, as amended;. 42 USC (United States Code) §§4601 et seq.; and United States Department of Transportation (USDOT} regulations, "Uniform Relocation and Real Property Acquisition for Federal and Federally Assisted Programs," 49 CFR, Part 24, which provide for fair and equitable treatrnent of persons displaced as a result of federal and federally assisted programs. D. It will comply with the provisions of the Hatch Political Activity Act, which limits the political activity of employees. {See also Article 25, Lobbying Certification.) E. It will comply with the federal Fair Labor Standards Act's minimum wage and overtime requirements for employees performing project work. F. It will establish safeguards to prohibit employees from using their positions for a purpose that is or gives the appearance of being motivated by a desire for private gain for themselves or others, particularly those with whom they have family, business, or other ties. G. It will give the Department the access to and the right to examine all records, books, papers, or documents related to this Grant Agreement. H. It will comply with all requirements imposed by the Department concerning special requirements of law, program requirements, and other administrative requirements. 1. It recognizes that many federal and state laws imposing environmental and resource conservation requirements may apply to this Grant Agreement. Some, but not alt, of the major federal laws that may affect the project include: the National Environmental Policy Act of 19b9, as amended, 42 USC §§4321 et seq.; the Clean Air Act, as amended, 42 USC §§7401 et seq. and sections of 29 USC; the Federal Water Pollution Control Act, as amended, 33 USC §§1251 et seq.; the Resource Conservation and Recovery Act, as amended, 42 USC §§6901 et seq.; and the Comprehensive Environmental Response, Compensation, and Liability Act, as amended, 42 USC §§9b01 et seq. The Subgrantee also recognizes that the U.S. Environmental Protection Agency, USDOT, and other federal agencies have issued, and in the future are expected to issue, regulation, guidelines, standards, orders, directives, or other requirements that may affect this Project. Thus, it agrees to comply, and assures the compliance of each contractor and each subcontractor, with any such federal requirements as the federal government may now or in the future promulgate. It will comply with the flood insurance purchase requirements of Section 102(a) of the Flood Disaster Protection Act of 1973, 42 USC §4012a(a). Section 102(a) requires, on and after March 2, 1975, the purchase of flood insurance in communities where such insurance is available as a condition for the receipt of any federal financial assistance for construction or acquisition purposes for use in any area that has been identified by the Secretary of the Department of Housing and Urban Development as an area having special flood hazards. The phrase "federal financial .assistance" iacludes any form of loan, grant, guaranty, insurance payment, rebate. subsidy, disaster assistance loan or grant, or any form of direct or indirect federal assistance. K. It will assist the Department in its compliance with Section t06 of the National Historic Preservation Act of 196b as amended (16 USC 470 et seq.), Executive Order 11593, and the Antiquities Code of Texas (National Resources Code, Chapter l91). L. It will comply with Chapter 573 of the Texas Government Code by ensuring that no officer, employee, or member of the Subgrantee's governing board or the Subgrantee's subcontractors shall vote or confine the employment of any person related within the second degree. of affinity or third degree by consanguinity to any member ofthe governing body or to any other officer or employee authorized to employ or supervise such person. This prohibition shall not prohibit the employment of a person described in Section 573.062 of the Texas Government Code. M. It will ensure that all information collected, assembled, or maintained by the applicant relative to this project shall. be available to the public during normal business hours in compliance with Chapter 552 of the Texas. Government Code, unless otherwise expressly provided by law. N. If applicable, it will comply with Chapter 551 of the Texas Government Code, which requires all regular, special, or called meetings of governmental bodies to be open to the public, except as otherwise provided by law or specifically permitted in the Texas Constitution. ARTICLE 3. COMPENSATION A. The method of payment for this Agreement will be based on actual costs incurred up to and not to exceed the limits specified in the Project Budget. The amount included in the Project Budget will be deemed to be an estimate only and a higher amount can be reimbursed, subject to the conditions specified in pazagraph B hereunder. If the Project Budget specifies that costs are based on a specific rate, per-unit cost, or other method of payment, reimbursement will be based on the specified method. B. All payments wilt be made in accordance with the Project Budget. The 5ubgrantee's expenditures may overrun a budget category (I, II, or III) in the approved Project Budget without a grant (budget) amendment, as long as the overrun does not exceed a total of five (5) percent per year of the maximum amount eligible for reimbursement (TxDOT) in the attached Project Budget for the current fiscal year. This overrun must be off-set by an equivalent underrun elsewhere in the Project Budget. Child Support Statement current and on file with that office for the duration of this Agreement period. The Subgrantee further certifies that the Child Support Statement on file contains the child support information for the individuals or business entities named in this grant. Under Section 231.OOb, Family Code, the Subgrantee certifies that the individual or business entity named in this Agreement is not ineligible to receive the specified grant or payment and acknowledges that this Agreement may be terminated and payment may be withheld if this certification is inaccurate. The form for the Child Support Statement is available on the Internet at: httR:/lwww.dot.~t$lg ix.us/csoldefault.htm. ARTICLE 4. LIMITATION OF LIABILITY Payment of costs incurred hereunder is contingent upon the availability of funds. If at any time during this Grant Period, the Department determines tha# there is insufficient funding to continue the project, the Department shall so notify the Subgrantee, giving notice of intent to terminate this Agreement, as specified in Article 11 of this Agreement. If at the end of a federal fiscal year, the Department determines that there is sufficient funding and performance to continue the project, the Department may so notify the Subgrantee to continue this agreement. ARTICLE 5. AMENDMENTS This Agreement may be amended prior to its expiration by mutual written consent of both parties, utilizing the Grant Agreement Amendment in eGrants. Any amendment must be executed by the parties within the Grant Period, as specified in this Grant Agreement. ARTICLE b. ADDITIONAL WORK AND CHANGES IN WORK if the Subgrantee is of the opinion that any assigned work is beyond the scope of this Agreement and constitutes additional work, the Subgrantee shall promptly notify the Department in writing through eGrants system messaging. If the Department finds that such work does constitute additional work, the Department shall so advise the Subgrantee and a written amendment to this Agreement will be executed according to Article 5, Amendments, to provide compensation for doing this work on the same basis as the original work. if performance of the additional work will cause the maximum. amount payable to be exceeded, the work will not be performed before a written grant amendment is executed. If the Subgrantee has submitted work in accordance with the terms of this Agreement but the Department requests changes to the completed work or parts thereof which involve changes to the original scope of services or character of work under this Agreement, the Subgrantee shall make such revisions as requested and directed by the Department. This will be considered as additional work and will be paid for as specified in this Article. Ifthe Subgrantee submits work that does not comply with the terms of this Agreement, the Department shall instruct the Subgrantee to make such revisions as are necessary to bring the work. into compliance with this Agreement. No additional compensation shall be paid for this work. The Subgrantee shall make revisions to the work authorized in this Agreement, which are. necessary to correct errors or omissions appearing therein, when required to do so by the Department. No additional compensation shall be paid for this work. The Department shall not be responsible for actions by the Subgrantee or any costs incurred. by the Subgrantee relating to additional work not directly associated with or prior to the execution of an amendment. ARTICLE ?. REPORTING AND MONITORING Not Later than thirty (30) days after the end of each reporting period, the Subgrantee shall submit a performance report thmugh eGrants. For short-term projects, only one report submitted by the Subgrantee at the end of the project may be required. For longer projects, the Subgrantee will submit reports at least quarterly and preferably monthly. The frequency of the performance reports is established through negotiation between the Subgrantee and the program or project manager. For Selective Traffic Enforcement Programs (STEPs), performance reports must be submitted monthly. The performance report wilt include, as a minimum: (1) a comparison of actual accomplishments to the objectives established for the period, (2) reasons why established objectives and performance measures were not met, if appropriate, and (3) other pertinent information, including, when appropriate, an analysis and explanation of cost undem-ns, overruns, or high unit costs. The Subgrantee shall submit the Final Performance Report through eGrants within thirty (3fl) days after completion of the grant. "1`he Subgrantee shall promptly advise the Department in writing,. through eGrants messaging, of events that will have a significant impact upon this Agreement, including: A. Problems, delays, or adverse conditions, including a change of project director or other changes in Subgrantee personnel, that will materially affect the ability to attain objectives and performance measures, prevent the meeting. of time schedules and objectives,. or preclude the attainment of project objectives or performance measures by the established time periods. This disclosure shall be accompanied by a statement of the action taken or contemplated and any Department or federal assistance needed to resolve the situation. B. Favorable developments or events that enable meeting time schedules and objectives sooner than anticipated or achieving greater performance measure output than originally projected. ARTICLE 8. RECURDS The Subgrantee agrees to maintain all reports, documents, papers, accounting records, books, and other evidence pertaining to costs incurred and work performed hereunder, (hereinafter called the records), and shall make such records available at its office for the time period authorized within the Grant Period, as specified in this Grant Agreement. The Subgrantee further agrees to retain said records for four (4) years from the date of final payment under this Agreement, until completion of all audits, or until pending litigation has been completely and fully resolved, whichever occurs last. Duly authorized representatives of the Department, the USDOT, the Office of the Inspector General, Texas State Auditor, and the Comptroller General shall have access to the records. This right of access is not limited to the four (4) year period but shall last as long as the records are retained. ARTICLE 9. INDEMNIFICATION To the extent permitted by taw, the Subgrantee, if other than a government entity, shall indemnify, hold, and save harmless the Department and its officers and employees from al! claims and liability due to the acts or omissions of the Subgrantee, its agents, or employees. The Subgrantee also agrees, to the extent permitted by law, to indemnify, hold, and save harmless the Department from any and alt expenses, including but not limited to attorney fees, all court costs and awards for damages incurred by the Department in litigation or otherwise resisting such claims or liabilities as a result of any activities ofthe Subgrantee, its agents, or employees, Further, to the extent permitted by law, the Subgrantee, if other than a government entity, agrees to protect, indemnify, and save harmless the Department from and against all claims, demands, and causes of action of every kind and character brought by any employee of the Subgrantee against the Department due to personal injuries or death to such employee resulting from any alleged negligent act, by either commission or omission on the part of the Subgrantee. If the Subgrantee is a government entity, both parties to this Agreement agree that no party is an agent, servant, or employee of the other party and each party agrees it is responsible for its individual acts and deeds, as well as the acts and deeds of its contractors, employees, representatives, and agents. ARTICLE 1Q. DISPUTES AND REMEDIES This Agreement supersedes any prior oral or written agreements. if a conflict arises between this Agreement and the Traffic Safety Program Manual, this Agreement shall govern, The Subgrantee shall be responsible for the settlement of all contractual and administrative issues arising out of procurement made by the Subgrantee in support of Agreement work. Disputes concerning performance or payment shall be submitted to the Department for settlement, with the Executive Director or his or her designee acting as final referee. ARTICLE 11. TERMINATION This Agreement shall remain in effect until the Subgrantee has satisfactorily completed all services and obligations described herein and these have been accepted by the Department, unless: • This Agreement is terminated in writing with the mutual consent of both parties; or • There is a written thirty {30) day notice by either party; or • The Department determines that the performance of the project is not in the best interest of the Department and informs the Subgrantee that the project is terminated immediately. The Department shall compensate the Subgrantee for only those eligible expenses incurred during the Grant Period specified in this Grant Agreement which are directly attributable to the completed portion of the work covered by this Agreement, provided that the work has been completed in a manner satisfactory and acceptable to the Department. The Subgrantee shall not incur nor be reimbursed for any new obligations after the effective date of termination. ARTICLE 12. INSPECTION OF WORK The Department and, when federal funds are involved, the US DOT, or any authorized representative thereof, have the right at all reasonable times to inspect or otherwise evaluate the work performed or being performed hereunder slid the premises in which it is being performed. If any inspection or evaluation is made on the premises of the Subgrantee or its subcontractor, the Subgrantee shall provide and require its subcontractor to provide all reasonable facilities and assistance far the safety and convenience of the inspectors in the performance of their duties. Ail inspections and evaluations shall be performed in such a manner as will not unduly delay the work. ARTICLE 13. AUDIT The Subgrantee shall comply with the requirements of the Single Audit Act of 1984, Public Law {PL) 98- 502, ensuring that the single audit report includes the coverage stipulated in OMB Circular A-133, "Audits of States, Local Governments, and Other Non-Profit Organizations." The state auditor may conduct an audit or investigation of any entity receiving funds from the state directly under this Agreement or indirectly through a subcontract under this Agreement, Acceptance of funds directly under this Agreement or indirectly through a subcontract under this Agreement sets as acceptance of the authority of the State Auditor, under the direction of the legislative audit committee, to conduct an audit or investigation in connection with those funds. An entity that is the subject of an audit or investigation must provide the state auditor with access to any informarion the state auditor considers relevant to the investigation or audit. ARTICLE 14. SUBCONTRACTS A subcontract in excess of $25,000 may not be executed by the Subgrantee without prior written concurrence by the Department. Subcontracts in excess of $25,000 shall contain all applicable. terms and conditions of this Agreement. No subcontract will relieve the Subgrantee of its responsibility under this Agreement. ARTICLE 13. GRATUITIES Texas Transportation Commission policy mandates that employees of the Department shall not accept any benefit, gift, or favor from any person doing business with or who, reasonably speaking, may do business with the Department under this Agreement. The only exceptions allowed are ordinary business lunches and items that have received the advanced written approval of the Department's Executive Director. Any person doing business with or who reasonably speaking may do business with the Department under this Agreement may not make any offer of benefits, gii3s, or favors to Department employees, except as mentioned here above. Failure on the part of the Subgrantee to adhere to this policy may result in termination of this Agreement. ARTICLE lb. IYONCOLLUSION The Subgrantee warrants that it has not employed or retained any company or person, other than a bona fide employee working solely for the Subgrantee, to solicit or secure this Agreement, and that it has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon or resulting from the award or making of this Agreement. if the Subgrantee breaches or violates this warranty, the Department shall have the right to annul this Agreement without liability or, in its discretion, to deduct from the Agreement price or consideration, or otherwise recover the full amount of such fee, commission, brokerage fee, contingent fee, or gift. ARTICLE 17. CONFLICT OF INTEREST The Subgrantee represents that it or its employees have no conflict of interest that would in any way interfere with its or its employees' performance or which in any way conflicts with the interests of the Department. The Subgrantee shall exercise reasonable care and diligence to prevent any actions or conditions that could result in a conflict with the Department's interests. ARTICLE 18. SUBGRANTEE'S RESOURCES The Subgrantee certifies that it presently has adequate qualified personnel in its employment to perform the work required under this Agreement, or will be able to obtain such personnel from sources other than the Department. All employees of the Subgrantee shall have such knowledge and experience as will enable them to perform the duties assigned to them. Any employee of the Subgrantee who, in the opinion of the Department, is incompetent or whose conduct becomes detrimental to the work, shall immediately be removed from association with the project. Unless otherwise specified,. the Subgrantee shall furnish all equipment, materials, supplies, and other resources required to perform the work, ARTICLE 19. PROCUREMENT AND PROPERTY MANAGEMENT The Subgrantee shall establish and administer a system to procure, control, protect, preserve, use, maintain, and dispose of any property furnished to it by the Department or purchased pursuant to this Agreement in accordance with its own property management procedures, provided that the procedures are not in conflict with the Department's property management procedures or property management standards and federal standazds, as appropriate, in: • 49 CFR, Part I $, "Uniform Administrative Requirements far Grants and Cooperative Agreements to State and focal Governments," or • 49 CFR, Part 19 (OMB Circular A-110), "Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Nonprofit Organizations." ARTICLE 20. OWNERSHIP OF DOCUMENTS ATID INTELLECTUAL PROPERTY Upon completion or termination of this Grant Agreement, whether for cause or at the convenience of the parties hereto, all finished or unfinished documents,. data, studies, surveys, reports, maps, drawings, models, photographs, etc. prepared by the Subgrantee, and equipment and supplies purchased with grant funds shall, at the option of the Department, become the property of the Department. All sketches,. photographs, calculations, and other data prepared under this Agreement shall be made available, upon request, to the Department without restriction or limitation of their further use. A. Intellectual property consists of copyrights, patents, and. any other form of intellectual property rights covering any data bases, software, inventions, training manuals, systems design, or other proprietary information in any form or medium. B. All rights to Department. The Department shall own alt of the rights (including copyrights, copyright. applications, copyright renewals, and copyright extensions), title and interests in and to all data, and other information developed under this contract and versions thereof unless otherwise agreed to in writing that there will be joint ownership. C. All rights to Subgrantee. Classes and materials initially developed by the Subgrantee without any type of funding or resource assistance from the Department remain the Subgrantee's intellectual property, For these classes and materials, the Department payment is limited to payment for attendance at classes. ARTICLE 21. SUCCESSORS AND ASSIGNS The Department and the Subgrantee each binds itself, its successors, executors, assigns, and administrators to the other party to this Agreement and to the successors, executors, assigns, and administrators of such other party in respect to all covenants of this Agreement. The 5ubgrantee shall not assign, sublet, or transfer interest and obligations in this Agreement without written consent of the Department through eGrants messaging. ARTICLE 22. CIVIL RIGHTS COMPLIANCE A. Compliance with regulations: The Subgrantee shall comply with the regulations relative to nondiscrimination in federally-assisted programs of the USDOT: 49 CFR, Part 21; 23 CFR, Subchapter C; and 41 CFR, Parts 60-74, as they may be amended periodically (hereinafter referred to as the Regulations). The Subgrantee agrees to comply with Executive Order 11246, entitled "Equal Employment Opportunity," as amended by Executive Order 11375 and as supplemented by the U.S. Department of Labor regulations (41 CFR, Part b0). B. Nondiscrimination: The Subgrantee, with regard to the work performed during the period of this Agreement, shall not discriminate on the grounds of race, color, sex, national origin, age, religion, or disability in the selection and retention of subcontractors, including procurements of materials and leases of equipment. C. Solicitations for subcontracts, including procurement of materials and equipment: In alt solicitations either by competitive bidding or negotiation made by the Subgrantee for work to be performed under a subcontract, including procurements of materials and leases of equipment, each potential subcontractor or supplier shall be notified by the Subgrantee of the Subgrantee's obligations under this Agreement and the reguiatians relative to nondiscrimination on the grounds of race, color, sex, national origin, age, religion, or disability. D. information and reports: The Subgrantee shall provide all information and reports required by the regulations, or directives issued pursuant thereto, and shall permit access to its books, records, accounts, other sources of information, and its facilities as may be determined by the Department or the USDOT to be pertinent to ascertain compliance with such regulations or directives. Where any information required of the Subgrantee is in the exclusive possession of another who fails or refuses to furnish this information, the Subgrantee shall so certify to the .Department or the US D4T, whichever is appropriate, and shall set forth what efforts the Subgrantee has made to obtain the requested information. E. Sanctions for noncompliance: In the event of the Subgrantee's noncompliance with the nondiscrimination provision ofthis Agreement, the Department shall impose such sanctions as it or the US DOT may determine to be appropriate. F. Incorporation of provisions: The Subgrantee shall include the provisions of paragraphs A. through E. in every subcontract, including procurements of materials and leases of equipment, unless exempt by the regulations or directives. The Subgrantee shall take such action with respect to any subcontract or procurement as the Department may direct as a means of enforcing such provisions, including sanctions for noncompliance. However, in the event a Subgrantee becomes involved in, or is threatened with litigation with a subcontractor or supplier as a result of such direction, the Subgrantee may request the Department to enter into litigation to protect the interests of the state; and in addition, the Subgrantee may request the United States to enter into such litigation to pmtect the interests of the United States. ARTICLE 23. DISADVANTAGED BUSINESS ENTERPRISE It is the policy of the Department and the USDOT that Disadvantaged Business Enterprises, as defined in 49 CFR Part 26, shall have the opportunity to participate in the performance of agreements financed in whole or in part with federal funds. Consequently, the Disadvantaged Business Enterprise requirements of 49 CFR. Part 25, apply to this Agreement as follows: • The Subgrantee agrees to insure that Disadvantaged Business Enterprises, as defined in 49 CFR Part 26, have the opportunity to participate in the performance of agreements and subcontracts financed in whole or in part with federal funds. In this regard, the Subgrantee shall make good faith efforts in accordance with 49 CFR Part 26, to insure that Disadvantaged Business Enterprises have the opportunity to compete for and perform agreements and subcontracts. • The Subgrantee and any subcontractor shall not discriminate on the basis of race, color, sex, national origin, or disability in the award and performance of agreements funded in whole or in part with federal funds. These requirements shall. be included in any subcontract. Failure to carry out the requirements set forth above shall constitute a breach ofthis Agreement and, after the notification of the Department, may result in termination ofthis Agreement by the Department, or other such remedy as the Department deems appropriate. ARTICLE 24. DEBARMENT/SUSPENSiUN A. The Subgrantee certifies, to the best of its knowledge and belief, that it and its principals: 1. Are not presently debarred, suspended, proposed for debarment, declared ineligible or voluntarily excluded from covered transactions by any federal department or agency; 2. Have not within a three (3) year period preceding this Agreement been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a federal, state, or local public transaction or contract under a public transaction; violation of federal or state antitrust statutes; or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; 3. Are not. presently indicted or otherwise criminally or civilly charged by a federal, state, or local governmental entity with commission of any of the offenses enumerated in paragraph A. 2. of this Article; and 4. Have not, within a three (3) year period preceding this Agreement, had one or more federal, state, or local public transactions terminated for cause or default. B. Where the Subgrantee is unable to certify to any of the statements in this Article, such Subgrantee shall attach an explanation to this Agreement. C, The Subgrantee is .prohibited from making any award or permitting any award at any tier to any party which is debarred or suspended or otherwise excluded from or ineligible for participation in federal assistance programs under Executive Order 12549, Debarment and Suspension. D. The Subgrantee shall require any party to a subcontract or purchase order awarded under this Grant Agreement to certify its eligibility to receive federal grant funds, and, when requested by the Department, to furnish a copy of the certification. ARTICLE 25. LOBBYING CERTIFICATION The Subgrantee certifies to the best of his or her knowledge and belief that: A. No federally appropriated funds have been paid or will be paid by or on behalf of the Subgrantee to any person for influencing or attempting to influence an officer or employee of any federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement. B. !f any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an ofl:icer or employee of any federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this federal contract, grant, loan, or cooperative agreement, the party to this Agreement shall complete and. submit Standard Farm - LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. C. The Subgrantee shalt require that the language of this certification be included in the award documents for ail subawards at at1 tiers (including subcontracts} and that all subrecipients shall certify and disclose accordingly. This certification is a material. representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 3l, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. ARTICLE 26. CHILD SUPPORT STATEMENT Unless the Subgrantee is a governmental or non-profit entity, the Subgrantee certifies that it either will go to the Department's website noted below and complete the Child Support Statement or already has a Child Support Statement on file with the Department . The Subgrantee is responsible for keeping the ~ ~~ ~AU~~j. w r ~ ~ ~ • ` i ~ 1 ~ ~~~i111 h 4 ~ ~ 5 ~ s s • . i yy • ~ T ~ •~~ ~+»~ ~ 'rrrM CURDY CRDIaIAL DiSrRICr' A'rTORNBY ei~~-i~o February 21, 2008 Mr. Joel Mallard Trai~ic Saftty Specialist P.O. Box 6868 Fort Worth, TX 76115 Dear Mr. Mallard: TARRANT C+UI:~NTY o>~~~ CRtMINAG DtS1RICTATPORNEY www.tanantda.com JUR'ttCB CSNT$1t gar M a>~r r~~voxrN, ~rx nr~aaor Tha purpose of this letter is to exprtss the support of the Tan~nt County District Attorney's Office for the City ofNorth Richland Hills contirnsed participation in the DWI STEP grant, Throughout 2007 and 2008, offrcxrs from North Richland Hills Police Dopartrnent have aggressively enforced the DWI laws in their city, grtatly contributing to safer roadways. Additionally, in 2007, the City of North Richland Hills sponsored trailing for all local agencies and I was allowed to be part ofthe training ~ fatality crash investigation, obtaining blood sarnplts from impaired drivers and blood search warrants. The training was well received by attendees. It is my understanding that the North Richland Hills Police Department will again sponsor this training, at their expense in 2008. Along with covering the natters discussed above this new training will also pr~ovidc information on the administration of Horizontal Gaze Nystagmus in DWI investigations. This office stands ready to prosecute the additional casts we expect to be generated from participation in this grant. Thank You, TIM CURRY CRIMINAL DISTRICT ATTORNEY <- _ . JY~ i ~~~~ .._- 1 ~... h~ Richard Alpert Assistant criminal District Attornty Tarrant County District Attorney's Oflicc Child Support Statement current. and on file with that office for the duration of this Agreement period. The Subgrantee further certifies that the Child Support Statement on file contains the child support information for the individuals or business entities named in this grant. Under Section 231.OQ6, Family Code, the Subgrantee certifies that the individual or business entity named in this Agreement is not ineligible to receive the specified grant or payment and acknowledges that this Agreement may be terminated and payment may be withheld if this certification is inaccurate. The form for the Child Support Statement is available on the Internet at: httA://www.dQt.state.tx.us/cs~/defauit.htm. RESPQNSIBII.ITIES GF THE SUBGRANTEE: A. Carry out all performance measures estabUshed in the grant,. including fulfilling the law enforcement objectives by implementing the Operational Plan contained in this Grant Agreement. B. Submit all required reports to the Department (TxDOT) fully completed with the most current information, and within the required times, as defined in Article 3 and Article ? of the General Terms and Conditions of this Grant Agreement. This includes reporting to the Department on progress, achievements, and problems in monthly Performance Reports and attaching necessary source documentation to support all costs claimed in Requests for Reimbursement {RFR). C. Attend Department-approved grant management training. D. Attend meetings according to the following: 1. The Department will arrange for meetings with the Subgrantee to present status of activities and to discuss problems and the schedule for the following quarter's work. 2. The project director or other appr©priate qualified persons will be available to represent the Subgrantee at meetings requested by the Department. E. Support grant enforcement efforts with public information and education (PI&E) activities. Salaries being claimed for PI&E activities must be included in the budget. F. When applicable, all newly developed PI&E materials must be submitted to the Department for written approval, through the TxDOT Electronic Grants .Management System {eGrants) system messaging, prior to final production. Refer to the Traffic Safety Program Manual regarding PI&E procedures. G. For out of state travel expenses to be reimbursable, the Subgrantee must have obtained the written approval of the Department, through eGrants system messaging, prior to the beginning ofthe trip. Grant approval does not satisfy this requirement. For Department district-managed grants, the Subgrantee must have obtained written Department district approval, through eGrants system messaging, for travel and related expenses if outside of the district boundaries. H. Maintain verification that all expenses, including wages or salaries, for which reimbursement is requested is for work exclusively related to this project. I. Ensure that this grant will in no way supplant (replace) funds from other sources. Supplanting refers to the use of federal funds to support personnel or any activity already supported by local or state funds. J. Ensure that each officerworking on the STEP project will complete an officer's daily report form. The form should include at a minimum: name, date, badge or identification number, type of grant worked, grant site number, mileage (including starting and ending mileage), hours worked, type of citation issued or arrest made, officer and supervisor signatures. TXDOT K. Ensure that no officer above the rank of Lieutenant (or equivalent title) will be reimbursed for enforcement duty, unless the Subgrantee received specific written authorization from the Department, through eGrants system messaging, prior to incurring costs. L. Subgrantee may work additional STEP enforcement hours on holidays or special events not covered under the Operational Plan. However, additional work must be approved in writing by the Department, through eGrants system messaging, prior to enforcement. Additional hours .must be reported in the Performance Report for the time period for which the additional hours were worked. M. If an officer makes aSTEP-related arrest during the shift, but does not complete the an:est before the shift. is scheduled to end, the officer can continue working under the grant to complete that arrest. N. Subgrantees with a traffic unit will utilize traffic personnel for this grant, unless such personnel are unavailable for assignment. O. Prior to conducting speed enforcement, the Subgrantee must select and survey enforcement sites that comply with existing state mandated speed limits in accordance with the Texas Transportation Code, Sections S4S.3S2 through S4S.3S6. P. Officers assigned to speed sites should be trained in the use of radar or laser speed measurement devices. Q. The Subgrantee should have a safety belt use policy. If the Subgrantee does not have a safety belt use policy in place, a policy should be implemented, and a copy maintained for verification during the- grant year. R. Officers working DWI enforcement must be trained in the National Highway Traffic Safety Administration/International Association of Chiefs of Police Standardized Field Sobriety Testing (SFST). In the case of a first year subgrantee, the officers must be trained, or scheduled to be SFST trained, by the end of the grant year. For second or subsequent year grants, all officers working DWI enforcement must be SFST trained. S. The Subgrantee should have a procedure in place far contacting and using drug recognition experts (DREs) when necessary. T. The Subgrantee is encouraged to use the DWI On-tine Reporting System available through the Buckle Up Texas Web site at www.buckleuntexas.com. TXDOT RESPONSIBILITIES OF THE DEPARTMENT: A. Monitor the Subgrantee°s compliance with the performance obligations and fiscal requirements of this Grant Agreement using appropriate and necessary monitoring and inspections, including but not Limited to: • review of periodic .reports • telephone conversations • eGrants system messaging • e-mails and letters • quarterly review meetings • physical inspection of project records and supporting documentation. B. Provide program management and technical assistance. ~. Attend appropriate .meetings. D. Reimburse the Subgrantee for all eligible costs as defined in the project budget. Requests for Reimbursement witl be processed up to the maximum amount payable as indicated in the project budget. E. Perform an administrative review of the project at the close of the grant period to: • Ascertain whether or not the project objectives were met • Review project accomplishments (performance measures completed, targets achieved) • Document any progress towards self-sufficiency • Account for any approved Program Income earned and expended • Identify exemplary performance or best practices. TXDOT CITY OF NORTH RICHLAND HILLS Department: Police Presented by: Jimmy Perdue Council Meeting Date: 4-28-2008 Agenda No. F.5 Subject: GN 2008-031 FY 2008 Click It or Ticket Mobilization Program Grant - Resolution No. 2008-024 The Texas Department of Transportation (TxDOT) provides grant programs to support the mission of the Click It or Ticket Mobilization Program (CIOT) which is to increase effective enforcement and adjudication of traffic safety-related laws to reduce fatal and serious injury crashes. Under the CIOT Enforcement, grant funds provide increased enforcement efforts for occupant restraint use in all passenger vehicles and trucks by conducting an intense occupant protection enforcement and public information and education effort during the Memorial Day Holiday period. The Grant becomes effective on May 1, 2008, or on the date of final signature of both parties, whichever is later, and ends on June 30, 2008, unless terminated or otherwise modified. The enforcement period of the grant is May 19 through June 01, 2008. The Texas Department of Transportation has notified the Police Department that grant funds have been allocated to reimburse law enforcement for overtime hours incurred by the City of North Richland Hills while conducting occupant restraint use enforcement under the FY 2008 Texas Traffic Safety Program. To receive the grant funds, the Texas Department of Transportation has required the City of North Richland Hills enter into a grant agreement with the Texas Department of Transportation. The City of North Richland Hills agrees to fund overtime for additional enforcement targeting occupant restraint use during the Memorial Day Holiday period. The Police Department will seek reimbursement at the conclusion of the grant period from the Texas Department of Transportation for overtime costs incurred during the grant period. The maximum amount of the grant is $7,823.40, and there are no matching funds required by the City. The attached resolution will authorize application for the grant and appoint the City Manager as the agent to act for the City relative to the grant. Recommendation: To approve Resolution No. 2008-024 N RH RESOLUTION NO. 2008-024 WHEREAS, The City of North Richland Hills, Texas possesses legal authority to apply for the 2008 CIOT Mobilization Program Grant and make appointments for the conduct of business relative to the Grant; and WHEREAS, The City Council of North Richland Hills finds it in the best interest of the citizens of North Richland Hills to provide for additional enforcement hours for occupant restraint use in all passenger vehicles and trucks by conducting an intense occupant protection enforcement and public information and education effort during the Memorial Day Holiday period. WHEREAS, The City Council of North Richland Hills finds that this violation of the law unquestionably causes our citizens injury and property damage. WHEREAS, The City Council of North Richland Hills agrees to fund overtime hours to provide for this additional enforcement during fiscal year 2008, in anticipation of reimbursement from the Texas Department of Transportation as set forth in the Grant Agreement. WHEREAS, The City Council of North Richland Hills designates City Manager Larry Cunningham as the grantee's authorized official. The authorized official is given the power to apply for, accept, reject, alter or terminate the grant on behalf of the applicant agency. NOW THEREFORE BE IT RESOLOVED, that the City Council of North Richland Hills approves submission of the grant for the 2008 CIOT Mobilization program. PASSED AND APPROVED this 28th day of April, 2008. CITY OF NORTH RICHLAND HILLS By: Oscar Trevino, Mayor ATTEST: Patricia Hutson, City Secretary APPROVED AS TO FORM AND LEGALITY: George A. Staples, City Attorney APPROVED AS TO CONTENT: Jimmy Perdue, Police Chief Texas Traffic Safety Program GRANT AGREEMENT GENERAL TERMS AND CONDITIONS ARTICLE 1. COMPLIANCE WITH LAWS The Subgrantee shall comply with all federal, state, and local laws, statutes, codes, ordinances, rules and regulations, and the orders and decrees of any courts or administrative bodies or tribunals in any matter affecting the performance of this Agreement, including, without limitation, workers' compensation laws, minimum and maximum salary and wage statutes and regulations, nondiscrimination laws and regulations, and licensing laws and regulations. When required, the Subgrantee shall furnish the Department with satisfactory proof of its compliance therewith. ARTICLE 2. STANDARD ASSURANCES The Subgrantee hereby assures and certifies that it will comply with the regulations, policies, guidelines, and requirements, including 49 CFR (Code of Federal Regulations), Part 18; 49 CFR, Part 19 (OMB [Office of Management and Budget] Circular A-110); OMB Circular A-87; OMB Circular A-102; OMB Circular A-21; OMB Circular A-122; OMB Circular A-133; and the Traffic Safety Program Manual, as they relate to the application, acceptance, and use of federal or state funds for this project. Also, the Subgrantee assures and certifies that: A. It possesses legal authority to apply for the grant; and that a resolution, motion, or similar action has been duly adopted or passed as an official act of the applicant's governing body, authorizing the filing of the application, including all understandings and assurances contained therein, and directing and authorizing the person identified as the official representative of the applicant to act in connection with the application and to provide such additional information as may be required. B. It and its subcontractors will comply with Title VI of the Civil Rights Act of 1964 (Public Law 88-352), as amended, and in accordance with that Act, no person shall discriminate, on the grounds of race, color, sex, national origin, age, religion, or disability. C. It will comply with requirements of the provisions of the Uniform Relocation Assistance and Real Property Acquisitions Act of 1970, as amended; 42 USC (United States Code) §§4601 et seq.; and United States Department of Transportation (USDOT) regulations, "Uniform Relocation and Real Property Acquisition for Federal and Federally Assisted Programs," 49 CFR, Part 24, which provide for fair and equitable treatment of persons displaced as a result of federal and federally assisted programs. D. It will comply with the provisions of the Hatch Political Activity Act, which limits the political activity of employees. (See also Article 25, Lobbying Certification.) E. It will comply with the federal Fair Labor Standards Act's minimum wage and overtime requirements for employees performing project work. F. It will establish safeguards to prohibit employees from using their positions for a purpose that is or gives the appearance of being motivated by a desire for private gain for themselves or others, particularly those with whom they have family, business, or other ties. G. It will give the Department the access to and the right to examine all records, books, papers, or documents related to this Grant Agreement. H. It will comply with all requirements imposed by the Department concerning special requirements of law, program requirements, and other administrative requirements. I. It recognizes that many federal and state laws imposing environmental and resource conservation requirements may apply to this Grant Agreement. Some, but not all, of the major federal laws that may affect the project include: the National Environmental Policy Act of 1969, as amended, 42 USC §§4321 et seq.; the Clean Air Act, as amended, 42 USC §§7401 et seq. and sections of 29 USC; the Federal Water Pollution Control Act, as amended, 33 USC §§1251 et seq.; the Resource Conservation and Recovery Act, as amended, 42 USC §§6901 et seq.; and the Comprehensive Environmental Response, Compensation, and Liability Act, as amended, 42 USC §§9601 et seq. The Subgrantee also recognizes that the U.S. Environmental Protection Agency, USDOT, and other federal agencies have issued, and in the future are expected to issue, regulation, guidelines, standards, orders, directives, or other requirements that may affect this Project. Thus, it agrees to comply, and assures the compliance of each contractor and each subcontractor, with any such federal requirements as the federal government may now or in the future promulgate. J. It will comply with the flood insurance purchase requirements of Section 102(a) of the Flood Disaster Protection Act of 1973, 42 USC §4012a(a). Section 102(a) requires, on and after March 2, 1975, the purchase of flood insurance in communities where such insurance is available as a condition for the receipt of any federal financial assistance for construction or acquisition purposes for use in any area that has been identified by the Secretary of the Department of Housing and Urban Development as an area having special flood hazards. The phrase "federal financial assistance" includes any form of loan, grant, guaranty, insurance payment, rebate, subsidy, disaster assistance loan or grant, or any form of direct or indirect federal assistance. K. It will assist the Department in its compliance with Section 106 of the National Historic Preservation Act of 1966 as amended (16 USC 470 et seq.), Executive Order 11593, and the Antiquities Code of Texas (National Resources Code, Chapter 191). L. It will comply with Chapter 573 of the Texas Government Code by ensuring that no officer, employee, or member of the Subgrantee's governing board or the Subgrantee's subcontractors shall vote or confirm the employment of any person related within the second degree of affinity or third degree by consanguinity to any member of the governing body or to any other officer or employee authorized to employ or supervise such person. This prohibition shall not prohibit the employment of a person described in Section 573.062 of the Texas Government Code. M. It will ensure that all information collected, assembled, or maintained by the applicant relative to this project shall be available to the public during normal business hours in compliance with Chapter 552 of the Texas Government Code, unless otherwise expressly provided by law. N. If applicable, it will comply with Chapter 551 of the Texas Government Code, which requires all regular, special, or called meetings of governmental bodies to be open to the public, except as otherwise provided by law or specifically permitted in the Texas Constitution. ARTICLE 3. COMPENSATION A. The method of payment for this Agreement will be based on actual costs incurred up to and not to exceed the limits specified in the Project Budget. The amount included in the Project Budget will be deemed to be an estimate only and a higher amount can be reimbursed, subject to the conditions specified in paragraph B hereunder. If the Project Budget specifies that costs are based on a specific rate, per-unit cost, or other method of payment, reimbursement will be based on the specified method. B. All payments will be made in accordance with the Project Budget. The Subgrantee's expenditures may overrun a budget category (I, II, or III) in the approved Project Budget without a grant (budget) amendment, as long as the overrun does not exceed a total of five (5) percent per year of the maximum amount eligible for reimbursement (TxDOT) in the attached Project Budget for the current fiscal year. This overrun must be off-set by an equivalent underrun elsewhere in the Project Budget. If the overrun is five (5) percent or less, the Subgrantee must provide written notification to the Department, through the TxDOT Electronic Grants Management System (eGrants) messaging system, prior to the Request for Reimbursement being approved. The notification must indicate the amount, the percent over, and the specific reason(s) for the overrun. Any overrun of more than five (5) percent of the amount eligible for reimbursement (TxDOT) in the attached Project Budget requires an amendment of this Grant Agreement. The maximum amount eligible for reimbursement shall not be increased above the Grand Total TxDOT Amount in the approved Project Budget, unless this Grant Agreement is amended, as described in Article 5 of this Agreement. For Selective Traffic Enforcement Program (STEP) grants only: In the Project Budget, Subgrantees are not allowed to use underrun funds from the TxDOT amount of (100) Salaries, Subcategories A, "Enforcement," or B, "PI&E Activities," to exceed the TxDOT amount listed in Subcategory C, "Other." Also, Subgrantees are not allowed to use underrun funds from the TxDOT amount of (100) Salaries, Subcategories A, "Enforcement," or C, "Other," to exceed the TxDOT amount listed in Subcategory B, "PI&E Activities." The TxDOT amount for Subcategory B, "PI&E Activities," or C, "Other," can only be exceeded within the 5 percent flexibility, with underrun funds from Budget Categories II or III. C. To be eligible for reimbursement under this Agreement, a cost must be incurred in accordance with the Project Budget, within the time frame specified in the Grant Period of this Grant Agreement, attributable to work covered by this Agreement, and which has been completed in a manner satisfactory and acceptable to the Department. D. Federal or TxDOT funds cannot supplant (replace) funds from any other sources. The term "supplanting, refers to the use of federal or TxDOT funds to support personnel or an activity already supported by local or state funds. E. Payment of costs incurred under this Agreement is further governed by one of the following cost principles, as appropriate, outlined in the Federal Office of Management and Budget (OMB) Circulars: • A-21, Cost Principles for Institutions of Higher Education; • A-87, Cost Principles for State, Local, and Indian Tribal Governments; or, • A-122, Cost Principles for Nonprofit Organizations. F. The Subgrantee agrees to submit monthly or quarterly Requests for Reimbursement, as designated in this Grant Agreement, within thirty (30) days after the end of the billing period. The Request for Reimbursement and appropriate supporting documentation must be submitted through eGrants. G. The Subgrantee agrees to submit the final Request for Reimbursement under this Agreement within forty-five (45) days of the end of the grant period. H. The Department will exercise good faith to make payments within thirty (30) days of receipt of properly prepared and documented Requests for Reimbursement. Payments, however, are contingent upon the availability of appropriated funds. I. Project agreements supported with federal or TxDOT funds are limited to the length of this Grant Period specified in this Grant Agreement. If the Department determines that the project has demonstrated merit or has potential long-range benefits, the Subgrantee may apply for funding assistance beyond the initial Agreement period. Preference for funding will be given to those projects for which the Subgrantee has assumed some cost sharing, those which propose to assume the largest percentage of subsequent project costs, and those which have demonstrated performance that is acceptable to the Department. ARTICLE 4. LIMITATION OF LIABILITY Payment of costs incurred hereunder is contingent upon the availability of funds. If at any time during this Grant Period, the Department determines that there is insufficient funding to continue the project, the Department shall so notify the Subgrantee, giving notice of intent to terminate this Agreement, as specified in Article 11 of this Agreement. If at the end of a federal fiscal year, the Department determines that there is sufficient funding and performance to continue the project, the Department may so notify the Subgrantee to continue this agreement. ARTICLE 5. AMENDMENTS This Agreement may be amended prior to its expiration by mutual written consent of both parties, utilizing the Grant Agreement Amendment in eGrants. Any amendment must be executed by the parties within the Grant Period, as specified in this Grant Agreement. ARTICLE 6. ADDITIONAL WORK AND CHANGES IN WORK If the Subgrantee is of the opinion that any assigned work is beyond the scope of this Agreement and constitutes additional work, the Subgrantee shall promptly notify the Department in writing through eGrants system messaging. If the Department finds that such work does constitute additional work, the Department shall so advise the Subgrantee and a written amendment to this Agreement will be executed according to Article 5, Amendments, to provide compensation for doing this work on the same basis as the original work. If performance of the additional work will cause the maximum amount payable to be exceeded, the work will not be performed before a written grant amendment is executed. If the Subgrantee has submitted work in accordance with the terms of this Agreement but the Department requests changes to the completed work or parts thereof which involve changes to the original scope of services or character of work under this Agreement, the Subgrantee shall make such revisions as requested and directed by the Department. This will be considered as additional work and will be paid for as specified in this Article. If the Subgrantee submits work that does not comply with the terms of this Agreement, the Department shall instruct the Subgrantee to make such revisions as are necessary to bring the work into compliance with this Agreement. No additional compensation shall be paid for this work. The Subgrantee shall make revisions to the work authorized in this Agreement, which are necessary to correct errors or omissions appearing therein, when required to do so by the Department. No additional compensation shall be paid for this work. The Department shall not be responsible for actions by the Subgrantee or any costs incurred by the Subgrantee relating to additional work not directly associated with or prior to the execution of an amendment. ARTICLE 7. REPORTING AND MONITORING Not later than thirty (30) days after the end of each reporting period, the Subgrantee shall submit a perrormance report through eGrants. For short-term projects, only one report submitted by the Subgrantee at the end of the project may be required. For longer projects, the Subgrantee will submit reports at least quarterly and preferably monthly. The frequency of the performance reports is established through negotiation between the Subgrantee and the program or project manager. For Selective Traffic Enforcement Programs (STEPs), performance reports must be submitted monthly. The performance report will include, as a minimum: (1) a comparison of actual accomplishments to the objectives established for the period, (2) reasons why established objectives and performance measures were not met, if appropriate, and (3) other pertinent information, including, when appropriate, an analysis and explanation of cost underruns, overruns, or high unit costs. The Subgrantee shall submit the Final Performance Report through eGrants within thirty (30) days after completion of the grant. The Subgrantee shall promptly advise the Department in writing, through eGrants messaging, of events that will have a significant impact upon this Agreement, including: A. Problems, delays, or adverse conditions, including a change of project director or other changes in Subgrantee personnel, that will materially affect the ability to attain objectives and performance measures, prevent the meeting of time schedules and objectives, or preclude the attainment of project objectives or performance measures by the established time periods. This disclosure shall be accompanied by a statement of the action taken or contemplated and any Department or federal assistance needed to resolve the situation. B. Favorable developments or events that enable meeting time schedules and objectives sooner than anticipated or achieving greater performance measure output than originally projected. ARTICLE 8. RECORDS The Subgrantee agrees to maintain all reports, documents, papers, accounting records, books, and other evidence pertaining to costs incurred and work performed hereunder, (hereinafter called the records), and shall make such records available at its office for the time period authorized within the Grant Period, as specified in this Grant Agreement. The Subgrantee further agrees to retain said records for four (4) years from the date of final payment under this Agreement, until completion of all audits, or until pending litigation has been completely and fully resolved, whichever occurs last. Duly authorized representatives of the Department, the USDOT, the Office of the Inspector General, Texas State Auditor, and the Comptroller General shall have access to the records. This right of access is not limited to the four (4) year period but shall last as long as the records are retained. ARTICLE 9. INDEMNIFICATION To the extent permitted by law, the Subgrantee, if other than a government entity, shall indemnify, hold, and save harmless the Department and its officers and employees from all claims and liability due to the acts or omissions of the Subgrantee, its agents, or employees. The Subgrantee also agrees, to the extent permitted by law, to indemnify, hold, and save harmless the Department from any and all expenses, including but not limited to attorney fees, all court costs and awards for damages incurred by the Department in litigation or otherwise resisting such claims or liabilities as a result of any activities of the Subgrantee, its agents, or employees. Further, to the extent permitted by law, the Subgrantee, if other than a government entity, agrees to protect, indemnify, and save harmless the Department from and against all claims, demands, and causes of action of every kind and character brought by any employee of the Subgrantee against the Department due to personal injuries or death to such employee resulting from any alleged negligent act, by either commission or omission on the part of the Subgrantee. If the Subgrantee is a government entity, both parties to this Agreement agree that no party is an agent, servant, or employee of the other party and each party agrees it is responsible for its individual acts and deeds, as well as the acts and deeds of its contractors, employees, representatives, and agents. ARTICLE 10. DISPUTES AND REMEDIES This Agreement supercedes any prior oral or written agreements. If a conflict arises between this Agreement and the Traffic Safety Program Manual, this Agreement shall govern. The Subgrantee shall be responsible for the settlement of all contractual and administrative issues arising out of procurement made by the Subgrantee in support of Agreement work. Disputes concerning performance or payment shall be submitted to the Department for settlement, with the Executive Director or his or her designee acting as final referee. ARTICLE 11. TERMINATION This Agreement shall remain in effect until the Subgrantee has satisfactorily completed all services and obligations described herein and these have been accepted by the Department, unless: • This Agreement is terminated in writing with the mutual consent of both parties; or • There is a written thirty (30) day notice by either party; or • The Department determines that the performance of the project is not in the best interest of the Department and informs the Subgrantee that the project is terminated immediately. The Department shall compensate the Subgrantee for only those eligible expenses incurred during the Grant Period specified in this Grant Agreement which are directly attributable to the completed portion of the work covered by this Agreement, provided that the work has been completed in a manner satisfactory and acceptable to the Department. The Subgrantee shall not incur nor be reimbursed for any new obligations after the effective date of termination. ARTICLE 12. INSPECTION OF WORK The Department and, when federal funds are involved, the US DOT, or any authorized representative thereof, have the right at all reasonable times to inspect or otherwise evaluate the work performed or being performed hereunder and the premises in which it is being performed. If any inspection or evaluation is made on the premises of the Subgrantee or its subcontractor, the Subgrantee shall provide and require its subcontractor to provide all reasonable facilities and assistance for the safety and convenience of the inspectors in the performance of their duties. All inspections and evaluations shall be performed in such a manner as will not unduly delay the work. ARTICLE 13. AUDIT The Subgrantee shall comply with the requirements of the Single Audit Act of 1984, Public Law (PL) 98-502, ensuring that the single audit report includes the coverage stipulated in OMB Circular A-133, "Audits of States, Local Governments, and Other Non-Profit Organizations." The state auditor may conduct an audit or investigation of any entity receiving funds from the state directly under this Agreement or indirectly through a subcontract under this Agreement. Acceptance of funds directly under this Agreement or indirectly through a subcontract under this Agreement acts as acceptance of the authority of the State Auditor, under the direction of the legislative audit committee, to conduct an audit or investigation in connection with those funds. ARTICLE 14. SUBCONTRACTS The Subgrantee shall not enter into any subcontract with individuals or organizations not a part of the Subgrantee's organization without prior written concurrence, through eGrants system messaging, with the subcontract by the Department. Subcontracts shall contain all required provisions of this Agreement. No subcontract will relieve the Subgrantee of its responsibility under this Agreement. ARTICLE 15. GRATUITIES Texas Transportation Commission policy mandates that employees of the Department shall not accept any benefit, gift, or favor from any person doing business with or who, reasonably speaking, may do business with the Department under this Agreement. The only exceptions allowed are ordinary business lunches and items that have received the advanced written approval of the Department's Executive Director. Any person doing business with or who reasonably speaking may do business with the Department under this Agreement may not make any offer of benefits, gifts, or favors to Department employees, except as mentioned here above. Failure on the part of the Subgrantee to adhere to this policy may result in termination of this Agreement. ARTICLE 16. NONCOLLUSION The Subgrantee warrants that it has not employed or retained any company or person, other than a bona fide employee working solely for the Subgrantee, to solicit or secure this Agreement, and that it has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon or resulting from the award or making of this Agreement. If the Subgrantee breaches or violates this warranty, the Department shall have the right to annul this Agreement without liability or, in its discretion, to deduct from the Agreement price or consideration, or otherwise recover the full amount of such fee, commission, brokerage fee, contingent fee, or gift. ARTICLE 17. CONFLICT OF INTEREST The Subgrantee represents that it or its employees have no conflict of interest that would in any way interfere with its or its employees' performance or which in any way conflicts with the interests of the Department. The Subgrantee shall exercise reasonable care and diligence to prevent any actions or conditions that could result in a conflict with the Department's interests. ARTICLE 18. SUBGRANTEE'S RESOURCES The Subgrantee certifies that it presently has adequate qualified personnel in its employment to perform the work required under this Agreement, or will be able to obtain such personnel from sources other than the Department. All employees of the Subgrantee shall have such knowledge and experience as will enable them to perform the duties assigned to them. Any employee of the Subgrantee who, in the opinion of the Department, is incompetent or whose conduct becomes detrimental to the work, shall immediately be removed from association with the project. Unless otherwise specified, the Subgrantee shall furnish all equipment, materials, supplies, and other resources required to perform the work. ARTICLE 19. PROCUREMENT AND PROPERTY MANAGEMENT The Subgrantee shall establish and administer a system to procure, control, protect, preserve, use, maintain, and dispose of any property furnished to it by the Department or purchased pursuant to this Agreement in accordance with its own property management procedures, provided that the procedures are not in conflict with the Department's property management procedures or property management standards and federal standards, as appropriate, in: • 49 CFR, Part 18, "Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments,» or • 49 CFR, Part 19 (OMB Circular A-110), "Uniform Administrative Requirements for Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Nonprofit Organizations." ARTICLE 20. OWNERSHIP OF DOCUMENTS AND INTELLECTUAL PROPERTY Upon completion or termination of this Grant Agreement, whether for cause or at the convenience of the parties hereto, all finished or unfinished documents, data, studies, surveys, reports, maps, drawings, models, photographs, etc. prepared by the Subgrantee, and equipment and supplies purchased with grant funds shall, at the option of the Department, become the property of the Department. All sketches, photographs, calculations, and other data prepared under this Agreement shall be made available, upon request, to the Department without restriction or limitation of their further use. A. Intellectual property consists of copyrights, patents, and any other form of intellectual property rights covering any data bases, software, inventions, training manuals, systems design, or other proprietary information in any form or medium. B. All rights to Department. The Department shall own all of the rights (including copyrights, copyright applications, copyright renewals, and copyright extensions), title and interests in and to all data, and other information developed under this contract and versions thereof unless otherwise agreed to in writing that there will be joint ownership. C. All rights to Subgrantee. Classes and materials initially developed by the Subgrantee without any type of funding or resource assistance from the Department remain the Subgrantee's intellectual property. For these classes and materials, the Department payment is limited to payment for attendance at classes. ARTICLE 21. SUCCESSORS AND ASSIGNS The Department and the Subgrantee each binds itself, its successors, executors, assigns, and administrators to the other party to this Agreement and to the successors, executors, assigns, and administrators of such other party in respect to all covenants of this Agreement. The Subgrantee shall not assign, sublet, or transfer interest and obligations in this Agreement without written corisent of the Department through eGrants messaging. ARTICLE 22. CIVIL RIGHTS COMPLIANCE A. Compliance with regulations: The Subgrantee shall comply with the regulations relative to nondiscrimination in federally-assisted programs of the USDOT: 49 CFR, Part 21; 23 CFR, Subchapter C; and 41 CFR, Parts 60-74, as they may be amended periodically (hereinafter referred to as the Regulations). The Subgrantee agrees to comply with Executive Order 11246, entitled "Equal Employment Opportunity," as amended by Executive Order 11375 and as supplemented by the U.S. Department of Labor regulations (41 CFR, Part 60). B. Nondiscrimination: The Subgrantee, with regard to the work performed during the period of this Agreement, shall not discriminate on the grounds of race, color, sex, national origin, age, religion, or disability in the selection and retention of subcontractors, including procurements of materials and leases of equipment. C. Solicitations for subcontracts, including procurement of materials and equipment: In all solicitations either by competitive bidding or negotiation made by the Subgrantee for work to be performed under a subcontract, including procurements of materials and leases of equipment, each potential subcontractor or supplier shall be notified by the Subgrantee of the Subgrantee's obligations under this Agreement and the regulations relative to nondiscrimination on the grounds of race, color, sex, national origin, age, religion, or disability. D. Information and reports: The Subgrantee shall provide all information and reports required by the regulations, or directives issued pursuant thereto, and shall permit access to its books, records, accounts, other sources of information, and its facilities as may be determined by the Department or the USDOT to be pertinent to ascertain compliance with such regulations or directives. Where any information required of the Subgrantee is in the exclusive possession of another who fails or refuses to furnish this information, the Subgrantee shall so certify to the Department or the US DOT, whichever is appropriate, and shall set forth what efforts the Subgrantee has made to obtain the requested information. E. Sanctions for noncompliance: In the event of the Subgrantee's noncompliance with the nondiscrimination provision of this Agreement, the Department shall impose such sanctions as it or the US DOT may determine to be appropriate. F. Incorporation of provisions: The Subgrantee shall include the provisions of paragraphs A. through E. in every subcontract, including procurements of materials and leases of equipment, unless exempt by the regulations or directives. The Subgrantee shall take such action with respect to any subcontract or procurement as the Department may direct as a means of enforcing such provisions, including sanctions for noncompliance. However, in the event a Subgrantee becomes involved in, or is threatened with litigation with a subcontractor or supplier as a result of such direction, the Subgrantee may request the Department to enter into litigation to protect the interests of the state; and in addition, the Subgrantee may request the United States to enter into such litigation to protect the interests of the United States. ARTICLE 23. DISADVANTAGED BUSINESS ENTERPRISE It is the policy of the Department and the USDOT that Disadvantaged Business Enterprises, as defined in 49 CFR Part 26, shall have the opportunity to participate in the performance of agreements financed in whole or in part with federal funds. Consequently, the Disadvantaged Business Enterprise requirements of 49 CFR Part 26, apply to this Agreement as follows: • The Subgrantee agrees to insure that Disadvantaged Business Enterprises, as defined in 49 CFR Part 26, have the opportunity to participate in the performance of agreements and subcontracts financed in whole or in part with federal funds. In this regard, the Subgrantee shall make good faith efforts in accordance with 49 CFR Part 26, to insure that Disadvantaged Business Enterprises have the opportunity to compete for and perform agreements and subcontracts. • The Subgrantee and any subcontractor shall not discriminate on the basis of race, color, sex, national origin, or disability in the award and performance of agreements funded in whole or in part with federal funds. These requirements shall be included in any subcontract. Failure to carry out the requirements set forth above shall constitute a breach of this Agreement and, after the notification of the Department, may result in termination of this Agreement by the Department, or other such remedy as the Department deems appropriate. ARTICLE 24. DEBARMENT/SUSPENSION A. The Subgrantee certifies, to the best of its knowledge and belief, that it and its principals: 1. Are not presently debarred, suspended, proposed for debarment, declared ineligible or voluntarily excluded from covered transactions by any federal department or agency; 2. Have not within a three (3) year period preceding this Agreement been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a federal, state, or local public transaction or contract under a public transaction; violation of federal or state antitrust statutes; or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; 3. Are not presently indicted or otherwise criminally or civilly charged by a federal, state, or local governmental entity with commission of any of the offenses enumerated in paragraph A. 2. of this Article; and 4. Have not, within a three (3) year period preceding this Agreement, had one or more federal, state, or local public transactions terminated for cause or default. B. Where the Subgrantee is unable to certify to any of the statements in this Article, such Subgrantee shall attach an explanation to this Agreement. C. The Subgrantee is prohibited from making any award or permitting any award at any tier to any party which is debarred or suspended or otherwise excluded from or ineligible for participation in federal assistance programs under Executive Order 12549, Debarment and Suspension. D. The Subgrantee shall require any party to a subcontract or purchase order awarded under this Grant Agreement to certify its eligibility to receive federal grant funds, and, when requested by the Department, to furnish a copy of the certification. ARTICLE 25. LOBBYING CERTIFICATION The Subgrantee certifies to the best of his or her knowledge and belief that: A. No federally appropriated funds have been paid or will be paid by or on behalf of the Subgrantee to any person for influencing or attempting to influence an officer or employee of any federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement. B. If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any federal agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this federal contract, grant, loan, or cooperative agreement, the party to this Agreement shall complete and submit Standard Form - LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. C. The Subgrantee shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts) and that all subrecipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. ARTICLE 26. CHILD SUPPORT STATEMENT Unless the Subgrantee is a governmental or non-profit entity, the Subgrantee certifies that it either will go to the Department's website noted below and complete the Child Support Statement or already has a Child Support Statement on file with the Department . The Subgrantee is responsible for keeping the Child Support Statement current and on file with that office for the duration of this Agreement period. The Subgrantee further certifies that the Child Support Statement on file contains the child support information for the individuals or business entities named in this grant. Under Section 231.006, Family Code, the Subgrantee certifies that the individual or business entity named in this Agreement is not ineligible to receive the specified grant or payment and acknowledges that this Agreement may be terminated and payment may be withheld if this certification is inaccurate. The form for the Child Support Statement is available on the Internet at: http://www.dot.state.tx.uslcso/default.htm . GGALS AND STRATBGI$S To increase effective enforcement and adjudication of Goad: traffic saf ety-related laws to reduce fatal and serious injury craAhes Stra<tegiaes: Increase enforcement of traffic safety-related laws. Increase public education and information campaigns. 44a-1: To increase occupant restraint use in all passenger vehicles and trucks Strategy: Increase enforcement of occupant protection laws. I agree to the above goals and strategies. 2{~z~$ 'T'v iY 3'T 1. RESPONSIBILITIES OF THE SUBGRANTEE: A. Garry out all performance measures established in the grant, including fulftlling the law enforcement objectives by implementing the Operational Plan contained in this Grant Agreement. B. Submit all required reports to the Department (TxDC)T) fully completed with the most current information, and within. the required times, as defined in ,=~rticic 3 and .~rtiele 7 of the General Terms and Conditiot~ of this Grant Agreement. This includes reporting to the Department on progress, achievements, and problems in monthly Performance Reports and attaching necessary source documentation to support all costs claimed in Requests for Reimbursement (RFR). C. Attend Department-approved grant management training. D. Attend meetings according to the following: The Department will arrange for meetings with the Subgrantee to present status of activities and to discuss problems and the schedule for the following quarter's work. The project director or other appropriate qualified persons will be available to represent the Subgrantee at meetings requested by the Department. E. Support grant enforcement efforts with public information and education (PI&E) activities. Salaries being claimed for PI&E activities must be included in the budget. F. When applicable, all newly developed PI&E materials must be submitted to the Department for written approval, through the TxDOT Electronic Grants Management System (eGrants) system messaging, prior to final production. Refer to the Traffic Safety Program Manual regarding YIc~I'; prcx:edurtis. G. For out of state travel expenses to be reimbursable, the Subgrantee must have obtained the written approval of the Department, through eGrants system messaging, prior to the beginning of the trip. Grant approval does not satisfy this requirement. For Department district-managed grants, the Subgrantee must have obtained written Department district approval, through eGrants system messaging, for travel and related expenses if outside of the district bowidaries. H. Maintain verification that all expenses, including wages or salaries, for which reimbursement is requested is for work exclusively related to this project. I. Ensure that this grant will in nn way supplant (replace) funds from other sources. Supplanting refers to the use of federal funds to support personnel or any activity already supported by local or state funds. J. Ensure that each officer working an the STEP project will complete an ofTicer's daily report form. The form should include at a minimum: name, date, badge or identification number, type of grant worked, grant site number, mileage (including starting and ending mileage), hours worked, type of citation issued or arrest made, officer and supervisor signatures. 'FxL~rt' K. Ensure that no officer above the rank of Lieutenant (or equivalent title) will be reimbursed for enforcement duty, unless the Subgrantee received specific written authorization from the Department, through eCrants system messaging, prior to incurring costs. L. Subgrantee may work additional STEP enforcement hours on holidays or special events not covered under the Operational Plaza. However, additional work must be approved in writing by the Department, though eGrants system messaging, prior to enforcement. Additional hours must be reported in the Performance Report for the time period for which tlae additional hours were worked. M. If an officer makes aSTEP-related arrest during the shift, but does not complete the arrest before the shift is scheduled to end, the officer can continue working under the grant to complete that arrest. N. Subgrantees with a traffic unit will utilise traffic personnel for this grant, unless such personnel are unavailable for assignment. O. Prior to conducting speed enforcement, the Subgrantee must select and survey enforcement sites that comply with existing state mandated speed limits in accordance with the Texas Transportation Code, Sections 545.352 through 545.356. P. Officers assigned to speed sites should be trained in the use of radar or laser speed measurement devices. Q. The Subgrantee should have a safety belt use policy. If tha Subgrantee does not have a safety beh use policy in place, a policy should be implemented, and a copy maintained far verification during the grant year. K. Officers working DWI enforcement must be trained in the National Highway 'T'raffic Safety AdministrationfIaaternational Association of Chiefs of Police Standardized Field Sobriety Testing (SFST). In the case of a first year subgrantee, tha officers must be trained, or scheduled to be SFST trained, by the end of the grant. year. For second or subsequent year gratats, all officers working DWI enforcement must be SFST trained S. The Subgrantee should have a procedure in place for contacting and using drug recognition experts (DREs) when necessary. T. The Subgrantee is encouraged to use the DWI On-line Reporting System available through the Buckle Up Texas Web site at ~vww.buckleuvte,cas.com ~~~~ RESPONSIBILITIES OF THE DEPARTMENT: A. Monitor the Subgrantee's compliance with the performance obligations and fiscal requirements of this Grant Agreement using appropriate and necessary monitoring and inspections, including but not limited to: • reV-iew of periodic reports • telephone conversations • eGrants system messaging • e-mails and letters • yuartierly review meetings • physical inspection of project records and supporting documentation. B. Provide program management and technical assistance. C. Attend appropriate meetings. D. Reimburse the Subgrantee for all eligible costs as defined in the project budget. Requests for Reimbursement will be processed up to the maximum amount payable as indicated in the project budget. E. Perform an administrative review of the project at the close of the grant period to: • Ascertain whether or not the project objectives were met • Review project accomplishments (performance measures completed, targets achieved) • Document any progress towards self-sufficiency Account for any approved Program Income earned and expended • Identify exemplary performance or best practices. ~Xlx:,~7 BUDGET SUMMT~RY 7 =:~ +J Budget Category TxDOT Match Total Category I - Labor Coats (1003S211aries ~,()7.r^,.;1,) _ $~ y5, 7~i~.(:CJ _ { 2 0 0 }Fringe S ene f i is .. ...__. ~ 1 ~ ~ U ~ _~„4 ~~., __~.'..~ ..w_ y ~„______,__._._.__.._..._.,,._..._.....~,_._.... _._~.,....M.,~._._._...,._.,..._....._.........~.__.._.._....__...._.._.._..___....__...._. __. Category I Sub-Total $?_823.40 _._..,_.._.__.__________...~.. _ ____.__....,___._,.___._.._..___ ...______.._...__..,_.,.._.,..__., ~_____,._r _ jCategory II - 8ther Direct Coats _ _ . ~.,~,~._ .............._.~.~ a_ {,_~, ______._._._. __.___,..,.. _,~. ~„~.,:Q!~ ~W_~. ~:_~ .. { 3 00 }Travel ;~ {400}Equipment {500)Sugplies (600)Contractual Services :1700} Other Miscellaneous Category II Sub-Totsl SO ?Total Direct Casts ~__.___..~...._. ___.._._._..__._....___,.__..__.._.._.._........._.._.__..__.w. ;,Category IIZ - iadirect Coate {80031ndirect Cost Rate $7 823 40 .._..._.__.._~__.......____.________.__. .....,.~,_......__,_w~_.......__.___~~,~_~.__. __...__._...._..~..___..__..__.___._______~ .__ ___._.~__._.. M~~:, Sumasry Total Labor Costs - _ _. _.....____._._...__.____ ~? , 8 ~ 3 . ~ ~~ ._.~..._._._.V._._ _.. ,.______. ~ u ~' , h 23 . ~ ~ Total Direct Costs ...,.._..~._....._...,...__........._...._..__~._____,~.,....,_,,....~..__...._....__._.._.._....._................._......_.,..._............._..... Total Indirect Costs ._ ______.._.___.__ .~,. _ _._...__ =~r .__ .............._......,...~._.....,_..........,_.,......_.................,._................ w...:~... _.............._......._.......... ..._.___._ _ _,~._______.___._ .._..__..____ `~ ..........._....._...........~.,....,........._._....._.4w:~ __.......__......__ ._...._.._~W__v.___~_____.__.____ -- ....._...._.........._........._...................._.......__.y r~.... yt ;Graced Total ~ $7,823.40 $Oi $? 823.401 Fund Souses Percent Share) 1€~+~=, rC $ ~, f~~ $ ; , i;~ L, it t<~;c _..r'.;::t:lanEi tli=_._ SALARIBS AND FRING£ BENEFITS - 100 & 200 %1 `.I~: Law Enforcement Hours i ~ "' _ O•arrtime [] Regular Time _ . _ .; TxDOT tdatch Wage TxDrJT Match Total Hours Hours Pate Salaries Salaries Salaries ' Fringe g Total Fringe.:......: 11. Bnforc~mleat iav~rtim~) Officers Dep , . Lit1e8• ;.7 <r,.i.?~.3._ ___.~r`,`,ti},., ,.I' _ - ... -_.----~.. - --- cr. ~3%. 1 -- ~ .iC - ,e,l~.:>~~ Ser OAnt~. ~.+.. ..a..1:: ~ .' r~r . V ar ._.. . .....___ ... )fi..: , 'Lieutenants / Other: ~ ~? 51; ?) g gr~ B. DIiS 7lativiti~s (ovirtim~) . FI&8 Activities •~~ 9r1 S7 " g .4 C. 1116niaiatraiva Duties g _re_.~a~e%he~,'_~sa F'k,~_.k 2 ~3,i.OG^ `1:7Ei.li(, .,? „~n5... 3i: g 5s.~. J) -~ ,/ g i is m:z~l ~:~ 9t v~ ~*' ~•a g i. .Atlri~ `~.' .at..Vr? ..ll. ;!y_ ~ ,~~, .~.1 y1 4 .. q'; ~Ct ~~idt r-+x i7:' GiI-i. !; ~ }.. !'i; ytY ~.) ~ •~: Total: $6,018.00 $0 :. $6,018.00 .. _ . ....... $1,805. i0 Category TxDOT _ .._.:. Match Total . Salarlesl: •'r.- -'~:'" (;~, if~f..s: g -. li~ .~)li.. ...^f'.....)~:.li. , ~ :.a s Fringe Benefits: $ i`IG'~ ' g `~ ' 4~ ,0, r , ~1 - _....... _ . -_ g __ ..... _ . ;Breakdown of Frin a Fercentagear: i ............. ._.__...._... . ._........_. ............. ..__....._. .._.............. 1..... ~.. .... _.. . . . 7. G/~.._.Cl., CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Patricia Hutson Council Meeting Date: 4-28-2008 Agenda No. F.6 Subject: GN 2008-032 Appointment to Teen Court Advisory Board -Place 4 The Place 4 position on the Teen Court Advisory Board is currently vacant. Councilman Barth is recommending the appointment of Shelley Nicholson to fill the vacancy. Ms. Nicholson lives in the southern quadrant of the City. Recommendation: To consider the appointment of Ms. Shelley Nicholson to Place 4 on the Teen Court Advisory Board, term expiring June 30, 2010. CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Patricia Hutson Council Meeting Date: 4-28-2008 Agenda No. F.7 Subject: GN 2008-035 Consider Dates for May Council Meetings The Texas Election Law provides that the oaths of office for newly elected officials can be administered betwF;en May 13 and May 21. During the Council work session, Council will be discussing whether they desire to set a date for a special council meeting between May 13 and May 21 to administer the oaths of office to our newly elected officials or as an alternative, reschedule the May 12 Council meeting to May 13. This will allow the oaths of office to be administered at the beginning of the May 13 meeting followed by thEh items that would have been scheduled for the May 12 meeting. Recommendation: To set a date for a special council meeting to administer the oaths of office between May 13 and May 21 or ~eschedule the May 12 meeting to May 13. CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Council Meeting Date: 4-28-2008 Agenda No. G.0 Subject: EXECUTIVE SESSION ITEMS CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Council Meeting Date: 4-28-2008 Agenda No. G.1 Subject: Action on Any Item Discussed in Executive Session Listed on Work Session Agenda CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Council Meeting Date: 4-28-2008 Agenda No. H.0 Subject: INFORMATION AND REPORTS CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Councilman Tim Welch Council Meeting Date: 4-28-2008 Agenda No. H.1 Subject: Announcements -Councilman Welch Announcements The North Richland Hills Public Library is now open in its new location at 9015 Grand Avenue. The new facility offers more than 172,000 items for borrowers to check out. It also features a dynamic children's area, 2 public meeting rooms, a local history room, a small business assistance office, free wireless Internet, a cafe and more. For more details about the new library stop by or call 817-427-6800. North Richland Hills is offering Think Green environmental education sessions at the Recreation Center. The Think Green sessions will introduce several different concepts of green living that are easily implemented into your daily lives and are relevant to all ages. Sessions will be held once each month through August. For more details, please call 817-427-6600. The Sounds of Spring Concert Series continues every Friday night through May 9th at NRH2O. Gates open at 6 p.m. and the concerts begin at 7 p.m. Admission is FREE. Remember to bring blankets and lawn chairs. For more information, call 817-427-6600 or visit www.soundsnrh.com. Kudos Korner Every Council Meeting, we spotlight our employees for the great things they do. Rickie McMahon & Ron Hernandez, Utility Division, Public Works Department - A letter was received from a resident commending Rickie and Ron for coming out on a Saturday evening to turn his water back on after he accidently turned it off. He was grateful for their quick response and appreciated their help. CITY OF NORTH RICHLAND HILLS Department: City Secretary Presented by: Council Meeting Date: 4-28-2008 Agenda No. H.2 Subject: Adjournment