HomeMy WebLinkAboutCC 2006-05-24 Agendas
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CITY 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, MAY 22,2006
6:20 P.M
A.O
Discuss Items from Regular City Council Meeting
B.1
IR 2006-061 Implementation of Burglar Alarm Permit Ordinance (10 Minutes)
B.2
IR 2006-063 Discuss Two Proposed Subdivision Ordinance Amendments Adopting
Completeness Option for Determining Vested Rights and Establishing Requirements for
Adequacy of Public Improvements and Rough Proportionality of Required Developer
Improvements, Dedications and Fees (10 Minutes)
B.3
IR 2006-064 Red Light Enforcement (10-15 Minutes)
C.O
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 May 19, 2006 at 9: 55 ~
ø~(Yti~
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.
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CITY OF NORTH RICHLAND HILLS
CITY COUNCIL AGENDA
CITY HALL COUNCIL CHAMBERS
7301 NORTHEAST LOOP 820
NORTH RICHLAND HILLS, TEXAS
MONDAY, MAY 22,2006
7:00 P.M.
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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:
o Library on the Friday prior to the meeting (available electronically)
o 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
wvvw. nrhtx.com after 5: 00 p. m. on the Friday prior to every regularly scheduled Counci I
meeting.
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A.1
A.2
A.3
A.4
A.5
A.6
A.7
A.8
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Call to Order - Mayor Oscar Trevino
Invocation - Councilwoman Compton
Pledge - Councilwoman Compton
Special Presentationes) and Recognition(s)
Yard of the Month Awards
Special Presentationes) and Recognition(s): IR 2006-059 Teen Court Scholarship
Presentations
Special Presentationes) and Recognition(s) - Proclamation
National Public Works Week - Presented by Mayor Pro Tern Welch
GN 2006-035 Canvassing May 13, 2006 Municipal Election - Resolution No. 2006-035
Following Canvass there will be a Presentation to outgoing City Council Members.
GN 2006-036 Oath of Office
Recess for Brief Reception for Outgoing and Newly Elected Officials (15 Minutes)
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Executive Session. The City Council may enter into closed Executive Session to
discuss the following:
Deliberate the Lease of Municipal Real Property for Mineral Development Pursuant to
Section 551.072 of the Texas Government Code.
A.10 Citizens Presentation
An opportunity for citizens to address the City Council on matters which are not
scheduled for consideration by the City Councilor 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.
A.11 GN 2006-042 Election of Mayor Pro Tem
A.12 Removal of Item(s) from Consent Agenda
B.O 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 May 8, 2006 City Council Meeting
B.2 PU 2006-041 Award Bid for Annual Contract to Supply Top Soil, Sand and Flex Base to
HJG Trucking Company - Resolution No. 2006-041
B.3 PU 2006-043 Award Bid to TruGreen Landcare for the Rights-of-Way Contract Mowing -
Resolution No 2006-046
B.4 PU 2006-042 Award of Contract to Hawk Construction in the Amount of $31,025 for the
Installation of a Masonry Fence at Liberty Park - Resolution No. 2006-043
C.O PUBLIC HEARINGS
No items for this category.
D.O PLANNING AND DEVELOPMENT
Items to follow do not require a public hearing
No items for this category.
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E.O
PUBLIC WORKS
E.1
PW 2006-015 Award of Engineering Agreement to Schrickel, Rollins and Associates,
Inc. for the Boulevard 26 Intersection Improvements (Glenview Drive and Rufe Snow
Drive)
F.O GENERAL ITEMS
F.1 GN 2006-040 Consider a Resolution in Support of CAPP Efforts to Contract for Long-
Term Capacity for Electrical Power Needs - Resolution No. 2006-044
F.2 GN 2006-028 Alternative Retirement Program to Social Security for Part-Time
Employees - Resolution No. 2006-025
F.3 PU 2006-037 Award of the Professional Services Contract to Lopez Garcia Group in the
amount of $117,150 for the Boulevard 26 Trail Project - Resolution No. 2006-045
F.4 PU 2006-038 Award Bid for Mineral Lease of Northfield Park - Resolution No. 2006-036
F.5 PU 2006-039 Award Bid for Mineral Lease of Richfield Park - Resolution No. 2006-037
F.6 PU 2006-040 Award Bid for Mineral Leases of Fossil Creek Park and Linda Spurlock
. Park - Resolution No. 2006-038
F.7 GN 2006-034 Removal, Impoundment of Abandoned Vehicles on Highways - Ordinance
No. 2883
F.8 GN 2006-041 Ordinance Prohibiting Minors' Possession of Aerosol Paint/Markers;
Providing Notice and Abatement of Graffiti - Ordinance No. 2884
F.9 GN 2006-038 Approve Investment Strategy and Investment Policy Update - Resolution
No. 2006-039
F.10 PU 2006-044 Authorize Contract with Champion Turf Farms for the Greens
Reconstruction at Iron Horse Golf Course - Resolution No. 2006-041
F.11 GN 2006-044 Consider Appointments to Boulevard 26 Oversight Committee
F.12 Information and Reports - Councilwoman Compton
F .13 Adjournment
e All items on the agenda are for discussion and/or action.
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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 May 19,2006 at ':!)5~
ø~C/~~
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.
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A.O
B.1
B.2
B.3
C.O
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 76182
Monday, May 22, 2006
6:20 P.M.
Discuss Itenìs frOrìì Regular City Council Meeting
IR 2006-061 Irnplernentation of Burglar Alarrn Permit Ordinance (10 Minutes)
IR 2006-063 Discuss Tvvo Proposed Subdivision Ordinance Arnencinlents
Adopting Cornpleteness Option for Deterrninìng Vested Rights and Establishing
Requirements for Adequacy of Public Irnprovernents and RouÇ1h Proportionality
of Required Developer Irnprovernents. Dedications and Fees (10 ~/1inutes)
IR 2006-064 Red Líqht Enforcernent (10-15 tv1inutes)
Adíournrnent
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INFORMAL REPORT TO MAYOR AND CITY COUNCIL
No. IR 2006-061
Date: OS/22/2006
Subject: Implementation of Burglar Alarm Permit Ordinance
The City of North Richland Hills Police Department responds to all burglar alarms
reported to the emergency dispatch center. As is common in most cities, the alarm
calls that our officers respond to are typically false in nature. During fiscal year
2004/05, the Police Department responded to 4,161 audible and silent burglar alarms.
Of these burglar alarms, 98.4% were found to be false or were cancelled before an
officer arrived on the scene. Statistics also show that police officers spent
approximately 775 hours and dispatchers spent approximately 870 hours handling
these false alarm calls. This places a drain on our resources and limits the Police
Department's ability to work on the issues our community expects of us.
The City does not currently require permits for burglar alarms nor a re fees assessed
for false alarms. Many cities assess fees and fines for false alarms to recoup a portion
of the operating costs and attempt to reduce the number of faulty systems and/or
negligent use of systems in their jurisdictions. Typically, cities that charge for false
burglar alarms also require residences and businesses to permit their alarm systems
and annually renew such permits through an annual fee. Eleven area cities were
surveyed and all those cities require permits for residential and commercial burglar
alarms. The permit fees range from a minimum of $20 to a maximum of $50 annually.
In order for the City to require permits for burglar alarms and assess fees for false
alarms, an ordinance would need to be developed and a system would need to be put
in place to issue permits, track false alarms and collect fees for permits and false
alarms. (A draft alarm ordinance is attached as a part of this IR.) Many of the cities
surveyed have at least one employee dedicated to managing burglar alarm permits
and tracking false alarms. Given the number of alarms to be tracked, it is reasonable to
expect that an additional employee would be needed if we implement a false alarm
ordinances program.
As an alternative to hiring personnel to monitor this, there are outside companies that
specialize in administering these types of programs. These companies provide the
entire spectrum of services related to a burglar alarm program including initial and
annual renewal of alarm registration, tracking of alarm calls, ticketing, ticket remittance,
citizen inquiry support, education and support of any appeals process. There is no cost
to the City of North Richland Hills to get started, and these companies cover all start-up
~ ISSUED BY THE CITY MANAGER
NORTH RICHlAND HillS, TEXAS --
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INFORMAL REPORT TO MAYOR AND CITY COUNCIL
Date: OS/22/2006
Subject: Implementation of Burglar Alarm Permit Ordinance (Page 2 of 2)
and on-going expenses to operate a false alarm program. They are compensated by
taking a processing fee for each transaction paid (approximately 22.50/0) including
permits. The fee can also be negotiated at a flat rate charge. Should this method be
used, we would receive proposals and evaluate them for selecting the best possible
firm.
In addition, the City of North Richland Hills currently has an ordinance in place
(Ordinance 2625) that deals with false fire alarms, fire alarm malfunctions and the
associated fees. Fines are currently assessed for false fire ala rms. Information
obtained from the Fire Department indicates that they responded to 355 fire alarms
during 2005 of which 200 were reported to be false alarms. Most of the companies that
handle the burglar alarms also have the ability to administer the Fire Departments false
fire alarm program if desired.
We believe that it would be beneficial to enact an alarm system ordinance, however
there are costs associated with this to make it effective. We look forward to discussing
a proposed ordinance with you and the options for implementing such an ordinance.
We are also seeking direction on adoption of an ordinance and also seeking direction
on the preferred approach to implementing an alarm ordinance to address the problem
of false burglar alarms.
Respectfully Submitted,
Jimmy Perdue
Chief of Police
..... ISSUED BY THE CITY MANAGER
NORTH RICHlAND HillS, TEXAS --
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ORDINANCE NO.
AN ORDINANCE AMENDING THE CODE OF ORDINANCES OF THE
CITY OF NORTH RICHLAND HILLS, TEXAS, REGULATING ALARM
BUSINESSES, SYSTEMS AND USERS BY ADDING A NEW CHAPTER
9 CONTAINING DEFINITIONS, REGULATIONS FOR NEW ALARM
SYSTEMS, ALARM FEES, PERMIT DURATION, RECORD KEEPING
REQUIREMENTS, SERVICE FEES; PROVIDING AN EFFECTIVE DATE;
PROVIDING A PENALTY; PROVIDING A SAVINGS CLAUSE AND
PROVIDING A SEVERABILITY CLAUSE.
WHEREAS, the City of North Richland Hills desires to amend the Code of Ordinances
of the City of North Richland Hills.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF NORTH RICHLAND HILLS, TEXAS:
Section 1. That the North Richland Hills Code Ordinances is hereby by adding a new
Chapter 9 which shall read as follows:
e "Chapter 9 Alarm Business Systems, and Users
Sec. 9-1. Pu rpose.
The purpose of this chapter is to provide minimum standards and regulations applicable
to alarm systems, alarm businesses, and alarm users as defined in this chapter.
Sec. 9-2. Disclaimer.
The permit requirements and regulations set forth in this chapter in no way constitute an
endorsement of any business or of the concept of alarm systems as a positive aid to law
enforcement, and do not obligate City of North Richland Hills emergency personnel to
response in any manner to any notification as a result of a summons based on an alarm
system.
The fact of emergency personnel response(s) to one or more alarm system notifications
in no way is to be construed as the policy of the City of North Richland Hills or the intent
of this chapter. The establishment of such policy by this chapter is expressly denied.
Sec. 9-3. Defi nitions.
(a) Alarm System means a device or system that emits, transmits, or relays a signal
intended to summon, or that would reasonably be expected to summon,
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emergency personnel of the city, including but no limited to, local alarms. Alarm
systems do not include:
(1) An alarm installed on a motor vehicle;
(2) Any device or system designed solely to detect or give notice of fire,
smoke, or water flow;
(3) An alarm system designed solely to alert the occupants of a building or
residence which will not emit a signal either audible or visible from outside
the building or residence.
(b) Alarm Notification means a communication intended to summon emergency
personnel, which is designed either to be initiated purposely or by the person or
by an alarm system that responds to a stimulus characteristic of unauthorized
intrusion.
(c) Alarm site means a single premises or location (one street address) served by
an alarm system or systems. An alarm site will include a multiunit dwelling where
the owner of such dwelling provides or makes available an alarm system for his
tenants. For purposes of the issuance of a permit, such multiunit dwellings shall
be considered one property requiring only on permit.
(d) Alarm system user means a person who owns or controls the premises upon
which an alarm system is located.
(e)
Local alarm means an alarm system that emits a signal at an alarm site that is
a ud ible or visible from the exterio r of a structure.
(f) Chief means the chief of police of the City of North Richland Hills or his
representative.
(g) False Alarm Notification means the activation of an alarm system that results in
notification to city emergency personnel, and response by emergency personnel
at a time when the responding personnel find no evidence of unauthorized
intrusion, robbery, attempted robbery, or any other violation that the alarm
system was intended to report.
(h) Alarm permit holder means a person who has received an alarm system permit,
as required by this chapter.
(i) Person means an individual, corporation, partnership, association, organization,
or similar entity.
U) Special trunkline means a telephone line leading into the communications
center of the police or fire department that is for the primary purpose of receiving
ala rm notificatio ns.
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(k)
Emergency personnel mean police personnel or fire personnel of the City of
North Richland Hills.
Sec. 9-4. Permit required, Permit required for police response; application,
issuance.
(a) No person shall operate, cause to be operated, or permit the operation of an
alarm system unless a valid permit has been issued by the chief of such system.
This requirement is applicable to the person in control of the property, which the
alarm system is designed to protect. The alarm location must possess a valid
permit for the Police Department to respond to an alarm.
(b) An alarm system user of his agent shall obtain a permit for each alarm site.
(c) Upon receipt of a completed application form, the chief shall issue an alarm
permit to the applicant unless the applicant has failed to pay a service fee
assessed under Section 9-16 or has had an alarm permit for the alarm site
revoked, and the violation causing the revocation has not been corrected.
(d)
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Each permit application must contain the following information:
(1) Name, address and telephone number of te person who will be the permit
holder and be responsible for the proper maintenance and operation of the
alarm system and payment of fees assessed under this chapter;
(2) The street address of the property on which the alarm system is to be
i nsta II ed and 0 pe rated;
(3) Classification of the alarm site as either residential or commercial;
(4) Any business name or title used for the premises on which the alarm
system is to be installed;
(5) The name of one other person to respond to an alarm in the event the
permit holder is unavailable;
(6) Any other information required by the chief, which is necessary for the
enforcement of this chapter;
(7) Name, address and telephone number of alarm monitoring company, if
any.
(e) Any false statement of a material matter made by the applicant for the purpose of
obtaining an alarm permit shall be sufficient cause for refusal to issue a permit
and/or for revocation of a permit already issued.
(f) An alarm permit cannot be transferred to another person. A permit holder shall
inform the chief of any change that alters information listed on the permit
application within five (5) days of the occurrence of the change.
(g) All fees owed by an applicant must be paid before a permit may be issued or
renewed.
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(h)
The fee for a permit issued pursuant to this chapter shall be fifty dollars ($50.00)
per year for each alarm site except that permit holders sixty years (60) or older
shall pay ten dollars ($10.00) for annual renewals.
(i) Revocation Appeal Hearing fee of one hundred dollars ($100.00) shall be paid
before a permit revocation hearing will be scheduled with the Assistant City
Mana ger' s office.
Sec. 9-5. Permit duration and renewal.
A permit is valid, unless revoked, from the date of issuance for one year, upon receipt of
the annual fee. A permit will be automatically renewed for a one-year period, unless
revoked, upon receipt of the annual fee, unless cancelled by the permit holder.
Sec. 9-6. Proper alarm system operation and maintenance.
(a)
A permit holder or alarm system user shall:
(1) Maintain the premises containing an alarm system in a manner that
ensures proper operation of the alarm system;
(2) Maintain the alarm system in a manner that will minimize false alarm
n otifica ti ons;
(3) Respond or ca use a representative to respond within a reasonable period
of time when notified by the city to repair or inactivate a malfunctioning
alarm system, to provide access to the premises. A permit holder may
present extenuating circumstances regarding the reasonableness of
his/her response time at any administrative hearing under this chapter;
(4) Not manually activate an alarm for any reason other that an occurrence of
an event that the alarm system was intended to report.
(b) A person in control of an alarm system shall adjust the mechanism or cause the
mechanism to be adjusted so that an alarm signal will sound for no longer than
fifteen (15) minutes after being activated.
Sec. 9-7. Manual reset required.
A permit holder or person in control of an alarm system which has an automatic
resetting device, and which system causes three (3) or more alarms within a twenty-
four-hour period, shall manually rest the system.
Sec. 9-8. Reporting of alarm signals.
A permit holder or person in control of an alarm system shall not allow alarm signals to
be reported through a relaying intermediary that does not comply with the requirements
of this chapter and any rules and regulations promulgated by the chief, or is not licensed
by the Texas Board of Private I nvestigators and Private Security Agencies.
e Sec. 9-9. Alarm reporting & monitoring requirements.
(a) A person who is engaged in the business of relaying alarm notifications to the
city shall:
(1) Make notification by a human operator only after attempting to call the
permit holder or person in control of premises a minimum of two times
prior to reporting the alarm response to the Police Department;
(2) Report alarms only on special trunk lines designated by the chief;
(3) Communicate alarm notifications to the city in a manner and form
designated by the chief.
Sec. 9-10. Record keeping.
A person engaged in the business of selling, leasing, insta lIing, or otherwise distributing
alarm systems shall maintain records at its place of business which will show the names
and addresses of persons to whom an alarm system was sold, leased, installed, or
otherwise distributed, as well as the date of such transactions.
Said alarm businesses or person shall make said records available during regular
business hours to the chief or his designee for inspection. The express purpose of this
section is to assure that alarm system users are in compliance with this chapter, and not
to regulate in any manner any person engaged in the alarm business.
Duties of Alarm Systems Company.
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(a)
On the installation or activation of an alarm system, an alarm system company
shall distribute to the occupant of the alarm system location information
summarizing:
(1) the applica ble law relating to false alarms, including the potential for
penalties and revocation or suspension of a permit;
(2) how to prevent false alarms; and
(3) how to operate the alarm system.
(b) An alarm systems company shall notify the municipality in which the alarm
system is located of an installation or activation of an alarm system not later than
the 30th day after the date of the installation or activation. The alarm systems
company shall provide to the municipality:
(1) the alarm systems company name;
(2) the alarm systems company license number;
(3,) the name of the occupant of the alarm system location;
(4) the address of the alarm system location; and
(5) the date of installation or activation.
Sec. 9-11. Automatic dialing prohibited.
No person shall operate or cause to be operated any automatic dialing device which,
when activated, uses a telephone device or attachment to automatically select a
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telephone line leading into the police department or the city and then transmit any
prerecorded message or signal.
Sec. 9-12. Alarm system operating instructions.
A permit holder of person in control of an alarm system shall maintain at each alarm site
a complete set of written operating instructions for each alarm system. Special codes,
combinations, or passwords shall not be included in these instructions.
Sec. 9-13. Alarm dispatch records.
(a) Emergency personnel responding to a dispatch resulting from an alarm system
notification shall record such information as necessary to permit the chief to
maintain records, including, but not limited to, the following information:
(1 ) Identificatio n of the perm it holder;
(2) Identification of the ala rm site;
(3) Time dispatched, arrived, and cleared;
(4) Time of day, date;
(5) Weather conditions
(6) Name of permit holder's representative on the premises if any.
(b) Responding personnel shall indicate on the dispatch record whether the
notification was caused by a false alarm.
Sec. 9-14. System performance reviews.
If there is reason to believe that an alarm system is not being used or maintained in the
manner that ensures proper operation and suppressed false alarms, the chief may
require a conference with an alarm permit holder and the individual or association
responsible for maintenance of the alarm system to review circumstanced of each false
alarm. Any such conference will be held only after a ten-day notice on mailing to the
permit holder such notice to be effective on mailing to the permit holder at the address
listed on the application.
Sec. 9-15. Service fee; false alarm notification.
(a) Except as provided in subsection (b), the holder of an alarm permit shall pay a
service fee of fifty dollars ($50.00) for each false alarm notification emitted from
an alarm site that is in excess of three (3) but fewer than six (6); seventy five
dollars ($75.00) for more than five (5) but less than eight (8); one hundred dollars
($100.00) for eight (8) or more false burglar/intrusion alarms during any twelve
(12) months.
(b) If a person notifies the chief and applies for an alarm permit before the
installation of a new alarm system, no service fee will be assessed during the first
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fifteen (15) days after installation, and false alarm notifications during that period
will not be counted in determining when a service fee will be assessed.
Sec. 9-16. Revocation of alarm permit.
The chief may revoke an alarm permit if he determines that:
(1) There is any violation of this chapter;
(2) There is a false statement of a material matter in the application for a
permit.
(3) An alarm system has generated in excess of twelve (12) false alarms
during any twelve (12) months;
(4) The permit holder has failed to make payment of any service fee, permit
fee or revocation hearing fee assessed under section 9-4 or 9-15 within
thirty (30) days of the assessment;
(5) Failure to attend the conference provided for in section 9-14.
Sec. 9-17. Appeal of denial or revocation of a permit.
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(a) If the chief refuses to issue or renew a permit, or revokes a permit, he shall send
to the applicant or permit holder by certified mail, return receipt requested, written
notice of his action and a statement of the right to an appeal. The applicant or
permit holder may appeal the decision of the chief to the assistant city manager a
written request for a hearing setting forth the reason for the appeal, within ten
(10) days after receipt of the notice of the chief. The filing of a request for an
appeal hearing with the assistant city manger stays the action of the chief to the
denial of a permit or the revocation of a permit until the assistant city manager
makes a final decision. If a request for an appeal hearing is not made within the
ten-day period, the action of the chief is final.
(b) An assistant city manager shall serve as hearing officer at an appeal, and
consider evidence by any interested person. The formal rules of evidence do not
apply at an appeal hearing; the hearing officer shall make his decision on the
basis of a preponderance of the evidence present within thirty (30) days after the
request for an appeal hearing is filed. The hearing officer shall affirm, reverse, or
modify the action of the chief. The decision of the hearing officer is final as to
administrative remedies within the city.
(c) In addition to prohibiting or requiring certain conduct of individuals, it is the intent
of this chapter to hold a corporation, partnership, or other associations criminally
responsible for acts or omissions performed by an agent acting in behalf of the
corporation, partnership, or other association, within the scope of this
employment.
Sec. 9-18. Forfeiture of application fee upon revocation of perm it.
When the revocation of a permit is final, all permit fees shall be forfeited.
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Sec. 9-19. Reapplication for permit after revocation.
(a) Should an alarm system user of his agent, after final permit revocation, desire to
reapply for a permit, he shall be required to submit a new permit application,
including the required permit fees.
(b) The applicant shall also submit satisfactory proof of compliance with the chapter.
Sec. 9-20. Confidentiality of information.
All information provided by a permit holder pursuant to this chapter sha II be confidential
to the extent possible under Chapter 552, Texas Government Code, and shall be
utilized solely by the police department; provided that said information shall be available
to the permit holder.
Sec. 9-21. Exemption of certain government bodies.
The United States Government, the State of Texas, or any county government or school
district situated within the corporate city limits of the City of North Richland Hills shall
comply with the requirements of this chapter; provided however, that they shall be
exempt from the payment of fees.
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(a) It shall be unlawful to operate an alarm system during the period in which an
alarm permit is under revocation. Each day of such operation shall constitute a
separate offense.
(b) It shall be unlawful for any person to operate an alarm system without a permit or
in violation of any provision of Section 9-4. Each day of such operation shall
constitute a separate offense."
Section 2. Any person, firm or corporation violating any provision of this ordinance
shall be deemed guilty of a misdemeanor and upon final conviction thereof fined in an
amount not to exceed Five Hundred Dollars ($500.00). Each day any such violation
shall be allowed to continue shall constitute a separate violation and punishable
hereunder.
Section 3. The City Secretary is hereby authorized and directed to cause the
publication of the descriptive caption and penalty clauses hereof.
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Section 4. That the terms and provisions of this ordinance shall be deemed to be
severable and that if the validity of any section, subsection, sentence, clause or phrase
of this ordinance should be declared to be invalid, the same shall not affect the validity
of any other section, subsection, sentence, clause or phrase of this ordinance.
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PASSED AND APPROVED ON THIS
DAY OF
, 2006.
Oscar Trevino, Mayor
ATTEST:
Patricia Hutson, City Secretary
Approved as to Form ad Legality:
George Staples, Attorney
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No. IR 2006-063
INFORMAL REPORT TO MAYOR AND CITY COUNCIL
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Date: May 22, 2006
Subject: Discuss Two Proposed Subdivision Ordinance Amendments
Adopting Completeness Option for Determining Vested Rights and
Establishing Requirements for Adequacy of Public Improvements and
Rough Proportionality of Required Developer Improvements, Dedications
and Fees
We need to consider adopting tvvo ordinances amending the subdivision ordinance in
order to address issues arising from 2005 legislation which affects cities.
The first of these ordinances addresses what we refer to as the "completeness"
requirement for the purpose of determining when so-called vested rights under Chapter
245 of the Texas Local Government Code are created. Chapter 245 allows developers
to "freeze" the law applicable to a development by filing almost anything with the city,
including what some have referred to as a "napkin drawing" of a subdivision. This
mea ns that the developer will have a right to proceed under laws as they existed at the
time of the application, with limited exceptions. During this past session the legislature
amended Section 245.002 to allow cities to require that applications for development
be submitted for a completeness review and to respond within ten business days
describing the deficiencies in the submittal with an notation that if these deficiencies
are not cured within 45 days, the application will expire and a new application required.
If the response is not timely provided by the city, the applicants' application will be
deemed complete, but only for the purpose of Chapter 245; it will not allow deviations
from other subdivision requirements.
The second of these ordinances is considerably longer and addresses the issue of
rough proportionality which arises from Federal and State takings litigation and now
ensconced in law as Section 211.904, Texas Local Government Code.
HB 1835 created a new §212.904, Texas Local Government Code which requires that
if a municipality requires that a developer pay a portion of the cost of municipal
infrastructure improvements by dedicating property, paying fees, or paying construction
ISSUED BY THE CITY MANAGER
NORTH RICHlAND HillS, TEXAS --
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IR 2006-063
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costs, a licensed professional engineer retained by the municipality shall determine the
amount required for infrastructure improvements that are roughly proportionate to the
proposed development and the developer's share shall not exceed that amount.
The new law provides that a developer may appeal a determination by the engineer to
the city council and present evidence and testimony and the council must decide the
matter within 30 days after such presentation.
The developer has a right of appeal to the county or district court and may collect costs,
attorney fees, and expert witness fees. No such relief is available to a city. Cities
cannot require waiver of appeal. This law does not affect impact fee laws.
The effect of this is to put all our subdivision requirements for dedication of land and
improvements of adjacent streets in limbo; the requirements are not repealed, but each
development application must be reviewed to ascertain whether the requirements are
roughly proportional to the development. Also impacted are the requirements for park
dedication; they may be valid, but an engineer will have to say so.
The ordinance will include requirements for the proportionality determination and
appeals in the subdivision ordinance and adds requirements that public facilities be
adequate, so that if the hard requirements are not proportional, something can be
substituted for the specific requirements.
These proposed ordinances are being reviewed with the Planning and Zoning
Commission, and we wanted to also share this with Council so that you will have some
understanding when they come forward. We will be happy to address any questions
you may have at Monday's worksession.
Respectfully submitted,
George Staples
Attorney for City
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ORDINANCE NO.
AN ORDINANCE AMENDING ARTICLE X OF CHAPTER 110 OF THE
NORTH RICHLAND HILLS CODE OF ORDINANCES AND
ESTABLISHING REQUIREMENTS RELATING TO COMPLETENESS
DETERMINATIONS FOR PLAT AND DEVELOPMENT APPLICATIONS;
PROVIDING THAT THE PROVISIONS OF THIS ORDINANCE SHALL
APPLY TO APPLICATIONS FOR PLAT APPROVAL; PROVIDING
CUMULATIVE AND SEVERABILITY CLAUSES; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City of North Richland Hills is a home rule city acting under its
charter adopted by the electorate pursuant to Article XI, Section 5, of the Texas
Constitution and Chapter 9 of the Local Government Code; and
WHEREAS, the City desires to adopt the completeness determination
requirements provided in Section 245.002(e), Texas Local Government Code, relating
to vesting of development applications; and
WHEREAS, notice of a public hearing before the Planning and Zoning
Commission and of a public hearing before the City Council has been published at least
ten (10) days prior to such hearings and such hearings have been held on the
regulations contained hereinbelow as required by Section 110-44 of the North Richland
H ills Code of Ordi na nces;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF NORTH RICHLAND HILLS, TEXAS:
Section 1. That the Subdivision Ordinance is amended by the addition of Sectons
110-51 and 110-152 which shall be and read as follows:
"Sec. 110-51. Requirements for Completeness Determination
A. Every application for approval of a preliminary plat, final plat or any other type of
plat or development plan submitted after June 1, 2006 shall be subject to a
determination of completeness by the Director of Planning or his designee.
B. No application shall be deemed complete and accepted for processing unless it
is accompanied by all documents required by and prepared in accordance with
the requirements of this ordinance. For a determination of completeness to be
issued, an application must include the following:
1. A completed application form signed by the owner or the owner's
authorized agent;
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Every item, study and document required by the Subdivision Ordinance for
the type of plat being submitted, or required for a development plan; and
3. A non-refundable application submittal fee, as specified in the fee
schedule.
C. The Director of Public Works or the Director of Planning may from time to time
identify additional requirements for a complete application that are not contained
within but are consistent with the application contents and standards set forth in
the Subdivision Ordinance.
D. A determination of completeness shall not constitute a determination of
compliance with the substantive requirements of this Ordinance.
Sec. 551.052. Determination of Completeness; Expiration
A.
Not later than the tenth business day after the date an application for plat
approval or a plan of development is submitted, the Director of Planning or his
designee shall make a written determination whether the application constitutes a
complete application. This shall include a determination that all information and
documents required by this Subdivision Ordinance for the type of plat being
submitted or other requirements have been submitted. A determination that the
application is incomplete shall be mailed to the applicant within such time period
by United States Certified Mail at the address listed on the application. The
determination shall specify the documents or other information needed to
complete the application and shall state that the application will expire if the
documents or other information is not submitted within 45 days after the date the
application was submitted.
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B. An application for approval of a preliminary or final plat or development plan filed
on or after the effective date of this ordinance shall be deemed complete for the
purpose of determining rights under Chapter 245, Texas Local Government Code
on the 11th business day after the application has been received, if the applicant
has not otherwise been notified that the application is incomplete. For purposes
of this Section, the applicant shall be deemed to have been notified if the City
has mailed a copy of the determination as provided in subsection D. A
determination of completeness shall not constitute a determination of compliance
with the substantive requirements of this Ordinance or that the time for
completing plat review has begun.
C. The processing of an application by any City employee prior to the time the
application is determined to be complete shall not be binding on the City as the
official acceptance of the application for filing. The incompleteness of an
application shall be grounds for denial of the application regardless of whether a
determination of incompleteness was mailed to the applicant.
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D.
An application for preliminary or final plat approval shall be deemed to expire on
the 45th day after the application is submitted to the Director of Planning for
processing if the applicant fails to provide documents or other information
necessary to meet the requirements of the Subdivision Ordinance or other
requirements as specified in the determination provided to the applicant. Upon
expiration, the application will be returned to the applicant together with any
accompanying documents. Thereafter, a new application for approval of the
preliminary plat or final plat must be submitted.
E. No vested rights accrue solely from the filing of an application that has expired
pursuant to this section, or from the filing of a complete application that is
subsequently denied."
Section 2. The provisions of Section 1 shall apply to development plans. The
application fee for an application completeness review shall be $200.00.
Section 3. This Ordinance shall be cumulative of all provisions of ordinances and of
the Code of Ordinances of the City and the subdivision ordinances as amended, except
where the provisions of this Ordinance are in direct conflict with the provisions of such
ordinances and such code, in which event the conflicting provisions of such ordinances
and such code are hereby repealed.
Section 4. 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 section, paragraph, sentence, clause, or phrase of this Ordinance shall be
decla red unconstitutional by the valid judgment or decree of any court of competent
jurisdiction, such unconstitutionality shall not affect any of the remaining sections,
paragraphs, sentences, clauses, and phrases of this Ordinance, since the same would
have been enacted by the City Council without the incorporation in this Ordinance of
any such unconstitutional section, paragraph, sentence, clause or phrase.
Section 5. This ordinance shall be in full force and effect from and after its passage
and publication and it is so ordained.
PASSED AND APPROVED ON THIS _ DAY OF JUNE, 2006.
Oscar Trevino, Mayor
e ATTEST:
Patricia Hutson, City Secretary
Approved as to Form ad Legality:
George Staples, Attorney
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ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 110, THE SUBDIVISION
CHAPTER OF THE NORTH RICHLAND HILLS CODE OF
ORDINANCES TO PROVIDE FOR ADEQUATE FACILITIES AND
MINIMUM STANDARDS FOR PUBLIC FACILITIES AND FOR THE
TIMING OF DEDICATION AND CONSTRUCTION OF PUBLIC
FACILITIES; ESTABLISHING REQUIREMENTS RELATING TO ROUGH
PROPORTIONALITY DETERMINATIONS FOR ALL PLAT AND
DEVELOPMENT APPLICATIONS WHICH IMPOSE EXACTION
REQUIREMENTS; PROVIDING FOR DEFINITIONS; PROVIDING FOR
PROCEDURES; ESTABLISHING PROCEDURES FOR APPEAL
THEREOF; PROVIDING THAT THIS ORDINANCE SHALL BE
CUMULATIVE OF ALL ORDINANCES; PROVIDING A SEVERABILITY
CLAUSE; PROVIDING A SAVINGS CLAUSE; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City of North Richland Hills is a home rule city acting under its charter
adopted by the electorate pursuant to Article XI, Section 5, of the Texas
Constitution and Chapter 9 of the Local Government Code; and
WHEREAS, the City desires to assure both that development impacts are mitigated
through contributions of rights-of-way, easements a nd construction of
capital improvements, and that a subdivision contribute not more than its
proportionate share of such costs as required by Section 212.904, Texas
Local Government Code; and
WHEREAS, notice of public hearings before the Planning and Zoning Commission and
the City Council has been published at least ten (10) days prior to such
hearings and such hearings have been held on the regulations contained
hereinbelow as required by Section 110-44 of the North Richland Hills
Code of Ordinances; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND
H ILLS, TEXAS:
Section 1: That Chapter 110 of the North R ichland H ills Code of Ordinances is hereby
amended by adding a new Article XIII which shall read as follows:
"Article XIII. Adequacy of Public Facilities; Proportionality
Sec. 110-451. Purpose and Policy
(a) These subdivision regulations of the City are designed and intended to achieve
the following purposes and shall be administered so as to:
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(1) promote the health, safety, morals and general welfare of the community
and the safe, orderly and healthful development of the City;
(2) establish adequate policies and procedures to guide
development of the City and its extraterritorial jurisdiction;
(3) provide for the establishment of minimum specifications for construction
and engineering design criteria for public infrastructure improvements to maintain land
values, reduce inconveniences to residents of the area, and to reduce related
unnecessa ry costs to the City for correction of inadequate facilities that are designed to
serve the public;
(4) ensure that development of land and subdivisions shall
be of such nature, shape and location that utilization will not impair
the general welfare;
(5) ensure against the dangers of fires, floods, erosion, landslides, or other
such menaces;
(6) preserve the natural beauty and topography of the City
and to ensure appropriate development with regard to these natural
features;
(7) realistically and harmoniously relate new development of adjacent
properties;
(8) provide the most beneficial circulation of traffic throughout the City, having
particular regard to the avoidance of congestion in the streets and highways, and
pedestrian traffic movements; and to provide for the proper location and width of streets;
(9) ensure that public facilities for water supply, drainage, disposal of sanitary
and industrial waste, and parks are available for every building site and with adequate
capacity to serve the proposed subdivision before issuance of a certificate of occupancy
or release of utility connections or final inspection within the boundaries of the plat;
(10) assure that new development adequately and fairly participates in the
dedication and construction of public infrastructure improvements that are necessitated
by or attributable to the development or that provide value or benefit that makes the
development feasible;
(11) help prevent pollution, assure the adequacy of drainage facilities, control
storm water runoff, safeguard the water table, and encourage the wise use and
management of natural resources throughout the City and its extraterritorial jurisdiction
in order to preserve the integrity, stability, and beauty of the community and the value of
the land; and
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(12) provide for open spaces through the most efficient design and layout of
the land, while preserving the land use intensity as established in the Zoning Ordinance
of the City.
(b) To carry out the purposes hereinabove stated, it is declared to be the policy of
the City to guide and regulate the subdivision and development of land in such a
manner as to promote orderly growth both within the City and where applicable, within
its extraterritorial jurisdiction.
(c) Land must not be platted until proper provision has been made for adequate
public faci lities fo r roadways, d ra inage, water, wa stewater, pu blic utilities, ca pita I
improvements, parks, recreation facilities, and rights-of-way for streets.
(d) Proposed plats or subdivisions which do not conform to the policies and
regulations shall be denied, or, in lieu of denial, disapproved conditioned on
conformance with conditions.
(e) There shall be an essential nexus between the requirement to dedicate rights-of-
way and easements and/or to construct public works improvements in connection with a
new subdivision and the need to offset the impacts on the City's public facilities systems
created by such new development.
Sec. 110-452: Adequate Public Facilities.
(a) Land proposed to be subdivided must be served adequately by essential public
facilities and services, including water and wastewater facilities, roadway and
pedestrian facilities, drainage facilities and pa rk facilities. An application for a plat or
development may be denied unless adequate public facilities necessary to support and
serve the development exist or provision has been made for the facilities, whether the
facilities are to be located within the property being platted or offsite.
(b) It is necessary and desirable to provide for dedication of rights-of-way and
easements for public works improvements to support new development at the earliest
stage of the development process.
(c) The City desires to assure both that impacts of new development are mitigated
through contributions of rights-of-way, easements and construction of capital
improvements, and that a new development be required to contribute not more than its
proportionate share of such costs.
(d) Proposed public works improvements serving new development shall conform to
and be properly related to the public facilities elements of the City's adopted Master
Plan, other adopted master plans for public facilities and services, and applicable capital
improvements plans, and shall meet the service levels specified in such plans.
Sec. 110-453: Minimum Standards
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(a) The standards established in Article X of Chapter 110 and Article III of Chapter
94 of the Code of Ordinances and other ordinances of the city for dedication and
construction of public works improvements a nd infrastructure are based upon
engineering studies and historical usages and demands by different categories of
development. These regulations identify certain minimum requirements and sizes for
utilities, roadways, parks and other facilities that the City Council has determined to be
necessary in order to provide the minimum level of service necessary to protect or
promote the public health, safety, and welfare and to assure the quality of life currently
enjoyed by the citizens of North Richland Hills. It is the intent of these regulations that
no development occur until and unless these minimum levels of service are met.
Therefore, each subdivision in the City shall be required to dedicate, construct and/or
upgrade required facilities and infrastructure to a capacity that meets these minimum
levels.
(b) For each category of public infrastructure, a minimum standard of infrastructure,
and in some cases, service level, has been developed based upon historic studies and
construction projects of the City and other cities. These minimum standards take into
consideration the soil conditions and topographic configuration of the City, the use and
impact analyses of the North Central Texas Council of Governments in developing
standard specifications for public works installation, and other historical use and
performance experiences of the City that reflect the minimum level of facilities and
services that must be built to meet the health, safety and welfare of the citizens of North
Richland Hills.
(c) In order to maintain prescribed levels of public facilities and services for the
health, safety and general welfare of its citizens, the City may require the dedication of
easements and rights-of-way and/or construction of on-site and/or off-site public works
improvements for water, wastewater, road, drainage or park facilities to serve a
proposed subdivision, or require the payment of fees in lieu thereof. If adequate levels
of public facilities and services cannot be provided concurrent with the schedule of
development proposed, the City may deny the subdivision until the public facilities and
services can be provided, or require that the development be phased so that the
availability and delivery of facilities and services coincides with the demands for the
facilities created by the development.
(d) Whenever the City Council determines that levels of service in excess of these
minimum standards are necessary in order to promote the orderly development of the
City, the owner shall qualify for reimbursement for any costs in excess of the minimum
levels of service through City participation, to the extent funds are available by a pro
rata reimbursement policy or other means adopted by the City.
Sec 110-454: Adequacy of Specific Facilities.
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(a) All lots to be platted shall be connected to a public water system which has
capacity to provide water for domestic use and emergency purposes, including
adequate fire protection.
(b) All lots to be platted shall be served by an approved means of wastewater
collection and treatment. The City may require the phasing of development and/or
improvements in order to maintain adequate wastewater capacity.
(c) Proposed roads shall provide a safe, convenient and functional system for
vehicular, bicycle and pedestrian circulation and shall be properly related to the
applicable thoroughfare plan and any amendments thereto, and shall be appropriate for
the particula r traffic cha racteristics of each proposed subdivision or development. New
subdivisions shall be supported by a thoroughfare network having adequate capacity,
and safe and efficient traffic circulation. Each development shall have adequate access
to the thoroughfare network. The city may require the phasing of development a nd/or
improvements in order to maintain a safe, convenient and functional system of roads for
ve hicu la rand pedestria n circulation.
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(d) Drainage improvements serving new development shall be designed to prevent
overloading the capacity of the downstream drainage system. The City may require the
phasing of development, the use of control methods such as retention or detention, the
construction of off-site drainage improvements, or drainage impact fees in order to
mitigate the impacts of the proposed subdivision.
Sec. 110-455: Improvement of Adjacent and Abutting Existing Streets and
Uti lities.
In the case of existing adjacent or abutting roads, the City may require that the entire
right-of-way be dedicated and/or improved to the City's design standards, based upon
factors including the impact of the proposed subdivision on the road, safety to the
traveling public, conditions and life expectancy of the road, the impact of the proposed
subdivision on other roads, the timing of this development in relation to need for
improving the road, the impact of the traffic on the road and City's roadway system as a
whole.
Sec. 110-456. Timing of Dedication and Construction.
(a) The City shall require an initial demonstration that a proposed subdivision shall
be adequately served by public facilities and services at the time for approval of the first
development application that portrays a specific plan of development, including but not
limited to a petition for establishing a planned development zoning district, or other
overlay zoning district; or a developer's agreement; or an application for a preliminary or
fina I plat.
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(b) The obligation to dedicate rights-of-way and/or to construct one or more public
works improvements to serve a new subdivision may be deferred until approval of a
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subsequent phase of the subdivision, at the sole discretion of the city's engineer, upon
written request of the property owner, or at the City's own initiative. As a condition of
deferring the obligation, the City may require that the subdivider include provisions in
the developer's agreement, specifying the time for dedication of rights-of-way for and/or
construction of public works improvements serving the subdivision.
Sec. 110-457. Proportionality Determination.
(a) Prior to a decision by the Planning and Zoning Commission on a preliminary plat
a pplication, or if no preliminary plat a pplication is required, on a final plat application, or
any other application for which an exaction requirement is approved as a condition of
approval, the city's engineer shall prepare a written statement affirming that each
exaction requirement to be imposed as a condition of plat approval or permit approval is
roughly proportionate to the demand created by the subdivision or development on the
applicable public facilities system of the City, taking into consideration the nature and
extent of the development proposed. In ma king this determination, the city's engineer
may consider the following:
(1) categorical findings of the North Central Texas Council of Governments in
developing standard specifications for public infrastructure improvements;
(2) the proposed and potential use of the land;
(3) the timing and sequence of development in relation to availability of
adequate levels of public facilities systems;
(4) impact fee studies, traffic impact studies, drainage studies or other studies
that measure the demand for services created by developments and the impact on the
city's public facilities system;
(5) the function of the public infrastructure improvements in serving the
proposed subdivision or development;
(6) the degree to which public infrastructure improvements necessary to serve
the proposed subdivision are supplied by other developments;
(7) the anticipated participation by the City in the costs of necessary public
infrastructure improvements;
(8) the degree to which acceptable private infrastructure improvements to be
constructed and maintained by the applicant will offset the need for public infrastructure
improvements;
(9) any reimbursements for the costs of public infrastructure improvements for
which the proposed subdivision is eligible; and/or
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(10) any other information relating to the impacts created by the proposed
subdivision or development on the city's public facilities systems.
(b) Based upon the proportionality determination, the city's engineer shall affirm that
the exaction requirements of the Subdivision Ordinance, or other ordinance requiring
the permit, as applied to the proposed subdivision or development, do not impose costs
on the applicant for public infrastructure improvements that exceed those roughly
proportionate to the impact of the proposed subdivision or development.
(c) The city's engineer may require that the applicant, at its expense, submit any
information or studies that may assist in making the proportionality determination.
Sec. 110-458: Defi nitions.
For purposes of this ordinance, the following terms have the following definitions:
CITY'S ENGINEER: An engineer employed within the public works department and
licensed by the State of Texas shall be responsible for determining the approved means
of wastewater collection and treatment. Such engineer is referred to in this Article as
the "city's engineer.
EXACTION REQUIREMENT: a requirement imposed as a condition for approval of a
plat, preli m ina ry plat, building perm it, pia nned deve lopment district or other
development application to:
(1) dedicate an interest in land for a public infrastructure improvement;
(2) construct a public infrastructure improvement~ or
(3) pay a fee in lieu of constructing a public infrastructure improvement.
PUBLIC INFRASTRUCTURE IMPROVEMENT: a water, wastewater, roadway,
drainage or park facility that is a part of one or more of the City's public facilities
systems.
PUBLIC FACILITIES SYSTEM: with respect to water, wastewater, roadway, drainage
or parks, the facilities owned or operated by or on behalf of the City to provide services
to the public, including existing and new developments and subdivisions.
Sec. 110-459: Rough Proportionality Determination.
(a) The Planning and Zoning Commission and City Council shall consider the City's
engineer's report concerning the proportionality of the exaction requirements in making
a decision on a plat application. The Commission and the City Council may consider
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the city's engineer's report in granting a variance to the requirements of the Subdivision
Ordinance.
(b) The City official responsible for issuing a permit for which an exaction
requirement is imposed as a condition of approval shall consider the city's engineer's
report concerning the proportionality of the exaction requirements in making its decision
as to whether to grant the permit.
Sec. 110-460. Rough Proportionality Appeal.
(a) An applicant for a preliminary or final plat or for a permit which imposes an
exaction requirement as a condition of approval may file an appeal to contest any
exaction requirement, other than impact fees, imposed as a condition of approval or in
which the failure to comply is grounds for denying the plat application pursuant to the
Subdivision Ordinance.
(b) The purpose of a proportionality appeal is to assure that an exaction requirement
imposed on a proposed plat or development as a condition of approval does not result
in a disproportionate cost burden on the applicant, taking into consideration the nature
and extent of the demands created by the proposed subdivision or development on the
City's public facilities systems.
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Sec. 110-461. Appeals Procedure.
(a) An applicant for a preliminary or final plat or an applicant seeking approval for
any other permit or zoning for which an exaction requirement is imposed shall file a
written appeal with the City Secretary within 10 days of the date the Planning and
Zoning Commission or the city official responsible for issuing the permit takes action
applying the exaction requirement. This may include denial of the permit or plat. The
applicant shall submit 15 copies of the appeal.
(b) A separate appeal form shall be submitted for each exaction requirement for
which relief is sought. The City Secretary shall forward the appeal to the City Council
for consideration.
(c) The applicant may request postponement of consideration of the applicant's plat
application by the City Council pending preparation of the study required by subsection
(f), in which case the applicant shall also waive the statutory period for acting upon a
plat for the time necessary for the City Council to decide the appeal.
(d) No developer's agreement may be executed by the City until the time for appeal
has expired or, if an appeal is filed, until the City Council has made a determination with
respect to the appeal.
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(e) The appeal shall state the reasons that application of the exaction requirement is
not roughly proportional to the nature and extent of the impact created by the proposed
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subdivision or development on the City's public facilities systems and does not
reasonably benefit the proposed subdivision or development.
(f) The appellant shall submit to the city's engineer 15 copies of a study in support
of the appeal that includes, with respect to each specific exaction requirement
appealed, the following information within 30 days of the date of appeal, unless a longer
time is requested:
(1) total capacity of the City's water, wastewater, roadway, drainage, or park
system, as applicable, to be utilized by the proposed subdivision or development,
employing standard measures of capacity and equivalency tables relating the type of
development proposed to the quantity of system capacity to be consumed by the
subdivision. If the proposed subdivision is to be developed in phases, such information
also shall be provided for the entire development, including any phases already
developed;
(2) total capacity to be supplied to the City's public facilities systems for water,
wastewater, roadway, drainage or parks, as applicable, by the exaction requirement.
This information shall include any capacity supplied by prior exaction requirements
imposed on the development;
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(3) comparison of the capacity of the applicable City public facilities systems
to be consumed by the proposed subdivision or development with the capacity to be
supplied to such systems by the proposed exaction requirement. In making this
comparison, the impacts on the City's public facilities systems from the entire
subdivision or development shall be considered;
(4) the amount of any City participation in the costs of oversizing the public
infrastructure improvements to be constructed by the applicant in accordance with the
City's requirements;
(5) comparison of the minimum size and capacity required by City standards
for the applicable public facilities systems to be utilized by the proposed subdivision or
development with the size and capacity to be supplied by the proposed exaction
requirement; and
(6) any other information that shows the alleged disproportionality between
the impacts created by the proposed development and the exaction requirement
imposed by the City.
(g) The city's engineer shall evaluate the appeal and supporting study and shall
make a recommendation to the City Council based upon the city's engineer's analysis of
the information contained in the study and utilizing the same factors considered by the
engineer in making the original proportionality determination.
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Sec. 110-462. City Council Decision.
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(a) The City Council shall decide the appeal within 30 days of the date of final
submission of any evidence by the applicant. Upon receipt of the final submission of
evidence from the applicant, the City Secretary shall schedule a time and date for the
City Council to consider the appeal and shall cause the applicant to be notified at the
address specified in the appeal form of the time, date and location at which the City
Council shall consider the appeal.
(b) The applicant shall be allotted time, not to exceed 30 minutes, to present
testimony at the City Council meeting. The Council shall base its decision on the
criteria listed in Sections 11 0-457(a) and 110-461 (f) and may:
(1) deny the appeal and impose the exaction requirement in accordance with
the city's engineer's recommendation or the Planning and Zoning Commission's
decision on the plat or other development application; or
(2) grant the appeal, and waive in whole or in part an exaction requirement to
the extent necessary to achieve proportionality; or
(3) grant the appeal, and direct that the City participate in the costs of
acquiring land for or constructing the public infrastructure improvement.
(c) In deciding an appeal, the City Council shall determine whether application of the
exaction requirement is roughly proportional to the nature and extent of the impact
created by the proposed subdivision on the City's public facilities systems for water,
wastewater, roadway, drainage, or park facilities, as applicable, and reasonably benefits
the subdivision. In making such determination, the Council shall consider:
(1) the evidence submitted by the applicant;
(2) the city's engineer's report and recommendation, considering in particular
the factors identified in Sections 11 0-457(a) and 110-461 (f); and
(3) if the property is located within the City's extraterritorial jurisdiction, any
recommendations from the county.
(d) The City Council may require the applicant or the city's engineer to submit
additional information that it deems relevant in making its decision.
Sec. 110-463. Action following Decision of City Council.
(a) If the City Council finds in favor of the applicant and waives the exaction
requirement as a condition of plat approval, or modifies the exaction requirement to the
extent necessary to achieve rough proportionality, the applicant shall resubmit the plat
application to the Planning and Zoning Commission or City official responsible for
issuing the permit within 30 days of the date the City Council takes action, with any
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modifications necessary to conform the plat with the City Council's decision. The
applicant shall not be deemed to have prevailed in the event that the City Council
modifies the exaction requirement.
(b) If the City Council finds in favor of an applicant for any other permit and waives
the exaction requirement as a condition of permit approval, or modifies the exaction
requirement to the extent necessary to achieve rough proportionality, the applicant shall
resubmit the permit application to the responsible official within 30 days of the date the
City Council takes action, with any modifications necessary to conform the application
with the City Council's decision. Failure to day so will result in the expiration of any
relief granted by the City Council.
(c) If the City Council denies the appeal and the applicant has executed a waiver of
the statutory period for acting upon a plat, the City shall place the plat application on the
agenda of the Planning and Zoning Commission within 30 days of the City Council's
decision.
(d) If the rough proportionality appeal was submitted appealing the imposition of an
exaction requirement for a plat application, and City Council grants relief to an applicant
but the applicant fails to conform the plat to the City Council's decision within the 30 day
period provided, the relief granted by the City Council on the appeal shall expire.
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(e) If the plat application is modified to increase the number of residential dwelling
units or the intensity of non-residential uses, the City Manager or city's engineer may
require a new study to validate the relief granted by the City Council.
(f) If the plat application for which relief was granted is denied on other grounds, a
new appeal shall be required on any subsequent application.
Sec. 110-464: Appeal of City Council Decision.
An applicant may appeal the decision of the City Council to the county or district court of
the county in which the development is located within 30 days of the date that the
Council issues its final decision. In the event that the applicant prevails in such action,
the applicant will be entitled to attorneys' fees and costs, including expert witness fees.
Sec. 110-465: Miscellaneous.
(a) This ordinance shall be cumulative of all provisions of ordinances of the City of
North Richland Hills, Texas, except where the provisions of this ordinance are in direct
conflict with the provisions of such ordinances, in which event the conflicting provisions
of such ordinances are hereby repealed to the extent of such conflict.
(b) It is hereby declared to be the intention of the City Council that the phrases,
clauses, sentences, paragraphs and sections of this ordinance are severable, and if any
phrase, clause, sentence, paragraph or section of this ordinance shall be declared
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unconstitutional by the valid judgment or decree of any court of competent jurisdiction,
such unconstitutionality 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
unconstitutional phrase, clause, sentence, paragraph or section.
(c) All rights and remedies of the City are expressly saved as to any and all
violations of the provisions of Chapter 110 of the Code of Ordinances, or any other
ordinances affecting subdivision regulations 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.
(d) This ordinance shall be in full force and effect from and after its passage.
PASSED AND APPROVED on the
day of June, 2006.
CITY OF NORTH RICHLAND HILLS
By:
Oscar Trevino, Mayor
ATTEST:
Patricia Hutson, City Secretary
APPROVED AS TO FORM AND LEGALITY:
George A. Staples, Attorney
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INFORMAL REPORT TO MAYOR AND CITY COUNCIL
No. IR 2006-064
Date: OS/22/2006
Subject: Red Light Enforcement (Page 1 of 2)
As our roadways become more congested, motorists begin to look for opportunities to
avoid those traffic devices that might cause them to be delayed. Unfortunately, often
these actions result in unsafe measures that ca n ca use accidents. One of the
contri buting factors to ma ny accidents througho ut the city is motorist fa ili ng to stop at
red lights. Du ring 2005 the Po lice De pa rtme nt responded to 1573 accidents; 462 of
these involved an injury. While the exact number of accidents directly contributed to
red lights is difficult to obtain, we estimate that approximately 5-10% fall into this
category. This results in significant property damage as well as the time necessary to
respond a nd investigate the accident.
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Many cities across the State have begun installing cameras at selected high accident
locations in an attempt to reduce the number of accidents. While still a relatively recent
practice, several of the cities have seen reductions as high as 40-500/0 in related
crashes at these intersections. The system is based on the issuance of a civil fine to
the registered owner of the vehicle. There are no criminal penalties and any
enforcement action does not impact an individual's driver's license.
The cameras are set at specific locations based on the accident data available.
Cameras are placed in conspicuous areas and often have signage accompanying
them to alert the motorist. This helps to serve as an additional deterrent to the
damaging conduct. Once the traffic signal begins to cycle the camera records any
vehicle that is within a certain distance of the stop line. The camera will continue to
take photographs if the vehicle continues beyond the stop line after the light turns red.
If the vehicle stops, then nothing is done. The camera only ta kes a picture from the
rear of the vehicle in order to capture the license plate. It is assumed that the owner of
the vehicle is responsible for the vehicle and whoever may be operating it at that time.
If a violation is detected by the system, then a digital image is downloaded to a server
where the picture is reviewed by a police officer to verify the violation. If a violation is
confirmed then a citation is sent to the registered owner. The amount being charged by
most jurisdictions is $75.00 for the first occurrence. There are provisions to contest the
violation or file an appeal due to unusual circumstances. The installation, maintenance
and upkeep of the system as well as the mailing of the citation is done on a contract
basis. There are currently several companies in Texas operating this type of system in
various jurisdictions. The costs can be done either on a flat charge or based on a
ISSUED BY THE CITY MANAGER
NORTH RICHlAND HillS, TEXAS --
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INFORMAL REPORT TO MAYOR AND CITY COUNCIL
Date: OS/22/2006
Subject: Red Light Enforcement (Page 2 of 2)
percentage of the violations. In most cities, any funds derived from this program are
earmarked exclusively for law enforcement and traffic control improvements.
In addition to the deterrent factor, most of the available systems can be utilized in
accident investigations. The system will retain a short time period of recording before it
is erased. If an accident occurs at an intersection, often it will be recorded on the
system and can be accessed for the investigation. Also, the system can be connected
to a monitor in Police communications that would allow them to view the intersection
after an accident to better and more ra pidly send responding emergency units.
There are numerous benefits to the City of North Richland Hills and its residences
through the use of an automated red light enforcement system. The Police
Department, Public Works, Courts and City Attorney have all discussed the program
and believe that it should be considered.
_ Respectfully Submitted,
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Jimmy Perdue
Chief of Police
- ISSUED BY THE CITY MANAGER
NORTH RICHlAND HillS, TEXAS --
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A.1
A.2
A.3
A.4
A.5
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 76182
Monday, May 22, 2006
7:00 P.M.
Call to Order - tv1avor Oscar Trevino
Invocation - Councílvvornan COr1îPton
PledÇle - Councilvv'ornan Conlpton
Special Presentation(s) and Recoqnition(s)
Yard of the Month Awards
Specia I Presentation(s) and RecoÇ1nítion(s): IR 2006-059 Teen Court
Schola rship Presentations
Special Presentatíon(s) and Recoqnition(s) - Proclamation
National Public Works Week - Presented by Mayor Pro Tem Welch
A.6 GN 2006-035 C=:anvassíng f\~ay 13, 2006 r\~unicipal Election - Resolution No.
2006-035
Following Canvass there will be a Presentation to outgoing City Council
Members.
A.7 GN 2006-036 Oath of Offíce
A.8 Recess for Brief Reception for Outgoing and Ne\AJly Elected Officials (15 Minutes)
A.9 Executive Session. The City Council nlay enter into closed Executive Session to
discuss the follovvíng:
Deliberate the Lease of Municipal Real Property for Mineral Development
Pursuant to Section 551.072 of the Texas Government Code.
A.10 Citizens Presentation
An opportunity for citizens to address the City Council on matters which are not
scheduled for consideration by the City Councilor 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.
A.11 GN 2006-042 Election of Mayor Pro Tern
e A.12 Rernova I of Itern(s) frorn Consent Agenda
B.O CONSIDER APPRO\lAL OF CONSENT AGENDA ITEr\AS
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 Approva I of rv1 inutes of ~J1av 8, 2006 City Council r\~eetinq
B.2 PLI 2006-041 Avvard Bid for Annual Contract to Supply Top Soil. Sand and Flex
Base to HJG TruckinÇJ Cornpany - Resolution No. 2006-041
B.3 PLI 2006-043 Avvard Bid to TruGreen Landcare for the RìÇlhts-of-\fVay Contract
tv10v\/íng - Resolution No 2006-046
B.4 PLI 2006-042 AVv/ard of Contract to Ha\A/k Construction in the Anlount of $31.025
for the I nstaflation of a rv1asonry Fence at Liberty Park - Resolution f\Jo. 2006-043
C.O PLIBLIC HE.ARINGS
No items for this category.
e 0.0 PLANNlf\jG AND DEVELOPMENT
Items to follow do not require a public hearing
No items for this category.
E.O PLIBLIC WORKS
E.1 PVV 2006-015 AVva rd of EnÇJineerinQ AQreernent to SchrickeL Rollìns and
Associates. Inc. for ttle Boulevard 26 Intersection Irnprovernents (Glenvievv Drive .'
and Rufe Snovv Drive)
F.O GENERAL ITEr\1S
F.1 GN 2006-040 Consider a Resolution in Support of CAPP Efforts to Contract for
Long-Terrll Capacity for Electrical PO\^ler Needs - Resolution No. 2006-044
F.2 Gr\J 2006-028 Alternative Retirernent Prograrn to Social Security for Part-Tirne
Ernployees - Resolution No. 2006-025
F.3 PU 2006-037 A\AJard of the Professional Services Contract to Lopez Garcia
Group in the a mount of $117,150 for the Boulevard 26 Trail Project - Resolution
No. 2006-045
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F.4 PLt 2006-038 Award Bid for M inera I Lease of Northfield Park - Resolution No.
2006-036
F.5 PU 2006-039 Award Bid for f\Aineral Lease of Rictlfield Park - Resolution No.
2006-037
F.6 PU 2006-040 AVvard Bid for tv1ineral Leases of Fossil Creek Park and Linda
Spurlock Park - Resolution No. 2006-038
F.7 Gf\J 2006-034 RernovaL Irnpoundnlent of Abandoned Vehicles on Hígh\AJays-
Ordinance f\Jo. 2883
F.B GN 2006-041 Ordinance Prot'libitinq tv1inors' Possession of Aerosol
Paint/f\Aarkers: ProvidinQ Notice and Abatement of Graffiti - Ordinance No. 2884
F.9 Gf\J 2006-038 Approve Investrnent Strategy and Investrl1ent Policy Update-
Resolution No. 2006-039
F.10 PLI 2006-044 Authorize Contract vvitt'l Chanlpion Turf Farnls for the Greens
Reconstruction at Iron Horse Golf Course - Resolution r\Jo, 2006-041
F.11 GN 2006-044 Consider Appointrnents to Boulevard 26 Oversiqht Cornrnittee
F.12 Inforrnation and Reports - Councllvvoman Cornpton
F.13 Adìournnlent
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DepartmentCity Secretary
Presented by:
CITY OF
NORTH RICHLAND HILLS
Council Meeting Date:5-22-2006
Agenda NO.A.O
Subject Call to Order - Mayor Oscar Trevino
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Department City Secretary
Presented by:
CITY OF
NORTH RICHLAND HILLS
Council Meeting Date: 5-22-2006
Agenda No. Ä.1
Subject: Invocation - Councilwoman Compton
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Depa rtme nt: City Secreta ry
Presented by:
CITY OF
NORTH RICHLAND HILLS
Council Meeting Date: 5-22-2006
Agenda No. A.2
Subject: Pledge - Councilwoman Compton
CITY OF
NORTH RICHLAND HILLS
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Department City Secretary
Presented by: Micah Beck & Councilman Whitson
Council Meeting Date: 5-22-2006
Agenda No. A.3
Subject Special Presentation(s) and Recognition(s)
Yard of the Month Awards
YARD-OF-THE-MONTH Awards
May, 2006
AR EA 1 Michael & Nancy HaYJ 3701 Billie Faye
AR EA 2 Danny & Lisa BlackmonJ 6732 Victoria Avenue
AR EA 3 Mike & Pat WachterJ 6016 Iron Horse Dr.
AREA 4 Doug & Cindy StreaterJ 7321 Spurgeon Ct.
e AR EA 5 Bill & Sherilyn BurnsJ 8024 Bridge Street
AR EA 6 Jim & Judith WatkinsJ 6967 Crabtree Lane
AREA 7
Traci HookerJ 9140 High Oaks Dr.
AREA 8
Ricky and Cindy AddingtonJ 7840 Waterford Lane
AREA 9
Matt & Janelle PetzoldJ 8332 Park Brooke Drive
Business Landscape Winner
Taco BuenoJ 6221 Precinct Line
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Department: Municipal Court
Presented by:
CITY OF
NORTH RICHLAND HILLS
Council Meeting Date: 5-22-2006
Agenda No. A.4
Subject Special Presentation(s) and Recognition(s): IR 2006-059 Teen Court
Scholarship Presentations
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INFORMAL REPORT TO MAYOR AND CITY COUNCIL
No. IR 2006-059
Date: May 22, 2006
Subject: Teen Court Scholarship Presentations
The North Richland Hills Teen Court was established in 1988. Since its inception,
Teen Court has continued to grow utilizing teen and adult volunteers. The teen
volunteers devote many hundreds of hours to assure the success of our program.
Teen Court Scholarship Awards were implemented in the program to show our
appreciation to teen volunteers for their time and commitment to this program. Teen
Volunteers must meet strict criteria to be eligible to apply for this scholarship. The
scholarships are awarded based on the following criteria: years of service, attendance,
residency, professionalism, and a 500-750 word essay.
Each schola rship recipient has been awarded a $1000.00 scholarship to his/her
chosen technical school, college or university. The Teen Court Advisory Board is
proud to announce the recipients of the 2005-2006 Teen Court Scholarships. They are
as follows:
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Paige Ammons
Brady Cooper
Southwestern Univ.
University of Texas
Richland High School-Top 10%
Richla nd High School-Sa lutatoria n
The Teen Court Advisory Board would like to thank the City Council for their continued
support of this program.
Respectfully Submitted,
Debbie Durko
Court Administrator
- ISSUED BY THE CITY MANAGER
NORTH RICHlAND HillS, TEXAS
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DepartrnentCity Secretary
Presented by:
CITY OF
NORTH RICHLAND HILLS
Council Meeting Date:5-22-2006
Agenda NO.A.5
Subject Special Presentation(s) and Recognition(s) - Proclamation
National Public Works Week - Presented by Mayor Pro Tern Welch
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CITY OF
NORTH RICHLAND HILLS
Department: City Secretary
Presented by:
Council Meeting Date: 5-22-2006
Agenda No. A.6
Subject GN 2006-035 Canvassing May 13, 2006 Municipal Election - Resolution No.
2006-035
Following Canvass there will be a Presentation to outgoing City Council Members.
Resolution No. 2006-035 canvasses the votes cast at the Municipal Election held May
13, 2006 and declares the winning candidates for Mayor and Council Places 2, 4, and 6.
Attached are the unofficia I election results received from the County on May 15. The
results received are different from the results received and reported by my office on
Election Night. The City's election information was delivered directly to the County by
the election officia Is and was ta bulated and released by the County after my office
closed. The City released information based on the preliminary results provided by the
election officials. The unofficial results posted to the County website Election night and
reported in the media for our City is the same information that I received on Monday.
The County has advised that other entities also encountered the same problem and that
the discrepancy is due to the unfamiliarity with the reports produced by the new voting
equipment.
Recommendation:
To approve Resolution No. 2006-035
.NI~H
RESOLUTION NO. 2006-035
WHEREAS, an election was duly held in the City of North Richland Hills on the 13th
day of May, 2006, to elect a Mayor a nd City Council places 2, 4, and 6;
and,
WHEREAS, the City Council has met and canvassed the votes cast in such election;
and,
WHEREAS, such canvass shows the following results:
Mavor
Number of Votes
Nancy Bielik
Oscar Trevino
1245
2466
City Council - Place 2
Jo Cox
Ken Sapp
1355
2251
.
City Council - Place 4
Tim Ba rth
2851
City Council - Place 6
Suzette Christopher
Scott Turnage
1281
2343
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCil OF THE CITY OF
NORTH RICHlAND HillS, TEXAS:
Section 1: THAT the above canvass be, and the same is hereby approved.
Section 2: THAT the following are, and the same are hereby declared to have been
elected to the offices listed below to serve until May of 2008, or until their
successors are duly elected and qualified.
Mavor
Oscar Trevino
.
City Council - Place 2
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Ken Sapp
City Council - Place 4
Tim Barth
City Council - Place 6
Scott Turnage
AND IT IS SO RESOLVED.
PASSED on the 22nd day of May, 2004.
CITY OF NORTH RICH LAND HILLS
By:
Oscar Trevino, Mayor
ATTEST:
Patricia Hutson, City Secreta ry
e APPROVED AS TO FORM AND LEGALITY:
George A. Staples, Attorney
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UNOFFICIAL RESULTS RECEIVED FROM TARRANT COUNTY
ELECTIONS
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DepartmentCity Secretary
Presented by:
CITY OF
NORTH RICHLAND HILLS
Council Meeting Date:5-22-2006
Agenda NO.A.7
Subject GN 2006-036 Oath of Office
The Oath of Office will be administered to each of the newly elected officials.
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In the name and by the authority of
The State of Texas
OATH OF OFFICE
I, , solemnly swear (or
affirm), that I will faithfully execute the duties of the office of City Council, Place
_____ of the City of North Richland Hills of the State of Texas, and will to the
best of my ability preserve, protect, and defend the Constitution and laws of the
United States and of this State, so help me God.
Aff ia nt
SWORN TO and subscribed before me by affiant on this 22nd day of May,
2006.
Signature of Person Administering Oath
(Seal)
Printed Name
Title
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DepartmentCity Secretary
Presented by:
CITY OF
NORTH RICHLAND HILLS
Council Meeting Date:5-22-2006
Agenda No.A.8
Subject: Recess for Brief Reception for Outgoing and Newly Elected Officials (15
Minutes)
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Department: City Secretary
Presented by:
CITY OF
NORTH RICHLAND HILLS
Council Meeting Date:5-22-2006
Agenda NO.A.9
Subject: Executive Session. The City Council may enter into closed Executive Session
to discuss the following:
Deliberate the Lease of Municipal Real Property for Mineral Development Pursuant to
Section 551.072 of the Texas Government Code.
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CITY OF
NORTH RICHLAND HILLS
Department: City Secretary
Presented by:
Council Meeting Date:5-22-2006
Agenda NO.A. 10
Subject: Citizens Presentation
An opportunity for citizens to address the City Council on matters which are not
scheduled for consideration by the City Councilor 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.
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CITY OF
NORTH RICHLAND HILLS
DepartmentCity Secretary
Presented by:
Council Meeting Date:5-22-2006
Agenda NO.A.11
Subject GN 2006-042 Election of Mayor Pro Tern
The Charter states that the Mayor Pro Tern shall be selected from the seven council
members at the first regular meeting following the City's general election. Since this is
the first regular meeting following the May 13 general election, the City Council must
elect a Mayor Pro Tern at this Council meeting.
Recommendation:
To elect a Mayor Pro Tern
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Department: City Secretary
Presented by:
CITY OF
NORTH RICHLAND HILLS
Council Meeting Date:5-22-2006
Agenda NO.A.12
Subject: Removal of Item(s) from Consent Agenda
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CITY OF
NORTH RICHLAND HILLS
Department: City Secretary
Presented by:
Council Meeting Date: 5-22-2006
Agenda No. B.O
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.
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CITY OF
NORTH RICHLAND HILLS
DepartmentCity Secretary
Presented by: Patricia Hutson
Council Meeting Date:5-22-2006
Agenda NO.B.1
Subject: Approval of Minutes of May 8, 2006 City Council Meeting
Recommendation:
To approve the minutes of the May 8, 2006 City Council meeting.
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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 - MAY 8, 2006
WORK SESSION
The City Council of the City of North Richla nd Hills, Texas met in a Work Session on the
8th day of May, 2006 at 6:20 p.m. in the Pre-Council Room prior to the 7:00 regular
Council meeting.
Present
Osca r Trevino
Tim Welch
John Lewis
Jo Cox
JoAnn Johnson
David Whitson
Nancy Bielik
Staff Members: Larry J. Cunningham
Ogden Bo Bass
Richard Torres
Karen Bostic
Patricia Hutson
George Staples
Mary Edwards
La rry Koo nce
Mike Cu rtis
Thomas Powell
Vickie Lottice
Andy Jones
John Pitstick
Chris Swartz
Richard Abernethy
Absent:
Suzy Compton
Mayor
Mayor Pro Tern
Councilman
Councilwoman
Councilwoman
Councilman
Councilwoman
City Manager
Assistant City Manager
Assistant City Manager
Managing Director Administrative/Fiscal Services
City Secreta ry
City Attorney
Pu blic I nformation Office r
Finance Director
Public Works Director
Director of Support Services
Parks & Recreation Director
Fire Chief
Director of Planning & Development
Aquatic Park Manager
Assistant to City Manager
Councilwoman
Call to Order
Mayor Trevino called the Work Session to order at 6:20 p.m.
A.O Discuss Items from Reaular Citv Council Meetina
Agenda Item B-2, PW 2006-013 - Councilman Lewis questioned if item number 7 under
Stage 1 was still valid: Request City of Watauga adhere to the same restrictions as
e NRH retail customers. The Public Works Director advised that Watauga is required to
follow the same ordinances as North Richland Hills. North Richland Hills acts as the
wholesale supplier to Watauga and whenever North Richland Hills implements any of
the stages, Watauga is also required to follow the same restrictions.
Agenda Item B-3, PW 2006-14 - Mr. Cunningham reported to Council that
Councilwoman Cox had called and questioned the wording on the release. Mr. Staples
subsequently made some clarifications to the release a nd Council has been provided
with a revised release. Approval of the Consent Agenda will include the revised
release.
B.1 IR 2006-055 - Presentation of Proposed Chanqes to International Fire Code
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Chief Jones presented an overview of changes to the Fire Code. The current Code is
the 2000 edition of the International Fire Code with the 2002 updated International Fire
Code Amendments and the North Central Texas Council of Governments (NCTCOG)
amendments. The proposed Code to be considered is the 2003 International Fire Code
with the NCTCOG amendments. Most of the differences between the two codes are
organization and formatting changes. Chief Jones highlighted some of the additional
requirements in the Code and answered questions from the Council. Chief Jones
advised the 2006 Code will be available for Staff review in the next 30 days. Staff will
be reviewing it within 90 days to determine the possibility of bringing the 2006 Code
forward for consideration rather than the 2003 Code. Council will be advised of Staff's
recommendation after their review.
B.2 The Council may enter into closed Executive Session to discuss the followinq:
Personnel Matters Pursuant to Section 551.074 of the Texas Government Code
Appointment of Assistant City Secretary
Mayor Trevino announced at 6:33 p. m. that the Council would adjourn to Executive
Session as authorized by Section 551.074 of the Texas Government Code to discuss
the appointment of Assistant City Secretary.
C.O Adjournment
Mayor Trevino announced at 6:37 p.m. that the Council would adjourn to the regular
Council meeting.
REGULAR COUNCIL MEETING
A.O
CALL TO ORDER
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ROLL CALL
Present
Oscar Trevino
Tim Welch
John Lewis
Jo Cox
JoAnn Johnson
Nancy Bielik
David Whitson
Mayor
Mayor Pro Tem
Councilman
Councilwoman
Councilwoman
Councilwoman
Councilman
Sta ff:
Larry J. Cunningham
Ogden Bo Bass
Richard Torres
Patricia Hutson
George Staples
City Manager
Assistant City Manager
Assistant City Manager
City Secreta ry
Attorney
Absent:
Suzy Compton
Councilwoman
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A. 1
I NVOCA TION
Councilman Whitson gave the invocation.
A.2
PLEDGE OF ALLEGIANCE
Councilman Whitson led the pledge of allegiance.
A.3
SPECIAL PRESENTATION(S) AND RECOGNITION(S)
Mr. Dan Quinto and Ms. Kennis Ketchum briefed the Council on the Venue at Home
Town. The proposed site plan was reviewed and the Schedule Summary discussed.
Building One and leasing office are scheduled to open March 2007, first three buildings
will open in June 2007 and the last three buildings are scheduled for August 2007. The
groundbreaking is scheduled for May 26 at 11 :00 a.m. in Home Town at Highway 26.
A.4
CITIZENS PRESENTATION
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Ms. Anita McNeese, 7717 Terry Drive, expressed concern with the number of
businesses leaving the City and the empty buildings. Ms. McNeese also expressed
concern with the number of city monuments signs in the City and the location of the
monuments.
Mayor Trevino asked the City Ma nager's office to send a letter to Ms. McNeese
explaining the business closings and a map of North Richland Hills showing the
entrances to the City and explain why the monument signs are at those locations.
Ms. Norma Lewis, 7708 Turner Street, advised she recently attended a volunteer
luncheon at the Senior Center a nd collected some of the door prizes for the luncheon.
Ms. Lewis recognized some of the businesses who contributed to the door prizes and
encouraged shoppers to remember the contributors.
Ms. Laverne O'Steen, 8429 Emerald Circle, referred to her six Citizens Presentation
appearances since the January 9,2006 meeting and commented on the need to act on
the Emerald Lakes problems.
Mayor Trevino asked Attorney Staples if the City had responded to all of Ms. O'Steen's
requests a nd letters.
M r. Sta pies advised the City ha s responded to a II inq uiries and Ms. 0' Steen ha s been
advised repeatedly that this is not a city issue.
Mr. William Green, 8304 Euclid Avenue, commented that he moved to North Richland
Hills because of the development of the City and expressed appreciation for the quality
of life ava i la b Ie to th e c itiz ens. .
Ms. Cindy Martin, 6062 Lakeway Mews, spoke on behalf of ten individuals in the
audience. Ms. Martin presented to Councilwoman Johnson a tribute of her 15 years of
service to the City.
A.5
REMOVAL OF ITEM(S) FROM THE CONSENT AGENDA
None.
B.O
APPROVAL OF CONSENT AGENDA ITEMS
APPROVED
B.1 APPROVAL OF MINUTES OF THE APRIL 24, 2006 CITY COUNCIL MEETING
·
B.2 PW 2006-013 CONSIDER UPDATE OF WATER CONSERVATION AND
EMERGENCY WATER DEMAND/DROUGHT CONTINGENCY PLAN-
ORDINANCE NO. 2882.
B.3 PW 2006-014 PARTIAL RELEASE OF LIEN ON GRAHAM PROPERTY _
RESOLUTION NO. 2006-024
B.4 PU 2006-030 APPROVE PURCHASE OF 2006 POLICE TAHOE FROM LYNN
SMITH CHEVROLET IN THE AMOUNT OF $33,156 THROUGH THE STATE
OF TEXAS INTERLOCAL PURCHASING AGREEMENT
B.5
B.6
B.7
B.8
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PU 2006-032 AUTHORIZATION TO EXTEND THE CONTRACT WITH FROST
BANK FOR LOCKBOX SERVICES - RESOLUTION NO. 2006-028
PU 2006-033 AUTHORIZATION TO PARTICIPATE IN THE CITY OF HURST
CONTRACT FOR THE ANNUAL SLURRY SEAL APPLICATION PROGRAM
PU 2006-034 AWARD 2006 FOOD SUPPLY CONTRACT FOR NRH20-
RESOLUTION NO. 2006-029
PU 2006-035 AWARD BID FOR TRAFFIC MATERIALS SUPPLY CONTRACT-
RESOLUTION NO 2006-03
PU 2006-036 AWARD BID FOR UTILITY MATERIALS SUPPLY CONTRACT
TO ATLAS UTILITY SUPPLY - RESOLUTION NO. 2006-031
COUNCILMAN LEWIS MOVED TO APPROVE THE CONSENT AGENDA. COUNCILWOMAN BIELIK
SECONDED THE MOTION.
MOTION TO APPROVE CARRIED 6-0.
PUBLIC HEARINGS
C.1
GN 2006-030 PUBLIC HEARING AND CONSIDERATION OF
ORDINANCE READOPTING YOUTH PROGRAM STANDARDS OF CARE-
ORDINANCE NO. 2878
APPROVED
Mayor Trevino opened the Public Hearing.
Ms. Vickie Lottice, Park and Recreation Director presented the item. Item is to readopt
the North Richland Hills Youth Program Standards of Care. A public hearing is required
for adoption of the ordinance. The North Richland Hills Parks and Recreation
Department offers day camp programs and State law requires municipal day camp
programs for elementary age children to meet day care licensing requirements or file for
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Resources Code. To receive exempt status, a copy of program standards, notice of the
public hearing for the program and a copy of the ordinance adopting the standards must
be submitted. The Standards of Care included in the City's Parks and Recreation day
ca mp policies have been in place for several years and a re used in the staff training
process each year prior to camp starting. The application for exemption determination
and formal adoption of the Youth Program Standards of Care and ordinance is an
annual requirement. No changes have been made to the Standards of Care adopted
last year by Council.
Mayor Trevino called for anyone wishing to speak for or against the Standards of Care.
There being no one wishing to speak, Mayor Trevino closed the Public Hearing.
COUNCILWOMAN JOHNSON MOVED TO PASS ORDINANCE No. 2878. COUNCILWOMAN BIELIK
SECONDED THE MOTION.
MOTION TO APPROVE CARRIED 6-0.
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C.2
RP 2006-03 PUBLIC HEARING AND CONSIDERATION OF A
REQUEST FROM ABS SURVEYING ON BEHALF OF THE PROPERTY
OWNERS TO APPROVE A RESIDENTIAL REPLAT OF LOTS 13, 14, 15, 16
AND 17, BLOCK 2, W.E. ODELL ADDITION TO LOTS 13R1, 13R2, 14R1,
14R2, 15R1, 15R2, 16R1, 16R2, 17R1, AND 17R2, BLOCK 2,
W.E. ODELL ADDITION (LOCATED IN THE 8000 BLOCK OF ODELL)
APPROVED
Nature of request is to replat lots splitting each lot in half to provide frontage to both
Mickey and Odell Streets. The site is currently zoned R-3 Single Family Residential.
Escrow is being collected on Odell for future sidewalk im provements, a nd dedication of
ten feet of right of way and escrow is being collected for future street and sidewalk
improvements on Mickey Street. The City's current regulations require R-3 lots platted
after August 12,2002 to be a minimum of 70 feet wide. Applicant is requesting a waiver
on all lots for a reduction in lot width to 60 feet. Applicant is requesting a waiver on the
minimum square footage on lots facing Mickey Street including Lots 13R2-17R2. This
section of Odell was originally platted for 60-foot wide lots and to require a minimum of
70-foot wide lots would be inconsistent for the area. Staff supports the variance and the
Planning & Zoning Commission approved the replat on April 20, 2006 with approval for
a waiver for 60-foot wide lots.
Mayor Trevino opened the Public Hearing.
Mr. Ken Brawley, 2929 Race Street, ABS Surveying, presented the request and was
available to answer questions from Council.
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summarized the issues and presented the recommendation of the Planning & Zoning
Commission and Staff.
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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.
MA VOR PRO TEM WELCH IVIOVED TO APPROVE R P 2006-03 WITH APPROVAL OF WAIVER FOR
60 FOOT LOTS. COUNCILMAN WHITSON SECONDED THE MOTION.
MOTION TO APPROVE CARRIED 6-0.
C.3
SUP 2006-01 PUBLIC HEARING AND CONSIDERATION OF A
REQUEST FROM CHRIS RECKER TO APPROVE A SPECIAL USE PERMIT
FOR ADVANTAGE AUTOMOTIVE PAINT AND BODY IN A C-2 COMMERCIAL
DISTRICT (LOCATED AT 6432 DAVIS BOULEVARD) -
ORDINANCE NO. 2879
APPROVED
Applicant is requesting a special use permit to build an 11,690 square foot paint and
body facility. The lot is approximately 2.97 acres and currently has a metal building on
the rear of the lot. The proposed building is a single story brick and stone building
oriented towards Davis Boulevard. Roof is a flat design with a parapet wall over the
entryway. Applicant is requesting to utilize the existing metal building at the rear of the
lot and reface the west elevation with building materials used for the main building. The
applicant is providing for future outside storage of vehicles on the back of the lot in a
screened fence area. The area was originally shown with an 8-foot masonry screening
wall. The Planning and Zoning Commission recommended that the vehicle screening
area be visually screened with applicant's choice of materials. Staff recommends that
the enclosure be constructed of masonry materials compatible with the site buildings for
long term maintenance reasons and eventual visibility from Davis Boulevard. The
Planning & Zoning Commission recommended at their April 20, 2006 meeting to
approve SUP 2006-01 with the following stipulation: A screening wall for vehicle
storage, 8 ft. tall, no vehicles visible from Davis Boulevard and this area shall not
exceed 55 feet by 120 feet maximum. Staff recommends approval of SUP 2006-01 with
a stipulation for upgrading the outside vehicle storage a rea to an 8 foot tall (no vehicles
visible from Davis Boulevard and area not to exceed 55 ft. by 120 ft) masonry enclosure
with materia Is consistent with the bu ild ing a nd site.
Mayor Trevino opened the Public Hearing.
Mr. Chris Recker, 7909 Whispering Woods Lane, applicant, presented his request,
discussed the nature of his business and answered questions from Council.
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Mr. John Pitstick, Director of Planning and Development, summarized the request and
presented the recommendations of the Planning & Zoning Commission and staff.
Mayor Trevino called for anyone wishing to speak for or aga inst the request to come
forward.
There being no one wishing to speak, Mayor Trevino closed the Public Hearing.
COUNCILWOMAN JOHNSON MOVED TO APPROVE SUP 2006-01, ORDINANCE No. 2879, WITH A
STlPULA T10N FOR UPGRADING THE OUTSIDE VEHICLE STORAGE AREA TO AN 8 FT. TALL, NO
VEHICLES VISIBLE FROM DAVIS BOULEVARD AND AREA NOT TO EXCEED 55 FT. BY 120 FT.,
MASONRY ENCLOSURE WI11i MATERIALS CONSISTENT WITH THE BUILDING AND SllE.
COUNCILMAN WHITSON SECONDED THE MOT10N.
COUNCILMAN LEWIS ASKED FOR MOT10N TO BE AMENDED TO INCLUDE A 6 FOOT FENCE
RA THER THAN AN 8 FOOT FENCE.
COUNCILWOMAN JOHNSON AND COUNCILMAN WHITSON ACCEPTED 11iE AMENDMENT TO 11iE
MOTION.
MOTION TO APPROVE CARRIED 6-0.
C.4
ZC 2006-04 PUBLIC HEARING AND CONSIDERATION OF A
REQUEST FROM ROYAL BUilDING CORPORATION AND
COMIS DEVELOPMENT CORPORATION FOR A ZONING CHANGE
FROM IIAGII AGRICULTURAL TO IIR-211 RESIDENTIAL
(lOCATED IN THE 6800 BLOCK OF SIMMONS ROAD - 2.1759 ACRES)
ORDINANCE NO. 2880
CONTINUED TO JUNE 12, 2006
Mayor Trevino opened the Public Hearing.
Mr. Ken Brawley, 2929 Race Street, ABS Surveying, presented a letter from the
applicants requesting Council continue the zoning request to the June 12, 2006 council
meeting.
MAYOR PRO TEMWELCH IVIOVED TO CONTINUE ZC 2006-04 TO THE JUNE 12,2006 CITY
COUNCIL MEETING. COUNCILMAN WHITSON SECONDED THE MOTION.
MOTION TO CONllNUE THE PUBLIC HEARING ON ZC 2006-04 CARRIED 6-0.
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PLANNING AND DEVELOPMENT
There were no items for this category.
E.O
PUBLIC WORKS
E.1
PW 2006-012 CONSIDER CHANGING THE NAME OF UICI DRIVE
TO BUD JENSEN DRIVE-
ORDINANCE NO. 2881
APPROVED
Mr. Mike CurtisJ Public Works DirectorJ presented the item. The City received a request
from HealthMarkets (formerly UICI) to change the name of UICI Drive to Bud Jensen
Drive. The name change is requested in honor of Mr. Jensen. Mr. Jensen was
instrumenta I in the development of the UICI property. The street serves as primary
access for employees of HealthMarkets.
COUNCILMAN LEWIS MOVED TO APPROVE ORDINANCE No. 2881. COUNCILIVIAN WHITSON
SECONDED THE MOTION.
e MOTION TO APPROVE CARRIED 6-0.
F.O
GEN ERAL ITEMS
F.1
GN 2006-031 SUSPENSION OF 2005 INTERIM RATE ADJUSTMENT
PROPOSED BY ATMOS ENERGY CORPORATION-
RESOLUTION NO. 2006-032
APPROVED
Ms. Karen BosticJ Managing Director, presented the item. Atmos Energy has notified
the City of its intent to increase its distribution rates to all customers effective May 30,
2006. This type of increase is referred to as a GRIP filing. A GRIP filing allows interim
utility rate adjustments to recover additional invested capital without filing a full rate
case. This is the third GRIP filing in the last 1 ~ years by Atmos. The City can accept
Atmos proposed rate increase, deny or suspend it. Staff is recommending suspension
and approval of Resolution 2006-032 which in addition to suspending implementation of
the proposed GRIP rate increaseJ will authorize participation with the Gas Steering
Committee in a review and inquiry into the proposed GRIP rate increaseJ authorize
intervention in any Railroad Commission or court proceedings related to the proposed
e GRIP rate increases, require Atmos Energy to reimburse the City reasonable costs
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associated with the City's review of the GRIP rate increase filings or participation in any
subsequent proceeding.
COUNCILWOIVIAN BIELIK MOVED TO APPROVE RESOLU110N No. 2006-032. COUNCILMAN
WHITSON SECONDED THE MOTION.
MOTION TO APPROVE CARRIED 6-0.
F2.
GN 2006-032 CONSIDER THE CITY·S PARTICIPATION IN THE
GAS STANDING STEERING COMMITTEE FOR CITIES
SERVED BY ATMOS ENERGY-
RESOLUTION NO. 2006-033
APPROVED
Ms. Karen Bostic, Managing Director, presented the item. The City of North Richland
H ills has been asked to participate in the Standing Steering Committee with other cities
that are served by Atmos Energy. The City has been participating in a Steering
Committee on other issues dealing with gas rates. The City is asking to participate in a
more formal committee, which will enable cities to respond more quickly to the frequent
gas rate filings. The committee will have the a uthority to act for members with each
member retaining the ability to opt out of any proposed rate case action. Each member
of the committee will have one vote and each city on the executive committee will have
one vote. A membership fee of 5 cents per capita will be assessed. Staff recommends
approval of Resolution No. 2006-033, which will allow the City to participate in the
Steering Committee, approves paying the membership fee estimated to be $3,083 for
North Richland Hills and appoints Karen Bostic as the City's representative on the
committee.
COUNCILMAN WHITSON MOVED TO APPROVE GN 2006-032, RESOLUTION No. 2006-033.
COUNCILWOIVIAN JOHNSON SECONDED THE MOTION.
MOTION TO APPROVE CARRIED 6-0.
F3.
GN 2006-033 APPOINTMENT OF ASSISTANT CITY SECRETARY-
RESOLUTION NO. 2006-034
APPROVED
Mayor Trevino requested Council approve the appointment of Ms. Monica Solko for the
position of Assistant City Secretary.
Ms. Patricia Hutson, City Secretary, presented recommendation to appoint Ms. Solko to
the position of Assistant City Secreta ry.
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COUNCILWOMAN JOHNSON MOVED TO APPROVE RESOLUTION No. 2006-034, APPROVING THE
APPOINTMENT OF MONICA SOLKO TO THE ASSISTANT CITY SECRETARY POSITION.
COUNCILWOMAN BIELIK SECONDED THE MOTION.
MOTION TO APPROVE CARRIED 6-0.
F4.
INFORMATION AND REPORTS: REPORT ON TARRANT COUNTY BOND
PROGRAM - TARRANT COUNTY REPRESENTATIVES
Mr. Randy Skinner, with Tarrant County Transportation Services, and Tarrant County
Commissioner Whitley presented information on the 2006 Tarrant County Bond
Program.
F5.
INFORMATION AND REPORTS
Mayor Pro Tem Welch made the following announcements.
A Youth Advisory Committee Open House is scheduled for 5:30 p.m. on Wednesday
May 10 at City Hall. For more information, please call 817-427-6015.
A Household Haza rdous Waste Mobile Collection Event will be held on Saturday, May
13, at the Tarrant County Community College Northeast Campus, 828 Harwood Rd.
Residents can dispose of household chemical wastes properly, safely and efficiently
between 9 a.m. and 11 a.m. For more details please call 817-427-6651.
The City of North Richland Hills continues its free Sounds of Spring concert series at
Green Valley Park, 7701 Smithfield Road. The next scheduled performance is Radiant
and Meridianwest, starting at 6:30 p.m. on May 19. Admission is free. Please bring your
own lawn chairs and blankets. For more information, call 817-427-6620.
Kudos Korner - Officer J.K. Harding, Police Department - An e-mail was received from a
resident thanking Officer Harding for his response to a traffic accident involving her 16-
year-old granddaughter. She said the officer was very compassionate and
understanding and the family was very impressed and appreciative as to how he
handled the incident. She is proud North Richland Hills police officers act in such a
professional and courteous manner.
F.6
ADJOURNMENT
Mayor Trevino adjourned the meeting at 8:41 p.m.
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ATTEST:
Oscar Trevino - Mayor
Patricia Hutson - City Secretary
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CITY OF
NORTH RICHLAND HILLS
Depa rtment:Finance
Presented by: MCurtis/LKoonce
Council Meeting Date:5-22-2006
Agenda NO.B.2
Subject PU 2006-041 Award Bid for Annual Contract to Supply Top Soil, Sand and Flex
Base to HJG Trucking Company - Resolution No. 2006-041
I n the 2005/06 approved budget, Council appropriated funds for the purchase of various
materials required for street repairs following water/sewer repairs or improvements.
Formal bids were solicited for an annual contract to supply the materials. The results
a re attached.
These materials are used by the Public Works/Utility Department and are ordered and
delivered on an as need basis. Bidders were requested to submit bids on estimated
quantities of the above referenced materials and guarantee the price for a twelve-month
period. Based on the estimated quantities included in the bid, purchases will stay within
the 2005/06 budget of $55,000.
The bid submitted by Big City Crushed Stone and Recycled Aggregate for the flex base
material does not meet the minimum specifications. The grade or composition of the
materia I is below the City specifications.
HJG Trucking has been awarded the contract several years and has always provided
qua lity materia Is that meet City specifications, provide good service a nd made deliveries
within the required two days from date of order. They also have a conflict of interest
form on file.
R ecom me ndation: To a pprove Resolution No. 2006-041
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Annual Contract for Top Soil, Sand, Flex Base
Bid #06-1301
Big City Cook
Appx. HJG DFW Crushed Recycled County
Qty Description Trucking Materials Stone Aggregate Stone
2,000 CY Top Soil $26,000.00 $37,000.00 No Bid No Bid No Bid
2,000 CY Screened Cushion Sand $16,000.00 $21 ,000.00 No Bid No Bid No Bid
2,000 CY Cushion Sand $16,000.00 $19,000.00 No Bid No Bid No Bid
2,000
Tons Flex Base $24,000.00 $25,960.00 $20,000.00 $21,000.00 $27,000.00
200 Tons 3/411 Utility rock $3,450.00 $2,960.00 No Bid No Bid $2,900.00
200 Tons #10 Chat $3,300.00 $2,944.00 No Bid No Bid No Bid
TOTAL $88,750.00 $108,864.00 $20,000 .00 $21 ,000.00 $29,900.00
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meet meet
specs specs
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RESOLUTION NO. 2006-041
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH
RICHLAND HILLS, TEXAS THAT:
The City Manager is hereby authorized to execute the contract with HJG
Trucking Company, to provide top soil, sand, flex base and utility rock as the act and
deed of the City.
PASSED AND APPROVED THIS 22nd OF MAY, 2006.
CITY OF NORTH RICHLAND HILLS:
Oscar Trevino, Mayor
ATTEST:
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Patricia Hutson, City Secreta ry
APPROVED AS TO FORM AND LEGALITY:
George A. Staples, City Attorney
APPROVED AS TO CONTENT:
Larry Koonce, Finance Director
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CITY OF
NORTH RICHLAND HILLS
Depa rtment: Fina nce
Presented by: MCurtis/LKoonce
Council Meeting Date:5-22-2006
Agenda NO.B.3
Subject PU 2006-043 Award Bid to TruGreen Landcare for the Rights-of-Way Contract
Mowing - Resolution No 2006-046
In the 2005/06 approved budget, Council allocated funds for mowing services for rights-of-way,
medians, drainage channels, water tower and pump station sites. Typically, the bidding process
for the rights-of-way mowing is done prior to the start of the mowing season. The previous
mowing contract was in effect for three years. Over those years new areas to mow were added
and other areas removed due to new development throughout the community. Staff wanted to
make sure that the new contract mowing quantities accurately reflected those changes. In order
to do so, a very thorough field verification process of the areas to be maintained under the new
contract was conducted. The specifications were revised with the updated quantities and formal
bids were solicited for this service. Seventeen companies were notified wh en the bid was
advertised. Staff contacted each company on the bidders list to encourage them to submit a
bid and followed up with each company through the bidding process. Most of the companies
were fully committed to other contracts or lacked the personnel to adequately provide such a
service at this time. Because the mowing season was fast approaching, the decision was made
to open the two bids received. The results are outlined below:
TruGreen Landcare
VMC Landscape Services
$165,415
$406,385
Staff contacted VMC Landscape Services (VMC) to discuss their bid. VMC stated that due to
recent crew shortages and commitments to other mowing contracts the company would be
required to hire an additional crew in order to provide mowing service to the City. The costs
associated with the hiring and training of a new crew, purchase of additional equipment as well
as recent increases in fuel costs are reasons behind the higher price being bid.
Although the total contract amount is based on a maximum of 36 mowing cycles, the number of
cycles per mowing season is contingent upon the weather, the amount of rainfall and growing
conditions in any given year. The bid amounts submitted above are based on a calendar year
starting in June 2006 through May 2007. Based on the areas to be maintained and the mowing
schedule, the estimated cost of the TruGreen Landcare contract for the remaining four months
of the FY 05-06 budget is approximately $68,000. The FY 05/06 currently available budget
amount is $102,000.
TruGreen Landcare performs this service for the cities of Hurst, Keller, Southlake, Benbrook
and Grapevine. Reference checks were very positive stating they were very pleased with the
quality of work and responses to requests and concerns are handled in a timely manner.
TruGreen Landcare submitted the lowest most qualified bid, they have the necessary equipment
to maintain this contract and a conflict of interest questionnaire is on file.
Recommendation: To approve Resolution No. 2006-046.
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RESOLUTION NO. 2006-046
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH
RICHLAND HILLS, TEXAS THAT:
The City Manager is hereby authorized to execute the contract with TruGreen
Landcare, to provide rights-of-way contract mowing as the act and deed of the City.
PASSED AND APPROVED THIS 22nd OF MAY, 2006.
CITY OF NORTH RICH LAND HILLS:
Oscar Trevino, Mayor
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ATTEST:
Patricia Hutson, City Secretary
APPROVED AS TO FORM AND LEGALITY:
George A. Staples, City Attorney
APPROVED AS TO CONTENT:
Larry Koo nee
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CITY OF
NORTH RICHLAND HILLS
Department Parks and Recreation
Presented by: Vickie Loftice
Council Meeting Date: 5-22-2006
Agenda NO.B.4
Subject PU 2006-042 Award of Contract to Hawk Construction in the Amount of
$31,025 for the Installation of a Masonry Fence at Liberty Park - Resolution No. 2006-
043
The current fiscal year's approved Parks and Recreation CIP Budget includes funding in
the amount of $32,000, for the installation of 440 linear feet of an 8-foot tall pre-cast
masonry fence along the north property line of Liberty Park. The project includes
removing the various existing fences and the installation of the new fence with one gate
per lot. The bid does not include the fabrication and installation of the gates. The
remaining funds will be used to purchase the material for the gates which will be
constructed and installed by City Staff. By doing this portion of the project in-house we
will be able to stay within the project budget.
Meetings with adjacent property owners were held on February 16th and March 28tt-, to
seek concurrence on doing the proposed project, the type of fence to be constructed
and specific wall color and pattern. City staff presented pictures of various optional
fencing styles. The selected fence, ve/ti-crete with an ashIer pattern is manufactured in
a 4 inch thickness with both integral color and highlight staining for a very realistic stone
appearance. Residents were provided the opportunity to view a representative example
of the proposed fence which was recently installed in a neighboring city. After some
logistical concerns of several of the property owners were addressed, all adjacent
property owners expressed their desire for the proposed fence.
Hawk Construction has provided a bid for fabrication and installation of the proposed
fence. Although there are several masonry wall contractors in the area, they are the
only supplier and installer in the North Texas area which can provide this particular wall.
All the contractors contacted by staff make their own style and designs unique to their
company. As such, the proposal submitted by Hawk Construction has been determined
to be in accordance with the Sole Source Policy included in the City Council approved
Purchasing Policies and Procedures. A Conflict of Interest Questionnaire has been
provided by Hawk Construction and is on file with the city.
A picture of the current fence is attached a long with a picture of the proposed fence
type.
Recommendation: To approve Resolution No. 2006-043
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RESOLUTION NO. 2006-043
WHEREAS, the City Council desires to authorize the City Manager to execute a
contract with Hawk Construction:
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCil OF THE CITY
OF NORTH RICHlAND HillS, TEXAS:
Section 1: That the City Manager of the City of North Richland Hills is authorized to
execute a contract with Hawk Construction for the insta lIation of a
masonry fence at Liberty Park, as the act a nd deed of the City.
AND IT IS SO RESOLVED.
PASSED AND APPROVED THIS 22nd Day OF May, 2006.
CITY OF NORTH RICH LAND HILLS:
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Oscar Trevino, Mayor
ATTEST:
Patricia Hutson, City Secretary
APPROVED AS TO FORM AND LEGALITY:
George A. Staples, City Attorney
APPROVED AS TO CONTENT:
Vickie Lattice, Director of Parks and Recreation
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CITY OF
NORTH RICHLAND HILLS
DepartmentCity Secretary
Presented by:
Council Meeting Date:5-22-2006
Agenda No.C.O
Subject PUBLIC HEARINGS
No items for this category.
CITY OF
NORTH RICHLAND HILLS
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DepartmentCity Secretary
Presented by:
Council Meeting Date:5-22-2006
Agenda No.D.O
Subject: PLANNING AND DEVELOPMENT
Items to follow do not require a public hearing
No items for this category.
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DepartmentCity Secretary
Presented by:
Subject PUBLIC WORKS
CITY OF
NORTH RICHLAND HILLS
Council Meeting Date:5-22-2006
Agenda NO.E.O
CITY OF
NORTH RICHLAND HILLS
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DepartmentPublic Works
Presented by: Mike Curtis
Council Meeting Date:5-22-2006
Agenda NO.E.1
Subject PW 2006-015 Award of Engineering Agreement to Schrickel, Rollins and
Associates, Inc. for the Boulevard 26 Intersection Improvements (Glenview Drive and
R ufe Snow Drive)
This project represents the first capital improvement project from several
recommendations made to the Cities of North Richland Hills and Richland Hills as a part
of the South Grapevine Hiahwav Corridor Study (SGHCS). Both cities have provided
$450,000 (for a total of $900,000) to make improvements at two intersections along
Boulevard 26. The intersections are located at Rufe Snow Drive and Glenview/Blaney.
The improvements will follow the recommendations from the SGHCS and provide
streetscaping and landscaping improvements in accordance with the theme
recommended in the study and approved by the Oversight Committee (committee
comprised of council members from both cities, business leaders, and city staff). This
council item is to consider awarding an engineering agreement to Schrickel, Rollins and
Associates, Inc. for the development of the standard details and the design of these
improvements.
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The Engineering Selection Committee was comprised of three members from each city.
The staff members from North Richland Hills were an Assistant City Manager, Director
of Planning, and the Director of Public Works. The selection process followed the City's
standard policy in procuring professional services in every way except one. Typically for
a North Richland Hills project, we provide prospective firms the opportunity to submit
statements of qualifications; however, Richland Hills wanted to streamline the process
by reducing the firms notified to only ten firms. Five firms expressed an interest for this
project. These firms were:
· Nee I-Schaffer, Inc.
· Freese and Nichols, Inc.
· SChrickel, Rollins and Associates, Inc.
· Turner Collie & Braden
· Graham Associates, Inc.
The selection committee reviewed the qualifications of each of these five firms and
selected Turner Collie & Braden, Freese and Nichols, Inc., and Schrickel, Rollins and
Associates, Inc. as the top three firms. Presentations by each of these firms were made
to the committee. It was apparent from the presentations and interviews that Schrickel,
Rollins, and Associates, Inc. had the best understanding of the needs of both cities.
The firm has a conflict of interest questionnaire on file with the City.
The fee was negotiated to $153,400. A detailed fee summary is shown below.
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FEE SUMMARY:
Basic Professional Planning and Design Services
Topographic Survey
$ 13,400
$ 32,700
$ 62,300
$ 19,500
$ 127,900
Design Development
Contract Documents and Bidding
Construction Administration I Observation
Subtotal Basic Professional Services
Optional Related Services
Right of Way Survey
$ 4,500
$ 5,000
$ 6,000
$ 1 0.000
$ 25,500
$ 153,400
Geotechnical Investigation
Electrical Eng i neer
(if required)
Traffic Engineer
(if required)
Subtotal Optional Related Services
TOTAL PROFESSIONAL SERVICES
The "Optiona I Related Services" will only be used if necessary and will be pa id for on a
cost plus basis. For example, if the firm only needs $2,000 in order to conduct traffic
studies then only $2,000 will be paid for this work and not the full $10,000. The contract
amount will not exceed $153,400 without council approval.
A previous Interlocal Agreement between both cities (GN 2006-005) specifies that the
engineering agreements will be procured and managed by North Richland Hills and the
construction contract will be awarded by Richland Hills. This Interlocal Agreement
specifies the amount and timing of payments that each city is obligated to fund.
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Approve PW 2006-015 to award the engineering agreement in the amount of $153,400
to Schrickel, Rollins, and Associates, Inc.
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Excerpt from 2005/06 Capital Projects Budget
)
/T-{ì
GL E NVI
Boulevard 26
Intersection Improvements
(Project at intersections:
Glenview Dr and Boulevard 26
Rufe Snow Dr and Boulevard 26)
Scale 1" - 2000'
Boulevard 26
Intersection
Improvements
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NQDf{TH
r<IC.HJ.J\f\I)
H I I..J L;S
PrOject Locator Map
Information Services Department- GoIS
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Partial Agreement is Attached
Full Copy of Agreement can be viewed at City Secretary's Office.
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AGREEMENT FOR ENGINEERING SERVICES
BETWEEN THE
CITY OF NORTH RICHLAND HILLS
AND
SCHRICKEL, ROLLINS AND ASSOCIATES, INC.
I.
This Agreement is executed by and bet\vee'l the City of North Richland Hills, a
municipal corporation located in Tarrant Coun1y, Texas. acting by and through Oscar
Trevino, its Mayor (hereinafter called ;'CITY''). and Schrickel. Rollins and Associates, Inc,. a
Texas corporation, acting by and through Sanford P. LaHue, Jr., P.E., 'Jice President Its
duly authorized Principal (hereinafter called "ENGIN EER").
WITNESSETH. that CITY desires professional engineering services ir, connection \//ith
t.,e Boulevard 26 Intersections located at the intersection of Rufe Snow and Boulevard 26,
and at the intersection of Glenvtew Drive and Boulevard 26.
NOW, THEREFORE~ CITY and ENGINEER. in consideration of the mutual covenants
and agreements herein contained. do mutually agree as follows:
II. PROJECT
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In th,s Agreement, the "PROJECT- means the design of improvements to the corridor
within the right of VtJay and City-owned property in an area at ThvO intersectIons on
Boulevard 26 at Glenvie\'V Drive and al Rufe Snow Drive. Primary design elements are
sidewalks, medians. ramps, crosswalks, traffic signals. signage, landscape planbngs,
irrigalion systems, benches and other site amenities.
III. BASIC AGREEMENT
ENGINEER is an independent contractor and undertakes and agrees to perform
professional engineering services in connection with the PROJECT. as stated in the
sections to follow, It is understood and agreed that ENGINEER is not and will not by virtue
of this contract be deemed to be an agent or employee of CITY and that CITY will not be
entitled to direct the performance by ENGINEER's employees or subcontractors of the
tasks contemplated by this contract. All engineering services shall be performed with
diligence and in accordance with professional standards customari1y obtained for such
services in the State of Texas. For rendering such services CITY agrees to pay
ENGINEER as set forth in Sect,on VIIL "Compensation!' and Exhibit F: ·Compensation."
A:¡~U3A[NT FOR ENO..,E.loRItIIG SLP\lIt.:L~ BL h-'¡_~ TIft. C I'" Vt N·J r I H FbC:...¡L;.",o HlUE'-N) ~CHRW:,<H ROIl ~s A....r: ,~!It"O(',I."TF~. INf.
Boutl'4'ard 25 ,,~,.,ectlons (5J10l200~:, ~{)A 1 ( 12~
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IV. SCOPE OF ENGINEER'S SERVICES
ENGINEER shall render the professional services necessary for development of the
PROJECTt tn accordance with tne schedule in Exhibit A: "Project Schedule- and as
detailed in Exh ibit B: «Basic Ser\lices,;' said exhibits being attached hereto and incorporated
herein for aU purposes. ENGINEER !;hall be responsible, to the leve~ of competency
presently maintained by other practicing professional engineers in the same type of VIOrk in
the Dallas/Fort Worth Metroplex area, for professional and 1echnic.a1 soundness, aocuracy,
and adequacy of all designs. dravlings. specifications, and other work and materials
furnished under this Agreement.
v. SPECIAL ENGINEERING SERVICES
The C~TY wiU pay the ENGINEER for Speçial Engineering Services as indicated in
Exhibit C: "'Special Engineering Services", attached hereto and Plade a part of this
Agreement.
VI. ADDiTIONAL ENGINEERING SERVICES
The CtTY will pay the ENGlNEER for Additional Engìneerlng Services as indicated in
Exhibit D~ "Addrtional Engineering Services", attached hereto and made a part of this
Agreement.
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VII. SCOPE OF CITY SERVICES
The City will furnish items and perform those serv.ces as identified in Exhibit E:
"Services to be provided by the City", attached hereto and made a part of th~s Agreement.
VIII. COMPENSATION
Ä. In consIderation of the services described herein, CITY shall pay and ENGINEER
shall receive compensation ~n accordance with Exhibit F: I·Compensation.'·
B. T ot91 payrnents including without lim~tation salary and reimburS8ble expenses, to
ENGlNEER by CITY for the serviœs stated in Section IV and Section V above shall
not exceed One Hundred Fifty-Three Thousand Four Hundred Dollars ($153,400).
C. CITY may authorkze additional services to be prov.ded by ENGINEER as mutually
agreed upon by the parties. Any authorization for additional serv1ces shall be giver\
to ENGINEER by CITY in writing and approved by CITY.
AGRff,..E.NT rOR ;:tlGII\EERIf'JG $E~'ICt~ B.. 1W\..Lr-. T. L CHY (II NOhn- RIi.Hl A"'r. Hili ~ ,..~o ~CHRI:'ÞŒl. RO__IN~ AAJ A~j()I,;IA' t;S. 'Nt:.
90ulevard 26 In.-see1íons í~'1cY20œ) Page 2 of 2f>
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D. CITY and ENGINEER understand that the variables in ENGINEER's cost of
performance may fluctuate. The parties agree that any f1uctuation in ENGINEERIs
costs will in no way alter ENGINEER's obligations under this Agreement nor excuse
performance or delay on ENGINEER's part.
IX. OWNERSHIP OF DOCUMENTS
At! completed or partially completed eva'uatiol1s. reports, surveys, designs, drawings
and specifications prepared or developed by ENGINEER under 1his Agreement including
any original draWings, computer disks, myiars or blue I'nes, shall become the property of
CITY when the Agreement is concluded or termInated! and may be used by CITY in any
manner it desires; provided. however, that ENGINEER shall not be liable for the use of
such drawings for any project other than the PROJECT described in this Agreement.
x. INDEMNITY
ENGINEER SHALL INDEMNIFY AND HOLD HARMLESS CITY AND iTS OFFICERS,
AGENTS, SERVANTS AND EMPLOYEES FROM ANY LIABiliTY ON ACCOUNT OF ANY
INJURIES OR DA[\~AGES RECEIVED OR SUSTAiNED BY ANY PERSON OR
PROPERTY, INCLUDiNG COURT COSTS AND REASONABLE ATTORNEYS' FEES
INCURRED BY CITY, PROXIMATELY CAUSED BY THE NEGLIGENT ACTS OR
OMISStONS OF ENGINEER OR iTS OFFICERS. AGENTS! SERVANTS.
CONTRACTORS. OR EMPLOYEES !N THE EXECUTION, OPERATION. OR
PERFORMANCE OF THIS AGREEMENT.
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Approval by CITY of contract documents shall not constitute or be deemed to be a
release of the responsibility and liability of ENGINEER, its officers, agents. employees and
subconsultants, for the accuracy and compe1ency of the services pertormed under this
Agreement. including but not Hmited to evaluations, reports, surveys. designs, working
draw,ngs and specif¡cat;ons. and othereng1neering documents. Approval by ClTV shall not
be deemed to be an assumption of such responsibility and liability by CITY for any error,
omission, defect. deficiency or negligence in the performance of ENGINEER's professional
services or in the preparation of the evaluations. reports, surveys, designs. working
drawings and specIfications or other engineering documents by ENGINEER. its officers,
agents, employees and subconsul1ants. it being the intent of the parties that approval by
C~TY signifies CITY's approval of only the general design concept of lhe ¡mprovements to
be constructed.
In this connection ENGINEER and its subconsultants shall indemnify and hold CITY
and all of i1s officers. agents, se rvants, and employees harmless from any loss. damage:
liability or expanses~ on account of damage to property and injuries, ínctud~ng death! to any
and aU persons! including but not limited to officers, agents or employees of ENGINEER or
AGR::£Mi"flIõ:;.~ (~~.",t. =R '-Ie; S[P",'(.F! Rf'~'EE'" THE Cm :: NoRTH TCH_"NJ HI..L~ ANt' 5Gtik CJ<.EL. H-:~~' 111'# .'wo A.ssOCIAT~, r".:;
Bouleyan:l26 Inten.ecti:..s (~/,c,r~;.œ) ~ag& J of 2~
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EXHIBIT A
PROJECT SCHEDULE
FOR
BOULEVARD 26 INTERSECTIONS
PROJECT SCHEDULE
The Scope of Services for this PROJECT is based on the follov__ing schedule'
Activity Due Date ( Days)
City Council Approval June 12, 2006
Notice to Proceed June 22, 2006 (10 days)
Base Sheet Preparation August 6. 2006 (45 days)
Basic Des ig n Services
Design Development Phase October 5, 2006 (60 days)
Contract Document Phase February 2. 2007 (120 days)
Bidding Phase March 14. 2007 (40 days)
Subtotal Basic Design Service (275 days)
e Contract Award and Execution April 13. 2007 (30 days)
Constructio n Ad min~stratio n October 10, 2007 (180 days)
^CF\EEhiENT fOfò: £!oIGIN:.ERtNG $l '{"JI<:.:t:S B£rAÆFlIIl HF. CITY OF NOF\T~ RI<.:t1l.A1«J H~l5 AN ) Srt-tn CKEL, KOLIr-.s",,) ASSC'C,;'-L:.>."tC
éOt.l.¡wa~ 26 tnœrte<;titn$ (S'10~OC~J Page 10012:
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EXHIBIT B
BASIC SERVICES
FOR
BOULEVARD 26 INTERSECTIONS
1. Scope of Project
The project is the design of improvements lo the corridor within the right of way end City-
owned property in an area at two intersections on Boulevard 26 at Gtenview Dr¡ve and at
Rufe Snow Drive. Primary design elements are s;dewa'ks. medians. ramps. crosswalks,
traffic signals. s;gnage. landscape p'antings~ irriga1ìon systems, benches and other 6;t8
amenities.
2. Purpose of the Project
The primary purpose of the project is to reinforce Boulevard 26 as a major corddor by
developing a "high visual impact" area tha1 wilt be an area of activity and development.
The project will create a strong visual ;dentity. The project must comply with the
requirements set forth by the City of North Rich!and Hí1Is. the City of Rich~and Hills, and the
Texas Department of Transportation.
3. Topographic Survey/Base Sheet Preparation
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While existing base tnformation would be sufficient for overall planning, it is not sufficient
for detaHed design and preparation of construction drawings for improvements on site. A
new topographic survey of the existing areas within the project areas will be required. The
survey wilt ident1fy one foot contours. existing facilities, utilities and trees with 3" or greater
canper. approximate right-of-way lines. and adjacent public streets.
4. Data Gathorlng/Field Observation
The Consuitant wiIJ perform 8 detailed SRe ;nven1ory ~nd photo documentation of existing
condit¡ons, ¡ncluding existing ;nfrastructure (based on the best information avajlab~e),
existing deve10pment adjacent to the site, traffic patterns, land Lise issues. overall
walkability and conflict points. circu'ation ¡ssues, major design e'ements, district image and
sense of arrival.
A(;REfWfNT fOR =NGlNfEfõ.(ri(; Sf~\..!c,;t=S 8~-w[['II T1 iF Crrv OF NoR~ kICHLÞ.,..C . tiLLS AI'&;' S'~llllÇRI:.L. R:Lt_."'~ fU) A"SO:IATES, IH~
Boule~Hd 28 trten.ecrlon, (~/1['2000) P¡¡grt 11 of 2!>
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.
5. Geotechnical Investigation
At four to five Jocat~ons selected by the Consu1tant and approved by the City. soil
investigations will be conducted by an independent Geotechnical Engineer selec1ed by the
Consu Itant.
6. Program Definition
The Consultant will meet and coordinate w'th the City's representative and others as
necessary to c'early define the program including:
Exact facil ity requ irements
Maintenance cons iderations
· Access considerations
Security cons;derations
· Design 8 pproaches
· Utihty relocations
7. Analysis
In light of findings established in Tasks 5 and 6, the Consu,tant will prepare a frarnewor1<
analysis that documents the corridor's most significant opportuni1ies and constraints and
key urban design issues related to future pedestrian ¡mprovemenis. The analysis will take
1he form of an overa~' iUustrative diagram of the intersections. The findings will be rev¡e~'Ved
with the client and refinements made as necessary.
.
B. Meetings
A. The Consultant wilt prepare for and at1end up to Í\-VO (2) meetings v/ith the
Oversight Committee for the purpose of reporting on progress and gathering ;nput
B. ~n addition to the above. the Consultant win attend four (4) meetings with staff,
inc~uding kick-off meeting. (Other staff/Consultant meetings may occur before or
after board and commission meetings at no additional charge.)
C. Additional meetings may be scheduled with additional compensation by the City to
the Consultant: as mutually agreed to in wTiting in advance of any such
meeti ng( s) .
D. The City will be responsible for advertising all meetings. ,f needed.
Ar..RHMfNT F::R a.GINtt:P.IN~ 5t:1-t"1C ~~ ern...·,..".N T -i£ ~In- OF ~OR'J -i RI<;H.AAO H __;.; ANC SCHAI&Kfl. R(,)IIIN~ A~A.sS:;C'AI ~,. IN.;
RnLJI""'ard ¡& 1nte-rs.ec1Jon! C5J,U:2C06:. ...age -,2 o~ 2$
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9. Construction Documents
Based on the approved Design Development and any further adjustments ~n the scope and
quality of the project or in the construction budget authorized by the City, construction
documents consist¡ng of drawings and specifica1ions will set forth in detail the requirements
for the construction of the project. The Consultant will advise the Cityts represen1ative of
any adjustments to previous estimates of construction cost indtcated by changes in
requirements or general market conditions. At the time of writing this scope 01 seNiœs. the
Project Budget is $900,000 including fees for Prcfesslonal ServLces.
The Consultant win submit documents and estimates of construction cost to the City~s
representative at intervals of 50°/0 and 100% of comple1ion for review. The City:s
represen1ative wiil respond with wriUen comments advising any charges to be made.
Specifications will be written to reference T~DOT standard specif~cations
10. Compute Quantities, Plans Estimate, Specifications, General Notes, Etc.
The Consultant wW prepare a tist of construction bid items and compute estimated
quantities. The estimated cost of construction will be computed based on current unit
prices and estimaled quantitles.
The Consultant will provide generat notes, specifications and special provls;ons, which are
applicab'e to the project.
11.. Bidding
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The Consultant VJHl pro,,¡de/perforrTl the fOI'owing B~ddlng Services.
A. Assist CITY staff ~n preparing the advertisement for bids.
8. Answer questions from Bidders and prepare addenda as necessary.
c. Assist CITY as required in opening bids.
D. Provide bid tabulations.
E. Evaluate the lowest bidder. Bid evaluation wiU include the contractor's:
1. Past work h¡story;
2. Financial resources~ and
3. Physical resources to produce the project
F. A summary of the bid analys¡s wiU be provIded to CITY for use in selection and
award of the construction contract.
12. Construction Phase
The Consul1ant will attend the prebid and preconstruction confe ranees.
At",R~I;M(~ FOR EN·~lrtl:.til~(. 5:::FivlC~~ Fl-FTWEEHI HIE em := NORTH '1 C1I.IIt.O HI__S ".M[' :S1:".H~I(. (f~. ROLLINS ""~u ~~C.ATC$. 'N::
Boull:1.... am 26 tntersedons (5/1 O.'2( 06) F'90t' 13 of ¡ 5
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13. Construction Administration
A Cor)suttant win provide/perform the following Construction Adm;nistra1ion
services:
1. A tota1 of eight (8) meetings/site visits with owner/contractor inctuding:
9. Fie'd observation/construction progress shan be provided tor the purpose
of ascertaining for the CITY that the work is in substantial or general
conformance with the contract documents and design intent
~ Should nonconforming or defective work be observed~ the
Consultant will endeavor 10 immediately inform the CITY's
representative that conforming or remedial action is required.
ti. A schedule of key construction observation visits will be deve'oped
for approval and refe:-e n ce by CITY.
¡.i. Conduct coordination meetings with contractors, inspection
personnel, and CITY representative to discuss strategy, problem
areas, progress, and any required coordination. Prepare a
summary of these meetings and distribute them to both C1TY and
the contractor.
b. Placernent a~d 'ayout of facm1~es:
c. F ¡eld obse rvationlconstrl.Àction prog ress~
d. Mandatory "criHcalr: ob~ervat!Qns; and
e. Coordination meetings.
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2. Review shop drawings and other submittal information for the purpose of
ascertaining conformance with the design lntent and construction
documents.
3 Provide written responses 10 requests for information or clarification.
4. Prepare and process change orders, ¡r required.
5 Review the monthly pay requests by the ContractoL
6. Assist CITY in conducting the substantia1 completion and final comptetion
observations.
7. When comp~ete, recommend fina1 acceptance of work.
Ac~rrMf'IT =-O~ EH:;) 'IIt:::Joi...o SEP'Wt(.r:" Rf.TY\'Ef'i tf.ol~ CITY:= N~TI· ~I~'I~NJ HI~LS"Nf:> S("_M~ Ckt..El. Rcu'~;u'''oA3~",(·GIATrr.. It..:,:
~.It'~Víilrd 26 lf1tersectiJl"s (!r.c.~J6) :":age 14 (!f ì~
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B. Consultanfs Status During Construction. Consultant will not be responsible for
Contractor's means. methods, techniques, sequences, procedures or schedules of
construction or the safety precaut;ons and programs incident hereto. Consultant
will not be responsible for Contractor's failure to perforrl1 or furnish the work in
accordance with tlie construction documents. Consultant wiU not be responstble
for any delays in the execution of the \'Vork caused by the Contractor.
14. Deliverables
A. Construction Documents
1. BaSed upon the approved PreHm,nary Design. adjustments In the scope Of
quality of the pToject~ and the project design budget authorized by the Owner I
Construction Documents deliverables shall include. but not neœssari y be
limited to the following documents:
a. Plan sheets illustrating plans, elevations, sections and details of
construction.
b. lechnicai 5pecifica~tons_
c Project manual containing specificat~ons and bidding documents
including City forms such as bid proposa1, form of agreement between
City and Contractor, and conditions of the contract.
2 Final Opinion of Probable Construction Cost.
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3. The Consultant will provide 30 sets of contract documents for bidding and
construction phases.
A::;RE=rJ~"'1 ..ü~ £:r.UfNti:'{\NG Sr ~'~1r:ES B£T\·.EEN I HE c.~ Of N:;~ I" RIc,;.II~';U HILLS I4N") Sr.tofRICIIŒL RCIU.JN:J o1'>tc ".330Cl.Ur!', I...r._
BoulliNard 2& Irft'!edion:!! «~lo.·20()S) P,ge 15 of;~
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EXHIBIT F
COMPENSATION
FOR
BOULEVARD 28 INTERSECTIONS
L COMPENSATION
F or and in consideration of the services to be rendered by the ENGINEER, the CITY shall
pay, and the ENGINEER shaH receive the compensation hereinafter set forth for the
Design and Construction Phases of the v/ork and additicnally for Spec;al E.nglneering
Services and/or Additional Engineering Services that are in add;hon to the Basic
Engineenng Services. AU remittances by CITY of such compensation shall either be
ma~led or dehvered to the ENG'NEER~s horns office as ident~fled tn the \vork authorization.
"Salary Cost" used herein is defined as the cost of salaries of ENGINEER's, draftsmen.
stenagraphers, survey men, clerks. laborers, etc. for time directly chargeab1c to the
PROJECT plus social security contributions, unemployment, excise and payroll taxes.
emp~oyment compensation insurance, retirement benefits, medical and insurance benefits,
sick leave, vaca1¡on I and holiday pay applicable thereto.
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A Compensation for the Basic Engineer¡ng Services (DesIgn and Constructton
phases) shall be as outlined below:
A. Basic Professional Planning and Design Services
T opograph:c. Su ""¡Jey
Design Develop .,.,ent
Contract Docurr.ents and Bidd!ng
Cor,st:-uction Administration l O~servation
Total
$13,400
$32,700
$62,300
.....J19,500
$127.000
B. Optional Related Services
Right Of Way Su rvey
Geotechnicallnvestìgation
Traffic Engineer (If required)
E',ectrical Engineer (if required)
Allowance (not 10 exceed)
Allowa ~r~ (not 10 exceed)
Allowance (net to exceed)
Allowance f: net to exceed)
$4.5'J0
$5,000
$10,000
...u_~.º.º
S 153. 4..QQ
AGfi.~t:""E."'" ~ L't-C EN·;3'''«Tn'"c;. fì~f;yK;ËE =ETV·..EfN T "if Cn OF NORH R!ÇI ,L.N.Il> HI. _S ~..r.~('M~!Cl(h. ROLLINS ),.~~:::.;r..;J"'llg If.IJ:;'
ßC"~'/aJ::i 26 f1t~rS6(.tl(JfIS (Si1o.'2C06) Pa~ 22 of ~5
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Department City Secretary
Presented by:
Subject: GENERAL ITEMS
CITY OF
NORTH RICHLAND HILLS
Council Meeting Date:5-22-2006
Agenda NO.F.O
CITY OF
NORTH RICHLAND HILLS
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DepartmentCity Manager1s Office
Presented by: Ka ren Bostic
Council Meeting Date:5-22-2006
Agenda No.F.1
Subject GN 2006-040 Consider a Resolution in Support of CAPP Efforts to Contract for
Long-Term Capacity for Electrical Power Needs - Resolution No. 2006-044
The City of North Richland Hills is a member of the Cities Aggregation Power Project
(CAPP). Since January 1, 2002, CAPP has delivered average annual savings of over
200/0 to its members on annual electric bills. Savings are measured not by annual
reductions in cost, but by comparing the CAPP contract price to what members would
have paid had they remained on price to beat. Price to beat are base rates that have
been established by the Public Utilities Commission to serve as a benchmark for
customers to compare competition. To date, all energy options made available to
CAPP, regardless of source, have been priced as if the energy was produced
exclusively from natural gas-fired plants. Natural gas is expensive and the most volatile
of generation fuel options.
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The CAPP Board is evaluating a unique opportunity to fix a stable price for
approximately one-half of CAPP's total energy needs over a 10 year period. The
remaining portion of member energy needs would continue to be met through shorter
term supply contracts as in the past. The long-term commitment would involve
contracting for the output of a coal-fired facility. That can only be achieved by pre-
paying capacity costs associated with a coal plant. The structure that is being
envisioned would require CAPP to issue bonds with the proceeds fulfilling the pre-
payment obligation.
CAPP has asked that member cities interested in pursuing the long-term coal
generatio n option pass a resolution to show support of this project. Approva I of a
resolution will not bind the members but will indicate good faith intent of the CAPP
membership to contract with a coal supplier assuming that favorable terms can be
negotiated. Once terms have been negotiated, each member that has previously
passed the resolution will be entitled to review and formally approve the contract.
Geoffrey Gay from the law firm Lloyd Gosselink will be making a presentation to Council
to further explain the proposal. Previously Geoffrey Gay and Kristin Doyle of Lloyd
Gosselink made a presentation to the Investment Committee to help us in determining
whether or not this is a proposal we can support and whether or not this is something
we'd like to take forward to council. The Investment Committee was in support of
bringing this proposal to Council.
As stated above, approval of the resolution will not bind the city but will indicate
good faith intent of the CAPP membership to contract with a coal supplier assuming
favorable terms can be negotiated.
Recommendation:
e Approve Resolution No. 2006-044
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CAPP LONG-TERM CONTRACT GENERAL INFORMATION
CAPP is interested in both lowering and stabilizing prices for member political subdivisions who must
prepare annual budgets and who need predictability regarding costs of essential services like electricity in
that budget process. CAPP believes this can be achieved by entering a long-term (10 years) contract for
the output of a coal-fired facility and pre-paying the capacity costs associated with that coal plant.
The general structure of potential projects would fix a stable price for approximately one-half of CAPP's
total energy needs over a 1 O-year period. The remaining portion of member energy needs would continue
to be met through shorter term supply contracts, like the ones that CAPP has used the past four years.
This supply blend should add to both stability and savings for CAPP members. CAPP's annual load is
825,000 MWh, with a peak load of 150 MW. Approximately 55 - 60 percent of CAPP's load is baseload
capacity.
CAPP's bond counsel and financial advisors have crafted a financial structure that permits CAPP to
pre-pay the capacity portion of any potential energy contract. The Chief of the Public Finance Division of
the Office of the Attorney General has approved the proposed structure to finance CAPP's prepayment:
· CAPP issues general revenue bonds, with the bond proceeds used to pre-pay the 10-year
capacity commitment on behalf of members.
· The bonds would be backed by contracts between CAPP and individual CAPP member
cities that would commit to purchase their electric needs from CAPP for the duration of the
capacity commitment.
· The individual contracts would be comprised of two components: 1) a variable expense
portion associated with each member1s share of the electric energy received, including a fuel
cost, and 2) a fixed capacity expense that are the annual principal payments corresponding
to the percentage of the capital cost of the electric generation facility for which the member
is responsible.
· The variable energy expense portion would be paid by each member as a budgeted
expense subject to annual appropriation.
· The fixed capacity component would constitute long-term, general obligation tax debt of
each respective member. This means that the fixed capacity portion of the contract would
be secured by a pledge of the member1s ad valorem taxes.
· For members that wish to avoid undertaking a general obligation tax debt and are financially
able, the CAPP Board has approved an exception to the financial structure allowing
members to either bring sufficient revenues to pre-pay the capacity portion associated with
the member1s particular requirements or to arrange with CAPP1s financial advisor to base
their capacity pre-payment pledge on annual appropriations.
eNi~H
RESOLUTION NO. 2006-044
APPROVAL OF CITIES AGGREGATION POWER PROJECT'S LETTER
OF INTENT TO ENTER INTO NEGOTIATIONS FOR A CAPACITY
CONTRACT WITH THE OWNER OF COAL (INCLUDING TEXAS
LIGNITE) GENERATION TO SUPPLY THE BASE LOAD ELECTRIC
POWER NEEDS (APPROXIMATELY 550/0-600/0 OF TOTAL ENERGY
NEEDS) FOR CAPP MEMBERS OVER A 10-YEAR PERIOD
WHEREAS, the City of North Richland Hills C'City))) is a member of Cities Aggregation
Power Project, Inc. (UCAPP))) and said membership has resulted in
average annual energy savings over 20% off of the Public Utility
Commission (UpUC") approved price to beat; and
WHEREAS, all retail power bids from various Retail Electric Providers (REPs) in the
deregulated electric retail market have been directly linked to natural gas
futures prices; and
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WHEREAS, natural gas prices have been extremely volatile and have caused
substantial increases in the price of electricity paid by the City; and
WHEREAS, CAPP is in the process of negotiating a 10-year capacity supply contract
for the city's base load electric needs (approximately 550/0 of the city's total
electric energy needs) for a fixed price that should provide considerable
economic benefit and greater price stability in comparison to traditional
energy contracts with REPs; and
WHEREAS, coal-fired capacity in Texas available to retail load is scarce and the
situation giving rise to the Letter of Intent reflects a unique opportunity for
CAPP members to increase savings and reduce electric price volatility.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND
HILLS, TEXAS THAT:
SECTION 1. The efforts of the CAPP Board to secure coal capacity for the City of
North Richland Hills' base load electric capacity needs for a fixed price for
a 10-year period commencing in the 4th quarter of 2007 are hereby
ratified.
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SECTION 2. The City of North Richland Hills endorses the CAPP Board committing to
a letter of intent to contract for coal capacity with the understanding that:
(1) CAPP will provide proof of economic benefit of coal capacity and
energy from a coal and gas mix in comparison to exclusive reliance on
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energy priced on 1000/0 gas generation coupled with a conservative
forecast of natural gas prices; (2) the City of North Richland Hills will have
an opportunity to review and approve or reject a 10-year contractual
agreement to supply all the city's power needs; and (3) CAPP will issue
bonds to secure funding of amount necessary to prepay the capacity
portion of the coal supply contract.
PASSED AND APPROVED THIS 22ND OF MAY, 2006.
ATTEST:
CITY OF NORTH RICH LAND HILLS:
Patricia Hutson, City Secretary
Oscar Trevino, Mayor
APPROVED AS TO FORM AND LEGALITY:
George A. Staples, City Attorney
APPROVED AS TO CONTENT:
Karen Bostic, Managing Director
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CITY OF
NORTH RICHLAND HILLS
Department: Human Resources
Presented by: Patrick Hillis
Council Meeting Date:5-22-2006
Agenda No.F.2
Subject: GN 2006-028 Alternative Retirement Program to Social Security for Part-Time
Employees - Resolution No. 2006-025
The City of North Richland Hills opted out of Social Security in 1982 pursuant to Federal
legislation allowing it. The opt out relates only to full-time employees. F ederallegislation at the
time did not allow cities to opt out of social security for part-time employees. In 1990 Congress
adopted the Omnibus Budget Reconciliation Act (OBRA). OBRA allows cities to establish an
alternate retirement program for their part-time employees. Public Agency Retirement System
(PARS) offers an alternate retirement program which meets the OBRA requirements.
The PARS program benefits both the employee and the City. Currently, the City is required to
contribute an amount equal to 6.2% of each part-time employee's salary to Social Security and
the employee is required to contribute a similar amount for a total contribution of 12.4%. The
OBRA legislation requires a minimum contribution to the alternate retirement plan of 7.5°/Ó.
Under the PARS plan, the employee's contribution will remain the same as it is under social
security - 6.2%. The City will contribute the remaining 1.3% for a total of 7.5%. The reduced
rate of contribution by the City (1.3% versus 6.2%) results in an estimated first year savings of
approximately $29,000. This level of savings will continue each year with the amount varying
depending on the total number of part-time employees and their hours worked.
The benefits to employees from enrollment in the PARS alternate retirement program versus
Social Security are as follows:
1. PARS plan participants are fully vested in their individual accounts from day one. This is
the same as immediate ownership of the invested funds. This compares to Social
Security which requires contributions for a minimum of 40 calendar quarters (10 years)
before the employee is eligible for any Social Security retirement benefit.
2. In the event that a participant separates from the City, the participant may receive the
contributed funds as follows:
(a) Distributed as a lump sum for the participant; or
(b) Rolled over to an IRA or other qualified retirement plan that accepts rollovers.
3. PARS contributions are made with pre-tax dollars. Social Security contributions are
post-tax dollars. The result is additional take home pay for the enrolled part-time
employees.
4. Contributions to the PARS plan increase account balances without limit. With Social
Security, once the limit is met, additional contributions do not result in any higher
benefits for the contributin g participant.
If this alternative plan is approved for part time employees, it will become effective June 1 , 2006.
Recommendation:
Approve Resolution No. 2006-025 to establish a PARS Trust, including the PARS Section 457
FICA Alternate Retirement Plan for part-time employees.
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RESOLUTION NO. 2006-025
WHEREAS, it is determined to be in the City's best interest and its employees to
provide a Qualifying Retirement System (Deferred Compensation FICA
Alternative Plan) for all its employees not currently eligible for such a
Qualifying Retirement system, thereby meeting the requirements of
Section 11332 of the Omnibus Budget Reconciliation Act (OBRA 90) and
Section 3121 (b)(7)(F) of the Internal Revenue Code.
WHEREAS, the City is eligible to be a member of the Public Agency Retirement
System (PARS) Trust, which has made such a system available to the
City and its eligible employees and qualifies under OBRA 90 Section
11332, IRC Sections 3121(b)(7)(F) and 457(b), and meets the meaning of
the term "retirement system" as given by Section 218(b)(4) of the Federal
Socia I Security Act.
NOW THEREFORE:
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BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHlAND
HillS, TEXAS THAT:
SECTION 1. The City Council hereby adopts the PARS 457 Trust, including the PARS
Section 457 FICA Alternative Retirement Plan, effective June 1, 2006, the
Effective Date for the benefit of employees on that date and hired
the reafter; and
SECTION 2. The City Council hereby appoints the City Manager, or his/her designee as
the City's Pia n Administrator for the Public Agency Retirement System
Section 457 FICA Alternative Retirement Plan.
SECTION 3. The City's Plan Administrator is hereby authorized to implement the
plan(s), execute the PARS legal documents on behalf of the City and to
take whatever additional actions are necessary to maintain the City's
participation in a Qualifying Retirement System for its part-time employees
and to maintain compliance of any relevant regulation issued or as may be
issued; therefore, authorizing him/her to take whatever additional actions
are req uired to a dm in ister the City's Qua lifying Retire ment Syste m for its
part-time employees.
PASSED AND APPROVED THIS 22nd OF May, 2006.
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ATTEST:
Patricia Hutson, City Secretary
APPROVED AS TO FORM AND LEGALITY:
George A. Staples, City Attorney
APPROVED AS TO CONTENT:
Department Head
CITY OF NORTH RICHLAND HILLS:
Oscar Trevino, Mayor
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CITY OF
NORTH RICHLAND HILLS
Department: Parks and Recreation
Presented by: Vickie Loftice
Council Meeting Date: 5-22-2006
Agenda NO.F.3
Subject PU 2006-037 Award of the Professional Services Contract to Lopez Garcia
Group in the amount of $117,150 for the Boulevard 26 Trail Project - Resolution No.
2006-045
The current fiscal year Parks and Recreation CIP Budget includes funding for the
design and construction of the Boulevard 26 Trail (formerly City Walk Trail). The trail,
located along the drainage corridor between North Hills Hospital and the City Walk
development, will provide pedestrian linkages between the Hospital and the planned
office and retail development. This project is an approved Intermodal Surface
Transportation (ISTEA) Enhancement project and is identified as a primary trail
connection in the City-Wide Trail System Master Plan.
The original trail design, which began in 2003, was placed on hold pending the outcome
of the future development of the North Hills Mall property. The original consultant is no
longer available to complete the design work based on the new trail location and
alignment resulting from the development plans for the Medical Office Building and the
expanded hospital parking lot.
In accordance with the City's Consultant Selection Policy, in lieu of soliciting Requests
for Proposals, the Lopez Garcia Group was selected to perform the work because they:
- Are performing the civil engineering and hydraulic modeling for the Medical Office
Buildings and the construction documents for pedestrian bridge crossing.
- Have already collected hydraulic data and is familiar with the drainage
characteristic of this drainage corridor.
- Have studied and laid-out a trail alignment in relation to the long term plans for the
Hospital, the proposed development plans for the mall, and the existing
underground utilities along the drainage corridor.
An agreement in the amount of $117,150 has been negotiated. The proposed fee was
negotiated in concert with the Lakes at Calloway Creek Project (formerly Lakes at City
Walk) because many of the hydraulic modeling tasks required for the trail by TXDOT will
also required for the Lakes Project. Council will be considering the professional services
agreement for the Lakes Project at a future Council meeting.
While available funding is included in the approved project budget, additional funding
will be required for construction depending on final design. This change is anticipated in
the Parks Capital Improvement Budget and will be appropriately reflected in the
upcoming FY2006/07 budget. A Conflict of Interest Questionnaire has been provided
by Lopez Garcia Group and is on file with the City Secretary.
Recommendation: To approve Resolution No. 2006-045.
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RESOLUTION NO. 2006-045
BE IT RESOLVED BY THE CITY COUNCil OF THE CITY OF NORTH
RICHlAND HillS, TEXAS:
Section1: THAT the City Manager is hereby authorized to execute a professional
services contract with Lopez Garcia Group for the design of the Boulevard
26 Trail Project, as the act and deed of the City.
PASSED AND APPROVED THIS 22nd DAY OF MAY, 2006.
ATTEST:
CITY OF NORTH RICHLAND HILLS:
Patricia Hutson, City Secretary
Oscar Trevino, Mayor
APPROVED AS TO FORM AND LEGALITY:
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George A. Staples, City Attorney
APPROVED AS TO CONTENT:
Vickie Loftice, Director of Parks and Recreation
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CITY OF
NORTH RICHLAND HILLS
Department City Ma nager's Office
Presented by: Richard Torres
Council Meeting Date: 5-22-2006
Agenda No.F.4
Subject PU 2006-038 Award Bid for Mineral Lease of Northfield Park - Resolution No.
2006-036
In the fall of 2005, The City of North Richland Hills hired a Mineral Assets Manager with
J.P. Morgan Chase Bank N.A., to market and solicit bids for mineral leases on various
City properties. In February 2006, the City advertised, for three consecutive weeks, a
mineral lease bid for Northfield Park for a total of 32.759 acres. The terms of the lease
included a minimum signing bonus of $2,500 per mineral acre and a 250/0 royalty on all
natural gas produced. The signing bonus is to be paid up front upon execution of the
mineral lease document. The lease term is for two years and includes other provisions
to protect the City's interests. Within this two year period, if no drilling has occurred on
any property that Northfield Park has been pooled with, the lease will cease and then
the City will have the opportunity to re-lease the property. The lease is for minerals
only and no drillinq will be allowed on this City property.
The bids were publicly opened on March 19th, and the City of North Richland Hills
received bids from two local natural gas drilling and production firms:
Company
Harding Company
Dale Resources
Signing Bonus
$2,500 x 32.759 = $81,897.50
$2,700 x 32.759 = $88,449.30
Royalty
250/0
25%
The mineral assets manager, in conjunction with City Staff, has conducted an analysis
of the bids. The analysis not only considers the initial bonus payment to the City, but
the company's ability to drill, produce and sell gas from this particular site. The criteria
used in the analysis include the following:
* Bonus Money
* Number of Wells in Plan
* Barnett Drilling Experience
* Pipeline ROW Plan
* Closed Loop System
* Royalty
* Drilling Time Frame
* Access to Pipeline in Area
* Surrounding Acreage Leased
* Capital Available to do the Deal
The Mineral Assets Manager has prepared a mineral lease document that has been
reviewed by our City Attorney. This document will serve as the official lease agreement.
Approval of this agenda item would authorize the City Ma nager to execute the lease
agreement.
The Mineral Assets Manager representative will review the analysis and findings of all
the mineral proposals at the Executive Session, and then present the recommended
proposal at the public meeting.
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A Conflict of Interest Questionnaire has been provided and is on file with the City
Secretary.
Recommendation:
A recommendation will be presented following the Executive Session.
,N I~H
Resolution No. 2006-036
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH
RICHLAND HILLS, TEXAS THAT:
The City Manager is hereby authorized to execute a mineral lease agreement for
Northfield Park
PASSED AND APPROVED THIS 22nd OF MAY, 2006.
CITY OF NORTH RICHLAND HILLS:
Oscar Trevino, Mayor
ATTEST:
-
Patricia Hutson, City Secretary
APPROVED AS TO FORM AND LEGALITY:
George A. Staples, City Attorney
APPROVED AS TO CONTENT:
Richard Torres, Assistant City Manager
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CITY OF
NORTH RICHLAND HILLS
Department: City Manager1s Office
Presented by: Richard Torres
Council Meeting Date: 5-22-2006
Agenda NO.F.5
Subject PU 2006-039 Award Bid for Mineral Lease of Richfield Park - Resolution No.
2006-037
In the fall of 2005, The City of North Richland Hills hired a Mineral Assets Manager with
J.P. Morgan Chase Bank N.A., to market and solicit bids for mineral leases on various
City properties. In February 2006, the City advertised, for three consecutive weeks, a
mineral lease bid for Richfield Park for a total of 42.49 acres. The terms of the lease
included a minimum signing bonus of $2,500 per mineral acre and a 250/0 royalty on all
natural gas produced. The signing bonus is to be paid up front upon execution of the
mineral lease document. The lease term is for two years and includes other provisions
to protect the City's interests. Within this two year period, if no drilling has occurred on
any property that Richfield Park has been pooled with, the lease will cease and then the
City will have the opportunity to re-lease the property. The lease is for minerals only
and no drillinq will be allowed on this City property.
The bids were publicly opened on March 19th, and the City of North Richland Hills
received bids from two local natural gas drilling and production firms:
Company
Harding Company
Dale Resources
Signing Bonus
$2,500 x 42.49 = $106,225
$2,700 x 42.49 = $114,723
Royalty
250/0
250/0
The mineral assets manager, in conjunction with City Staff, has conducted an analysis
of the bids. The analysis not only considers the initial bonus payment to the City, but
the company's ability to drill, produce and sell gas from this particular site. The criteria
used in the analysis include the following:
* Bonus Money
* Number of Wells in Plan
* Barnett Drilling Experience
* Pipeline ROW Plan
* Closed Loop System
* Royalty
* Drilling Time Frame
* Access to Pipeline in Area
* Surrounding Acreage Leased
* Capital Available to do the Deal
The Mineral Assets Manager has prepared a mineral lease document that has been
reviewed by our City Attorney. This document will serve as the official lease agreement.
Approval of this agenda item would authorize the City Ma nager to execute the lease
agreement.
The Mineral Assets Manager representative will review the analysis and all aspects of
the mineral leasing at Executive Session.
,. A Conflict of Interest Questionnaire has been provided and is on file with the City
Secretary.
Recommendation:
A recommendation will be made at the Council meeting following the Executive
Session.
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eNi~H
Resolution No. 2006-037
BE IT RESOLVED BY THE CITY COUNCil OF THE CITY OF NORTH RICHlAND
HillS, TEXAS THAT:
The City Manager is hereby authorized to execute a mineral lease agreement for
Richfield Pa rk.
PASSED AND APPROVED THIS 22ND OF MAY, 2006.
CITY OF NORTH RICH LAND HillS:
Oscar Trevino, Mayor
ATIEST:
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Patricia Hutson, City Secretary
APPROVED AS TO FORM AND lEGAlITY~
George A. Staples, City Attorney
APPROVED AS TO CONTENT:
Department Head
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CITY OF
NORTH RICHLAND HILLS
Department: City Manager1s Office
Presented by: Richard Torres
Council Meeting Date: 5-22-2006
Agenda No.F.6
Subject: PU 2006-040 Award Bid for Mineral Leases of Fossil Creek Park and Linda
Spurlock Park - Resolution No. 2006-038
In the fall of 2005, the City of North Richland Hills hired a Mineral Assets Manager with
J.P. Morgan Chase Bank N.A., to market and solicit bids for mineral leases on various
City properties. In February 2006, the City advertised, for three consecutive weeks, a
mineral lease bid for Fossil Creek and Linda Spurlock Park for a total of 58.4228 acres.
The terms of the lease included a minimum signing bonus of $2,500 per mineral acre
and a 250/0 royalty on all natural gas produced. The signing bonus is to be paid up front
upon execution of the mineral lease document. The lease term is for two years and
includes other provisions to protect the City's interests. Within this two year period, if no
drilling has occurred on Fossil Creek Park, or property that either property has been
pooled with, the lease will cease and then the City will have the opportunity to re-lease
the property. The lease will provide for drillinq permission on Fossil Creek Park only.
The lease for Linda Spurlock Park is for minerals onlv and no drillina will be allowed on
this City property.
The bids were publicly opened on March 7th, and the City of North Richland Hills
received bids from two local natural gas drilling and production firms:
Company Signing Bonus
Harding Company $2,500 x 58.4228 = $146,057.00
FSOC Gas Company, Ltd. $3,000 x 58.4228 = $175,268.40
Royalty
260/0
250/0
The mineral assets manager, in conjunction with City Staff, has conducted an analysis
of the bids. The analysis not only considers the initial bonus payment to the City, but
the company's ability to drill, produce and sell gas from this particular area. The criteria
used in the analysis include the following:
* Bonus Money
* Floodway Issue Experience
* Surface Damage Payment
* Number of Wells in Plan
* Ba rnett Drill ing Experie nce
* Pipeline ROW Plan
* Closed Loop System
* Royaltý
* R ig Access
* Override for Offsite Wells
* Drilling Time Frame
* Access to Pipeline in Area
* Surrounding Acreage Leased
* Capital Available to do the Deal
The Mineral Asset Manager has prepared a mineral lease document that has been
reviewed by our City Attorney. This document will serve as the official lease agreement.
Approval of this agenda item would authorize the City Ma nager to execute the lease
agreement.
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The Mineral Assets Manager representative will review the analysis and mineral leases
at the Executive Session, and present the recommended proposal at the Council
meeting.
A Conflict of Interest Questionnaire has been provided and is on file with the City
Secretary.
Recommendation:
A recommendation will be presented at the Council meeting following the Executive
Session.
" N I~H
Resolution No. 2006-038
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH
RICHLAND HILLS, TEXAS THAT:
The City Manager is hereby authorized to execute a Mineral Lease Agreement
for Fossil Creek Park and Linda Spurlock Park
PASSED AND APPROVED THIS 22ND OF MAY, 2006.
CITY OF NORTH RICHLAND HILLS:
Oscar Trevino, Mayor
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ATTEST:
Patricia Hutson, City Secreta ry
APPROVED AS TO FORM AND LEGALITY:
George A. Staples, City Attorney
APPROVED AS TO CONTENT:
Richard Torres, Assistant City Manager
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CITY OF
NORTH RICHLAND HILLS
Department Police
Presented by: Jimmy Perdue
Council Meeting Date:5-22-2006
Agenda NO.F.7
Subject: GN 2006-034 Removal, Impoundment of Abandoned Vehicles on Highways -
Ordinance No. 2883
Vehicles that become disabled or abandoned on the side of the highway are visibly
unattractive and quickly become traffic hazards. For any vehicle not in the lane of traffic,
current state law requires the police to place a notice on the vehicle and wait a time
period before removing it. During 2005, the Police Department towed 106 vehicles from
Loop 820 that had become disabled or been abandoned. Some of these were done
immediately due to being in the lane of traffic, but some were left on the side of the road
for several days until the statutory time had elapsed. During this interim time, these
vehicles sat in their disabled condition on the shoulder of the road, creating a distraction
to the passing motorists and a potential sign of neglect to the community. Each day
there are news reports of vehicles that have been struck while on the side of the road
leading to additional injury and damage further demonstrating the problem.
Once passed, Ordinance No. 2883 will amend Article IV of Chapter 24 of the North
Richland Hills Code of Ordinances allowing a police officer to immediately tow any
vehicle left disabled or abandoned on the shoulder of a highway. Officers would still be
encouraged to use their discretion in towing vehicles using indications such as flashers,
warm engine, or note on dashboard to determine the amount of time the vehicle has
been a bandoned. However, the enactment of this type of ordinance would eliminate the
mandatory 48-hour restriction and allow the officer to remove the vehicle at an
appropriate time and under the best circumstances for the officer's safety. This
Ordinance has been constructed to allow for the widest degree of discretion, and the
Police Department1s General Order will provide further guidance in the use of this
discretion. This would have no effect on those vehicles that are in the lane of traffic or
otherwise blocking a roadway as those can be removed immediately. In addition,
vehicles left abandoned on a residential street would still be subject to the waiting
period.
Recommendation:
To approve Ordinance No. 2883
ORDINANCE NO. 2883
AN ORDINANCE AMENDING ARTICLE IV OF CHAPTER 54 OF THE NORTH
RICHlAND HillS CODE OF ORDINANCES AND PROVIDING FOR THE
REMOVAL AND IMPOUNDMENT OF VEHICLES WHEN SUCH VEHICLES
ARE IllEGAllY PARKED, ABANDONED, STOLEN, DISABLED, OBSTRUCT
TRAFFIC OR A DRIVE, CONSTITUTE A HAZARD OR WHEN THE DRIVER IS
ARRESTED; PROVIDING A SEVERABiliTY AND SAVINGS CLAUSE.
WHEREAS, the City Council desires to empower its police officers to have vehicles
removed from public streets and highways under the circumstances
provided for herein in order to better provide for safety of the motoring
public and preserve property; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY COUNCil OF THE CITY OF NORTH RICH LAND
H IllS, TEXAS:
Section 1: THAT Article IV of Chapter 54 of the North Richland Hills Code of
Ordinances be amended by adding a new Section 54-160 which shall read
as follows:
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USec. 54-160. Removal, impoundment of illegally parked, disabled, etc., vehicles
ge ne rally.
(a) Whenever any police officer finds a vehicle parked, stopped or standing in
violation of any of the provisions of this chapter, such officer is hereby authorized
to move such vehicle, or require the driver or other person in charge of the
vehicle to move the same.
(b) Any police officer is hereby authorized to have the city's contract wrecker
service remove a vehicle from a highway to the impoundment facility operated by
the city's contract wrecker service, under the circumstances hereinafter
enumerated:
(1) When any vehicle is left unattended upon any bridge, viaduct or
causeway, or in any tube or tunnel where such vehicle constitutes an
o bstructio n to traffic.
(2) When any vehicle is illegally parked so as to block the entrance to
a ny private driveway and it is impracticable to move such vehicle from in
front of the driveway to another point on the highway.
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(3) When any vehicle is found on a highway and report has previously
been made that such vehicle has been stolen or complaint has been filed
and a warrant thereon issued charging that such vehicle has been
embezzled.
(4) When any such officer has reasonable grounds to believe that any
vehicle has been abandoned.
(5) When a vehicle upon a highway is so disabled that its normal
operation is impossible or impractical and the person in charge of the
vehicle is incapacitated by reason of physical injury or other reason to
such extent as to be unable to provide for its removal or custody, or is not
in the immediate vicinity of the disabled vehicle.
(6) When an officer arrests any person driving or in control of a vehicle
for an alleged offense and such officer is by this Code or other law
required to take the person arrested immediately before a magistrate.
(7) When, in the opinion of the police officer, the vehicle constitutes a
hazard, or interferes with a normal function of a governmental agency, or
by reason of any catastrophe, emergency or unusual circumstance the
safety of the vehicle is imperiled.
(c) Any vehicle pa rked in violation of the Code or other ordinances of the city
may be removed and impounded at the direction of the police department.."
Section 2: 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 3: All rights and remedies of the City of North Richland Hills are expressly
saved as to any a nd all violations of the provisions of any ordina nces
affecting health and safety which have accrued at the time of the effective
date of this ordinance; a nd, 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.
.. AND IT IS SO ORDAINED.
Passed and approved this 22nd day of May, 2006.
CITY OF NORTH RICH LAND HILLS
By:
Oscar Trevino, Mayor
ATTEST:
Patricia Hutson, City Secretary
APPROVED AS TO FORM AND LEGALITY:
George Ä. Staples, Attorney
. RECOMMENDED BY:
Jimmy Perdue, Chief of Police
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CITY OF
NORTH RICHLAND HILLS
DepartmentCity Secretary
Presented by: Jimmy Perdue
Council Meeting Date:5-22-2006
Agenda NO.F.8
Subject: GN 2006-041 Ordinance Prohibiting Minors' Possession of Aerosol
Paint/Markers; Providing Notice and Abatement of Graffiti - Ordinance No. 2884
Graffiti is a problem for most metropolitan cities and North Richland Hills is no
exception. Graffiti is used for a variety of purposes including communications among
groups, marking territory, intimidation and destruction of property. Much of the graffiti is
done by "taggers" who are individuals that use the property of others as the "canvas" to
display their handiwork. Regardless of the reason, graffiti is damaging to property and
can have a cumulative effect of reducing property values and increasing the likelihood
of further criminal activity. It is critical to first reduce the application of the graffiti then to
quickly remove any that has been done.
Currently the City of North Richland Hills has no specific ordinance addressing graffiti or
the instruments used to make the graffiti. Texas State law (Penal Code 28.08) makes it
an offense to "knowingly make markings" including inscriptions" slogans, drawings, or
paintings, on the tangible property of the owner without the effective consent of the
owner..." However, this law focuses on action after the graffiti has already been done. A
new city ordinance is needed that will allow the Police Department to take enforcement
action on the graffiti as well as the possession of the instruments used to create the
graffiti. In addition, this proposed ordinance would place the responsibility on the
property owner to remove the graffiti in a timely manner. This rapid removal is critical to
reducing the spread of the graffiti and helps create a sense of responsibility and
ownership by the community. It also removes one of the key reasons that the graffiti
was likely done which is to draw attention to the message contained in the graffiti.
The City understands that the removal of the graffiti may be an economic hardship on
some; and, accordingly, this proposal includes a provision that allows the property
owner to grant permission to the City to come onto their property and remove the graffiti
at the City's expense. The Police Department has already obtained a grant from our
local Wal-Mart to purchase the removal equipment, and it would be operated by a crew
from the Public Works Department. The administration of the ordinance would be done
between the Police Department, Code Enforcement and Public Works, all of which have
vital roles to play in its success. This Ordinance would become part of Chapter 50, the
"Offenses and Nuisances" section.
Recommendation:
To approve Ordinance No. 2884
...Ni~H
ORDINANCE NO. 2884
AN ORDINANCE OF THE CITY OF NORTH RICHLAND HILLS, TEXAS
PROHIBITING THE POSSESSION OF AEROSOL PAINT AND
INDELIBLE MARKERS BY MINORS AND PROVIDING FOR NOTICE
AND ABATEMENT OF GRAFFITI BY THE CITY; PROVIDING FOR
ASSESSMENT OF EXPENSES AGAINST THE PROPERTY;
PROVIDING THAT THIS ORDINANCE SHALL BE CUMULATIVE OF
ALL ORDINANCES; PROVIDING A SEVERABILITY CLAUSE;
PROVIDING A PENALTY; PROVIDING A SAVINGS CLAUSE;
PROVIDING FOR PUBLICATION IN THE OFFICIAL NEWSPAPER;
AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of North Richland Hills is a home rule municipality located in
Tarrant County, created in accordance with the provisions of Article XI, Section 5 of the
Texas Constitution and Chapter 9 of the Texas Local Government Code and operating
pursua nt to its charter and laws of the State of Texas; and
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WHEREAS, the city council finds that the use of graffiti by persons in the city has
grown to such significant levels that areas of the city, both public and private, are
blighted by its existence; and
WHEREAS, the city council also finds that graffiti is a method of communication
for individuals who engage in illegal activities, thus serving as an aid to the proliferation
of crime; and
WHEREAS, the city council finds that graffiti is detrimental to the safety and
welfare of the public, tends to reduce the value of private property, and invites
vandalism and additional graffiti; and
WHEREAS, the control of graffiti is within the police power of the city; and
WHER EAS, the city council hereby declares graffiti on property where it is visible
from any other public or private property to be a nuisance.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF NORTH RICHLAND HILLS, TEXAS:
SECTION 1. That Chapter 50, IIOffenses and Nuisances:' of the Code of
Ordinances of the City of North Richland Hills, as amended, is amended by adding a
new Article III to read as follows:
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IIARTICLE III. GRAFFITI
Sec. 50.40. Definitions.
I n this article:
AEROSOL PAINT means an aerosolized paint product, including, but not limited
to, a clear or pigmented lacquer or finish.
GRAFFITI means an unauthorized inscription, work, signature, symbol, design,
or other marking which is etched, engravement, written, painted, drawn, or applied in
any other way to a structure, building, or property.
INDELIBLE MARKER means a device that makes a mark with a paint or ink
product that is specia lIy formulated to be more difficult to erase, wash out, or remove
than ordinary paint or ink products.
MINOR means a person younger than 17 years of age.
OWNER means a person who owns or is in control of property.
UNAUTHORIZED means without the permission of the owner of property.
Sec. 50.41. Possession of Ae rosol Pa int and I ndeli ble Markers.
(a) Offense. A minor commits an offense if the minor possesses aerosol
paint, or an indelible marker.
(b) Defenses. It is a defense to prosecution under Subsection (a) that the
minor possessed the aerosol paint or indelible marker while the minor was:
(1)
(2)
school project;
accompanied or supervised by a parent or guardian;
accompanied or supervised by a teacher in connection with a
(3)
(4)
supervised during the minoris regular employment;
on the property on which the minor lives;
(5) engaged in an organized event sponsored or supervised by the
city, a school, a church or other officially recognized organization; or
(6) traveling to or from the events described in subsection (5) with an
indelible ma rker.
.... Sec. 50.42. Placement of Graffiti.
A person commits an offense if the person places graffiti on property.
Sec. 50.43. Failure to Remove Graffiti.
An owner of property commits an offense if the owner fails to remove graffiti from
the owner's property if the graffiti is visible from public or private property other than the
property on which the graffiti exists.
Sec. 50.44. Notice and Abatement by Owner or City.
(a) Notice of citation or abatement. The city must notify the property owner
of a violation of this article, and must give the owner the opportunity to remove the
graffiti before:
(1) issuing a citation for a violation of Section 50.43; or
(2) entering the property and doing the work necessary to remove or
cover the graffiti and abate the nuisance.
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(b) Waiver of notice. The property owner may waive the right to notice and
the opportunity to remove the graffiti by filing a written statement with the city secretary
giving the city permission to enter the property and abate the nuisance.
(c) Method of notice. Notice must be given:
(1) in writing personally delivered to the owner; or
(2) by letter addressed to the owner1s address as listed on the most
recent ad valorem tax rolls; or
(3) if personal service cannot be obtained or the owner's address is
unknown:
(i) by publication in the official newspaper at least twice within
10 consecutive calendar days; or
(i i) by posting the notice 0 n or nea r the front door of each
structure or building on the property to which the violation relates; or
(iii) if the property does not contain any buildings, by posting the
notice on a placard or sign attached to a stake driven into the ground on the property to
which the violation relates.
(d) Contents of notice. The notice shall contain:
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e (g) Work by city. If the owner does not comply with this article by the 10th
calendar day after notice is deemed received, the city may enter the property or
authorize another to enter the property and do or cause to be done all work necessary
to abate the graffiti. If the city performs or causes to be performed the abatement work,
the city shall initially pay for the work done, and may, at its sole discretion, charge the
expenses to the owner of the property.
(h) Liability for work. The city shall not be responsible for the color or
quality of the paint or any damages done to the owner's property while abating the
nuisance on the property.
Sec. 50.45. Informal Hearing.
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If within five calendar days after receiving notice, the property owner files a
written request with the city secretary according to Section 50.44(d)(6), the director of
code enforcement or his designee shall hold an informal hearing. Unless the owner
requests and is granted an immediate hearing and waives the right to notice, notice of
the time and place of the hearing shall be sent to the owner by certified mail. At the
hea ring, the owner may provide evidence or testimony that a violation does not exist
and abatement is not warranted. After the hearing, the director of code enforcement or
his designee may determine whether a violation requiring abatement exists. Failure of
the property owner to timely request a hearing or to appear at a hearing constitutes a
waiver of any right to challenge the abatement of the violation.
Sec. 50.46. Assessment of Expenses; Lien.
The city may assess expenses incurred by the city for the abatement of graffiti
pursuant to Section 50.44 against the real property on which the work was done. To
obtain a lien against the property, the city shall file with the county clerk of Tarrant
County a statement of expenses and a copy of the notice that the city provided to the
owner. The lien is security for the expenditures made and interest accruing at the rate
of 10 percent per annum on the amount due from the date of payment by the city. The
lien is inferior only to tax liens and liens for street improvements.
Sec. 50.47. Assistance in Removal.
If an owner is in need of assistance in removing graffiti from the owner1s property,
the owner may submit a written request for assistance and a signed uHold Harmless
Agreement" to the police chief or his designee within five calendar days after receiving
notice. "
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SECTION 2. Cumulative. This ordinance shall be cumulative of all provisions of
ordinances and of the Code of the City of North Richland Hills, as amended, except
where the provisions of this ordinance are in direct conflict with the provisions of other
ordinances or the Code, in which event the terms of this ordinance shall prevail over the
conflicting provisions of other ordinances, but such other ordinances shall be deemed to
e be repealed only to the extent of such conflict and shall otherwise continue in full force
a nd effect.
SECTION 3. Severability. It is hereby declared to be the intention of the city
council that the phrases, clauses, sentences, paragraphs, and sections of this
ordinance are severable, and if any phrase, clause, sentence, paragraph, or section of
this ordinance shall be declared unconstitutional by the valid judgment or decree of any
court of competent jurisdiction, the unconstitutionality shall not affect any of the
remaining phrases, clauses, sentences, paragraphs, and sections of this ordinance,
since they would have been enacted by the city council without the incorporation in this
ordinance of any such unconstitutional phrase, clause, sentence, paragraph, or section.
SECTION 4. Penalty. 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 $500 for each offense. Each
day that a violation is permitted to exist shall constitute a separate offense.
SECTION 5. Newspaper Publication. The city secretary is directed to publish
this ordinance, or its caption and penalty clause, in the official city newspaper as
required by the Texas Local Government Code.
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SECTION 6. Effective Date. This ordina nce shall be in full force and effect from
and after its final passage and publication as required by law, and it is so ordained.
PASSED AND APPROVED ON THIS 22nd DAY OF MAY, 2006.
CITY OF NORTH RICH LAND HILLS
By:
Oscar Trevino, Mayor
A TrEST:
Patricia Hutson, City Secretary
APPROVED AS TO FORM AND LEGALITY:
George A. Staples, Attorney
RECOMMENDED BY:
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Jimmy Perdue, Chief of Police
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CITY OF
NORTH RICHLAND HILLS
DepartmentFinance
Presented by: Larry Koonce
Council Meeting Date:5-22-2006
Agenda No.F.9
Subject: GN 2006-038 Approve Investment Strategy and Investment Policy Update _
Resolution No. 2006-039
The Public Funds Investment Act ("PFIA") requires that the City Council review and
adopt the City's Investment Strategy and Investment Policy annually. Council last
reviewed and adopted these May 23, 2005. Occasional legislative changes in the PFIA,
as well as changes in the economic environment affecting investment decisions, require
revisions to the Investment Strategy and Investment Policy. Several revisions have
been made to the attached investment documents to maintain compliance with the
PFIA, respond to economic conditions, and improve and update general procedures. .
The Investment Committee has reviewed and recommends the following revised
Investment Strategy and Investment Policy. Significant changes, shown in the red lined
type, are as follows:
Investment StrateQY
· There were no significant changes made to the Investment Strategy this year.
I nvestment Policy
· A statement explaining that the City's funds shall be invested in accordance with City
Ordinance 2079, was included under the Purpose and Objectives Chapter, section
A. A sentence which explains that the investment policy addresses the methods,
procedures, and practices for managing the City's funds was incorporated into the
same section.
· In compliance with GASB Statement 40, language was added to the investment
policy to expla in how the City will ha ndle the safety of principa I, liquidity, public trust,
and optimization of interest earnings under the Purpose and Objectives Chapter,
section 8, on pages 3, 4, and 5.
· Under Cha pter II on page 5, a statement has been added to clearly define that the
investment policy does not apply to assets administered for the benefit of the City by
outside agencies. The General CIP Fund was added to the list of funds participating
in consolidated investments to be consistent with the Investment Strategy.
· In Chapter III, a section for Quality and Capability of Investment Management was
added to state that the City sha II provide periodic training to investment personnel.
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· Section C was added to Chapter III, Responsibility and Control, to clarify the two
year training period is based on the anniversary of the previous ten hours of training
received.
· In Chapter V, language was added to specify when and under what circumstances
the City would be required to liquidate an investment.
· In Chapter V, section A, number 5, the definition of the depository institution allowed
to sell a certificate of deposit to the City was modified based on legislative changes.
· Modifications were made to Chapter V, Suitable and Authorized Investments,
section A, number 7.b., to clarify the conditions under which a no-load mutual fund is
an acceptable investment.
· Chapter V, Suitable and Authorized Investments, section A, number 8.a., was
changed from a credit rating of investment grade to AAA or AAAm or an equivalent
rating.
· The collateral levels in Chapter VIII, section S., were increased to reflect changes in
the current market.
· In paragraph five of Chapter X, the statement regarding the annual review of the
City's depository contract was changed to at least once every six months.
· In Chapter XI, reflects that City Ordinance 2079 authorizes the City Manager to
revise the investment policy due to updates of applicable state or federa Ilaws.
· The Public Funds Collateral Act (Appendix H) on page 82 has been included for
reference.
Other minor changes were made as deemed necessary to improve grammar and
spelling throughout the documents. Such minor changes, which do not materially
change the strategy or policy, are not shown in red line type. The order of sections has
been rearranged; however, the content of those sections has not changed.
Overall, the revised Investment Strategy and Investment Policy are designed in a
manner responsive to the public trust and consistent with federal, state and local law.
Staff submitted the Investment Strategy and Investment Policy to GTOT (Governments
Treasurers of Texas) in 2005 and was awarded the Certificate of Distinction, which is
good for two years. The City's Investment Policy was also certified by the Association of
Public Treasurers in 2005.
Recommendation:
Approve Resolution No. 2006-039
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RESOLUTION NO. 2006-039
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND
HILLS, TEXAS, THAT:
1.
The City of North Richland Hills acknO\lVledges the high priority of providing the necessary
guardianship of public funds in the municipal sector.
The City Council expressly intends to set high fiscal standards, delegate treasury and
investment duties to appropriate officials, and to review the actual performance at regular
interva Is.
The City Council hereby intends to implement investment requirements set forth in Tex. Rev.
Civ. Stat. Ann., Art. 4413 (34c) and 2256.
2.
The City Council has reviewed and hereby adopts the City of North Richland Hills' Investment
Strategy Statements dated May 22, 2006, as prepared by the City's Investment Committee.
These Investment Strategy Statements replace the previous document dated May 23, 2005.
The City Council has also reviewed and hereby adopts the City of North Richland Hills'
Investment Policy dated May 22, 2006, including all revisions and changes required under state
law or recommended by City staff. This Investment Policy replaces the investment policy dated
May 23, 2005.
PASSED AND APPROVED this 22nd day of May 2006.
APPROVED
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Oscar Trevino, Mayor
ATTEST:
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Patricia Hutson, City Secretary
APPROVED AS TO FORM AND LEGALITY:
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George Staples, City Attorney
APPROVED AS TO CONTENT:
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Larry Koonce, Director of Finance
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CITY OF NORTH RICHLAND HILLS
INVESTMENT STRATEGY
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MAY 22, 2006
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PREFACE
It is the polic~' of the City of North Richland Hills that, giving due regard to the safety and
risk of investment, all available funds shall be In'.lested in conformance vlith State and
Federal Regulations. applicable Bond Re50lution requirements, and the adopted
Investrnenl Policy and In'lestrnenl Strategy.
In accordance \\"th the Public Funds Investment Act (Texas Government Code 1 0, Chap1er
2256). the City of North Richland Hills' investment strategies shall address the follovling
priorities (in order of importance):
· Understanding the sUitability of the Investment to the financial requirements
of the Ci1y
. Preserva1ion and safety of principal
L iq utdity
Marketability of the investment prior to maturity
DiversIfication of the Investment portfolio
· Optlmizatio n of in te rest ea rnl ngs
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Erfective investment strategy developrnent coordinates the pritlla ry objecti',es of the City of
North Richland Hills' Investment Polley and cash management procedures to enhance
interest earnings and reduce investment risk. Aggressive cash management "viII increase
the available 'investment period" and subsequently interest earnings. Maturity selections
shall be based on cash flav, and market conditions to take advantage of various interest
rate cycles The City's investn1ent portfolio s~)all be designed and managed in a manner
responsive to the public trust a nd consistent 'Nith the In\iestnlent Policy.
Each major fund type has varying cash flO'N requirements and liquidity needs. Therefore
specific strategies shall be Implemented conSidering the fund's unique requirements. The
Cily·s Funds shalt be analyzed and invested according 10 the folloY¡ing major fund types:
I. Ope~t)ng Funds
II. Capital Improvement Funds
III. Debt Ser",iœ Funds
IV. General Fund Balance Reserve
V. Revenue Bond Reserves
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INVESTMENT STRATEGY
In order to minimize risk of Joss due to Interest rate fluctuations, investment matufJties '~jill
not exceed the anticipated cash flo~'J requirements of the funds. Investment guidelines by
fund type are as folloVJs'
I.. Operatina Funds
The City of North Richland Hills Operating Funds are as follo\AJs:
. General Fund
· Special Revenue Funds
Special InvestIgation Fund
Drainage Utility Fund
Crime Control and Prevention District Fund
PrürnoUonal Fund
Econümic Developrnent Fund
Donations Fund
Parks and Rec·reation Facilities Development Fund
· Enterprise Fl.nds
Utility Fund
Aquatic Park Fund
Golf Course Fund
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· Internal Service Funds
Building Ser\liœs Fund
Equipment Services Fund
Self-lnSLlrance Fund
Information ServIces Fund
· Capìtal Projects Funds
General CIP Fund
Street Maintenance Fund
Side'''Jalk Maintenance Fund
· Component Units
Tax Increment Financing District 1 (TIF #1)
'-" Tax Increment Financing District 2 (TIF #2)
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1) Suitability - Any investment eligible in the Investment Policy is suitable for the
Operating Funds.
2) Sa fely of Principal- All investments sha II be high quality securrtie6 with no percei\#ed
default risk. The maximum allovwable in'iestmen1 ìn æmmercial paper shall be
limited to 10% of total OperatIng Fund investments. Market price fluctLlatíons ~¡ill
occur. By nlanagìng the \t'leighted average days to maturity for the operating fund
portfolio to less than 270 days and restricting the maximurTl a lIo\va ble ITlaturity to
three years the price vúlatility of the overall portfolio ",,,ill be rninirnized
3) MarketabllJty - Securltìes v¡ith acti'>le and efficient secondary markets are necessary
in the event of an unanticipated cash requirement. Historical market "spreads"
bet\veen the bid and offer price of a particular security type of less than 0.25% '~¡iII
define an efficient secondary rnarket
4) LiqlJidity - Tt1e Operating Funds require the greatest short-tenllliquidity' of any of tl1e
fund types Stlort-tenn constant dollar investrnent pools and money rnarket rnutual
funds shall provide daity liquidity and ma)' be ~Itílízed as a competitive yíeld
alternative to fJxed maturity investments.
5) Diversification - Investment maturitie5 ~hall be staggered throughout the fiscal year
to provide cash flow based on the anticipated operating needs of the City. Market
cycle risk 'Nill be reduced by diversifying the appropriate maturity strudure
throughout t'NO yea rs and diversification by market sector.
6) Yield - AttainIng a competitive ma rket Yield for campa rable security-types and
portfolio restrictions is the desired objective. The City's portfolio shall be designed
'tlv'ith the purpose of obtaining a rate of return, through budgetary and economic
cycles. commensurate vlith the in'w'estment risk, policy constraints and cash flov",
requirements.t
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II. Capital Improvement Funds
The City of North Richland Hills Capitallrnprovement Funds are comprised of the nl0nies
available from the sale of debt and other sources to finance capital impro',,'ement projects.
Bond proceeds are segregated from operating funds on the general ledger and in
investment accounts for arbitrage compliance purposes. Capital Improvement Funds
include all funding for the design and construction of capital projects. including streets,
dra inage facilities. utility adjustrnents, park irnpro\Iements, and municipal building as well as
tt1e acquisition of ca pltal assets.
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1) Suitability -Any investment eligible in the Inv€shnent Policy is suitable for Capital
Irnpro'y'ernent Funds.
2) Safety of Princlpal- AI/Investments shall be hígh quality securities with no perc.ei','ed
default fisk. The maximum allo'Nable Investment in commercial paper shall be
limited to 100k of total Capital Improvement Fund in\..'estments. Market price
fluctuations \iv'iII occur By managing the '"arious Capital hnprovement accounts in
anticipation of cash flo'w requirernents. the impact of market risk for the portfolio "viii
be mïnimized.
3) rV'larketabìlity - Securttìes YJith active and effIcient secondary markets are necessary
In the event of an unanticipated cash reqllirement. Historiçal market "spreads"
betv~een the bid and offer price of a particular security type of less than 0.25% vvill
define an efficient secondary rnarket
4) Liquidity - The City's funds used for construction and capital ímprovement programs
have reasonably predictable dra~'.' do\"/n schedules Therefore, Investment maturïlies
shall generally follo\N the anticipated cash floYJ requirements. In\"estment pools and
money market mutual funds shall provide readily available funds generally equal to
one month's anticipated cash f1o',~ needs, or a competitive alternative for short-term
fixed maturity investn1ents A singula r repurchase agreement may be utilized if
disbursements are allo\Ned in the arnount necessary to satisfy any expenditure
request. This In~estment structure is commonly referred to asa Flexible Repurchase
Ag r eeme nt.
5) Diversification - Market conditIons and arbitrage regulations influence the
attractiveness of staggering the maturity of fixed rate investments for bond proceeds
and other construction and capital improvement funds. VJith bond proceeds, if
Investment rates exceed the applicable a rbitrage Yield, the City is best sef\led by
locking in most investments, If the a rbitrage Yield cannot be exceededr then current
market conditions volill determine the attractiveness of diversifying maturities or
investing larger amounts for a shorter period At no time \¡vill the anticipated
expenditure schedule be exceeded in an attempt to increase yield \J/ith any City
funds.
6) 'Yield - Achieving a positive spread to the applicable arbitrage yield is the desired
objective for bond proceeds. The City's portfolio shall be designed \vlth the purpose
of obtaining a rate of retum, through bLldgetary and economic cycles,
commensurate vvith the investment risk, policy constraints and cash flovtJ
requirelnents.
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III. Debt Service Funds
The City's Debt Service funds include the General Debt Service Fund and the Sales Tax
Re'lenue Debt Service Fund. The General Debt Service Fund is funded from ad valorem
tax collections and transfers from V8rtOUS other funds. The Sales Tax Revenue Debt
Service Fund is funded solely from transfers from the Park and Recreation Facilities
Development Fund
1) Suitability - Any investment listed as eligible in the Investment Policy is suitable for
the Debt Seniiœ Funds
2) Safety of Principal- All Investments sha II be high quality securities 'oNith no perceived
default risk The maXimlJnl allo\'Vable in'/estment in eürnmercia I paper shall be
limited to 10% of total Debt Service Fund investments Market price fluctuations VI/ill
ho\'\'e'Yer occur. By limiting the Debt Service FLlnds Portfolio matLlrity dates to 1he
next scheduled debt service payment. the market risk of the overall portfolio ~'ill be
minimized.
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3) r.JIarketability - Securities \lJith active and efficient secondary n..a rkets are not
necessary as the event of an unanticipated cash requiren1ent is not probable.
4) Liquidity - Debt servIce funds have predictable payment schedules. Therefore.
investrnent Illalurities shall not exceed the anticipated cash flow requirernents.
In'Jestment pools and money market mutual funds may provide a competitive J'ield
alternative for time deposits and short-term fixed maturity investments. A sIngular
repurchase agreement may be utilized if disbursements are allo~'Jed in the an10unt
necessary to satisfy any expenditure request This investment ~ructure is commonly
referred to as a Flexible Repurct1ase Agreement
5) Diversification - Market conditions influence the attractiveness of futty extending
maturities to the next unfunded payrnent date. Generally, if investrnent rates are
trending dovvn t the City IS best served by locking In most Investments. If Interest
rates are f1at or trending up. then Cllrrent ma rket conditions ~vill determine the
attractiveness of extending maturity or investing in shorter term alternatives. At no
tilne shall the debt service schedule be e)(ceeded in an atte.npl to bolster yield.
6) Yield - Attaining a competitive market yield for comparable security-types and
portfolio restrictions is the desired objective The City's portfolio st1all be designed
'~'lIith the purpose of obtaIning a rate of return. through budgetary and economic
cycles. commensurate v~ith the investment risk, policy constraints and cash flov.¡
requirement5.
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IV. General Fund Balance Reserve
The City's objective regarding the General Fund Balance IS to mainta In a sllfficient fund
balance to operate the City for a period of sixty days or 15% of the following yea r's
budgeted expenditures The amount of funds to be invested in non-liquid other-than-
overnight investments shall be liJnited to not rnore than 500k of this anìount of the General
Fund Balance.
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1) Suitability - Any investment eligible in the Investment Policy is suitable for General
Fund Balance Reserves.
2) Safety of Principal - Generally. the investment quality of all securities alloV\'ed as
investrnenls in the Operating Funds \-vill be allo\lvable in the General Fund Balance
Reserve. All inves1ments shall be high quality securities \'"ith no perceived default
risk. The maxImum allo\vable Investment In c.ommercial paper shall be limited to
1 O(YO of total General Fund Balance Resen1e Investments. Market price fluctuations
viill occur. Under no circumstance shall any investment from this portfolio cause the
combined portfolio:s v¡eighted average nlaturity to exceed the nlaximum allowed by
ttle Investrnent Policy. The rnaximum allo\.vable maturity is restricted to three years.
3) Marketability - Securities V'Jith active and efficient secondary ITlarkets are necessary
in the event of an unanticipated cash requirement. Historical market "spreads"
bet\veen the bid and offer price of a particular security type of leBS than 0.25% v/iII
define an efficient secondary market.
4) Liquidity - The Fund Balance Reserve requIres the liquidity necessary to co':er the
City's expenditures in the event of a cash shortfall_ Short-term constant dollar
investment pools and money market mutual funds shall provide daily liquidity and
may be utilized as a competitive yield alternative to time deposits and fixed maturity
investments.
5) Diversification - Maturing investments shall be reinvested ~vithln the desired maturity
to pro'fide cash flow in the event that cash is needed for the operating needs of the
City. ~~arket cycle risk '.viII be reduced by diversifying the appropriate maturity
structure throughout three years and diversification by market sector
6) Yield - Attaining a conìpetitive ma rket yield for CO ITI pa rable security-types and
portfolio restrictions is the desired objective. The City's portfolio shall be designed
vy'ith the purpose of obtaining a rate of return, through budgetary and economic
cycles. commensurate \'~ith the Investment risk, policy constraints and cash flov~
requirements.
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V. Revenue Bond Reserves
Debt service reserves are required by bond covenants for a particular bond Issues. A Debt
Seriice Reserve portfolio shall be established to better con1p1y \vith bOnd covenant
requirements.
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1) SLlltabìlìty - Any in\lestment eligible In the Investment Policy IS suitable for Debt
Service Fund Reserves.
2) Safety of Principal - Generally, the Investment quality of all securities allov-'ed as
investments in the Qpera11ng Funds 'Nill be allO\II/3ble In the Debt Service Fund
Reserve. All investments shall be high quality securities 'uith no perceived default
risk. The maximum allo\\'able investment in comrnercial paper shall be limited to
10% of tota I Revenue Bond Reserve investments. Market price fluctuations "Jvill
occur. Under no circumstance shall any investment from this portfolio cause the
cûmbined portfolio:s 'vveighted average maturity to e)(ceed the maximum allow'ed by
the Investment Policy. The maximurn allov~able maturity is restricted to three years.
3) r\l1arketability - Securities w-lith active and efficient secondary markets are necessary
in the event of an unanticipated cash requirelnenl. Historical market "spreads"
betv~een the bid and offer price of a particular security type of less than 0.25% VI/ill
define an efficient secondary market. By utilizing the yield advantages of fixed
income securities, ma)(lmum YIeld should be attained ~vt1ile meeting cash
re quire nlents.
4) Liquidity - The Debt Service Reserve Fund~ require the amount of liquidity
necessary to convert securities into cash if needed for payrnent of debts on
schedule. Shorl-tenn consta nt dollar investment pO(1ls and rnoney fna rket rnutual
funds shall provide liquidity and may be utilized as a competitive yield alternative to
fixed maturity investments.
5) Di\lerSlflcatlon - Market cycle risk \Ntll be reduced by di'''ersifying the appropriate
maturity structure throughout three years and diversification by market sector.
6) Yield - Attaining a competitive market yield for comparable security-t'lpes and
portfolio restrictions ìs the de5ired objective. The City'$ portfolio shall be designed
\'.,.¡U1 the purpose (Jf obtaining a rate of return, through budgetary and economic
cycles. cornrnenSlIrate \'1I;tt1 U,e investrnent risk, policy constraints and cash flovoJ
requirements.
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CITY OF NORTH RICHLAND HILLS
INVESTMENT POLICY
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MAY 22, 2006
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TABLE OF CONTENTS
Page
Preface
I. Purpose and Objectives 2
II. Scope 4
III. Responsibility and Control 4
IV. Investment Commi11ee 7
v_ Suitable and Authorized Investments 8
VI. Investment Parameters 10
VII. Investment Procedures 11
VIII_ Custodial Credit Risk Management 13
IX. Arbitrage 16
X. DeposItories 16
e XI. Inve~ment Policy Adoption 1ï
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APPENDICES
Page
A. City of North Richland Hills Ordinance 2079 19
B Investrnent Bid Faun 21
SeclIri1y I nformatlon Worksheet 22
Broker/Dealer Rotation Procedures 23
Trading History by Broker 24
C. Broker/Dealer Questionnaire 25
D. Approved SecLJri1íes Dea lers 32
E. Primary Dealers 33
F. TBMA Master Repurchase Agreernent 34
G. Public Funds Investrnent Act of 1997 46
LJ Put} ¡ Î.: (: () I·. ri tc '"3 ,..,;. ¡/
! I
e I. Inter-Ioea I Agreemen1s 98
J. Glossary 108
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PREF,l,CE
UA public office is a public trust."
Charles Sumner, 1872
If a public office is a public trust. ttlen ttle trust must be adrninistered properly. Public funds are
acquired by governments largely through involuntary payments, particularly through taxation. In
a modem democratic society, pllblic offic.ials are obligated to manage these funds in a
dIsciplined manner
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In most cases, la\,vs govern the investment process La\'/s alone hovwrever cannot compel public
officials to a series of actions that assure the public's best interests. The actions of public
officials responsible for Investing public funds must be guided by knowledge, Skills, systems,
policies, procedures and c.onfJdence that can be desc.rlbed only as professional disc.lpline.
11 is the policy of the Cit·y' of North Richland Hills that giving due regard to safety a nd risk of
in\¡estments, all available funds shall be invested in conformance V'Ji1h these legal and
admInistratIve guidelines, and. to the maximum extent possible at the highest rates obtainable
at the time of the In'/estment.
Effecti\'e cash management is recognized as essential to good fiscal management An
aggressi\/e cash rnanagernenl and investrnent policy v~'11I be pursued to take ad'~iantage of
Investrnent interest as viable and ma1erial revenue 10 all opera11ng and ca pital funds.
[:::~ WVf:S~;ll::n~.f will be used in a manner that will best serve the
Interest of the City of North Richland Hills.
TIle City's portfolio stlall be designed and rnanaged in a manner responsive to the public trus1
and consistent \~ith state and locallaYl.
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L PURPOSE AND OBJECTIVES
A. Purpose
The purpose of this document is 10 set forth the specific in\iestment policy and strategy
guidelines for the Clt~' of North Richland Hills. All investment activity sha II be consistent
Vvith Texas lav.: as defined in Government Code 10, Chapter 2256, kno\'Jn as the Public
Funds In\;estment Act (the Act), and local la'N 1\ ,)("" "I :'~¡ (';,
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safety of investments a nd City funds
preservation of capita I and protec1ion of principa I
,naintena nee of sufficient liquidity 10 nlee1 operating needs
diversification of investrnents to avoid unreasonable risks
PLlblìc trust from prudent investment activitIes
optimization Of"'Fi.i;E--~:~;::\-.ç'~2..q~J.pft.¿, f~h'C::;'¡ '¡'Î;;;'n:r-CC"'1C for the City"s portfolio
The City is required under the Public Funds In·...·estn..en1 Act. Section 5, to adopt a
forrnal wrît1en InveshTlent Policy regarding the investrnent of its funds and funds under
its control. This policy is to be adopted annually to meet the requirements of the A,ct,
and has been revised periodically to comply 'Nrth updated state requirements,
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B. Objectives
.
The City shall manage and invest Its cash 'Nith four pnnlary objectives. listed in the
order of priorit)': safety. liquidity, public trust. and j'leld, expressed as op1imization of
The safety of the principal invested at\¡vays
rerl1ains the prirnary objective All investrllents shall be designed a nd managed in a
manner responSl'Ve to the public trust and consistent \AJith state and localla\"¡
An aggressive cash managemen1 program and investment policy "''VIII be pursued b~'
the Investn1ent Offlcer to take advantage of investment interest as viable and n1aterial
revenue to all operating and capital funds Casl1 l1ìanagement is defined as the
process of managing monies in order in ensure maximum cash availability and
maximum rnF~[:;;:) on short-term investments of idle cash.
The City's portfolio shall be designed and managed in a manner responsive to the
public trust, t¡(:c;rc from investments 'Nill be used in a manner that will best
serve the interests of the City of North Richland Hills,
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II, SCOPE
This in\/estment policy applies to all financial assets of the City of North Richland Hills in
all current funds, any funds to be created in the future. and any other funds held in
custody by the City. unless expressly prohibited by la\-.' or unless if IS in contraven11on of
any depository contract bet\veen the City and its depository bank. Ie ,./:c\;C1"
t tiP. L: r I(:~re 1- c r
These funds are accounted for in the City's ComprehenSive Annual Financial Report and
include:
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43eneral Fund
Speciallnve~tïgalion Fund
Crime Control and Prevention District Fund
Donations Fund
Drainage Utility Fund
Parks and Recreation Facilities
De\¡elopnlent FlJnd
Pron1otional Fund
Street Maintenance Fund
Sldevlalk 1\1alntenance Fund
Economic Development Fund
Debt Ser.'ìc,e Funds
Utility Fund
Golf Course Fund
Aquatic Pa r1< Fund
Self-Insurance Fund
Building Serv'!Ges Fund
Equipment Sen1ices Fund
Information Services Fund
Grant Fund
Tax Incre,nent Financing District No 1
Tax Increment Financing District No 2
Ca pital Improvements F Llnds
¡')'" ~'(j I' ,-'
The City VI,'iII consolidate cash balances frorn all funds 1:!
':"f:, (',:;.. ><L'~ to optirnize in'lestlnent incolne. In""estment income \'Vill be allocated to the
various funds based on their respective participation and in accordance \\llth generally
accepted accounting principles.
III. RESPONSIBIL TV AND CONTROL
A. Delegatïon of Authority
This Investnlent Policy and the outlIning of in',festment practices and authorities IS
compiled in accordance 'Nith the Public Funds Inves1ment AC1, V'/hich requIres the
adoption of rules governing investment policies and strategies a nd the \1esignation of
an Investrnent omcer~ as \"lell as City Ordinance i 2079 \lIhich designate8
Investment officers and provìdes prudent Investment rules. Collateral requirements are
created ìn accordance \vith the Public Funds Collateral Act (Texas Government Code
10. Chapter 2257).
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Ultimate responsibility and authority for all investment transactions and cash
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management reside \~/ith the City Manager and the City's Director of Finance The
Director of Finance is also responsible for considering the quality and capability of staff
to be involved in investment managernent a nd procedures The Director of Finance
may delegate responsibility for the day to day investment actIvities to other qualified
staff members. These staff members \vill be termed Investmen1 OffIcers of the City.
One of 1hese Investment Officers 'NIII be designated the Primary Investment Officer by
the Director of Finance to conduct daily investment activity and prepare required
ìnveshnenl reports. Investrnent Officers will not conduct any investment or banking
activities in'v'olving City funds untïl a resolution or ordinance gí'v'ing them authority to do
so has been approved by the City Counçil of the City of North Rlchland Hills. All
participants in the investment process shall seek to act responsIbly as custodians of
public trust
B. Quality and Capability of Investment Management
C. Training Requirements
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In accordance '",ith the Public Funds Investment Act. all authorized Investment Officers
shall attend an investment training session no less often than once eVEry t\lVO years
commencing on September 1 t 1997 and shall receive not less than ten hours of
Instrllctlon relating to Investment responsibilities. A ne\vly appointed Investment Officer
must attend a tra ining session of at least ten hours of instruction \vithin t\~elve tl10nths
of taking over or assuming duties. f'E'::) r ;)';;...¡'¡O(; Ì;~ on tn~:
n~:,c(::'/e:~ The in~jestment training
session shall be provided by an Independent source approved by the Investment
Committee, For purposes of this po"cy~ an "independent source" from Y.¡hich
Investment training shall be obtained shall include a professional organization. an
institution of higher education, or any other sponsor other than a business organization
that the City rnay engage in an investrnent transaction
D. Management and Internal Controls
The DIrector of Finance IS responsible for establishing and maintainIng an internal
control structure designed to ensure the City's assets are protected from loss, theft, or
rnisuse The internal control s1ructure shall be designed to provide reasonable
assurance that these objectives are met The concept of reasonable assurance
recognIzes that (1) the cost of a control should not exceed the benefits likely to be
derived; and (2) the valuation of costs and benefits requires estimates and judgments
by management.
.Accordingly, the Director of Finance shall establish a process for annual independent
reVlev.f by an external auditor to assure compliance with policies and procedures. The
internal controls shall address the follo"'w'lng pOints:
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· ç.c~+:.t+.i;.~.f.·'l In ·T;: L,:>:~ ¡ of co lIu s ion
· Separation of transactions authority from accounting and record keeping
· Custodial safekeeping
· Avoidance of pt1YSlcal delivery securities
· Clear delegation of authority to subordinate staff members
· VVlitten confirmation for telephone (voice) transactions for investments and \vire
transfers
· Development of a \Nire transfer agreement vu'ith the depository bank or third party
custodian
E. Prudence
The standard of prudence to be applied by the Investrnent Officer shall be the :'prudent
in'/estor=: rule, Vyhich states~ "Investments shall be made "'lith judgment and care,
under circumstances then prevailing, vvhich persons of prudence, discretion. and
intelligence exercise in the rnanagenlent of their o\'~n affairs, not for speculation, but
for investfnent. considering tile probable safety of capital as well as the probable
income to be derived." It should be noted that. in a diversified portfolio, occasional
losses are inevitable and must be considered 'within the context of the overall
portfolio's return.
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In detennining \Nhethel an Investrnent Officer has exercised prudence ',uith respect to
a n investment decision. the detennination sha" take into consideration the in'vestment
of all funds, or funds under the City'S c·ontrol, over \¡vhlch the Investment Officer had
responsibility rather than a consideration as to the prudence of a single investnlent~
and whether the investment deasion 'vvas consIstent with the \vritten Investment policy
of the City_
F. Indemnification
The Investment Officer, acting in accordance vu'lth ~/riUen procedures and exercising
due diligence, shall not be held personally responsible for a specific security's credit
risk or nlarket price changes, provided that these deviations are reported in a tiJllely
manner and appropriate action is taken to control the effects of such adverse
developments.
The C.ity shall provide for the defense and indemnification of any Investment Officer or
Investment Committee men1ber VoJho is made party to any suit or proceeding. other
than by actions of tt,e City. or against \VhOlTì a clailTl is asserted by reasons of their
actions taken \fiithin the scope of their service as Investment Officers or a ppoinled
members of the In\/estment Committee. Such Indemnìty shall extend to judgments,
fines. and amounts paid In settlement of any such clain1, suit or proceeding, including
any appeal thereof This protection shall extend only to members '~vho have acted in
good raith and in a ITlanner v~hicl1 they reasonably believe to be in, or not opposed to.
the best interests of the City.
G. Ethic and Conflicts of Interest
City staff involved in the investment process shall refrain from personal business
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activity that could conflict ~'..'ith proper execution of thE investment progra m or \f¡fhich
could impair the ability to rnake imparlial investment decisions. City staff should
disclose to the City Manager any material personal financial inves1ments in financial
Institutions that conduct business \;vith the City and they shall further disclose positions
that could be related to the performance of the Citys portfolio, Cïty staff shall
subordinate their personal financial transactions to those of the City_ particular1y \'lith
regard to the tin1ing of purchases and sales.
An Investment Officer of the City \vho has a personal business relationship. as defined
by the Public Funds Investment Act of 1997. Section 2256.005 (i). 'Nith an organization
seeking to sell an Investment to the City shall file a statement dìsclosing that personal
business interest An Investment Officer \,\Iho is related 'Nithin the second degree of
affinity or consanguinity to an individual seeking 10 sell an ínveslrnent to tl1e Cïty shall
file a statement disclosing that relationship, A disclosure statement required under thîs
section must be filed v,flth the Texas Ethics Commission and the gO\/erning body of the
City.
IV
INVESTMENT CO~~~~ITTEE
An Inveshnent ComJnittee shall be established to assist in monitoring the perfonnance
and structure of the City·s portfolio and approved brokers, Members of this committee
shall include the Director of Finance (as Chairman) and the Accounting Manager as
permanent members. Additional members. numbering no less than three I \~ill be
appointed at the discretion of the Director of Finance The Primary Investment Officer will
report to and make recommendations to the Investment Committee. but \'iill have no vote
concerning investment policy or sllitability of in'oJestments.Any matters presented to the
committee requiling a vote of the members shall be passed or denied by a Simple
majority
The Investment Officer or any other member of the con1mit1ee sl1all have the pû',.,.,'er to call
rneetings of the committee. The cornmittee shall meet no less than quarterly,
The Investment Commit1ee shall perform the fOllo~ving functions:
1. .Approve the process of selecting authorized dealers, brokers, in\iestmen1
advisors, and sa fekeeping agentsJcustodia ns used by the City
2. Re'v'ìew the City's general portfolio activity and performance for complianc.e to
this policy and recommend any changes or amendments to this policy 10 the CIty
Council
3. App,o·.¡e the Investrnent Strategy docUlnent, as prepared by the Investmen1
Officer. This document is required by State la\'V to be separate from the
In-"estment Policy. The In'~estment Strategy \vìll be a guide to the Investment of
all funds controlled by the City as described in Section II of the In',,'estnlent Policy.
The strategy is intended to adapt to changes in market condItions.
4, AdvIse the In'v'es1ment Officer as to recommendations regarding investment
strategy and portfolio performance.
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5. Approve the purchase of any securities "'lith n1aturities over three (3) years.
6. Immediately notify the Investment Officer of any inforrnation brought to their
attention that materially affects the portfolio or the marketability of any
investments purchased in accordance v'L'lth the Investment Policy.
7. Oversee the activities of the persons designated to carry out investment
transactions and inform the City Council of unaddressed concerns wi1h the
managernent of tI'e Citys Inveshnent portfolio.
V. SUITABLE t\ND AUTHORIZED INVESTMENTS
The City currently has a "buy a nd hold" portfolio strategy. Maturity dates are matched ~;ith
cash ßOVI requirelnents and inveshnents a re purchased \vith the intention of being held
until rnaturity Ho\vever in\'estments rnay be liquidated prior 10 Illaturity for H1€ follov¡ing
reasons:
An investn1ent w'ith declining credit may be liquidated early to minimize loss of
principal
Cash floVl needs of the City require that the investment be liquìdated
City funds governed by this policy n1ay be invested in the instruments described belovv all
of vvhich are authorized by Chapter 2256 of GovernlTlent Code 10 (Public Funds
In\o'estment AcO. 'llith further restrictions imposed by local ordinances. Investments of City
funds in any Instrument or security not au1horlzed for investment under the .Ac.t a nd CIty
ordinance IS strictly prohibited, The .... n:;:
.:,~:- :-,- ,-. .~-. :' :¡ ::,
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A. Authorïzed Investments
1. Obligation5 of the United States, its agencies, and instrumentalities
2. Collateralized Mortgage Obligations (CMOs") directly Issued by a federal agency
or instrumentality of the United States, the underlYing security for ~vhich IS
guaranteed b'ý an agency or instrllmentallt~' of the United States
3. Direct OblIgatIons of 1he State of Texas or its agencies
4. Obligations of states. agencies, counties. cities, a nd other political subdivisions of
any state rated as to investment qualIty of not less than A or its equivalent by a
nationally recognized investment rating firm
5. Certificates of Deposit issued by :;:J
den¡~::"it.~, t¡';t has '¡OrF:>: :)f
h~~ The certificate of deposit must be guaran1eed or insured by the Federal
Deposit Insurance Corporation or its slIccessor. and secured by oblIgations in a
manner and amount as pro'Jided by la\v
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6. Fully Collateralized Repurchase Agreements that are structured in compliance
',~ith the Public Funds Investment Act A flexible repurchase agreement can be
utilized for the in'~'estment of bond proceeds 10 meet projected cash outflows.
a ç-r 2e i"' "12 '1 ~ ~~" ""'--' r.s·: t: ('. r- po c. J ~. c>:,;' '
Repllrchase Agreements v~ill only be executed V'iith
counterparties that have signed a TBMA Tri-Party Repurchase Agreement Vjíth
the City. A sample TBMA Tri-Party Repurchase Agreerllent is incorporated in this
investrnent policy as Appendix F.
7. Mutual Funds
a. No-load Money ~'arket Mutual Funds are acceptable investments provided
they are registered and regulated by the Securities and E)(change
Cornrnission. have a dollar-\Neighted average stated rnaturìty of 90 days or
less, maintain a stable net asset '"alue of 51 per share, and provide the CIty
\Nith a prospectus and other information required by the Securities Exchange
Act of 1934 or the Investment Company Act of 1940.
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b No-toad Mutual Funds are acceptable investments pro',ided they are
regulated by the Securities and Exctlange Cornmìssion.
; ~ s::. l:', '=' ¡ '. t·.·.' ;."
:.. ¡ r :.:.;? ( t K.' q
i r
'-;:.'"(T0 (>Ç;~:f"\(Y. and confonn to all requlrernents under the Public Funds
Investment Act relating to the eligibility of investment pools to receIve and
invest funds of investing entitles. (See Appendìx G for the complete
requIrements for authorized mutua I funds under the Act.)
8. Investment Pools
a. Investment pools must provide the Investment Officer \vith an offering circular
or other similar disclost..Jre Instrument that contains specific and deta iled
information required by the Act. Additionally. the pool shall provide transaction
confirmations, detailed monthly tra nsaction summaries, a nd monthly
performanc.e repor1s 10 the Investment Officer. The specific requirements for
authorized investment pools a re detailed In the Public Funds Investment Act,
Subchapter A, Section 2256.016 (Appendix G) ~<,(:h:
i1 GE> d ; f
I·;;: ¿ :.~.;
Investment pools created to operate as a nl0ney market mu1ual fund Inust
mark investments to market daily and maintain a net asset value of 51 per
share ~vith the market value per share behfieen .995 and 1.005.
b In order to participate in an inve~tment pool. the CIty Council must approve by
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resolution or ordinance a Participation Agreement or Inter-local Agreement to
be e)(eculed \ ¡ith the State or Inter-local authority responsible for the
investrTlen1 pool. This agreement ,,a/ill specify the Ci1y's authorized
representatives and the standard delivery Instructions for fund transfers and
Information reports. (See Appendix I for approved inter-local agreements.)
B Unauthorized Investments
The follo,-ving investrnent Instn.ments are specifica lIy not authorized'
'1. Obligations '''those pa,'ment represents the coupon payments on the outstanding
principal balance of the underlying mortgage-backed security collateral and pays
no principal (CMO-derived Interes1 Only Strips),
2. Obligations 'Nhose pay.nent represent the princIpal strearn of cash fJO\V frorn the
underlying rnortgage-backed sec.urity collateral and bears no Interest (CI\10-
derived Principal Only Strips),
3. Collateralized rv10rtgage Obligations that have a stated final maturity date of
greater than ten (1 0) years
4. Collateralized 1\1ortgage Obligations V'/hose Interest rates are determined by an
Index that adjusts opposite to the changes in a market index (Inverse Floaters),
5. Certificates of Deposit and other investments issued by Savings and Loans,
6. Share Certificates and other investrnents issued by Credit Unions, and
7. Gllaranteed Investment Contracts.
VI
INVESTMENT PARAMETERS
A, Diversification
Diversification of funds and investments mLIst be ac.compa nied by competitive bidding
of all investments to assure diversification among securities dealers. Dlverslfic.ation is
necessary to reduce the portfolio s credit and market risks, v.lhile helping 1he portfolio
attain a market rate of return. The City shall seek to conduct its investment
transactions 'l,tith several competing, reputable investment security dealers and
brokers to protect principal vu'hile
) ;p: To assure diversification of fiñanclal institutions. business
Involving t\¡yo party transactions (,Ï.e. repurchase agreements) \vith anyone investment
broker should be limited to thir1y percent (30%) of the par value of the total portfolio for
any reporting period. In this \~'ay> a bankruptcy, receivership~ or legal action wOllld not
irnrnobilize the City's ability to meet payroll, operating, or other expenses.
It IS the policy of the City to dIversify its investment portfolio so that reliance on any
one issuer or broker 'Nill not place an undue financial burden on the City
B. I rT"€stment Type
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Depositories for Municipal Funds (Chapter 105, Local Governmen1 Code), the Public
Funds Investfnent Act (Chapter 10, Government Code), and City Ordinance Number
20ï9 authorize depositories and define alloV'Jable in'",estrnent prograrns for municipal
governments.
It is the policy of the City to purchase only securities authorized by both the Public
FlJnds Investment Act and Section V J subsection A. of the City's investment policy.
Market risk shall be rninirnized by diversification or investment types. The follo\oVing
linlits, by instrllrTlen1~ are established for the City's total portfolio:
1. Repurchase Agreements 50%
2. Certificates of Deposit 30~)
3. U.S Treasury Notes/Bonds/Bills 80%
4. U.S Agencies and Instrumentalities 75%
5. Commercial paper (indirectly through Investment pools) 10%
6. State and Local Bonds and Notes 20%
7. Money Market Mutual Funds 80~J
8. Mutual Funds 15%
9. Investment Pools 100%
The maximum maturity of any gi'"en investment in the portfolio shall not exceed a final.
stated maturity of 5 years from the date of purchase
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Reductions in the size of the portfolio dlJe to cash outflows ITlay cause an investment
type to exceed tt1e maxImum percentage allo\\'ed for that investment type. In such
sl1uatlons. securities ~/ill be sold to reduce the percentage to allowable le~'els only if no
loss v/ill be rea lized from the sa Ie. If a loss ~vill be rea lized, then the investment may
be held to maturity.
To allo'.N for efficient and effec1ive placelnent. a singular repurchase agreernent can be
utilized for the inves1ment of bond proceeds. which exceeds the 50% IÎlnita1îon.
VII. INVESTMENT PROCEDURES
The City's portfolio sha II be designed '""ith the objec1ive of obtaining a rate of return
through budgetary and economic cycles, commensurate with the investment risk
constraints and the ~sh flow requirements. The flsk-retlun relationship will be controlled
through the investment pa rameters~ operating requirements, and guiding policies of the
Ci1y Council. Market value of all securities ov"ned v,'ill be compared to current book value
of those securities to determine portfolio performance on a quarterly basis. Safety of
principal is the foremost objective of this in'..'estment policy
The City v¡ill practice competitive bidding 'tJhen purchasing all investments to guarantee
the highest rate 01 return for the desired maturity date. The right is reser~ed to reject the
most financially favorable bid if it is potentially disruptive to the investment strategy or
portfolio composition of the City.
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A. Approval of Broker/Dealers
It is the policy of the City to purchase securities only fron, those institutions on the
City's approved list of broker/dealers and banks. The Investment Committee shall at
least annually, revlew~ revise~ and adopt a list of qualified brokers that are authorized
to engage in investment transactions v/ith the City. All securities dealers must be
registered and certified 'Nith the Texas State Securities Commission, National
Association of Seclnity Dealers ('"NASD!!) and SeclJrities and Exchange Cornrnission
C SEC").
f·-~·): ".:'/ A bl a nk
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broker/dealer questionnaire v.Jith certification is included in Appendix C. A current lis1 of
approved securities dealers and banks is included in Appendix D. ThIs list may be
revised by the Investment Committee as the City's Investment needs change. The
Inves1nlent Committee shall approve all broker/dealers and shall also have the ability
to limit the number of authorized securì1ies dealers/ba nks doing busIness v¡ith the City.
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All banks authorized to sell securities to the City '¡'Jill be Federal Reserve mernber
banks and must be approved by the Investment Commiitee. No investments 'Nill be
placed >Nrth Savings and Loan Institutions or Credit Unions.
B. Inves1ment Transactions
It is the po Ii C)' of the City of North Richland Hills to require competitive bidding for all
IndivIdual security purchases and sales except for transactions wrth money market
mutual funds and local government investment pOOlS. A minimum of three bids must
be obtained to ensure a competitive price for the transaction All investment
transactions rnus1 be approved by Ihe Accounting Manager, or file Director of Finance,
or, in tl1eir absence. an authorized InvestJnent Officer. Appendix B contains the
I n'Vestment Bíd Form. Security InformatIon WOrkst1eet, Broker.'Dealer Rotation
Procedures. and Trading History by Broker w'orksheets nec.essary to provide
documentation for all in'~estment transactions.
All securities purchased shall require delivery on the settlement date to the City or its
third party accounts on a delivery \.'ersus payment rDVP") basIs. ¡¡If"
>~\!r.-:.str:E<~t ;):;o~; 2[[0 n:t:u?d ·\T(;·~:. By SO doing. City funds are not released until the
City has received, through the Federal Reserve \.'~ire. the securities purchased.
C. I n-vestment Reporting
The Public Funds Investment Act and City Ordinance Number 2079 require the
preparation of quarterly management reports and an annual repot1 of all investment
transactions of the City be presented to the Cit'y Council.
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The Primary Investment Officer \."Iill prepare the required quarterly and annual reports
for evaluating investment portfolio performance The reports will be approved and
signed by all members of the In'/estmenl Committee The reports \'vill include the
follo'\'Ving information, as required by the Public Funds Investment Act:
1. A summary narrative of Investment activity and portfolio performance over the
pe riod
2. Size and composition of portfolio at the beginning and end of tt1e reporting penod
3. list all Investments according to the fund for v"hich they vlere
purchased
4. Beginnìng and ending book and market ~'alue for all securities held
5. Beginning and ending book and nlarket value for tl1e total portfolio
6. .AII additions and changes to the market value during the period
i. State the compliance of the portfolio to the inve5tment policy a nd the Public
Funds Investrnent Act
8. Yield
9. DiversIfIcation of investments
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10. Total sales, rnaturities, and purchases
11..A,ccrued interest
12. Performance compared to an established benchmark
These quarterly reports should be used along v~ith the annual report to fully evaluate
and explain market trends and adjustrnent of investment strategies to rnanage market
fluctuations. TIle annual report v¡ill sho\/V on a fiscal year basis the results of the overall
in',,'estment strategy. The quarterly reports '-viII conform to GAAP and be revie~ved
annually by the City's independent auditor, \vith resutts reported to the City Council.
0_ rw1arking to Market
Market value of all securities in the portfollG ~'ill be determined on a qLla rterly basis.
These values 'Nill be obtained from a reputable and Independent source and dIsclosed
to the governing body in the quarterly In',,'estment report.
VIII CUSTODIAL CREDIT RISK tv1ANAGEMENT
A. Safekeeping and Custodial Agreements
The lavvs of the State of Te)(as and prudent treasury management require that all
purchased securities shall be held in safekeeping by ei1her the City, a City account in
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a third party financial institution, or the City's safekeeping account with its designated
depository ba nk
All securities o\"lned by the City shall be held by a third party safekeeping agent, or in
the Federal Reserve Bank, except for certificates of deposit that have FDIC insurance
provided. F or certifIcates of deposit \vïth FDIC insurance. the City ~'IIIJ hold the deposit
receipt
Transfers of secluitles In safekeeping shall be processed ,:,,'ith ~'JriUen confirmations.
TI1e confirrnation \'\Iill be used for docun1entalion and retention purposes. One of the
City's designated Investment Officers must approve release of collateral prior to its
removal from the safekeeping account.
B. Collateral Policy
Consistent '-'\11th the requIrements of Texas lav'J as defined in GO'"ernment Code 1 O.
Chapter 2257, knov_'n as the PLlblic Funds Collateral Act. it IS the policy of the City to
require full collatera lization of a" City in'\lestments other than obligations of the United
States and its agencies and instrumentalities. Collateral on investrnents shall be
tnaintained by an appropriate thírd party safekeeping agent, as designated by the City
This policy also applies to any deposits held in an approved depository in e)(cess of
the amount protected by FDIC Insurance.
The City of North Richland Hills shall accept only the follD'Ning securities as collateral~
1. FDIC insura nee coverage
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3.
4.
A bond. certificate of indebtedness, or Treasury Note of the United States) or
other eVIdence of indebtedness of the United States that is guaranteed as to
principal and interest by the United States
Obligations of the United States, its Agencies, and Instrumentalities
A bond of the State of Texas or of a county ~ city) or other political subdivision of
the State of Texas having been rated as Investment grade (1n1.'estment rating no
less than "Aft or its eqLJi~/alent) by a nationally recognized rating agency ~vith a
rernaining rnaturity of ten (10) years or less
CertifIcates of deposit plus accrued interest lip to 5100,000 per non-depository bank
do not need to be collateralized pursuant to this policy as long as FDIC insurance is
provided. Certificates of Deposit in excess of $100,000, including accrued interest
must be secured by approved collateral for the amount in excess of FDIC insurance
coverage
Collatera I ìs valued at current market plus Interest accrued through the date of the
valLla1Jon. Collateral shall be marked to market daily to determine if adequate
collateralization is being rna intained. Repurchase agreernent eollatera I rl1ust be
.najntained at the follo~'.ling levels, ',yith respect to repurchase agreement par value
plus aee rued interest:
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Maturity of
Collateral
1 year or less
1 year to 5 years
Over 5 years
U S Treasury
Securities
1 01 ok
102%
103%
Other
SecuritIes
:'...~>:·m-1 02 %
~'r·,::.·:'u1 05 %
C"1 11 0 %
Collateral levels should be rnaintained during an investrnenl transaction The amount
placed in the bank to cover the cost of a security purchase should be fully
collateralized in the event the security fails to be deli'fered to the safekeeping agent.
Collatera Ilzed investments often require substitutIon of collateral. Any broker or
flnancJal institutJon requesting substitution must contact the Prin1ary Investment
Officer, or in his absence any' other authorized Investment CÞfficer, for approval and
settlement The substituted collateral's value will be calculated and 'he substitlJtion
approved jf its value is equal to or greater than the original ccllateralizalion level,
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Tt1e Director of Finance: or an authorized designee, must give Imn1€diate notIfication
of the decision to the bank or third pal1y holding the collateral Substitution is allo'Nabfe
for aU transactions. but should be lirnited, if possible, to mininìize potential
administrative problems and transfer expense. The Director of Finance rnay li.nit
substitution and assess appropriate fees if substitution becomes excessive or abusIve,
Collatera I shall be audited at least annually by the City's independent audit firm, and
may be audited by the City at any time during normal busine$s hours of the
safekeeping paf1y,
The financial institutions \vith 'llhom the City invests and/or msintains other deposits
stlall provide, as requested by the City. a lIsting of the City's certifIcates of deposit and
other deposits at the institution and a listIng of collateral pledged to the City marked to
current market pric.es The listing shall include total pledged securities v~ith the
follo'Ning infonnation:
Name
Type/description
CUSIP
PiH value
Current rnarkel value
Maturity date
Moody's or Standard & Poor's rating (both if available)
Under C~lapter 2257, Public Funds Collateral ActJ substitlrtíon and release or collateral
rnust be approved by the gO'v'erning body. City of Nor1h Rictìland Hills Ordinance
Number 2079 Section 3 delegates the Investrnent Officers' overall responsibilities to
ensure that investment objectives are accomplished, and therefore, the authority to
release and substìtute collateral as deemed necessary and reasonable \vithin the
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guidelines of this policy.
IX. ARBITRAGE
The Tax Reform Act of 1986 (Title 26 USC. Section 148) provides limitations on the
City's yield fronl Inves.ting tax-exempt bond proceeds and debt service funds. These
arbitrage rebate provisions require that the City compute earnings on investments from
each issue of bonds on a periodic basis to determine if a rebate is required To determine
the Cityls arblhage position, the City is required to calculate tt,e actual yield earned on the
Investrnent of the funds and cornpare It to the yield that v~ould have been earned if the
funds had been In'lested at a rate equal to the yield on the bonds sold by the City. The
rebate provisions state that periodically (not less than once e\¡ery five years, a nd not later
than sixty days after n1aturity of the bonds), the City is required to pay the US. Treasury a
rebate of any excess earnings. These res1rictions require extrerne precision in the
monitoring and record keeping of Investments, particularly in computing yields to ensure
compliance. Failure to comply can dictate that the bonds become taxable I retroactively
from the date 0 f ¡$Sua nee .
The City's investrllent position relative to the arbitrage- restrictions is to· continue pursuing
the ITlaxirnUnl yield on applicable investments \\,hile ensuring the safety of ca pital and
liquidity. It is a fiscally sound position to conttntle maximization of yield a nd to rebate
excess earnings. if necessary.
x.
DEPOSITORIES
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The Texas City Depository Act, Local Government Code Chapter 105, prescribes
procedures for selection of a ci1y· depository designa1lng that both general-Iavi and home-
rule cities are "au1horized to receive applications las depository) for the custody of city
funds from any banking corporation, association, or indi'.!idual banker doing business
vvi1hin the city II This cia lIse îndicates that cities a re not required to desrgnate one central
depository .
The City of North Richland Hills ~'/ill, through a request for proposals process~ designate
one or more banks to serve as its primary depository(ies) to maximize investment
capa bilities and minin1ize banking cost. The depository designation does not limit
investment activity to one financial institution
The consideration the City of North Richland Hills will use to execute a banking services
contract \"/111 include:
· Ability of Bank to perform and provide the required and requested services
· Reputation of bidder and quality of serv'iœs provided
· Cost of banking ser~ices
· Interest paid on interest bearing accounts and deposits
· Eamings credit calculation on account balances
· Completeness af proposal and agreement to points outlined in the request for
proposals
· ConvenIence of locations
· Previous service relationship v'Iith the e,t)'
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· Financial strength and stabIlity or institution
Obtaining competitive proposals on the City'S depository specifications 'NIl! be the
responsibility of the Director of Finance. Selection of the depository shall be based on the
institLrtíons offering the most favorable terms and condìtions for the handling of City funds
and the sen,.ices available to tile City.
The maximum term for a depository contract under State law' IS five years. The City's
contract shall not exceed five years., ::.:'f::,riCT-í\;:nCf. re IE
~. it; rrc n tf"':::, tt- c. Ir 'y'( ·::.,t·:~ (:-' t (:c i'r r~ !'t":'C'Ç: ~I: fC ¡ a ¡¡('" ,- '~,hi)
n";;,, ,/ Special banking needs ma~¡ be contracted for
by the City outside the depository contract if approved by City Council If a depository
does not meet the Crty's requirements in the ba nkJng services contract, the bank VI/ill be
required to meet the reqllirements \\llthin SIX months or lose the depository c.ontract.
XI INVESTMENT POLICY ADOPTION
The investment policy shall be adopted by ordinance or resolution of the City Council It is
the City's intent to comply ~vith state la'4'1s and regulations. The policy shall be reviev~ed
annually by the Investment Committee and the City Council. ;~: "
t fì,~ t r ,;'; :1 u: r C' ." í) elll C· n' te' ',':
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APPENDIX
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A.pp·:-nd Ä A
ORDINANCE NO. !079
AN ORDINANCE OF THE CITY OF NORTH
RtCHLAND HILLS, TEXAS PROVID1NG FOR
THE DES1GNA TION OF INVESTMENT
OFFICERS: PROV101NG fOR INVESTMENT
RULES .~ND POLICIES PROVIOfNG FOR
MANAGEMENT REPORTS: REPEAUNG A
PREVIOUS ORDINANCE: It.NO PROVfDING
A SEVERABILITY CLA.1JSE
'Nhereas, the City 01 North Rlch!anc HiHs ackncw¡e'~ges the high pnorit)' (f providing the
neœssa~ glJardianship 0' public funds in the municipal sector: and
~;"ereas f)e Cit)l Council expressry intends to set high f¡scal standards. de~8te
treasury and investment duties to appropriate offIcIals, and to review the actual performance at
regular intef\ls!s, end
W,ereas, the City Councìt hereby intends to :mplement investment reQ\irements set forth
in Tex. Rev. C;v. Stal. Ann, Art. 4413 {34c) ard 2256.
NOVJ. THEREFORE, BE IT ORDAINED gy THE CITY COUNCIL OF THE CITY OF
NORTH R\CHLAND HillS, TEXAS.
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Section 1. M91!MD®leJ. That the fonO'N;ng poli.:ies and gu.dllines be establ'.shed
as tn'Jestme,t ru\es g~emin9 the ìr'1ve¡tmen~ of IOtal fund!:
.A AH City funds from various 'ev'enue sources shan be biUed or requested as early
as they are recognized, ccmputed, and determined to be due 10 the City,
B. Funds recei~ed by 1he City shall be deposited into the depository ba~ at the end
of ead1 business day or as eaMy as practIcal operating circuMstarces wdt allow.
C. At' debts O'tIed by the City sha1l be paid as of the date they come due and not
before un~5 apprtWal is given by the City Manager.
o Based on cash forecasts, aU monies 'lot required immed1ately to p~ obligations
shæl be invested in an incOMe producing instrument or ac.:ount.
E. AJI investment actj~ities and orocedure5 shaM be governed by a written investment
poI~. The Investment Policy is attadìed to this ordif1anœ. Revis:,ons 10 the
Investment PoIjcy required by updates to state and federal laws may be
authorized by the City ~an~er Any other sigmficant atterahons 10 tre
Investment Pohcy must be apprO'.'ed by the City Counc~.
Section 2. Investment ObJ.~ct¡V§. The C:·~/s funds shatl be in'vested in awroprie1e
i"strumeots in such a manner to ensure the saf!ty of Investments, retention of tnŸestme'lt
pn~cìpa!, maimenaJ'¡œ of sufficient Hquidity to cover operating needs. divers ~ of 1he portfolio,
and maximization of yield. The preceding objedives ere hsted in order of priority. The City shall
invest in instruments providing the highest rate of return. as long as suœ in'~estrnents do not
cor:fl:·ct with the other priont;es of the City's invenment portfolio IJf statutes of this state
regubJttng ~nvestments or City fuoos.
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.Ä.ppend)c A
Section 3. Designated CftiIIs. The aty Counål herab¡ das(ptt5 the IlWeStment
Officers oftht CIy to be the City Manager and FNnœ DinIct1r. The City Nanager and Finara
Cirector w;JI ha-æ the ovtral respmstbilily tD ensure that Ì'NtJtment objectivts art accornpftshed
m that f)e guidelnes d the investment policy 1M fttowed. The Finance Diredor wiD de$ignate
staff membtr$ to admirister the datty functØ1s cf manaoi1 tht cai1 and Irweslmeflts ri the
City. TheH periOnS must be auttmzed 85 ÞMfmen ofbJ'l by a Reso\uIion of the City
Council œfore they 8I1_øted øn¡ investment duties.
Sedion 4. Management Reoorts. At least quarterly the Ðtlstment officel1 shan fßl)B18
a wrilten report concemtng the Cl1Ys investmem tran5åons for the preceding CJJIrter. This
rtpa1 MI deserte in œtaü the f1vestmenI posb of 1M CIy at !he end of eech quarter. A
repor1 on inveñnelt adivily for the fi8C81 year shaft be presented as the report for the fourth
quartw. The rtpOI1S shaH be signed by tte City Manegtfl Ihe FÌ'\8nœ Otredor and an other
UhorizeG invtstment oIficers In1 presented to the City CmJnci.
Seœcn 5. ~peal ~ Premu! ~;r\anœs. ()dfnanoe~. 2076 is hereby repealed.
Se.6. SevtrabIIty. Provisions of this orctinanoa sh8I be~ and they are hereby,
declared 10 be Jev~~ mt ~ any pcdOn of it be dednd to be inv8fid for IR-i ream by
a court of ~juriadiction, such hoking shall not affed the remlinlng portioos thereof.
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PASSED At() APPROVED BY THE City COUNCIl OF THE em OF NORTH
RtCHLAND HIIl.S, TEXAS 0t1 this tit 9th day ~ October, 1995.
APPROVED:
ATTEST:
~~L
Secfetaty
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Appendix B
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NAME OF SECURITY:
CUSIP NUMBER:
COUPON / DISC. RATE:
Appendix B
SECURITY INFORf\,1ATION WORKSHEET
YIELD TO rAATURITY¡CALL~
~I1ATURITY}CALL DATE.
PAR VALUE:
TRADE DATE.
SETTLEMENT DA.TE"
PRINCIPAL+ACCRUED INTEREST:
$
PURCHASE PRICE
SAFEKEEPING ACCOUNT~
259091
NAME OF BROKER:
TIME OF TRADE.
ENTERED BY~
FAX TO:
BANK OF AMERICA SAFEKEEPING
PH # 1-800-657 -9529
FAX # 704-386-0175
t,:)PR::::r,,'EC BV
F .JNO:
<':ACCT\I'~'.:'[$TMC~. '1 S·,BP.OKE ~'SECURITI[.s WORKSIIEET XLS
CONSOLIDATED
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3.
4.
5.
6.
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Appendix B
Broker/Dealer Rotation Procedures
1. Open the broker rotation file located at K:'ACCr~lnvestments'Forms\broker
rotatio n 2006
2. The file contains a macro to select the brokers randomly. A pop-up windov~ will
appear, select "Enable Macros". If you rnistakenly click on "Disable MacroslJ, the
random selection command \ 'JIII not ~Iork. If that is the case, close the document
and repeat the procedure.
Once the document is displayed. left-click the black box in the upper left hand
corner for the brokers to be selected
The top three brokers displayed will be contacted to participate in the bidding
process.
Run the random selection again if t~JO or more numbers are repeated.
After each investment transaction. the bids received are entered in the trading
history spreadsheet.
Perform the broker selection procedures after an investment transaction has been
completed. The brokers that are selected ,,',,'ill be contacted for the next
investment transaction.
Open the document K:'ACCT\lnvestments\Forms\Bidform, fill in the brokers'
information a nd use this bid form for the next investment transaction
23
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Appendix C
City of North Richland Hills
Broker/Dealer Questionnaire and Certification
1. Na rne of firm
2. Local address
Nationa I ad dress
3. Local telephone number
National telephone number
4. Primary representative/manager/partner-in-charge
Name
Name
Title
Title
·e
Telephone #
Telephone #
5.
Is your firm a subsidiary of another firnl? [ ] Yes [ ] t..Jo
If yes: which firm?
6. Is firm a primary dealer in U.S Government securities? [ ] Yes [ ] No
If so, for hO\'\Ilong has firm been a primary dealer?
years
7. Is your firm an inventory dealer? [] Yes [ ] ~'Jo
Do you take a position in securities vvhlch you sell or buy? [ ] Yes [ ] No
8. VVhat \'\IaS your firm)s total volume In US. Government and agency
securities trading last year?
Firm-wide $
Number of transactions
Local office $
Number of transactions
25
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.
NI~H
Appendix C
City of N c.rth RI chi and Hills
Broker/Deal er Questionn aire
9. V\lhich instruments are offered regularly by your local desk?
] T -bills [ ] BAs (domestic)
] Treasury notes/bonds [] Commercial paper
] GNMAs [ ] Bank CDs
] FHLMCs [ ] S & L CDs
Other Federal Agencies (please specify)
I n stru mentalities (please specify)
10 Identify all personnel who "viii be trading 'J'Jith or providing security quotes to
North Richland Hills employees.
Name
Title
Telephone #
Prilï13 ry
l"\ I te rn ate
Alternate
(Please attach resumes of the personnel listed above.)
e
11 Vv'hich of the above personnel hc.;lve the City of North Richland HillsJ
investment policy?
12 Are the fIrm and the aCGount representative registered with the Texas State
Securities Commission? [ ] Yes [ ] No
I f yes for ho"" long?
years Representative
26
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Ni~H
Appendix C
City of N crth RI chi and Hills
Broker/Dealer Questionnaire
13 Please indicate which agents of your finn's local offices are currently
licensed, certified, or registered and by \'Vhom.
Agent
Licensed or registered by
14 Please identify firm:s public sector clients in our geographical area \/'ho are
most comparable to North Rlchland Hills.
Entity
Contact Person
Telephone #
Client
e
15 Is firm a member of NASD?
[ ] Yes [ ] \Jo
If not, why?
16 Please mark each regulatory agency by V'Jhich firrn is exarnined and/or to
which firm is subject to agency rules and regulations:
] FDIC [ ] SEC
] Comptroller of currency
] ~-JYSE
[ ] Federal Reserve System
Other regulator! or oversight agency
(Note: Multi-state firms need not include regulatory agencies which do not
have Jurisdiction over firm's act!'v ¡ties in the State of Texas)
17. Have you obtained all required licenses to ope~te as a broker/dealer in the
State of T eX3s? [] Yes [ ] No
27
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NI~H
Appendix C
City of Ncrth Rlchland Hills
Broker/Deal er Questionn aire
18 To the best of your kno\¡'Aedge¡ has there been any "material" litigation)
arbitration, or regulatory proceeding, either pending: adjudic.ated or settled,
to which the firm has been subject 'l'nthin the last five (5·) 'tears that involved
issues concerning the suitability of the sale or purchase of securities to an
Institutional client? If so: please describe each such matter briefly. For
purposes of this question, proceedings are "material" if your independent
accountant applying generally accepted accounting principles determines
that such proceedings required disclosure In the flrm:s financial statements.
19. Have any of the employees listed In Item ten (10) ever had sanctions
irnposed due to any of the activities noted in item eighteen (18)? Explain
the outcome, case, and/or case citation in an attached explanation.
e
20 Please provide samples of research reports that your fIrm regularly provides
to public-sector clients.
21 Explain the firms normal clIstody and delivery process Who audits these
fiduciary systems? VVhat reports, transactions, confirmations. and paper
trail \¡IIi I I North Richland Hills receIve?
22 Enclose a complete schedule of tees and charges for various transactions.
28
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Ni~H
AppendIx C
City of Nmh Richland Hills
Broker/Deal er Questionn aire
23 Provide the firm:s most recent certified audited financial statements. In
addition, for those dealers preparing and submitting financial statements to
the follovV'ing organizations, provide publicly available financial documents
filed with these agencies for the most recent reporting period
National Association of Securities Dealers
Securities and Exchange Com..nission
New York Stock Exchange
Federal Deposit Insurance Corporation
24. Has firm consistently compiled with the Federal Reserve Banks capital
adequacy gUidelines? As of this date. does firm comply \'Vith the guidelines?
Has firm's capital position e\ler fallen short? By \Nhat factor (1.5XJ 2X. etc.)
does firm presently exceed the capital adequacy guidelines? Include
certified documentation of firm's capital adequacy as measured by the
Federal Reserve standards.
e
~5
.:.. .
Describe the capital line and trading limits that sup :X)rtIllmit the office that
'~'\Iould conduct business V\/lth North Richland Hills.
26.
If firm is not a bank, provide the follOVling information regarding the finn's
principal banking relationship.
Bank Name
Address
Contact
Telephone #
Length of relationship
29
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NI~H
Appendix C
City of Ncrth Rlchland Hills
Broker/Deal er Questionn Ctire
27. Does firm participate In the SIPC insurance program? [ ] Yes [] No
If not please explain why.
28. 'Nhat portfolIo information do you require from your c.llents?
29 Hoy" many and vvhat percentage of your transactions failed last month?
Last year?
e
30 Describe the precautions taken by firm to protect the interests of the public
when dealing with governmental agencies as investors.
30
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NRH
Appendix C
City of North RI chi and Hills
Broker/Deal Sf Certification
- CERTIFICATION-
This certification is executed on behalf of the City of North Richland Hills (the
Investor) and (the Business
Ctrganization) pursuant to the Public Funds I nvestment Act, Chapter 2256, Texas
Government Code (the Act) In connection with investment transactions
conducted betV'¡een the Investor and the Business Organization
The undersigned Qualified Representative(s) of the Business Organization
hereby certifies on behalf of the Business Organization that
1. The undersigned is a Qualified Representative of the Business Organization
offer ing to enter an investment transaction vvith the I nvestor as such terms
are used in the Public Funds Investment Act. Chapter 2256, Texas
Government Code, and
2. The Qualified Representative of the Business Organization has received
and revievved the Investment Policy furnished by the Investor, and
e
3. The Qualified Representative of the Business Organization has
Implemented reasonable procedures and controls in an effort to preclude
Investment transactions conducted betvveen the Business OrganIzation and
tile Investor that are not authorized by the Investor's investment policy.
except to the extent that 111ls authorization is dependent on an analysis of
the I nvestor's entire portfolio or requires an interpretation of subjective
51andards.
Qualified Representative of the Business Organization
Signature
Name:
Title~
Date
31
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Appendíx 0
City of North Ric hla nd Hills
Approved Securities Dealers
As of May 22. 2006
Securities Dealers
First South"vest Company
First Empire. Inc.
Morgan! Keegan, & Compa ny! Inc.
APS Financial Corporation
Duncan-\Mlliams. Inc.
Seattle-North-Nest Securities Corporation
Great Pacific Securities
South\'~est Secrrties
Multi-Bank Securities. Inc.
Wells Fargo Brokerage Services. LLC
Bankina In stitutions
First Simmons NatIonal Bank
e
Investment Pools
TexPool
LOGIC
r\.~BIA CL.o.SS
TexSTAR
32
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City of North Richland Hills
Primary Securities Dealers
As of May 22. 2006
No prima ry dealers are currently approved
e
33
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A ppe ndix E
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.".1'1,..
. .
. \ . I I
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Appendix F
Master Repurchase
AgreerneI1t
Sq J klul ~ T 1 !J~~!) VI')"...joll
fJah·d ;)~. nf
fkt\\:('('n:
()nd
1 _ A I) P Ii I :,} hi 1 i .Y
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2~ Ð0.flnitJons
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tun, rJisso,uticn Ü:.:LrJ(u(.'n(\ or sinÜ!;:L :)W, o. ~u(h p~J:t\ ~..:.:::c__.~ r:.(' J :-püi:.tJflr.'nt .:q' ([('cHon
Qt a r(·=-:n(I.:·I:::n~d\·~·J~" :_·lI~tC·(·. (lI'St~j_aLJ Ot :;ltlLb. cHici¡.) ~OI31J(__. ~,)~;:-\ :,j' t'Lny s.!b:-tJ.·,tul
}~111 ~.:1 Its pr'·~I)f'r·); or n-:' ;'0 .'.~' 'tng ot ~II1Y nl.-'......·rln~~ ;17 r..,'n rn";;' L.,r r> rrŒ'-'<'; of '·'O!irn.'n'-'! )g
;1)':" :'I!: .f'.:' 01 _·,I(>·...I~d¡n~. t:r ...t,):::kig ~.II~' ;'1 .i. ' )I'il:lHF-ìf ,r :"t"( ri. .. liit III:· '·OII:IIIIAJI,p.
IJL' 1 ·.f ,II', .".... I t'; ~('- ~.I. l;n'n:'.·'t..¡II~ :1~:li') '.W'" 1-" .1.>. or;1 Ij' Ii, "l,' jl:~ ·~ I,II. II d;.'I)(:i I
Hh·J' ,I (';¡"~11:11l ·,T h¡: lit'lI;] .f;~;fitt"i;t P:t'I\.' "I .t" tf'P~::';1!()r 1:'1 ;. P' f~iF:·'.1 ':~I"';'~" lITHh'T It 1:.:'.
r:ro'.'is_or.~ of ~..~:" S('CIL'ìti~ =n\('~tor f-rot{\((jcn z'\C( cf .;:ïO \'.hich t:\) l~ C)j))C'n~(d ~o or nor
I.JJt~'> nr h·)(·:I·~,·'t~"f'"..'~. :,·:Jny. (~':I . ~,Jls ¡. Itli. ~Idl.~ uI .¡:¡ I..'nk· .";1 whl, :~'Ijl d.l! dp~;:'m
IH'''1 :1\ f~h11i:III, iltt-~ i~:'II;.t'T·.) u; slId, a;:II'OI~Ih<'~ :Jt'1n~~ ":' ' ,ltf-" f~!il: ".1 ,1!'1 i'H?r~i"illb:'t ;..,1111'
l1:r .·J¡"¡":'rI, i" ;'( l' 11::1 d1:-,rtlJ~R. "".lIlU) ] ,j ,I:t.\.~. (1111 !j'.~ ':I.¡IUIJ~ ':.\ ~.'h) -:'~(y ;: h:,J,;r;J
as=igLJJ}.:·..d kr th~: 1)(11t~'~Jt :)J :::"n:dj{·~)l~} 0~ 1i,1 L.t a'..IlLs:swn L·. \'..1 jtI..,~ 1.\\ 511Ch 1";.-11 n uJ su~h
p1tí~,-'-:: n.-,t': U tv r ,~, r:!y ~ IIrh P,) rTy'~ (J:-I~ r ~ lS r hr·~.·,r ·...orne· 1")11("
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~ (~) t ¡' \ (~~ )
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34
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Appendix F
C·) jUyt-J'.. \.t'IJgl ,Il!:) II:", '..'.111 1':" "Ípp., Jo. ;-1(1" 1)~L."'·lli·.;11 <'~ I) c1IIV ~L'I~, flJo:- 1i1I1UUIII
of',f::lrlf'( hy :lpf.li("Ijh~n () !;) "")l1Yflf':", \b-'~:I~' P~I'f{')'/'l:1gr, '0 n)pp rdt;l{'~ Prl:"'¡.~ ,......,.
SLch J¡J.ns.1cti:)J) ~ of ~\.l( h drc
un ··:uyc·r; \1:11~1 P(T{'.'" ·l;·ì!j:-'. ',',1'11 n':\r¡',n '0 ;ln~f Ira 'I'.;,(n..~ ) ;·!S n' ;~n~~. eLrc. r pPf(:-rlt'gr
>.·..hkh 11U)' h... ::'1";1: te rf-~ -;.., 1'~·'~(. \'ht{~i1t :'t'''I'''f.tll;.i.~p·: ;~L 'f"'f·..d In hy 1~II)l~rn,d ~·..]Jo:>r cr.
¡JillH'. h:--.'.· (.'uf tlLI~".! :I:¿IL.·II.~ i.l :¡.' p,··~·(\JlI:I~.' U'.Lli;I,,, )'..Iì'.i.illg Ill.' [,/LI·I\.,
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~'UE ID~c [:a;;tc~·c,r Slt~ _1ì-zn<:'lC rion
(I") "(.f)lIlh":~ ](JlI', ¡tip 11I!·~·rl Il~ '~J1f-:'iF·:II· ht1..~··¡p·) ,~(t>~ !ìrlt·:I;
( f) 1:L' .:.TD('"'. ,..H 11 1 (,~ fJ( C t,(\ (.1;', ~)(:l U.. l ~'y af :\ 1'. '. tinE ~U\ .~:"L J I" _I;~: rtlt":)t(·o~ ¿dlC J L u t~ rt~ t,
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'0 ::f II'dl.~i:) 1'1';)!l;'i''',:» :)1>I:;':itv.n:.; a"- ;~n)'~ d;--( J ~\I;g :'ph :·II..··,...or (:y illlhr
al;:--.H !(;: <:I ;1':\' ~~ ld, i1~f'PF I¡Ir 11 I, : t l- C. :::,1 i.: Ii: : f' Jor ~I F'II - uq ><)~~:~ ;...:' u:· h I It'd 11 I ~:<'~·cr~I~.:; n~';..:.
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en s:'~.h ~I:-f.:- '-lhr;Jrt(·dtr,·-n,;t gC·1ì,,'·;)r·t'·C"~f;.?n:0( \:., I'\':' ;f~,.·'()~t r:-l hy thf> fJ.;~:n'í's or rh()
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d'In?;i!n~'~~ () S~l:J.·Y· ·.II"~"n~· j !:. P:-'l';,{~".-.ph.) h~~r;'.n11 ;:<.. ()~ <':11('1'1 ~tn{' Innh::~.~ (,i~nt'·~~,.} lO
.·_l~H kc·t pr.)(Tlcc· f':'J ~~U( h ~\('r ..1 i LI~'SI:
n: 1 Prir"" I)jnp'pl)fi~ ",' I ~·,,,pt.,, I,' ,in> 't';;n'",:~:"i,~r, j''¡ ., ~I': '1;·10 lilt, .-\'g·';\r-i'-' ;.tn,olll}1
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PI.tt lur ~~lJCl '~r.'JI~.F' ~u~ :..'11 ,J :\60 :J.J\- .J(') \~~J:' ',:.(~~1:; h.>1 liE' ~~~'Ir:~tJ IJlJlIJt)t~lr u~ C,j)·~ <..iUJ
:,J)p"~hc "~··:-rlc·d (()l1"'m-;C' "¡( in;;: ;J_'. (~·n(. 1:".:1 <tnf~ the· Ptr.~l·~ls(' [)~-(' fc·r SJh Tr:c_~:.(tJcn
.."L: j cnd¡:-..f.. ':):1 (t: ut ex::- L1.iJh~ I the (J.f:" 0 f ,,-"¡_.;~ ('~ l""(dn.Jt:o~) (1'(,(1..« ': .::\' oJ ~~ \. ':-L: :'::. un t :/.
~udl fIT',' DIf'uc¡Jli., ¡t I''. if ~~>. pil¡e.: ',:\ ~~.··L·ll'.. 1>.1\.". '''.Itlt I("~}~'\\: I'.. ~}.::':.
'I r;: n ~:'ì:' II ~ II' :
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E ,..¡~~:":. :
? . \r-rr--,', t,:'! 1"- ~-, . '"I: ~'r ,'q)Itr:' h;)",( ?'fif"n.- l'
35
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Appendix F
(,,¡', :·;l1JI.· I;:t:"':" )II(,'~·. 1 ) 1;11 Ih.-> P .11 ha:,~ ~:1k l::, 1~..k7' 1:11 \\JI]( It Fup.,!Ltst',j St'.·..J .lit'.~ (11-::'
T'·.)n~Jpf1'P.1 t",y '.,p If-I' T:~· n..,..'?- 1nn (lt~ T!Î~I·?'~-'-pr. f-)."~r:~ ,}.;t'lf-I'P R'\,pr 1'"'0 ~~llpr ~elW efh·
("n':i5('. Sj("~~ PL(( inCC:3S'.::( l:~ :L: aJnount (of L.n\" (¡)sh tr~:L)sklîOO b~ ~~"J)"('r to ScJ}('r plJ
~lilJÜ I.U f.1.n:~."(tF J 40;) lJ..;f(,·of (lJjJdu:n'd~l"d by !tIt dIL~Þ.,JI 0: (IJI)' fd~ 1 '.idIJ:s<:,']·-;:J [,1:,
S,:--IIf>' TO r~1IYI"'I' ~~'lJr:'-IJf)IH -.-; P;1t,gr.1ph ~I:::Ù ~-rr(ln~ 0" ;t~-:.p Ip-(J to r~~J'F'(, ~:-'~Irr'~ o.~,II~atlo-s
1Jnd~r {·'~HJ~~ r i~ :.- I :...··;~l'ra~}" !~ "H'P~f'-
(]Ù .. Pl1"\"Uv-'C c"F'-·1.i;-·," UP ~,J'ÎJlifi;.:'" Ir~1I~Ii-rT....I(1 tn· c"¡...:.IIH· ì:) ~IIY¡"':'l hi;' ~·r~~u~;~.· 1<J11 hpl~"
under. ,1:1d ~U1)' x.:-lui::.C'S s_·.bst:T.:ut::cl tbc-ref()f ~n ¡¡(-~crd.)~:(t:' wi:_') P:1rC:l~r,1r:h 9 hcrc'Ûf T~:('
1t.'L.. 'FlI)dl(J~ù] ~~'('urjlk:~- ''''.11) h·'~:J(·tI .t; üJJ~ 'rl(Ul~:Jl',O[:Jl <"JJ} U)uC' db.; s1t~.¡J ilJ:']u,->"
Ad·:I·lV·na1 p¡)If'h(1~~d SPt'lJr'1I~~ (>I;"fr?·:1 p:II~t::'H11 to rrt""fll-:'-!P' 4 ~;.' ipr?cr :t·¡) stli"1
~~(C L- d~~k 111'11 j ¿;~ -- ~ : 11 r II~: I F--1 ':l1~iT1l. t) P:~ l' ~;_~I '~F It /1 : I;"' "t-J~ ~: f:
{(ll ' Rr-pn rr tì:1Y' Dafl"', rh.. c1~,Tr t~n \\. t"II~· S'~ Irr t~ 7'o·~~.1t··('I-r ~(- tri(- PUA:"h; ~1 Se.r1]-·I+ ~
:J.'n.. Ihl~"~:I. in(J¡.dinf. .):jY (0t·~· d:'-X\L'.~jJ~(;d hy 0prlicJLCn of (F' p '~'".5ioj)S Jf -';u':-'fr;~,ph
J( c) :: r 11 h('JI~C: f:
tr) ; r~folr1f'I't.;t~~ D1i:·J.Jo", Ih~ pTk~:.. \..'.. ~~. Plln)';'¡'ì~~t S~(J ' iff-H, :;I'f' ,.. I::: Ir:Ht''J~rr,...:ll1011ì
ljU~C'l (0 S('l}(-f ..pen t:rnLfJ)t!c:n :If z. ·lra,)~.((lcn, \':lüch wU :~(, (L':('J.cjnc'cI In ('J('~~ case
liLdurJiJ)~ -=-1('.lISi.ldlOL~ ;_u:~1i:~i.iblr J.lµUU lICIllJ:.J) .J~ J.~ ~,.lll 01 ..ÌlL' Pu:',-·lId)\.' Pric: ~llJ.J
~l1C' Pric" [)j(T::-J'>:1tial?t5 =:t fh(> 1;:t:: OfSUfh d':~(>Hnjlúitio )"
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f: ~.~ .. ~ II ~ T ':; ~·t.c~ iT I All JO l'. TH" '\'. iI It n<·r;,t't" t U é:' 1~~'T1 rtr J ~;(1 CI i·> II (1~ 0: iiny Cd. P ~. f ë: n FJ U~ I
cbtaJn€'<i by :.:ìp-:-.l:.(~.rlcn o~· ~11~ S()lIe:'s }\.·t\1·~trJ P~r(E1nd.gE- t: the Rt?r:ludn~E rric0 fOl
~L(h -L¡:H1SaCtlJ_·. a~ of such datc';
U:I "Sc·H.> " ') ~.1;)·~ilì PC'rfrr,-:-gr:" ',":lrh re~r:~~T fO cJn~~- n-,), ~;t( Hon ;t~ t')f ;1ny (btt>,:1 p~r(('I-'-;tg('
(\\'IlÌcÌ¡ Hd;.1)' h.,.. p:lI,t1 to::, 'liP IL)~'s "1:F~ill h~ :·F·n1.i~~: ;·.gt··+:.d 10 by ;,Ij\-+'" :uld Spl1.... CI,
.J I,t' al>;\o::'..c" ur (tIY ~UrJl ,-tJl1-·7'rU-rll. L::-= pt..~·t'lIfC1t:!""'l)i:1:1i:;"~; I... ~Ji',ídjfJg IIJ:-' J\.../~1rkt-t
Y:~lllf~ ,~r tt'1~ PtUY't'I;- c.t:I(·1 S~c11rltip~ on rI-l(.. P,1r<'h~~.p D;Y"Þ r,\.' Tt'IP P1Jf~ ',:1C,f1 P, i'-'f- ~n Th~
l\u:hJ5(' U~n=' :c.'r 5u,:~~1l·ans~tlcn.
3. Ini.t iation: COJlfirUHttinn: Teflnj nation
(d) A:: a~rt~ll1'.~lL t~1 c:: Il:T iLlO a Tla:l:;é:Klk:,J J}),r~" l)+: IL~:.cJ'! :"';·Ld\. 1-':1' it! w:'ililJh J'. (11-: illitu-
'·0' ::1 r-~i: 'H·T ~11\..-'1' ,:1' C,FJlH' Cn thp rn1'1h;t...~ r;:'1~;'" lor "f' "-'1~~U)oo.;~¡' i<HI; hr: r'I~':·' .I"Ft
S(,(ltriti~ sh~L be tr':tosfcrrC'd :0 ~uY(1' 0-.: i:~ ¡¡gent c:-.~:Ün~~ the' tr3:1£cl o~· :-h: rUE ID~(
?'I ic' 1.0 t!J) è.1U....:U:t ~A S::Ju.
(1):1 p.~H :~~n"~i: ~ I:: ~~It:l ÎLlu:~ 'll~iJ}~~,,:·tlcfl h~lPUII(ìFI'. B.·,~,p~ '>1 ~~rH:'.:" hulh:' J~ ~1a~tJl
be ~rëE-:l, ~b4.1.JI P::")HJ )tly c21j\-r?r-:c L~t othE-f p~t:·t\ d ·,\liU-2~-_ ('cn:_L_~~£i':'ln of f::»(L
,-;,..1 n~.)~-i{) n I. ~I : Con n 1"" 1t1...;n ",: ,-, ~(" Cr~ nt'- f1ïl:: n,-"f) (1'1:111 (j...··q.-r It~:- ttV" FtJ --C h.) ~~f.
S(-(I.llitj('S ~L:;~]IIC1int~ (:LSI~I lIU1111:2L i~ c:-J}yL ¡.:kn:JY Uu~,.:; .).:j SelJ(']' 1)K1 s.:r torrh (j)
1:1i' PU"~' ::-JSt 1~lìli:'> (ii) Itn Purdllls,.' P"L;{~: ~¡i) Ilw R..,_..lJ:·'i~l-it 1:I,d(. II: I,.'~~ 111(-
.-- ·f-:Hl....;..:· i< HI i" I ,,',f- ¡Pili ilia hit-:. I: It d~-~ 1~~' cJ (iv) I hf- I, it' i T1 i ,~:-11 f- < n' n P~'I P';- t;; ,.... Pl iff'
d-:-pli(af'Jk :c L^..C 'J'~¡ns~'_:-~~cc. ¡¡nd iVI ~ny ado:hh·Jrì;:,¡l t('nú~ o~· (or!d~t:o::~ C{ LV":
Trdl1t:~.~L10lJ II''':' llJ~'<)ll~isl~~~l .'.'ilJJ lllÌ~ :\g:·~e:u~::_t. Tl)'~' COLlil1UiJLhJll, w¡.z'..'~~lU \'..:tlt Ill1~
:\g:-~~':":_~'lJC ~LJI1 ~"';fl~lilutl' lO:JtlUS:v''! l'\·j~l<.:It,~,-, L,lllit' ['..'lIILS ~P""",,'J Ut'l'.\I.'·\.'ll ßu~..'] anJ
5.::111:'::' ','.. j (h n~sr =- (t t ~I tt)('h):~ sac ti::-111 ~c '.'.:hJC h t hf' ('0: 1 fir ~)<Y in.: "(·b tf'S un ]rss '.'. i: h
36
~ ·'f· r î,,\- r-r':f pn(~ . \-1; ::ri'f 1'~1"1' ,,' 1- ;r<:!'"'-.~··ì '~.m (11- . .~
e
e
Appendix F
rt:"~I.lt'll.u .," (..)H.·.III£-I i"IJJ :;f.»::-.;:jfil cIÜ'::"~',u i~J(!.j~ pJOI. .pt't' :1':~J I ~..tj··I ItJt:n-of II
T"1P p\rrlT r.t ~:m:y (Y:n :1·..., h;)-\'JF~n -I'It- t~rr(l~ or ~~. ~I'I C()'~t1r-'rt)-';()rl ,)"<1 r111'i L\~'·r-~1TIPnT.
tl1Ì~ :\ðf':('_n~ r. t sh.)J ?r,=,~,zjl
(r) ':1 n-I( .~;'/Sf': ~).: T'fl )~;)ITln;H fr ïn1 )~~;I,:", tlpor, ,1rrníln,~I: ,¡fh (J(\ln:-lncl ,';)11 t~( ·l~·~i( l~\
-;'1JYPf' 111' ,....-,Pt· 1111 ilpr I';:]) \\1:('11 ri"'F ;i'" ¡, CII~ c,n;ilY n ;;q:--(:r'd:i:':'~ wi'h r";~rkpt pf"~c-
\.('.' J,~d~' J1H;IIt., :)1 u111( J·,·.I.....C ',)(J uJ.,rioJ :'.;L Hl~LI~ ~s d;..~, ~'IJ ',vlull S:.!·:, 1....:1:JUdlUlj
'.\ iI ·:·F ~11Fi'li\f":'. (;U Ih.) rl;. ~. .'Pµ('¡I1µ:1 iTl I,IH'II ejp'tI:1Tl:t, ,)I' r··" ;Jw (Ltlo.\ Ihµdnr 1¡-TUrTLt-
t:o~ in the ': else- of T:'i."!n~)( t:on5 h~w:n~ ~; rL,:C'd tern). t('nni])~tion :)f the' Tra:,:sJction \\'iL
b~' I.f[('t· i.'d b} tJd:.j.f(') Iu ~){ht u:.I~ ë..).!UI. l~f t:),~~ P~J'd)d:-'~'\~ 5',X1JI1tL~ d:J UIY JlJ·~.~)IU: LJ
l'~~perl }'fTf.:tI (r(~'.f·:J L,y K, Y7~r '~JI( !ol 1:r;-'\ i'::'1J~ ~Y rrH]i1.~:t:. nlt~IP_"lr,d IC', cr'
~L'PIiH1 ',) I.:r: \:-.-,11 g~t' :on"'. or s~n?-' ,~u·s UXi t \r': P~ll~iK :~ph ~, h~J ~: r: ;i~JII':~, ,¡~ 1: X':SfPI
of :.'.E l{f:>pLlITha~è' .=( ice tJ ~n é,:':"Ollnt of lJuyt'J.
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4. Margin :\1aintcnancp
(:1) d ~ fl:~ Ii:'" '11;-: i~ggr~g<11r 1\/i~It.......1 \;a lit"': {If (111 P._ ( 1at1;.~"tJ S....'nJrili~~ :-'IJb,it-< I k· 411
'-'r-:-Ut:--,:t;' intl....;O ,-,"'i:'[" :t par1k1:lr' p;;fly h~r,;.J n is ;':¡r'lir1t"1 ;,;.¡ ~~-~~r~ is I~'i\ fha') It'~ dt-~rf'-
~~~r(- L I.!~ :'1 '5 \:bl~in ;\rnount {"(,:r all SU:'iJ 'l'r¿:_nS~t :ttûn~ ¡.z) - f\.1ZJ. ~ in Ü(':·.c (",: . thc-n C u:'v'c'J
Jlj,JY by 1I·_;ti~',-, t:.! 5;.'l1lr rc.j1Jl:~ Sdlf.'l ÌlI :sullJ Tl~.L~~d:li~-'lnr '-.t S·.:U;.':':s I,.;;..tj~n. t·;,.· lr~nsllr L..'
'~"I1)"I~r cash or add. ~jo:1z1 ~.("( uritJ"5 r~;::so ('):-:,b:, y ;tf( ::-ptz hk ~o GU)'f'r : ":\ckli: _ona]
-"uFllr1:W::! ~)(',~. 1]1 I';"': ~',:' 'h;~f flit :-d~11 alld tI~It'n<:h' \,1cllk.:' V:) 11' I{ I.lL' FlIH1E)~:-d
S~nlrjli+-'~ ~nrlu:JiJlg (:Il)'~.'.~':. Acdi:i:.:-:{!I PU:'c:asfc S~:TJi1ip;.;. \vilJ ':f~ful'::'n t':lfl::t1 (F
(>x(e~1 ~ H( h ct~~re~:1(F= =:.uy(>r's l\1ar gln Aröo...·.nt :>:1ecrE)Sêd b': th(? ~nlJ-.lnt o~' any ::vbr~jn
~'dlCjt)5 ct· 5Uf~) (~)t~, c:r1s.j),i2 :JcJn any IrJl',Sc.1Cti:)J)S L1 w~~1Ch s.,ch !3Uy(t 1s Jctjn~ t:..s
S¡q 11' ),
(1;1 d all\, II ? rh? ;:,.:;.g!Pg;~'f~ !'.-'~'lh·1 \;tu,,- of all ~1 Id..,~f'( \~..)(·nriri~~ ~{lbl~' ,~; :'.-1
'.·((1IJ:-<1: J(JlJ:, III ·"IIL:!. ~1 i;~'1Jtj':l,L1I' pc--"'~' IJ':'!',::" C .:- ~< fiJl!; :1" ~:-,L~T ~Xt:t:::-'(''; IJIt' (1µf1..t~:1lr
S:~llp-'~ JvtrTir, Árn'"~l1nf "t~I':11 ='1)0"1) ·-"-:in:-":1î-t.-:n.' :-11 ~11~'h ïrn"~ I.:~ '\.f:-:f?,"n r.xr~~~",: r'~,:)r
Sc'lk. In3)' by noti:,=, t:, l.L,y~. fC'C.ut.:' ':'uy-:-r in sl.l:h 'JrJn~1çtì:'n~, ~tt 1.)...I)'('J·5 JFtlon: to
:·ðJI:,II.~1 t(~iJJ '," PIIH,II(~.'\... St':tïJdli~'~,) SdL'l, ~u lilL,t tll'_~ dbgngdlf.' rV1dr~(,'1 V;!L~' ,~f IlB,'
}II'··}n-.;p:1 \Pf' r-¡' r.... ;:l1fT :tf-:I :r·tii~rl or ;il1Y ~1Jr'h C~1,1t ;)1 :-1ny ¡:1I1"':T~,pd ~p"';rl P\ ^()
:'j 1) 1~.r(,II"(, J \~" I. ¡ IJl'I\'u-,Col1 nol ('x·:' i. '(\<1 ~\ 1(' It ag~rr~alo:' ~"I )(>1' ~ \, bl ~ ì:" .:\lll(r~, n r ~L CTC':)!):' d
1.;\ L:? ti1l1uunl i._,r JIJ\- \1~Tgin E.\.li:~::~ JS ...:oj ~ìJ'~'~~ CL,lë ë.L~t~g ~r,-'lll dl~r T:'t:.u~;'E'Ll~.:j) ÍlI
·.~:h.(}-' SUC1 5cJ:r 15 acting:-.5- Hl~y:::r)
(l') )f d.l~ JI~IIL:t" J~ ,,-¡\TIIl)} E~U'r(T OJ SJh.:r ",Jhk'l ~u'-.'µa: ~J~rë.J}~L Ú< 0: }I) ...:f lLh Pc..Jë.JJ\~'d:..11
~. :.' hf n I"F . ì-;~ \/ ;1Tg n r\O liff I ;r+:JH 11f- .~:. n í; n}' h1!~ln~'-: '.) day ¡ I1f >-tny rp.~~ ·,·jng ~IH" h
··:uu ~~h~~1 IJ o1J},,>r~1 ("..~II :Þ·.' Add1Iic'H."\ P,Tfh~:t.~.p<1 S~.. \llj(ip~ ~.~ rr:)\id'i'd ~f) ~u(h sut.,·.;"tr~~-
.~lap~J u:" J.re~ th;111 tht' :"10SE' ot ::llSln::~s in tht æleyarH ':'~:'Z1rk€'t :·n ~Udl d3'\'. if ;,L:Y ~u(h
-^()T'((' 1<; €hl~n :.tTPf Tlw \brgln N,"':,Tì·~"'· D:-:- (JI-nr; tt"¡r ~~{1rry r~(í',...ln5 ~1 :~h n·~rt-~r 'h:. I
-: Jnsf:·) ~1.I(h (::ish OJ s·~>( "Lit i·~·~ no ht'~'J t". '_J!: thf" ::-lo~~ of b I.I~ L c ~s in the f('k'\'~'\11t _'.~¡lkf"T
«:II UIC U'.',\I biJ..ill'~s L~J~ rn!::þ'."ilb'1l1< U! (. ,
I. d~ :'\r,~.. ~ .:-_~ h tr~H)sf: nC'd pU:·~lI.1nt tc ~ hj:; P~J .:\,grc:1p_1 ~1¡¡Jl be ~tt ribuL'(l re· ~t1( n ~I'~,nsanion~
ill; ~Iktll tx' J;.!n,·:·.j up:..·.. by :='U'f(!1 ,--fll" S'_'~k:'
4. ....c'f.r.··-'-, 1".:'1 1"lft-.. ·vl.' <."f . f~r¡) r!'h~<,f ,A'f.¡"('''r)(V'"
37
e
e
Appendix F
(~) SI:"IIt:'. dId BU~~I (IJr.~ ;1R1':"t', wHII n-:~pr:-d LJ dnv CI (1l1f! riIJ:,;1t',Ío.·lh tWJt:luJdo:-' :11.,
T~'rM)('t1Yp .'t:tH:"- ¡~f r.'~/P·' ,~·r Sf·liP.. It:.' tì()tI~" 1HH1pl' ~l1t}r:ir-~r~-~ph" (~,I ::ntj (h) .-:1·"'1<-
...~Ij..~~r~ ::oh Inay·,:>::. ('XC'..( i~: d Ij))ly W~l(:rc ~ t\1~L~L: l)':,::~( it 01 \t:r,-211) Lx( ':$S, w thc' CIS':'
J.lJa)' l>....: t.~,,~:'-'i,·tb ~J :; _~~.\.,"" J kc ~O.Jd,' .1 j: ..~'.iI 1. lJ: ,J ;':\ _>~, r. fj ,'I,. pel t.. ~ 'J. '~"bt.' 01 ,." <:. Re p ".J ',' h..t:~",
',)rt ( :- s ~ or ~ I It' ì 1 Tr~t 11 '-'".~' Ii r~ n~ (\,'" j t' 11 íll ni~. II n t I~' r p,""::!' n rl,~(' q IF! II .~,r íl g ''':"'f'O TO I;y .~ 1IYf' r
;1'1.-1 "\pllr-:-t' p·i..~t I:~ Ftl'p..in~: 1111'-\ :r'y ~,II("h' ":~n~':'ìlí()r!-)
(I) Sµllp' ttl1:1 r.1t'~;':1 } 11;;\· :igr~"': ~.\iltl IF,PÞ-'(' I::, ;n,\, "1 ;,111 T, ;HI~:..I~:ÞT1' "...l......11l:dp~ ';':1 11r:
rC'5pt~ctì__'(' rights ct e..~I::' ,x:j Seller und0r sutp~IJ.g:)phs (): ;:lnd (bl cf this Pz.rJ.g~')ph
II) Je..'4u..Ji.'· thi.' ,,:IJ Hlld,J;~ ~I.f d j\~ug_JJ ù.:fL...I OJ ~I ~1a ).;.111 [I\(~.~)s, as .:J~,' G'J:)ll..:JY bl..-.
In;.})' hp pxel,:'j~pd \l;hHIt-'\rl' '->U~~l ~ rvhrglu )flldt ,::r r':1.1f'tbirr --:xns~ e~l~I'-> \...¡ "1 "P'":Iwt'l I.;
~,ny ~ill~I~LJ11~.t( 'L,n ::ErFl.m:I~J :~'~:J:'llJ..l~j '.'.LltO'" l~~:~nll() ¡~rt)' olh~1 TlaT~~-HIÌo::,n
ou~t3~-.clm..2 undEr HLS Aøe€'lnen~),
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5. Incorne Paynl<'J}'s
):-> 1:-01'...11,,111>:" rlll}tl':~. I,.' 'r:'~i\~ i-II 11111',,'11' I o:"411Ji111.., it I ¡"II,r p¡.;d 01 Li,driblJlt-d :1'1 .;r jll
rp;..pp(' ;',1' Ihp SPiiu"lip;.; nl:; b ~':þ f)"'pr'""i~,~ -opn:I·.+d hy \fJllpr In Ihp 1111 ~XfJ" ;1 \','I"11I.-j ",p
$:- (~n:-HJ::d i:' tlK' ~«lJi:lC'S h;:¡d no: b("cn selc Ie B_.~<:_, g.y~,. shaH. ~ tl1.:. )jrtj(~ lr,.¡.~..· ~H,('
\\ith H:LSI>ld 10 ¡;'J))" Tr~'L~~t t:,y,:_ (~ç In .he íJ)~l'lH.I~' or dn~ ~d:11 dµllUJlllJ _I ~ ruyu ~J1aL red
S:IJBhJy (]0-:-·:rrdnp i n i~s rj~( ['('tic n) J j.,: fh~ (.zt2 ~1I( h J )fOnK :50 raid or ¡ljscihr('>c) ("i~her '.,'
1 IjHl~f.:' - Ie ':~'I' ~'IT"d i t Ie t h . ,~If'fo:~,l] II I:) I Sf'I1."r s" r l' It ("OIl1: \"1111 'I;; I>'t I I: t :) I IY J¡ In Iii I~~(-d
Sfr'JriU~:-: (o.lIbJf-I<· 1<, ~tFt)r·r~JI~~f.iorl ~.f: :i:) ';vi!" }'t:~J>:.l("1 L· 11l,,'o~';r-1 FLC HI (·éb~}. dTJP.~I' ,tip
Ic(:c1e paY:':1-?:':T Cor paY:'ne:1t~ to 1()d-:.C2 rhe ~.n1CU:":t. If ~ny rc b>.? Tl,):-:sferr;:!c tc Ð-,:,~/~r .)~,
S:·J:'f l.~:n KnniG:,tJon of such L¡)l1s.)cûon. Juycr 5~~~d not b~' obL~~t:d to tðk: a.ny J( tien
plJr-S;,lrH t~.. rhp pr~f:(r1 ng s;"nt~IlC' (Þ\) T(. n-If~ ~XT('··t IIl~f ~1Jf'1) ~~crl~lI) '.'.cIJI(J 'f~<:tlIT 11 "(~ !'·r;·
ation ,;-,f:l \'1;:,16') r.þ....n,~·t, 1Jnk'~s prl(',r (}0'~''-: or ~In.Jt;,-rv-'II~l:)' -lY' ':"v.lfh Spl'pr Jr:j'''stprs-o
HlI~p:' f':i\h ':)1' .:".:ldll ()II;~l ~'Urdl~;\pd \~U nllps \:Jfflfi:::nt U Flll11Uµ '\11o:'h \1..: ~II) U.~fi:' (:1
(~::'~.) ¡( ,1'. E'.·t:"l;1 ~1_-I><41Jlt ,....it:. rt"~I~d L S:'.It"1' tld~ on 1I I"t-'d è"IH, J:jllt, ~·I.JJllíIlUjlJg .~t lilt-
tinl? ~llrl-1 rn,,,()-v~r:: -C,lyrc1 or ·1t:n'jr.11TP(i.
6. SPf~llrjl y I 111 pr{\~t
(\L.:~)1.t~h thc I)¡C'E·~. inlu):11h,11 ¿-.II b,H;'ik.It.·ti~JJ)~ JI('I't,'ULlk1 t::- <;;, (:,:\ ;1Ld rtlTdE'hl'~ cud n.~oI
loJ.:::~ :n ~~'~2 t'YFut ~;.rl\ SUdl Tra::}::'é:'_t[if";H~ aJt' <.J~E:Jllt\tllü b-.:' L.~~·J)~. SEL(:T slnJ '~t· (l:'f:JJjll:loi.·, l'';
l:2.v:- p~C'dgro to I:¡u~i':'r :.S S('curlty tor the ~)C'rto:'n~)({\ b~; Sc-llC'1' (It 1T~, cbJ1~..)ticn~.tn(c~· ':';1(h
such T...r_n~:\n:o::.. ~_nc~ 5h;)J b0 dN"tn0CI:o ~:.)v(' gra::t:,j t·:, B__~I:':-.) S('(urìt~, intc-::-st :.1), )[ cl
lIlt PIJr:~l1ì.1~·Ù SiX tLÎ.J':' \"J.iJ ~'~,'~JJt'l:I .t) a] '~ìt,JI~d~'L()I:::: h,T..~lIJI.jtT :.Jl¡(} a:.I ~_..n;Jlh'· 'h....('\~
and o('-rr p ';~r~]:-. IÌ':H'fOt.
1. Pa}' II H.1I1I. ¡.j II d TI a", fp r
lIn]ð~ cth(-rv,:js(- c.uru0l1y ,-.gn:..-;·d. ~L tr¿n~f(rs o~ ftJndc. hf:rO )cJ.~1 st....n h(, jn i;-)Jn(·d¡.~.t(·I)
;-I'~'dibblp rlJ' d~. ;\1 ~~'{I.~.HiIL':-; Ir~JlI:d-:"lí'd by 01,(' ~,':JJ'I}' Iw!",·.;!) I} H Oll:1 P"'ly Ii) :-.ttd II>.' ill
:-.1111;.:1> If' '( 1J1'n or 1 J-,...:r I~rp~' .: r' '\tn II "',F ;..wn~ UII::U ,ifJ~1 t'l\' : jul", r~:Þ-'('1)1 ~(j - n:-.h 111 utJnl ,: 'd i r;1" ,IH'
er ~.~lgnr'-ll"'n[ in blanl, :lr.d such OL'l,:':' clJ(l1n:a.C'nt~ti:m :l~ '.he --:'Jrt'/ rc,::,:\,jng p....:',~('~:)i:)J) :'l1~)~~'
L:ZIS:UJ )l~i ~'C-qUCSl ¡U sl-_z.Jt bt, tr~nSr:L('Cl on [1'1(' bo.JK ('._lJ~\ $'~~(('~~) ,~:f;) l-'('(L'f :11 R:'s:::r-vC'
ßa::k, lC <Iii) ~Üillllx' 1..;,tJ)~Ilnt_'J I..;.~ all)' ~t_Ì1CllllUhuJ lllUlUé.L!\ tKI~~_·¡.;ltJl:Iv t~1 SCUll' J:_d
Buy'i'
38
;-''-r·fõ-r ~.~. I!Hf'. M: ::rN" 1·~1-,.'r,'I-;r::'·',?·ì.~.mrn- . S
e
e
Appendix F
8. Spgrpgatlnn of P\lrcha~pd Sf\curitj~s
1:'1 II.~ ó.J\IµTlI ¥'p<J1IÌlvd h\ ;"prl¡';~h ~ I;~\....¡ ~¡II r··nllas....~ .~..~ 1J··iti~·J} tHo J:':'x'-p:--....ton d SP If-'r
sha:.l b(' sC'gf(:g~.t(\d tron:: :)th~r ~:'( nnti:s :.n its p0ss:-~$i:,I1 '::111::1 sh.ìll .')( id~:tin('d as s:JJ.: ::t to
nuS. /'~grc-('nll·lr: S='g_'='gJ~lOn Ll1L~' :0: a.c :'OlYtpLsl¡cd b~1 :-'¡:'p_JpriJE' ¡':\('nLll( .)~_C~: :lJ) ~-'":: 1: :)oks
dl d J t·t ~.~ l":) of Lh,: t 1 ~ l.Ju. i 11<.:1 Ut.LJJ!; a Jj l. iLI Kid () r j(~: v I ~ .il·:' i J J I ~LH:ci ill:r :.; J <.l d ~';J~i tag ~':";l.:"'~.'
r;11i~H'J) j\1J ;.f ~~r f·r:... Inl P: r1~~ T 11 t'H F PH r,.·'· :~lO\f·d Sr',,!" i f'~, \;' .:\11 p;.'~ H) ~j IIYPf n I! ntfo PI) rr 11;1 ".:.>
[1,1 It :)" d. JI k-s~ U lilt T',A, he dhJ!'i 'ct I~.y ~\1:t·. 'J ï 1\(1 ':':'11 :"1", 11011 Ii 1If. i II nll~ :'\~ L'('n 1(') , ....han . :'11
.~. .l..1Ci:' Eu} ~1 trUtH ël Jh<:,gil J~ ill) eplu dM~'~ IJcL~;'K ttO))) h' .lh lt1P ~-:'tl; ·~·tlJ:::'ë~1 S ~~'lT: lje~ ~) OL~fr-
wlc;p ~r\11-g tLln'ffYïin? rl~~r:f.1ng or^ypcrh(\()tlu.f. thr rtlrrh;:C",{'<1 ~íurltps, hl1t n.~ '<'lIfh
trJ.n~)C~1011 5h.1[ ::li(\(' L!u'{('r 0: its 0bL~¡:ticns:0:- tl~n~f::'l t\IIClKSM ~~'(LI! it.Je'S to S.,·Il(,f" pur
~IJf1ÎI p; Pr1lìigl:·tph "~,:"" I) " rn.....r, o".:f ~L\:-,!··'i 01:1 it!/ li:111 ,; C:t·~.íl or Ik\ i :1: 11.-' :~, 01
:fpp~, 1t1(()'~}P J:t 1"~ ()1:1)~;~lir·.n" i"': S~ll~r plll~I':;nl 'f: P.H';~Cl:t-·oh ~ hHPO
e
Rt'quirpd D'i~('lusl1n~ ror Tral1~4it·tilln~ in \Nhh'h HIP SplJr.~r
Retains Cus1od:v o'"lhe Purchased SCf lIritjl~s
~lIe] 1s 1101 T~~I1(1Ht~·~·, t:...: ~ut~li¡un:: ol1wr ~~'ULL~S kr Ihc~E ~'d~ï:T. IU Bus
,'\g··~f'T1")pnt ~n~ r hPt'f'f;-tfO n)11~t k~p Ptlyr'r'~ C;Pf 111i '1..)0(, ~Pgfl~g;lrr ri .) r ;: 11 tI·~; ~~. un Ipc;~
-1) rh.s ;'\~r(~('rn-:n: juyer ~r JJ)ts ~'2J:'_ the ri~~'.t ~c sub~tlLt(' Ctlld S(·(' lILtk:~. If
hHY~"I1;I( llh Hit"' "i~111 :. ~IE:~I illllt~, tll '\ IIWdl~ 111,11 hIJ~l"I'" :-:;('Ilrili.'~ v~i Ilík:·;!.'I; .'J'
e: t'" tr Ii II;; p~' v..i I h \pJ H"~ c w. n s~'1Iri I i~s (j" H' DC 11 H~ 1 r ;.<11' T, c:~), PII)'pr i\ ;~( h+..~
Ul~lf. .JI..UiL~ a~_\ :r'L.ün~ Ja'i th~tt bjY,~,~.':> ~'('Lr HLj ~L'.' ~(,;nUrÜll~k'd ',\ 1:1J ~...'lL:·:)
~\~lIrifíps, hF:~ f'.·.lIljt ·...f) '1 ~'F':--1Jhj(':'t() IL-n'~;'-;Tu"(jhy ~;1I1'1 I·:, IH':'FTdu¡~
b¡)nk] ~ fthird pJJtksl~" )IEi ~:DY Ix> used by &>llcr f~-=-'r d('}j-\"('fle-S :,n otter ~':-LLLCS
rrJlI~I('li':.'JI"Î V,,'t('lh"',lT JJw ~~.,:,riIL~ 4111.' ~:';IIIIIIII;.df'd. SI,'II'1 \ :".:iLl'.. 1\: ·~·~'.'~n'µdl{··
~uhSI ilClf sO:->('\lr11~ h:-r ~1I)t''' \.. \I hp ¡ilJ ;J;..!.{'1 1-::, S~JJ;.o1 ..~ ril; Hy !f; :-;:i i~.J.y ¡w dPd-
:ngr I:'\n.~;, 't:+ l.t:::: :>1" t:J obt3:n sL1h~.U~':.(e s~(\rl:t~
. _i1.:l.:;.;ua. J(>.o bt W:K'C dllCU 17 l.l.k ()40J.i(.t:) i1 :>~'Jc..: -5,j .J':;'''I..:TJI.~·L )l·:u1ilk51:~~·k·.1-
0' I1h1' ~·r 01."..; I k.1I ;1 r lid fII.å~ 1 ì r Hi 'HI i,.: II.
.. L:t·~.ll;.gt" It) :;:'.:"'I'd un":~1 17 C.ER, r·i4C:~.:.·~d'. if ~.(·Ik·, if. ,.liu.1111 i;.1 ÎJ.!iUII'CH.
9. Sl1bstHntiulI
b) St'lIt'~ Ina). sJ.I:~jt<: to ,1~rt:"t-nu:'nt \,"it_ Jud aC:'ev~uKC' b) t!uvt'r. sllbs-._~lJt:' oL'_t-r ~t>:'llr ,th-',
for ;:UJ~' rur,:La~c.J Se(l1:i.:e~, S'_:ct :;u·:·s;.llullou shaL ':'é' L:~<tf. ;~~ Ll'¡~II~f~' l!'; B~.r~·~: 1.;1 ;:ud)
orh(\r SP~lJr1·ip~ :)nrl rnn(fr-r H: Sr- \1"'1' .-:f '<'lIrh -)11rr i11~r'd ")co"" 'fT r\ :\~-('r "'11h~r' nn1t'ìn -hr
~ ub~titut('-j Sc: lu-i-:Jes 51ull ..=< d::eJn:{, tc '~I~ l-\11 .:'. '_~~S(,j ~)(-: l J 1-::1('S
(hi .¡ ·1r;1ll~Hlii·'H:--. in '\A:}}'rh S~l Pl l'PI;1irl~ ('II:{ll>d~ or P'I"':': :~*,~I SHIJ· i p\ hp r'~rJi?\
(·.xp:~·S5_) a~_ ~.(' Eha: BU:Vl r )_"J;:LlI~( c...:.·..."_n.x.. fGJ I~ LU' PO~( ~ ,.:.,r sui: pa, l.I.2r~;p.·- (J': ~)f (h¡~
?~H,~gr~:A1J lo 11:.1'\'(:' Jgl-,-~~'4..~ ¡.J ..u:d al"~'t'¡.;lt,(: in .hb A~l-.:·~':~_~Tl ~""L·~l1t1.ltÏt.;n b.~ Sdlf.!1 u_
ot}-¡('r SC:-l.lI i:.C'~ f~::'r Pu::-lDS,(d See UL tk·s; ~~r(w id:-{, ho\\'c\:'" t :'_;.1 SUf h ot her Sc:-uri~i('s
~hi:ll h.;r..(' 4' t\lukd Vc:lIK ,:,' J.:-'':.SI etp ~)I toth:' rvhrlüt \·¡.ll1'·· .:f Iln Plllcl"1'it'(·1 S(~rlllill(~
r () r ·y..-J.1 d) It} 2)' Cfr ~ IJ I ; ~ : I n I ~d .
(~. .....('r-r.··'·,I'o:"1 I~"W'.. \,f;~<'r' f~(,pllrrha(,r l'f.I·(·~ní·'-
39
e
e
Appendìx F
1 O. Repr(\S~ntaTions
F;.;¡¡h oj 'RnYfJr :n (t S~I>.J-· -';':f1r~Pllt'i ..uti '.\:}"L4-1, It) ItH-' :þ:.r li';:1 (1) il i, d'~ly ;;l1!"O' i~rt 10
(')I."(':utC' J:1j dC'li\.C'f ~l1i5 /~gl'(',:-:."::(,:".t.:O (1):('1 intc 1r~J}s0.::-tic'~ (J::t::IYlp~i1tcd hc-f('unc.C'l' and
to IKrfonn its 1:,bj~L,n:'n~ _'_l'l'I::'u:1je-r Z\nd 11:'s rL.l\(11 elL r_t'(C~~L,ry tlctiC'l1 to J.lItl--0_·ilt~ such (·x~·
'~;'.;lh.,;.J) '.kl:.u} c,llt. 1.<lr~'>-l'k.lJ·,·'.'; :¡;; it \',iL1·.,~Lg"'~t. _11 ::;udJ Tr,.c~Ju..h)iJj i:::~ IJLJJ~·i~~ll:''';r. iJ
~ ¡? ..~ ,:~.-1 \'~ r¡:hl n:~ j' . lit"- fo..' 11 ct' ~ ') ~.. )f>X hp ,,:·j n cr I·r 1v:. '\'~' "if' I II :,: (t,¡;t .' :-- ~~ :,_h :;n) I ..:) I' 'ì~(t In'1
':~ lIt nHwr lHI\ bl\1I:). é~ ¡'1~:::I LI1 ~I dij( !.:St'<:J prìll(l )édl :ili) Ih4.' I)(T:~.()JJ ~ihLll)K Ihi~
A~ll:'ë::~~Ll un ~I~ tJeluL::; tlul.~ ~:n.IL10TtIkJ l~) l1o.; ::<,1 ~..T)_'~ I.J~~~~L (I";J on '~,~haJf cl' J:~'.' ~tEh
r:t~cI ~!~('>1 )rtnílp.-!I), ~':,I it h;c¡ ()ht~lrf'~ 111)Thnr1ï.lt1,~ )~ .-:f .1ny go\.·('\rn-··...r.-^T11 h~I~'
I':'~;UL=.( 111 (O;HL:clìol1',~.ith this t~xJ(~Jn(:jH ¡ud tJ)(, hJ.'.sJctions h(·r(·und.~r z,n:] slJch ,).th-:
rif.it I)" ;..!n~1I f!"fl fl' ·:t':1 d f-:ffr.: ì111..J (\:. HL-' t':~'-'Clli¡r} l~ ,.L'lin"~" :11 d J::-:d:. rHH' -: .. f H,í:;
Agn".p'·-:'T ;Hld IhF 'Ir;;'I~'v'inlt~ 11~rF'1FIH' v,'il1 n:,' \oÏi·1:¡ P 'HI)' 1;1'...·_ ,:rd'ln"(? "".¡rltJr. h)-
law or _lIl::: a ~'pHl';j.blc· L_, l: OJ a,.j' a~i'~'Í~'n)('~J{ )~ '.vhlCh i: _s \)(;un:J ex ~ y \\h.ch any ,:.,,1 its
",~:~('b dn~' :.illu.'t'..'li. Cll lilt' F'Jllh~~' DJk lUl ~.C,\· ~1é.UI~.J(· jOI1 eUYlT Jl1<J S~:Jh!.~ sLiùl ::.11.'11 IJ~'
,-..1(-'::-r.:cr:l t-:, I'('pf'ft ;)J :_~.r tor(-~":-'ing r('pr~S('n:Jtjons In;.dC' b::-' it
e
11. F.v~n ts of Df'fìll.1t
Ie the :\('-n' U--.':-J Ii) ~::::l.cr hils tü t1Jns:\'1' 0: [h'yeT f¿jl~ ':c nu:\ ::.L5(' Purdk1sed S('(u:~í:~.(~s
t-,pun ,_h~' J}J~}litJbL PU~~'l1,tj( CI~tl'. on ~::LLr (JL:s lo H.'µrll'hJ~.ê or [L:~.'.-,~· Ia:.b lC In:Jl~rt.''r
P1Jrrh;~ Sf'ru"I!Ir-:< urn- the lrp'I·~t1r.I(- f("f,lIrr":-;sc r)~'Tr, ':111) ;~:-~ll:-r (:·r -'~lIy(r f;)11~ TO f:--.;n
ply ','.it P~:l~tgìph'l h..·· ~·.:f, ti\,} 1~lIvf-" h1S, ;tflH ~·11F· blJs'np~s d<l':\ IV)li:'~ 'f; ('O]":1P"Y ',":iTh
Pil~1~r.ctjJJJ ~-, IWI~()f h·: 1'1/1 A(I ·,f ]11~:..h~JI:·,~· ()I,,(,lIr~ wllJa p:,':'".pt·ll c; St".Ic'·· 1.:1' BIJ',::'T, hí; (illY
r?pr~~:,;)nf:1Ttr·,ft n'):~d~ hy ~f-lIpr or p,...yµ.... 'h:illl'1;"t\'f=. -:-çr:...... 1-V'f~'11""?:'- n!'1:nr11IP In ::ny t 'latFI~:d
r':'$fX'Ct v..h:.'.~ 111~,dt..· :If rq:':"Jkd 1..1_ dC:':'l1y.:d (oJ hav.: 'X'('JJ c..Ltdc :1' r('p(,~1X'd; 12r ("in )l'l..(t or
LIJ~:_' ~h311 ¿"dL~H to ÙK ot1)(!' tts ïr.L",b1l1(Y to, or t~ .nLnti:ll1 ::ot to. P':·o·fJ.î11 an\ ct it~ ()bli,.2
;:)tl;-:ns I)~I',~.. nc:'r IC;:-.r- :)1" d'''\''~'~T .~, f)l'':;lIlt'';
(¡ i ) ']1 10.' J:) I L Ii Lilli. i I g p; J " ~ : I'ý, ë' II ~ L P L : ~ (..... , Jo.' ';1' I () II ) 1 J, I '.l ;;' do.'/' " JIo'd .;] I : I" t. ;t ,.. ~ . II
+-S\·f'ni...,..'..1 ¡-'IIIHtL'IFh nro- ,III-'- '::·..·111-·~,.:·~:Þ ;~JI !\d 1:·1 hl...:ÞI\W1(':\.\ d~·b""¡.3 ;-11 F,·.·r ..·1
[)c-f:-tdr :0 _~_¡,':C' O( (urrC'd hC':C"_·..nc.:r .:-md. upc,n the' ('Xt:'l'C~C J:' (:C':'n:è (')\<:1"( iSt:' c f sue 11
i_'PUo1J. LJ)j_' R,:~)u ,'~·I.(l~.· Ua .i_' fl_T ~:.:h:l I rIl'J}~í.J::liU1J hu ~··I.JlltJ.L:. ~lJè.I]1. L iI 11;';) 11l;.1 d~n'dJ\
(~rt·lJn:·){~.l+) 1,;';'1';'.:: i "rf ~d ;llF1y 10 0(01 (p":cqr thi-tl n I"f f·~"F.n Iha th~ ~.n·h~~.?
r.1~; I ¡.: fUI ~W\. Tt;CI'.~< I it: n h.t~ ... 0 1 ~;Õ-=I 0:' ( 111': ~ 1 ~.s or I'? cJ:¡ I~ of S·.- ('1' ~Xµ)·: j ~ (;1 'h.......nH..io(1
ë:,Er( l=~ su(jJ _J¡111~J~~iC~, ,_J)J I~~ (.c't'_lJ>:'(, ;JnrL~jjLd~l',' ~'a1J:::èlEd). '1 he ~'_ûLdef~,ulÜn~
~~'~ITY ~h:ìll tn:.-',...p- lJ'P(r~ TI-II" C·f ·'1'r":"·~(? ot:-ln "'~(f :-It Tn;,(Þ q:'~(~") gf\'l" nctt~r- r:-· thf'
r.r':';t' ¡J-' "~, -ì;-:ny ( ~ Tht-' f·:'\I'"....·:-·«('\ 0':' ~~1:-h ("Irtll~n :l~ p,nn1ptly 1<; rrln"c~h1::-
(b) II :11 ïI'i1!!~.:I i;JI~ II ·.'.IIi{ II tlw th..f(tIJ lif ~ p:1 I~' i~ ,t! filiI; i'::' \:~It:"I, ,Iw 111,,"dt.J~JIJltillt.
. ";'rl y P \t" .... ".'-'S () l' i' d~l n...~( :.: I'¡:h~ P\~I"~ 't'd Iw oT··1 hI} -p "P1 rp:1 I r·· in ,1)1 :)1a' :4t~r;;p' (;,;
cf·,.'js l~:JJ~r~·.p.1. Hì the j('fJu_lJn~ rX1- t~'s 8Lli~~HjO~J5 ir. )U·~'_) _'ran~~':'~j(;l1~ -:c X';:LL':o!)¡;3('
a.l ~\u ':_~I~~'J Sl·C.! :tÍl:ï, "j lhl' ReJ,;ul'c.lJ~~- f-'Ll'l' LK'~~-_()r ~-'IJ _Le JrpurdlJ~': L..'Jk· tJ..:'_u
:nL('d in :v'~o,'j:'J)::-(, \~.'_th ~I,bpê:r¡¡gra~:.h ~al cr :his P~,rZl{F~ph sh~lJ -.hcr::...r>:::n b~~on)c
1f)·cdi;) ·::'.:)J ( tHd P¡:~/,:)-..'Jf'. (i¡) a-1 )('4:nll' Iklo:1 .;1fl(· ~ll(:h '.1\'~' :-l~-:' 01' (:':'~':'P";-:( .-·:.....CI(J:;f
~tt;-JlI}I-J IrL~tllf:llly Itw tlCIK ~f:-tLlll~)g p~H' Y é-ifF1 <-t>p I~c I;;· ¡ht-- ~~~'fgdP unpa1<1
R~puJ( hjso? ~-li~?~ dnd )C~; :Hhi?r alnc ltr:l~ (j'.'..tn~ t)\.- thE? :1ef.)uJUfJg rx·ct~· :lËf2lLn:ler, J.nc,
ILl" :h.:: d,=·tJljlLn~ I::alt\ shaH _nJJ.:~(dl:Jt(.'l·~ ddl'ú," tv dv:' nonÜ..:::a olt.-l)~ par:y any
Pl..1:-~·l1'-_)l:J ~'l.'\.Ui.i'_·::' sub):: I.: l to ~1..1jl TI aL:XllliuH~ UiUI ill lh.! dt'ri.~lLlin~ µJ::-ty's J.:0*~'~
:,.11: n o· ,-'or Tlï-: I
40
:'.-t",I '""\-t-.N' 1!l'Þf.. Mnrí'f 1'~rr·I,,..'I-~:"\3T,....m(fr. "!
e
e
Appendix F
(:- ) ':;d '1';1 nl;.a~' . i"~ j""S J) 'N hic 11 1 h~ Ct;,f:HJ 11 i ; - g p~tl r v is ;'):-1 i q~ a, I) I.\-'~~ . pn n 1.; nd~'
IE':onckfalllling pit: ty of :~:()ynjcnt of 11v· ¿~~n~;tf R(-pllrrhJ~~" Plic(-~ :c~' ;,n ~lIch
'Irjll~~.· io"<" till r1gl1', III If'- r:TlC intp1'f:~1 ;' ;t11<J f"1t i IfllWlli to ¡.; P:ln:tlit~~~J ~""t'llrl1l~~
,c...I1IÞ~¡':'r1 'c', ~I:dl T,-:.n~id1()1)~ :-:.h,) 1 ':F t1~µn)~J In11~f;.J·TP:1 In 1hp niml'~Fr.Llfi·'f p;:ny ;~n.-
t~:..:.· Ü:-t~LLtin~ ::I:tv sh;}ll c..:'U',·,:t :11J ~u(h _-\u-":'__~I~:j ~:'L_Ltic5 (Ç tb,," nond('tt)ul:Jn~:.,ù_T(
(~'I~ : r1v:> n"\JH'Fr.-~ .1li:·C F~',rty f~~'prrj"""'; ;~r i~. "'pÜ'ü~l t~'1 h;'Por PXFT"¡'i-..-1Itf· '~p' .n!'. 1"'Jü~TPd tn
ill ':..h,I:II·'gril;:h ':il:. of Us Pc 1:..g·dP}I, It II i 01 d,,'Llllltg 11:11'1.... .-'.'llht;UI pl'l'.'1 Ltli:.' I:)
L:":' d,!jën.lhl~ 1';Jì·'.\'. 111ë\,-:
:1) ~s t(o 11 Ji1SilCtlOl1S L1 \-:hlCh th~' dC!~Hll:Jn,a2 :<Lty 1~ ù(tjn~ l'5 S([c-r, II,) L·.·Jn(dlc:tcly
:.;dl, in i1 1"'f:~':~'bnin<1 Jrlal~~':\ f:f~r n-·?··.\-:~·~ in ~. f'ornr1H'I1' =-Jlly n:a~:ì Hh :.) Ina'm:~') ;}I
'1"'.. ~"I'irr: cr prkc·, ;t~ the; nondpt;'llllnt~ ~~rfy IIJ;~~ "f~~1Ç,i""Fll-:1y di~f>ln '-'.. \,,f;I(r:HY ;'1 -~
:)]' ;.111 "'U~'dH~:'d ~c';rL,s 'iH::j;°(1 Ie· 'iIF' 'r;Jrh(:'!ICII~ ¡¡net ép¡:ly Ih.' P f)(,:·ò,·d<.,
(hl:11'eoI.u .::1: a~~le~al~ "':J)p~j:j KepuJt'L;,:.Së PTlt'fj ~l1!j an~ olllf.1' JlJlot..nb ':.:'\.\'ln~. t~.~·
Ow rlí'flt1lt1ng p;)rt'l hr'I'fUO^rlí'1' or t -n t·- u~ ~,~, r i1s:"r?rt·~n r-I.~·(t: tn 11(1"' t-:f ;;,('1 tng ,111
:'1;¡ PO":¡:)_: of 5U...'~: J-'lIrc~"_~s("d ~({ w'itJ(':; ')j ~.,(. -:1,: dC:~l.Il~_J).a2 X~lTr' ::rc·.jjt fer su~h
r:n: ¡a~'~L ~:""lll'iU::'~ ill;111 ;1111:>lJ111 (1,~llil II lilt'" pi ìL' !wn-f...· 01 ..111: L1't·~ ;>lti'It·~rJ
fnHrl:i ep'Ip.1~i I~ ~~4'()¿jTd '+~< ":ÞIJI"C·,;.,i o ' "F '11:,~1 1þ..1 ('P'tl'·lo;.;irIG IHI ql>¡~11';)n I":tln
:)j~~_ ~I SOUl\'(" agJtLS: L~;.· ag~j(:g¡.I:: llll!~dkl H,'.".urt'lElsl. l)l!( ~~ ;LleI '.n.\ o".i1:..:]
JllJOl"JJtS ,~,)\."il')s L;"~ Ju: c..:;.!_·~rJLiJ)h -.__'~U' .') h·.!l'~'lJII'_L~-: dl'~~
e
~iJ:1 dS 1c:· ' 1,:lnSí)(tJ~' )~; i1 \~:1u'h t,h..-· d.'f.}l11lJ)~ ',,:}ty I~ ; (·tmg íS 1~II'y·(I. C'\) I '1IIIC:Ii:Hcl'y'
p:...dla.~I", II ( 1\~l·,,,·gJJi;:.1d JllilJ k; :'....'10111\1\-\'1:...· ill it ,,'c;IIUI/',:n:Jdlh r,:h:) (:-..L :"..11
rt p. ') ~~ ~I ¡(' h p-1i'" i ',r p,i r~ ;..1S í ht-J> ni m' iF Ix ¡ 11 i" l' p;; l' y ! It-t} t'P;.::-.nn:-I hh' f ~p.' '1 ":..il 1:-.1';1" -
((JI.~. ~c'c.ai(j(s r K::-pbfC!Ù('nl S('Cul'i .1('$1 of ':1:' ~,):~.1C (, I¡J~~ :)fìc1 ~llnC'1..LI :b ;\l;.~
r\"n_l1a~¡~'i.: Sê;~'1JljU~~ l~~t ~C:;;' IlUI Jt'lh'tn'Ll1x> lJI~-' (h:'lë.uJjll~ µJ:·t~· lu llll :J.x~dl-'~~1U_l
Ing p:-trty ;I~ ···~lIJlrf'rllF'·r,~...ndrr .:".,- (r~, In i-.~ ~·:lf' d1~'.""~- on ,~I(':"'t 11' Ij(1I ()t rt'r.~h:1F.
i ng r.:~·phff~I1}~nt S(~f lI'j (Íp~. '1: '.-.'t-. <>.,.. J:'C 1 C h~'i\ ~.. pu J'C 1l:1~?( ~p .~I.In:··n1t·n 1 Set' lJ Iii .~·,s
11 t' ~'I¡( ~ III~"::-,.fcr lHI ~lIdl (Lt!t-", 1>!:t'1i t-;I hor ~ h.r.IIt':L-tIl~' "" '()~r Í/,r':d ~,.'lJf'l;-'. t) lll-
rl\l~ ~ I 1'F- ~pr,1 j., :.~ in f. (~tl031' q 1)0 t 'Hi i) It t 1'0 ~'V' ;;; lIt' h ; I ~H)1'1 ¡'F-:
-..JL LCj:j 0 L11~-r,\'i~~' 1;11.>\ ~u,-,tJ i:J .'\n n~')\ 1, Ill'.' )J,L l j~~ J<" k_Jl)'''' kù~H.·· dlJd ¡¡gl·..T(~ I J Ja I ~:]I .Ill
S(>( II!'II j .:....... ~ I :1>. f~:-- tlO ;;, ny T··~H·I;. ;;:\i'l () Ii hr· n~tJ: )( I'~· ;fliH' ¡, 1 "If r:' F r.-~ 1'¥ IprJ In ':1':)'-(\~ " 1/,:><1
nurket, ii.~ -n ";(' .lh~:·IH·:· I)f.. h:'1I(,1;' ly I ,:y:'g-:1/:P() ~¡:'11-:·'· f:,- pY..'~ \;1' bid I), off:' qUt:
¡diet;:s LI! .llfi S"{'IJ' í > 11.,,' IIt:flLl:L.,lli:h ;',1 y IlldY l,....ldb1r·...III1t.·· 'joU;....llt.·rl'{' ill ils
~'.:+:' dl~·~-:·e.i()[J J!)U 13; ë1.. prkf:1'S. lJid~ JLd uJ1µ]'~ ~luJlIJò:' di::'lf.'Hllh IfJ lugt'll1~r \'.iih
~t(('nlf'(i I.::.c :'!110 (~(Mt tc tte (I).:t~n: c::.nth'JY ~o In~rk('t pra(tj(e \'/ith r0~rx·(t ~c :~:: reI
c'ùnt 5-.:-( ur ttics).
(~) A~(; '''~ill~~~:''kJls'n which II~ .:h...hulrll'b p~tll~' j~ ;~:"ilÖ I)'" )~.:~/~- .~ dd,nll1 1)~ p~:1 I)'
shdl bE:' I:d)_~=(; L_= rOlJd~faLLtjrl~ pJ_ t~, f'~:.'r ,illY ,=,X(t-jS 0:' tl1t'JrLt? fxuJ :ur cleHf.t-d
r.1tCj) 1""/ rt'l{) ~~orK1óY":-tl1l-n? P,ìrTY f~·r lrrl~~'~1T)?nr~"V'1Jr'T1?~ I~".·;'r· T'-r Rprl'I"'h;)~~ ¡:r1r·~
1'0:" thc· l'u~':- h.:;~d S<Xlt:'iti('~ JCFl¡:-.c:-(, thcrch\' ;)n(} for ~H)!· Jrn:"_1tr~ r: Jyabl(' . :') tl:('
Ü.·;~J"I !:! ~.';JI'I}' u(kl ¡";;JI(.!:!I~ll;: ;; IIi,n:,f :)' '..III",ùis¡·lw \·III:lt'l.
n.1 ~cr p I'P():'-~ of ft'iô\ 1~1f ag··;.ph I I hfo I?pf' ,fln:--.~ :).' (o:a to l' pacta h :H\<.;;'H'I;i··I) rr'PII"~IH
.11 1\.'~rX{ (cr\'~h,('h rh_' d('l"u.£ing :;.L·t\ _~ ~:( ling J~ ~u\<.r :;haIJ:,m inu'(\a,>J.' :11..0'/(' .IK
~ . \('rr'-'-rl ~.:'1 1I,'fI'.. ·vl.: ('C' f~("ptlr"ha<,c ,A'f.¡'f'...nr·,·
41
e
e
Appendix F
£1.11....oIJl.l ~. f -iIH'. R~J;u,:ln~.t;;)..Ür.' fur ~w It 111~;t'.·'.0 .Jt-:tt'llnjll':'",J (f~ ..J lilt-; d"11;-: u' L~
P\prrl'~ ().. ,r1H"r,',p,1 ?wJl"d~ t-,y P-f" nO~'r1t:Jt:~11lt1nt~ rXt"'~: ,~·I f )p r-:pïon ffo1f'1'lp<1 !"()'n <nh-
~jr~grJ_.)h ía~ of LJ3 l~rag_'j!h
(I;: "--tv" (J'?-'luIT'nf:? ~~,:)rry ,IFrl r.r '~l~lf' r~) rl)p: fF':ncrLY; -¡'~ ~-!;H'-'j for :0 tt·~ ::)·-':-.:IIY ~y nil
1'~;t';"TulJp I"'g;~l nr :' :h~" P~~~]F"~A" il fl],,;;.:o(~ I~~ 'hp '1''''lvh~f;:lllinG p;;l'ly n (()'ni-'di:p)
'.\ 1111 '~.IJ 'I~' r~ suIt ~I:' rill r',' IJI ,:f )({(lul1. :Ii~ eb .:Ig'.·~ JIJ ..Ill "11Jo.:UI 1l:qu;,:!lt; I.'" nY'1
:i~d ]rJ-n!! ;·tllli--:-,\, (-!xp¡.:.n\¡:, :rcJ (i··TlI-·i:·S()~ <I 1:1' þjll'¡-Tillg ill 0 ··~pJ:.wPtIlFni ILt-~:1{lirnh
d:-:d ::'~~t('ring lnt: 01' tCl1n~~:Jtïr:g hedge- tr~:c~~~.cticns ~n (onn~·(tio:1 ·.~:ith 0: a~ L. r(~L11-: j~
(1:] C\,,,-~. I uf D,,~.·è.tIl1: dId (.ii) dll\' c.:lh..~ b~s, dè:LJJd~'-'; tu~1 ur ~''-qR'rl~'" d.Jd:¡j~ dJ l~i .1-; '~!J
-µ"I(ltT'b frot' llìF ':~U'JII!';"'T;'> oj ;':1} ~\'~l1t ¡:f DH;;((I II', rr.<"I~~,:·7:~ c-: 'Ir;:l1:;¡~dl':n.
(h) 1.: thE- éX::E'nt I:enn.tt~d b'~' ::t;:.plic,)blt 13'.", ~LE de:3ultL1~ p3r::-),: s.l~:.L je liel:.l::, ~o :~J":- üc'n-
c:r-: ':I-i"~ ~~,~ny try' tnt....·r·~f I~n ;1ny :1rnOllnr::. .~,W"·~, r.y t'lC <i."'t':1111-1n€, p1r-y ht:If'lmC~r
~':( n) tIE: da~t' the .~h'J,)Jti.~g Ix- rty l:-:,~'fOl'."..~S j}h)C 1'0.' surh 2J))OU.~ts hf·H~.Jt)(t'! until ;;....':-
a.j)(~)I_Lt5 z..r(' i¡) pad in fur l:'I ~h( (:':::·al.l1tU)~ IKjr:-y ~_ (Irl ~Jtlsfi~d in fur tv th(· ('x('n:is(
d t" ()!:It·f~ultíllgp;'1''I~·:' rigllh h~I~'IIIt..·."T Ir '~n-':~ 0" :1: '.:-4lJ ~.':1~(11:1~ -'~t' 111t'.dt-Ji1lJI ·
'ng ",n'l) I:t rtu-',nndp :~:¡I ;'l£~ ·~:H·I:\· IInd'-'t : ;·)h·, r~T;tt~r1",11 11 (h" ~h::1I h~'H:-1 r:;lfJ ....]1;::1 \1
-.ll::'~ ~~:.:.'att-'r of t11:' ~jrj(L~ l·b:/..· L)l UK' rcl:'-::'Lt :lrJ.lS3rti:::.n or the P,U.K" Ratt'.
Ii; ·Th·:, )rJ1)~kf:'H¡]tir.g party ~h;dl h;w(-, in ;-;,:klJt.on t:) i:~ right'. ~~en:lI:}r:t('r: ;;:ny r.chts e·rb[>J'
\A.T...t: ..'.:¡íl¿lhl,' Ie, .1 IL'dcl ,I ')' olin a~I(':'JI}(,11 0 dL:plr¡,hk 1;}'.y
e
12, Sing J l~ l\.g.r(,l~ln l' n t
131J';'~':- dull S(..'LCJ ;'1:':' ku()v..l·~·c. .;l .~ lllt. Jt Ie. lJ J\ r ~:l n..l' ...xJ ll'.':·,~·: 1) k' J: ~ d '.\. iL f~'lJ ler in L' l Jf~}
'rlj) n ~:~ t 1.-: n h~r"'''1 JJF]rr t r, '~or~ id,:-,r';lr1,:-: n of' :1 n ~I 1 n f'('11;H)c~ IJ r:~t') t}1r ':';K t t 11;: t, ?ll1na nS;-tfli':-' ns
1'~rHj!):t~J cmt;rlln...] :-:il·~I~.'J hllsinp~s ,} '(} c.::,J)ILtI'1I:t rl?brio:s'-ip ..··d lu\'f" hPtFn JlI~1Jµ 111
'.'c::,j(¡r:">1lÌcll 0.' !-,:(-~.t. :ÞIIJ~ An :.Irdil .gh, "'~lll ,If PIIYt:1 ~fJd S':'".I,:,,:· ;tgr':'"l:':,) :i:. () ~.,:-,dYI(J :d :A
11~ ()··:,llt~;r-'nr,c. In rpc,r~'''- 0'" P1~h Tr:H'~-1rrl"'\n hp!·P1JT),1r-t'. In<i -h1t ;1 (jP11 II T l,b n'lf~ r*I""()r-
Ll'::.nC(' Cof J.-.y such o'digJ.ÜO_J5 S~l.)lJ '~ons:i:ut.: ~¡ ,:'efJLùt t~ it: in rt~p,xt 01 J.Il'lr.:ll1SJ.cti(1)s
L{TUj¡l~kJ. (Ii: 1..,1. {'(-I~'L \.'IIJI\'III ~Lcd. lli. ',',,:lilk'd 10 ~',.'l 0.'"' d.:HJlI~ alJJ (Jp~Ay pl'~'p,~JI~1 .t~lt,.1;1,
I\':f'rH ill r'fo'~~~t'l n! ;.:ny rr,;.r~;·1íII)' ;tg:-tl1:-..1 ,~hï~~;;;t inrl~ (]'.~.ini..~ II) Iht-" )) in "~IÞFr'1 (:f ;r'~· "Ih~r
·l1'l:-.h(¡(tiCfl~ j-:'ruuldn (ìnd (ii1J 1.'::11 -·'ëY·::!1I~. ~i('L'Þ('rk~ ])H} 0111(') 'LL~fCl~ IJ1,)dr I;-~' 'lIIH'l
·Jf theIlI it! 1 ~s:;t¡_'l 01 an~ T:.'~Hl~~it' ,~OL ~haJ IJ'.~ d~'tJnlt!U ;.0 __AVi;:' t.:t'ulluadt· j¡1 (~'Il:;i::J....ral~Ulj ..,;.J
p':lyrú('nt S. dC'll".'C'rlC's ané c th('r t:':\nÜc>rs .n rC'spC'c t c r :u~y c.the-:' ~l7.n~)C~ot:~ ht7:cundr.: r. )nd
the- oblif:\:1ûns to t11::-t:{C' llJìj' surh r)L.~.:rù('nb, je-liYC'riC's ~.n(_ ethef t:-.):::st'C'rs n1~Y bl:' ctp~:lie-:t
::l .W." 1)1 '.\J( II OI:.U dJ JrJ _ (Ilt\J
13.Notjc('s and Othcr CtHIlJUunÎratjuns
;\ nr '),. c1 :-.11 n:-"'1ff':<. ~t1T~lrr-r r.< .1c"-(!:-In~s or .~HH"'f ((Þn1F Ilrd ~;lt1on~ t)pr~'~ nc:--" 'II~\ :~.~ p.; '··....r
.~;y a pany ~.:: rt.f· oth(·J by IHJiI f;1csLni:c t:·k·gr;).:h In,~~5(:nger 01 cth('n'''.~· t) th(· ,).-.1:1 ::~s
~I)i:':( ih·d ill ;\1111<':'\ I tWI\:'()~ Of ~( ~'.·:(II It; ~U( II jJ~lrl~, ;-11 dl) () lIt'!" pl~JI.·t·: ~"P\t·irtt;d ,11,( Ilf:ti·.:c ~Jf
"-:~nt~~ d' ~f.-:rt..~:>-., hplP¡.IÙ=r 1~"O-1:',,¡:; "'. 'F .:tlt~1_ ~.II nnt1:'?,. ¡ FIII:.1TFts ;;wi T"":1J~"'I;w. I:HPIHI-
eel' nL:',~'Jc :::::\cc C r:dly. f~) be :on:'~rr~1:( pre rrnt I): jn writ1::.s;, o~· ':-:y ether c~:.:nn:ltni:- ')LO!~ J~
~p('.( iLc-d jn th~' j::':::':'c:::Ln;2 ~('lJKn(('.
42
::-:'-r,tí,-t-.r.f I!l~. \..; :m~r 1'~1··.·,·'J-;r::' \3-f.~m(fr.:)
e
e
Appendìx F
14. Entire Agr~elneJ1t: Sp\'erabilitv
T¡'i, ~l!I¡.:.~rl'Pl '.Inl ~IITH":f',~d,;.s ;1")' ¡..:\hl1r,,: "i~r"PF··I,;..Jlds b¡.1η\,\;-'PTl It;: T:;U'I'+-'''\ :":1' :fluÌ'1~'. ;"~Tl-
C':':\I [:-rn1~ ~:::d :onditi0n~ :'ûr rC'pttf(h~s:' tra!~s.J.(tic,n~. Each ¡:rO\':510n and ;j,g~'C'mE'11t i....:rcir:
shaJ 1>:' tJ('J.tco:l :15 5cparat(':lcd _ndqx·n:.(·n: troLL :L:~I cth('f p'Oyis_o_; ell agE·(·Jnc·¡)t "Jc._·~¡n
.j]¡J :,Lal. :...(.' ':·JJI~'JU.'d:....L:'l!"..tv~·L"l),,~Il .jjrl~ IJlt.' 1..Hlulh.;n·..'üLiHh ;.;1' :JLv ::ïurtI olLu IH'~'\isj~)JJ '''':1
;:.\g·'P~""n,:.'·' t
15.NufI-i1s,;iglli1hilit.y: TtJl"fllirtfJliuI'
(J) '"Ìì(' ".~l:ts and übli,¡(QLOrS 0:' ~~~':' ~J~'t.j(·s unj('r this J~J(~Jn('j)t and lInd:·" :::url.
. 1-"111:-.1',: ¡<HI "~1;111' (II b.... ì1S"igll~'L .'Y r"iIIJ"~ F-trly '"1111"111 I~' J;·i:. '.,·rlkll :·'.!lI:';·C" :.r till"
O,ltPT p;.'I~1 :tn~1 ;UI) \lwh :t:\l..,ir.ur'H.T' \\.iIl1l:-1I Ih~ ]U;i'l wrillH' C....·11:'-~TI :,' Ih.... :.IIþ.)f'
1:;¿111V 51"1;:'11 t:~, HuH ~:lJ)d v:jj S ~,b.lc' t to U"'~' to"('~(,,J1JK. tl1i~ .\~L·(·;lL;: t ~L.d an)·
-=-·të.tU~.J(· .i(jlJ~ ~.:~L L-e :.;iudiIJg U~)'~.;'¡l ~J)~: ~Ü1JU L:u:'~" iu tlh! lH.'!ldÏl ~·l UlI: pJJ (¡C::i ~nj H1CÎl
f;:\tJW0t".'t^> :,t1~(r~,OI, ~níJ ~~,Iç;nl\ Thi<;; :'r.rr·(·f(IP1)f t))1Y hf' f(..·~m·n"'lifl(j :Yy p1tI",('f' p.11t',:
upon gi\'L: g w ~·it~(':~) no~i(:- ~o -::hc otLc-r. c\:(C'p~ th.:n this :\gr~('n)('~: t shJJ I ro~with~ t::u";dL:g
~d:( II 1J'..'li\·j~, ···.~ lld II ~ll;p'J',,~4I1>h 1(: aJi~ ' l"dISìl:'IÌ\)JI~ IIL' ! :I"I:-.Iì:ll·_~illg
(b' Sub-:'.¿:ct.~r;Jph I'a: of L-jS f'íT:J.g.t aph 1 J ~~'_)Il 11(;( -:',1":( Ldc J F~\rtv f:::..c·; ~l~~i:2]"¡~ ng, (:;:)r~
inK ..:r '~'lb:;;':'''~~K\ dt'~LnLl \'.ilh i;::.1l Jl wI) r~l:·t (,J i.~ I1JlU"l~lllJ jL', :::lUJI 1~,lrJbk' lU i. UUÙ(':'
'::I;'} 17. g 1':-1 ~~.h 11 hf\r(\{)'"
e
1 ti. l~ U \' PI'II ¡rig 1. H \'\t
Ttj~ Ag.~er(:~]I-~ sJnL .)€ gC\~:'ned by (h? t,·.\S :)1 'h~ ~t~it? üf \EW Y:)rk ...':H!l(lJ!. ~j\'i:':þ:. t.?~·:P('
to tt.: fOl1t1ic: :): J:n": ;)Ln:' _ ~lls thf:H'Or.
17.. No \~taiver~.. etc.
Nt) ~xpr."':'" (11 irnT,lipd '.":i~,;pri·. ;.m\ F·..f->JlI () r'F!;¡l1lt "1.\ +-,illwT JU1· '. :--11;t I CO'),1Ì11! ...:I;~ ·.·.:¡ ·,+-'1
cf J.ny c th('~- EVC':1t of n('f~.ull J.nd 1':0 C'x:':':~SC' o! 011)" I'C'rnC'dy hC'r,:,un(:,cr by ~rj\' !J1Ti s-.h:tll
....~l)~.~lJ'.lIL l. v:t..h...·J ...:f 1.:' n~Lt h...~ ',:'t((:Jd:,í.. .:c~' ..;llJ(.'J F~lJl'~~"':.~ :cn. ".JlJCL f\J(. ......H.jrl(..ë..Ji~)JlI.})"
·\~:::-1j\";..t of ;'1I1Y pro\' sinn ~;r ,hl~ Agr;..>i"I)Fnt ~:,!d n·:~ ;'() )Y~IH l:y (111)' J)a ' ~, tl a dp~':'H: IH'f hFn;;...
r~"'::lrn ~h;~1. hf-> o?··~~·tln.· u~JJÞ:J~.s ..":d nul ~lJIh s:iL ¡'~'f) ·".):liH,~ ;ü1:1 d·."I)' ~x~ 11.t-õti ~)~ I)'dh of
tllf.; par~_t-s ht'H~tO. VVHhout Illnita:ion :).) 3.;\' of ::'.1: ~(:;lt:.i2C'Jn~ L.t- tajh~J~ ((, ~Ì\ r.:' J nor.l(:: pl.J"
::-ua:ll lC r~H~gIJph ·1(~d 1'-:1' .~(-~.: h~.I~of v,Hll1ct ,-U~:S.._lUL~ a ...·..ë.iY+!l of dT~ : i~LI t·. '~-,O ~;.~ .1. í.:_
1:,Trr d.- T~.
1 R. US{I uf EHlpl(1Y(~{~ P1HtI A"~PI"
{,::.tì _f" ~.s~:'~~ c-f Ji1 ("lnp_oyc: b,,:·~.(fi~ p,,~,n ~Lll)('l: ·.C d)~ 1~10\·_SJon ::..1 Hl(' ~r:.p.C)\'l<· _~,-·til'('rnuL
=:lC'''':'lllt' 5{·~·-~¡r:ly :\~ l 0.' ~ 91 ,1 C ERISA:, w." iL I(,'HC.;"".~ [,.; L'\',.~,~,u IJ~ lillJ..'1 pall'· ."lTlt..
:[hc- '''f'lan 17rty".1 .n :::.lransZ'.cticlf) the· Pl2tn P:::.rty ~h::tll sc !:J~Jy thc· ~,th-:,: ~~.}:·ty prì,)r t:1
(1('" t';:II~,+:<O .'I'h("· Pli)j) Pan)' sh.:)1l I"cpl,'S(n'J) '.0':1 In;? to Ih,..· 011'1:1 p4l11~ . !,11' .
r(-1n~d:'i()TI:Jo~~ "'01 (,~HI~U\tJlt= d ]~nt'IUI""{J 1(111~,~r :ort Ir.d....r -'RI~A ~t- IS olt H'.'v'S!-
f.:'XErúpt dle-:'2f:':J:"n. and the O:.-_E?[ Tx~ny n1JY p:":)(&?~c1 :n :-ej~n( ¡.; :.':E-l"'êC,I) b'.·.T. ~._:~LJ not bfJ
H'qu: 1'('.(1 sc t:) pro:ecd
I . J . '.'.pH'''''' '1.:1" ! ,)!,~) . '-'1;.<;.r:-r ¡. '-.f'! ,r( ~:o,,:- :\ ~('c"m'
43
e
e
Appendix F
H:<' S.¡ ~.H·: 1o CJJ~ liHi ~~;.Ir.fU·t- '.If ;UI;JML·t~J(-.p.j (è'; ~).-IIJ.:' :)i1rct~',t¡;tl: (.11J~' j.~' 'IJ(1II~('l tL.11I
~I-,~II p"';'.(;IP{; i:rry 11 S~lIf1111-nt(r~C, :.-- IY1~ n~rri~')~~r: tr. R1Y~" 'r~ rn·~·"r I'P~¡:::"'T ;'N;)it);I~
~Lldit.::( $t~Ln-J:'nt 0: its fL~nc ,~ll c:lndi tiün anj its ~::.o~t r2c....-.nt s ~,b5(\ lIeJJ: ~..nJlJdj~·j
~ l.a'.~:.J)·,~..1 ',..'1' i.~ fiJhil It idJ ~.:..;1 Idi LOI J
(,,) ,:,y þ.)'dprÎriG in"~:1 I'T"t,;tlfinn :'11-" n I'·' 111" I~r:\.~r;~p" . \~I1H' ~.lnr !'P dFþ.)·n~.-] (i) II',
"t'¡:n'~'lIt 10 Buy," 11141 ~ill~"'" Uw ~I~II: cf S~··li~'·"·~ Lllt~~1 ~lJlI1 filli:llJ:·.C!1 ~IClI·.'¡¡·'ls ·lLIl.· :~IS
h;""'T\ no TH:.1 "'1";.:1 ;1d'd~nf-' dLH1f,f-' in S~ ¡"'r... IìTI~~H.·';'¡ c.rd-li:tTl \',hìch SFIIf-'r 1I:1"i ":'11 :h"i-
dcsC'd to [¡U:~"('r; ¡!.1)(::, (i() to ;)gl1:':' t:1 p~·:.'ick Guy:r v:ith fl.1£1.·1(' Jlt(j:~j ;.1.nj lL~:1lt(Ü~C\.i
~1.iJJ~.:H:.-') :..: ib fL.è.lJwi¡¡] t :"ludnh..J1 ê.~,) I h,..")' tin _~S\.1t.'(.J.::-u luJl~ il~.1 I~ d :'cLlI i: :1:', :'Iul
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1 Y. IIIIp-fll.
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a:s th~~ L·.·~~··: ur a:S~i.!l~ sul.;j'-'tl L_' ~Udl Tri..Jl~J..-LiOIl ~·u~j.j n:ll~~U ~u·~·_: t~;:LlJLi·"';lJ ÍlJaµplh:a
hie:'
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20.Disclosure R~Ié1tjng to Cprrain Jì(\d(\ral Prot~f.tjons
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44
vpr('f1)')(':' \)!h. \I;-:r(" 1'~(PIlf('h;I~'- /"'f.'-'(,1n:'t"t. I
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Appendix F
laìu-n IJI~ J''".~!tiulI LJc,tf tilt" TU,' ,~H;II~ uf,Lt ~urili'::"'~ LI\t')Llf ::IUIt'l ti'..'JI .6u I .;t 1~:17()
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(b', in ÙK' caS(' üf 'j r 3l15.aC nc.n~ Lì \".11.ch ¿_'"," c ç f tb:. 0;:n:"(5 is .) ~o\r':'L_ln';lH '5C'( ijrlth:~ brok¿:r
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\hlic'JU trp<t: I 1..1.-: Ln} ~L:·nt-t.,"'·.J,r·:·? r"" J(', ~:~ Jpplk)UI?-
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45
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Appendix G
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TEXAS GOVERNMENT CODE
CHAPTER 2256. PUBLIC FUNDS INVESTMENT
SUBCHAPTER A. AUTHORIZED INYEST~'ENTS FOR GOVERNMENTAL ENTITIES
Sec. 2256.001. SHORT TITLE.
This chapter may be cited as the Public Funds In':estment Act.
Amended by Acts 1995. 74th leg., ch 402. Sec. 1, eff Sept 1 1995
Sec. 2266.002. DEFINITIONS.
In this chapter:
(1) "Bond proceeds" means the proceeds from the sale of bonds, notes,
and other obligations issued by an entity, and reserves and funds
Illaintained by an entity for debt service purposes.
(2) "Book 1Jalue" nìeans the original acqllls,ï1lon cost of an investment piLlS
or minus the accrued amortization or accretion.
(3) "Funds" means public funds In the custody of a state agency or local
government that:
(Ai are not required by lavl to be deposited in U,e state trea8ury; and
(Bj tile investing enti1y has authority to in\íest.
(4) "Institution of higher education" has the rneaning assigned by Section
61.003. Education Code.
(5) "'nvesting entity" and "entity" mea n an entity subject to this chapter and
described by Sec1ion 2256.003.
(6) ''Investment pool" means an entity created under this code to invest
public funds jointly on behalf of the entities that participate in the pool and
46
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,A.ppendix G
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~vhose investment objectives in order of pnority are:
(A) preser.'ation and safety of plincipal~
( B) liquidity; and
(C) yield.
(ï) "Local government" means a municipality, a county. a school distrîct, a
district or authority created under Section 52(b)(1) or (2), Article III. or Section
59, Article XVI, Texas Constitution: a fresh 'Nater supply district, a hospital
district, and any political subdivision, authority, public corporation, body
politic. or instrumentality of the State of Texas. and any nonprofit corporation
acting on bel1alf of any or those entities.
(8) "Market value" means the current face Dr par '''alue of an investment
multiplied by the net selling price of the security as quoted by a recogni2ed
market pricing source quoted on the 'laluation date.
(9) "Pooled fund group" means an internally created fund of an investing
entity in wt1ich one or rnore institutional accounts of tt1e investing entity are
ìn·~ested.
(10) "Qualified representative" means a person vlho holds a position v~íth a
business organization, \Nho is authorized to act on behalf of the business
organization, and 'Nho is one of the follo~'ing:
(A.ì for a business orga nization doing business tha1 is regulated by or
registered \vith a securities commlssiDn, a person V'lho IS registered
under the rules of the National Association of Securities Dedlers:
(Bj for a state or federal bank, a savings bank~ or a state or federal
47
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Appendix G
credit union. a member of the loan committee for the bank or branch
of the bank 01- a person authorized by corporate resolution to act on
behalf of a nd bind the banking institution:
(C) for an Investment pool, the person authorized by the elected
official or boa rd \'~ith authority to administer the activities of the
investment pool to sign the \vritten instrument on behalf of the
investment pool; or
(0) for an investment management firm registered under the
Investment Ad...·isersAcl of 1940 (15 U.S.C. Section 80b-1 et seq.) or,
if not subject to registration under that Act registered 'tJith the State
Securities Board, a person 'Nho is an officer or principal of the
investment managemen1 firm.
(11) "School district" means a public school district.
(12) "Separately Invested asser means an account or fund of a state agency
or local governnlent that is not invested in a pooled fund group
(13) "State agency" means an office, department. commiSSion, board. or
other agency that is part of any branch of state government. an institution of
higher education, and any nonprofit corporation acting on behalf of any of
those entities.
Arnended by Acts 1995, ì4th Leg, ch 402, Sec_ 1, eff. Sep11,1995. Acts 1997J 75th
Leg.. ch. 1421 f Sec. 1, eft. Sept. 1 : 1997, Acts 1999, 76th Leg., ch. 1454, Sec. 1, eff. Sept.
1 . 1999.
Sec. 2256.003. AUTHORITY TO INVEST FUNDS; ENTITIES SUBJECT TO THIS
48
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Appendíx G
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CHAPTER.
(a) Each governing body of the follov~ing entities may purchase, sell, and invest its
funds and funds under its control in investments authorized under this subchapter In
colTlpliance VJith investment policies approved by the governing body and according
to the standard of care prescribed by Section 2256.006:
(1) a local government:
(2) a state agency'.
(3) a nonprofit corporation acting on behalf of a local government or a state
agency I or
(4) an investment pool acting on behalf of t"NO or more local governments,
state agencies} or a combination of those entities.
(b) In the exercise of its ~)'.'·:ers under Subsection (a), the governing body of an
investing entity nlay contract with an investment ma nagement firm registered under
the tnv€strnent Advisers Act of 1940 (15 U.S.C. Section 80b-1 et seq.) or \Nith the
State Securities Board to provide for the investment and management of its public
funds or other funds under its control. A contract made under authority of this
subsection may not be for a term longer than t\vo yea rs. A reneV'Jal or extension of
the contract must be made by the governing body of the investing entity by order.
ordina nee" or resolution
(c) This chapter does not prohibit an in~lesting entity or investment officer from
using the entity's employees or the services of a contractor of the entity to aid the
investment officer in the execution of the officer's duties under this chapter.
Amended by Acts 1995, 74th Leg., ch. 402. Sec. 1, eft. Sept. 1,1995: Act5 1999. 76th
49
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Appendix G
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Leg.. ch. 1454, Sec. 2. eff. Sept. 1.1999.
Sec. 2256.004. APPLICABiliTY.
(a) This subchapter does not apply to:
(1) a public retirement systeln as defined by Section 802001
(2') state fLlnds invested as au1horized by Section 404.024;
(3) an ínstitlJtion of higher education having total endo'Nmen1s of at least
$95 million in book. value on May 1, 1995.
(4) funds invested by the Veterans' land Board as authorized by Chapter
161,162, or 164, Natural Resources Code'
(5) registry funds deposited v"ith the county or district clerk under Chapter
117, Local Go'.¡ernment Code: or
(6) a deferred compensation plan U1at qualifies under either Section 401 (k)
or 457 of the Internal Revenue Code of 1986 (26 U.S.C. Section 1 et seq.,).
as arnended
(b) This subchapter does not apply to an in\lestment donated to an in\lestlng entity
for a particular purpose or under terms of use specified by the donor.
Amended by Acts 1995, ï4th Leg. ch, 402, See 1, efr. Sep1.1, 1995: Acts 1997, 75th
Leg.. en. 505. Sec. 24. eft. Sept. 1 .1997: Acts 1997. 75th Leg., ch. 1421. Sec. 2. eff. Sept.
1 , 199ì; Acts 1999. ï6th Leg., ch. 62. Sec. 8.21, eff. Sept 1 .1999; Acts 1999, 76th leg..
ch. 1454, Sec. 3, eff. Sept. 1 . 1999.
Sec. 2256.005. INVESTMENT POLICIES; INVESTMENT STRATEGIES; INVESTMENT
OFFICER.
(a) The governing body of an investing entity shall adopt by rule. order, ordinance.
50
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Appendix G
or resolu1ion. as appropriate. a \"Jritten investment policy regarding the investment of
its funds and funds under its control
(b) The Investment policies must:
('1) be \"Iritte n:
(2) primarily emphasize safety of principal and liquidity.
(3) address investment diversification. yield. and maturity and the quality and
capa bility of investment management; and
(4) include:
(Aj a list of the types of authorized investments in vihich the investing
entity's funds rnay be invested:
(B) the maXlmllm allo'wable s1ated maturity of any indlvtdLlal
in'Jestmenl owned by the entity;
(C) for pooled fund groups, the maximum dollar-'Neigh1ed average
nlaturity allowed based on the stated maturity date for the portfolio:
(0) rnett,ods to monitor the ma rket price or inveslrnents acquired "'lith
pUblic funds; and
(E) a requirement for set11ement of all transactions, except in'Jestment
pool funds and mutual funds, on a delivery versus payment basis.
(C) The in'.~estment policies nlay provide that bIds for certificates of deposit be
Sülicited
(1) orally;
(2) in "'Ilriting:
(3) elec.tronically; or
51
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Appendix G
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(4:) in any combination of those methods.
(d) As an integral part of an in'lestrnent policy, the governing body shall adopt a
separate \'vritten investment strategy for each of the funds or group of funds under
its control. Each investment strategy must describe the investment objectives Tor
the particular fund using 1he following priorities in order of irTlportance:
(1) understanding of the sUitability of the investnlent to 1he financial
requiren1ents of the entity:
(2) preservation and safety of pnncipal,
(3) liqu idity:
(4) rnarketability of the investment if the nee(j arises to liquidate the
in'Jestment before matLlfity.
(5) diversification of the investment por1folio; and
(6) yield.
(e) The governing body of an inves11ng en1rt,;' shall revle,;v its investment policy and
investrnenl strategies not less Ulan annually The gúverning body shall adopt a
'arit1en instrument by rule, order. ordinance. or resolutíon stating that it has reviewed
the in'.'estment policy and inves1ment strategies and that the '/ritten instrument so
adopted shall record any changes made to either the investment policy or
investment strategies.
U) Each investing entity shall designate, by rule, order ordinance. or resolution, as
appropriate, one or more officers or employees of the state agency, local
government. or investment pool as investment officer to be responsible for the
investrnent of rts funds consistent \'lith the investrnent policy adop1ed by the entit)'. If
52
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.A.ppendix G
the governing body of an investing entity has contracted \'vith another in'"esting entrty
to invest its funds! the investment officer of the other in....esting entity is considered to
be the investment officer of the first investing entity for purposes of this chapter.
.t\uthority granted to a person to inve5t an entity's funds is effective until rescinded
by the investing entity, un1il the expiration of the officer's term or the termination of
the person's employment by the investIng entity. or If an investment management
firm, until the expiration of the contract \vith the investing entity In the
administration of the duties of an investment officer. the person designated as
investment officer shall exercise the judgment and care. under pre'Ja ¡ling
circurnstances, thai a prudent pel"Son \.'vould exercise in the rnanagement of the
person's own affairs, but the governing body of the investing entity retains Llltimate
responsibility as fiduciaries of the assets of the entity. Unless authorized by law a
person nlay not deposit, '1IIthdra'wv, transfer or manage in any other manner the
funds of the investing entity.
(g) Subsection (0 does not apply to a s1ate agency, local governrnent, or in'Jestrnent
pool for yt¡hich an officer of the entÎty IS aS51gned by la\'~ the fllnctìon of investing ìts
funds.
Text or subsection (hO) as amended by Acts 1997, 75th Leg. ch. 685, Sec. 1
(h) An offIcer or employee of a commission created under Chapter 391, Local
GO'Jemrllent Code, is ineligible to be an investment officer for the cornrnission under
Subsection (f.) if the officer or employee IS an Investment officer designated under
Subsection (f') for another local government.
Text of subsection (tl) as amended by Acts 199ì, 75th Leg.. ch. 1421, Sec. 3
53
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.A.ppendix G
(h) An officer or employee of a commissíon created under Chapter 391. Local
Govemrnent Code, is ineligible to be designated as an inves1Jnent officer under
Subsection (f) for any investing en1ity other than for that commission.
(i) An inves1men1 officer of an entity Vvho has a personal business relationship with a
business organization offering to engage in an investment transaction \'~ith the entity
shall file a statement disclosing that personal business Interest. An investment
officer 'Nho is related v{ithin the second degree by affinity or consanguinity, as
determined under Chapter 5ì3~ to an individual seeking to sell an Investment to the
investment offícer's entity shall file a statement disclosing that relationship. A
statement required under th¡s subsection rnust be filed with the Texas Ethics
Commission and the governing body of the entity. For pLlrposes of this sLlbsection,
an investment officer has a personal business relationship \vith a business
organization if:
(1:) the investment officer owns 1 0 percent or more of the voting stock or
shares of the business organization or owns $5,000 or rnore of the fair
market value of the business organization;
(2) funds received by the investment officer from the business orga nization
exceed 10 percent of the investment officer's gross income for the previous
year; or
(3) the investrnent officer has acquired from the business organization during
the previous year investments vvith a book value of $2.500 or more for the
personal account of the investment officer.
O} The governing body of an investing entity (nay specify in its investment policy
54
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Appendix G
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that any investment authorized by this chapter is not suitable.
(.k) A \!'.'ritten copy of the investnlen1 policy shall be presented to any person offering
to engage in an Investment transac.tion v/,th an investing entity or to an investment
management firm under contract ,,¡ith an investing en1ity to invest or manage 1he
entity's investnlent portfolio. For purposes of this subsection, a business
organization includes investment pools and an investment management firm under
contract v,ith an investing entity to invest or manage the entity's investment portfolio.
Nothing in this subsection relieves the investing entity of the responsibility for
monitoring the investments made by the investing entity to de1ermine that they are in
cOlnpliance v.:ith the investment policy. T~'e qualified representative of the business
organization offering to engage in an Investment transaction 'Nith an investing entity
shall execute a '.Nritten instrument in a form acceptable to the investing entity and
the business organiza1ion substa ntiall)' to the effect that the business orga nization
has:
(1) received and revievved the investrnent poJicy or the entity~ and
(2) acknowledged that the business organization has implemented
reasonable procedures and controls in an effort to preclude investment
transactions conducted between the entity and the organization that are not
authorized by the entity's investment policy, e)(cept to the extent that this
authorization is dependent on an analysis of the makeup of the entity's entire
portfolio or requires an Interpretation of subjective in'~estment standards.
(I) The in~Jestment officer of an entity may no1 acquire or other-vise obtain any
auU10rized Inveshnent described in the investment policy of the investing entity frorn
55
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Appendìx G
a person who has not delivered to the entity the instrument required by SLlbsection
(k).
(m) An Investing entity other than a state agenc~;, in COnjllnctlon \\lith its annual
financial audit s.hall perform a compliance audit of management controls on
investrnents and adherence to the entity's established investment policies.
(n) Except as provided by Subsection CO). at least once every tv~o years a state
agency shall arrange for a compliance audit of management con1rols on investments
and adherence to the agenc~/s established in·.,.es1ment policies. The compliance
audit shall be performed by the agency's internal auditor or by a private auditor
employed in the manner provided by Section 321.020. Not later than January 1 of
each even-numbered yea r a state agency sha II report the results of the most recent
audil perfonned under this subsection 10 the stale auditor Subject to a risk
assessment and to the legislative audit committee's approval of including a revievoJ
by the state auditor in the audit plan under Section 321 ,013. the state auditor nlay
reviev.' infornlation provided under this section If revt€v..' by the state auditor is
appro'led by the legislatì'~e audit committee, the state auditor may. based on ìts
reviev..'. require a state agency to also report to the state auditor other information
the state auditor determines necessa ry to assess complia nee viith la~/s and policies
applica ble to state agency Investments. A report under this subsection shall be
prepared in a manner the state auditor prescribes
(0) The audit requirements of Subsection (n) do not apply to assets of a state
agency that are invested by the comptroller under Section 404.024
Arnended by Acts 1995: 74tt, Leg.. ct,. 402, See, 1, eft. Sept. 1, , 995: Acts 1997, 75th
56
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,A.ppendix G
Leg" ch. 685. Sec. 1, eft. Sept. 1 , 1997: Þ.cts 1997, 75th Leg. I ch, 1421 , Sec. 3, eff. Sept.
1.1997; Acts 1999, 76th Leg., ch, 1454. See 4. err. Sept. 1,1999; Acts 2003, 78th Leg.,
ch. ì85, Sec. 41,eff. Sept. 1, 2003.
Sec. 2256.006. STANDARD OF CARE.
(a) Investments shall be made with Judgment and care, under pre,.,ailing
circumstances. that a person of prudence. discretion. and intelligence 'lIQuid
exercise in the management of the perS<Jn's o\vn affairs, not for speculation. but for
Investment. considering the probable safety of capitat and the probable income to be
derh¡ed Investment of funds shall be governed by the following investment
objectives, in order of priority:
(1) preservation and safety of príncipal:
(2) liquidity~ and
e
(3) yield.
(b) In delerrnining 'Nhether an investrnen1 officer has exercised prLJdence ~'.'ith
respect to an investment decisiont the determination shall be made taking into
consideration:
(1) the in'.¡estment of all funds, or funds under the enti1{s control, O'ier which
the officer had responsibility rather than a consideration as to the prudence of
a single in'Jes.tment; and
(2) v/hether the inv€s1ment decision \,vas consistent v"ith the writ1en
investment policy of the entity.
Amended by Acts 1995. 74th Leg", ch 402. Sec. 1, eff. Sept. 1. 1995
Sec. 2266.007. INVESTMENT TRAINING; STATE AGENCY BOARD MEMBERS AND
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,Appendix G
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OFFICERS.
(a) Each member of the governing boa rd of a state agency and its investment officer
shall attend at least one training session relating to the person's responsibilities
under this chapter within six nl0nths aner taking office or asslJnling duties
(b) The Texas Higher Education Coordinating Board shall provide the training under
this section
(c) Training under this section must include education in investment controls,
security risks. strategy risks. market risks. diversification of investment portfolio, and
cOITlplia nee ','Jith this chapter
(d) An investment offic.er shall attend a training session not less than once in a t-NO-
year period and may recei'.'e training from any independent source a pproved by the
governing body of the state agency_ The investment officer shall prepare a report
on this subcha pter and deliver the report to the governing body of the state agency
not later than the 180th day after the last day of each regular session of the
legislature.
Amended by Acts 1995. 74th Leg., ch_ 402, Sec. 1, eft. Sept 1.1995: Acts 1997. 75th
Leg.: ch 73, Sec. 1, eft May 9. 1997~ Acts 1997. 75th Leg., ch. 1421, See 4. eff Sept. 1.
1997: Acts 1999. 76th Leg.. ch. 1454. Sec. 5. eft. Sept. 1 . 1999.
Sec. 2258.008. INVESTMENT TRAINING: LOCAL GOVERNMENTS.
(a) Except as provided by Subsections (b) and (e). the treasurer. the chief financíal
officer if the treasurer is not the chief financial officer. and the investrnent 'officer of a
local government sha II:
(1) attend at least one training session from an independent source
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.A.ppendix G
approved by the governing body of the local government or a destgna1ed
investment comrnittee advising the investment officer as pro'Jided for in the
in'iestment policy of the local government and containing at least 10 hours of
instruction relating to the treasurer's or officer's responsibilities under this
subchapter \'~ithin 12 months after taking office or assuming duties. and
(2) except as provided by Subsections (b) and (e.). attend an investment
training session not less than once in a t\~o-year period and receive not less
than 10 hours of instruction relating to in'~estment responsIbilities under this
subchapter from an independent source approved by the governing body of
the local goV'ernrllen1 or a designated in\iestrnent comrnittee advising 111e
in'"estment officer as provided for In the investment pollc.y of the local
government
(b) An In'/esting entity created under authority of Section 52(b), Article ilL or Section
59, Artide XVL Texas Constitution. that has contracted vVlth an Investment
managernent firrn under Section 2256.003(b) and has fevier ttìan fi'Je full-time
employees or an in'"esting entIty that has contracted with ano1her Investing entity to
invest 1he entity's funds may satisfy the training requirement pro\'¡ded by Subsection
(a)(2) by having an officer of the governing body attend four hours of appropriate
instruction in a tvvo-year period. The treasurer or chief financial officer of an
investing entity created under a uthority of Section 52(b), Article II I or Section 59,
Article X'JI, Texas Constitution, and that has fevler than five fLIII-time employees is
not required to attend training required by this section unless the person is also the
investrnent officer of the entity.
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Appendìx G
(c) Training under this section must include education in investment controls,
security ñsks, strategy risks, rnarket risks, diversifica1ion of investrnent portfolio, and
c.ompllance ',~ith this chapter.
(d) Not later 1han December 31 each year. each individua1. association. business.
organization, governnlental entity: or other person that provides training under this
sec1ion shall report to the comptroller a list of the governmental entities forv~hich the
person provided required training under this section during that ca lendar year An
individuars reporting requirements under this subsection are satisfied by a report of
the indi~¡idual's employer or the sponsoring or organizing entity of a training program
or serninar
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(e) This section does not apply to a district governed by Chapter 36 or 49, \JJater
Code.
Amended b~' Acts 1995: 74th Leg., ch. 402, Sec. 1, eft. Sept 171995: Acts '1997, 75th
Leg.. en. '1421. Sec. 5. eft. Sept. 1 , 1997: Acts 1999. 76th Leg., ch. 1454. Sec. 6. eft. Sept.
1 , 1999 Acts 2001 J 77th leg., ch 69 Sec, 4. eft. May 14, 2001.
Sec. 2266.009. AUTHORIZED INVESTMENTS: OBLIGATIONS OF. OR GUARANTEED
BY GOVERNMENTAL ENTITIES.
(a) Except as provided by Subsection (b). 1he follov:ing are authorized investments
under this subchapter
(1) obligations. including letters of credit. of the United States or ìts agencies
and instrurnentê3lities:
(2) direct obligations of this state or its agencies and instrumentalities:
(3) collateralized mortgage obligations directly issued by a federal agency or
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Appendix G
instrumentality of the United States. the underlying security for \vhich is
guaranteed by an agency or inslrurnentality of the United Sætes~
(4) other obligations, the principal and interest of \Nhich a re unconditionally
guaranteed or insured by. or backed by the full faith and credit of. this state
or the United S1ates or their respective agencies and instrumentalities:
(5) obligations of states. agencies. counties. cities. and other polttical
subdivisions of a ny state rated as to investment quality by a nationally
recognized in'vestment rating firm not less than A or its equi'y'alent~ and
(6) bonds issued. assumed~ or guara nteed by the State of Israel.
(b) The follo\lVing are not authorized investrnents under this section·
(1) obligations ,^,hose payment represents the cOLlpon payments on the
outsta nding principal ba la nce of the underlying mortgage-backed security
collateral and pays no principaL
(2) obligations v'¡hose payment represents the principal stream of cash flovv
frorn Ule underlying Inortgage-backed security collateral and bears no
interest;
(3) colla1eralìzed morigage obligations that have a stated final ma1urity date
of greater than 10 years; and
(4) collateralized mortgage obligations the Interest rate of which is
determined by an inde)( that adjusts opposite to the changes in a market
index.
Amended by Acts 1995, 74th Leg I ch 402, See 1. eff Sep1. 1, 1995: .6.ds 1999. 76th
Leg,~ ctl.1454~ Sec. 7, eft. Sept. 1. 1999, Acts2001. 7ìth Leg., ct1. 558~ Sec.1,eff, Sept.
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1 I 2001 .
Sec. 2256.010. AUTHORIZED INVESTMENTS: CERTIFICATES OF DEPOSIT AND
SHARE CERTIFICATES.
(a) A certificate of deposit or share certific.ate is an authorized in',,'estment under this
subchapter if the certificate is issued by a depository institution that has its ma In
office or a bænch office In this state and is
(1) guaranteed or insured by the Federal Deposit Insurance Corporation or
its successor or the National Credit Union Share Insurance Fund or its
successor.
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(2) secured by obligations that are described by Section 2256.009(a).
including rnortgage backed securities directly issued by a federal agency or
instrumentality that have a market value of not less than the pnnc.ìpa I amOllnt
of the certificates, but excluding those mortgage backed securities of the
nature described by Section 2256.009(b); or
(3) secured in any other manner and amount provided by la~v for deposits of
the inves1ing entity.
(b) In addition to the authority to invest funds in certificates of deposit under
Subsection (a), an investment in certificates of deposit made in accordance \i;i1h the
following conditions is an authorized investment under this subchapter.
(1) the funds are invested by an investing entity through a depository
institution that has its main office or a branch office in this state and that is
selected by the investing entity:
(2) the depository institution selected by the in\iesting entity under
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Appendix G
Subdivision (1 ) arra nges for the deposit of the funds in certificates of deposit
in one or rnore federally insured depository institutions. wherever located, for
the account of the investing entity;
(3) the full amount of the principal and accrued interes.t of each of 1he
certificates or deposit is insured by the United States or an instr umenta lity of
the United States:
(4) the depo&itory institution selected by the investing entity under
Subdivision (1) acts as custodian for the Investing entity with respect to the
certificates of deposit issued for the account of the investing entity: and
(5) at the sarne tirne that the funds are deposited and the cer1ifìc.ates of
deposit are issued for the account of the investing entity, the depository
institution selected by the in'_'esting entity under Subdivision (1) receives an
amount of deposits from customers of other federally insured deposjtory
institutions. 'ty'herever located. that IS equal to or greater than the amount of
the funds invested by tt1€ investing entity thrOlJgt1 the depository institution
selected under Subdivision (1').
Amended by Acts 1995, 74th Leg, ch 32. Sec. 1, eft. April 28, 1995: Acts 1995, ï4th Leg.,
ch. 402, Sec, 1, eft. Sept. 1, 1 995~ Acts 1997. 75th Leg, ch. 1421. Sec. 6, err. Sept. 1,
1997; Acts 2005, 79th Leg., ch. 128~ Sec. " eff. Sept. 1 2005.
Sec. 2256.011. AUTHORIZED INVESTMENTS: REPURCHASE AGREEMENTS.
(a) A fully colla1eralized repurchase agreement is an authorized investment under
this subchapter if the repurchase agreement
(1) has a defined terminatIon date~
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Appendix G
(2) ìs secured by obligations described by Sectìon 2256.009(a)(1); and
(3) requires the securities being purchased by the entity 10 be pledged to the
entity, held in the entity's name ~ and deposited at the time the investment is
made \'Vith the entity or with a third party selected and approved by the entity:
and
(4) is placed through a prima ry government securities dea ler. as defined by
the Federal Reser.!e, or a financial institution doing business in this state.
(b) In this section, "repurchase agreement" means a simultaneous agreemen1 to
buy. hold for a specified time, and sell back at a future date obligations described by
Section 2256.009(a)(1). a1 a market value at the 1ilne the funds are disbursed of not
less than the principal amount of the funds disbursed. The term includes a din~'?t
security repurchase agreement and a reverse security repurchase agreement
(C') Not\"/ithstanding any other la':!, the term of any reverse security repurchase
agreement may not exceed 90 da~'s after the date the reverse security repurchase
agreernent is delivered.
(d) Money received by an entity under the terms or a reverse security repurchase
agreement shall be used to acquire additional authorized investments, but the term
of the authorized investments acquired must mature no11ater than the expiration
date stated in the reverse security repurchase agreement.
Arllended by Ac1s 1995. 74th leg._ eh 4Ò2, Sec. 1, eff Sept. 1. 1995
Sec. 2256.0115. AUTHORIZED INVESTMENTS: SECURITIES LENDING PROGRAM.
(a) A securities lending program is an authorized investment under this subchap1er
if it meets the conditions provided by this section.
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(b) To qualify as an authorized ìnves1ment under this subchapter:
(1) the value of securities loaned under" the prograrn must be not less than
100 percent collateralized. including accrLled income;
(2) a loan made under the program must a lIov~ for termination at a ny time:
(3) a loan made under the program must be secured by
(A) pledged securrties described by Section 2256.009;
(8) pledged irrevocable letters of credit issued by a bank that is:
(i) organized and existing under the la\l"ls of the United States
ora ny other state: and
(ii) con1inuously rated by at least one nationally recognized
in'"estment rating firm at not less than A or its eqllivalerrt; or
(C) cash invested in accordance \vith Section:
(I) 2256.009;
(Ii) 2256.0"13;
(iii) 2256 014 or
(Îv) 2256.016,
(4) the terms of a loan made under the program must require that the
securities being held as collateral be"
(A) pledged to the investing entity;
(B"} held in the investing entity's narTle. and
(C) deposited at the time the investment is made \~ith the entity or
v/ith a third party selected by or approved by the investing entity:
(5") a loan rnade under tt1e program rnust be placed tt1rough:
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Appendix G
(A) a prìmary government securities dealer. as defined by 5 C·.F.R.
Section 6801.1 02(f), as that regula1ion existed on Septernber 1. 2003~
or
(8) a financial institution doing business, in this state; and
(6) an agreement to lend securities thai is executed under this section must
have a term of one year or less.
Added by ~A.cts 2003: ï8th Leg I ch. 1227 Sec_ 1 Jeff. Sept 1, 2003
See.. 2256.012.. AUTHORIZED INVESTMENTS: BANKER-S ACCEPTANCES.
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A bankers' acceptance is an authorized investment under 1his subchap1er if the
bankers' acceptance:
(1) has a stated maturity of 270 days or fevJer from the date of its issuance:
(2) will be, in accordance "lith its tenns. liquidated in full al rllaturity.
(3) is eligible for colla1eral for borrovving from a F ederat Reserve Bank: and
(4) is accepted by a bank organized and existing under the la\:~'s of the
United States or any state, if the short-term obligations of the bank1 or of a
bank holding company of'ltvhích the bank is the larges1 subsidíar/. are rated
not less tha n Ä-1 or P-1 or an equivalent rating by at least one nationally
recognized credit rating agency.
Amended by Acts 1995 74th Leg.. ch 402, Sec. 1, eff Sept 1. 1995.
Sec. 2256.013.. AUTHORIZED INVESTMENTS: COMMERCIAL PAPER.
Cornrnercial paper is an authorized investrTlent under this subchapter if 1he
commercial paper:
(1) has a stated maturity of 270 days or fev/er from the date of its issuance:
66
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Appendix G
and
(2) is rated not less than A-1 or P-1 or an equivalent rating by at least
(A) t~¡O nationally recognized credit rating agenc.ies; or
(6) one nationally recognized credit rating agency and is fully secured
by an irrevocable let1er of credit issued by a bank organized and
existing under the lav~s of the United States or any state.
Amended by Ac1s 1995: 74th Leg., ch 402. Sec. 1, eff Sept 1: 1995
See.. 2256.014. AUTHORIZED INVESTMENTS: MUTUAL FUNDS.
.
(a) A no-load money market mutual fund is an authorized investment under this
subchapter if the mutual fund:
(1) is registered '~Jith a nd regulated by the Securities and Exchange
Cornmission,
(2) provides the investing entity ~vlth a prospectus and other information
required by the Securities Exchange .Act of 1934 (15 US.C Section 78a et
seq.) or the Investment Company Act of 1940 (15 U.S.C. Section 80a-1 et
seq. ):
(3) has a dollar-y:eighted a....erage stated maturity of 90 days or fewer. and
(4.) includes in its investment objectives the maintena nee of a sta ble net
asset value of $1 for each sha re_
(b) In addition to a no-load money market mutual fund permitted as an authorized
investment in Subsection (a), a no-load mutual fund is an authorized investment
under this subchapter if the mutual fund.
(1) is registered \vrth the SecuritIes and Exchange Commission;
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.Appendix G
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(2) has an average v¡eighted maturity of less tha n two years:
(3) is in\'ested exclusively in obligations approved by this subd1apler.
(4) IS continuol/sly rated as to investment qLtality by at least one nationally
recognized Investment rating firm 01 not less than AAA or its equivalent: and
(5) conforms to the requirements set rorth in Sections 2256.016(b) and (c)
relating to the eligibility of investment poolS to receive a nd invest funds of
investing entities.
(C'} An entity is not au1horized by this section to.
(1) invest in the aggregate more than 15 percent of its monthly average fund
balanc.e. excluding bond proceeds and resel\/es and other funds held for debt
serVice, in mutllal funds desGribed in SLlbsectlon (b)~
(2) invest any portion of bond proceeds, reserves and funds held for debt
service, in mutt/al funds described in Subsection (b.); or
(3:) Invest Its funds or funds under its. control, Including bond proceeds and
reserJes and other flJnds held for debt service, in anyone Jnutual fund
described in Subsection (a) or (b) in an amount that exceeds 10 percen1 of
the total assets of the mlJtual fund
Amended by Acts 1995, 74th Leg., ch. 402. See 1. eft. Sept. 1,1995. Acts 199ì, 75th
Leg. ~ ch. 1421, Sec. 7, eft. Sept. 1 : 1997: Acts'1 999, 76th Leg., ch. 1454, Sec. 8. eft. Sept.
1 , 1999.
Sec. 2256.015. AUTHORIZED INVESTMENTS: GUARANTEED INVESTMENT
CONTRACTS.
(a) A guaranteed investment contract is an authorized in'vestrnent for bond
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Appendix G
proceeds under thìs subchapter ìf the guaranteed investment contract
(1) has a defined tennination date~
(2) is secured by obligations described b)' Section 2256.009(a}(1). exc.luding
those obligations described by Section 2256.009(b), In an amount at least
equal to the arnount of bond proceeds in~ested under the contract: and
(3) is pledged to the entity a nd deposited vvi1h the entity or \Nith a third party
selected and approved by the entity.
(b) Bond proceeds~ other than bond proceeds representing reserves and funds
maintained for debt ser:ìce purposes. may not be invested under this subchapter in
a guara nteed investrnent contract vtlith a term of longer than five years frorn the date
of iSSLlanc.e or the bonds.
(c) To be eligible as an authorized investment:
(1) the go\'ernlng body of the entIty must specifically authorize guaranteed
investment contracts as an eligible investment in the order, ordinance, or
resolution alJttlorizing the issua nee of bonds.
(2) the entity must receIve bids from at least three separate providers v¡ith no
material financial interest in the bonds from ~/hich proceeds v,,'ere receìved:
(3) the entity must purchase the highest yielding guaranteed investment
contract for 'Nhich a qualifying bid is receIved:
(4) the price of the guaranteed investment contract rnust take into account
the reasonably expected drav'/do\".'n schedule for the bond proceeds to be
in'"ested: and
(5") the provider rnust certify the administrative costs reasonably expected to
69
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.A.ppendix G
be paid to third parties in connection v~ith the gllara nteed investment
co ntra ct
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Amended by Acts 1995: 74th Leg., ch. 402. Sec. 1. eft. Sept 1,1995: Ac.ts '199ìþ 75th
Leg.. ch. 1421, Sec. 8. eft. Sept. 1,1997: Acts 1999, 76th Leg.. ch. 1454, Sec. 9.10, eft.
Sept. 1 J 1999.
Sec. 2266.016. AUTHORIZED INVESTMENTS: INVESTMENT POOLS.
(a) An entity may invest its funds and funds under its control through an eligible
Investment pool if the governing body of the entity by rule. order, ordinance. or
resolulionþ as appropriate. au1horizes investment in the par1icular pooL An
Investment pool shall invest the funds It receives from entities in authorized
investments pennitted by this subchapter.
(b) To be eligible to receive funds frorn and invest funds on behalf of an entity under
this chapter. an investment POOl must furnish to the Investment officer or other
authorized representative of1he entity an offering circular or other siJnila r disclosure
instrument that contains, at a mlnimLlm, the follo'.~lng information:
(1.> the types of investments in v~hlch money is allovlI'ed to be invested;
(2) the maximum a....erage dollar-weighted maturity a lIovied, based on the
stated maturity date. of the pool:
(3) the ma)(imum stated maturity date any investment security \i¡ithin the
portfolio has;
(4) the objectives of the pool:
(5) the size of the pool~
(6) ihe names of the members of ihe advisory board of the pool and 1he
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Appendix G
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dates theír terms e>epire:
(7) the cus10dian bank that 'Nill safekeep the pool's assets;
(8) whether the Intent of the pool IS to ma tntain a net asset value of one
dollar and the risk of market price fluctua1lon:
(9) whether the only source of payrnent is the assets of the pool at market
value or vihether there is a secondary source of payment. such as insurance
or guaran1ees, and a description of the secondary source of paY"lent:
(10) the name and address of the independent auditor of the pool:
(11) the requirements to be satisfied for an entíty to deposit funds in and
\/vithdr-a'N funds frarn the pool and any deadlines or other operating policies
required for the entity to invest funds In a nd vJithdra\.'~ funds from the pool~
and
(12) the perfornlance history of the pooL including yield, a'lierage dollar-
~veighted nlaturitles, and expense ratios.
(c) To rnaintain eligibility to receive funds from and invest funds on behalf of an
entity under thIs chapter. an ïnvestment pool must furnish to the ìn'iestment officer
or other auU10rized representative of the entity:
(1) investment transaction confirmations; and
(2:) a monthly report that contains, at a minimum the following information:
(Ai the types and percentage breakdov~n of securities in \vhìch 1he
pool is invested;
(B) the cun-ent average dollar-\ItJeighted maturity, based on the stated
rnaturity date, of the pool;
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Appendix G
(C) the current percentage of 1he poors portfolio ín investments that
have stated rTlaturities of rnore Iha n one year;
(0) the book \'alue versus the market value of the pool's portfolio,
using amortized cost va luation;
(Ej the size of the pool;
(F) the number of pa rtidpa nts in the pool:
(G) the custodian bank that is safekeeping the assets of the pool;
(H) a listing of daily transaction activity of lhe enlity participating in the
pool;
(I) the yield and e)(pense ratio of the pool~
(J) the portfolio managers of the pool, and
(K) any changes or addenda to the offering circular
(d) An entity b", contract may delegate to an in'ves1ment pool the authority to hold
legal title as custodian of investments purchased VJith its local funds.
(e) In this section: "yield" shall be calculated in accordance \~ítt, regulations
gO'oIerning Ihe registration of open-end management Investment companies under
the Investment Company Act of 1940, as promulgated from time to time by the
federal Securities and Exchange Commission.
(f) To be eligible to receive funds from and Invest funds on behalf of an entity under
this chapter a public funds investment pool created to function as a rnoney market
mutual fund mLlst mark its portfolio to market daily, and~ to the extent reasonably
possible, stabilize at a $1 net asset value If the ratio of the market '.!alue of the
portfolio divided by the book va lue of the portfolio is less U1an 0.995 or greater than
72
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Appendix G
1.005. portfolio holdings shall be sold as necessary to maintain the ratio bet'Neen
0.995 and 1 .005
(g) To be eligible to receive funds from and invest funds on behalf of an entity under
this chapter, a public funds Investment pool must have an advisory board
composed
(1) equally of participants In the pool and other persons who do not have a
business relationship 'Nith the pool and are qualified to ad\lise the pooL for a
public funds investment pool created under Chapter ì91 and managed by a
state agency: or
(2) of participants in the pool and other persons V'/ho do not l1ave a business
relationship '~'Vlth the pool and are qualified to advise the pool, for other
investment pools.
(h) To nlaintain eligIbility to receive funds from and Invest funds on behalf of an
entity under this chapter, an investment pool must be contlnuousl~' rated no tO~'Jer
than A.AA or AAA-rn or at a n equivalent rating by at least one nationally recogni2ed
rating ser~'¡ce.
Amended by Acts 1995 74th Leg., ch. 402, Sec. 1, eff. Sept 1, 1995: Acts 1997. 75th
Leg. ch. 1421, Sec. 9, eft. Sept. 1 199ï
Sec. 2256.017. EXISTING INVESTMENTS.
An en1rty is not required to liquidate investments that \.vere authorized investments
at the time of purchase
Added by Ac1s 1995, ï4th Leg, ch. 76, Sec. 5.46(a), eff. Sept 1. 1995. Acts 1995, 74th
Leg. en. 402, Sec. 1. eff. Sept. 1,1995 Amended by Acts 1997, 75th Leg., ch. 1421, Seç.
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10, eff. Sept. 1. 1997.
Sec. 2256.019. RA TING OF CERTAIN INVESTMENT POOLS.
A public funds investn,ent pool must be continuously rated no lo~ver than AAA or
AAA-rn or at an equivalent rating by a11east one nationally recognized rating service
or no lo\ver than investment grade by at least one nationally recognized rating
ser~ice \vith a weighted average maturity no greater than go days.
Added by Ac1s 1995, 74th Leg.. ch. 402, Sec. 1. err. Sept. 1. 1995. Amended by Acts
1997. 75th Leg.. ch. 1421 , Sec. 11. eft. Sept. 1. 1997.
Sec. 2256..020. AUTHORIZED INVESTMENTS: INSTITUTIONS OF HIGHER
EDUCA TION.
In addition to the authorized Investments permit1ed by this subcha pter. an institution
of higher education may purchase. sell, and invest its funds and funds under its
control in the follo\ving:
(1) cash n')anagement and fixed income funds sponsored by organïzations
exelnpt froln federal incolTl€ taxation under Section 501 (f). Internal Revenue
Code of 1986 (26 U.S.C. Section 501 (f»):
(2) negotiable certificates of deposit issued by a bank that has a certificate of
deposit rating of at least 1 or the equiYôlent by a nationally recognized credit
rating agency or that is associated \vith a holding conipany having a
commercial paper rating of a11east Ä-1, P-1. orthe equivalent by a nationally
recognized credit rating agency~ and
(3) corporate bonds) debentures, or similar debt obligations rated by a
nationally recognized investment rating firm in one of the tv~o highest long-
74
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Appendix G
term rating categories, v/ithollt regard to gradations \'Víthín those categories.
Added by Acts 1995, 74111 Leg., ch. 402, Sec. 1. eff. Sept 1 1995.
Sec. 2256.0201. AUTHORIZED INVESTMENTS: MUNICIPAL UTILITY.
(a) A Inunicipality that OVJns a rnLJnicipal electric utility that is engaged in tile
distribution and sale of electric energy or natural gas to the pUblic may enter into a
hedgíng contract and related security and insurance agreements in relation to fuel
oil. natural gas, and electric energy to protec1 against loss due to price fluctuations.
A hedging transaction must comply wi1h the regulations of the Commodity Futures
Trading COITlmission and 1he Securities and Excha nge Cornrnission. If there is a
conflict betvveen the municipal charter of the nlunicipality and this cha pter, this
cha pier preva i Is
(b) A payment by a rnunicipally o\¡vned elec1ric or gas utility under a hedging
contract or relaled agreement in relation to fuel supplies or fuel resen/es is a fUel
expense, and the utility Inay credit any arnounts it receives under the eüntract or
agreement aga ins1 fuel expenses.
(c) The governing body of a municipally oy.,·ned electric or gas utility or the body
'ves1ed v/ith rXPNer to manage and operate the municipally o\'vned electric or gas
utility may set policy rega rding hedging transactions.
(d) In this section, "hedging" means the buying and selling of fuel oil, natural gas.
and electric energy futures or options or slmila r contracts on those commodity
futures as a protection against loss due to price fluctuation
Added by Acts 1999, ï6th Leg, ch. 405, Sec. 48, eff. Sept 1 0 1999
Sec. 2266.0206. AUTHORIZED INVESTMENTS; DECOMMISSIONING TRUST.
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(a) In this section:
(1) ItDecornrnissionìng trust" means a trust created 10 provide the Nuclear
Regulatory Commission a SSlI ra nee that funds v~,1I be available for
decommissioning purposes as required under 10 C.F.R. Part 50 or other
similar regulation.
(2) '"Funds" includes any money held in a decommissioning trust regardless
ofv~~hether the money is considered to be public funds under this subchapter.
(b) In addition to other investments authorized under this subchapteL a municipality
that OVins a municipal electric utility that is engaged in the distribution and sale of
electric energy or natural gas to the public Inay invest funds held in a
decommissioning trust in ~ny Investment authorized by Subtitle B. Title 9, Property
Code.
Added by Acts 2005! 79th Leg.] ch. 121, Sec. '1 ~ eft. Sept. 1: 2005.
Sec. 2256.021. EFFECT OF LOSS OF REQUIRED RATING.
An investment that requires a minimum rating under this subchapter does not
qualify as an authorized investment during the period the investment does not have
the minimum rating. An entity shall take all prudent measures that are consistent
"~ith its Investment policy to lïquidate a n investment that does not have 1he minimum
rati ng
Added by Acts 1995, ï4th Leg., ch. 402, Sec. '1, eft. Sept. 1: 1995.
See.. 2256.022. EXPANSION OF INVESTMENT AUTHORITY.
Expansion of investment authority granted by this chapter shall require a risk
assessment by the state auditor or performed at the direction of the state auditor.
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Appendix G
subject to the legislative audit committee's approval of including the revie\^I in 1he
audit plan under Section 321.013
Added by Ac.1s 1995, 74th Leg., ch. 402, Sec. 1, eff. Sept. 1, 1995. Amended by Acts
2003. 78th Leg.. ch. 785. Sec, 42, eft. Sept. 1. 2003.
Sec. 2256.023. INTERNAL MANAGEMENT REPORTS.
(a) Not less than quarterly the investment officer shall prepare and submìt to 1he
gO'~erning body or the entity a vl'ritten report of investment tra nsactions for all funds
covered by thIs cha pter for the preceding reporting period.
(b) The report rnust:
(1) describe In de1al11he Investment position of the entity on the date of 1he
report;
(2) be prepared jointly by all in'tieslnlent officers of the entity:
(3) be signed by each Investment officer of the en1tty:
(4) contain a surnrnary staternent. prepaled in compliance \oVith generally
accepted accollnting principles, of each pooled fund group that states the:
(Ai beginning nlarket va lue for the reporting period:
(8) additions and changes to the market value during the period~
(C) ending market value for the period: and
(0) fully accrued interest for the reporting period:
(5) state the book value and market value of each separately invested asset
at the beginning and end of the reJ,X>rting period by the type of asset and flJnd
type invested,
(6) state the maturity date of each separately invested asset that has a
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Appendix G
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maturity date:
(7) slate the account or fund or pooled group fund in the state agency or
local government for which each individuat ïnvestment \~as acqllired; and
(8) state the compliance of the investment portfolio of the state agency or
local government as it relates to:
(A) the investment strategy expressed in the agency's or local
go'~;ernn'ent's investment policy: and
(6;. relevant provisions of this chapter.
(c) The report shall be presented not less than quarterly to the governing body and
the chief executive office, of the entity within a reasonable tì.T1e after the end of 1he
period.
(d) If an entity invests in other than money market 111utual funds, ìnveslment pools
or accounts offered by Its depository bank in the forn, of certificates of deposit or
money market accoun1s or s.inlilar accounts. the reports prepared by the Investment
officers under this section shall be fonnally reviewed at least annually by an
Independent auditor. and the result of the revie~'J shaH be reported to the governing
body by that auditor
Added by Ac1s 1995. 74th Leg., ch. 402, Sec. 1 err. Sept. 1. 1995. Amended by Acts
1997, 75th Leg., ch. 142", Sec. 12, eft. Sept. 1. 1997.
See.. 2256.024.. SUBCHAPTER CUMULATIVE..
(a) The authority granted by this subchapter is in addition to that granted by other
la\"!. Except as provided by Subsection (b). this subchapter does not·
(1) prohíblt an in\lestment specifically allthorízed by other law; or
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Appendix G
(2.) authorize an investment specifica lIy prohibi1ed by other law.
(.b) E)(cept Y¡ith respect to those investing entities described in Subsection (c). a
security described in Section 2256.009(b) is not an authorized in',,'estment for a state
agency, a local government. or another Investing entity, nohvithstandlng any other
provision of this chapter or other la',", to the contrary
(c) Mortgage pass-through certificates and individual mortgage loans that may
constitute an investment described in Section 2256.009(b) are authori2ed
investments vvith respect to the housing bond programs operated by:
(1) the T e)(as Department of Housing and Community Affairs or a nonprofit
corporation created to act on its behatr,
(2) an entity created under Chapter 392. Loca I Government Code~ or
(3) an entity created under Chapter 394 Local Government Code.
Added by Acts 1995! ï4th Leg. ch. 402, Sec. '1 p eft. Sept 1. 1995.
Sec. 2256.026. SELECTION OF AUTHORIZED BROKERS.
The governing body of an entity sLlbJec.t to this subchapter or the designated
investment commit1ee of the entity shall, at least a nnua lIy. re\'ie~'. revise, and adopt
a list of qualified brokers thai are authorized to engage in investment tra nsac1ions
v'iith the entity.
Added by Acts 1997 ï5th Leg., ch. 1421 Sec. 13, eff. Sept 1, 199ï
Sec. 2256.026. 8T A TUTORY COMPLIANCE.
A.JI investments rnade by entities rnust cornply "'lith this subchapter and all federal,
state] and local statutes, rules, or regulations.
Added by Acts 1997, ï5th Leg., ch. 1421, Sec. 13. eff. Sept 1 199ï
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SUBCHAPTER B. MISCELLANEOUS PROVISIONS
Sec. 2256.051. ELECTRONIC FUNDS TRANSFER.
Any local governrnent rnay use electronic rneans to transfer or invest all funds
collec1ed or con1rolled by the local go....ernment.
Amended by Ac1s 1995. 74th Leg., ch. 402. Sec. 1, eft. Sept. 1. 1995.
Sec. 2256.052. PRIVATE AUDITOR.
Notvvithstanding any other la\\I, a state agency shall employ a private auditor if
authorized by the legistative audit committee either on the committee's initiative or
on request of the governing body of tl1e agency.
Amended by Ac1s 1995. 74th Leg., ch. 402. Sec. 1, eff Sept 1. 1995
Sec. 2256.053. PA YMENT FOR SECURITIES PURCHASED BY STATE.
The compholler or the disbursing officer of an agency tha1 has tile pO'Ner to invest
assets directty may pay for authorized securities purchased from or through a
rnember in good standing of lhe Nalional Association of Securities Dealers or fronl
or through a national or state bank on recer.iÏng an InVOice from the seller of 1he
securities showing that the securities have been purchased by the board or agency
and tt1at the amount to be paid for 1he securities is just, due, and unpaid. A
purchase of securities may not be made at a price that e)(ceeds the existing market
value of the securities.
Amended by Acts 1995. 74th Leg., ch. 402, Sec. 1. eft. Sept. 1 ~'995: Acts 199ì, 75th
Leg.. ch. 1423, Sec. 8.67. eff. Sept 1, 1997
Sec. 2256.054. DELIVERY OF SECURITIES PURCHASED BY STATE.
A security purchased under this chapter may be delivered to the oomptroller) a bank,
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.A.ppendix G
orthe board or agency investing its funds. The delivery shall be made under normal
and recognized practíces in the securities and banking industries. including the book
entry procedure of the Federal Reserve Bank.
Amended by Acts 1995. 74th Leg.. ch. 402, Sec. " eft. Sept 1,1995: Acts '199ì. 75th
Leg. ch. 1423, Sec. 8.68, err. Sept 1, 1997
Sec. 2266.056. DEPOSIT OF SECURITIES PURCHASED BY STATE.
At the direction of the comptroller or the agency. a security purchased under this
chapter may be deposited in trust 'Nith a bank or federal reser"e bank or branch
designated by tile cofnptroller, v\,hether in or outside the stale. The deposit sha II be
held in the entity's name as evìdenced by a trust receipt of the bank 'tilth which the
securities are deposited.
Amended by Acts 1995: 74ttl Leg., ell 402, Sec 1. eff Sep11J 1995 Acts 1997. 75th
Leg.. ch, 1423. Sec. 8.69. eft. Sept. 1, 1997.
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TEXAS GOVERNMENT CODE
CHAPTER 2257. COLLATERAL FOR PUBLIC FUNDS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 2257.001. SHORT TITLE.
This chapter rnay be cited as the Public Funds Collateral Act.
Added by Þ.cts 1993 ï3rd Leg, eh. 268, See 1, err. Sept. 1,1993
Sec. 2257.002. DEFINITIONS.
In thIs chapter:
(1) "Bank holding cornpany" has the meaning assigned by Section
31.002(a), Finance Code.
(2) "Control'" has the meaning assigned by Section 31.002t:a). Finance Code.
(3) "Deposit of public funds·' Ineans public funds of a public entity that
(Þ.) the comptroller does not manage under Chapter 404; and
(B) are held as a demand or time deposit by a depository
ins11tution expressly aut horized by lav..' to accept a public entity's
demand or time deposIt.
(4) "Eligible security" rneans:
(A) a sure1y bond:
(Bj an investment security:
(C) an o',"Inership or beneficial interest in an in\/eslrnent security.
other than an option contract to purchase or sell an investment
security;
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Appendix H
(0) a fixed-rate collateralized mortgage obligation that has an
expected v'leigllted average life of 10 years or less and does not
constitute a high-risk mortgage secLlrity; or
(E) a floating-rate collateralized mortgage obligation that does not
constitute a high-risk mortgage seclJrity_
(5) '"Investment security'· means:
(Þ.ì an obligation that in the opinion of the attomey general of the
United States is a general obligation of the United States and
backed by íts full faith and credit;
(8::1 a general or special obligation issued by a public agency that is
payable from taxes, revenLles. or a c.ombinatlon of taxes and
revenues: or
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(C) a security in vlhict1 a public entity may invest under Subchapter A~
Chapte r 2256.
(6) "Pennitted institution" means:
(A) a Federal Reserve Bank:
(B) a clearing corporation, as defined by Section 8.102, Business
& Commerce Code.
(C) a bank eligible to be a custodian under Section 2257.041: or
(0) a state or nationally' chartered bank that is controlled by a bank
holding company that controls a bank eligible to be a custodia n
under Section 2257041
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Appendix H
(7) "Public agency" means a state or a political or governmental entity.
agency, inslrurnentality. or subdivision of a state including a Jnunicipality,
an institu1ion of higher education, as defined by Section 61.003,
Education Code, a junior college, a dlstnct created under Article XVI.
Section 59, of the Texas Constitution, and a public hospital.
(8) "Public entity" means a public agency In this state I but does not
include an institution of higher education. as defined by Section 61.003,
Education Code.
(9) "State agency" means a public entity that
(A) has authority that is not Itlnited to a geographic portion of the
state; and
(B) V\'as created by the constitution or a statute.
(10) "Trllst receipt" means evidence of receipt, identification, and
recording, Including:
(Þ.j a physical controlled trust receípt~ or
(B) a written or electronically transmitted advIce of tran5action.
Added by Ac1s 1993, ï3rd leg.. ch. 268. Sec. 1, eft. Sept 1. 1993. Amended by Acts
1995, 74th Leg.. ch. 76. Sec. 5.48{a). efr. Sept. 1, 1995~ Acts 1995, 74th Leg., ch. 914.
Sec. 5~ eH. Sept. '1 , 1995; Ac1s 1997, 75th Leg., ell. 254, Sec. 1, eft. Sept. 1. 1997: Acts
1997, 75th Leg, ch. 891, See 3_22(4), eft. Sept. 1 1997: Ac1s 1997, 75th Leg 1 eh. 1423.
Sec. 8.70, eff. Sept. 1,1997; Acts 1999~ 76th Leg.. ch. 62, Sec. 7.63. eft. Sept. 1,1999.
Sec. 2257.0025. HIGH-RlSK MORTGAGE SECURITY.
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Appendix H
(a) For purposes of this chapter, a fixed-rate collateralized mortgage obligation
is a high-risk mortgage security if the security:
(1 ,) has an average life sensitivity 'Nlth a 'Neighted average life that:
(A) extends b~' rl10re than four years. assun1ìng an immediate and
sustained parallel shift in the yield curve of plus 300 bas;s points.
or
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(Bj shortens by rnore tt1an six years assurning an irnrnediate and
sustained parallel shift in the yield curve of minus 300 basis points.
and
(2) is pnGe sensJlÎve that is. the estimated change in the price of the
mortgage derivative product is more than 1 ì percent, because of an
immediate and sustained parallel shift in Ihe yield cura,e of plus or minus
300 basis points.
(b) For purposes of this chapter. a floating-rate collateralized mortgage
obligation is a high-fisk mortgage security if ttle seclIri1y'
(1) bears a n Interest rate that is equa I to the contractual cap on the
instrument: or
(2) is price sensiti'¥'e: that is, the estimated change in the price of the
mortgage derivative product is more than 17 percent, because of an
irnmedlate a nd sustained parallel shin in the Yield curve of plus or minus 300
basIs points.
Added by Acts 1997~ ï5th Leg) ch. 254, Sec. 2, eff. Sept 1 1997.
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Appendix H
Sec. 2267.003. CHAPTER NOT APPLICABLE TO DEFERRED COMPENSATION
PLANS.
This chapter does not apply to funds that a publIc entity maintains or
adnlinisters llnder a deferred cOlnpensation plan, the federal incorne tax
treatrnent of 'l..'hich is governed by Section 401 (kj or 457 of tI)e Internal Revenue
Code of 1986 (26 U. s. C. Sec1ìons 401 (k) and 457).
Added by Acts 1993~ ï3rd Leg., ch. 268, See 1, err. Sept. 1, 1993
Sec. 2257.004. CONFLICT WITH OTHER LAW.
This chapter prevails over any other la\,'~ relating to security for a deposit of public
fUnds to the extent of any conflict.
Added by Acts 1993, 73rd Leg, ch. 268. See 1, efT Sept. 1~ 1993
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Sec. 2257.005. CONTRACT GOVERNS lEGAL ACTION..
A legal action brought by or against a public entity 1hat arises out of or in
connection with the duties of a depository. custodian, or permitted institution
under this chapter rnust be brought and nlaintained as provided by tt1e contract
~\'Îth the public entity.
Added by Acts 1993~ 73rd Leg., ch. 268, See 1, err Sept. 1,1993
SUBCHAPTER B. DEPOSITORY; SECURITY FOR DEPOSIT OF PUBLIC FUNDS
Sec. 2257.021. COLLATERAL REQUIRED.
A deposit of public funds shan be secured by eligible security to the extent and
in t he manner required by this chapter
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Appendix H
Added by Acts 1993. ï3rd Leg" ch. 268. Sec. 1, eff. Sept. 1, 1993.
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Sec. 2257.022. AMOU NT OF COLLATERAL.
(a) Except as provided by Subsection (b), the total value of eligible security to
secure a deposit of public funds must be In an amount not less than the amount
of the deposrt of public funds:
(1) increased by tile arnount of any accrued interest. and
(2) reduced to the extent that the United States or an instrumentality of
the United States insures the deposit.
(b) The total value of eligible security described by Section 45.201 (4)(D), Education
Code, to secure a deposit of public funds of a school district must be in an anl0unt
not less Ulan 110 percent of the amount of the deposit as deter mined under
Subsection (:a.). Tt1e total market value of the eligible security must be reported at
least once each month to the school di&trict.
(c) The value of a surety bond is its face value.
(d) The '"alue of an Investment security is its market value.
Added by Ac1s 1993, 73rd leg, ch. 268. Sec. 1: efr. Sept 1 1993. Amended by Acts
2003, 78th Leg.} ch. 201. Sec. 46, eff. Sept. 1. 2003.
Sec. 2257.023. COLLATERAL POLICY.
(a) In accordance 'lu'ith a ·Y"/ntten policy appro'fed by the governing body of the
public entity. a public entity sha II determine if an ìn"Jestrnent security is eligible to
secure deposits of public funds.
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AppendIx H
(b) The vllritten polìcy may Include:
(1) the security of the institution that obta ins or holds an investrnent
security;
(2) the substitution or release of a n Investment security: and
(3) the method by "vhich an investment security used to secure a deposit
of publiC funds is valued.
Added by Acts 1993~ 73rd Leg. ch. 268, Sec. 1) eff Sept. 1,1993.
See.. 2257.024.. CONTRACT FOR SECURING DEPOSIT OF PUBLIC FUNDS.
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(a) A public entity may contract with a bank that has its rnain office or a branch
office in this state to secure a deposit of public funds
(b) The contract may contain a term or condition relating to an investnlent
security used as security ror a deposit of public funds including a ter m or
condition relating to the:
(1) possession of the collatera I:
(2) substitution or release of an investment security~
(3) o\-vnership of the investment securities of the bank used to secllre a
deposit of public funds, and
(4) method by v¡hich an Investment security used to seCllre a deposit of
public funds is valued
Added by Acts 1993J 73rd Leg., ch. 268J See 1, eft. Sept. 1, 1993. Amended by Acts
1999. 76th Leg.. ch. 344. Sec. 5.006. eft. Sept. 1 , 1999.
See.. 2257.025.. RECORDS OF DEPOSITORY.
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Appendix H
(a) A public entity's depository shall main1ain a separate. accurate, and complete
record relating to a pledged inveshnent security. a deposit of public funds. and a
transaction related to a pledged investment security.
(b) The comptroller or the public entity may examine and verify at any'
reasonable lirne a pledged investment security or a record a depository rnain1ains
under this section.
Added by Acts 1993) ï3rd leg_, ch. 268 Sec 1 eff. Sept 1, 1993. Amended by Acts
199ï. 75th leg., ch. 891. Sec. 3.16, eft. Sept. 1 1997.
Sec. 2257.026. CHANGE IN AMOUNT OR ACTIVITY OF DEPOSITS OF PUBLIC
FUNDS..
A public entity shall inform the depositor~' for the public entity's, deposit of public
funds. of a significant change in the anl0lJnt or activity of those deposits vlithin a
reasonable time before the change occurs.
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Added by Acts 1993. 73rd Leg, eh. 268. See 1, eff Sept. 1,1993.
SUBCHAPTER C. CUSTODIAN; PERMITTED INSTITUTION
Sec. 2267.0.1. DEPOSIT OF SECURITIES WITH CUSTODIAN.
(a) In addition to other authority granted by la''', a depository for a pLlb1ic entity
other than a state agency may deposI1 with a custodian a security pledged to
secure a deposit of public funds.
(b) At the request of the public entity'. a depository for a public entity other than a
state agency shall deposit vvith a clIstodian a security pledged to secure a
deposit of public funds.
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Appendix H
(c:) A depository for a state agency shall deposit ~'Jith a custodian a security
pledged to secure a deposit of public funds. The custodian and the state agency
shall agree in '''riting on the terms and conditions for secllnng a deposit of public
funds..
(d) A custodian must be approved by the public entity and be:
(1) a state or national banK that:
(A) is designated by the comptroller as a state depository:
(B) has its main office or a branch office in this state; and
(C) has a capital stock a nd permanent surplus of 55 million or
rnore:
(2) the Texas Treasury Safekeeping Trust Company~
(3) a Federal Reserve Bank or a branch of a Federal Reserve Bank; or
(4) a federal home loan bank.
(e) þ, custodian holds In trust the securities to secure the deposit of public funds
of the puhlic enti1y in the depository pledging the securities.
Added by Acts 1993. ï3rd Leg., ch. 268, Sec, 1 t eff. Sept. 1, 1993. Amended by Acts
1995. 74th Leg. ch. 1010, See 1, eff June 17,1995: Acts 199ì, 75th Leg. ch. 891, Sec.
31ï. eff Sept. 1, 199ì~ Acts 1999. 76th Leg.. ch. 344. Sec. 5.00ì, eft. Sept. 1,1999.
Sec. 2257.042. DEPOSIT OF SECURITIES WITH PERMITTED INSTITUTION"
(a) A custodian may deposit "'lith a permUted institution an investment security
the custodian holds under Section 2257.041 .
(b) If a deposit is made under Subsection (a):
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Appendix H
(1) the permitted institution shall hold the investment secLlrity to secure
funds the public entity deposits in the depository that pledges U,e
investment security;
(2) the trust receipt the cU5todian issues under Section 2257.045 shall
sho\\I that the custodian has deposited the security in a permitted
institution: and
(3) the permìtted institution on receipt of the investment security, sha II
immediately issue to the custodian an ad\-ice of transaction or other
document that is evidence that the custodian deposited the security in the
pernlìtte d institution.
Added by Acts 1993, ï3rd Leg" ch. 268, See, 1, eff. Sept. 1, 1993.
Sec. 2257.043. DEPOSITORY AS CUSTODIAN OR PERMITTED INSTITUTION.
(a) A public entity other than a state agency may prohibit a depository or an
entity of \'~hich the depository is a branch from being the custodian of or
permitted instìtuiion for a security the depository pledges to secure a deposit of
public funds.
(b) A depository or an entity of vk'hich the depository is a branch rnay not be the
custodian of or permitted Institution for a security the depository pledges to
secure a deposit of public funds by a state agency.
Added by Acts 1993; ï3rd Leg. ch_ 268, See 1, efT Sept. 1,1993
Sec. 2257.044. CUSTODIAN AS BAILEE.
(a).A custodian under this chapter or a custodian or a security pledged to an
91
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Appendix H
instítLltion of higher education. as defined by Section 61.003. EdLlcation Code.
'Nhether acting alone or through a permitted institution, is for all purposes the
bailee or agent of1he public entity or institution depositing the public fllnds \.'\Iith
the depository.
(b) To the extent of any connict, Subsection (a) prevails over Chapter 8 or 9,
Business & Commerce Code.
Added by Acts 1993~ 73rd Leg.. ch. 268, Sec. 1, eff. Sept. 1,1993
Sec. 2257.045. RECEIPT OF SECURITY BY CUSTODIAN.
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On receipt of an inveshnenl security, a custodian shall:
(1) immediately identify on its books and records. by book entry or
another method. the pledge of the security to the public entity: and
(2) promptly issue and deliver to tl1e appropriate public entity officer a
(3) trust receipt for the pledged security.
Added by Þ,cts 1993~ 73rd Leg.. ch. 268, Sec. 1, eff. Sept. 1,1993
Sec. 2257.046. BOOKS AND RECORDS OF CUSTODIAN; INSPECTION.
(a) A public en1ity's custodia n shall maintain a separate, accurate. and conlplete
record relating to each pledged in'wlestment security and each transaction relating
to a pledged in·~estment security.
(b) The comptroller or the public entity may e><amine and \!erify at any
reasonable time a pledged investment security or a record a custodian maintains
under this section. The public entity or its agent may inspect at any time an
investment securìty evidenced by a trust receipt.
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Appendix H
(c) The public entity's custodian shall file a collateral report v~ith the comptroller
in the 11lanner and on the dates prescribed by the comptroller
Added by Ac1s1993, 73rd Leg., ch. 268. Sec.. 1. efT. Sept. 1. 1993. Amended by Acts
1997. 75th Leg.~ ch. 891. Sec. 3.18, eff. Sept. 1, 1997.
Sec. 2267.047. BOOKS AND RECORDS OF PERMITTED INSTITUTION.
(a) A permitted institution may apply book entry procedures '",hen an
investrnenl securîty held by a custodian is deposited under Section 2257.042
(b:~ A permitted institution's records must at all times state the name of the
cus10dian that deposits an in'.!estrTlent security in the permitted institution
Added by Acts 1993¡ ï3rd Leg, ch_ 268, See 1, efT Sept. 1, 1993
Sec. 2257.0-48. ATTACHMENT AND PERFECTION OF SECURITY INTEREST.
(a) A security interest thai arises out of a depository's pledge of a security 10
secure a deposit of public funds by a pUblic entity or a n Institution of higher
education. as deñned by Section 61.003. Education Code. is created. attaches.
and IS perfected for a II pllrposes under state la\'V from the time that the
cus10dian identifies the pledge of the security on the custodian's books and
records and issues the trust receipt
(b) A security interest in a pledged security remains perfected in the hands of a
subsequent custodian or permitted institution
Added by Acts 1993, ï3rd Leg., c.h. 268, Sec.. 1, eff. Sept. 1, 1993.
SUBCHAPTER D. AUDITS AND EXA'~INA TlONS; PENALTIES
Sec. 2257.061. AUDITS AND EXAMINATIONS.
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Appendix H
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As part of an audit or regulatory examination of a public eniity's deposi1ory or
clIs1odian. the auditor or examiner shall.
(1) examine and verif'y' pledged investnlent securities and records maintained
under Section 225ì 025 or 225ì.046: and
(2) report any significant or material noncompliance 'Nith this chapter to the
com ptro lie r.
Added by Ac1s 1993, ï3rd leg.. ch. 268. Sec. 1, efT. Sept 1 1993. Amended by Acts
1997, 75th Leg.) ch. 891. Sec. 3.19, eff. Sept. 1, 1997.
Sec. 2257 .062. PENALTIES.
(a) The comptroller may revoke a depositol"/s designation as a state depositoI)'
for one year if. after notice a nd a hea ring. Ule cornptroller ma kes a \'Vritten finding
that the depository. v\fhile acting as ei1her a depositoI)' or a custodian:
(1) did not maintain reasonable compliance with this chapter~ and
(2) failed to remedy a violation or 1his chapter '~Ithln a reasonable time
after receiving written noiíce of the violation.
(b) The cornptroller may permanently revoke a depository's designation asa
state depository if the comptroller makes a 'Nntten finding that the depository:
(1) has not maintained reasonable compliance \~\ ith this chapter; and
(2) has acted ìn bad faith by not remedyìng a vìolation of this chapter.
Added by Ac1s 1993, ï3rd Leg., ch. 268 Sec. 1, eft. Sept. 1. 1993. Amended by Acts
1997, 75th leg., ch. 891. Sec. 319, eff Sept. 1, 1997.
Sec. 2257.063. MITIGATING CIRCUMSTANCES.
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Appendix H
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(a) The comptroller shall consider the total circumstances relating to the
performance of a depository or CLlstodian '\'Vhen the comptroller makes a finding
required by Section 2257.062. including the extent to v~hich the noncompliance is
minor, isolated, temporary. or nonrecurrent.
(b) The comptroller may not find that a depository or custodian did not maintain
reasonable compliance \'lith this chapter if the noncompliance restJlts from the
public entity's fa !lure to comply \vilh Section 2257.026.
(c) This section does not relieve a depository or Cllstodian of the obligation to
secure a deposit of public funds \.vith eligible security in the a.110unt and manner·
required by this chapter \~ithin a reasonable tinle after the public entrty deposi1s the
deposit of public funds with the depository
Added by Ac1s 1993, 73rd Leg., c.h. 268: Sec. 1. eff. Sept. 1. 1993. Amended by Acts
199ï. 75th Leg., ch 891. See 3.19, eff. Sept. 1, 1997.
Sec. 2267 .064. REINSTATEMENT.
The comptroller .nay reinstate a depository's designation as a s1ate depository
if:
(1) the comptroller determines that the depository has remedied all violations of
this Ghapter~ and
(2) the depository assures the comptroller to the comptrollerls satisfaction that
the depository '..vill rnainlain reasonable compliance with this chapter
Added by Ac1s1993, 73rd Leg., ch. 268. Sec. 1, eft. Sept. 1. 1993. Amended by Acts
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199ï, 75th Leg., ch. 891 Sec. 3.19~ eff. Sept. 1,1997.
Appendix H
SUBCHAPTER E. EXEMPT INSTITUTIONS
Sec. 2257.081. DEFINITION.
In this subchap1er, "e)(empt instí1utìont. mea ns:
(1) a public retirerl'1ent system, as defined by Section 802.001; or
(2) the permanent school fundI as described by Section 43.001, EdLlcation
Code_
Added by Ac1s 1993, ï3rd leg.. ch_ 2~.. See 1. eft_ Sept 1. 1993_ Amended by Acts
1997. 75th Leg.. ch. 165. Sec. 6.31. eff. Sept. 1, 1997.
Sec. 2257.082. FUNDS OF EXEMPT INSTITUTION.
An exempt Institution is not required to have Its funds fully insured or
collateralized at a II tlrnes If:
('1) the funds a re he Id by:
(A) a custodian of the institutionls assets under a trust agreement: or
{B) a person In connection \Nlth a transaction related to an investment:
and
(:2) the governing body of the institution. in exercising its fiduciary responsibility.
determines that the InstItution is adequately protected by Llsing a trust agreement,
special deposit, surety bond, substantial deposit insurance or other methûd an
e)(empt institution commonly uses to protect itself from liability_
Added by Acts 1993. 73rd Leg" ch. 26B. Sec. 1, en. Sept. 1, 1993.
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Appendix H
Sec. 2267.083. INVESTMENT; SELECTION OF DEPOSITORY.
This cha pter does not:
(1) prohibit an exempt institution from prudently investing in a certificate
of deposit. or
(2:) restrict the selection of a depository by the governing body of an
exempt institution in accordance \vith its fiduciary duty.
Added by Acts 1993, ï3rd Leg. I ch. 268, See 1, eff Sept. 1 ~ 1993
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Appendix I
RESOLUfION NO. 90-04
MfroWAS, t-Jle ci ty of North Ricr.1 ar..d IT; 1] F1 i ~ an agency 01
political subdivision of the state of ~Xë_S 'the "Par-t.icipantU) and is
~red to c1eleg~tp t.c a public funds investment pöe>l the ~\'t.horit:y to
invest funds and to ~ct- i'tS c:ust.odiari 0:: investIrents purchased 1t.'i th lnca]
investJ"ocnt funds; and
'·IŒREl\.S, it ie in the œst i t~œrest of the Participant and itJ~
Ì!1habitants "to invest local flL,aS in i~\"F!~trEnt_s t112.t yield tliC hi~~t
possible rate of ret'UrD v.'hilc providing ne~s.s(try SR f~k..Hapinq and protection
of t..h~ principal ~ ar!.d
~ltR1<FJ\S, thp 'T'r~ðRurer of the State of Texas acting by and throucJh
the Texas Tre~sur}'" ~f~kAAping Trust Company (the "Trust C.crrpanyJl) has
created nTcxPoc-l n, 8 pl1bl fc funns investIœr:t }X101 to effectuate the c.;nals of
providing invcstI':'cnts ðt tht?' ""lighp~t }DRsible yi€ld ~ maintaining c~letp
safety o( the funds of the Participant,
W/1 TIIEREFOllli, be it reso 1 veè. élS fo ll~'!-': :
] . That the c;ì ty of North Richla~d JIi!lf> establish a~
account in its narre \\;rith the Trust ~nyl r::; Public }'unds
Inv~st1nPT'J~ Pml ItTexPool" for 1....he purp:.se ()f tra]1~it:"tinq
lo::al f\Dîds for -:n~"P.~hrent by the Trust Carpany in ~xPocl.
2 _ That tr..c fol1C1f.;ing individuals whose signatl.1..ves apppBt"
l~l~ are officers or cmpl~~ of the Participant anè: are
eR~h herebv authorized to tranmit funñ~ to tJ1e Tntst Carrpany
tor i nVP!ttt:JTe.~t in 'l'exI'()Cl and ~..IT" êacJ:, fl1rt.r~r author.izütl to
Tøo:ithd~R""? ftmd~ [L'(~} LiIœ to time, t:o issue letters of
instructi()J1, and tc take ðll other ~tj ons deemed necessary
or appropr:_~t-E' for t-J\e investIœnt of :!.oc~l f11nds t
Nan~ ~ Lee Mê.ness
Signature: ~f
rpj t 1 ~ : Director of Fina.~ct?
7I1~1
}~ : a L'"1\ Ccx>k
(~.7. ."".
Sign..'! tn re: ~
Title: As5t. Dirpctn: of Finance
-;::~~ ----.--
NðmC: CfnE'l is Fif:he=- 'ritle: Senior Staff Þ.CCOllT't-ant.
/) ./ ~ /.,-/" ""
Signa tttrC: ~?,t~ h "'- "-r -;t A!..<J..:J ~,
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Appendix I
3. 'It1f\t thi F) Resolution and its authorizAtion ~hall car.tÍJ1œ
in full forr~ anrl effect until arrendeð. cr TPvoked bv the
Pilrt':c]~nt. ~M until the Trust Ccmpany re~;vA~ B coQy of
iU'\y such amen~nt_ or revocaticn:, until such ti!1'\t? tr~ Trust
Carq;:w:y is Crl tit l~ to re 1 y on SùlfC.
This ltesolulion is hereby ir:troduœd and adopted b}' t.h~
Participart ~t. i t.R reqular rreeting helè OJ"! t-.h~ 23rd day of January, 1990.
CITY OF NORTH RInnAND HILLS
II')': ~...
'J dfv.1>"~
--/
'/--t
A?l'EST; y~ A~ ~)
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Resolu~íon 96-19
Appendix I
Local GoVtrument loyestmeot Coopenth'e ResaJutioa
RESOLtfI10N APPRO\'ING AND AUT'"dORlZING EXECUTION OF AN
INTERLOCAL AGRE£MÐrr FOR PARTICIPATION IN A Pü~UC FtTNDS
IN\IESTMENT CCX>PEMTIVE (THE ·COOPERATPlE-), DESIG1\ATING
THE BOARD OF DIRECTORS OF THE COOPERA rrVE AS AL'l AGENCY
AND INSTRT.ThŒ.'ITALITY TO SUPERVISE 1lŒ COOPERATI\~,
APPROVING ~VE.SThŒNT POtICŒS OF THE COOPERATTV'Et
APPOINTING AUTHORIZED REPRESENTATIVES AND DESIGNATIN'G
!NVESTMENT OFF1CERS
'ÑìŒREAS, the Intcrloca1 Cooperation Act. Chapta' 791 of the Tex.a.s
Government Code. as amended (the -Interloc.aI Act-). permits any ·loa! government- to
contract with one or more other -1ocaJ eovcmmcnu- to ~rform -govemmentû functions and
servic~,· includina investment of public fumb (as such phrases ~ defined in the L1terloca1
Act);
WHEREAS. the Int.erloca.l Act authorizes the contracting parties to any irualacaJ
agreement to contract with agencies of the State of T"a3. within the mani....g of Chapter 771
of the Government Code.
WHE.REAs, the Act permits the COQb"actin¡ parties to any intcrlocaJ agreemenr
to ~ an a.dministralivc aleney to supervise the performa:1C1: of Juch inœrloca1 qrccmcnt and
to employ personnel and en¡a¡e in other adminisa¡¡Û\1: activities and provide other
:administrntive ~i.œs necessary to execute the terms of such in!erloca1 ~Jr~t;
\\1ÆR.EAS, the Public Funds Investment Act, Chapter 2256 of the Tens
Go"~rnent Code, as amended (the ·PFIA -). authorizes the enù ties de.scribed in Subsection (a)
Df the PFLA to invcst thår funcb in an etigibh: public funds investment pool. and the intends to
become and remain an c:1igibie public funds investment pool, under the terms and conditions set
forth in PFIA;
\VHEREAS. City of Nort:1 kichland Hi:1s
(the -Government Entity-) desires to enter into that certain Interloca1 Ag.reement (the
.. Agreement·), a copy of which i.s presented with this Resolution and is incorpontcd h~rci.'1 by
reference. and to become a participant in a public: funds investment pool created thercunder and
1U1dcr PFlA, to be known as Local Government Investment Coopentive (the ·Cooperativc:-):
WHEREAS þ the Government Entity is a Go"'emm~nt E:Jbty as defmal in the
Agr~ment; and
-1-
RelOluùoa
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Appendix I
VlHEREAs, tt.c GOll~ment Enùty doires to ~ administration of t:..c
Coopcntive to be performed by a boud of directors (the ·Board·), which shall be .a..,
admi.ni~ti ve a~ency Cre:¿ted undc: the !:!terlocal Ac~; and
1h1ŒREA.s, the Goven;ment Entity desires to dcsig:1are the Boa.rd as its agency
and instrumen~ty with au IhOOty to su pc:"'. ise paformance 0 f the A g~eelt'..e.'t, c:m;¡loy personr.d
and engage in other administra:ive a::ti,oities 3.'1d ;:Jrovi~e other adrnlnistrative :u:rvic~ ne::euary
to e~ec~u: :",e te:h1S of thc Agreement;
WHEREAS, each apital.izaJ tenn u.sm in t!tis ResolutiDn and not orherv,ise
def.ned has the same meaning ß3igned to it in t.~e Agreement;
NOW, THEREFORE, BE IT RESOL'VE.D:
1. Tbe A&reemc.nt u hereby approved and adopted and, upon exccubon
thereof by an Authorized Representative (ddined be1aw) and receipt of the Government
Entity's application to join the Cooperative by the Administrator, tIu: Government Entity
shall become a Participant in tht: Cooperative (or the purpose of inVe3ttng its available
funds therein from time to time in accordance with its œnns~
2. The Board 13 hereby designa~ed as an a:ency and instrumentality of the
Gov~mmcnt Entity, a.,d the Boa..rd shall bave tbe authority to supervise performance of
t;e Ag~ment and the Coopcra~ye, employ personnel and engage in other administntive
activities and provide other adminls~tive services necessary to eucute rhc tc:rm.s of the
A£reern~l.
3. The investment polici~ of the Coopcruivc, as set forth in the document
entitJed Inve.stm~nt Policies, as summari.za1 in the Information Swerncntt and as may be
&mended from bme 10 tim~ by the Boatd, a.rc hereby adopted as investment policies of
the Government E:aity with ~t 10 money invested in the COOpc:ative, and any
c:úsùng investment poticia of the Government Entity in conflict therewith shall not apply
to investmenu in the Coopcntive.
4. The followin¡ officers. officiaJs or employcc.s of the Government Entiry
are hereby designated as · A uthorized Representatives· within the meaning of the
Agreement, with full power a.~d authority to: execute the Agreement, an application to
join the Coopt:t3tive and any other documc:1ts required (Q become a Participant: deposit
money to and withdraw money from L~e Government Entity's Cooperative a.ccount from
time to time in accordance wilh the Agreement and the In(ormation Sta.œmen~ and t2kc
all olhe:r actions deemed necessary or appropriate for the investment ot funds of the
Government Entity: .
Jla.m¡uciGQ
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Si¡natute:
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Appendix I
Printed Name:
3ret St~r:!"
Title:
ACCol1ntaut
Si¡nature:
Printed Name:
ltlckie TherIot
Title:
Accounting ~anaR@~
SiJlWUn::
:'L<5":~~ (~~~.~ Ç.ç4:~".//~
Printed Name:
ChaT'~5 Harr1~
11de:
Finaßce Director
In accordance with CoopetUive procedures, an AutholÙed Repre.sentaJive IhaI1
promptly notify the Cooperative in wriûn¡ of any chan¡es in who iJ JCrVÎnI as
Authori.:zcd Rcp~Wive.s.
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,. In addldon 10 the foœCOfn¡ Authorized Representatives. each Investment
Officer of the Cooperative appointed by the Board from time to time is hereby dœpated
as an investment officer of the Government Entity and. ;u such, WU have responsibility
for investinl the ~ of Coopcn.tive assets representing func:b of the Government
Entity. Each depository and custodian appointed by the Board from time to time are
hereby de.si:nated IJ a depository and custOdian of the Government Entity for purposes
o( ho[dina the share of COOpentive assets representing funds of the Government Entity.
PASSED AND APPROVED this -1L.. day or 'M~rch
. 19.2.,ó.
A TIEST:
,I'J
¡-J. z,(; g / '
By: y /á--1.¿ ,-' ./ /.--
.rl:'i'tnetl~ Rewis, City ~ec.rer:.'ry
Printed name and tiUe
B~~-1~
T my ßro~n. M~yúr
Printed Name and Title
SEAL
luoIiWoI
.).
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Appendix I
AddltlonaJ Party Agreement
The Government Entity o(the State: ofTe.xas named below, acting by and through
the undersigned Authorized Rcpre.sentative, hereby agrees to become a part)' to tha.t certain
InterlOC3l Agreement to which t~iJ page is attached, and thereby become a Participant in the
Loc.a1 Government Investment Cooperati\·c~ subject to all of the terms and provisions of such
Agreement. The under~igned hereby ~presenls that it is a Government Entity as defined in such
Agreement.
Executed this -21!.~a.y of Xarch
, 19~.
C it}. .., f N n r r hit; ~ h 1 ~I n rI \.¡ i I I It
Name of Government Enûty
~ ~~-/'
By: .~
Authoriz epresentative
Tommy Brovn. Mavor
Prinred Name and Title
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ACCEPTED:
Loa1 G
ent Investm~nt Cooperative
By;
PATRTCR SHIKKlE. V.P.
Printed Name and Title
-10-
wterlocaJ ^ITeemcDt
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Appendix I
R8Solution No 2001-046
WHEREAS, pursu~nt to U1C rCQuircrncnts of the PJb ic FL'nds Invcstment .A.ct,
Texas Government Code. Sectlo:1 22:)6.001 t~I' ~efl {the' ÄGr), the City' Courcil of the Citì'
of North Richlald Hills has previously rAvie'NefJ rind ~rJnpt~c! ..:In invH~lrnel1t pu:ic~y th~1
provide~ in part thiit th~ ~lJnds of the City of !\Iorlh RIr;"1Iand Hills '"v:11 be Tvesled ¡'.
iflvesLrnents µen'1itted b~f the Act in order to: ~I) invest cnly In investrnents le~a(¡y oerrnitted
Jnder 'Texas law~ (ii) miIllnìize rj5k by rnL1naqlnÇ) portfolio investments so ()$ to prcscr.!c
prircipa' and malntGìn a st()blE (J~sct vtllJc; (iii) m<Jn.:gc portfolio in\icstn¡Cnts to cnsuro
(:é)~h '~~ill be R'18ì1F.lhJe AS reqLJir~fi to finance )per~tion$: and (iv) rnaxirnizc current incorne
to the deuree l;c,ng¡slert wi·.h leua1ity. ~arety éUld ¡iqllidil.y~ df1d
WHEREAS, the Act provides that funds under the contrc, of the City of No.1h
RichlDnd t i¡,ls míJY be Invcstc,j Ih~ough investment rOO1s mcr--ting 1h~ stñndarc1s of S~c~ion
2256.0'16 of tr.c Act and tllD City of North Richlanrl Hills hFJS rev¡Rv~Ad th~ Inrnnnri'iurJ
Staten~eni, dated 3,3.196, as suppl~nì~rt~rl on 12í:i1,'98 (Ihe "SI(l(erraenLU). of Tex.ds
Cooperative Liquid Assets Secur:ties System zn invest':lûnt pool (the ;:Pool") administered
by rv~UI^ f\1unic,p31 ~nves:or$ Scrlicc CorpcrÐtion, as the mé)naÇJcr of the Pool (the
·'r.llanager") and has deterrriÌned :hat the investments proposed 10 be êJcQuircd by the Pool
Ar~ of ;) type r~rmirt~(j hy t~~ Ac.t al1n (:(}n~i5tent with the Policy 'Nill assist in achieving the
goa:s set forth in lhe nolicy~ and
WHEREAS. the City' of North Richland Hills underst~nds that the Poo1 is crcGtcd
through an irstrument of trust, dë:Jtcrl éJS of .JanlJrJry 1 19~(), rJnrJ ;¡n,ended as of November
20. '" 997 (the hTrlJst InstrLJn~p.nl":~ vw'hich provides the tenns on \vhicta Ihe Pool '.viti operate
rtnd thA rìght~ of tllA p~rti(;i~)8n1s In the P~..l[.;1 \A'I1D will be yoverned éu¡d sets for the
responsibilites o~ the ~,~anaqer. and of ß2r.k ()ne, Texas, N.A. as trustee (the "Tr Jslee);
NOW THEREFORE, BE I'T RESOLVED BY THE C.ITY C:OlJNCIL OF THF CITY OF
NORTH RICHLAND HillS, TEX.AS, THAT
lhe form, terms ~nd provisions of :hc Trust Irstrun1cnt. () draft of ",¡hich was
presented and review'ecJ at this neeting, be and the san1C arc hereby approved and
adopted; éJnd th;;t Larry Koor.c~, Dire8tor of FinAnce, h~~tC1f(')r~ Appointed by the City of
North Richlrtnrl Hills pursuant 10 the Policy ard the Act as its Irh/estn1cnl Officer, IJ~ and ~\e
is hereby authorized and cJirected 10 execute 311d deliver to the r\.'1anager and the Trustee in
the name and on bena:f of the CIty of North .{ict1land Hilts. a Trust Instrul:lent substan~i3l1y
in 1hc form of Ih~ trlJst instnJm~nt r~'v'iA'Nerl and ~pproved (it this n1eet;ng, together 'Nit+-,
:;ueh chi1ng~s ¡;"S said officer n1l-1y' appruv~, SUt:'r. Hppruval to be c.:oflclusi'/BY e\'idenceu by
the execulion thereof: alÌ(~ be II further
Resolved, th3t the investment J:rogr~3fn descrit·ed in the StL3tcmcnt is hereby founcj
and determined to be consistent \vlth the Policy~ and to preclude illlprudcnt in'/cstmcnt
activities iJrisinQ out of investment tré1nsactions conducted bet\lveen the City nf North
Rich¡and Hills i}nd tt'.c Pool~ ar.d be it h:rthnr
RRfinlvftd th~t the Ci:y CULJl1cilllerelJy orrici~lly finl!s Hllti deterrnines that the facls
(-1nd recil¡..)tinns in 1he prfJdrnble of thi~ Re~ululion Hre true and correct and adopts the
prearnble as par1 of tne ùµer8tive pn)vl~ilH]~ or lrlìS Re~ululiun. élr~(j be it further
104
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Appendix I
Resolved, that the City Council hereby finds Rnrt Ijedares U~t-tt vvritLen notice of the
date, hour, place and subject of the 'Tleetin~J ;it \",hich ItHS Resolution \.vas adopted V:GS
posted for th~ time req:.rred by la"v preceding UJI~ rueeting, and that such meeting \I/dS
oper to th8 pub:ic as ret.¡uifed by la'll 3t all times durinÇJwhich this Resolution ñnd Ihe
subject n1atter thereof \.'~ere <.Jjsc.;u~~ed. consiclered and to/"nl~;ly Llctcd upon. a~1 f1S rt~f;uired
by Chapter 551, Texas Government Codc, DS amet1ded, and the Act And hfl it ftJI1i)~r
Rcsolved. thai th~ offi(',Ars of tl1e Ci(~' of NorU1 I<ìchland Ilills. CQch is cxpresslì'
8uthorizec!. enlpowered and dlr~<.;I~tJ frorn tinle to time to pertorr.1 all 8cts and to eXflcIJ1A,
ðckno~\.'1edge, seal and deli\,'er in the n8mc and on ~~h;:lf of the City of North Rictllanu Hills
all certificates, instrumcr:ts and othnr rto~lJn1~nts 85 they rnay detenJline to be necessary or
desirable to carry out the provis;i:1ns of lhis Rt=solutiol1 and the 1 rust Instrument, such
d~tennin<lt!on 10 be cor;clusivel~' evidenced by the pertormance of such ads and th~
execuLiora of ðf1Y $uch documenls: and be it furthcr
Resolved, that this Resolution shall tR~:A ~ffAc:1 ~nd ue III full force upon and atter its
pf3ssagc.
PASSED .Är-JD APPROVED thís 21th day ot /\cgust 2001.
I\PPROVED:
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~'-F~ .7tß\
~£S~
.') : rr
:>-¡,~ .
~. 4!1
A ~:,,../ /,.'.
-t ( f.'A;. . - .: . . ..'
4PatncjaHðts'~nJCity SA¿r:€i-~
APPR~ TO LEGl . /'.... .. .,._.,., .
/Í~ fu
Rex tJ1c;Enlire, Attorney for the Ci:y
APPROVED AS TO CONTENT:
'I. .,
f,v~ ~¡.:, ''J \ .' -""---
I ~rry K ·'Ge. Director of ¡.: inance-
105
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Resolution No. 2003-023
Appendix I
WHEREAS, pursuant to the requirements of the Public Funds Investment Act,
Texas Government Code, Section 2256.001 et seq. (the HAd"). Ihe City Council of the City
of North Ricl1land Hills has previousfy revie\Ved and adopted an investment poJic~' that
provides in part that the funds of the City of North Richland Hills "viii be invested in
investments permitted by the Act in oreer to: (i) invest only in investments regally permítted
under Texas law: (ii) minimize risk by managing portfolio investments so as to preservR
principal and maintain a stabre asset value: (iii) manage portfolio investments to ensure
cash wiJI be available as required to finance operations: and (iv) maximize currer,. Îr1<.;ome
to the degree consistent with legality, safety. and Jiquiday: and
WHEREAS, the Act provides that funds under the control of the CÎt~, of North
Richi and Hills may be invested through investment pools meeting the standards of Section
2256.016 of the Act and the City of North Richland Hills has reviewed the Information
Statement. dated 4/8.'02 (the "Statemenr). of Texas Short Term Asset Reser\le Program
CTexSTAR"). an investnlent pool (the IlPooI") administered by First South-Nest Asset
Management. Inc. and JPf\.1organ Fleming Asset "'1anagement (USA)~ Inc. as the
managers of the Pool (the "Managers") and has determrned that the investments proposed
to be acquired by the Pool are of a type permitted by the Act and consistent with the Policy
will assist ,n achieving the goals set forth in the Policy; and
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WHEREAS, the City of North Richland Hills understands that the Pool is creatod
IJnder the authority of applicable Texas law, including the Interlocal Cooperation Act.
Chapter 791 of the Texas Government Code. as amended (the "jnterlocal Act") , and Iha
fnvestment Ac1 and that the attached agreement (1he "Agreement), upon enactment,
serves as the agreement between the Cjty and the Pool and provides the tern1S on which
the Pool will operate and the rights of the participants in the Pool who win be governed and
sets for the responsibilities of 1he ~48nagers, and of JPMorgan Chase Bank. as custodian
(the "Custodian"):
NOW THEREFORE. BE IT RESOLVED BY THE CITY COUNCrL OF THE CrTY OF
NORTH RICHLAND HillS, TEXAS. THAT:
The form. terms and provisions of the Agreement, a draft of'Nhrch was presented
and revíe·wed at this rl1eeting, be and the same are hereby approved and adop1ed: and thöt
Larry Koonce~ Director of Finance. heretofore appointed by the City of North Richland Hills
pu rsuant to the Policy and the Act as its Jnvestment Officer, he and he is hereby authorized
and directed to execute and deliver to ttle Managers and the Custodian in the name and on
behalf of the City of North RichJand Hills, an Agreement substantially in the forJl) of the
agreement reviewed and approved at this meeting, together wi1h such char)ges as said
officer may approve. such approval to be conclusively evidenced by lhe executicn thereof:
a~ be it fu ri her
Reso'ved. that the investment program described in the Statement is hereb)' found
and determined to be consistent \Nith the Policy, and to predude imprudent investment
activities arising oul of investment transactions conducted bet\veen the City of North
Richland Hills and the Pool; and be it further
Resolved, that the City Counci[ hereby officiaUy finds and determines thai the fac.,is
and reGitation S in the pream bJe of this Resolu1ion are true and correct and adopts the
preamble as part of the operative provisions 1:íD6t1is Resorution; and be it further
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Appendix I
Reso'ved~ tha11t1e City Council hereby finds and dec~9res that wriUen notice of the
date. hour, place and subject of the meeting at which this Resolution was adopted was
~8ted for the time required by law preceding this meeting, and that such meeting was
open to the public as required by law at all times during VJhich this Resolution and the
subject matter thereof were discussed. considered and formaUy acted upon, aU ~s required
by Chapter 551, Texas Government Code, as amended, and the Ad; and be it further
Resolved~ that the officers of the City of North Richland Hms, each is expressJy
authorized, empowered and directed from time to Ume to perform all acts and to execute,
acknowfedget seal and deliver jn the name and on behalf of the C;ty of North Richland Hills
aU certjficates, instruments and other documents as they may determÎne to be necessary or
desirable 10 carry out the provisions of this Resolution and the Agreement, such
determination to be condusivery evidenced by the performance of such acts and the
execution of a ny such documents; and be it further
Resolved. that thjs Resolution shall take effect and be in full force upon and after ìts
passage.
,~
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ATTEST:
c:::7d/;u~å ~
~i;;cja Hutson, City Secretary
APPROVED AS TO CONTENT:
~~~t£~~ F;nanœ
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.A.ppendix J
GLOSSARY
Agencies: Organizations formed by the Federal Government but not directly controlled by
the Governrnent. Each agency is authorized to issue its OVJn securities, \Aihich are
con1parable to Treasury Notes, Bills, and Bonds.
Book Value: The value of a security as stated in the City's general ledger. This is
generally the purchase price plus any amortized discount or less any amortìzed premium.
Bullet Agency: An agency security that contains no call provision Interest is paid until the
investrnent fllatures
Callable: Describes a fixed income security containing a provIsion that allov'ls the issuer
to redeem the security for a fIxed price on a certain date or a range of dates. Bonds are
usually called '~'Vhen interest rates fall so significantly that the issuer can sa~le money by
issuing ne¥J bonds at IO'l.,ter rates
Certificate of Deposit (CD): A time deposit issued by a bank that guarantees a specif1ed
interest rate for a specified time for the amount of the certificate.
Commercial Paper: Short-terrn unsecured prorllissory notes issued by large corporations
with maturities ranging from tv~o to 270 days.
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CUSIP: Committee on Uniform Securities Identification Procedllres. This committee
assigns identifying numbers and c.odes for all securities. The identifying number itself is
o "en referred to as it's II C US I P to
Discount: The dífference beh,veen the amount paid below a security's par value and the
seclIriiy's par valLie.
Discount Notes: Short-term securities issued by government agencies thai are sold at a
discounted price and redeemed at full value upon maturity The difference between the
purchase price and maturity value is the investment's interest income.
Federal Agricultural Mortgage Corporation, or Farmer Mac (FAMCA): A US.
Government Agency that issues securities
Federal Funds Rate: Interest rate charged by banks \ovith excess reserves at a Federal
Reserve district bank to banks needing overnight loans to meet reserve requìrements. It is
the most sensitive ïndicator of the d1rection of interest rates, since it is set daily by the
rllarket.
Federal Farm Credit Bank (FFCB). A U. S. Governrnent Agency U,at iS8ues securities.
Federal Home Loan Bank (FHLB): A U. S. Government Agency that issues securities.
108
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Appendix J
Federal Home Loan Mortgage Corporation, or Freddie Mac (FHLMC): A U. S.
Government Agency that issues securities.
Flexible Repurchase Agreerl1ent (Flex Repos): A type of structured Repo that allovlO'8
portions of the invested amount to be ~"ithdra'Nn under specified conditions before the
maturity of the Repo. This type of transaction is useful for the Investment of construction
funds. "'.there the size and tin1ing of payments are somewhat predictable
Federal National Mortgage Association. or Fannie Mae (FNMA): A U. S Government
Agency that issues securities
Inverted Yield Curve: An unusual situation \",here short-term interest rates are higher than
long-1erm rates. This usually occurs when a surge in demand for short-terrn credit drives
up short-term rates on T-bills and n1oney-rnarket funds) vlfhile long-term rates I1îOVe up
more Slov'lly.
Local Government Invesbnent Cooperative (LOGIC): A privately managed investment
pool administered by First South\ l/est Asset Management. Inc and JPMorgan Chase
Investrnent Managernent, Inc. The general investment objectives are safety of principal.
liquidity in accordance \vith the operating requirements of the participants, and a
competitive rate of return.
Market Value: The value of a security if it was sold for cash at a given date.
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Maturity Value: The amount received for an investment at its maturity I not including
coupon Interest. Also kno~Yn as par value.
MBIA Cooperative Liquid Assets Securities System (MBIA CLASS): One of MBIAPs
local government ìnveshnent pools designed to make the job of rnanaging public funds
safer and easier _ CLASS enables local governments to pool funds v¡ith other units of
government, giving thern tI,e opportunity to obtain safety of principal. daily liquidity, and
competitive rates on overnight investments.
Net Asset Value: A term used to indicate the market value of one dollar invested in the
portfolio at a given date. This measure shows the aggregate \/alue of the portfolio instead
of comparing the gain or loss of any gi\ 'en investment in the portfolio.
Public Funds Investment Act (PFIA): Also knovin as Chapter 2256 of 1he Texas
Governrnenl Code This law is the prima ry legislation regarding the proper investrllent
guidelines for political subdivisions in the State of Texas. .A oopy of this act is included in
the appendices of the City·s Investment Policy.
Purchased Interest: An additional amount paid for a fixed incon1e security ",hen the
investment is purchased in the secondary market on a date other than the coupon
payment date _ The additional amount paid represents the seller's accrued interest on the
investment since the last coupon date. The buyer recovers any purchased interest and
realizes interest income for the period he OVins the investment on the next cQupon
109
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A.ppendix J
payment date.
Premium: The amount paid above a fixed income security's par (Inaiurity) value.
Repurchase Agreements (Repos): Agreements \".,here the City purchases an investment
wi1h an agreement to resell the investment to the sa me firm at a specific date for a specIfic
price. The difference beh'leen the purchase price and the sale price represents interest
earned on the transactIon. Repos can be establi~hed for any given size and maturity.
Return on Investment (ROI) The amount of money earned on a given amount of
investments for a specified period of time.
Step-up Agency: A bond that has a fixed coupon rate for a period of time It is then
available to be ;;called': (redeemed @ par) by the issuing Agency. If the note is not called
the coupon 'Nill then step-up (adjust) to a new coupon rate. These various coupons and
the amount of time betv/een the step dates are established at the issuance and will not be
changed over the life of the bond.
TexPool: An in'Jestrnen1 pool adrninistered by Lehll1an Brothers and Federated Investor's
Funds from pfJlitlcal subdivisions of Texas are deposited '(ýith TexPool and invested as a
sIngle portfolio to earn higher levels of Interest Inc.ome. TexPool is managed oonser"atl'Jely
to provide a safe I efflc.ient, and liqllid investment alternative to Texas government
agencies.
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Texas Short Term Asset Reserve Program (TexSTARl The TexSTAR is administered
by First South\'~est Asset r\1anagement. Inc. and JPMorgan Fleming Asset Management
Inc. The primary objectives of TexSTAR are to offer preservation and protectIon of
principal. maïntena nee of sufficient liquidity. diversification, and competitive rates of return.
Treasury Bills (T-Billst Short terrl1 securities sold by the federal government Tbey have
a ma1urity of one year or under, and are sinlllar to discount notes.
Treasury Notes: Securities issued by the federal government \yith maturities beh.veen 1
and 10 years Interest is paid in semi-annual coupons until maturity.
Unrealized Gain (loss)~ The difference betvv'een the price paid for an investment plus or
minus any unamortized discount or premium and the proceeds that would be realized íf the
investment \~ere to be sold on a specific d~te.
Weighted Average Maturity (WAM) A 111eaSUre of the average length until maturity for
the investment portfolio based on the number of days untïl maturity for each investment
weighted by the dollar value of each investment.
Yield Curve: A graphical representation of the principal that the market for investments
with longer maturittes demand, a higher yield due to greater uncertainty in the financial
environment than do shorter term investments. The yield curve is typically up'Nard sloping
but varies greatly in shape and steepness based on economic and politiçal factors.
110
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.Appe nd ix J
Yield to Call fYTC): The percentage rate of a bond or note if the investor buys and holds
the security until the call date. This yield is valid only if the security is called prior to
rllaturity Generally. bonds are callable over several years and nornlally are called al a
slight prerTliUl11. Tile calculation of yield to call is based on coupon ra1e, length of tirne to
call, and ma rket price.
Yield to Maturity (VTM): The percentage rate of return paid on a bond, note, or other
fixed income security if the investor buys and holds it to its matunty date. The calculation
for YTM is based on the coupon rate. length of thne to maturity. and ma rket price
(purchase price). It assumes that coupon Interest paid over the life of the bond 'filII be
reinvested at the same rate.
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CITY OF
NORTH RICHLAND HILLS
Department Finance
Presented by: RTorres/LKoonce
Council Meeting Date: 5-22-2006
Agenda NO.F.10
Subject PU 2006-044 Authorize Contract with Champion Turf Farms for the Greens
Reconstruction at Iron Horse Golf Course - Resolution No. 2006-041
In the 2005/06 Capital Projects budget, Council appropriated funds for the greens
reconstruction at Iron Horse Golf Course. The average life span for a golf course green
is 10 to 15 years. The greens at Iron Horse are 14 years old and are currently not at a
competitive level with other area municipal and private golf course facilities. Council will
recall that several options were considered for the replacement of the greens-doing
part of the course over a couple of years, replacing one hole at a time and utilizing
temporary greens, or total replacement at one time, as well as other options that used
some of these ideas. It was determined that doing all greens at one time was the most
cost effective and efficient method. This process will require closing the golf course
from the first part of July 1 through the middle of September. It is necessary to close
the golf course during this period because it is the time of year that can re-establish new
turf in the shortest time.
The reconstruction process involves spraying the greens to kill the existing grass,
ground aeration, adding supplements and soil enhancements, resprigging and sand
leveling. Then lots of heat and water take care of the rest. Considerate care and
maintenance will be necessary to ensure that the reconstruction of the turf is successful.
The particular grass chosen for the new turf is Champion Dwarf Bermuda. It will be
replacing 328 Bermuda. The newly developed grass has proven to be far superior to
the current Bermuda in terms of appearance, speed, putting quality and durability.
Recent plantings have been done at Indian Creek Golf Course and Diamond Oaks
Country Club and are proven to be successful.
The grass product that will be used by Champion Turf Farms is patented so formal
bidding cannot be done if we are to use this specific product. It is considered a sole
source product. To replace all the surface area of the greens at iron Horse will involve
approximately 120,000 square feet of new turf. The attached contract is negotiated to
$.45/square foot, for a total contract amount of $54,000. It is estimated that there will be
another $25,000 needed for various other materials supplied by EAGL employees,
making the total estimated cost of turf replacement at $80,000. $100,000 has been
budgeted for the turf and grounds improvement program. During the closure period!
golf course employees will be tasked with painting, replacing sod in worn areas, and
various other face lift projects. By the time the golf course is re-opened in September,
there will be substantial improvements done. Obviously, staff's intention is to minimize
the time Iron Horse is closed, but we will also plan for a grand re-opening event as soon
as we have clea r vision as to the date.
During the time that greens are being replaced and growing, the driving range, Iron
Horse Club House, and restaurant will be open to the public.
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A memo has been attached that clearly indicates the various steps necessary for the
greens replacement. We have also attached a listing of other golf courses that have
planted the Champion Dwarf Bermuda.
A representative from EAGL Golf and Champion Turf Farms will be present at the City
Council meeting to answer any questions.
A Conflict of Interest Questionnaire has been provided by Champion Turf Farms and is
on file with the City Secretary.
Recommendation: To approve Resolution No. 2006-41
~I~H
RESOLUTION NO. 2006-041
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH
RICHLAND HILLS, TEXAS THAT:
The City Manager is hereby authorized to execute the contract with Champion Turf
Farms for the greens reconstruction at Iron Horse Golf Course as the act and deed of
the City.
PASSED AND APPROVED THIS 22nd OF MAY, 2006.
ATTEST:
CITY OF NORTH RICHLAND HILLS:
Patricia Hutson, City Secretary
Oscar Trevino, Mayor
e APPROVED AS TO FORM AND LEGALITY:
George A. Staples, City Attorney
APPROVED AS TO CONTENT:
Department Head
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T-LJR l·~ F./'\.RM S
3606 Avenue F . Bay City, TX 77414
979-245-3231 · 800-463-8873 . FAX: 979-245-1635
PLANTING CONTRACT
This agreement is dated this 25th day of May, 2006 by and between CHAMPION TURF
FARMS (hereafter called "CTFII) and CITY OF NORTH RICHLAND HillS (hereafter called
II Owne r").
ARTICLE I - WORK
CTF to provide supervision, equipment, materials, and technical skills to plant the
greens of IRON HORSE GOLF COURSE IN NORTH RICHlAND HillS, TEXAS. CTF to provide
guidance and technical assistance to owner in preparing the greens for planting using
the No-Till Greens Renovation™ technique.
ARTICLE II - CONDITIONS
1. ONner to be responsible for properly preparing the greens to be planted using the
No-Till Greens Renovation™ technique. Instruction and guidance on the procedures
to follow for this preparation shall be the responsibility of CTF. CTF shall ensure that
the preparation for planting is adequate by providing specific instructions to the golf
course superintendent on the procedures to follow. CTF shall also provide trained
personnel to inspect the preparation prior to planting the greens.
2. Owner to be responsible for thoroughly checking and operating all irrigation systems
beforehand to ensure dependable performance during the planting and grow-in
period.
3. ONner to be responsible for monitoring irrigation of planted areas.
4. CTF not to be responsible for erosion or other damage caused by Acts of God after
pia nting.
5. CTF will be responsible for providing instruction and guidance in carrying out the
proper irrigation and care of newly planted grass.
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ARTICLE III - PERFORMANCE
The greens, including the practice and nursery greens shall be sprig-planted at the rate
of 20 industry-standard bushels* per 1,000 sq. ft. using CHAMPION Dwarf
Bermudagrass sprigs. CTF personnel shall broadcast the sprigs by hand over the
areas to be planted as designated by Owner. Greens will then be top-dressed by
Owner using their top-dressing equipment and sand.
~ CHAMPION Dwarf Bermudagrass sprigs will be tightly-packed into buriap bags which measure
approximately 2' x 3'. The quantity of sprigs inside these bags is defined as approximately five industry-
standard bushels.
ARTICLE IV - GUARANTEE
All work shall be performed in an expedient and workman-like manner. All grass to be
fresh, healthy, viable sprigs suitable for planting. Refrigerated transport shall be used
when necessary to maintain viability of sprigs transported over great distances. If any
areas are not established satisfactorily 20 days after planting, more sprigs will be
provided at no cost to Ovvner.
The successful transplanting of grass sprigs is greatly dependent upon the frequency
and amount of water provided to the sprigs in the first few days after planting.
Depending upon the temperature, grass sprigs exposed to direct sunlight may lose
viability in a matter of hours. It is therefore critical that the recommended watering
practices are followed.
No-Till Greens Renovation™ Method. Greens which have been planted using the No-
Till method are guaranteed for a period of three years from the date of planting. If
during the warranty period, Ovvner determines that the greens require reconstruction to
improve their performance, CTF will provide planting stock for planting the
reconstructed greens at no cost to Owner. This warranty is limited to CTF providing
additional planting stock to the owner. Any other costs or expenses incurred, including
revenues lost due to closure, are not covered by this warranty and Owner agrees that
CTF shall bear no liability for any additional costs or expenses. Ovvner agrees to hold
CTF harmless for any liability that may occur in the event the greens are reconstructed
at a later date.
ARTICLE V - PLANTING DATE
CTF agrees to make every effort to perform the work at the scheduled time as agreed to
with Owner, the third week of July, 2006. Owner agrees to make every effort to have
greens prepared as agreed to with CTF. Because of the nature of the work to be
performed, weather can cause delays and require changes in the schedule. Both
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Owner and CTF acknowledge this possibility and agree to hold each other harmless in
the event of a delay or change in schedule caused by weather or Acts of God.
ARTICLE VI - QUANTITIES AND COST
A unit-price of $0.45 per square foot of area planted as described in Article III.
A lump-sum amount is calculated based on estimated quantities and the unit prices
herein. If there is substantial deviation from estimated quantities, unit prices sha II be
used to make adjustments.
Estimated Greens Area - 120,000 sq. ft. @ $0.45 sq. ft.
= $54,000.00
Total Based On Estimated Quantities
$54,000.00
ARTICLE VII - PAYMENT
Payment shall be due to CTF upon completion of planting of sprigs.
ARTICLE VIII- PROPAGATION RIGHTS
CHAMPION Dwarf Bermuda grass is protected by United States plant patent number
9888. Unauthorized propagation is prohibited. Owner is free to use material from a
nursery green to make repairs to other greens on the same course.
The techniques and procedures used in the No-Till Greens Renovation™ process are
proprietary trade secrets of CTF. Ovvner agrees not to divulge any of this information to
outside parties. The instructional materials to be provided by CTF are for the sole use
of Owner, and Owner agrees not to share or duplicate any of this information with other
parties. Misappropriation of Trade Secret information is a violation of the Uniform Trade
Secrets Act.
CHAMPION TURF FARMS
3606 Ave F.
Bay City, TX 77414
CITY OF NORTH RICHL,ÄNO HILLS
By:
By:
.
Scott Brown: Secretaryrrreasurer
Larry J. Cunningham: City Manager
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E!'a~'
Memo
TO: Richard Torres
cc: Dale Folmar, Keith Hanley
FR: Scott Carrier
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RE:
Iron Horse Greens Renovation
The steps for the no-till process are very precise. The goal is not to simply "replace" the
turf, but to also restore the soil as well. None of these steps should be changed without
the consent of both Champion Turf Farms and Myself.
3.
4.
5.
. 6.
1. Reclaim old putting surface. Over time, greens tend to get "rounded out" due to either
mowing practices or environmental stress conditioos. This is the time to move the
greens out to their original greens cavity. Kevin has already done this and has been
slowly lowering the height in preparation for the renovation.
2. Apply Glyphosate (round-up) herbicide and Morris Brown's proprietary activator mixture.
Golf course staff under supervision from CTF will spray the turf. Immediately following
the application, a roller will follow to "squeegee" the mixture down into the crown area of
the plant.
Drill and Fill aerification. This is an optional step, but one that I believe is critical at Iron
Horse due to years of accumulated salt buildup. This is an opportunity to remove poorly
draining material and replace it with clean sand.
Defoliation. Aggressive verticutting and scalping will be done to remove the existing turf.
This will be done multiple times on every green. This process takes approximately 3
days to accomplish.
Aerification with 5/Btr' inch hollow tines. This will be done a minimum of twice. The
expanded areas of the greens will be done at least three times.
Pre-plant fertilizer applied. All soil and nutrient amendments will be applied at th is time.
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7. Sprigging and Topdressing. CTF will provide all sprigs and the labor to spread them.
Golf course staff will perform the topdressing under CTF supervision to ensure proper
uniformity and depth.
8. Grow-Inn
The first week constant water will be applied. Each green will water each hour. Following this
week water will be applied 3x/day for 2-3 days. For the next week greens will be saturated in
the mornings.
Three pounds of Phosphorous per 1 OOOft2 will be applied within the first couple of weeks. 1-
2#'s of nitrogen will be applied per week.
Mowing at 3/16th of an inch could occur as soon as three weeks (assuming the coverage is full).
After a few mowings, light verticutting (blades at zero) will be performed to clean up stolons that
have not integrated into the mat.
Two more aerifications will be performed around the fourlfive week mark.
Mr. Torres,
If you have any questions feel. free to contact me at any time.
Thank you,
Scott Carrier
(972) 342-9359
scaríer@eaQIQolf.com
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Andalusia t, I 13 Reno.¡ation: No-~i: 2004
Glcr,dalc A2 '8 RenovatlQn: No·~Lt 2002
Patter$CH1 LA 18 t..Je~\' :ons!ruc:tion 2004
Austin TX 13 ~enovat¡oq: Reouild 199ì
Grec"'H/ilc NC 18 ~enovat:o': No·TU 2003
Me bïle AL 18 Re no·' atlO1: Rêbuild 1998
Se~atobia MS 18 =<c: now' at !O~): No·lld 2001
Las Vegas NV 9 Qe'10vat,o"\ : ~~o· Tn I 2002
Austin -X 18 Ne',A' Constructior 1999
Austin .,..x 18 Rc.: no'J at on: Rebuid 19Si
Bate n Rouge LA 18 Re'1o',aton: R.ebl.,¡(j 1997
North Myrtle Beach SC 18 Renovaton: r\o·Till 2002
Ch~ttanooga TN 18 Renovaten: t\o·Till 2003
Co,'angto" LA 18 Renovaten: R eb",.i:d 1997
Conro( TX 18 Re n 0'-/ at on: Rebuild 1996
San A n9 cia TX 18 Renovaton: r-. 0- Till 1996
Moncks Corne r SC 18 Renovation: ~c-Tìl: 20(;5
DulLJth GA 9 Renc·vat¡c·n: ~c-Til 20-05
Mempr IS TN 18 R('f1ovatlen: No·T ï II 19S9
SishoJ)\'.lle SC 18 R('11 oval! en: No-Till 20(3
Blythe'..· ¡ lit.' Aft 18 Rt:'11ovdtl c·n: NQ- T II! 20C2
Boca Raton Fl 18 R('f1 (1'J4:Jtl cn: Rebuild 1~~9
BOC..1 Ratcn Fl 18 R('n O'¡,)tl en: Rebuild 19~7
Na;.les FL 18 N('w COr'struct on 19~7
Na Clles Fl 18 New C () " s t r tI c t 0 r¡ 19~5
Bonita Spríngs FL 18 Renc'/;aticn REbuild 20CO
Bonita Springs FL 1B Renc'/fatì c n: Rebuild 19S8
Bonita Springs FL 1E Ren C 'I .atic n : Rebuìld 1~S9
Beaum c·nt TX 1E Rencvaticn: No-Tìl 20C4
Brentvlocd TN 16 Renovaticn: Rebuild 2C03
Bryan TX 16 Reno vaticn: No-TìI 1S99
Bridgeport TX 9 Renovation: No-Tìl 1S96
Greenvll:e I\C 16 Renovation No-ri:¡ 2CC4
Ro:kwall TX 16 Ren:vati:n: No-TII 2C03
DCCa1lJ r AL 18 Renc'Iati:::n: No-TII 2C04
Cabo Sa') ...lJcas MX 18 New Cor: SIr uctlon 1:99
Fawl~ys isla nd SC 1E Ren~vatiGt1 : No--il 2:05
Weatherford TX 1~ New COP51ructíon 1997
Tyler IX 1E Ren:vation: Rebuild 2C03
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Houst:)n
Ea9h~vllle
Kenner
T igc- rv ill('
ErlcntG P
C I eo a "V': ..~ t e r
Rutherfordton
t-.ew Odeans
Coppc:rhdl
Ta'bor:
8ato'î ROLC)C'
Carrol ton
Cyp~C's~
F art Vyers:.
CP-q '.. ep.n
Fort W::r1h
COiJglas
Marion
Memph.s
E I Ca f:1pO
McKinney
Co!urr:bLls
EIPaS8
Garl~lnj
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Tyt·,
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Greenw¡:;)Jd
H a '1' ¡ i n
Soçia! Cir::k
H a r ! í "l·~ to n
Myrtle El"72Ch
Maulrlr
TX
TX
TN
LA
SC
NC
Fl
NC
LA
TN
NC
LA
TX
TX
TX
FL
AR
TX
GA
SC
TN
TX
TX
~ Renovation: Nc-:íH
13 Renovation: No-T¡II
18 New Constructíon
'3 Renovahon: Rebuild
18 Rcnov?1tion: No-Tí t
RenO'<l'ation: Re oui d
18 RenOvation No-Tit
Renovation' Nc·Tíli
~ Renovation: Reouild
~ R cnov atia n: No-TiU
1:3 Renovation' No-TiL
1;3 Renovation' Rcouild
13 Rc-novation No-Till
1.3 Ne~' Construe.tiûn
13 Renovation' Nö-~ìl
13 Ren()vttt¡on~ Nö-"!'TI
9 R~navaticn: Rebuild
R~novaticn N:)-TiI:
13 Renovaticr: Nc·Tih
13 RenovatÎcr: Nc·TiI
18 R,:no'l;)tton: No-Tit
9 R enov atio n: Nc· TiL
18 Renovation: Rebuild
9 Renovation: Rebuild
, :3 Reno... 3tio n: No-Ti'!
18 Rrflovatïon: No-Till
13 Renovation' Nt}-TU
f Reno,,'ation' Nc-TiH
1a Renovation Nc-Til'
,~ Renovatiûn Nc-Tîl
13 RE:novaticr~ No-TU
,.3 New Construction
9 New C ens r ruction
£0 Renovaticr: Rebuild
1·9 Renovaticr: No-TU
13 Renovaticr: Rebu:ld
1 3 RenovaUcr: Rebu.ld
" ~ R enov atlc r: No-TII
9 Rf:novatic,~ No-Til
1S Renovaticn No-TW
1 E Renovaticn Nû- in
9 Reno'laticr Rebu:ld
1 E Renovaticr Nc·-Til
MS
TX
TX
TX
AR
TX
TN
FL.
FL
TX
LA
GA
TX
TX
MS
TX
GA
TX
SC
SC
2003
2002
2002
1998
2005
2004
2005
2¡)¡J4
1997
1998
2003
1998
1999
1999
2005
20(}S
1997
2004
2ìjQ3
2002
2005
2004
2001
1997
2004
2000
2005
200..1
2003
1999
2005
'997
1998
1997
2;)05
19'37
2,JJO
20J3
2004
2005
2005
1999
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Mobile AL 18 Re'1o'laton: ~..o·Till 2004
Burleson TX 18 Rc no vat: C1n: Reb_iid 2004
Bryant AL 9 Renovat¡on: Re-b;.;Ud 19£08
V er'l::> n TX 18 Renovation: Re-b;.;lÌd 19f7
Kon'1 HI 18 New Co r,struct.o r 20C1
Na;:)les FL 18 RencvatJcn: Rebwlld 1998
Hol is OK 9 Nf:y., Constructon 20C3
Bíg Sandy TX 18 Ren C\latl c·n: RE'bwIJd 1~S7
Tyl~r TX 18 R('ucvatÎcn: No-Till 20CS
Humboldt TN 18 Rt,,.. oV<tti en: Rcbudú 2CC1
West Palm Beach FL Renovation: Rebuild 2CC4
West Palm Beach FL 18 Rencvaticn: R c b u í I tt 2(:03
Ida be /I Ok 9 Rene vatic)): RcbuiltJ 1£-98
CarrQJton TX 18 Rene vation: No- ....ill 2:05
Da,'lora Beach FL 1 E· Ren~ vati~n: No- "'j: 2:05
Myrtl~ Beach SC 1E Renç vati':n; No·...¡.' 2:05
Jers€y Viilage lX Ren: v iti:r,: No· T d 2:04
Ku~ ston NC 15 Ren:J vation: No-TT 2:00
Ho:ly Springs MS 15 Ren::J vati':Jn: No-Tt: 1999
Beaufort s: 15 Re n:: v¡ti·:Jn: Rebuild 2:02
L J\-.'t" n CK 15 New Construction 1999
Phoenix t\V 1E Ren:"..' a tion; No-Th 2:03
Naples FL 1E Ren·:.; y~tion: No- T Ii 2:03
Naples FL 1E Rcnoy¡:tïon: No- T II 2:03
Naples Fl. 18 R(>n:jvation: Nc:- T H 2:04
Fort Myers Fl 18 RenðtJ:HÍ()n: Nt)·Tíd 2J05
BOïnton Beac,,", FL Renövation: Nc..·T. II 2:04
Eastl~nd TX 9 Renovation. Nç.·T II 2:02
Longs s: 18 Ren'J" ation No·1j;} 2J05
~"o~ston TX 1 ~ Reno"~ti(1n: Nc-T!! 2)03
Rincon GA 18 Renovation: Nc-Tdl 2004
r-Ighland Hornes AL ~4 Renovation: Nc-TII 2004
P ìnetops NC 18 R en 0" 2 t í 0 n : Nc- T: tI 2003
C i} In de r1 T'J 1~ Reno.. a tion: Nc-TII 2003
Marsh~~1I IX ,g RenovJtion Nc^T:lt 2003
Palm City FL 19 Reno'v2tion: No· Till 2005
A bilen e TX 1 ,~ Renovation: Nc·Tdl 2Ø04
Elufttcn SC 13 New Construc,tÎ:>o 2003
Kncxv¡ile TN Reno'" ation: Nc-T:!I 2003
'Nest Memphis AR 13 Reno.. a tlon: Nc..T:11 2002
Bonita Soring~ FL 19 New ConstrLctlon 2001
80nita S:Jrin9S Fl 13 Ne'N Constn..cÜon 2000
Memphis TX ~ Renov í.1 t ion: Nc-T;II 199B
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Memph:s TN 13 Reno,'3tícr' ~"c- Til< 1999
CoileyÝ .lle TN 13 Reno" atia n: Nc- Till 2000
Hilton t-~ad SC 13 Reno"ation: Reouild 1998
Naple~., FL 18 Reno~atlon: No..T ¡¡ I 2005
Napl e~ Fl 18 R¿}nov'atlon: Re~uild 2004
Cr05D~ TX 18 Renovation: No·Til 1999
North Ätlg fJstð SC 18 Renovatlo,: Rebuild 2005
Sa04 Antonio TX '8 R€"10v'¿StiO': Rebuild 1997
Denton TX '8 Re~)ovabo'l: No· Tid 1997
Spartanb...rg SC 18 ~e")ov at .·O~): No- Titl 2004
Cxfo"d MS 18 RC'10'''' at or): No· T iil 2003
Cr2n;¡e-burg SC 18 RC'l&:'V at· on: No-1 ill 1997
Hilt:::n Head SC 18 Renovator'\: Rcb...,id 2002
HlltJn Heaú SC 18 Reno'¡at:on: N:ì- Ti I: 2005
HtI:;:'f) He'ad SC 18 Reno'J at on: Nc- Tit: 2005
L Y n rt H ~ '..' eo " FL 18 Reno'laton: N,:;- TH: 2005
P arad tse V J 11(;; A.Z. Reno'"aton; Reb'~ï¡d 2004
Pars TN 9 Reno'Jaton: ~o·Till 20C1
~aduc¡;h KY RCHQ'Jal¡ on: t\o-Tïll 20C=4
Gonzf.! L$ LA 18 Ren C''.I' ati on: 'l,:·TiL 20C5
Gonza. C$ LA 18 Renovatic,n: Re-bwild 1997
Boni1ct Spnngs FL 18 Rcno'¡aticn: Rebuild 2000
8oni1~ Springs FL 18 Rcno·,attcn: Rebuild 20C1
F 0 '1 S J ¡ :1: L.J C i e FL 18 Renovatlol1 : No- "Tld 2(>05
L e)CÎr1Q!on TN 9 Renovation: N 0- T II 2CC1
Bra:i en to ... FL 18 Rencv.ahon: No-TII 2003
F risc:) TX 1B Rencvalicn: No-TII 2003
Fhcen:x A2 1E Ren:': v ati en No-T!I 1997
Hllt01 Head SC 1E Rencvati~n ~ No-Tit 200.2
Hllt01 r-t e a j SC 1E Ren:: vati:n: No-Tit: 2C04
H lito., rleao SC 1E Ren: valien: No-Tit: 2:03
V>Jes: Palm Beach FL 1E Ren: va lion : No-Tit : 2:03
V-Jes: Palm Beach fL 1E Reno vati·on: Re buíld 2004
Puerto VaLarta MX 18 New Construction 1997
Green Valley AZ 18 New Construction 1998
Memphis TN 18 Ren·ovation: Ne·.. I: II 2:03
Naples FL 18 Renc~atlcn: Rebullà 2COO
N~~pj(\$ FL 1E Reno 'tIati::Jf1: RebUIld 1998
San A ng?!û TX 1E N(~w Construction 1396
Midland TX 1E Ren,:')vation Re build 1997
San Antonio TX 18 Ren'j v 2 ti;jn ': Re build 1998
F ·~ur Oa..s NC 18 Renovation: No-Till 2:=05
Port ::;"érlotte FL 1E Renovation: No· Till 2005
c::>ursC5 With Chllmpìon Greens ~20:5 LlPDAiES 'II. PROGRESS'
:".', :~ ~ ,. ~ ;.
Jupiter ~L ., E ~ew Co:structon 2002
L I ttt e Raver Sc 16 f\e nc·'" a llo n ~ No-1m 2002
My rttc Beach Sc 18 RCllC\i3t1on: No-liU 2004
Channc\v;CW TX '8 New Co""struct,on 1997
CoppeU --:-X 18 RenQvation: Rebule 2001
Gf¿nd Pralne TX 18 Renovation: No-1\" 200~
\"Vi ", a rns to r\ ~"C 18 R eno\i3tion·. No-1m 2Q04
Hilton Head Sc 9 Renev ation: RtbuiC 200'2
Las \I~9Øs N'J 18 R.cnevation. Rcbuìd 200::'
Boca Rate n ;:L 18 Reno\;' ation: RcbUìd 200::'
Naø'C'~ FL 18 Renovation: Rcbüìd :2 0(\(
Na olC's FL 18 Rcnc.\iation: Rcbuid 200~
Orl4\1do FL 1£ RenC>'''' atìon: No-1ìU 2003
San:ee Sc 'B Renc·.....ation: '40- Ti\l 20Cl5
John's stand Sc 18 Renc·.....atlon: No-1IU 2004
SaJth p\usburg TN 9 Rênov ~tíon: Rebuic 20:1C
pensac.ota FL 18 Ren 0\; atíon: No-TUI 2005
Seabr:>ok Island Sc 18 Rene.\.' ation: No. Till 2005
Crista' Rì'¡er FL 9 Renc....·atíon: No- TI\I 2005
Mt. P\easant ~X 9 New Construct'on 1997
Char1eslon Sc 18 Reno....ation: No-1 in 200~
Bo "Ita S pnflgS ;:l 18 New COr'stfUCt:On 200C
BorÜta Springs ;:l 18 New Corstruct:on 2002
Bonita Spri"gs ¡;L 18 New Co~,struct¡on 19SE
Baton Rcugc LA 18 Rcno>vahon: Rcbul.c 19SE
PH;k'NICk Oall\ TN 18 Rcno\iJlton: No-1 ¡It 2002
Hdton Head Sc 12 f«('nc\i alton: No-11" 200~
H dt on Head SC 18 RenovatIon: No·1IH 2001
Silsbee "''X 12 Rênc·\iatton: No- 1 ¡It 2004
S ; ¡./ f ./,¡ , n c S ~J: ,...., F art Rucker AL 27 Rene·v' at1on: No.1 iI\ 2004
M1. P\easant 5C 1B Rene·v· atlon: No-1in 2004
San Antor-Í:::> TX 18 Renc\¡aÙon: No-1 in 2004
Easley Sc 18 R&ncV atíon: No-l iH 200~
Shreveport LA 18 Renovatlon: RebJ\·C 1997
Mount O¡¡'Ie NC 18 Reno'~'ation : ~o- Tit! 200~
LøgunaV¡sta TX 18 New Construct on '9SE
Pear:and TX 18 ReneV' atlon: NO-11U ¡OO¡
Aledo TX 18 Nt'W Construct on 2001
r~C'w Ibe~\(~ LA 18 Rellc....3tion: No·1 iU 200~
New \be"\<1 LA 9 R ('-110....:1tíon: REbuír: 19~t
La~) 'II ~ga5 N'V 18 R.eno....',1tion: Rf:buic 200~
Ninety-Six Sc 18 Reno'v atìon: No-1 ì" 2QC1¡
HcU,'wcod Sc 18 Reno...·.at¡on: No-liB ~OCi;
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Sunrlse r:l 1 E· Renc\latiotî Nc-1 i\l 2005
Dennis TX 1E. R enc~ atic·r, Rcbudc 19:ì
Rivc~ic...., FL 1 E Rencvahcr No-Tir 2:1:4
T aiwa·~ Re 1E RencvaHcr No·Til 2J01
Melbourne: FL 1 e Renovaticr Rebuld 1998
Apache Junct¡on AZ i E New const"uction 1997
Apache JUnction AZ 13 New Construction 1998
Sweetwater TX 13 Renovation: Nc-Till 1998
Sugar~nc TX 13 RenovaUon: Nc-T\\\ 2003
sugariand TX 13 R~no"atìon: Nc--¡n 2004
C a'" e Creek AZ 13 Re-no"ation: Nc--¡\ 2004
Wins TX RenOJ31ior~: No·Td 2004
Ne~ Braunfe\s ~X 12 'J ~'.'-' Construction 1997
St. :=; rancls'itlle LA 18 ~e no''¡ at,on: Rebuí\d 1999
Wr.mlogton NC 18 Re "'\O''¡ at: on: No-1\! 2005
Kat,. ·~x 18 Re'1o',¡at on: RebuLd 2005
Cdessa FL 18 RenO'J at on: No-1HI 2004
l. a".c Worth FL 18 Reno·J at: on: No-Till 2004
l a "c- Worth Fl 18 Re no'; at on: No-1 H \ 2004
La~(- Wortt) Fl 13 Renovaton: No·TiI\ 20Q3
Co",,~gto"" GA 18 R (' no ''¡ a ti 0 n : Nç·-lil 2005
Lewis\iU~ NC 18 R(\f,o',¡ation' ,.. o· T ï iI 20('"3
E n ~ is TX 9 R(' "o·,¡.ati on: No·-líl\ 2000
Descto TX 18 Rcno'Jation: No-Til! 20(3
Golcsbc,ro t\C 1£ R en ('.> ~¡ .a t ¡ en No-Tít' 20(3
Weslacc TX 1f; New Cor5tfUct on 1foS7
South'a'~e 1X 1f; Renc-~J atì en: No-Tit 19S6
Chcsp.r, SC 1[ Renovation: No-Tìl 2C=C~
Spring Hi\ fL 1E Renovation: No- -it 2CC5
Har\ingeq 1X 1E Rencvahcf1 : No- -it 2:05
80'¡,;i(: 1X 9 Rel'~ vati:cn: RebuIld 1996
Memphis 'TN 1: Ren~ v~tl:;J': Re bUIld 2:04
Ho...ston TX 1E R c n 'J v ~ t ï 0 n : Re bUJld 1~96
f "'sC'.o TX 1E NC"H Construction 2GOO
Tucson AZ 27 R('nov~t¡on Rc blJ11d 1397
T oj nica ~~'S 1E New Constructíon 2J03
1 J pc. 0 \'5 12 Reno" 2tion ~ No-Tn 1998
ABen TX 19 Reno"atìon~ Nc-T:\I 2;)04
f\. aplcS FI... 15 New Construction 1998
8aton RO\..igc LA 18 New Construction 1998
Chattanooga TN 1a Rl:no>latlon: Nc-Tdl 1997
Gre-e'"\\;He Sc I ¢ Rer:o>lat¡on: No-Till 2003
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Plan r City FI 18 Renc·vation: No-Till 20cÞ4
HlImhl~ "'!"x 18 Kenc·vation ~ No-Till 2003
Fort Polk l.A 18 Renovation ~ No- Till 2005
Fort W()~.... "'x 18 New Co"'struction 200C
Roser burg ....X 18 New Co"'structon 1998
Braza ria ....X 9 New Co:"'structon 1995
Conroe :-X New Co'":structon 2002
Westen =L 18 Renovahon: 'Ie·· Till 2005
\'Ves ten =L 18 Renovation: "Jo- TIll 20(14
T ri1 it,. ~X 18 New COr':'Struc:ton 199~
\\lltcht~ F øll~ ~X 18 Renovation: No-Till 1997
Mc!'nphl$ TN 18 R<'\f1o\i J lion: No -1 1 II 2003
Union Ctt, TN 18 Renc\iJlton: No-T ¡II 2001
Na piC's FL 18 Renc,v alion' Rebui:c 2003
WI'l1berly ~X 18 Rene·,,· ation: Rebuic 1997
Fort '^' 0 "t "ì .....X 18 Rênovation: No-Till 2002
Columtia SC 18 Re-novatíon: No· Till 2004
Tamarac FL 18 Renovation: Rebuíd 1997
Charleston SC 18 Renovation: RebJíd 1998
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.
,
CITY OF
NORTH RICHLAND HILLS
DepartmentPlanning and Inspections
Presented by: John Pitstick
Council Meeting Date:5-22-2006
Agenda No.F.11
Subject GN 2006-044 Consider Appointments to Boulevard 26 Oversight Committee
Background:
The cities of North Richland Hills and Richland Hills continue to work together to
revitalize the Boulevard 26 Corridor. The Boulevard 26 study calls for a total of 23
general strategies. Following prioritization by both Councils a total of 10 major
strategies were recognized as primary priorities. Several strategies have been
implemented including the renaming and branding of South Grapevine Highway to
Boulevard 26 with modern and revitalized architecture to encourage redevelopment.
The interlocal agreement between Richland Hills and North Richland Hills stipulated the
formation of an Oversight Committee consisting of 2 Councilmembers from each city
plus 1 at-large business person. The Oversight Committee was established in June,
2004.
The City of Richland Hills current members are Phil Heinze and Kenney Davis. North
Richland Hills current members are JoAnn Johnson and David Whitson. The
Oversight Committee also elected Mike Rigby from Liberty Bank as the at-large
member of the Committee and elected him as the current chairperson. The Oversight
Committee appointments are one year terms that may include reappointments and run
from June 1st through May 31st.
The Oversight Committee is currently working on several strategies including making
recommendations on the final design for intersection improvements at Rufe Snow and
Boulevard 26 and Glenview and Boulevard 26 that are in keeping with adopted branding
effo rts.
Ms. Johnson is retiring and her presence and insight will be missed on the Oversight
Committee. Staff is recommending that Mr. Whitson remain on the Boulevard 26
Oversight Committee because of his commitment and familiarity with previous efforts.
David Whitson has served since January, 2005 being a replacement as a result of
Frank Metts retirement.
RECOMMENDA TION:
Appointment of David Whitson and another member of City Council to the Boulevard 26
Joint Oversight Committee.
CITY OF
NORTH RICHLAND HILLS
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DepartmentCity Secretary
Presented by: Councilman LewisAgenda NO.F.12
Council Meeting Date:5-22-2006
Subject Information and Reports - Councilwoman Compton
Announcements
City offices will be closed Monday, May 29, in observance of the Memorial Day Holiday.
Garbage will be collected by Allied (Trinity) Waste Service.
The City of North Richland Hills continues its free spring concert series at Green Valley
Park, 7701 Smithfield Road. The next concert will be "Fishing for Comets" and USouth
Austin Jug Band" starting at 6:30 p.m. on Friday, June 2nd. Admission is free. Please
bring your lawn chairs and blankets. For more information, call 817-427-6620.
Dan Echols Senior Center will hold an indoor rummage and craft sale from 8 a.m. to
4 p.m. on June 16. To rent a space or for more information, please call 817-281-9267.
Kudos Korner
Every CouncU Meeting, we spotlight our employees for the great things they do.
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EMS/Firefighters Scott Gray and Jeff Peterson, Fire Department
A letter was received from the EMS Medical Director thanking Scott and Jeff for their
assistance and support at the Annual Texas EMS Conference in Austin. The two
represented our City proudly and exhibited professionalism and confidence in their
presentation, the letter said.
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Department City Secretary
Presented by:
Subject Adjournment
CITY OF
NORTH RICHLAND HILLS
Council Meeting Date:5-22-2006
Agenda NO.F.13