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HomeMy WebLinkAboutResolutions R2006-001 to R2006-042 RESOLUTION RESOLUTION NO. R2006-00/ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS AUTHORIZING THE FILING OF A PROJECT APPLICATION WITH THE NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS FOR A REGIONAL SOLID WASTE PROGRAM - LOCAL IMPLEMENTATION PROJECT; DELEGATING AND AUTHORIZING SHIRLENE SITTON, RECYCLING MANAGER OF THE CITY TO ACT ON BEHALF OF THE CITY IN THOSE MATTERS RELATED TO THE APPLICATION FOR GRANT; AUTHORIZING HOWARD MARTIN, INTERIM CITY MANAGER, OR HIS DESIGNATE, TO ACT ON BEHALF OF THE CITY IN ALL OTHER MATTERS THAT ARE RELATED TO THE PROJECT APPLICATION, PLEDGING THAT IF FUNDING FOR THIS PROJECT IS RECEIVED THE CITY OF DENTON, TEXAS WILL COMPLY WITH ALL PROJECT REQUIREMENTS OF THE NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENTS, THE TEXAS COMMISSION ON ENVIRONMENTAL QUALITY, AND THE STATE OF TEXAS; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the North Central Council of Governments ("NCTCOG") has been directed by the Texas Commission on Environmental Quality ("TCEQ") to administer solid waste project funds for the implementation of the NCTCOG adopted "SEE Less Trash Regional Solid Waste Management Plan"; and WHEREAS, the City of Denton, Texas is qualified to apply for project funds under the "Request for Project Applications"; and WHEREAS, the City Council of the City of Denton has expressed their support and interest regarding the above-referenced solid waste department project; NOW THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City Council of the City of Denton, Texas hereby delegates and authorizes Shirlene Sitton, Recycling Manager of the City of Denton, Texas, to complete the application and send in the application to request project funding under the North Central Texas Council of Governments' Request for Project Applications of the Regional Solid Waste Local Project Funding Program; and the City Council hereby and authorizes Howard Martin, Interim City Manager, or his designee, to act on behalf of the city in all matters, other than the completion and sending in of the project application, that are related to the project application, and any subsequent project contract(s) that may result therefrom. SECTION 2 Should the project be funded, then the City of Denton, Texas shall comply with the requirements of the North Central Texas Council of Governments, the Texas Commission on Environmental Quality, and the State of Texas. SECTION 3 The project funds and any project-funded equipment or facilities will be used solely for the purposes for which they are intended under the Project. 1 SECTION 4. The activities of the city shall comply with and support the adopted local and regional solid waste management plans adopted for the geographical area in which the activities are performed. SECTION 5. That this resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the //A day of 2006 CIL EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY By: 14M co U S:\Our Documents\Resolutions\06\TCEQ-NCTCOG Grant-SW-Resolution-2006.doc 2 RESOLUTION SAOur Documents\Resolutions\06\Geriatric.doc RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE MAYOR, AS REPRESENTATIVE OF THE CITY, TO ISSUE A LETTER DESIGNATING THE GERIATRIC SERVICES WORKGROUP, AS "LOCAL COUNCIL" FOR THE PURPOSES OF GERIATRIC SERVICES PLANNING; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, local aging councils help develop, operate, or enhance geriatric services for the elderly; and WHEREAS, a local group of agencies, caregivers, businesses, community leaders, hospitals, NCTCOG Area Agency on Aging, and the University of North Texas have formed a partnership called the Geriatric Services Workgroup; and WHEREAS, for a group to apply for some grants it must be designated as a "local council" by the appropriate governmental entity; and WHEREAS, the Council of the City of Denton finds that it is in the public interest to designate the Geriatric Services Workgroup as the "local council" for purposes of application for grants and planning; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City Council hereby designates the Geriatric Services Workgroup as "Local Council" for the purposes of obtaining grant funds and geriatric services planning. SECTION 2. The Mayor is authorized to issue a letter to the Geriatric Services Workgroup designating the Geriatric Services Workgroup as "Local Council" for the purposes of geriatric services planning and enclosing a copy of this Resolution. SECTION 3. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the /7t- day of 2006. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: S \Our Documents\Resolutions\06\Gerialric.doc APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: RESOLUTION II SAOur Documenls\ResolulionAMEdvics Policy-AmendmmWOC RESOLUTION NO. OO ' O~3 A RESOLUTION AMENDING THE ETHICS POLICY FOR ELECTED AND APPOINTED OFFICIALS FOR THE CITY OF DENTON, TEXAS; AND PROVIDING AN EFFECTIVE DATE WHEREAS, on May 18, 2004 City Council passed Resolution R2004-025 adopting an Ethics Policy for Elected and Appointed Officials and upon a recommendation by the Council Ethics Sub-committee hereby approves an amendment to the policy as set forth herein; and WHEREAS, the City Council of the City of Denton acknowledges that our government is a representative democracy and those who are elected or appointed to serve others as representatives accept a public trust that requires them to faithfully and diligently fulfill their public responsibilities; and WHEREAS, the City Council of the City of Denton recognizes the those individuals who serve as public servants must adhere to a higher ethical standard of conduct since the activities of government should benefit the community as a whole and should never benefit the individual interest of public decision makers; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. That the following ETHICS POLICY for Elected and Appointed Officials - City of Denton, Texas, which shall apply to all elected and appointed officials of the City, is hereby amended to read as follows: ETHICS POLICY for Elected and Appointed Officials - City of Denton, Texas. This Ethics Policy has been adopted to encourage and ensure the highest standards of personal and public conduct during tenure in office. Adherence to this Policy will maintain the confidence and trust in the decision-makers and representatives of the City who must remain independent, impartial, and accountable to the people they serve. In addition, elected and appointed officials must adhere to Texas state statues and City Charter provisions and City Council Rules of Procedure governing their conduct. These are listed at the end of this Policy. Thus, elected City Council Members as well as appointed members of the City's Boards and Commissions are asked to subscribe to the Texas statutes, City of Denton Charter, Rules of Procedures for City Boards and Commissions, and this Ethics Policy. 1. As a representative of the City of Denton, I will be ethical. I will act with integrity and moral courage. I will be absolutely truthful. I will make impartial decisions that are free of bribes, unlawful gifts, narrow political interests and other personal interests that might impair my independence of judgment. I will always decide what is best for the whole city. I will respect confidences and information designated "confidential" to the extent S'1Our Documenls\Rcs0Iudons106TddCs Policy-AnlendmmlDOC permitted by law. I will use my title and city logo or letterhead only when conducting official City business and will not exceed my authority. 2. As a representative of the City of Denton, I will be service-oriented. I will be friendly, receptive, courteous, and respectful to everyone. I will be attuned to and care about the needs and issues of all Denton citizens. 3. As a representative of the City of Denton, I will be fiscally responsible. I will make prudent decisions, taking into account the long-term financial needs of the City and its financial stability. I will make decisions that seek to promote programs and services for City residents. 4. As a representative of the City of Denton, I will be communicative. I will communicate that I am approachable, open-minded and willing to enter into dialog. I will listen carefully and my response will add value to the conversation. 5. As a representative of the City of Denton, I will be cooperative. I will work toward consensus building and gain value from diverse opinions. I will approach my position and relationships with a positive attitude. I will consider the broader regional and statewide implications of decisions. I will work with the Universities, DISD, the Chambers of Commerce, other governmental entities, and local nonprofit agencies and others as partners on common issues. 6. As a representative of the City of Denton, I will be progressive and receptive to new ideas. I will promote intelligent and thoughtful innovation whenever possible. I will be sensitive to the need for compromise, to think creatively, and improve existing models when necessary. I will keep my knowledge of local government current and growing. 7. As a representative of the City of Denton, I will not be delinquent in paying monies owed the City. I will not be in arrears on any city taxes, utility service charges, or other obligations owed the City. Elected officials and appointed officials, boards and commissions must adhere to the following Texas statutes: Civil Statutes Open Meetings Act (Tex. Govt. Code. Ann. Ch. 551) Public Information Act/Open Records Act (Tex. Govt. Code. Ann. Ch. 552) Conflicts of Interest (Tex. Loc. Govt. Code, Ch. 171, Ch. 212) Official Misconduct (Tex. Penal Code, Ch. 36, Ch. 39) Nepotism (Tex. Rev. Civ. Stat. Ann., arts. 5996a & 5996b) Whistleblower Protection (Tex. Rev. Civ. Stat. Ann., art. 6552-16a) Page 2 of 3 I SAOur DocnnwntsuResolutionsW6\Ediics Policy-Amendmenl.DOC Competitive Bidding and Procurement (espec. Tex. Loc. Govt. Code, Ch. 252) State Penal Laws Bribery (Tex. Penal Code, § 36.02) Coercion of Public Servant or Voter (Tex. Penal Code, § 36.03) Improper Influence (Tex. Penal Code § 36.04) Tampering with a Witness (Tex. Penal Code § 36.04) Retaliation (Tex. Penal Code § 36.06) Gifts to Public Officials (Tex. Penal Code § 36.08) Offering Gift to Public Servant (Tex. Penal Code § 36.09) Abuse of Office (Chapter 39) Official Misconduct (Tex. Penal Code § 39.01) Official Oppression (Tex. Penal Code § 39.02) Misuse of Official Information (Tex. Penal Code § 39.03) City Documents In addition, the City of Denton Charter, the City Council Rules of Procedure, House Rules and Code of Election Ethics are applicable. The Ethics Policy is designed as a positive guide to the behavior and decorum of Council and board members as they represent the citizens of Denton. I will voluntarily accept reprimand from my colleagues if I should act contrary to this policy. SECTION 2. This resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of , 2006. cf:1 AegAe EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS O LEGAL FORM: EDWIN M. SNYD, CITY A ORNEY BY: i I i Page 3 of 3 RESOLUTION S:\Our Documents\Resolulions\06Wcceptance of Lakeview Blvd. Dedication.doc RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, ACCEPTING THE DEDICATION OF RIGHT-OF-WAY FOR LAKEVIEW BOULEVARD WITH THE FINAL PLAT OF VILLAGES OF CARMEL PHASE 111, AN ADDITION TO THE CITY OF DENTON, TEXAS, ACCORDING TO THE PLAT THEREOF RECORDED IN CABINET W, PAGES 640 AND 641 OF THE PLAT RECORDS OF DENTON COUNTY, TEXAS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the record owner, Holigan Land Development, LTD has dedicated to the public's use forever that certain street right-of-way for Lakeview Boulevard, being an approximate 135 foot wide right-of-way, as shown on the Final Plat of Villages of Carmel Phase III, an addition to the City of Denton, Texas, according to the plat thereof recorded in Cabinet W. Pages 640 and 641 of the Plat Records of Denton County, Texas (the "Lakeview Blvd. Right-of- Way Dedication"); and WHEREAS, the City Council finds that it is in the public interest to accept the Lakeview Blvd. Right-of-Way Dedication; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The findings and recitations contained in the preamble of this resolution are true and correct and are incorporated into the body of this resolution by reference. SECTION 2. The City of Denton, Texas hereby accepts the Lakeview Blvd. Right-of- Way Dedication. This acceptance does not act as an acceptance of any public improvements that may be constructed or installed within the Lakeview Blvd. Right-of-Way Dedication area. Such public improvements will only be accepted by the City after the public improvements are completed, inspected by the City, and determined to be in compliance with City ordinances, regulations and approved plans and specifications. SECTION 3. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the -Ah day of 2006. Xho ck- EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, TY SECRETARY BY: ) APPRO D AS TO EG FORM: EDWIN M. S Y ATTORNEY BY: ,~~IA l1l11lS, i! !i liflAl q ~ - '~idK„R a~j•dS alb y k~ lAillift!!A!i!!!!! !:A!!!!!i!!°-0!liii !!!!!i!!!! yyo-o^ ° 8 9 _ •A Ra ax Aa -a• aR4:.RF_ 60~ _ - - - - - - - - - - - - - - Ogy~ ~gi`t'S (5pi pa Cici'~9tl1F~~ag~iAYa,4`R ~ p ~iIIY3ai ~{~MA ~id`x300^n~d AaiiAleni y!y~ ~~r i~A~B ~~!!~!!BlA l1IT Aa t%!F4! YAc E L E E E y o e e a e a A c A= a a% e a_ E a i anuan aaJ D8 ✓ \ a 9 I t i 6(pI R YJ f I z R \ L 1 alit { ~w ( n'e ,mix! ya, ~j W C03U.?YYN ~ _ I PO R D I`-rr - 1\ ' 1 y MI- ~1 & 3A - s` . 31i PA .r°ra couxW :L r n ~@i ~ ~ ~ I. ^ ~ ~ .ar © • it t! 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R2006- 0067 A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS AUTHORIZING THE MAYOR TO ISSUE LETTERS EXPRESSING SUPPORT TO THE APPROPRIATE OFFICIALS FOR THE "PLUG-IN PARTNERS NATIONAL CAMPAIGN;" A UTHORIZING T HE C ITY M ANAGER T 0 E VALUATE T HE USE OF PLUG-IN HYBRID VEHICLES WITH RESPECT TO THE CITY FLEET ONCE SUCH VEHICLES BECOME COMMERCIALLY AVAILABLE; AND EXPRESSING THE CITY'S CONTINUOUS COMMITTMENT TO POSITIVELY INFLUENCING AIR QUALITY THROUGH THE SUPPORT OF LOCAL, STATE AND FEDERAL POLICIES THAT PROMOTE FLEXIBLE PLUG-IN VEHICLES AND OTHER SIMILAR TRANSPORTATION ALTERNATIVES; PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Denton, Texas wishes to continue its commitment to evaluating the use of alternatively fueled vehicles; and WHEREAS, the transportation sector will ultimately move away from the use of petroleum, which creates an opportunity to transition to more sustainable and less polluting alternatives; and WHEREAS, there is a great opportunity for electrifying the transportation sector through the use of electric vehicles, plug-in hybrid vehicles, and other similar transportation alternatives; and WHEREAS, there may be substantial economic and environmental benefits for the community from the use of these transportation alternatives; and WHEREAS, the technology exists today to build flexible-fuel plug-in hybrid electric automobiles, the use of which could reduce oil imports and positively influence air quality; and WHEREAS, the City of Denton wishes to join the Cities of Austin, Texas; Fort Worth, Texas; and other cities in urging automakers to mass produce plug-in hybrid vehicles for the substantial economical, environmental and strategic reasons outlined above; NOW, THERFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. That the Mayor of the City of Denton, Texas is hereby authorized by the City Council to write letters of support to the appropriate officials in support of the "Plug-in Partners National Campaign;" and the City Secretary is hereby authorized to mail said letters of support to the appropriate officials. SECTION 2. That the City Manager is hereby directed to evaluate the use of plug-in hybrid vehicles within the City fleet, when these vehicles become commercially available. SECTION 3. That the City of Denton will continue its commitment to positively influencing air quality through the support of local, state and federal policies that promote flexible-fuel plug-in hybrid vehicles and similar transportation alternatives SECTION 4. That this resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the 7 day of 2006. ?ov EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: - APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY r By: S:\Our Documents\Reso1utions\06\Plug-In Partners National Campaign-Resolution-2006.doc RESOLUTION S^Oar Wcamems\Resolmioas\M\pd warning academy doc RESOLUTION NO. e'706-000 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS SUPPORTING THE DENTON POLICE DEPARTMENT TRAINING ACADEMY LICENSE RENEWAL; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council desires to support the Denton Police Department in submitting a request for renewal of a license for a permanent training facility to the Texas Commission on Law Enforcement Officer Standards and Education; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City Council of the City of Denton hereby supports the Denton Police Department Training Academy. SECTION 2. The City Council hereby authorizes and directs the Interim City Manager, or his designee, to represent and act on behalf of the City of Denton in working with the Texas Commission on Law Enforcement Officer Standards and Education in obtaining a renewal of a license for the Denton Police Department Training Academy. SECTION 3. A copy of this resolution shall be forwarded to the Texas Commission on Law Enforcement Officer Standards and Education. SECTION 4. This resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the~~day of 2006. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: %'km'u- APPROV D AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: RESOLUTION SAOur Documents\Resolulions\06\Personul Property.doe RESOLUTION NO. ~ &9 7 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, ADOPTING SECTION 33.11 OF THE TEXAS PROPERTY TAX CODE PROVIDING FOR IMPOSING AN EARLY COLLECTION COSTS PENALTY FOR TAXES IMPOSED ON PERSONAL PROPERTY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, authority has been granted to taxing units of the State of Texas to seek collection of delinquent personal property taxes prior to July 1 of the year in which the tax becomes delinquent, and to defray costs of such collection by imposition of a penalty under Section 33.11, Texas Property Tax Code, effective September 1, 2005; and WHEREAS, the City of Denton, Texas, is a duly authorized taxing unit of the State of Texas; and WHEREAS, the City of Denton has contracted with an attorney under Section 6.30, Texas Property Tax Code, under which contract personal property taxes became subject to collections by said attorney before July 1 of the year in which the taxes become delinquent; and WHEREAS, the City of Denton seeks to implement the provisions of Section 33.11, Texas Property Tax Code, and provide for a penalty under the terms specified in said statute as an alternative to the authority given by Section 33.07 with regard to personal property taxes; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The findings and recitations contained in the preamble of this resolution are true and correct and are incorporated into the body of this resolution by reference. SECTION 2. The City of Denton, Texas hereby implements the provisions of Section 33.11, Texas Property Tax Code, to provide for a penalty under the terms specified in said statute as an alternative to the authority given by Section 33.07 with regard to the collection of personal property taxes. Such penalty shall be in an amount of the compensation specified in the contract with the attorney to be paid in connection with the collection of the delinquent taxes. SECTION 3. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 2006. EULINE BROCK, MAYOR 5:\Our Documents\Resolutions\06\1'ersonal Property.doc ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: d\I\ APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: Page 2 of 2 RESOLUTION S'.\Our Documents\Resolutions\06\Tejas Storytelling Association.doc RESOLUTION NO. ZDOri A RESOLUTION ALLOWING TEJAS STORYTELLING ASSOCIATION TO BE THE SOLE PARTICIPANT ALLOWED TO SELL ALCOHOLIC BEVERAGES IN THE CIVIC CENTER PARK AT THE TEXAS STORYTELLING FESTIVAL ON MARCH 31 - APRIL 2, 2006, UPON CERTAIN CONDITIONS; AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE AN AGREEMENT IN CONFORMITY WITH THIS RESOLUTION; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Denton ("City") is the owner of the Civic Center Park and through the Park and Recreations Department co-sponsors a Texas Storytelling Festival at the Civic Center Park; and WHEREAS, the consumption of alcoholic beverages is allowed in the Civic Center Park pursuant to City of Denton Code, §22-32 (b); and WHEREAS, the City Council finds that it is in the public interest to select only one vendor of alcoholic beverages at the Texas Storytelling Festival; and WHEREAS, Tejas Storytelling Association (called "Tejas") has requested that they be sole participant allowed to sell alcoholic beverages at this year's Texas Storytelling Festival on March 31 - April 2, 2006; and WHEREAS, the Parks and Recreation Board has recommended that Tejas be the sole participant allowed to sell alcoholic beverages at the Texas Storytelling Festival; and WHEREAS, the City agrees with the recommendation of the Parks and Recreation Board; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. Tejas shall be the sole participant allowed to sell alcoholic beverages at the Texas Storytelling Festival on March 31 - April 2, 2006 at the Civic Center Park upon the following conditions: 1. They shall be responsible for rental of any booth space necessary; 2. They shall be responsible to obtain the temporary license and permit for selling alcoholic beverages approved by appropriate state agency; 3. They shall provide the security necessary for the sale of alcoholic beverages; 4. They shall provide comprehensive general liability insurance from a responsible carrier, with the City as an additional insured, in the amount of $500,000.00. S A0La- Documents\Resolutions\06\'I'ejas Storytelling Associalion.doc 5. Agrees to indemnify the City of Denton against any liability incident to the selling of alcoholic beverages at the Texas Storytelling Festival. SECTION 2. The City Manager or his designee is authorized to execute an agreement in conformity with this Resolution, which shall be substantially in the form of the Agreement attached hereto and made a part hereof by reference. SECTION 3. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the 7i- day of 12006. X EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY B Page 2 of 2 S:\Our Documents\Contracts\06\Civic Center - Texas Storytelling Festival.doc CIVIC CENTER PARK AGREEMENT FOR TEXAS STORYTELLING ASSOCIATION STATE OF TEXAS § COUNTY OF DENTON § This Agreement, made this f/ m /L day of 2006, by and between the City of Denton, a municipal corporation, herein afl referred to as the "City" and Tejas Storytelling Association, herein after referred to as "Tejas". WITNESSETH, that in consideration of the covenants and agreements herein contained, the parties hereto do mutually agree as follows: ARTICLE 1 GENERAL The City grants to Tejas the exclusive privilege to sell alcoholic beverages, subject to the exceptions and conditions hereinafter set forth, for the Texas Storytelling Festival on March 31 through April 2, 2006, to be held at the Civic Center Park. Attached hereto and made a part hereof by is a copy of the resolution passed by the City Council of Denton, Texas authorizing this privilege. This privilege does not extend beyond the date of the Texas Storytelling Festival set for the year 2006. ARTICLE 2 SCOPE OF SERVICES Tejas, in order to exercise the privilege to sell alcoholic beverages, must perform the following: A. Tejas shall be solely responsible for the rental and payment for any booth space necessary for the sale of alcoholic beverages at the Texas Storytelling Festival. B. Tejas shall be solely responsible to obtain any temporary license and permit necessary- for the selling of alcoholic beverages at the Texas Storytelling Festival. C. Tejas shall be solely responsible for the obtaining and paying for any security necessary for their sale of alcoholic beverages at the Texas Storytelling Festival. Tejas's failure to do any of the above and to show proper proof of compliance shall waive their right to exercise the privilege of selling alcoholic beverages at the Texas Storytelling Festival. SAOur Documents\Contraas\Ob\Civic Center- Texas Storylelling Festival.doc ARTICLE 3 LOCAL RULES AND REGULATION Tejas agrees to abide by all municipal, county, state and federal laws, ordinances, rules and regulations and specifically, without limitation, the Denton Civic Center Park Rules and Regulations, to obtain all necessary and proper licenses, permits and authorizations, and to comply with the requirements of any duly authorized person acting in connection therewith. Tejas shall pay all taxes, if any, of every nature and description arising out of or in any manner connected with the sale of alcoholic beverages. Tejas will exercise reasonable care and due diligence in their sale of alcoholic beverages at the Texas Storytelling Festival. ARTICLE 4 INDEMNITY AGREEMENT Tejas shall indemnify and save and hold harmless the City and its officers, agents, and employees from and against any and all liability, claims, demands, losses, and expenses, including but not limited to, court costs and reasonable attorney fees incurred by the City, and including, without limitation, damages for bodily and personal injury, death and property damage suffered by any person, including third parties, resulting from the negligent acts or omissions of Tejas or it officers, shareholders, agents, or employees in the execution, operation, or performance of this Agreement. Nothing in this Agreement shall be construed to create a liability to any person who is not a party to this Agreement, and nothing herein shall waive any of the parties' defenses, both at law or equity, to any claim, cause of action, or litigation filed by anyone not a party to this Agreement, including the defense of governmental immunity, which defenses are hereby expressly reserved. ARTICLE S INSURANCE During the performance of the Agreement, Tejas shall maintain the following insurance with an insurance company licensed to do business in the State of Texas by the State Insurance Commission or any successor agency that has a rating with Best Rate Carvers of at least an A- or above: A. Comprehensive General Liability Insurance with bodily injury limits of not less than $500,000 for each occurrence and not less than $500,000 in the aggregate, and with property damage limits of not less that $100,000 for each occurrence and not less than $100,000 in the aggregate. B. Tejas shall furnish insurance certificates or insurance policies at the City's request to evidence such coverages. The insurance policies shall name the City as an additional insured on all such policies, and shall contain a provision that such insurance shall not be canceled or modified without written notice to the City and Tejas. In such event, Tejas Page 2 of 5 SAChur Documents\Contracts\06\Civic Center - Te= Storytelling Festival.doc shall, prior to the effective date of the change or cancellation, serve substitute policies furnishing the same coverage. ARTICLE 6 NOTICES All notices, communications, and reports required or permitted under this Agreement shall be personally delivered or mailed to the respective parties by depositing same in the United States mail to the address shown below, certified mail, return receipt requested, unless otherwise specified herein. Mailed notices shall be deemed communicated as of three (3) days' mailing: To Tejas Storytelling Association: To City: Tejas Storytelling Association City of Denton: Cristin Thomas, Executive Director City Manager P. O. Box 2806 215 E. McKinney Denton, TX 76202 Denton, Texas 76201 All notices shall be deemed effective upon receipt by the party to whom such notice is given, or within three (3) days' mailing. ARTICLE 7 ENTIRE AGREEMENT This Agreement, consisting of five (5) pages and no exhibits, constitutes the complete and final expression of the agreement of the parties, and is intended as a complete and exclusive statement of the terms of their agreements, and supersedes all prior contemporaneous offers, promises, representations, negotiations, discussions, communications, and agreements which may have been made in connection with the subject matter hereof. ARTICLE 8 SEVERABILITY If any provision of this Agreement is found or deemed by a court of competent jurisdiction to be invalid or unenforceable, it shall be considered severable from the remainder of this Agreement and shall not cause the remainder to be invalid or unenforceable. In such event, the parties shall reform this Agreement to replace such stricken provision with a valid and enforceable provision which comes as close as possible to expressing the intention of the stricken provision. ARTICLE 9 DISCRIIIHNATION PROHIBITED In performing the services required hereunder, Tejas shall not discriminate against any person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical handicap. Page 3 of 5 SAOur Docummn\Ccntracts\06\Civic Center - Texas Storyrclling Fwivel.doc ARTICLE 10 PERSONNEL A. Tejas represents that it has or will secure, at its own expense, all personnel required to perform all the services required under this Agreement. Such personnel shall not be employees or officers of, or have any contractual relations with, the City. ARTICLE 11 ASSIGNABILITY Tejas shall not assign any interest in this Agreement, and shall not transfer any interest in this Agreement (whether by assignment, novation, or otherwise) without the prior written consent of the City. ARTICLE 12 MODIFICATION No waiver or modification of this Agreement or of any covenant, condition, or limitation herein contained shall be valid unless in writing and duly executed by the party to be charged therewith, and no evidence of any waiver or modification shall be offered or received in evidence in any proceeding arising between the parties hereto out of or affecting this Agreement, or the rights or obligations of the parties hereunder, and unless such waiver or modification is in writing and duly executed; and the parties further agree that the provisions of this section will not be waived unless as set forth herein. ARTICLE 13 MISCELLANEOUS A. The following exhibits are attached to and made a part of this Agreement: (list exhibits) Exhibit "A" Resolution No. R2 nn~ B. Venue of any suit or cause of action under this Agreement shall lie exclusively in Denton County, Texas. This Agreement shall be construed in accordance with the laws of the State of Texas. C. The captions of this Agreement are for informational purposes only, and shall not in any way affect the substantive terms or conditions of this Agreement. i Page 4 of 5 SdOur Doeumcnts\Contmm\06\Civic Center- Texas Storytelling Festival.doc IN WITNESS HEREOF, the City of Denton, Texas has caused this Agreement to be executed by its duly authorized City Manager, and Tejas has executed this Agreement through its duly authorized undersigned officer on this the 71-h day of 2006. CITY OF DENTON, TEXAS HOWARD MARTIN INTERIM CITY MANAGER ATTEST: JENNIFER WALTERS, CITY SECRETARY B EGAL FORM: APPR V+ATO'~L EDWIN M. SNYDER CITY-t"-TT7 BY: vr'. TEJAS STORYT LLING ASSOCIATION j i i BY: CRISTIN THOMAS EXECUTIVE DIRECTOR WITNESS: BY: Page 5 of 5 S:\Our Documents\Resolutions\06\Tejas Storytelling Association.doc EXHIBIT A RESOLUTIONNO. Z40k-&00 A RESOLUTION ALLOWING TEJAS STORYTELLING ASSOCIATION TO BE THE SOLE PARTICIPANT ALLOWED TO SELL ALCOHOLIC BEVERAGES IN THE CIVIC CENTER PARK AT THE TEXAS STORYTELLING FESTIVAL ON MARCH 31 - APRIL 2, 2006, UPON CERTAIN CONDITIONS; AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE AN AGREEMENT IN CONFORMITY WITH THIS RESOLUTION; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Denton ("City") is the owner of the Civic Center Park and through the Park and Recreations Department co-sponsors a Texas Storytelling Festival at the Civic Center Park; and WHEREAS, the consumption of alcoholic beverages is allowed in the Civic Center Park pursuant to City of Denton Code, §22-32 (b); and WHEREAS, the City Council finds that it is in the public interest to select only one vendor of alcoholic beverages at the Texas Storytelling Festival; and WHEREAS, Tejas Storytelling Association (called °Tejas") has requested that they be sole participant allowed to sell alcoholic beverages at this year's Texas Storytelling Festival on March 31 - April 2, 2006; and WHEREAS, the Parks and Recreation Board has recommended that Tejas be the sole participant allowed to sell alcoholic beverages at the Texas Storytelling Festival; and WHEREAS, the City agrees with the recommendation of the Parks and Recreation Board; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. Tejas shall be the sole participant allowed to sell alcoholic beverages at the Texas Storytelling Festival on March 31 - April 2, 2006 at the Civic Center Park upon the following conditions: 1. They shall be responsible for rental of any booth space necessary; 2. They shall be responsible to obtain the temporary license and permit for selling alcoholic beverages approved by appropriate state agency; 3. They shall provide the security necessary for the sale of alcoholic beverages; 4. They shall provide comprehensive general liability insurance from a responsible carrier, with the City as an additional insured, in the amount of 5500,000.00. S90ur Documents\Reso1utions\06\Tejas Storytelling Associa6on.doc 5. Agrees to indemnify the City of Denton against any liability incident to the selling of alcoholic beverages at the Texas Storytelling Festival. SECTION 2. The City Manager or his designee is authorized to execute an agreement in conformity with this Resolution, which shall be substantially in the form of the Agreement attached hereto and made a part hereof by reference. SECTION 3. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the 7i-k day of Wv"("'L 12006. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY B Page 2 of 2 RESOLUTION 590ur Documents\Resolutions\06WTHEA Extension.doc RESOLUTION NO. 6e 00q A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF DENTON APPROVING AN EXTENSION OF TIME FOR THE ISSUANCE OF BONDS BY NORTH TEXAS HIGHER EDUCATION AUTHORITY, INC. AND MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, by Resolution No. R2005-044 the City Council of the City of Denton approved the issuance of $200,000,000 in principal amount of student loan revenue bonds by North Texas Higher Education Authority, Inc. ("Authority") during the first quarter of 2006; and WHEREAS, the Authority has asked the City to approve an extension of time for the issuance of its bonds; and WHEREAS, the City wishes to approve the extension; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City Council of the city of Denton, Texas, hereby grants its approval to the North Texas Higher Education Authority, Inc. to issue and deliver its student loan revenue bonds in the amount and for the purposes described in Resolution No. R2005-044 no later than June 30, 2006. SECTION 2. It is hereby officially found and determined that the meeting at which this Resolution is passed is open to the public, as required by law, and that public notice of the time, place and purpose of said meeting was posted, as required by law. SECTION 3. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the S day of 12006. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ..1, l APPRO ED AS O LEGAL FORM: EDWIN M. SNYD , CIT TTORNEY BY: r CERTIFICATE OF SECRETARY THE STATE OF TEXAS § COUNTY OF DENTON § CITY OF DENTON § I, the undersigned, Secretary of the City of Denton, Texas do hereby certify the following: 1. On the day of , 2006, the City Council of the City of Denton, Texas convened in regular sess n at its regular meeting place in City Hall, with the duly constituted members of the City Council being as follows: Euline Brock Mayor Charlye Heggins Council Member, District 1 Pete Kamp Council Member, District 2 Jack Thomson Council Member, District 3 Perry McNeil Council Member, District 4 and Mayor Pro Tern Bob Montgomery Council Member, At Large Place 5 Joe Mulroy Council Member, At Large Place 6 and all Council Members were present at said meeting, except the following: n,/ Among other business considered at said meeting, the attached resolution, entitled: A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF DENTON APPROVING AN EXTENSION OF TIME FOR THE ISSUANCE OF BONDS BY NORTH TEXAS HIGHER EDUCATION AUTHORITY, INC.; AND MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH was introduced and submitted to the Council for approval and ssage. After presentation and due consideration//of the resolution, and u on a motion by pt /7,M seconded by CrL , the resolution was duly passed and adopted by the City Council, to be effective imm ately, by the following vote: J- voted "For" voted "Against" abstained all as stated in the official Minutes of the City Council for the meeting held on the aforesaid date. 2. The attached resolution is a true and correct copy of the original resolution on file in the official records of the City of Denton, Texas. The duly qualified and acting members of the City Council of the City of Denton, Texas, on the date of the aforesaid Council meeting are those persons above named; and according to the records of my office, each member of the City Council was given advance notice of the time, place and purpose of the meeting, and 45724995.1 1 that said meeting and deliberation of the aforesaid public business was open to the public, and written notice of said meeting, including the subject of the entitled resolution, was posted and given in advance thereof, in compliance with the provisions of Chapter 551, Texas Government Code. IN WITNESS THEJ >40F, I have hereunto signed my name officially and affixed the seal of said City, this the ~~5tt day of 2006. '~~A' I - U), Q+' , , nifer Walters, City Secretary City of Denton, Texas (Seal) 45724995.1 2 RESOLUTION S:\Our Documents\Resolutions\06\CoTaxSale-1330 Morse.doc RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY OF DENTON, AS TRUSTEE, TO SELL CERTAIN REAL PROPERTY; CONSENTING TO THE SALE OF CERTAIN REAL PROPERTY TO THE HIGHEST BIDDER AS PROVIDED BY LAW; AUTHORIZING THE MAYOR OF THE CITY OF DENTON, TEXAS TO EXECUTE A DEED WITHOUT WARRANTY AND ANY OTHER DOCUMENTS NECESSARY OR APPROPRIATE TO CONVEY CERTAIN REAL PROPERTY SOLD BY THE CITY OF DENTON, AS TRUSTEE, PURSUANT TO SECTION 34.05 OF THE TEXAS PROPERTY TAX CODE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Cause No. 2002-1137-158, was filed by the County of Denton, the City of Denton, the Denton Independent School District and the Denton County Education District, in the 158th Judicial District Court in and for Denton County, Texas, in order to collect delinquent taxes owing upon the following described real property, to wit: BEING 1.640 acres, situated in the Wm. Teague Survey, Abstract 1266A, Tract 14, Old DCAD Tract 413, Account No. R34864, an Addition to the City of Denton, Denton County, Texas; also being that same property more particularly described in Volume 2508, Page 705 of the Deed Records, Denton County, Texas; and WHEREAS, the 158`h Judicial District Court in and for Denton County, Texas, granted Judgment in favor of the taxing jurisdictions of Denton County on July 7, 2003 as follows: County of Denton $ 3,740.36 City of Denton $ 1,658.56 Denton Independent School District $ 29,907.28 Denton County Education District $ 3,322.14 Total Due $ 38,628.34 WHEREAS, the above-described real property was offered for sale on July 7, 2003, by the Sheriff of Denton County, Texas, at a public auction pursuant to Judgment of the 158th Judicial District Court in and for Denton County, Texas, for foreclosure of the tax liens securing payment of the delinquent property taxes, as well as accrued penalty and interest owing thereon; and WHEREAS, at said sale, the Sheriff of Denton County, Texas did not receive a sufficient bid respecting the above-described real property, as set by law, and the above-described real property was therefore struck off to the City of Denton, Texas, Trustee, in trust and for itself, the Denton Independent School District and Denton County, pursuant to Section 34.01(c) of the Texas Property Tax Code; and S:\Our Doc uments\Resolutions\06\CoTaxSale-1 330 Morse.doc WHEREAS, all taxing units involved as judgment creditors in the foregoing Judgment desire to resell the above-described real property in an expeditious manner, pursuant to Section 34.05 of the Texas Property Tax Code; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City Council of the City of Denton, Texas does hereby authorize the City of Denton as Trustee, for the benefit of itself, and the other taxing jurisdictions in Denton County including the City of Denton, Texas, to sell the above-described real property; and hereby consents to the sale of the above-described real property to the highest bidder, even if the highest bid tendered to the City of Denton as Trustee, is less than the market value of the above- described real property as set forth in the above-described Judgment of foreclosure or the total amount of the Judgment against the above-described real property. SECTION 2. The Mayor of the City of Denton, Texas is hereby authorized to execute a deed without warranty and any other documents necessary to convey the above-described real property sold by the City of Denton, as Trustee, pursuant to Section 34.05 of the Texas Property Tax Code. SECTION 3. This resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of~ 2006. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. S ER, CITY ATTORNEY BY: Page 2 of 2 RESOLUTION 5:\0ur Documents\Resolutions\06TUC adjusted Rate Resolution.doc RESOLUTION NO. A RESOLUTION OF THE CITY OF DENTON AUTHORIZING THE PUBLIC UTILITY COMMISSION OF TEXAS TO SET THE ACCESS LINE RATE AT THE NEW CPI- ADJUSTED MAXIMUM RATE TO BE PAID TO THE CITY BY CERTIFICATED TELECOMMUNICATIONS PROVIDERS PURSUANT TO CHAPTER 283 OF THE TEXAS LOCAL GOVERNMENT CODE ("HB 1777"); AUTHORIZING THE CITY MANAGER TO ACCEPT FUTURE PUBLIC UTILITY COMMISSION ACCESS LINE RATE ADJUSTMENTS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, HB 1777, Chapter 283 of the Texas Local Government Code ("Code"), established a uniform method for calculating telecommunications franchise compensation paid to municipalities by using access lines and allocating a rate per category of access line; and WHEREAS, the Public Utility Commission of Texas (PUC) has requested the City of Denton to elect if it desires to set the access line rate at the current allocation formula of $1.42 for residential access lines, $3.26 for non-residential access lines and $4.95 for point-to-point access lines or to set the access line rate at the new CPI-adjusted Maximum Rate of $1.45 for residential access lines, $3.32 for non-residential access lines and $5.04 for point-to-point access lines; and WHEREAS, the City Council finds that the access line rate should be set at the new CPI- adjusted Maximum Rate in order for the City of Denton to be fully compensated for the use of the right-of-ways by Certificated Telecommunications Providers; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The findings set forth in the preamble of this Ordinance are incorporated by reference into the body of this Ordinance as if fully set forth herein. SECTION 2. The City Manager or his designee is authorized to inform the Public Utility Commission by sending a copy of this Resolution to the PUC notifying the PUC pursuant to state law that the access line rate should be set at the new CPI-adjusted Maximum Rate of $1.45 for residential access lines, $3.32 for non-residential access lines and $5.04 for point-to-point access lines in order for the City of Denton to be fully compensated for the use of the right-of-ways by Certificated Telecommunications Providers. SECTION 3. The City Manager or his designee is delegated the authority and authorized to accept future PUC adjustments of access line rates under chapter 283 of the Texas Local Government Code without the necessity of further City Council action and to exercise all rights and duties of the City of Denton concerning such access line rate adjustments. SECTION 4. This Resolution shall become effective immediately upon is passage and approval by the City Council. S:\Our Documents\Resolutions\06TUC adjusted Rate Resolution.doc PASSED AND APPROVED this the & day of 12006. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: /LP Page 2 of 2 RESOLUTION S:AGur Documents\Reso1utionsV06ACinco De Mayo alcohol sell.doc RESOLUTION NO. Oa o'O~2 A RESOLUTION ALLOWING MI CASITA MEXICAN FOOD TO BE THE SOLE PARTICIPANT ALLOWED TO SELL ALCOHOLIC BEVERAGES AT THE CINCO DE MAYO CELEBRATION ON MAY 6, 2006, UPON CERTAIN CONDITIONS; AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE AN AGREEMENT IN CONFORMITY WITH THIS RESOLUTION; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Denton ("City") is the owner of the Civic Center Park and through the Park and Recreations Department co-sponsors a Cinco De Mayo Celebration at the Civic Center Park; and WHEREAS, the consumption of alcoholic beverages is allowed in the Civic Center Park pursuant to City of Denton Code, §22-32 (b); and WHEREAS, the City Council finds that it is in the public interest to select only one vendor of alcoholic beverages at the Cinco De Mayo Celebration; and WHEREAS, Matt Kohandani, doing business as Mi Casita Mexican Food (called "Mi Casita"), has requested that they be the sole participant allowed to sell alcoholic beverages at this year's Cinco De Mayo Celebration on May 6, 2006; and WHEREAS, the Parks, Recreation, and Beautification Board has recommended that Mi Casita be the sole participant allowed to sell alcoholic beverages at the Cinco De Mayo Celebration; and WHEREAS, the City agrees with the recommendation of the Parks, Recreation, and Beautification Board; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. Mi Casita shall be the sole participant allowed to sell alcoholic beverages at the Cinco De Mayo Celebration on May 6, 2006 at the Civic Center Park upon the following conditions: 1. They shall be responsible to obtain the temporary license and permit for selling alcoholic beverages approved by appropriate state agency; 2. They shall provide the security necessary for the sale of alcoholic beverages; 3. They shall provide general comprehensive liability insurance from a responsible carrier, with the City as an additional insured, in the amount of $500,000.00. 4. They agree to indemnify the City of Denton against any liability incident to the selling of alcoholic beverages at the Cinco De Mayo Celebration. 5:AOur Documents\ResoluuonsV06A0nco Dc Mayo alcohol sell.doc SECTION 2. The City Manager or his designee is authorized to execute an agreement in conformity with this Resolution, which shall be substantially in the form of the agreement attached hereto and made a part hereof by reference. SECTION 3. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _0~6'tday of 2006. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL-FORM: EDWIN M. SNYDER, CITY ATTORNEY BY- Page 2 of 2 S:\Our Documrntt\ConVactc\06\Cinco De Mayo CanCactdoc CIVIC CENTER AGREEMENT FOR THE CINCO DE MAYO CELEBRATION STATE OF TEXAS § COUNTY OF DENTON § This Agreement, made this I E.X day of 2006, by and between the City of Denton, a municipal corporation, hereinafter' referred to as the "CITY" and Matt Kohandani doing business as MI CASITA MEXICAN FOOD (called "MI CASITA"). WITNESSETH, that in consideration of the covenants and agreements herein contained, the parties hereto do mutually agree as follows: ARTICLE 1 GENERAL The City grants to MI CASITA the exclusive privilege to sell alcoholic beverages, subject to the exceptions and conditions hereinafter set forth, for the Cinco De Mayo celebration on May 6, 2006, to be held at the Civic Center Park. Attached hereto and made a part hereof by is a copy of the Resolution passed by the City Council of Denton, Texas authorizing this privilege. This privilege does not extend beyond the date of the Cinco De Mayo celebration set for the year 2006. ARTICLE 2 SCOPE. OF SERVICES MI CASITA, in order to exercise the privilege to sell alcoholic beverages, must perform the following: A. MI CASITA shall be solely responsible to obtain any temporary license and permit necessary for the selling of alcoholic beverages at the Cinco De Mayo Celebration. B. MI CASITA shall be solely responsible for the obtaining and paying for any security necessary for their sale of alcoholic beverages at the Cinco De Mayo Celebration. MI CASITA 's failure to do any of the above and to show proper proof of compliance shall waive their right to exercise the privilege of selling alcoholic beverages at the Cinco De Mayo Celebration. i SA0ur Docu tg Contracul06\0nco De Mayo ConbW.doc ARTICLE 3 LOCAL RULES AND REGULATION MI CASITA agrees to abide by all municipal, county, state and federal laws, ordinances, rules and regulations and specifically, without limitation, the Denton Civic Center Rules and Regulations, to obtain all necessary and proper licenses, permits and authorizations, and to comply with the requirements of any duly authorized person acting in connection therewith. MT CASITA shall pay all taxes, if any, of every nature and description arising out of or in any manner connected with the sale of alcoholic beverages. MI CASITA will exercise reasonable care and due diligence in their sale of alcoholic beverages at the Cinco De Mayo Celebration. ARTICLE 4 INDEMNITY AGREEMENT MI CASITA shall indemnify and save and hold harmless the CITY and its officers, agents, and employees from and against any and all liability, claims, demands, losses, and expenses, including but not limited to, court costs and reasonable attorney fees incurred by the CITY, and including, without limitation, damages for bodily and personal injury, death and property damage, resulting from the negligent acts or omissions of MI CASITA or it officers, I shareholders, agents, or employees in the execution, operation, or performance of this Agreement. Nothing in this Agreement shall be construed to create a liability to any person who is not a party to this Agreement, and nothing herein shall waive any of the parties' defenses, both at law or equity, to any claim, cause of action, or litigation filed by anyone not a party to this Agreement, including the defense of governmental immunity, which defenses are hereby expressly reserved. ARTICLE 5 INSURANCE During the performance of the Agreement, MI CASITA shall maintain the following insurance with an insurance company licensed to do business in the State of Texas by the State Insurance Commission or any successor agency that has a rating with Best Rate Carriers of at least an A- or above: A. Comprehensive General Liability Insurance with bodily injury limits of not less than $500,000 for each occurrence and not less than $500,000 in the aggregate, and with property damage limits of not less that $100,000 for each occurrence and not less than $100,000 in the aggregate. B. MI CASITA shall famish insurance certificates or insurance policies at the CITY'S request to evidence such coverages. The insurance policies shall name the CITY as an additional insured on all such policies, and shall contain a provision that such insurance shall not be canceled or modified without written notice to the CITY and MI CASITA. Page 2of5 SA0ur Docum u\Conhactsbfi\Cinco De Mayo Contmct.doc In such event, MI CASITA shall, prior to the effective date of the change or cancellation, serve substitute policies furnishing the same coverage. ARTICLE 6 NOTICES All notices, communications, and reports required or permitted under this Agreement shall be personally delivered or mailed to the respective parties by depositing same in the United States mail to the address shown below, certified mail, return receipt requested, unless otherwise specified herein. Mailed notices shall be deemed communicated as of three (3) days' mailing: To MI CASITA: To CITY: MI CASITA MEXICAN FOOD: CITY OF DENTON: Matt Kohandani City Manager 110 N. Carroll Blvd. 215 E. McKinney Denton, Texas 76201 Denton, Texas 76201 (940) 891-1932 All notices shall be deemed effective upon receipt by the party to whom such notice is given, or within three (3) days' mailing. ARTICLE 7 ENTIRE AGREEMENT This Agreement, consisting of five (5) pages and one (1) exhibit, constitutes the complete and final expression of the agreement of the parties, and is intended as a complete and exclusive statement of the terms of their agreements, and supersedes all prior contemporaneous offers, promises, representations, negotiations, discussions, communications, and agreements which may have been made in connection with the subject matter hereof. ARTICLE 8 SEVERABILITY If any provision of this Agreement is found or deemed by a court of competent jurisdiction to be invalid or unenforceable, it shall be considered severable from the remainder of this Agreement and shall not cause the remainder to be invalid or unenforceable. In such event, the parties shall reform this Agreement to replace such stricken provision with a valid and enforceable provision which comes as close as possible to expressing the intention of the stricken provision. ARTICLE 9 DISCRIMINATION PROHIBITED In performing the services required hereunder, MI CASITA shall not discriminate against any person on the basis of race, color, religion, sex, national origin or ancestry, age, or physical handicap. Page 3 of 5 S:\Our Docum un Contrects\06\Cinco De Mayo Connacedoc ARTICLE 10 PERSONNEL MI CASITA represents that it has or will secure, at its own expense, all personnel required to perform all the services required under this Agreement. Such personnel shall not be employees or officers of, or have any contractual relations with the CITY. ARTICLE 11 ASSIGNABILITY MI CASITA shall not assign any interest in this Agreement, and shall not transfer any interest in this Agreement (whether by assignment, novation, or otherwise) without the prior written consent of the CITY. ARTICLE 12 MODIFICATION No waiver or modification of this Agreement or of any covenant, condition, or limitation herein contained shall be valid unless in writing and duly executed by the party to be charged therewith, and no evidence of any waiver or modification shall be offered or received in evidence in any proceeding arising between the parties hereto out of or affecting this Agreement, or the rights or obligations of the parties hereunder, and unless such waiver or modification is in writing and duly executed; and the parties further agree that the provisions of this section will not be waived unless as set forth herein. ARTICLE 13 MISCELLANEOUS A. The following exhibits are attached to and made a part of this Agreement: Exhibit "A" Resolution No. 012. B. Venue of any suit or cause of action under this Agreement shall lie exclusively in Denton County, Texas. This Agreement shall be construed in accordance with the laws of the State of Texas. C. The captions of this Agreement are for informational purposes only, and shall not in any way affect the substantive terms or conditions of this Agreement. IN VaTNESS HEREOF, the City of Denton, Texas has caused this Agreement to be executed.by its duly authorized City Manager, and MI CASITA has executed this Agreement through its duly authorized undersigned officer on this the /&& day of 2006. Page 4of5 • SA0w Docum ts\Cmtmcts\06\Cinco De Mayo Contmadoc CITY OF DENTON, TEXAS HOWARD MARTIN INTERIM CITY MANAGER ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPR ED A 0 LEGAL FORM: ED SNYDER, CITY ATTORNEY BY4 : MI C A 2EX AN D t MA WITNESS: BY: Page 5 of 5 S:\Our Documents\Resolutions\06\Cinco De Mayo alcohol sell.doc EXHIBIT A RESOLUTION NO. Op o'O~z A RESOLUTION ALLOWING MI CASITA MEXICAN FOOD TO BE THE SOLE PARTICIPANT ALLOWED TO SELL ALCOHOLIC BEVERAGES AT THE CINCO DE MAYO CELEBRATION ON MAY 6, 2006, UPON CERTAIN CONDITIONS; AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO EXECUTE AN AGREEMENT IN CONFORMITY WITH THIS RESOLUTION; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Denton ("City") is the owner of the Civic Center Park and through the Park and Recreations Department co-sponsors a Cinco De Mayo Celebration at the Civic Center Park; and WHEREAS, the consumption of alcoholic beverages is allowed in the Civic Center Park pursuant to City of Denton Code, §22-32 (b); and WHEREAS, the City Council finds that it is in the public interest to select only one vendor of alcoholic beverages at the Cinco De Mayo Celebration; and WHEREAS, Matt Kohandani, doing business as Mi Casita Mexican Food (called "Mi Casita"), has requested that they be the sole participant allowed to sell alcoholic beverages at this year's Cinco De Mayo Celebration on May 6, 2006; and WHEREAS, the Parks, Recreation, and Beautification Board has recommended that Mi Casita be the sole participant allowed to sell alcoholic beverages at the Cinco De Mayo Celebration; and WHEREAS, the City agrees with the recommendation of the Parks, Recreation, and Beautification Board; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. Mi Casita shall be the sole participant allowed to sell alcoholic beverages at the Cinco De Mayo Celebration on May 6, 2006 at the Civic Center Park upon the following conditions: I. They shall be responsible to obtain the temporary license and permit for selling alcoholic beverages approved by appropriate state agency; 2. They shall provide the security necessary for the sale of alcoholic beverages; 3. They shall provide general comprehensive liability insurance from a responsible carrier, with the City as an additional insured, in the amount of $500,000.00. 4. They agree to indemnify the City of Denton against any liability incident to the selling of alcoholic beverages at the Cinco De Mayo Celebration. S90ur Documents\Resolutions\06\Qnco De Mayo alcohol sell.doc SECTION 2. The City Manager or his designee is authorized to execute an agreement in conformity with this Resolution, which shall be substantially in the form of the agreement attached hereto and made a part hereof by reference. SECTION 3. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the _L66kday of , 2006. i EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL-FO EDWIN M. S ER-,CITY ATTORNEY BY - i Page 2 of 2 RESOLUTION FILE REFERENCE FORM R2006-013 X Additional File Exists Additional File Contains Records Not Public, According to the Public Records Act Other FILES Date Initials Amended by Resolution No. R2006-026 08/01/06 J R Rescinded by Resolution No. R2009-015 06/16/09 J R S:\Our Documents\Reso1utions\06\Wudit Committee Resolution.doc RESOLUTION NO. R2006- 0/9- A RESOLUTION ESTABLISHING THE CITY COUNCIL AUDIT COMMITTEE AS A STANDING COMMITTEE OF THE CITY COUNCIL; APPOINTING THE INITIAL MEMBERS OF THE COMMITTEE; APPROVING A COUNCIL AUDIT COMMITTEE DIRECTIVE, AUDIT COMMITTEE BYLAWS, AND INTERNAL AUDIT CHARGE; SUPERCEDING RESOLUTION NO. R2005-052; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council is of the opinion and hereby finds, that there are many important issues and responsibilities facing the Council that require a specific standing audit committee (the "Audit Committee" or "Committee") to provide the governance and oversight of the organization's audit activities, internal controls, and financial and operational reporting; and WHEREAS, subsections 2.08(q)(r) and Section 2013 of the City of Denton Charter authorize the Council to provide for the auditing and investigation of the municipal affairs of the City; and WHEREAS, to that end it is important that the City's internal audit function be independent and free from improper influence.or coercion; and WHEREAS, the Government Accounting Standards, promulgated by the United States General Accounting Office, Section 3.03 provides that the general standard related to independence is that all matters relating to the audit work, the audit organization and the individual auditor, whether government or public, should be free both in fact and appearance from personal, external, and organizational impairments to independence; and WHEREAS, the establishment of the Audit Committee will help to insure independence in such internal audit matters; and WHEREAS, the City Council is of the, opinion and hereby finds the establishment of the Audit Committee is in the public interest; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The findings and recitations contained in the preamble of this resolution are incorporated herein by reference. SECTION 2. The City Council hereby establishes the Audit Committee as a standing committee of the Council. The Committee shall consist of the mayor and two City Council members appointed by the City Council. The Audit Committee shall conduct its activities in accordance with Council Audit Committee Directive, Bylaws of the Audit Committee, and Internal Audit Charge, attached hereto and made a part hereof as Exhibits A, B, and C, respectively. S:\Our Documents\Resolutions\06\Audit Committee Resolution.doc SECTION 3. The initial members of the Audit Committee shall be the same members currently serving on the Council's existing audit committee, being: Mayor Euline Brock, Chair, Councilmember Joe Mulroy, and Councilmember Charlye Heggins. The Committee members shall serve at the pleasure of the City Council until successors are duly appointed by the Denton City Council and become qualified to serve. The appointments to the Committee shall take place during the City Council's decisions on Boards and Commissions. The appointment of Committee officers shall take place annually, at the first meeting following the official appointment of the members by the Council. Members of the Committee must be current elected City Council members of the City of Denton, Texas. The Audit Committee members, to assist in fulfilling their governance objectives, are authorized to appoint ex officio members as defined in the Bylaws of the Audit Committee. SECTION 4. Pursuant to the Bylaws of the Audit Committee the City Manager and Internal Auditor are ex-officio members of the Audit Committee. SECTION 5. Resolution No. R2005-052 is hereby superseded. SECTION 6. This resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the l h day of , 2006. GAG EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY By: Page 2 RESOLUTION %(+$1$%$1$-"$%.1, R2006014 AdditionalFileExists AdditionalFileContainsRecordsNotPublic,AccordingtothePublicRecords Act Other %(+$2#§º«(´¯º¯§²¹ RepealedbyResolutionNo.R201302108/20/13JR RESOLUTION NO. ZOD~p-Q/~ A RESOLUTION ESTABLISHING A PUBLIC ART POLICY FOR THE CITY OF DENTON, TEXAS; TO BE ADMINISTERED BY THE PARKS AND RECREATION DEPARTMENT. WHEREAS, the City of Denton recognizes the role of public art in sustaining and promoting its unique and creative community identity and as an economic development resource; and WHEREAS, the Denton Plan establishes goals and strategies related to public art in urban design, street rights of way, parks and other public and private venues; and WHEREAS, the City of Denton City Council established a Public Art Policy Development Task Force to draft a Public Art Policy; and WHEREAS, the Public Art Policy Development Task Force is recommending a comprehensive Public Art Policy that encourages public/private partnerships and establishes funding strategies; and WHEREAS, the Parks, Recreation and Beautification Board has recommended approval of the Public Art Policy; NOW THEREFORE; THE CITY COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. That the City of Denton, Public Art Policy, attached hereto, is hereby adopted and approved. PASSED AND APPROVED this, the day of2006. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY- APPROV AS LEGAL FORM: EDWIN SNYDER, CITY ATTORNE-v B City of Denton Public Art Policy 1. Intent and Purpose The City of Denton's Public Art Policy confirms the commitment that the Denton community has for sustaining and promoting its unique, creative identity. Art enhances the cultural, physical, and psychological environment by enlivening and humanizing public spaces. As stated in The Denton Plan:I "Public art provides a number of benefits to the city. It can create interest, create local distinctiveness, provide a memorable image associated with the city or certain districts within the city, lend character to urban spaces, and make the urban environment more attractive." Denton has experienced a rich tradition of promoting the arts for over a century. The first art course was taught at the University of North Texas (Texas Normal College and Teacher Training Institute) in 1894 and at Texas Woman's University (Girls Industrial College) in 1901. Both art programs have had a significant impact on Denton, which continues today, making it a home for hundreds of professional artists and influencing Denton's visual heritage. In recognition of the role that public art already plays in Denton, by interpreting its history, character, and aspirations, and of the importance of integrating public art into the daily lives of its citizens, the City of Denton's Public Art Policy is established to achieve the following goals: • Create distinct, attractive, and inviting public space by including public art as an integral part of the design of spaces and around development. • Celebrate Denton's cultural heritage and diversity by encouraging collaboration between artists and the community. • Distinguish Denton's image in the metroplex by providing for the creation of quality public art in locations of prominent stature. • Foster community education and enjoyment of public art. • Promote a community environment that attracts artists to live and work, businesses to invest and locate, and residents to thrive. • Encourage participation in the provision of public art through public and private investment. • Advance collaboration between the City of Denton and the Greater Denton Arts Council (GDAC) in achieving the goals of this policy. II. Definition of Public Art Public art, as defined by this policy, encompasses the broadest definition of visual art including all artistic disciplines. Public art governed by this policy shall be art that is visually or physically accessible to the public and that is acquired by, donated to, and approved by the City of Denton. Public art that is neither paid for with public funds, nor Denton Plan 1999-2020 Comprehensive Plan of the City of Denton, Texas Policies, Goals, Strategies & Implementation. created through special conditions by approval of the City of Denton, is not governed by this policy. III. Policy Administration The City Council shall establish and appoint a Public Art Committee that will serve in an advisory capacity to the Parks, Recreation and Beautification Board. This Public Art Committee, established by separate ordinance, will make recommendations on the: • Commissioning, placing, and installing of public art • Implementation of funding mechanism(s) for public art • Effective and efficient management of public art • Ongoing maintenance of public art • Accessioning, deaccessioning and resiting of public art The Public Art Committee will provide an annual report detailing its goals and accomplishments related to the implementation of this policy. The Parks and Recreation Department will administer the Public Art Policy for the City of Denton in collaboration with GDAC. The Denton City Council will appoint two members representing the GDAC to the Public Arts Committee. The GDAC Board of Directors will nominate these members. GDAC Executive Director and the Parks & Recreation Director will serve as ex-officio members on the Public Art Committee. The Public Art Committee will develop detailed guidelines outlining all aspects involved with the implementation of this policy. IV. Communitv Involvement The Parks, Recreation and Beautification Board and the City Council ensure citizen involvement through the establishment of the Public Art Committee and the review and approval of each public art project. In addition, the Public Art Committee will work with GDAC and local educational institutions to educate and inform citizens about projects and the process for involvement. V. Fundine Funding for public art should be realized from both public and private sources to insure a broad and balanced program. Public Funding • The City of Denton shall include a base of 2% for the arts from all future Capital Improvement Programs, with the option and flexibility to increase to a 4% maximum, based on needs and economic conditions. Funds appropriated will be utilized to support City approved and initiated projects. Funds from individual projects can be combined into aggregate project(s). • Annually, commencing with program year 2007, at least 2.4% of the total Hotel Occupancy Tax revenues will be allocated for public arts projects as allowed under Texas Tax Code 351.103 (c). This represents 16.01% of the 15% maximum that is allowed for the arts category, and allows for sustained funding Page 2 of 5 of existing agencies in the arts category and provides a balance for potentially new agencies. Funding eligibility will be contingent on fulfillment of financial, reporting, and use requirements as outlined by the Hotel Occupancy Tax Program Guidelines. • Tax abatements to developers that include publicly accessible art as a significant component of the development are outlined in the Denton Policy for Tax Abatement. Fifty percent of the tax abatement savings from 5% abatement should be committed to public art. Private Funding • The Parks and Recreation Department, Public Art Committee, and GDAC will actively pursue public and private sources to fund public art initiatives. • Individuals, businesses and organizations will also be encouraged to make contributions. All funds for public art received by the City of Denton from any source other than Capital Improvement Programs and HOT funds will be deposited in a public art agency account established by the City of Denton. This fund will be used to support city-initiated projects as approved by the City of Denton. The Parks and Recreation Department will administer this fund and agency account. The Public Art Committee will have responsibility for making recommendations for allowable uses of these funds with final approval by the City Council. VI. Site Selection As established in The Denton Plan: • The provision of public art will normally be expected as part of any large development scheme. • Public art should be considered as an integral part of the design of space in and around development. • The Public Art Committee should adopt standards to guide the placement of art in public places such as landmarks, view corridors, pockets, traffic circles, and other locations of prominent stature. Site locations for public art will be identified and recommended by the Public Art Committee to the Parks, Recreation and Beautification Board, with final approval by the City Council. The Public Art Committee will make its recommendations to: • Complement and supplement other planning documents and adopted masterplans. • Insure visual and physical access by the public. • Insure suitability and appropriateness of art to the site. • Provide a balanced and equitable distribution of art in the city. • Allow for efficient management and maintenance of the art at the site location. Page 3 of 5 VII. Eligible Projects The Public Art Committee will be responsible for the development of specific guidelines in making recommendations for eligible projects. In general, eligible projects will include: • The commissioning of permanent works designed for specific public sites in Denton • The loan, purchase, or donation of art works • The installation of short-term projects that result in the creation of temporary or permanent public art VIII. Art and Artist Selection The Public Art Committee will develop and adopt specific criteria for the selection of artists and artwork with final approval from the City Council. Methods used for artist selection may include open competition, invitational competition, or direct selection and must comply with all laws, regulations, and city policies governing purchasing. IX. Ownership and Copyright Permanent pieces of public art shall be the property of the City of Denton. The City shall own the physical work, with unlimited reproduction rights allowed the City for appropriate promotional and educational purposes. Legal title and copyrights in any work of public art will be spelled out contractually between the City and the artist/owner. X. Maintenance Prior to acceptance of any piece of artwork, the Public Art Committee is required to develop a recommendation for its short and long-term maintenance, including a budget for each project. All permanent public art projects must have a maintenance plan that projects both staff time and funding required to properly maintain the work. The City of Denton shall be responsible for the maintenance and management of city initiated public art projects. XI. Accessioning, Deaccessioning, and Resitina of Public Art Gift acceptance and placement of public art should be in accordance with historic use and in keeping with the City of Denton general public art goals. The quality, scale, and character of the gift should be appropriate to the particular setting. Donations of works that require the City of Denton to pay installation, framing, restoration, or repair are not encouraged. The City of Denton will evaluate such expenditures at the time the gift is considered. Works of art requiring high or excessive maintenance may be declined. All donations of art must be reviewed by the Public Arts Committee and the Parks, Recreation and Beautification Board, and must be approved by the City Council. In accordance with the provisions of guidelines established by Public Art Committee, the City of Denton shall deaccession and dispose of works of art in its collection only when it finds such action to be in the public interest or as a means of improving the quality of the collection or public safety. Works of public art may be relocated or removed if a gift or commissioned piece becomes a hazard or liability or if the approved terns of acceptance are not fulfilled. Works of art that meet the definition for public art covered by this Page 4 of 5 policy but which came into existence prior to the adoption of the policy will be subject to this same deaccessioning procedure. XII. Temporary Exhibits Public art projects may include installations, artist-in-residence programs, and other short-term projects that result in the creation of temporary public art. XIII. Lending Poliev Artwork may be loaned to other agencies or entities if deemed appropriate by the Public Art Committee with final approval of the City Council. The Public Art Committee will be responsible for recommending criteria for establishing a lending policy. The Denton Public Art Policy is based upon the Arlington County, Virginia, Public Art Policy. Page 5 of 5 RESOLUTION PPP77~~,)ur Documents\Reso1utions\06\ESD Resolution.doc RESOLUTION NO. ZDD~_~ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, CONSENTING TO THE INCLUSION OF ITS EXTRATERRITORIAL JURISDICTION WITHIN THE PROPOSED DENTON COUNTY EMERGENCY SERVICES DISTRICT NO. 1 PURSUANT TO CHAPTER 775 OF THE TEXAS HEALTH AND SAFETY CODE; AUTHORIZING THE MAYOR TO NOTIFY THE COUNTY COMMISSIONERS COURT AND REPRESENTATIVE OF THE DENTON COUNTY EMERGENCY SERVICES DISTRICT NO. 1 OF THIS CONSENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the cities of Argyle, Bartonville, Copper Canyon and other Denton County entities have petitioned the County Commissioners Court to create an Emergency Services District for fire and emergency medical services in the area currently served by the Argyle Volunteer Fire District in accordance with Chapter 775 of the Texas Health and Safety Code; and WHEREAS, the proposed Emergency. Services District No. 1 includes a portion of the extraterritorial jurisdiction of the City of Denton shown on the attached Exhibit A which is made a part of this Resolution for all purposes; and WHEREAS, in order to be included in the Denton County Emergency Services District No. 1, the City Council must consent to the inclusion of its extraterritorial jurisdiction ("ETJ") within the proposed Denton County Emergency Services District No. 1; and WHEREAS, the City Manager recommends that the City Council consent to the inclusion of the City's ETJ's territory shown in the attached Exhibit A to be included within Denton County Emergency Services District No. 1; and WHEREAS, the City Council deems it in the public interest to consent to the inclusion of its ETJ within the Denton County Emergency Services District No. 1; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The findings set forth in the preamble of this Resolution are incorporated by reference into the body of this Resolution as if fully set forth herein. SECTION 2. The City Council hereby consents to the inclusion of the portion of its ETJ shown on the attached Exhibit A within the proposed Denton County Emergency Services District No. 1. SECTION 3. The Mayor is directed to send a true and correct copy of this Resolution to the County Commissioners Court and to the appropriate officials of the Denton County Emergency Services District No. 1 notifying them of the City Council's consent to the inclusion of this portion of its ETJ within the proposed Denton County Emergency Services District No. 1. S\Our Documents\Resolution06TSD Resolution.doc SECTION 4. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the Z day of , 2006. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY \ I J APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: Page 2 of 2 Exhibit A ~soaaooo , , <z i` f { S e ppp9 'r r ty 8fi Z4 & i 9 Y 2 yf t r N w hsT• jar M 1x~' r ~ jM~ y y] aE d n3,u m'`~` Pia y $ g~Y k nT ~ m IN W hv4 h. J 0 W J 0 a RESOLUTION S:\Our Documents\Resolulions\06\Resolulion ATMOS Rate Case.doc RESOLUTION NO. ZOD - / p A RESOLUTION BY THE CITY OF DENTON, TEXAS ORDERING ATMOS ENERGY, MID-TEX DIVISION TO SHOW CAUSE REGARDING THE REASONABLENESS OF ITS EXISTING NATURAL GAS DISTRIBUTION RATES WITHIN THE CITY; REQUIRING ATMOS ENERGY, MID-TEX DIVISION, TO SUBMIT A RATE FILING PACKAGE BASED ON A TEST YEAR ENDING DECEMBER 31, 2005; AUTHORIZING THE CITY TO JOIN WITH OTHER CITIES KNOWN AS THE ATMOS TEXAS MUNICIPALITIES ("ATM") TO DIRECT THE ACTIVITIES OF LAWYERS AND CONSULTANTS; AUTHORIZING THE HIRING OF ATTORNEYS AND CONSULTANTS; DIRECTING THAT SUCH FILING SHALL BE MADE PRIOR TO MAY 31, 2006; REQUIRING REIMBURSEMENT OF REASONABLE LEGAL AND CONSULTANT EXPENSES; FINDING THAT THE MEETING COMPLIES WITH THE OPEN MEETINGS ACT; MAKING SUCH OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City is a regulatory authority under the Gas Utility Regulatory Act ("GURA") and has original jurisdiction over the gas utility rates of Atmos Energy, Mid-Tex Division ("Atmos"); and WHEREAS, the City has the authority under 103.001 and 104.151, GURA, to initiate a proceeding to determine whether the existing rates of a gas utility are unreasonable or in any way in violation of any provision of law; and WHEREAS, a different company, known as TXU Gas, had been the natural gas distribution provider for the City until the system was purchased by Atmos Energy Corporation in September 2004; and WHEREAS, due to the acquisition by Atmos Energy Corporation there is a need to determine if Atmos' rates are excessive; and WHEREAS, Atmos should be required to show cause whether its rates and its overall rate of return are reasonable; and WHEREAS, a coalition of cities known as Atmos Texas Municipalities ("ATM") has been organized to review the reasonableness of rates and services in the Mid-Tex region; and WHEREAS, ATM was previously the Alliance of TXU Municipalities and it operated as a coalition of cities for most of the last ten years; and WHEREAS, the City benefits from the expertise and the efficiencies of ATM in reviewing the reasonableness of Antics' rates and services; and WHEREAS, under GURA § 103.022 Atmos is required to reimburse the reasonable rate case expenses of the ATM cities; NOW, THEREFORE, S10ur Documents\Resolutions\06\Resolution ATMOS Rate Case.doc THE CITY COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The findings set out in the preamble to this resolution are hereby in all things approved. SECTION 2. Atmos is hereby directed to show cause regarding the reasonableness of its existing natural gas distribution rates within the City. A rate filing package consistent with the rate filing package ordinances of the Cities of Denton and Longview shall be filed by May 31, 2006, based upon a test year ending on December 31, 2005. SECTION 3. In the event that Atmos claims that it is entitled to an increase in rates, Atmos shall provide public notice in a manner which is consistent with the public notice ordinances for the Cities of Leander, Greenville, Burnet, Corsicana, Manor, Bertram, Gatesville, Longview and Denton. SECTION 4. The City shall participate with other cities in the aforementioned proceedings as part of a coalition of cities known as the Atmos Texas Municipalities ("ATM") and ATM shall select the experts to work with special counsel. SECTION 5. Atmos shall reimburse within 30 days after submission the City's reasonable monthly costs associated with the City's activities related to the rate review or in related proceedings. SECTION 6. Subject to the right to terminate employment at any time, the City authorizes Jim Boyle, Alfred R. Herrera and Daniel Lawton to act as special counsel with regard to rate proceedings involving Atmos before the City, the Railroad Commission of Texas or any court of law. SECTION 7. The meeting at which this Resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings act, Texas Government Code, Chapter 551. SECTION 8. This Resolution shall become effective from and after its passage. SECTION 9. The City Attorney or his designee shall send a copy of this Resolution to Mr. Richard Reis, Atmos Energy Corporation, 5420. LBJ Freeway, Suite 1800, Dallas, Texas 75240 and to Mr. Jim Finley, City Attorney, City of Longview Texas at fax number 903-237- 1009. PASSED AND APPROVED this the 2 day of 12006. EULINE BROCK, MAYOR Page 2 of 3 S:\Our Documents\Resolutions\06\Resolution ATMOS Rate Case.doc ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: 1 j a~ )d- 1 2dz APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: Page 3 of 3 RESOLUTION S:\Our Documents\Resolutions\06\Resolution ATMOS GRIP 4-6-06.doc RESOLUTION NO. ZOOS ' / RESOLUTION OF THE CITY OF DENTON TEXAS AUTHORIZING THE SUSPENSION OF THE EFFECTIVE DATE UNTIL JULY 14, 2006 FOR THE GAS RELIABILITY INFRASTRUCTURE PROGRAM ADJUSTMENTS FOR CALENDAR YEAR 2005 PROPOSED BY ATMOS ENERGY CORPORATION'S MID-TEX DIVISION (ATMOS ENERGY); AUTHORIZING PARTICIPATION IN A COALITION OF CITIES KNOWN AS ATMOS TEXAS MUNICIPALITIES ("ATM"); AUTHORIZING THE HIRING OF LAWYERS AND RATE EXPERTS; AUTHORIZING THE CITY'S PARTICIPATION TO THE FULL EXTENT PERMITTED BY LAW AT THE RAILROAD COMMISSION OF TEXAS WITH REGARD TO ANY GAS RELIABILITY INFRASTRUCTURE PROGRAM ADJUSTMENTS PROPOSED BY ATMOS ENERGY; REQUIRING THE REIMBURSEMENT OF MUNICIPAL RATE CASE EXPENSES; FINDING THAT THE MEETING COMPLIED WITH THE OPEN MEETINGS ACT; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, on or about March 31, 2006 the Atmos Energy Corporation's Mid-Tex Division ("Atmos Energy") filed an application with the City to increase gas rates for its Gas Reliability Infrastructure Program ("GRIP") for calendar year 2005 pursuant to Section 104.301 of the Gas Utility Regulatory Act ("Act"); and WHEREAS, due to the ratemaking complexity of Section 104.301 of the Act and the fact that this is just the third application for recovery under that section of the Act; it is therefore necessary to engage the expertise of lawyers and consultants who specialize in ratemaking proceedings before regulatory authorities to assist the City as provided for in Section 103.022 of the Act; and WHEREAS, given the complexity and the need to carefully review the proposed GRIP adjustment it is necessary to suspend the effective date for implementing the GRIP adjustment until at least July 14, 2006 in order to allow the City's rate experts sufficient time to determine the merits of Atmos Energy's proposed GRIP adjustment; and WHEREAS, in order to maximize the efficient use of resources and expertise in reviewing, analyzing and investigating Atmos Energy's request for a GRIP adjustment it makes sense to coordinate the City's efforts with a coalition of similarly situated municipalities; and WHEREAS, a coalition of municipalities, known as the Alliance of TXU Municipalities ("ATM") has been active in gas utility ratemaking proceedings; and WHEREAS, in light of the sale of TXU Gas to Atmos Energy, the coalition known as the Alliance of TXU Municipalities is now known as the Atmos Texas Municipalities ("ATM"); and WHEREAS, the City will join with other cities participating in ATM in a steering committee in order to coordinate the hiring and direction of legal counsel and consultants working on behalf of ATM and the City; NOW, THEREFORE, S:\Our Documents\Resolutions\06\Resolution ATMOS GRIP 4-6-06.doc THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The statements set out in the preamble to this resolution are hereby in all things approved and adopted. SECTION 2. The effective date for the proposed GRIP adjustments by Atmos Energy, and the tariffs related thereto, are hereby suspended until July 14, 2006 in order to complete the review and investigation by City's experts. SECTION 3. The City is authorized to join with other cities in a coalition of cities known as the Atmos Texas Municipalities ("ATM") with the understanding that the steering committee of ATM will provide direction and guidance to the lawyers who are representing said cities. SECTION 4. The City employs Jim Boyle, Alfred Herrera and Daniel Lawton as special counsel to represent the City with regard to the proposed GRIP adjustments of Atmos Energy before local and state regulatory authorities and any court of law and authorizes special counsel to employ such rate experts as are recommended by the ATM Steering Committee. SECTION 5. The City, in coordination with the Steering Committee, shall review the invoices of the lawyers and rate experts for reasonableness before submitting the invoices to Armes Energy for reimbursement. SECTION 6. City's legal representatives shall have the right to obtain additional information from Atmos Energy through the service of requests for information, which shall be responded to within twenty (14) days of receipt of such requests for information. SECTION 7. Atmos Energy shall reimburse the City, through the designated representative city of the Steering Committee, for the reasonable costs of attorneys and consultants and expenses related thereto, upon the presentation of invoices reviewed by the Steering Committee. SECTION 8. The City Attorney or his designee shall notify Atmos Energy of this Resolution by sending a copy of same to Mr. Richard Reis, Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1823, Dallas, Texas 75240-2601 and ATM shall be notified by sending a copy of this resolution to Mr. Jim Finley, City Attorney for the City of Longview by fax to (903) 239-5539. SECTION 8. The meeting at which this Resolution was approved was in all things conducted in strict compliance with the Texas Open Meetings act, Texas Government Code, Chapter 551. SECTION 9. This Resolution shall become effective from and after its passage. Page 2 of 3 S:\Our Documents\Resolutions\06\Resolution ATMOS GRIP 4-6-06.doc PASSED AND APPROVED this the z day of U 2006. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: Page 3 of 3 RESOLUTION S:\Our Documents\Resolutions\06\2006 Action Plan Resolution.doc RESOLUTION NO. e2006-010 A RESOLUTION OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE CITY MANAGER TO SIGN AND SUBMIT TO THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT A 2006 ACTION PLAN FOR HOUSING AND COMMUNITY DEVELOPMENT WITH APPROPRIATE CERTIFICATIONS, AS AUTHORIZED AND REQUIRED BY THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974, AS AMENDED AND THE NATIONAL AFFORDABLE HOUSING ACT OF 1990, AS AMENDED; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Denton, Texas, is concerned with the development of viable urban communities, including decent housing, a suitable living environment and expanded economic opportunities; and WHEREAS, the City of Denton, Texas, has a special concern for persons of low and moderate income; and WHEREAS, the City of Denton, Texas, as a CDBG entitlement City and a HOME participating jurisdiction, has prepared, through a citizen participation process, a program for utilizing its 2006-year entitlement funds, program income and reallocated funds in the approximate amount of $1,645,424; and WHEREAS, citizen participation requirements, including the holding of public hearings, have been met; and WHEREAS, the Community Development Act of 1974 and the National Affordable Housing Act of 1990 require an application and appropriate certifications included in the Consolidated Plan; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City Council of the City of Denton, Texas, authorizes the City Manager to sign and submit to the Department of Housing and Urban Development a 2006 Action Plan and appropriate' certifications for entitlement funds under the Housing and Community Development Act of 1974, as amended and the National Affordable Housing Act of 1990, as amended. SECTION 2. The City Council of the City of Denton, Texas, authorizes the Community Development Administrator to handle all fiscal and administrative matters related to the application, the Action Plan and the certifications. SECTION 3. The City Secretary is hereby authorized to furnish copies of this resolution to all interested parties. SECTION 4. This resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 12006 K-oa'e'~ /~L W-C-- EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYD CITY ATTORNEY BY: RESOLUTION SAOur Documents\Resolutions\06\911 nominate member.doc RESOLUTION NO.~ A RESOLUTION NOMINATING A MEMBER TO THE BOARD OF MANAGERS OF THE DENCO AREA 9-1-1 DISTRICT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the term of office of Harlan Jefferson, Flower Mound Town Manager, a member of the Board of Managers of the Denco 9-1-1 District, will expire on September 30, 2006; and WHEREAS, Section 772.306(c)(2) of the Health and Safety Code (V.A.C.S.) provides that two voting members of the Board of Managers of an Emergency Communication District shall be appointed jointly by participating municipalities located in whole or in part in the District; and WHEREAS, the City of Denton, Texas wishes to nominate a member to said Board; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON, TEXAS, HEREBY RESOLVES: SECTION 1. The City of Denton, Texas hereby nominates Harlan Jefferson as a member to the Board of Managers for the Denco Area 9-1-1 Emergency Communication District of Denton County for a two-year term to commence October 1, 2006. SECTION 2. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the /10/~( day of U&IdL 2006. Y4, PERRY R. McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: n APP VED A TO LEGAL FORM: EDWIN M. SNYDE CITY ATTO EY BY: RESOLUTION S:\Our Documents\Resolutions\06\2007 Den Central Appraisal Dist Budget.doc RESOLUTION NO. 9006 -1).Z&9 A RESOLUTION OF THE CITY OF DENTON, TEXAS, APPROVING THE 2007 BUDGET OF THE DENTON CENTRAL APPRAISAL DISTRICT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the 2007 proposed budget of the Denton Central Appraisal District was submitted to the City of Denton on May 4, 2006; and WHEREAS, the proposed budget contains a list showing each proposed position, the proposed salary for the position, all benefits proposed for the position, each proposed capital expenditure, and an estimate of the amount of the budget that will be allocated to the City of Denton, Texas; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City Council, pursuant to Article 6.06 of the Texas Tax Code, approves the 2007 proposed budget of the Denton Central Appraisal District. SECTION 2. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 12006. PERRY MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: 11 APPR ED A TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: RESOLUTION RESOLUTION NO. R2006- 02 / A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS SUPPORTING THE EFFORTS OF THE TEXAS MUNICIPAL POWER AGENCY, A JOINT POWERS AGENCY, TO OBTAIN COMPETITIVE RAIL TRANSPORTATION RATES FOR THE TRANSPORTATION OF ITS COAL; PROVIDING AN EFFECTIVE DATE. WHEREAS, the Texas Municipal Power Agency ("TMPA"), is a joint powers agency formed under Texas law by the cities of Bryan, Denton, Garland and Greenville in 1975 for the purpose of generating and providing electric power to its four (4) member cities; and WHEREAS, in 1983, TMPA began commercial operations, generating electric power from its Gibbons Creek Plant, near Bryan, Texas, utilizing locally-mined lignite coal for fuel; and WHEREAS, in an effort to obtain a cleaner burning and more economical fuel, TMPA converted its fuel source from locally-mined lignite coal to Wyoming Powder River Basin coal in 1996, and at that time began receiving coal transportation services from the Burlington Northern Railroad, now the Burlington Northern Santa Fe Railroad (`BNSF"), to transport coal from Wyoming to its Gibbons Creek plant near Bryan, Texas; and WHEREAS, BNSF is the sole provider of rail transportation to the Gibbons Creek plant near Bryan, Texas, and as a result, BNSF charges "captive" rates for transporting coal to TMPA, in interstate commerce, that are significantly higher than those rates that are being charged to similarly situated electric utilities that have access to more than one railroad; and WHEREAS, TMPA has, among other options, tirelessly pursued contract negotiations with BNSF, and has pursued rate relief before the Surface Transportation Board ("STB"), all of which efforts have brought no significant relief to the captive rate charged TMPA; and WHEREAS, TMPA expects to operate the Gibbons Creek Plant for at least thirty (30) more years, and with potential plans for a second unit, the Member Cities could pay an estimated $300 to $800 million or more, over the next forty (40) to fifty (50) years if TMPA is unsuccessful in lowering the rail transportation costs for coal; and WHEREAS, our city is dependent upon competitive electric power rates in our deregulated Texas electric market in order to sustain economic development and quality of life and services for our citizens; NOW, THEREFORE, THE COUNCIL OF CITY OF DENTON HEREBY RESOLVES: SECTION 1 The City Council of the City of Denton, Texas urges Members of Congress and U.S. Senators to work with the TMPA in its efforts to acquire a reasonable rail rate for coal transportation services, and in turn, continue to provide the City of Denton, Texas with electric power that is competitively priced with other Texas communities. SECTION 2. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of__i 12006. i PE R. McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: Q~ APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: S:\Our Documents\Resolutions\06\TMPA Coal Resolution-Railroad Transportation Rate-2006.doc RESOLUTION S:\Our Documents\Resolutions\06\Foreign Trade Zone.doc RESOLUTION NO. - L' A RESOLUTION OF THE CITY OF DENTON SUPPORTING THE ESTABLISHMENT OF A FOREIGN TRADE ZONE IN THE CITY OF DENTON'S INDUSTRIALLY-ZONED AREA NEAR THE DENTON AIRPORT AND AT THE UNIVERSITY OF NORTH TEXAS RESEARCH PARK IN ORDER TO STIMULATE ECONOMIC DEVELOPMENT GROWTH AND ACTIVITY; TO ENCOURAGE INTERNATIONAL TRADE AND CREATE JOBS AND INVESTMENT IN THE CITY OF DENTON; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Foreign Trade Zone ("FTZ") Act was established by Congress in 1934; and WHEREAS, the purpose of a FTZ is to expedite and encourage foreign commerce to stimulate international trade and create jobs and investment in the United States; and WHEREAS, FTZs encourage import and export activities by exempting or reducing duty tariffs and local ad valorem taxes on the inventory eligible for FTZ status; and WHEREAS, Denton businesses and property owners in the industrially-zoned area near the Denton Municipal Airport and the University of North Texas Research Park have indicated an interest in the establishment of a FTZ at the University of North Texas Research Park and the industrially zoned area near the Denton Municipal Airport; and WHEREAS, Denton businesses and property owners in the industrially-zoned area near the Denton Municipal Airport and the University of North Texas Research Park are willing to share in the FTZ application costs; and WHEREAS, the application process requires letters of support from the local taxing entities - the City of Denton, Denton County and the Denton Independent School District; NOW, THEREFORE, THE COUNCIL OF CITY OF DENTON HEREBY RESOLVES: SECTION 1. In order to stimulate economic development growth and activity in the City of Denton industrially-zoned area near the Denton Airport and encourage development and business opportunities at the University of North Texas Research Park, and encourage international trade and create jobs and investment in the City of Denton, the Mayor of the City of Denton is hereby authorized by the City Council to write a letter to the Executive Secretary of the FTZ Board in Washington, D.C. in support of the establishment of a FTZ in the industrially- zoned area near the Denton Airport and in the University of North Texas Research Park which are more fully described and shown in the attached Exhibit A which is made a part of this Resolution for all purposes. SECTION 2. This Resolution shall become effective immediately upon its passage and approval. • S \Our Documents\Res0lulions\06\Forcign I, adc Zone.doc PASSED AND APPROVED this the 20 f- day of /7- ~/L1J 2006. PER R. MCNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPRO D AS LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: Page 2 of 2 EXHIBIT A ',_2 Nt7y!-z .la .s NRbiil,l2 fJ S N AU N -0 t1' INR2 - I r NR•4 N R_$ _ )NR-o NR NR I NR-6: . -,'21" N '4 i NR ~4 NRMU'NRMU qmq m• NR•At f i NR3" M_C Z R-4 wy -0 NRE~ F - RR$•zNIR RC - SOMI,a NR-0 p}-_ JR3 NR 2: NR -3 Nu .1 * a~'v-.1.x{NtR3NU-~^FVR =12 jMU NR' n`R~~_ NR ftE' NR NIR n!R L NP-4 NR .2 N.iA lJR+1 NR-3h Lt'12-0 NRb NR-T NR $C NR3 NR "rNRMU-12 N?r .QFS~iry R_y NP.h Wt?~ NR-2' ],!R3 J"R j?Fv1 13A DC r NR-3, E ~MN(~^7df C.r ~tT hn ^ - .72 -0 DR / R-4 r•,.4 .•I ill: IC-E NR.2~ tn1F.MNR Mtl-12 D _ u{JD NRbfNR$'~ ETJ,ICEIC;Et EC-C. N INR.B' .DR•2 Mi4 NR'-2 r' NR3 IJR3 NR-a R ~-1-77- IdEMTJi t2 D 2DR1 NR 'A NR-4 OP-2 -1 NR3 !JRrrt Cbt. i DCl? r DR-2 D-x,,,DCN ,NRMMIJ-12 ICE 2 D' 4 D !DEHTOy DR-2- ~,NR•2 NR IC-G. .k ,^C"C Dft-2DftDR .f+tP.r3 .4 ! CMG:-DR,1 J. DR"i NR.4 NR C-C< N U i ~(dR.2 NRM', G DC-G fd+ NP, 3 D CDR-20C1> 4. 3- NR-2NRR Cc~ C NR r R'1 Ops<E~.,CM G G -E k A 1 4C-0 F3 rIR 2. -0. N}YUE 1 z: (EC EGI a RCN`-2 IC7F' ETJ. D NR3NR3 -E RS'NR-2' NR-3: MR 2 ! JR NR-2NRA rS?I -C~ RIRF: IC,.r~"EtC'C W-4 NR3NR, 1~lL P 11 PiR NR NRMUNR-6 -0* -4 Aft 2 NR3' N?3 NR.-2 3 fi-0 NR-2.. . NR. sn z x. ETJ .j_. ' to'.nb,a .F / 3iE.TJ- NR-014R.2 CM NRpdU-12 ETJ NR U NRA P ~ .0 F. E1 NR-5 NR-2 ID NF-1 ~4 i(rnton A R. .1,E TJ~ IVRA NRa N22 NRA, . - DISCLAIMER This data has been compiled for the City of Denton. Various _official and unofficial sources'were used to gather this Information. Evary effort was mada to -onsuro.tho accuracy of this, data, however. no guarantee N given or implied as to the accuracy of. said data. ~Glfy RESOLUTION S.\Our Documents\Resolutions\06\Section 108 App Resolulion.doc RESOLUTION NO. D 23 A RESOLUTION OF THE CITY OF DENTON, TEXAS, AUTHORIZING THE CITY MANAGER TO SIGN AND SUBMIT, TO THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, AN APPLICATION FOR A CDBG SECTION 108 LOAN GUARANTEE WITH APPROPRIATE CERTIFICATIONS, AS AUTHORIZED AND REQUIRED BY THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974, AS AMENDED; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Denton, Texas, is concerned with the development of viable urban communities, including decent housing; and WHEREAS, the City of Denton, Texas, has a special concern for persons of low and moderate income that currently reside in substandard housing; and WHEREAS, the City of Denton, Texas, wishes to submit a CDBG Section 108 Loan Guarantee Program application requesting funds to support the City's existing Home Improvement Loan Program in the approximate amount of $650,000; and WHEREAS, pursuant to federal regulations, the City of Denton, Texas has adopted a Citizen Participation Plan for the citizens to publicly comment on citizen participation requirements and proposed activities, and staff has complied with the Citizen Participation Plan, including the holding of public hearings; and WHEREAS, the City of Denton's Consolidated Plan for Housing and Community Development has been amended to include CDBG Section 108 Loan Guarantee funds as a potential source for housing rehabilitation and reconstruction programs within the City; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City Council of the City of Denton, Texas, authorizes the City Manager to sign and submit to the Department of Housing and Urban Development an application for CDBG Section 108 Loan Guarantee funding and appropriate certifications, including a certification providing assurance that the City has the legal authority to make the pledge of grants required under CFR 570.705 (b) (2), for funding under the Housing and Community Development Act of 1974, as amended, and the City Manager is authorized to exercise all rights and duties of the City under this application. SECTION 2. The City Council of the City of Denton, Texas, authorizes the Community Development Administrator to handle all fiscal and administrative matters related to the application. SECTION 3. The City Secretary is hereby authorized to furnish copies of this resolution to all interested parties. SECTION 4. This resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ';-Y~-Iday of 12006. NEILL, MAYOR *E4- ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: V~J Q l.d > APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: RESOLUTION FILE REFERENCE FORM R2006-024 X Additional File Exists Additional File Contains Records Not Public, According to the Public Records Act Other FILES Date Initials Replaced by Resolution No. R2010-007 03/02/10 ) R S.\Our Documents\Reso1utions\05\Debt Service Management Policy.doc RESOLUTION NO. A RESOLUTION REVISING ADMINISTRATIVE POLICY NO. 403.07 "DEBT SERVICE MANAGEMENT" AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on the 5°i day of March, 1996 the City Council passed Resolution No. 96-013 adopting Administrative Policy No. 403.07 "Debt Service Management"; and WHEREAS, the Assistant City Manager of the Finance Department for the City of Denton has presented a proposed revision of the Debt Service Management Policy for the Council's consideration; and WHEREAS, the City Manager recommends adoption of the revised policy and the City Council desires to adopt such policy as the official policy regarding Debt Service Management; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The following policy entitled "Policy No. 403.07 "Debt Service Management", attached hereto and made a part hereof, is hereby adopted as an official policy of the City of Denton, Texas and shall replace the existing Debt Service Management Policy. SECTION 2. The attached policy shall be filed in the official records with the City Secretary. SECTION 3. This resolution shall become effective immediately upon its passage and approval. T PASSED AND APPROVED this the,20 "day of ✓ 2006. PERK McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY VV BY: 4~ S,Ourp mmis@mlullmsWSOUM S,M,, M.,,g-asst Policy dm APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: Page 2 of 2 CITY OF DENTON PAGE I OF 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE REFERENCE NUMBER: SECTION: FINANCE 403.07 INITIAL EFECTIVE DATE: SUBJECT: DEBT MANAGEMENT 03/05/96 LAST REVISION DATE: TITLE: DEBT SERVICE MANAGEMENT 09/27/00 POLICY STATEMENT This policy shall provide general guidelines by which the City of Denton (the City) will issue debt. It is the objective of this policy that (1) the City obtain financing only when necessary, (2) the process for identifying the timing and amount of debt or other financing, proceed as efficiently as possible, and (3) the most favorable interest rate and other costs be obtained. This debt management policy applies,to the financing activities of the City of Denton, Texas. It also addresses the issues of process, use and limitations. Obligations will be timed for issuance and delivery of proceeds as close as possible to the time that contracts are expected to be awarded so that the proceeds are spent in the most efficient manner. ADMINSTRATIVE PROCEDURES 1. DEBT MANAGEMENT COMMITTEE A. Members The Debt Management Committee (the Committee) consists of the City Manager, Assistant City Manager (Utilities), Assistant City Manager (Finance), Chief Financial Officer, (Chief Budget Officer); and, financial advisor and bond counsel as ex-officio members. B. Scope The Committee shall meet as necessary to review the debt program. Included in its discussions will be such topics as: the Capital Improvement Program, status of financed projects, timing of additional financing needs, the effect of proposed financing activity on the related rates supporting the debt (i.e. property tax rate, utility rates, user fees, etc.). Page 2 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE Continued REFERENCE NUMBER: TITLE: DEBT SERVICE MANAGEMENT 403.07 II. RESPONSIBILITY AND STANDARD OF CARE The Fiscal and Municipal Services Department will coordinate all activities required for the issuance of all debt. A. Delegation The primary individual who shall be involved in the development of financing recommendations will be the Chief Financial Officer. The Assistant City Manager (Finance) shall be responsible for all debt financing activities and shall establish a system of controls to regulate the activities of the Chief Financial Officer. B. Conflicts of Interest All participants in the debt management process shall seek to act responsibly as custodians of public assets. Officers and employees involved in the debt management process shall refrain from personal business activity that could conflict with proper execution of the financing program, or which could impair their ability to make impartial financing decisions. C. Reporting The Chief Financial Officer shall prepare at least annually a report summarizing all debt outstanding by type (tax supported and revenue backed), remaining balance of bond proceeds, update of arbitrage liability, and update of pertinent legislative changes. D. Investor Relations The City shall endeavor to maintain a positive relationship with the investment community. The Chief Financial Officer and the City's financial advisor shall, as necessary, prepare reports and other forms of communications regarding the City's indebtedness, as well as its future financing plans. This includes information presented to the press and other media. The information includes annual program of services, comprehensive annual financial report, financial plans, capital improvement plans, comprehensive development plans, etc. All forms of media deemed appropriate and immediately available to the City will be utilized to disseminate information to all investors. Examples include Texas Municipal Report, The Bond Buyer, Nationally Recognized Municipal Security Information Repository and State Information Depository. Bond counsel will advise on the use of electronic media in connection with the City's debt program. Page 3 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE Continued REFERENCE NUMBER: TITLE: DEBT SERVICE MANAGEMENT 403.07 E. Financial Advisor The City shall retain an independent financial advisor for advice on the structuring of new debt, financial analysis of various options, the rating review process, marketing debt issues, marketability of City obligations, sale and post- sale services, the review of the official statement and other services as necessary. The City will seek the advice of the financial advisor on an ongoing basis. The financial advisor will perform other services as defined by the agreement approved by the City Council. F. Bond Counsel The City shall retain bond counsel for legal and procedural advice on all debt issues. Bond counsel shall advise the City Council in all matters pertaining to its bond ordinance(s) and/or resolution(s). No action shall be taken with respect to new obligations until a written instrument has been prepared by the bond attorneys certifying the legality of the proposal. The bond attorneys shall prepare all ordinances and other legal instruments required for the execution and sale of any bonds issued which shall then be reviewed by the City Attorney and Chief Financial Officer. The City will also seek the advice of bond counsel on all other types of debt and on any other questions involving federal tax or arbitrage law. Special counsel shall be retained to protect the City's interest in complex negotiations and comment review. III. OFFICIAL STATEMENT The preparation of the Official Statement is the responsibility of the financial advisor in concert with the Chief Financial Officer under the supervision of the Assistant City Manager (Finance). Information for the Official Statement is gathered from departments/divisions throughout the City. The City will take all appropriate steps to comply with the federal disclosure rules (i.e., Securities and Exchange Commission Rule 15C2-12). The City will provide annual and event disclosure to information repositories throughout the term of securities for the benefit of the primary and secondary municipal market. IV. DISCLOSURE A. With each bond offering, and at least annually, in the preparation of Financial Reports or Official Statements of any bond prospectus, the City will follow a policy of full and complete disclosure of financial and legal conditions of the City, in conformance with guidelines issued by the Government Finance Officers Association Disclosure Guideline, and as advised by disclosure counsel or Page 4 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE Continued REFERENCE NUMBER: TITLE: DEBT SERVICE MANAGEMENT 40107 financial advisor. Furthermore, all City finance and debt-related information which may appear in publicly distributed documents in anticipation of the issuance of bonds by the City Enterprise Funds, Redevelopment Agency or Housing Authority should be reviewed by the Finance Department prior to distribution to ensure that the information is presented on an accurate and consistent basis. B. Material Events Securities and Exchange Commission (SEC) Rule 15c2-12 lists eleven events that, if material, must be reported in a timely fashion to each Nationally Recognized Municipal Security Information Repository (NRMSIR) or to the Municipal Security Rulemaking Board (MSRB) and to the appropriate State Information Depository (SID). The events that must be reported, if material, are: 1. Principal and interest payment delinquencies; 2. Nonpayment related defaults; 3. Unscheduled draws on debt service reserves reflecting financial difficulties; 4. Unscheduled draws on credit enhancements reflecting financial difficulties; 5. Substitution of credit or liquidity providers, or their failure to perform; 6. Adverse tax opinions or events affecting the tax-exempt status of the security; 7. Modifications to rights of security holders; 8. Bond calls; 9. Defeasances; 10. Release, substitution, or sale of property securing repayment of the securities; 11. Rating changes. Unofficially considered, the twelfth material event to be reported is the failure of any obligated person to provide the required annual financial information on or before the date specified in the related undertaking. According to the SEC, this requirement would be satisfied if a disclosure contract states that the annual information would be provided within a specified number of days after the fiscal year end. Full disclosure of the operations will be made to the bond rating agencies. The City staff, with the assistance of the financial advisors and bond counsel, will prepare the necessary materials for and presentation to the rating agencies. V. RATING AGENCY COMMUNICATIONS & CREDIT OBJECTIVES The City will seek to maintain and improve its current bond rating so its borrowing costs are reduced to a minimum and its access to credit is preserved. Page 5 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE Continued REFERENCE NUMBER: TITLE: DEBT SERVICE MANAGEMENT 403.07 In conjunction with the financial advisor, the City shall maintain a line of communication with the rating agencies (Moody's, Standard & Poor's, and Fitch), informing them of major financial events in the City as they occur. The Comprehensive Annual Financial Report, Annual Program of Services, and Capital Improvement Plan, shall be distributed to the rating agencies after they have been accepted/adopted by the City Council on an annual basis. When necessary, a personal meeting with representatives of the rating agencies will be scheduled when a major capital improvement program is initiated, or to discuss economical and/or financial developments which might impact credit ratings. The following documents may be required for the rating agencies: - Most recent annual audit reports, including a description of accounting practices. Accounting changes in the past three years and the impact on financial results should be explained. - Current budget. - Current capital improvement program/plan. - Official statements for new financings. - Description of projects being financed. - Sources and uses statement for project being financed. If additional funds are required to complete project, the source of the funds and any conditional requirements will be discussed. - Engineering and feasibility report (if applicable). - Zoning or land-use map (if applicable). - Cash flow statement, in the case of interim borrowing. Statement of long - and short-term debt with annual and monthly maturity dates as appropriate. Also, a report of any lease obligations, their nature and term. - Indication of appropriate authority for debt issuance - Investment policy (if applicable). - Statement concerning remaining borrowing capacity plus tax rate and levy capacity or other revenue capacity. VI. LIMITATIONS OF INDEBTEDNESS City staff, in conjunction with the financial advisor and bond counsel, will produce a comprehensive analysis of debt capacity prior to issuing bonds. This document should cover a broad range of factors, including: • Legal debt limits, tax or expenditure ceilings. • Coverage requirements or additional bonds tests in accordance with bond covenants. • Measures of the tax and revenue base, such as projections of relevant economic variables (e.g., assessed property values, employment base, unemployment rates, income levels, and retail sales). Page 6 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE Continued REFERENCE NUMBER: TITLE: DEBT SERVICE MANAGEMENT 403.07 • Population trends. • Utilization trends for services underlying revenues. • Factors affecting tax collections, including types of property, goods, or services taxed, assessment practices and collection rates, evaluation of trends relating to the City's financial performance, such as revenues and expenditures, net revenues available after meeting operating requirements. • Reliability of revenues expected to pay debt service. • Unreserved fund balance levels. • Debt service obligations, such as existing debt service requirements. • Debt service as a percentage of expenditures or tax or system revenues. • Measures of debt burden on the community, such as debt per capita, debt as a percentage of personal income, debt as a percentage of full or equalized assessed property value, and overlapping or underlying debt. • Tax-exempt market factors' affecting interest costs, such as interest rates, market receptivity, and credit rating. The City has both revenue bonds and other indebtedness of the Electric, Water, Wastewater, and Solid Waste Funds. The City will endeavor to maintain two coverage ratios as provided in the City's outstanding bond covenants (e.g. 1.25 and/or 1.50 times, or as required by individual bond covenants). i The Electric, Water, Wastewater, and Solid Waste Funds' total long-term debt outstanding shall not exceed the amount of combined fund equity. VII. TYPES OF DEBT The City's bond counsel and financial advisor will present the different types of debt best suited and legally permissible under state law for each debt issue. These types may include: • short-term vs. long-term debt, • general obligation vs. revenue debt, • fixed vs. variable rate debt, • lease-backed debt, • special obligation debt such as assessment district debt, • conduit issues, and • taxable debt; A The City will seek all possible federal and state reimbursement for mandated projects and/or programs. The City will pursue a balanced relationship between issuing debt and pay-as-you-go financing. B. The City will match the term of long-term debt issued up to the life of the projects financed. Current operations will not be financed with long-term debt. Page 7 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE Continued REFERENCE NUMBER: TITLE: DEBT SERVICE MANAGEMENT _ 403.07 Debt incurred to finance capital improvements will be repaid within the useful life of the project. C. High priority will be assigned to the replacement of capital improvements when they have deteriorated to the point there they are hazardous, incur high maintenance costs, negatively affect property values, or no longer serve their intended purposes. D. An updated Capital Improvement Plan will be presented to the City Council for approval on an annual basis. This plan will be used as a basis for the long-range financial planning process. VIII. BOND STRUCTURE Structural features that may be considered are: • maturity of the debt, • setting the maturities of the debt equal to or less than the useful life of the project, • use of zero coupon bonds, capital appreciation bonds, deep discount bonds, or premium bonds, • debt service structure (level debt service payments, level principal payments or other repayment' structure defined by state law), • redemption provisions (mandatory and optional call features), • use of credit enhancement, • use of senior lien and junior lien obligations, and • use of derivative products; IX. SHORT-TERM DEBT A. General Short-term obligations may be issued to finance projects or portions of projects for which the City ultimately intends to issue long-term debt; i.e., it will be used, when appropriate, to provide in financing which will eventually be refunded with the proceeds of long-term obligations. Short-term obligations may be backed with a tax and/or revenue pledge or a pledge of other available resources. Interim financing may be appropriate when long-term interest rates are expected to decline in the future. In addition, some forms of short-term obligations can be Page 8 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE Continued REFERENCE NUMBER: TITLE: DEBT SERVICE MANAGEMENT 403.07 obtained quicker than long-term obligations and thus can be used until long-term financing can be obtained. B. Commercial Paper Due to the issuance costs associated with the marketing and placement of commercial paper in amounts of less than approximately $25 million, it is not considered feasible for the City of Denton to issue this type of debt. Should the opportunity to participate in a commercial paper issuance pool present itself, the advantages and disadvantages shall be evaluated by the Chief Financial Officer. C. Anticipation Notes Anticipation notes empower municipalities to issue debt without giving notice of intent. Anticipation notes may be secured and repaid by a singular pledge, but not a plural pledge, of revenue, 'taxes, or the proceeds of a future debt issue. Anticipation notes may be authorized by an ordinance adopted by the City Council. Anticipation notes may be used to finance projects or acquisitions that could also be financed with Certificates of Obligation. Anticipation notes have several restrictions, which include: 1) Anticipation notes issued for general purposes must mature before the seventh anniversary of the date the attorney general approves the issue, 2) Anticipation notes may not be used to repay interfund borrowing or a borrowing that occurred up to/or more than 24-months prior to the date of issuance, 3) A governing body may not issue anticipation notes that are payable from bond proceeds unless the proposition authorizing the issuance of the bonds has already been approved by the voters. X. LONG-TERM DEBT A. General Proceeds from the sale of long-term obligations will not be used for operating purposes, and the life of the obligations will not exceed the estimated useful life of the projects financed. Page 9 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE Continued REFERENCE NUMBER: FTITLE: DEBT SERVICE MANAGEMENT 403.07 A level debt service structure will be used unless operational matters and marketing considerations dictate otherwise. The cost of issuance of private activity bonds is usually higher than for governmental purpose bonds. Consequently, private activity bonds will be issued only when they will economically benefit the City. The cost of taxable debt is higher than for tax-exempt debt. However, the issuance of taxable debt may be more appropriate in some circumstances and may allow valuable flexibility in subsequent contracts with users or managers of the improvement constructed with the bond proceeds. Therefore, the City will usually issue tax-exempt obligations but may occasionally issue taxable obligations. B. Bonds Long-term general obligation or revenue bonds shall be issued to finance significant and desirable capital, improvements. The general obligation bonds will be used for purposes set forth by voters in bond elections. General obligation bonds will strive to have an average life of approximately fifteen (15) years or less, and revenue bonds will strive to have an average life of approximately twenty (20) years or less. A resolution of intent to issue bonds authorizing staff to proceed with preparations shall be presented for the consideration of the City Council when the capital budget is presented or as soon thereafter as reasonably possible. Unless a compelling reason is identified by the Debt Committee, all bonds issued for the purpose of supplying new monies as needed for current, ongoing public improvements shall be sold at a public, competitive sale based upon sealed bids pursuant to terns and conditions specified in the City's Home Rule Charter which requires "the publication of a proper notice of sale in a national publication which regularly includes municipal bond sale notices, stating pertinent facts relating to the proposed sale including, but not limited to, the time, the date, and the place (which shall be in the City of Denton) that all sealed bids will be publicly opened, read, and tabulated before the City Council. The date advertised for opening of the bids shall be not less than 30 days from the date of publication." C. Certificates of Obligation Certificates of obligation may be issued to finance permanent improvements and land acquisition, the need for which arose between bond elections. In addition, they may also be used to finance costs associated with capital project overruns or to acquire equipment. Page 10 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE Continued REFERENCE NUMBER: TITLE: DEBT SERVICE MANAGEMENT 403.07 In accordance with state law, a resolution authorizing publication of notice of intent to issue certificates of obligation shall be presented for the consideration of the City Council. The notice of intent shall be published in a newspaper of general circulation in the City,once a week for two consecutive weeks with the first publication to be at least fifteen (15) days prior to the sale date. Certificates of obligation may be backed by a tax pledge under certain circumstances as defined by law. They may also be backed by a combination tax and revenue pledge eligible under state law. Some revenues are restricted as to the uses for which they may be pledged. Electric, Water, Wastewater, and Solid Waste revenues may be pledged without limit for Electric, Water, Wastewater, and Solid Waste purposes but may only be pledged up to $10,000 for non-utility system purposes. D. Public Property Finance Contractual Obligation Public property finance contractual obligations may be issued to finance the acquisition of personal property. E. Revenue Bonds In addition to the policies set forth above, when cost-beneficial and when permitted under applicable ordinances, the City may consider the use of surety bonds, lines of credit, or similar instruments to satisfy mandated debt service fund requirements on outstanding and/or proposed revenue bonds. XI. REFUNDING AND RESTRUCTURING OPTIONS The City shall consider refunding debt whenever an analysis indicates the potential for present value savings of approximately 3.5% of the debt service being refunded or if beneficial to the City in another way. XIL METHOD OF SALE A. Competitive Sale When feasible and economical, obligations shall be issued by competitive rather than negotiated sale. Favorable conditions for a competitive method of sale include the following: • The market is familiar with the issuer, and the issuer is a stable and regular borrower in the public market. Page II of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE Continued REFERENCE NUMBER: TITLE: DEBT SERVICE MANAGEMENT 403.07 • An active secondary market with a broad investor base for the issuer's bonds. • The issue is neither too large to be easily absorbed by the market nor too small to attract investors without a'concerted sales effort. • The issue is not viewed by the market as carrying overly complex features or requiring explanation as to the bonds' soundness. • Interest rates are stable, market demand is strong, and the market is able to absorb a reasonable amount of buying or selling at reasonable price changes. B. Negotiated Sale Bonds issued for the purpose of refunding and/or restructuring outstanding debt may appropriately be sold on a negotiated basis when maximum flexibility is required in order for the City to respond to day-to-day nuances in the marketplace and other complications peculiar to the issuance of refunding debt. Whenever the option exists to sell an issue on a negotiated basis, an analysis of the options shall be performed to aid in the decision-making process. The City will present the reasons and will actively participate in the selection of the underwriter or direct purchaser. In a negotiated sale, the underwriter may be selected through a request for proposals (RFP) or because of a relationship established by previous debt transactions. The criteria used to select an underwriter in a negotiated sale should include the following: • Overall experience • Marketing philosophy • Capability • Previous experience as managing or co-managing partner • Financial statement • Public finance team and resources • Breakdown of underwriter's discount C. Private Placement When cost-beneficial, the City may privately place its debt. Since no underwriter participates in a private placement, it may result in lower cost of issuance. Private placement is sometimes an option for small issues. The opportunity may be identified by the financial advisor. D. Bidding Parameters The notice of sale will be carefully constructed so as to ensure the best possible bid for the City, in light of existing market conditions and other prevailing factors. Parameters to be examined include: : Page 12 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE Continued REFERENCE NUMBER: TITLE: DEBT SERVICE MANAGEMENT 403.07 i • Limits between lowest and highest coupons • Coupon requirements relative to the yield curve • Method of underwriter compensation, discount, or premium coupons • Use of true interest cost (TIC) versus net interest cost (NIC) • Use of bond insurance • Deep discount bonds • Variable rate bonds • Call provisions XIII. INVESTMENT OF BOND PROCEEDS A. Strategy The City should actively monitor its investment practices to ensure maximum returns on its invested bond funds while complying with Federal arbitrage guidelines. Specific investment strategies for the investment of bond proceeds are provided in the City's investment policy #408.04. B. Arbitrage Compliance The City will follow a policy of full compliance with all arbitrage rebate requirements of the federal tax code and Internal Revenue Service regulations, and will perform (internally or by contract consultants) arbitrage rebate calculations for each issue subject to rebate on an annual basis. All necessary rebates will be filed and paid when due. C. Arbitrage Liability Management The Chief Financial Officer will maintain a system for tracking arbitrage rebate liability and ensuring that required calculations are performed on a timely basis. These calculations will be performed annually. Funds should be set aside in anticipation of potential rebate liabilities. Due to the complexity of the arbitrage calculations and regulations, and to the severity of the penalties for noncompliance, the advice of Bond Counsel and qualified experts will be pursued on an ongoing basis. D. All bond proceeds will be separately accounted for in the financial accounting system to facilitate arbitrage tracking and reporting. Arbitrage rebate liability reports shall be generated semi-annually and submitted to the Investment Committee and to the Debt Management Committee for review. Page 13 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE Continued REFERENCE NUMBER: TITLE: DEBT SERVICE MANAGEMENT 403.07 GLOSSARY Amortization - The planned reduction of a debt obligation according to a stated maturity or redemption schedule Arbitrage - The gain which may be obtained by borrowing funds at a lower (often tax-exempt) rate and investing the proceeds at higher (often taxable) rates. The ability to earn arbitrage by issuing tax-exempt securities has been severely curtailed by the Tax Reform Act of 1986, as amended Average Life - The average length of time debt is expected to be outstanding Basis Point - One one-hundredth of one percent (0.0001) BBI - Bond Buyer Index. Comparison of current rates for various maturities Bid Form - The document used by an underwriter to submit his bid at a competitive sale Bond - A security that represents an obligation to pay a specified amount of money on a specific date in the future, typically with periodic interest payments Bond Counsel - An attorney (or firm of attorneys) retained by the issuer to give a legal opinion concerning the validity of the securities. The bond counsel's opinion usually addresses the subject of tax exemption. Bond counsel may prepare, or review and advise the issuer regarding authorizing resolutions or ordinances, trust indentures, official statements, validation proceedings and litigation Bond Insurance - Bond insurance is a type of credit enhancement whereby a monoline insurance company indemnifies an investor against a default by the issuer to pay principal and interest in-full and on-time. Once assigned, the municipal bond insurance policy generally is irrevocable. The insurance company receives an up-front fee, or premium, when the policy is issued Book-Entry-Only - Bonds that are issued in fully-registered form but without certificates of ownership. The ownership interest of each actual purchaser is recorded on computer Bond Years - $1,000 of debt outstanding for one year used to compute average life and net interest cost Call Option - The right to redeem a bond prior to its stated maturity, either on a given date or continuously. The call option is also referred to as the optional redemption provision Capital Appreciation Bond - A bond without current interest coupons that is sold at a substantial discount from par. Investors are provided with a return based upon the accretion of value in the bond through maturity Page 14 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE Continued REFERENCE NUMBER: TITLE: DEBT SERVICE MANAGEMENT 403.07 Capital Lease - The acquisition of a capital asset over time rather than merely paying a rental fee for temporary use. A lease-purchase agreement, in which provision is made for transfer of ownership of the property for a nominal price at the scheduled termination of the lease, is referred to as a capital lease Closing - When bonds are exchanged for money (a/k/a delivery or settlement) Commercial Paper (Tax-Exempt) - By convention, short-term, unsecured promissory notes issued in either registered or bearer form with a stated maturity of 270 days or less Competitive Sale - A sale of securities in which the securities are awarded to the bidder who offers to purchase the issue at the best price or lowest cost Coupon Rate - The interest rate on specific maturities of a bond issue. While the term "coupon" derives from the days when virtually all municipal bonds were in bearer form with coupons attached, the term is still frequently used to refer to the interest rate on different maturities of bonds in registered form Cover Bid - The runner-up in a competitive bond sale Credit Enhancements - Credit enhancements are mechanisms which guarantee principal and interest payments. They include bond insurance and a line or letter of credit. A credit enhancement, while costly, will usually bring a lower interest rate on debt and a higher rating from the rating agencies, thus lowering overall costs. Cost effectiveness of credit enhancement will be evaluated for each debt issue CUSIP Number - The term CUSIP is an acronym for the Committee on Uniform Securities Identification Procedures. An identification number is assigned to each maturity of an issue, and is usually printed on the face of each individual certificate of the issue. The CUSIP numbers are intended to help facilitate the identification and clearance of municipal securities. As the municipal market has evolved, and the new derivative products are devised, the importance of the CUSIP system for identification purposes has increased Dated Date - A defined date at which interest begins to accrue from Debt Burden - The ratio of outstanding tax-supported debt to the market value of property within a jurisdiction. The overall debt burden includes a jurisdiction's proportionate share of overlapping debt as well as the municipality's direct net debt Debt Limitation - The maximum amount of, debt that is legally permitted by a jurisdiction's charter, constitution, or statutory requirements Page 15 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE Continued REFERENCE NUMBER: TITLE: DEBT SERVICE MANAGEMENT + 403.07 Debt Service - The amount necessary to pay principal and interest requirements on outstanding bonds for a given year or series of years Debt Service Reserve Fund - The fund into which moneys are placed which may be used to pay debt service if pledged revenues are insufficient to satisfy the debt service requirements. The debt service reserve fund may be entirely funded with bond proceeds, or it may only be partly funded at the time of the issuance and allowed to reach its full funding requirement over time, due to the accumulation of pledged revenues. If the debt service reserve fund is used in whole or part to pay debt service, the issuer usually is required to replenish the funds from the first available funds or revenues. A typical reserve requirement might be the maximum aggregate annual debt service requirement for any year remaining until the bonds reach maturity. The size of the reserve fund, and the manner in which it is invested, may be subject to arbitrage regulations. Default - The failure to pay principal or interest in full or on time. An actual default should be distinguished from technical default. The latter refers to a failure by an issuer to abide by certain covenants but does not necessarily result in a failure to pay principle or interest when due. Defeasance - Providing for payment of principal of premium, if any, and interest on debt through the first call date or scheduled principal maturity in accordance with the terms and requirements of the instrument pursuant to which the debt was issued. A legal defeasance usually involves establishing an irrevocable escrow funded with only cash and U.S. government obligations Depository Trust Company (DTC) - A limited purpose trust company organized under the New York Banking Law. DTC facilitates the settlement of transactions in municipal securities Downgrade - A reduction in credit rating Enterprise Activity - A revenue-generating project or business. The project often provides funds necessary to pay debt service on securities issued to finance the facility. The debts of such projects are self-liquidating when the projects earn sufficient monies to cover all debt service and other requirements' imposed under the bond contract. Common examples include water and sewer treatment facilities and utility facilities Final Official Statement (FOS) - A document published by the issuer which generally discloses material information on a new issue of, municipal securities including the purposes of the issue, how the securities will be repaid, and the financial, economic and social characteristics of the issuing government. Investors may use this information to evaluate the credit quality of the securities Page 16 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE Continued REFERENCE NUMBER: TITLE: DEBT SERVICE MANAGEMENT 403.07 Flow of Funds - The order in which pledged revenues must be disbursed, as set forth in the trust indenture or bond resolution. In most instances, the pledged revenues are deposited into a general collection account or revenue fund as they are received and subsequently transferred into the other accounts established by the bond resolution or trust indenture. The other accounts provide for payment of the costs of debt service, debt service reserve deposits, operation and maintenance costs, renewal and replacement, and other requirements General Obligation Debt- Debt that is secured by a pledge of the ad valorem taxing power of the issuer. Also known as a full faith and credit obligation Good Faith Deposit - A sum of money given by the Underwriter to assure his bid Institutional Buyer- Banks, financial institutions, insurance companies, and bond funds Issuance Costs - The costs incurred by the bond issuer during the planning and sale of securities. These costs include but are not limited to financial advisory and bond counsel fees, printing and advertising costs, rating agencies fees, and other expenses incurred in the marketing of an issue Junior Lien Bonds - Bonds which have a subordinate claim against pledged revenues Letter of Credit - Bank credit facility whereby a bank will honor the payment of an issuer's debt, in the event that an issuer is unable to do so, thereby providing an additional source of security for bondholders for a predetermined period of time. A letter of credit often is referred to as an L/C or an LOC. Letter of Credit can be issued on a "stand-by" or "direct pay" basis Level Debt Service - When annual payments are substantially the same each year Line of Credit - Bank credit facility wherein the bank agrees to lend up to a maximum amount of funds at some date in the future in return for a commitment fee Manager - The member (or members) of an underwriting syndicate charged with the primary responsibility for conducting the affairs of the syndicate. The managers take the largest underwriting commitment Lead Manager or Senior Manager The underwriter serving as head of the syndicate. The lead manager generally handles negotiations in a negotiated underwriting of a new issue of municipal securities or directs the process by which a bid is determined for a competitive underwriting. The lead manager also is charged with allocating securities among the members of the syndicate in accordance with the terms of the syndicate agreement or agreement among underwriters Page 17 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE Continued REFERENCE NUMBER: TITLE: DEBT SERVICE MANAGEMENT 403.07 Joint Manager or Co-Manager Any member of the management group Municipal Securities Rulemaking Board (MSRB) - A self-regulating organization established on September 5, 1975 upon the appointment of a 15-member Board by the Securities and Exchange Agreement. The MSRB, comprised of representatives from investment banking firms, dealer bank representatives, and public representatives, is entrusted with the responsibility of writing rules of conduct for the municipal securities market. New Board members are selected by the MSRB pursuant to the method set forth in Board rules Negotiated Sale - A sale of securities in which the terms of sale are determined through negotiation between the issuer and the purchaser, typically an underwriter, without competitive bidding Net Interest Cost - The average interest cost of a bond issue calculated on the basis of simple interest. Paying Agent - An agent of the issuer with responsibility for timely payment of principal and interest to bond holders Preliminary Official Statement (POS) - The POS is a preliminary version of the official statement which is used by an issuer or underwriters to describe the proposed issue of municipal securities prior to the determination of the interest rate(s) and offering prices(s). The preliminary official statement, also called a "red herring", often is examined upon by potential purchasers prior to making an investment decision Present Value - The value of a future amount or stream of revenues or expenditures in current dollars , Refunding - An advance refunding is a refunding that occurs more than 90 days before the call date of the refunded bonds. A current refunding is a process of selling a new issue of securities to obtain funds needed to retire existing securities. Debt refunding is done to extend maturity and/or to reduce debt service cost Retail Buyer - Individual investors Revenue Bond - A bond which is payable from a specific source of revenue and to which the full faith and credit of an issuer with taxing power is not pledged. Revenue bonds are payable from identified sources of revenue, and do not permit the bondholders to compel a jurisdiction to pay debt service from any other source. Pledged revenues often are derived from the operation of an enterprise activity. Generally, no voter approval is required prior to issuance of such obligations Secondary Market - The market in which bonds are sold after their initial sale in the new issue market Page 18 of 19 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE Continued REFERENCE NUMBER: TITLE: DEBT SERVICE MANAGEMENT 403.07 Senior Lien Bonds - Bonds having a prior, or f rst claim on pledged revenues Serial Bonds - A bond issue in which the principal is repaid in periodic installments over the issue's life Split ratings - Different rating levels from different rating agencies Surety Bond - A bond guaranteeing performance of a contract or obligation Term Bonds - Term bonds usually refer to a particularly large maturity of a bond issue that is created by aggregating a series of maturities. A provision is often made for the mandatory redemption of specified amounts of principal during several years prior to the stated maturity, which effectively simulates serial bonds True Interest Cost (TIC) - An expression of the average interest cost in present value terms. The true interest cost is a more accurate measurement of the bond issue's effective interest cost and should be used to ascertain the best bid in a competitive sale Variable Rate Bond - A bond on which the interest rate is reset periodically, usually no less often than semi-annually. The interest rate is reset either by means of an auction or through an index Upgrade - An increase in credit rating I RESOLUTION RESOLUTION NO. 2006- (226- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS CONCERNING THE APPOINTMENT OF A MEMBER TO THE BOARD OF DIRECTORS OF THE TEXAS MUNICIPAL POWER AGENCY REPRESENTING THE CITY OF DENTON; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the term of office of George Hopkins as a member of the Board of Directors of the Texas Municipal Power Agency will terminate on July 18, 2006; as George Hopkins has stated his intention to retire as a Member of the Board of Directors of the Texas Municipal Power Agency effective on that date; and WHEREAS, the City Council of the City of Denton, Texas hereby communicates its sincere appreciation and gratitude to George Hopkins for serving the last ten (10) years serving as a Member as well as Chair, of the Board of Directors of the Texas Municipal Power Agency; together with the last twelve (12) years, serving as a Member as well as Chair, of the Public Utilities Board of the city; having faithfully served the interests of the City of Denton with distinction and professionalism; and WHEREAS, the City Council shall appoint a Director to the Board of Directors of the Texas Municipal Power Agency in accordance with concurrent Ordinance No. 75-22 of the City of Denton, Texas; and WHEREAS, the City Council of the City of Denton after careful consideration, has selected Phil Gallivan, who resides in the City of Denton, who is a Board Member of the Denton Public Utilities Board, for appointment to a two-year term as a Director on the Texas Municipal Power Agency Board of Directors; and WHEREAS, the City Council hereby appoints Phil Gallivan as a member of the Texas Municipal Power Agency Board of Directors; NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION I That the recitations contained in the preamble to this ordinance are incorporated herewith, and are true and correct. SECTION 2. That pursuant to the terms and provisions of concurrent Ordinance No. 75-22 of the City of Denton, Texas, Phil Gallivan is hereby appointed to a two-year term of office as a Director on the Board of Directors of the Texas Municipal Power Agency, his term of office beginning effective August 1, 2006 and ending on July 18, 2008. SECTION 3. That this resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 2006. 1 9'Rmw&'-& P Y R. McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: r APPR VED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY By: ~ U. 'w 0 - ~ S:\Our Documents\Resolutions\06\Resolution Appointing Director to TMPA Board of Directors-2006.doc 2 RESOLUTION FILE REFERENCE FORM R2006-026 X Additional File Exists Additional File Contains Records Not Public, According to the Public Records Act Other FILES Date Initials Rescinded by Resolution No. R2009-015 06/16/09 )k S:\Our Documents\Reso1ution06\Audit Finance Committee.doc RESOLUTION NO. 0 o A RESOLUTION OF THE CITY OF DENTON, TEXAS, AMENDING RESOLUTION NO. R2006-013 BY CHANGING THE NAME FROM AUDIT COMMITTEE TO AUDIT/FINANCE COMMITTEE; APPROVING A COUNCIL AUDIT/FINANCE COMMITTEE DIRECTIVE, BYLAWS OF THE AUDIT/FINANCE COMMITTEE, AND INTERNAL AUDIT CHARGE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on April 18, 2006 the City Council approved Resolution No. R2006-013 establishing the Audit Committee to help insure independence in internal audit matters; and WHEREAS, it has been decided that the name of the Audit Committee be changed to Audit/Finance Committee; and WHEREAS, the City Council is of the opinion and hereby finds the establishment of the Audit/Finance Committee is in the public interest; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The findings set forth in the preamble of this Resolution are incorporated by reference into the body of this Resolution as if fully set forth herein. SECTION 2. The City Council hereby amends Resolution No. R2006-013 and renames the Audit Committee to Audit/Finance Committee. The Committee will consist of the Mayor and two City Council members appointed by the City Council. The Audit/Finance Committee shall conduct its activities in accordance with Council Audit/Finance Committee Directive, Bylaws of the Audit/Finance Committee, and Internal Audit Charge, attached hereto and made a part hereof as Exhibits A, B, and C, respectively. SECTION 3. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 2006. c _ PERRY . McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: S:\Our Documents\Resolution06\Audil Finance Commiltee.doe APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY TTORNEY BY: Page 2 of 2 EXffiBIT A City of Denton COUNCIL AUDIT/FINANCE COMMITTEE DIRECTIVE City of Denton Aadit/nnance Committee Directive 1 ESTABLISHMENT The Audit/Finance Committee (Committee) is established in accordance to resolution number . This Committee is a standing committee of the City Council (Council). This Directive establishes the responsibilities and explains the role of the Committee. 2 OBJECTIVE The primary objective of the Committee is to assist Council in fulfilling its organizational governance and oversight responsibilities relating to the audit function, and both financial and operational information and reporting practices. More specifically the Committee will: ➢ Assess financial data and basis of information for objectivity, consistency and reliability ➢ Enhance the independence and effectiveness of the Internal Audit Department (Internal Audit); ➢ Oversee the application of appropriate accounting and disclosure policies and procedures; ➢ Monitor existing organizational policies and recommend new policies to prohibit unethical, questionable or illegal activities; ➢ Provide a communication link between Management, internal auditors/extemal auditors and Council; ➢ Promote the need for public accountability of managers to Council, the tax and ratepayers and other interested parties; and ➢ Support measures to improve operational performance and internal controls. 3 RESPONSIBILITIES The Committee will work closely with Management and internal and external auditors to carry out its responsibilities. While Management has the primary responsibility for financial reporting, application and maintenance of internal controls, compliance with laws and regulations, and setting of ethical standards, the Committee will exercise an independent monitoring and reviewing role. The Committee will have unrestricted access to all information, including documents and personnel, and have adequate resources including the right to seek independent professional advice in order to fulfil its oversight responsibilities. 1 City of Denton Audit/Finance Committee Directive The responsibilities of the Committee include: 3.1 Internal Audit Activities Subsections 2.08(q)(r) and Section 2.13 of the City of Denton Charter (the "Charter") authorize the Council to provide for the auditing and investigation of the municipal affairs of the City. To that end it is important that the City's internal audit function be independent and free from improper influence or coercion. The internal audit function is not an administrative function of the City contemplated by Section 5.03 of the Charter. Therefore, the prohibitions contained in Section 2.10 of the Charter are not applicable to the internal audit function. The Committee will establish, maintain and oversee Internal Audit and ascertain that the activities undertaken by Internal Audit are in accordance with the Internal Audit Charge. The Committee will review and approve the Annual Internal Audit Plan and monitor the planning and scope of Internal Audit activities, assessing findings, recommendations, and results of those activities. The Committee will review and concur in the appointment; replacement or dismissal of the Internal Auditor to ensure independence of the function is maintained. The Committee will monitor whether Internal Audit is receiving the cooperation of all levels of Management; and in light of its purpose and activities, is viewed as a governance function for Council. The Committee will assess whether all significant recommendations resulting from internal audits performed, have been properly implemented by Management. The Committee will review, monitor and assist in the minimization of operational risk by assessing the effectiveness of the control environment established by Management. 3.2 Financial and Operational Oversight It is understood that Management retains the authority and responsibility to direct and formulate data and information regarding financial information, including data, reports and forecasts. The Committee will provide financial oversight by reviewing financial reports or data that is being put before Council for decision-making purposes to ensure its integrity and completeness. Further, the Committee will review significant accounting, operational and reporting issues and assess their impact on the financial and operating results, and will assess the overall affect on the system of internal controls. 2 City of Denton AuditTinance Committee Directive The Committee will provide oversight of the audit activities performed by the external auditors by reviewing the effectiveness of the annual audit, to ascertain whether emphasis is being placed on areas where the Committee, Management or the auditors believe special attention is necessary. Further, the Committee will review Management responses to external audit reports and the extent to which audit recommendations concerning internal accounting controls, and other matters, are implemented. 3.3 Reporting and Other Matters The Committee will assess whether Council is receiving reliable and timely Management information. This assessment will include detailed reviews of the proposed Annual Program of Services to ensure decisions and Management propositions are prudent and meet the overall organizational objectives. The Committee will periodically review the Ethics Policy for Elected and Appointed Officials and any other organizational policies related to ethics, code of conduct, conflict of interest, fraud and other sensitive issues that relate to setting the control climate within the organization. 4 MEMBERSHIP The Committee will consist of the Mayor and two additional Council members. The City Manager and Internal Auditor shall be non-voting ex officio members of the Committee. Other ex officio non-voting Committee members may be added by a majority vote of the full Committee. The Internal Auditor will be the staff liaison and provide assistance and guidance to the Committee. Council members on the Committee will be appointed based on their experience and ability to effectively guide the City in avoiding both financial and operational risk. 5 MEETINGS, RECORDS AND REPORTING STRUCTURE 5.1 The Committee shall meet at least quarterly. The Chair, with the assistance of Internal Audit, will set the date, time and place for the meetings. In addition, the Chair will call a meeting if requested to do so by any Committee member, the City Manager, or the Internal Auditor. 5.2 A quorum shall consist of two members. 5.3 Committee meetings will be posted in accordance with the Open Meetings Act, being Chapter 551 of the Government Code. 3 City of Denton AudittFinance Committee Directive 5.4 The Internal Auditor will serve as the staff liaison to the Committee and oversee the preparation of the agenda and minutes for all Committee meetings. 5.5 The Committee shall keep correct and complete minutes of the open proceedings of all meetings. . 4 City of Denton Audit/Finance Committee Bylaws EXHIBIT B BYLAWS OF THE CITY OF DENTON AUDIT/FINANCE COMNUTTEE ARTICLE I: INTRODUCTION These Bylaws shall govern the actions of the City of Denton Audit/Finance Committee (Committee), established by Resolution number and the Council Audit/Finance Committee Directive (Council Directive) of the City of Denton, in the regulation and management of its affairs. ARTICLE II: OBJECTIVES & RESPONSIBILITIES The objective and broad responsibilities of the Committee are stated in the Council Directive as: The primary objective of the Committee is to assist Council in fulfilling its organizational governance and oversight responsibilities relating to the audit function, and both financial and operational information and reporting practices. The Committee will work closely with Management and internal and external auditors to carry out its responsibilities. While Management has the primary responsibility for financial reporting, application and maintenance of internal controls, compliance with laws and regulations, and setting of ethical standards, the Committee will exercise an independent monitoring and reviewing role. The Committee will have unrestricted access to all information, including documents and personnel, and have adequate resources including the right to seek independent professional advice in order to fulfill its oversight responsibilities. 1 City of Denton Audit/Finance Committee Bylaws The Committee shall have the purposes stated in the Resolution and the Council Directive and shall exercise the following powers: 1 Internal Audit Activities According to the Council Directive, "Subsections 2.08(q)(r) and Section 2.13 of the City of Denton Charter (the "Charter") authorize the Council to provide for the auditing and investigation of the municipal affairs of the City. To that end it is important that the City's internal audit function be independent and free from improper influence or coercion. The internal audit function is not an administrative function of the City contemplated by Section 5.03 of the Charter. Therefore, the prohibitions contained in Section 2.10 of the Charter are not applicable to the internal audit function. The Committee will establish, maintain and oversee Internal Audit and ascertain that the activities undertaken by Internal Audit are in accordance with the Internal Audit Charge" The Committee may delegate any other powers to Internal Audit to assist in fulfilling the governance role. The Committee's oversight functions will be performed to assist Council, boards and commissions, and Management of the City of Denton, in providing efficient and effective services to the tax and ratepayers of the City. The Committee shall: 1.1 Monitor whether Internal Audit is receiving the cooperation of all levels of management and in light of its purpose and activities, is viewed as a governance function for Council. Ensure there are no unjustified restrictions or limitations put forth on the Internal Auditor in the performance of audits or reviews. 1.2 Review, monitor and assist in the minimization of operational risk. 1.3 Ensure appropriate systems of internal controls are established by City Management, including computerized information system controls and security, to detect and minimize financial and operational risks. This will allow the City to achieve its objectives within an acceptable level of risk. 1.4 Ensure that adequate procedures are in place to address any fraudulent or corrupt activities that may affect the City. 1.5 Approve the appointment, replacement or dismissal of the Internal Auditor as provided in the Internal Audit Charge (5.2). 2 City of Denton Audit/Finance Committee Bylaws 1.6 Approve job classifications, descriptions and pay ranges for the Internal Auditor, and any necessary staff or external assistance, for Internal Audit for submission to Council. 1.7 Ascertain that the activities undertaken by Internal Audit are in accordance with the Internal Audit Charge. 1.8 Review and approve the Annual Internal Audit Plan (Audit Plan), which shall be drafted by the Internal Auditor, and submitted to the Committee for approval annually in February, following the completion of the external audit. Assess whether resources available to Internal Audit are adequate to implement the Audit Plan. 1.9 Review the planning and scope of Internal Audit activities and assess the results, recommendations and findings of those activities. 1.10 Review and approve all financial, performance and self-assessment reports performed by Internal Audit. 1.11 Review responses and action plans submitted by audited City Management. 1.12 Assess whether all significant recommendations provided by Internal Audit have been properly implemented by Management. Any reservations the Internal Auditor may have about control risk, accounting and disclosure practices should be discussed by the Committee. 1.13 Review and approve the Internal Audit budget on an annual basis for submission to Council. 2 Financial and Operational Oversight The Council Directive provides that "It is understood that Management retains the authority and responsibility to direct and formulate data and information regarding financial information, including data, reports and forecasts. The Committee will provide financial oversight by reviewing financial reports or data that is being put before Council for decision- making purposes to ensure its integrity and completeness. Further, the Committee will review significant accounting, operational and reporting issues and assess their impact on the financial and operating results, as will assess the overall affect on the system of internal controls." 3 Ci1y of Denton Audit/Finance Committee Bylaws The Committee shall: 2.1 Confer with external auditors, and any other federal, state, or independent accountants/auditors/consultants retained by the City and discuss their timetable, audit plan and any issues noted regarding accounting policies or errors, control weaknesses, process efficiencies or issues arising with City personnel. 2.2 Review and confer with the external auditors to ensure financial compliance with accounting policies and procedures, and governing laws, rules and regulations. 2.3 Review the scope of the total audit activities with the external auditors, accountants or consultants. 2.4 Review and confer with the external auditors concerning the final financial statements prior to the approval by Council, taking to the Council any external audit comments or other Committee concerns. In particular the review should focus on: ➢ significant changes in accounting policies and practices; ➢ any major judgmental area; ➢ significant audit adjustments; and ➢ proposed departures from accounting standards. 2.5 Review the effectiveness of the annual audit, to ascertain whether emphasis is being placed on areas where the Committee, Management or the auditors believe special attention is necessary. 2.6 Review Management responses to external audit reports and the extent to which audit recommendations concerning internal accounting controls and other matters are implemented. 2.7 Review significant accounting, operational and reporting issues and understand their impact on the organization's financial and operational status. 2.8 Review, recommend and approve any significant accounting policy changes. 2.9 Review other financial reports or data that is being put before the Council for decision-making purposes to ensure its integrity and completeness. 4 City of Denton Audit/Finance Committee Bylaws 3 Reporting and Other Matters Perform other duties as stated in the Council Directive or otherwise delegated by Council which consist of the following: 3.1 Review the proposed Annual Program of Services (organizational budget) in detail to ensure decisions and Management propositions meet the overall organizational objectives and that information presented is based on objective, sound and reliable data. 3.2 Periodically review the Ethics Policy for Elected and Appointed Officials and any other organizational policies related to ethics, code of conduct, conflict of interest, fraud and other sensitive issues that relate to setting the control climate within the organization. 3.3 Determine whether Council is receiving reliable and timely Management information. 3.4 Report any matter to the Council and/or City Manager that the Committee considers appropriate. 3.5 Submit an annual report to the Council and City Manager, which shall include any recommendation for change to its responsibilities as written in these bylaws. ARTICLE III: MEMBERSHIP AND OFFICERS 4 Membership The Council Directive states: "The Committee will consist of the Mayor and two additional Council members. The City Manager and Internal Auditor shall be non-voting ex officio members of the Committee. Other ex officio non-voting Committee members may be added by a majority vote of the full Committee. The Internal Auditor will be the staff liaison and provide assistance and guidance to the Committee. Council members on the Committee will be appointed based on their experience and ability to effectively guide the City in avoiding both financial and operational risk." In order to assist it in its investigatory and auditing function, the Committee may solicit advise from persons internal or external to the organization with expertise in auditing and financial practices, or in a profession for which advice is being sought. 5 City of Denton Audit/Finance Committee Bylaws 5 Officers The officers of the Committee shall consist of a Chair and a Vice Chair as elected by the Committee. The officers shall be elected annually by the Committee at the first meeting following formal appointment of Committee members by Council. 6 Chair The Chair will be determined by the voting members of the Committee at the first meeting following official appointment by Council. The Chair shall be the principle executive officer and shall exercise general supervision and control over the affairs of the Committee. In addition, the Chair shall have such powers and duties as the Council may from time to time assign. The Chair has the power to sign correspondence and resolutions for the Committee. The Chair is also authorized to meet separately with the Internal Auditor and/or City Manager to discuss sensitive audits and investigations. 7 Vice Chair The Vice Chair shall be determined by the Committee at the first meeting following official appointment of Committee members by Council. The Vice Chair shall have the powers and shall perform the duties that the Committee and/or the Chair prescribe. If the Chair is absent or unable to fulfill their duties, the Vice Chair shall perform all duties and exercise all the powers of the Chair. ARTICLE IV: AUDIT/FINANCE COMMITTEE ADMINISTRATION 8 Meetings The Council Directive states, "The Committee shall meet at least quarterly. The Chair, with the assistance of Internal Audit, will set the date, time and place for the meetings. In addition, the Chair will call a meeting if requested to do so by any Committee member, the City Manager, or the Internal Auditor." A quorum shall exist when a majority of the voting members are present. The Committee may set meeting dates to accommodate special circumstances. No business, other than that on the agenda may be conducted at a meeting. 6 Ci1y of Denton Audit/Finance Committee Bylaws 9 Notification of Meetings Committee meetings will be posted in accordance with the Open Meetings Act, being Chapter 551 of the Government Code. 10 Voting Each member of the Committee shall have one vote. Members must be present at the time of the vote. Except as otherwise provided in the Council Directive and these bylaws, the act of the majority of the members present at a meeting, at which a quorum is present, is the act of the Committee. A quorum shall consist of two members. 11 Protocol To the extent not contrary to these bylaws, and the Council Directive, Roberts Rules of Order pertaining to small assemblies may be consulted regarding the conduct of Committee meetings. The Committee may convene into closed session when authorized by the Open Meetings Act. ARTICLE V: BOOKS AND RECORDS 12 Records Required The Committee shall keep correct and complete minutes of the open proceedings of all meetings. ARTICLE VI : AMENDMENT These bylaws may be repealed or amended, and additional bylaws may be adopted, by the recommendation of a majority vote of the full Committee and approval by Council. ARTICLE VII: SIGNATURE I HEREBY CERTIFY that the foregoing is a true, correct and complete copy of the Bylaws of the City of Denton Audit/Finance Committee, as in effect on this day of CHAIR, CITY OF DENTON AUDIT COMMITTTEE 7 EXHIBIT C City of Denton INTERNAL AUDIT CHARGE City of Denton Internal Audit Charge 1 ESTABLISHMENT The Internal Audit Department (Internal Audit) was established to provide the City of Denton (City) with a comprehensive program of internal auditing as an overall internal control measure and a service to the City. 2 OBJECTIVE The primary objective of Internal Audit is to aid City Council (Council) and City Management (Management) in achieving City goals and objectives while minimizing undue risk. Internal Audit is a control that functions by measuring and evaluating the effectiveness of other City internal controls. Internal Audit shall assist the organization in meeting objectives by performing a variety of independent audit functions including financial, performance and compliance audits; risk assessment; and other evaluations as deemed necessary. 3 INDEPENDENCE 3.1 Internal Audit shall be free from control or undue influence in the selection and application of audit techniques, procedures and programs; the determination of facts revealed by the examination or in the development of recommendations or opinions; and the selection of areas, activities, personal relationships and managerial policies to be examined. 3.2 Internal Audit reports operationally to the Audit/Finance Committee (Committee). When matters involving Management arise, or other matters as determined by the Internal Auditor, the Internal Auditor will have the right to call together only those members of the Committee that are not a part of Management. 4 AUTHORITY Internal Audit shall have the following authority: • Unrestricted access to all City functions, records, property and personnel. • Full and free access to the Committee. When matters arise that involve Management or other sensitive areas, the Internal Auditor may call together only the voting members of the Committee. • Ability to allocate resources, set frequencies, select subjects, determine scopes of work and apply the techniques required to accomplish audit objectives. • Access to review the findings and recommendations of examinations performed by regulatory agencies or other external entities. 1 City of Denton Internal Audit Charge • Ability to perform unplanned internal audit projects/reviews throughout the year when determined necessary by Internal Audit, Management or the Council. However, if a proposed project may substantially change the Annual Internal Audit Plan (Audit Plan), a majority vote must be obtained from the voting members of the Committee to approve the performance of the project and the related change to the Audit Plan. 5 REPORT STRUCTURE 5.1 Administratively, and when independence is not compromised, Internal Audit will report directly to the City Manager. All administrative matters concerning work schedules, time off and performance evaluations will be handled by the City Manager. 5.2 Operationally, Internal Audit will report to the Committee. This will include approval of the appointment, replacement or dismissal of the Internal Auditor, as well as guidance and approval regarding the Audit Plan and audit work performed throughout the year. 6 RESPONSIBILITIES 6.1 Internal Audit is responsible for providing the Committee and Management information about the adequacy and effectiveness of its systems of internal controls and quality of operating performance when compared to established goals or standards. In doing so, Internal Audit will provide audit services and recommendations to assist Management in ensuring: • Risks are appropriately identified and managed. • Interaction among various departments occurs effectively and efficiently. • Significant financial, managerial and operational information is accurate, reliable and timely. • Employees' actions are in compliance with policies, standard procedures and applicable laws and regulations. • Resources are acquired economically, used efficiently and adequately protected. • Programs, plans and objectives are achieved. • Quality and continuous improvement are fostered in Management's control processes. • Significant legislative or regulatory issues affecting the City are recognized and addressed. 6.2 Internal Audit will be responsible for developing and implementing a flexible annual Audit Plan to include any risks or control concerns identified by Management or the Committee. The Audit Plan is submitted to the Committee for review and approval. 2 City of Denton Iuteraal Audit Charge 6.3 Internal Audit will conduct financial and performance audits in accordance with Government Auditing Standards as promulgated by the United States General Accounting Office. 6.4 A professional audit staff will be maintained with sufficient knowledge, skills, experience and professional certifications to ensure the requirements of this Charge are achieved. 6.5 Follow-up reviews will be performed to monitor and ensure that Management actions have been effectively implemented or that Management has accepted the risk of not taking action. 6.6 The Internal Auditor will provide periodic reports to the Committee summarizing results of audit activities. Further, Internal Audit will ensure significant suspected fraudulent activities within the City are investigated and Management and the Committee are notified of the results. 6.7 Internal Audit will assist the Audit/Finance Committee in their responsibility to hire, direct and provide oversight of the External Audit and related contracts or any other related services. 6.8 It is not the responsibility of Internal Audit, but rather that of Management to resolve issues noted during any Internal Audits performed and implement new procedures and processes necessary to ensure the efficient and effective operation of City functions. Further, it is the responsibility of Management to ensure proper internal controls are implemented and functioning properly throughout City operations. 7 AUDIT RECORDS ACCESSIBIIdTY Only reports and other audit records that are required to be made public under the Public Information Act will be made public, unless public disclosure is authorized by the Council. 3 RESOLUTION S:\Our Documents\Resolutions\06\Mincral Lease Procedures Res-2.doc RESOLUTION NO. OO A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS PRE- SCRIBING THE MANNER IN WHICH THE CITY WILL LEASE ITS OIL, GAS OR OTHER MINERAL INTERESTS IN LANDS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Attorney General recently ruled in Opinion No. GA-0441 that a munici- pality may lease oil, gas and other mineral interests in land under the authority of Section 253.005 of the Local Govt. Code on the terms determined by the City Council and that it does not have to competitively bid such mineral leases. NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The findings and recitations contained in the preamble of this resolution are incorporated herein by reference. SECTION 2. The City Council hereby approves the following procedures for the leasing of oil, gas and mineral interests in City land: a. A notice will be published in a newspaper of general circulation announcing that the City is receiving proposals for the.leasing of oil, gas and/or mineral interests in cer- tain City land. b. City staff and/or City consultants will negotiate with one or more proposers and make a recommendation to the City Council as to which proposer offers the City the best lease, taking into consideration any and all factors that the City in its sole discretion determines to provide the most prudent lease. The negotiations are not limited to any set criteria, and the City and the proposers may negotiate and re-negotiate any and all terms, including terms not within the original proposals. c. The City Manager, or his designee will make a recommendation to the City Council of the best lease as provided for in Subsection 2.b. The City Council may approve the recommended lease, approve another lease that it determines is the best lease, or decline to approve a lease. SECTION 3. Nothing herein shall be.construed to limit the City Council's authority to lease oil, gas, and/or mineral interests pursuant to any other procedure or method that the Coun- cil deems appropriate, including without limitation the authorization by Council of direct nego- tiation with a single lessee. SECTION 4 This resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ,~y~ day of 2006. ATTEST: PERRY cNEILL, MAYOR JENNIFER WALTERS, CITY SECRETARY BY: I S~ APPRO D AS LEGAL FORM: EDWIN M. SNYDER, CITY ATT NEY BY: Page 2 RESOLUTION S:\Our Documents\Reso1utions\06\TTC-35 Resolution.doc RESOLUTIONNO. ZoZY/ A RESOLUTION OF THE CITY OF DENTON, TEXAS, SUPPORTING THE NORTH CENTRAL TEXAS COUNCIL OF GOVERNMENT'S PROPOSED REGIONAL ALIGNMENT REGARDING THE TEXAS DEPARTMENT OF TRANSPORTATION'S TRANS-TEXAS CORRIDOR35 INITIATIVE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Denton City Council understands the important role that transportation plays in this region and our community, enhancing mobility and economic development through the efficient flow of goods and services; and WHEREAS, the Texas Department of Transportation (TxDOT) on April 5, 2006 announced the release of the Tier One Draft Environmental Impact Statement (DEIS) for Trans-Texas Corridor-35 (TTC-35) identifying the "Recommended Preferred Corridor Alternative" which is inconsistent with the North Texas Council of Government's (NCTGOG) long-range transportation planning for the region and the Regional Transportation Council's recommended alternative alignment; and WHEREAS, it is clear that Interstate Highway (IH) 35 is the backbone for transportation and freight movement throughout Texas; and WHEREAS, the IH 35E corridor should be the world's first internationally integrated, inter-modal/multi-modal trade and transportation corridor in North America; and WHEREAS, HB 3588, passed by the 78th Texas Legislature in 2003, requires the Texas Transportation Commission to compare the.congestion relief costs and benefits of TTC-35 investments against alternative investments; and WHEREAS, the TTC-35 provides important new corridors for energy, water, information and other utility needs necessary for continued urban growth; and WHEREAS, the TTC-35 concept provides an opportunity to meet both urban and inter- city transportation needs; and WHEREAS, all major roadway construction projects within the regional Metropolitan Planning Area must, by federal law, be approved by the NCTCOG's Regional Transportation Council in the regional Mobility Plan; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City of Denton expresses its support for expanding investments to meet long-standing urban mobility, reliability, safety and air quality needs, including the utilization of the TTC-35 regionally supported alternative alignment and urban connectors to meet these crucial urban needs. S1Our Documents\Resolutions\06\TI'C-35 Resolution.doe SECTION 2. The map shown as Attachment I represents regionally supported alignment for TTC-35 as proposed by the NCTCOG. SECTION 3. The inter-city portions of the TTC-35 alignment between Hillsboro and Laredo should be spaced as close to IH 35 as possible. SECTION 4. The evaluation of alternative routes and staging of investment should include an analysis of economic impacts to existing and future urban population and employment. SECTION 5. Upon concurrency between the TxDOT and the Metropolitan Planning Organization, TTC-35 routes within the Metropolitan Planning Organization will be placed in the Mobility Plan. SECTION 6. The City Manager, or his designee, is hereby directed to send a true and correct copy of this Resolution to appropriate officials in the Texas Transportation Commission office in Austin, Texas. SECTION 7. This Resolution shall become effective immediately upon its passage and approval. y PASSED AND APPROVED this the 5G day of 12006. PERRY R. McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By APPROVED A TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: Page 2 of 2 Z CL 0 N m C ° O y E ~ w O d N a w~ O M) C E O a) Z o m€ ~ O Q O T O 7 W a V♦ C (Q E O Co N m o~ B e N O c C co M oQ a°ofc0 xU = i o S w 1 'ie~ N u _y w d w C J d r w C I~ d NO~ C LL N LL w pj o d w c~ w ~ J LL w~ = C l O C N t w F y / m C d y~ v ~ w c po w ~ y N U C_/ N m T q C 9 o a w c y x V ~ 5 w ~ ~a o ~ RESOLUTION S`.\Our Documents\Resolutions\06\Flow Medical Escrow Agreement.doc RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, REGARDING CLARIFICATION AND AMENDMENT OF AN ESCROW AGREEMENT BETWEEN THE CITY OF DENTON AND FLOW HEALTH CARE FOUNDATION DATED FEBRUARY 16,1993; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on February 16, 1993 the City of Denton, Flow Health Care Foundation (the "Foundation"), and First State Bank of Texas, now Wells Fargo Bank (the "Escrow Agent") entered into an escrow agreement (the "Escrow Agreement") providing for the escrowing of a promissory note in the original principal sum of $2,000,000.00 executed by Notami Hospitals of Texas, Inc. and payable to the Foundation (the "Note") and cash or its equivalent in the sum of $370,000.00 (the "Escrow"), as security for certain indemnity obligations owed the City as more particularly described in the Bankruptcy Plan confirmed in the that certain case styled In Re: Flow Regional Medical Center Inc., a Texas nonprofit corporation, a/k/a Flow Memorial Hospital, In the United States Bankruptcy Court for the Eastern District of Texas, Sherman Division, Case No. 88-42099 (Chapter H); and WHEREAS, the principal portion of the proceeds of the Note has heretofore been paid into the Escrow, there being a current balance of approximately $2.1 million; and WHEREAS, the Escrow Agreement is ambiguous as to whether the Note and the proceeds thereof should be calculated on a face value or actual value basis for purposes of calculating the amount of the Escrow; and WHEREAS, the Escrow Agreement will expire on January 1, 2008; and WHEREAS, the City Council finds and determines that it is in the public interest to redefine and authorize that the minimum amount of the Escrow shall be $2,000,000.00; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The findings and recitations contained in the preamble of this resolution are true and correct and are incorporated into the body of this resolution by reference. SECTION 2. The City Manager or his designee, is hereby authorized to submit written documentation to the Escrow Agent authorizing release of the amount of the Escrow that exceeds $2,000,000.00. SECTION 3. This Resolution shall become effective immediately upon its passage and approval. /y PASSED AND APPROVED this the f day of t , 2006. S:\Our Documents\Rcsolutions\06\Plow Medical 8scrow Agreement.doc y? PERR McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: Q~eV ~l WaUZUA~ APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: Page 2 of 2 RESOLUTION S:\Our Documents\Resolutions\06\tax public hearing.doc RESOLUTION NO. d A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS PLACING A PROPOSAL ON THE SEPTEMBER 26, 2006 CITY COUNCIL PUBLIC MEETING AGENDA TO ADOPT A 2006 TAX RATE THAT WILL EXCEED THE LOWER OF THE ROLLBACK RATE OR THE EFFECTIVE TAX RATE; CALLING TWO PUBLIC HEARINGS ON A TAX INCREASE TO BE HELD ON SEPTEMBER 12, 2006 AND SEPTEMBER 19, 2006; REQUIRING PUBLICATION OF A NOTICE OF PUBLIC HEARINGS ON A TAX INCREASE IN ACCORDANCE WITH THE LAW; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council desires to consider adopting a tax rate of $0.62652 per $100 valuation, which will exceed the lower of the rollback rate or effective tax rate, in accordance with the requirements of the Tex. Tax Code ch. 26 and to schedule two public hearings on the proposed tax increase; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City Council desires to consider adopting a tax rate for the 2006 tax year of $0.62652 per $100 per valuation that will exceed the lower of the rollback rate or the effective tax rate. SECTION 2. This tax rate will raise more taxes for maintenance and operations than last year's tax rate. The tax rate will raise taxes for maintenance and operations on a $100,000 home by approximately $18.37. . SECTION 3. The City Council hereby approves the placement of an item on the September 26, 2006 City Council public meeting agenda to vote on a proposed tax rate of $0.62652 per $100 valuation that will exceed.the lower of the rollback rate or the effective tax rate. SECTION 4. The City Council hereby calls two public hearings on the proposed tax increase to be held in the City Council Chambers at City Hall located at 215 East McKinney Street in Denton, Texas 76201 on September 12, 2006 and September 19, 2006 at 6:30 p.m. The public hearings will not be held until at least seven days after notice of the public hearings have been published in the Denton Record-Chronicle, a newspaper having general circulation within the City, in the form of the attached Notice of Public Hearing on a Tax Increase, which is made a part of this resolution for all purposes. The City Manager, or his designee, is hereby directed to publish said notice in accordance with this resolution and in accordance with Tex. Tax Code §26.06. At the public hearings, the City Council will afford adequate opportunity for both proponents and opponents of the tax increase to present their views. SECTION 5. This resolution shall become effective immediately upon its passage and approval at a regular meeting of the City Council of the City of Denton, Texas on this the 15th day of August, 2006, at which meeting a quorum was present and the meeting was held in S:\Our Documents\Resolutions\06\taz public hcaring.doc accordance with the provisions of Tex. Govit Code §551.001, et seq. The City Secretary is hereby directed to record this resolution and the vote on the proposal to place the item for a tax increase on the September 26, 2006 City Council agenda. PASSED AND APPROVED this the ~/lday of 12006. PERRY . McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY:L APPROVED AS TO LEGAL FORM: EDWIN M. SNYDE ITY ATTORNEY BY: Council Member Voted For Voted Against Perry R. McNeill, Mayor Charlye Heggins Pete Kamp i/ Jack Thomson Guy McElroy Bob Montgomery Joe Mulroy Deputy Mayor Pro Tem Page 2 NOTICE OF PUBLIC HEARING ON TAX INCREASE The City of Denton will hold two public hearings on a proposal to increase total tax revenues from properties on the tax roll in the preceding year by 10.49 percent (percentage by which proposed taxes exceeds lower of rollback tax rate or effective tax calculated under Chapter 26, Tax Code). Your individual taxes may increase at a greater or lesser rate, or even decrease, depending on the change in the taxable value of your property in relation to the change in taxable value of all other property and the tax rate that is adopted. The first public hearing will be held on September 12th at 6:30 p.m. at 215 E. McKinney, Denton, TX 76201. The second public hearing will be held on September 19th at 6:30 p.m. at 215 E. McKinney, Denton, TX 76201. The members of the goveming body voted on the proposal to consider the tax increase as follows: FOR the proposal: AGAINST the proposal: PRESENT and not voting: ABSENT: Budget with Last Year's Budget The applicable percentage increase or decrease (or difference) in the amount budgeted in the preceding fiscal year and the amount budgeted for the fiscal year that begins during the current tax year is indicated for each of the following expenditure categories: Maintenance and operations - 9.2 % (Increase) or (Decrease) Debt service 1161 % (Increase) or % (Decrease) Total expenditures 9.68 %(Increase) or (Decrease) Total Appraised Value and Total Taxable Value calculated under section 26.04, Tax Code Preceding Tax Year Current Tax Year Total appraised value` of all property $ 5,135,825,863 $ 5,844,920,251 Total appraised value' of new property" $ 480,045,643 $ 546,332,114 Total taxable value"' of all property $ 4,789,376,811 $ 5,441,228,909 Total taxable value"` of new property" $ 213,311,230 $ 255,219,881 Bonded Indebtedness Total amount of outstanding and unpaid bonded indebtedness $ 130,160,000 Tax Rates Adopted tax rate for the preceding tax year $ 0.60815 per $100 in value Proposed tax rate for the current year $ 0.62652 per $100 in value Difference in the proposed tax rate and the $ 0.01837 per $100 in value adopted tax rate for the preceding tax year Percentage increase or decrease in the 3.02% % Increase proposed tax rate and the adopted tax rate OR for the preceding tax year 0.00% % Decrease These tax rate figures are not adjusted for changes in the taxable value of property. "Appraised Value" is the amount shown on the appraisal roll and defined by Section 1.04(8), Tax Code. "New Property" is defined by Section 26.012(17), Tax Code. "Taxable value" is defined by Section 1.04(l 0), Tax Code. Comparison of Residence Homestead Taxes Average appraised and taxable values on residence homesteads are compared from the preceding tax year and the current tax year. Preceding Tax Year Current Tax Year Average residence homestead value $ 123,723 $ 130,395 Homestead exemption amount for the taxing unit $ 5,000 $ 5,000 (excluding special exemption for persons 65 years of age or older or disabled.) Average taxable value of a residence homestead $ 118,723 $ 125,395 (excluding special exemptions for person 65 years of age or older or disabled.) Comparison of Residence Homestead Taxes The taxes would have been imposed in the preceding tax year on a residence homestead at the average appraised value (excluding special exemptions for persons 65 years of age or older or disabled) are estimated to be $722.01. The taxes that would be imposed in the current tax year on a residence homestead appraised at the average appraised value in the current tax year (excluding special exemptions for persons 65 years of age or older or disabled), if the proposed tax rate is adopted, are estimated to be $785.62. The difference between the amount of taxes on the average residence homestead in the current tax year, if the proposed tax rate is adopted, and the preceding tax year would be an increase of $63.61 in taxes. RESOLUTION 't S:\Our DocumenLS\Resolu[ions\06\TML Resolution - Benificial Rcuse.doc RESOLUTION NO. RESOLUTION OF THE CITY OF DENTON CITY COUNCIL REQUESTING THE TEXAS MUNICIPAL LEAGUE TO OPPOSE LEGISLATION THAT WOULD LIMIT OR PROHIBIT A CITY'S ABILITY TO MAKE AND SELL COMPOST/MULCH PRODUCTS, INSIDE AND OUTSIDE OF THE CITY LIMITS; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Texas Municipal League will hold its annual conference on October 25 - 27, in Austin, Texas; and WHEREAS, many cities in Texas, including the City of Denton, operate beneficial reuse and commercial compost/mulch business and make and sell these products to anyone inside and outside city limits in direct competition with private enterprise; and WHEREAS, Rep. Dennis Bonnen, District 25, has asked the Texas Attorney General for an opinion on whether cities should not be permitted to compete with private enterprises in the State of Texas nor in any way supply landscape contractors or sell bagged products to nurseries; and WHEREAS, the City of Denton utilizes the production of compost to protect public health and safety in compliance with state and federal wastewater regulatory requirements for biosolids disposals; and WHEREAS, the compost production process recycles valuable wood waste products from the community's solid waste stream and maximizes the useful life of the existing landfill facility; and WHEREAS, the production of compost combines waste products from wastewater treatment and solid waste operations to produce a reuseable, recyclable, and environmentally beneficial alternative to traditional disposal methods; and WHEREAS, the sale of compost provides important cost recovery revenues for the ratepayer's investment in the technical development, operational, and capital equipment expense; and WHEREAS, the compost production, sales, and utilization demonstrates community environmental stewardship, recognition of recycled products value and support for state and local recycling goals; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City Council requests that the Texas Municipal League oppose legislation that would limit or prohibit a city's ability to make and sell compost/mulch products, inside and outside of the city limits. S:\Our Documents\Resolutions\06\TML Resolution- Beniticial Reuse.doc SECTION 2. The City Manager is authorized to forward a copy of this resolution to Mr. Frank Sturzl, Executive Director of the Texas Municipal League. SECTION 3. This resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the 1ji 4k day of 2006. PE IL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY:~/U(P/U( APPROVED AS TO LEGAL FORM: EDWIN M. SNYD ITY ATTORNEY BY: Page 2 of 2 RESOLUTION S:\Our Documents\Resolutions\06\TML Resolution - Special District in ETJ.doc RESOLUTION NO.ZOOh -0,52 RESOLUTION OF THE CITY OF DENTON REQUESTING THE TEXAS MUNICIPAL LEAGUE TO SUPPORT LEGISLATION TO PLACE A MORATORIUM ON THE CREATION OF CERTAIN SPECIAL DISTRICTS UNTIL THE STATE LEGISLATURE CAN APPOINT A TASK FORCE TO STUDY THEIR ADVERSE AFFECTS; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Texas Municipal League will hold its annual conference on October 25 - 27, in Austin, Texas; and WHEREAS, certain non-educational special districts were originally formed to allow rural areas to obtain adequate water and sewer supplies in areas not served by municipal facilities; and WHEREAS, in conjunction with the reduction in city authority to annex and vested rights legislation designed to protect developers, developers of dense urban developments in rural Extra Territorial Jurisdiction (ETJ) areas are using this special district legislation to create mini-quasi political subdivisions in the ETJ's of cities; and WHEREAS, the incentive for creating special districts is that the developer obtains public financing where all of his development costs are reimbursed on the front end when the bonds for special district infrastructure are sold, and the bond holders are paid back through ad valorem taxes assessed against the future homeowners that are typically at a tax rate that is dramatically higher than normal city tax rates; and WHEREAS, if the city decides to annex the special district area it must assume the district's debt, thus putting the city in the position of having to pay for infrastructure through a much lower tax rate and therefore, is a disincentive to annex the area until the debt is paid off, thereby further eroding the city's ability to annex area within its ETJ; and WHEREAS, these districts typically propose very dense development in rural areas that are not compatible with the life style of the area, and persons that live in these areas of the ETJ commonly complain that they want their rural life style to be preserved, and cities are better suited to look out for the public interest in these ETJ areas; and WHEREAS, cities are not allowed to apply there zoning controls in the ETJ, counties generally have no zoning controls, and there are no regional or state authorities that have zoning power in ETJ's, thus under current law cities only have two options, try to negotiate a development agreement with the developer proposing the special district or institute involuntary annexation proceedings; and WHEREAS, a city's ability to involuntary annex property in the ETJ has been greatly curtailed by state law, and it is often difficult to negotiate a favorable agreement because of the SAOur Documents\Resolutions\06\TML Resolution - Special District in ETJ.doc vested rights laws that lock in development rights once any kind of application is filed; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City Council requests the Texas Municipal League to support legislation that would place a moratorium on the creation of certain non-educational special districts until the state legislature can appoint a task force to study their adverse affects. SECTION 2. The City Manager is authorized to forward a copy of this resolution to Mr. Frank Sturzl, Executive Director of the Texas Municipal League. SECTION 3. This resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of 2006. t Y It PE . McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY:/~ APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: Page 2 of 2 RESOLUTION S:\Our Documents\Resolutions\06Voint Recommendation for Rog Rail.doc RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, AMENDING RESOLUTION NO. R2005-053 AND ENDORSING THE "JOINT RECOMMENDATION FOR REGIONAL RAIL IN NORTH CENTRAL TEXAS" AS APPROVED BY THE BOARDS OF DALLAS AREA RAPID TRANSIT (DART), DENTON COUNTY TRANSPORTATION AUTHORITY (DCTA) AND THE FORT WORTH TRANSPORTATION AUTHORITY (THE T) THAT SUPPORTS THE CONCEPT OF LOCAL OPTION FUNDING OF PUBLIC TRANSIT IN THE REGION BY EXEMPTING AN AMOUNT EQUAL TO THE LOCALLY AUTHORIZED TRANSIT SALES TAX FROM THE 2% LOCAL SALES TAX CAP; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the City of Denton is firmly committed to supporting regional efforts toward addressing the mobility and air quality needs of its citizens and for future generations; and WHEREAS, the City Council passed Resolution No. 2005-053 supporting the Regional Transit initiative, on December 13, 2005 which indicated support for a fourth transit entity and now wishes to support the "Joint Recommendation for Regional Rail in North Central Texas" as approved by the Dallas Area Transit ("DART"), Denton County Transportation Authority ("DCTA") and the Fort Worth Transportation Authority ("The T") which does not recommend a fourth transit entity; and WHEREAS, the City Council believes that the best approach to achieving the goal of providing additional funding capacity to expand rapid transit in the region is by exempting an amount equal to the locally authorized metropolitan transit sales tax from the 2% sales tax cap in cities like Denton that do not currently have room under the local sales tax cap; and WHEREAS, among the existing transit authorities in the region - DART, The T and DCTA - there exists expertise and evidence of cooperation on current and future rail projects that demonstrates their ability to successfully expand rail transit in the region; and, WHEREAS, exempting the transit sales tax will also allow current transit member cities to have capacity available for 4A/4B projects under the Development Corporation Act of 1979, as amended, or for other purposes such as crime control districts; and, WHEREAS, the citizens of Denton want to ensure that the quality of life remains high in the region and our economy remains strong and competitive, and transit has an important role in achieving this goal as the population in the Dallas/Fort Worth area continues to grow toward eight million in the very near future; and NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The findings set forth in the preamble of this Resolution are incorporated by reference into the body of this Resolution as if fully set forth herein. SECTION 2. The City Council hereby agrees with and supports the "Joint Recommendation for Regional Rail in North Central Texas" as put forth by DART, DCTA and The T on the regional transit issue in Attachment 1, which is attached to and made a part of this S:\Our Documents\Resolutions\06Uoint Recommendation for Reg Rail.doc Resolution for all purposes, and strongly urges the 80th Texas Legislature to pass legislation exempting an amount equal to the locally authorized transit sales tax from the 2% local sales tax cap in the nine counties of North Texas that are designated by the Environmental Protection Agency as "non-attainment" for federal air quality standards. SECTION 3. Save and except as amended hereby, all the remaining clauses, sentences, paragraphs, sections and subsections of Resolution No. R2005-053 shall remain in full force and effect. SECTION 4. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of lSL/.O/yL~ '2006. - ~PERRY R. McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY. APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: C/, I/G c/ .~1( L~ , Page 2 of 2 Attachment 1 D JOINT RECOMMENDATION FOR REGIONAL RAIL IN NORTH CENTRAL TEXAS The three existing transit authorities support expanding meaningful public transit in North Texas through our existing organizations. Such transit authorities support the Statement of principles for the Implementation of a Regional Rail System in North Central Texas agreed to in August 2004 by regional leadership under the following conditions: • New regional rail projects will require new sources of funding. The State authorized Sales and Use Tax has been the primary means of fording public transit service within the region, and the magnitude of the required funding will most likely dictate that sales tax should be the source of funds for new regional rail projects. However, most cities in the region do not have the ability to fund public transit services because sales and use tax capacity has been committed to other uses. • The three existing transit authorities support local option funding of public transit in the region by exempting au amount equal to the locally authorized transit sales tax from the 2% cap in the following counties: o "Tarrant • Parker o Johnson o Benton o Wise o Dallas o Collin o Rockwall o Ellis • This action would provide an equitable means of allowing "iion-transit",jurisdictions to determine as a local option whether or not they would choose to fund public transit, while allowing jurisdictions that currently support public transit to determine whether they would choose to allocate sales tax capacity for non-transit uses (up to the existing cap). • We support a determination of citizens' support of a regional rail system outside the existing transit authorities' territory or service area. and inside The'T's service area. • Formation of a 4th transit entity is not recommended. DART, Chain nanorthe Board D, R , 'resi e xeeutive Director r DC-1'A, Ctairman c tTe Boa D(XA, Executive Director S `file T, Chair of the Board The T, PresidentJExecutive Director RESOLUTION L'fOUr Ib[umrnlslResaluYanSWWOrW Teeu 14gLU.-Ii- AuWOriyErc RESOLUTION NO. A RESOLUTION APPOINTING MEMBERS TO THE BOARD OF DIRECTORS OF THE NORTH TEXAS HIGHER EDUCATION AUTHORITY; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the term of office for Places 2 and 4 on the Board of Directors of the North Texas Higher Education Authority, Inc. have expired; and WHEREAS, the Board has nominated Mr. Governor Jackson - Place 2 and Mr. Dan Tonn - Place 4 on the Board; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. That Mr. Governor Jackson is hereby reappointed to Place 2 on the Board of Directors of the North Texas Higher Education Authority, Inc. for a term commencing October 1, 2006 and continuing through September 30, 2008. SECTION 2. That Mr. Dan Tonn is hereby reappointed to Place 4 on the Board of Directors of the North Texas Higher Education Authority, Inc. for a term commencing October 1, 2006 and continuing through September 30, 2008. SECTION 3. That this resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ~o? day of 7pfy//1~ , 2006. 11~ S' PERK . McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY, BY APPRO ED AS O LEGAL FORM: EDWIN M. SNYDE , CITY ATTORNEY BY: RESOLUTION L9AUr IMnmeneiNCrolmionsW\mecn bx reiadm RESOLUTION NO. ZOO _03/) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS ANNOUNCING THAT IT WILL VOTE ON A TAX RATE AT ITS REGULARLY SCHEDULED MEETING OF SEPTEMBER 26,2006; PROVIDING FOR PUBLICATION OF NOTICE OF SUCH VOTE ON THE TAX RATE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, at its regularly scheduled meeting of August 15, 2006, the City Council voted to place a proposal on the September 26, 2006 City Council regular meeting to adopt a proposed tax rate of $0.62652 per $100 valuation, which will exceed the lower of the rollback rate or the effective tax rate; and WHEREAS, the City Secretary duly recorded the vote of the City Council on that matter; and WHEREAS, the City Council also called two public hearings, the first for its regular meeting of September 12, 2006 and a special called hearing on September 19, 2006, on the tax increase; and - WHEREAS, publication of notice of two public hearings on the tax increase were made in accordance with the law, and said public hearings were held on September 12, 2006 and September 19, 2006, and all proponents and opponents of the tax increase were given an adequate opportunity to present their views at the public hearings; and WHEREAS, the City Council wishes to finally set the date, time, and place of the meeting at which it will vote on the tax rate; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The findings set forth in the preamble of this Ordinance are incorporated by reference into the body of this Ordinance as if fully set forth herein. SECTION 2. The City Council will vote on the proposed tax rate at its regularly scheduled meeting of September 26, 2006, which will commence at 6:30 p.m. and will be held in the City Council Chambers at City Hall at 215 East McKinney, Denton, Texas 76201. SECTION 2. THIS TAX RATE WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX RATE. THE TAX RATE WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $18.37. SECTION 3. Prior to the vote on the tax rate, the City Manager and the Assistant City Manager are directed to publish in the Denton Record-Chronicle, a newspaper having general circulation in the City, the attached Notice of Vote on the Tax Rate, which is made a part of this resolution for all purposes, such publication to be in compliance with the requirements of the Texas Tax Code. L\OUra:vrtentsUlnoluucnxVlb\vqe on uu rme.da SECTION 4. This resolution shall become effective immediately upon its passage and approval at a regular meeting of the City Council of the City of Denton, Texas on this the 12`h day of September, 2006, at which meeting a quorum was present and the meeting was held in accordance with the provisions of Tex. Gov't Code §551.001, et .req. The City Secretary is hereby advised to record this resolution and the vote on the proposal to place the item for a tax increase on the September 26, 2006 City Council agenda. PASSED AND APPROVED this the day of 2006. PERRY R. McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ~$v APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: Councilmember Voted For Voted Against Perry McNeill, Mayor X Pete Kamp, Mayor Pro Tern Joe Mulroy, Deputy Mayor Pro Tern_ Bob Montgomery Charlye Heggins Jack Thomson Guy McElroy -d Page 2 Notice Of Vote on Tax Rate The City of Denton conducted public hearings on a proposal to increase the total tax revenues of the City of Denton from properties on the tax roll in the preceding year by 10.49 percent on September 12Ih & September 19th 2006. The City Council is scheduled to vote on the tax rate that will result in that tax increase at a public meeting to be held on September 26, 2006 at 215 E. McKinney, Denton, Texas 76201 RESOLUTION RESOLUTION NO. e2OOh'O36 A RESOLUTION OF THE CITY OF DENTON, TEXAS, ADOPTING THE CITY OF DENTON'S 2007 STATE LEGISLATIVE PROGRAM FOR THE 80TH TEXAS LEGISLATURE; PROVIDING A REPEALER; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the 80th Texas Legislature will commence in January 2007; and WHEREAS, appraisal caps, revenue caps, general government, and many legislative issues affecting local government will be considered; and WHEREAS, the City of Denton desires to adopt it legislative program for the 80th Texas Legislature, attached as Exhibit "A"; NOW, THERFORE, THE COUNCIL OF THE CITY OF DENTON HERBY RESOLVES: SECTION 1. That the City of Denton's 2007 Legislative Program from the 80th Texas Legislature is adopted as set forth in Exhibit "A," incorporated herein and made a part of this resolution for all purposes. SECTION 2. That the Mayor and City Council, City Manager and the City Attorney, or their designees shall communicate the items included in the state legislative program to members of the Texas Legislature. SECTION 3. The City Manager, or his designee, is directed to draft appropriate legislation, seek a sponsor, and actively pursue passage of such legislation by providing testimony from the Mayor and City council and City Staff and through other appropriate means. PASSED AND APPROVED this the 3rd day of October 2006. a"'61 M F1-, PERRY R. McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPR ED A TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY City of Denton 2007 State t.egislal rogrant October 3, 2006 Page 5 "Exhibit A" City of Denton 2007 State Legislative Program State of Texas 80th Legislative Session As approved by the Denton City Council (October 3, 2006) TABLE OF CONTENTS City of Denton Mayor and Council Contact Information 4 City Manager, City Attorney and City Staff Contact Information 5 2007 State Legislative Program Adopting Resolution 6 Denton's Highest Legislative Priority • Continue to urge the legislature not to adopt any legislation, such as reductions in the property appraisal cap or implementation of any type of revenue cap, which would negatively affect City revenues and economic development efforts. 7 Erosion of Local Control over City Rights-of-Way • Support TILL in "seeking introduction and passage" of legislation that would address the failure of utility companies to relocate their facilities in a timely manner as required by current law. 7 • Support TML in "seeking introduction and passage" of legislation that would "grandfather" the provisions of Texas law in any federal cable franchising bill if any proposed federal law provisions would erode the provisions of Senate Bill 5 (79th Legislature, Second Called Session). 7 • Support TML in opposing any legislation that would enact any detrimental amendments to the provisions of Senate Bill 5 or erode the provisions of Senate Bill 5 (79th Legislature, Second Called Session). 7 Tax and Finance Issues City's ability to fund necessary local services • Oppose legislation that would mandate a reduction in the current 10% appraisal growth cap. 8 • Oppose legislation that would impose revenue caps of any type, including a lowered rollback rate, mandatory tax rate ratification elections, or lowered rollback petitions requirements. 8 • Oppose legislation that imposes a property tax freeze that can be implemented by any mechanism other than council action. 8 Textbook Sales Tax Holiday • Oppose any legislation that would impose a sales tax holiday for textbooks. 9 Municipal Audit Authority • Support legislation that would allow municipalities to audit a taxpayer's records for sales tax compliance, and ensures the equal tax treatment of taxpayers, regardless of their sales method. 9 Regional Transportation Sales Tax for Public Transportation Initiatives • Support legislation that would exempt from the two-percent cap on local sales tax any local sales tax committed to public transportation initiatives. 10 Regional Mobility Authority • Oppose legislation that would create a Regional Mobility Authority in the four county area of North Central Texas including Dallas, Denton, Collin City of Denton 2005 State Legislative Program January 18, 2005 Page l and Tarrant Counties for the purpose of administering funds received through revenue sharing agreements. 10 Utility Issues Electric subsidies for state universities • Oppose legislation that would extend the electric subsidy to state four-year state university, upper-level institution, Texas State Technical College or college, by municipal owned utilities. 11 Drainage Fees • Support legislation that repeals the drainage fee exemption for state entities. 11 Bioreactors and other state-of-the-art landfill technologies • Propose legislation that would promote and allow the permitting of Municipal Solid Waste landfill design and operating technologies that can have a positive effect on the environment and provide improved site utilization. 11 Retain Local Control over Development Issues and Fees • Oppose legislation that would erode city annexation authority. 12 • Oppose legislation that would erode city authority in the extraterritorial jurisdiction over special districts. 12 • Oppose legislation that would allow voters in the ETJ to vote on whether any proposed ordinance or ordinance amendment shall apply in the ETJ. 12 • Oppose legislation that would reduce a municipal authority and discretion to approve the creation of a special district within a city's incorporated area or ETJ, including the expansion of a district's boundaries or powers. 12 • Oppose legislation that will reduce or eliminate development fees, exactions or building permits. 12 • Oppose legislation that will restrict cities' ability to adopt or amend zoning regulations, or vest or otherwise create a property right in a zoning classification. 12 Red Light Cameras • Oppose legislation that would restrict a city's ability to implement a photographic red light enforcement system to use cameras at traffic lights and impose a civil penalty for running the light. 13 Grandfathering of Existing Employees into Civil Service System • Support legislation that expands the grandfathering clause of newly classified civil service positions to municipalities that do not meet the population requirement outlined in current legislation. 13 TML Resolutions proposed by the City of Denton Beneficial Reuse/Compost/Mulch • Oppose any legislation that would limit or prohibit a city's ability to make and sell compost/mulch products, inside and outside of the city limits. 14 Special Districts in City's ETJ • Support legislation that would place a moratorium on the creation of special districts until the State Legislature can appoint a task force to study their adverse affects; and providing for an effective date. 14 City of Denton 2005 Slate Legislative Program January 18, 2005 Page 2 Support Legislation that directly benefits UNT and/or TWU • Support legislation that directly benefits UNT and/or TWU, if such proposals do not adversely affect the city's interest. 15 Support Legislation that directly benefits Denton ISD • Support legislation that directly benefits Denton ISD, if such proposals do not adversely affect the city's interest. 15 City of Denton 2005 State Legislative Program January 18, 2005 Page 3 City of Denton City Council Members Mailing Address for all of Council: 215 E. McKinney, Denton, TX 76201 Voice Mail for all of Council - 940-349-8555 Mayor Perry McNeill Office: 940-565-2364 1508 Gatewood Drive Home: 940-591-6080 Denton, TX 76205 Cell: 940-390-9463 E-mail: perry.mcneill0cityofdenton.com Fax: 940-381-0106 Council Member - District 1 Charlye Heggins Home: 243-7937 1606 E. McKinney, #11101 Cell: 391-2339 Denton, TX 76209 E-mail: charlye.heg~ins a,cityofdenton.com Mayor Pro Tern - District 2 Pete Kamp Office: 940-591-0308 110 Friar Tuck Circle Home: 940-566-5557 Denton, TX 76209 Cell: 940-390-9485 E-mail: pete.kamp@cityofdenton.com Council Member - District 3 Jack Thomson Home: 940-382-5176 1401 Amherst Dr. Cell: 940-390-2296 Denton, TX 76201 E-mail: jack.thomsonCa)cityofdenton.com Council Member - District 4 Guy McElroy Home: 262-1636 10808 Salentine Denton, TX 76207 E-mail: guy.mcelroy(a)cityofdenton.com Council Member - At Large Place 5 Bob Montgomery Home: 940-891-0051 2329 E. Windsor Cell: 940-391-6545 Denton, TX 76209 Pager: 940-380-5140 E-mail: bob. montgomery(ftityofdenton.com Deputy Mayor Pro Tern - At Large Place 6 Joe Mulroy Home: 940-382-3396 124 Hollyhill Denton, TX 76205 E-mail: joe.mulroy(a)cityofdenton.com City of Denton 2005 State Legislative Program January 18, 2005 Page 4 City Manager, City Attorney and City Staff The Denton City Council and staff would be glad to provide information, research issues and testify on the City of Denton 2005 Legislative Program. Municipal Offices: City of Denton 215 E. McKinney Denton, Texas 76201 www.cityofdenton.com George Campbell Ed Snyder City Manager City Attorney (940) 349-8306 (940) 349-8336 Howard Martin Jon Fortune Assistant City Manager Assistant City Manager (940) 349-8232 (940) 349-8535 Sharon Mays Betty Williams Director/Electric Utilities Executive Administrator (940) 349-8487 (940) 349-8302 If you or your legislative staff needs assistance from Denton or has any questions concerning Denton's legislative priorities, please contact: John Cabrales, Public Information Officer (940) 349-8509, (940) 349-7444 Fax, or email: john.cabralesgcityofdenton.com City of Denton 2007 State Legislative Program October 3, 2006 Page 5 RESOLUTION NO. A RESOLUTION OF THE CITY OF DENTON, TEXAS, ADOPTING THE CITY OF DENTON'S 2007 STATE LEGISLATIVE PROGRAM FOR THE 80TH TEXAS LEGISLATURE; PROVIDING A REPEALER; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the 80th Texas Legislature will commence in January 2007; and WHEREAS, appraisal caps, revenue caps, general government, and many legislative issues affecting local government will be considered; and WHEREAS, the City of Denton desires to adopt it legislative program for the 80th Texas Legislature, attached as Exhibit "A," NOW THERFORE, THE COUNCIL OF THE CITY OF DENTON HERBY RESOLVES: SECTION 1. That the City of Denton's 2007 Legislative Program from the 80th Texas Legislature is adopted as set forth in "Exhibit A," incorporated herein and made a part of this resolution for all purposes. SECTION 2. That the Mayor and City Council, City Manager and the City Attorney, or their designees shall communicate the items included in the state legislative program to members of the Texas Legislature. SECTION 3. The City Manager, or his designee, is diredted to draft appropriate legislation, seek a sponsor, and actively pursue passage of such legislation by providing testimony from the Mayor and City Council and city staff and through other appropriate means. PASSED AND APPROVED this the 3`d day of October 2006. PERRY McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: ED SNYDER, CITY ATTORNEY BY: City of Denton 2007 State Legislative Program October 3, 2006 Page 6 Denton's Legislative Priorities The City of Denton has adopted the following legislative issues as priority issues for the 801h Texas Legislative Session. The City Council of the City of Denton has met in workshops, participated in legislative seminars and has received information from city staff and various groups within the community to set these priorities. Denton's Highest Legislative Priority • Continue to urge the legislature not to adopt any legislation, such as reductions in the property appraisal cap or implementation of any type of revenue cap, which would negatively affect City revenues and economic development efforts. Background: The City of Denton during the 791h Texas Legislative Session and subsequent Special Sessions, worked diligently with other local governments in providing information to the Texas Legislature that helped them adopt school finance reform legislation that did not negatively impact city revenues or economic development efforts. The City of Denton continues to urge the Texas Legislature to not pass any legislation, such as reductions in the property appraisal cap or implementation of any type of revenu@ cap, which would negatively affect City revenues and economic development efforts. Erosion of Local Control over City Rights-of-Way • Support TML in "seeking introduction and passage" of legislation that would address the failure of utility companies to relocate their facilities in a timely manner as required by current law. • Support TAM in "seeking introduction and passage" of legislation that would "grandfather" the provisions of Texas law in any federal cable franchising bill if any proposed federal law provisions would erode the provisions of Senate Bill 5 (79th Legislature, Second Called Session). • Support TML in opposing any legislation that would enact any detrimental amendments to the provisions of Senate Bill 5 or erode the provisions of Senate Bill 5 (79th Legislature, Second Called Session). Background: Historically, most utilities were required by franchises and state law to relocate their facilities at their cost when the relocation was required for a public work's project. Some utility companies are arguing that Chapter 283 of the Texas City of Denton 2007 State Legislative Program October 3, 2006 Page 7 Local Government Code (H.B. 1777) altered state law. Denton has experienced delay in public work's projects due to this confusion and a clarification of state law is necessary. Cities may impose numerous kinds of regulation on entities that use the city's right of way. These regulations will withstand legal challenge because they are reasonably connected to protection of the health, safety, or welfare of the public. Denton opposes any new legislation that limits the ability of cities to control the right of way. The Federal Legislature is considering various bills that could erode the provisions agreed to by all concerned parties in Senate Bill 5 the was passed by the 791h Texas Legislature during their Second Called Session. Denton opposes any legislation, Federal or State, which would reduce any of the provisions of Senate Bill 5, especially the definition and collection of franchise fees, the removal of existing local cable franchises, and restriction of municipal police powers in public right- of-ways. Tax & Finance Issues City's ability to fund necessary local services • Oppose legislation that would mandate a reduction in the current 10% appraisal growth cap. • Oppose legislation that would impose revenue caps of any type, including a lowered rollback rate, mandatory tax rate ratification elections, or lowered rollback petitions requirements. • Oppose legislation that imposes a property tax freeze that can be implemented by any mechanism other than council action. Background: During the 79th Texas Legislative Session, the City of Denton adopted a resolution that urged the Legislature not to adopt school finance reforms that would adversely affect city revenues and economic development efforts. The city testified and wrote numerous letters during the session, and subsequent special called sessions. The city continues to oppose state initiatives that restrict a city's ability to fund necessary local services. TML has also placed these issues in their oppose category. City of Denton 2007 State Legislative Program October 3, 2006 Page 8 Textbook Sales Tax Holiday • Oppose any legislation that would impose a sales tax holiday for textbooks. Background: There is a good chance that the State Legislature will again consider a bill providing for a "sales tax holiday" for all books bought by a full- or part-time student at an accredited public or private institution of higher education if the sale takes place during certain days in August and in January. During the last legislative session we successfully opposed these types of bills through a coordinated effort with other "college cities." We estimate that this "sales tax holiday" for books would result in an approximately $444,000 annual sales tax revenue loss for the City. Municipal Audit Authority • Support legislation that would allow municipalities to audit a taxpayer's records for sales tax compliance, and ensures the equal tax treatment of taxpayers, regardless of their sales method. Background: Under Chapter 151 of the Texas Tax Code, only the, State of Texas, through the Comptroller of Public Accounts and/or their representative, can audit a taxpayer's records for sales tax compliance. Although the City recognizes the proprietary and confidential nature of a taxpayer's sales records and wholeheartedly believes in maintaining an equal and competitive market place, it is the City's view that manpower limitations in the Comptroller's Office have negatively impacted its ability to effectively monitor and audit the hundreds of taxpayers located in the City of Denton and the State of Texas. By giving municipalities the authority to audit taxpayer sales records, it expands the manpower available to the Comptroller's Office, increases compliance with sales tax laws, and places local control on most municipalities largest revenue source. At the same time, the City would continue to support the equal tax treatment of all taxpayers, regardless of the sales method. Under Chapter 151 of the Texas Tax Code, the tax incidence of the Texas Sales and Use Tax is dependent on both a business' nexus and 'place of business' within the State of Texas. Therefore, the City would support the continued taxation of all taxable goods and services, regardless if provided in a traditional bricks and mortar location or over the internet. City of Denton 2007 State Legislative Program October 3, 2006 Page 9 Regional Transportation Sales Tax for Public Transportation Initiatives • Support legislation that would exempt from the two-percent cap on local sales tax any local sales tax committed to public transportation initiatives. Background: The City supports the option to exclude the locally authorized transit sales tax currently dedicated to the Denton County Transportation Authority from the 2 % cap of the local option sales tax. The state mandates that a municipality can exercise no more than two percent of the local option sales tax. The City of Denton meets this cap, with 0.5 percent of local option sales taxes being contributed to the Denton County Transportation Authority and the other portion of the cap being applied for general use (1.0 percent) and property tax reduction (0.5 percent). By excluding any current and future sales tax committed to regional public transportation initiatives from the local option sales tax cap, the City may have the option to utilize local sales tax for other local needs. This initiative is also being considered by other communities in the North Central Texas Region as part of an effort to create local funding options for a seamless regional transportation network. Regional Mobility Authority • Oppose legislation that would create a Regional Mobility Authority in the four county area of North Central Texas including Dallas, Denton, Collin and Tarrant Counties for the purpose of administering funds received through revenue sharing agreements. Background: The Texas Department of Transportation (TxDOT), The North Texas Tollway Authority (NNTA) and the North Central Texas Council of Governments' Regional Transportation Council (RTC) are currently exploring programming and administration policies as it relates to concession fees and excess revenue received through Comprehensive Development Agreements (CDA). TxDOT has suggested that a Regional Mobility Authority be created for this purpose as well as to develop, implement and finance regional toll projects. NCTCOG staff is opposed to the creation of an RMA as it will reduce local autonomy in the development and implementation of regional transportation infrastructure projects. The RTC staff is currently working with TxDOT and the NTTA to develop an institution to provide for the administration of the revenue sharing agreements and ensure financial accountability. The Denton Mobility Committee supports the RTC/NCTCOG position on this issue. City of Denton 2007 State Legislative Program October 3, 2006 Page 10 Utility Issues Electric subsidies for state universities • Oppose legislation that would extend the electric subsidy to state four-year state university, upper-level institution, Texas State Technical College or college, by municipal owned utilities. Background: In 1995 the Texas Legislature passed a law requiring all electric utilities in Texas to reduce their base rate charges for electric service provided "to a facility of a four-year state university, upper-level institution, Texas State Technical College or college" by 20%. The total impact of this discount on the City is that the two universities pay approximately $800,000 per year less for their electric service than it costs to serve them. There is a possibility that state universities might try to extend this 20% discount on their electric service, since this discount is eliminated by law at the end of 2006. Drainage Fees • Support legislation that repeals the drainage fee exemption for state entities. Background: During the 78th Texas Legislature, the legislature enacted legislation that exempts state properties, state colleges and universities from paying municipal storm water utility fees. These state entities benefit from the flood prevention and storm water control provided by city storm water program. All entities should pay their fair share of the city's efforts to prevent flooding and to respond to costly federal mandates relating to storm water run-off. When state entities are exempted from municipal drainage fees, the remaining ratepayers make up the difference. TML is opposing the exemption of any entity from paying municipal drainage fees. Bioreactors and other state-of-the-art landfill technologies • Propose legislation that would promote and allow the permitting of Municipal Solid Waste landfill design and operating technologies that can have a positive effect on the environment and provide improved site utilization. Background: In March, 2006 the Texas Commission on Environmental Quality (TCEQ) adopted updated Municipal Solid Waste (MSW) rules, 30 TAC 330. The draft rules contained provisions to accommodate the permitting of bioreactor landfills. During the adoption process the portions of the rules regarding Bioreactors was removed and the rule package was adopted without any provision City of Denton 2007 State Legislative Program October 3, 2006 Page 1 1 to allow for the permitting of landfills using current state-of-the-art landfill technology. This included the use of bioreactor processes and other processes that enhance the naturally occurring biodegradation of the organic components to speed up the chemical and biological stabilization of the waste. The City would like to explore the possibility of using some of these technologies. Retain Local Control over Development Issues and Fees • Oppose legislation that would erode city annexation authority. • Oppose legislation that would erode city authority in the extraterritorial jurisdiction over special districts. • Oppose legislation that would allow voters in the ETJ to vote on whether any proposed ordinance or ordinance amendment shall apply in the ETJ. • Oppose legislation that would reduce a municipal authority and discretion to approve the creation of a special district within a city's incorporated area or ETJ, including the expansion of a district's boundaries or powers. • Oppose legislation that will reduce or eliminate development fees, exactions or building permits. • Oppose legislation that will restrict cities' ability to adopt or amend zoning regulations, or vest or otherwise create a property right in a zoning classification. Background: Denton has allocated major staff recourses and spent significant sums on creating a development strategy, embodied in the Denton Plan, 1999- 2020, and the Denton Development Code. Denton citizens do not want these efforts to be undermined by legislation eroding local control. The city needs to retain local authority over annexation, development fees, and building permits to implement these plans. Denton provides water and wastewater to its own citizens and also provides water and wastewater services through interlocal agreements with many smaller cities in Denton County. There are 12 fresh water supply districts in Denton County. The City of Denton has had problems with a fresh water supply district forming inside the city limits and had to file litigation. Fresh water supply districts frequently have substandard infrastructure and cannot serve the development that the district City of Denton 2007 State Legislative Program October 3, 2006 Page 12 projected at build out. These systems are not required to bid competitively and are very expensive. Developers will often structure the debt to include a bond balloon payment. This balloon payment is usually due around the time the system is failing. Cities are then pressured to take over the district through annexation and are forced to spend substantial sums to correct the problem. This is the same problem Houston faced in the early 80s. Denton will urge legislators to exercise caution when creating special districts and make sure that special districts notify and receive permission from cities before forming. TML is also opposing all of these types of legislation. Red Light Cameras • Oppose legislation that would restrict a city's ability to implement a photographic red light enforcement system to use cameras at traffic lights and impose a civil penalty for running the light. Background. During the 781h Texas Legislature, SB 1184 passed and amended the Texas Transportation Code to allow cities to use cameras at traffic lights and impose a civil penalty for running the red light. Each year in the United States more than 800 people die and over 200,00 are injured in crashes that involve running of a red light. Texas is ranked fourth in the nation for death rates in red- light crashes. In April 2006, the City implemented red light cameras and four intersections in the city. Since that time, the average daily red light violations have gone down significantly at these intersections, and no motor vehicle accidents have occurred at these intersections. Grandfathering of Existing Employees into Civil Service System • Support legislation that expands the grandfathering clause of newly classified civil service positions to municipalities that do not meet the population requirement outlined in current legislation. Background: The City is in favor of supporting legislation that lowers the population requirements for grandfathering newly classified civil service positions under Chapter 143.021 of the local government code. Current legislation grandfathers newly classified civil service positions if a municipality meets population requirements of 220,000 or more. While the City was able to successfully reclassify some civil service positions through the meet and confer process, a more permanent solution through legislative change is favored. City of Denton 2007 State Legislative Program October 3, 2006 Page 13 TML Resolutions proposed by the City of Denton Beneficial Reuse/Compost/Mulch • Oppose any legislation that would limit or prohibit a city's ability to make and sell composttmulch products, inside and outside of the city limits. Background: Rep. Dennis Bonnen, District 25, has asked the Texas Attorney General for an opinion on "whether or not a city can operate a well-organized, competitive and commercial compost/mulch business and sell its products outside its city limits in direct competition with private enterprise. If representative Bonnen receives a favorable opinion from the Attorney General or if he is successful in passing this type of legislation, this would severely impact the financial viability of our composting operation. The City of Denton Water Reclamation Division initiated the composting operation in 1990. The division had been exploring alternative methods of biosolid disposal and the composting process seemed very promising for an urban environment. The option exists to put wastewater biosolids in the landfill however this is not an environmentally responsible solution. If the Water Reclamation Division stops composting not only will the wastewater biosolids have to be disposed in the landfill but the construction lumber, wood waste and yard waste will have to be disposed of in the landfill as well. To put this volume of waste material in perspective, since 1990 approximately 1,000,000 yards of wood waste and bio solids have been diverted from the landfill. It is estimated that the value of landfill airspace saved in excess of $2,000,000. Not only is the composting operation saving landfill space it is extending the operating life of the landfill. Special Districts in City's ETJ • Support legislation that would place a moratorium on the creation of special districts until the State Legislature can appoint a task force to study their adverse affects; and providing for an effective date. Background: Special districts were originally formed to allow rural areas to obtain adequate water and sewer supplies in areas not served by municipal facilities. In conjunction with the reduction in city authority to annex and vested rights legislation designed to protect developers, developers of dense urban City of Denton 2007 State Legislative Program October 3, 2006 Page 14 developments in rural ETJ areas are using this special district legislation to create mini-quasi-political subdivisions in the ETFs of cities. The incentive for creating special districts is that the developer obtains public financing where all of his development costs are reimbursed on the front end when the bonds for special district infrastructure are sold. The bondholders are paid back through ad valorem taxes assessed against the future homeowners that are typically at a tax rate that is dramatically higher than normal city tax rates. If the city decides to annex the special district area it must assume the special district's debt, thus putting the city in the position of having to pay for infrastructure through a much lower tax rate. This in turn becomes a disincentive for a city to annex the area until the debt is paid off, thereby further eroding the city's ability to annex area within its ETJ. Cities are not allowed to apply there zoning controls in the ETJ, counties generally have no zoning controls, and there are no regional or state authorities that have zoning power in ETFs. Under current law cities only have two options, try to negotiate a development agreement with the developer proposing the special district or institute involuntary annexation proceedings. However, a city's ability to involuntary annex property in the ETJ has been greatly curtailed by state law, and it is often difficult to negotiate a favorable agreement because of the vested rights laws that lock in development rights once any kind of application is filed. We think that cities, and not developers, are better suited to look out for the public interest in these ETJ areas. Support Legislation that directly benefits UNT and/or TWU • Support legislation that directly benefits UNT and/or TWU, if such proposals do not adversely affect the city's interest. Support Legislation that directly benefits Denton ISD • Support legislation that directly benefits Denton ISD, if such proposals do not adversely affect the city's interest. City of Denton 2007 State Legislative Program October 3, 2006 Page 15 RESOLUTION 5:\Our Documents\Reso1mions\06\interim police chief dre RESOLUTION NO. 2 7 A RESOLUTION CONFIRMING THE APPOINTMENT OF SCOTT LANGFORD AS INTERIM POLICE CHIEF OF THE CITY OF DENTON POLICE DEPARTMENT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the pursuant to Local Government Code §143.013, the Interim City Manager has appointed Scott Langford to serve temporarily as Interim Police Chief of the City of Denton Police Department in addition to his regular duties as Captain; and WHEREAS, the City Council of the City of Denton has determined that the appointment should be confirmed; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON, TEXAS HEREBY RESOLVES: SECTION 1. That the temporary appointment of Scott Langford as Interim Police Chief of the City of Denton Police Department is hereby confirmed. SECTION 2. That this resolution shall become effective immediately upon its passage and approval, and until such time as the confirmation is revoked or superseded by a subsequent appointment and confirmation. PASSED AND APPROVED this the / day of , 2006. PERRY R. M NEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPRO D A O LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: RESOLUTION S:\Our Documents\Resolutions\06\Appraisal Review Board 2006.doc RESOLUTION NO.QQ~ - Q,3g A RESOLUTION NOMINATING MEMBERS TO THE APPRAISAL REVIEW BOARD OF THE DENTON CENTRAL APPRAISAL DISTRICT; AND DECLARING AN EFFECTIVE DATE. WHEREAS, the term of office for various Appraisal Review Board members of the Denton Central Appraisal District will expire on December 31, 2006; and WHEREAS, the City of Denton, Texas wishes to nominate members to said Board; NOW, THEREFORE THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City of Denton, Texas, hereby nominates John Duffy and as members to the Appraisal Review Board of the Denton Central Appraisal District. SECTION 2. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day of '2006. PERK . McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: '~L dA~" APP VED TO LEGAL FORM: EDWIN M.SNYDER T ORNEY BY: RESOLUTION S.\Our Documents\Resolulions\06\2-RES Transportation Local Option Sales Tax Excmption.doe RESOLUTION NO. 0. 5q A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, SUPPORTING STATE LEGISLATION ALLOWING CITIZENS TO VOTE TO EXEMPT. FROM THE TWO PERCENT CAP ON LOCAL SALES TAX ANY LOCAL SALES TAX COMMITTED TO PUBLIC TRANSPORTATION INITIATIVES. WHEREAS, the City of Denton recognizes the need to provide public transportation t solutions to sustain regional mobility; and WHEREAS, the citizens of Denton approved a one-half cent sales tax increase for transportation on September 13, 2003, resulting in the City reaching the two-cent local option cap on sales tax; and WHEREAS, the City Council maintains a goal of providing additional funding capacity for the City and through exempting transit sales tax from the two percent sales tax cap will provide an avenue to achieve this goal; and WHEREAS, the City Council approved Resolution No. 2006-033, on September 12, 2006, endorsing the `Joint recommendation for regional rail in North Central Texas' which supports the concept of local option funding, for public transit in the region by exempting an amount equal to the locally authorized transit sales tax from the two percent local sales tax cap; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The findings set forth in the preamble of this Resolution are incorporated by reference into the body of this Resolution as if fully set forth herein. SECTION 2. The City Council hereby agrees with and supports legislation allowing citizens to vote to exempt from the two percent cap on local sales tax any local sales tax committed to public transportation initiatives. SECTION 3. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the / day of /(OhJ 12006. PE Y R. McNEILL, MAYOR SdOur Documents\Resolulions\06\2-RES Transportation Local Option Sales Tax Exemption.doc ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPROVED AS TO LEGAL FORM: EDWIN M. SNYDER, CITY A TORNEY BY: Page 2 of 2 RESOLUTION + S:\Our Documents\Resolutions\06\Emineot Domain Resolution.doc RESOLUTION NO. kail-7- -0(k A RESOLUTION CONSENTING TO THE EXERCISE OF THE POWER OF EMINENT DOMAIN IN THE CITY OF DENTON BY THE UPPER TRINITY REGIONAL WATER DISTRICT FOR THE SHADY SHORES ROAD TREATED WATER PIPELINE REPLACEMENT PROJECT. WHEREAS, the Upper Trinity Regional Water District (the District) was created pursuant to H.B. # 3112 (the Act) passed by the 71 st Legislature in Regular Session 1989; and WHEREAS, the Act, as amended, authorizes the District to exercise the power of eminent domain in a member City of the District upon receipt of prior consent of the member City as evidenced by a written resolution; and WHEREAS, the District's Board of Directors has approved the general alignment and general location for the Shady Shores Water Pipeline Replacement project as designed by Corollo Engineers, and as indicated on the Location map (Exhibit "A") and the easement right-of-way strip map (Exhibit "B"), both attached hereto and made a part hereof, and WHEREAS, the Project may require the District to acquire land, easements, rights-of-way and property and improvements within the City of Denton's boundaries; and WHEREAS, the existing pipeline has deteriorated to a critical condition and its replacement is imperative to the Public's safety, health and welfare; and WHEREAS, the City of Denton is agreeable to the District exercising its power of eminent domain within the City, if necessary, to obtain the reouired land, easements, rights-of-way and other property to carry out the Project. NOW THEREFOIZ.E THE CITY COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. All matters stated in the Preamble are found to be true and correct and are hereby incorporated into the body of this Resolution as if copied in their entirety. SECTION 2. The City of Denton does hereby give its consent to the District to exercise the District's power of eminent domain within the lioundaries of the City pursuant to the Act as amended to obtain the necessary land, easements, rights-of-way and other property and improvements to carry out its Shady Shores Pipeline Replacement Project generally in accordance with the general alignment and locations indicated approximately on the attached R.O.W. map (Exhibit "A"). SECTION 3. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this th~~~ day of 6"do, 2006. c &~)2 m r P Y c ILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY ow !L2 APP VED TO LEGAL FORM: EDWIN M. SNYDER LTY AT RNEY BY: 1 EXHIBIT A ~ acv ca ~ ~ ~ ~ , i ~ r" '!Fd5G6B~alN r[ lri [sr i ` i, t'„ ' W ARM MEM we ~4?+~ ~~:~f 6~~ ~ ~ ' R _ L ~Q nil _ yn . 1EnYl;;CLU Z 1 ~~y ~CIITY OF DENTON~~~''~ p ~ i• b ~ Z u ^ j +@}~,^S ~ r ~ r y l ~ fit" ' f c.. a .RE + I k PROPOSED UTRWD y -.~~r v ^ ` WATER LINE 1. ~ORINTH CITY LIMIT LINE - ` A>~• T ~ f~ 55 ' CIT►Y;OF=,CORIZIM6 i~} (L 'p t r t ~ stn ~ ~y LOCATION MAP ExNiB(T F3 Rl4NT of-(afAY STRte mo roll.: lrENrrM(- tNER.V{£1~~ c g~c !S 3 i~ 9 ! 9 f 1t5 9 9 ifs ~ E 9 'ii ~ a y ~ 2,~ e j Nis !;e E J!li 1 g A4 I RESOLUTION S:\Our Documents\Resolutions\06\Lowes Addition- Acceptance of Dedication.doc RESOLUTION NO. O~0 -OjT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, RATIFYING AND CONFIRMING THE ACCEPTANCE OF AN APPROXIMATE 3.814 ACRE OF DEDICATION FEE LAND AS SHOWN ON THE PLATS OF LOWES ADDITION, LOT 1, BLOCK 1, AN ADDITION TO THE CITY OF DENTON, TEXAS, ACCORDING TO THE PLAT AND REPLAT THEREOF RECORDED IN CABINET M, PAGE 8 AND PAGE 235 OF THE PLAT RECORDS OF DENTON COUNTY, TEXAS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the then record owner, Douglas and Associates, LLC, dedicated to the public's use forever that certain fee land containing approximately 3.814 acres of land, as shown on the Final Plats of Lowes Addition, Lot 1, Block 1, an addition to the City of Denton, Texas, according to the Plats thereof recorded in Cabinet M. Page 8 and replat released in Cabinet M. Page 235 of the Plat Records of Denton County, Texas (the "Dedication"); and WHEREAS, the City of Denton has heretofore informally accepted the Dedication at the time of filing of such Plats, and desires to memorialize such acceptance through the adoption of this resolution; and WHEREAS, the City Council finds that this resolution is in the public interest; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The findings and recitations contained in the preamble of this resolution are true and correct and are incorporated into the body of this resolution by reference. SECTION 2. The City of Denton, Texas hereby ratifies and confirms the acceptance of the Dedication cffective upon filing of the plat(s). SECTION 3. This Resolution shall become effective and operate retroactively immediately upon its passage and approval. n PASSED AND APPROVED this the 00 day of 1(/1/A/1iY1/1nLl.l 12006. PERRY . McNEILL, MAYOR ATTEST: TEN ER WALTERS, ITY SECRETARY BY: APP VED A TO LEGAL FORM: EDWIN M. S R, CIT ATTORNEY BY: S:\Our Documents\Miscellaneous\06\121206 AIS Lowes.doc AGENDA INFORMATION SHEET AGENDA DATE: December 12, 2006 DEPARTMENT: Legal Department CMIDCM/ACM: Ed Snyder, City Attorney SUBJECT: A resolution of the City Council of the City of Denton, Texas, ratifying and confirming the acceptance of an approximate 3.814 acre of dedication fee land as shown on the plats of Lowes Addition, Lot 1, Block 1, an addition to the City of Denton, Texas, according to the plat and replat thereof recorded in Cabinet M, Page 8 and Page 235 of the Plat Records of Denton County, Texas BACKGROUND: This Resolution ratifies an acceptance of subject right-of-way dedication. Copies of the plats are attached, which show the dedication area. FISCAL INFORMATION: None. 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DOC RESOLUTION NO/C• ) - C oZ- A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF DENTON RELATING TO THE ISSUANCE OF BONDS BY NORTH TEXAS HIGHER EDUCATION AUTHORITY, INC.; APPROVING THE ISSUANCE OF SUCH BONDS AND THE USE OF THE PROCEEDS OF SUCH BONDS; MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the North Texas Higher Education Authority, Inc. (the "Authority") was established as a non-profit corporation pursuant to the Texas Non-Profit Corporation Act, for the purpose of furthering educational opportunities of students by providing funds for the acquisition of student loans; and WHEREAS, the City of Denton and the City of Arlington have requested the Authority to exercise the powers provided for in Section 53B.47 of the Texas Education Code, as amended; and WHEREAS, pursuant to such request, the Authority has issued student loan revenue bonds or otherwise borrowed money to obtain funds to purchase student loans which are guaranteed under the provisions of the Higher Education Act of 1965, as amended, and additional funds are now needed to continue the program; and WHEREAS, the Authority requests that the City approve the issuance of additional bonds to augment the Authority's student loan program; and WHEREAS, the City wishes to approve the issuance of the Authority's bonds provided that City is not responsible in any way for such bonds; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City Council of the City of Denton, Texas, hereby grants its approval to the North Texas Higher Education Authority, Inc. to issue and deliver taxable student loan revenue bonds or other obligations, in one or more series, in an amount not to exceed $200,000,000, such bonds to be issued within four months of the date hereof. The bonds or other obligations are to be issued for the purposes of obtaining funds to purchase student or parent loan notes which are guaranteed under the Higher Education Act of 1965, as amended, setting aside the amount the Authority determines is necessary for a reserve and for operating costs, and paying the cost of issuing such obligations in accordance with the laws of the State of Texas, including Chapter 53B, Texas Education Code. SECTION 2. In addition to the student loan revenue bonds approved in Section 1, the City Council of the City of Denton, Texas, hereby grants its approval to the North Texas Higher Education Authority, Inc. to issue and deliver during 2007 additional student loan revenue bonds or other obligations, in one or more series, in an amount not to exceed $200,000,000, to consist of (1) student loan revenue bonds utilizing a 2006 Private Activity Bond Allocation Carryforward, if any, and a 2007 Private Activity Bond Allocation, and (2) to the extent such allocations are not available, taxable student loan revenue bonds or other obligations. The bonds or other obligations are to be issued for the purposes of obtaining funds to purchase student or Page 1 of 3 S:\Our Documents\Reso1utions\06\NTH EA. DOC parent loan notes which are guaranteed under the Higher Education Act of 1965, as amended, refunding outstanding obligations of the Authority, setting aside the amount the Authority determines is necessary for a reserve and for operating costs, and paying the cost of issuing such obligations in accordance with the laws of the State of Texas, including Chapter 53B, Texas Education Code. SECTION 3. The City Council of the City of Denton, Texas, hereby grants its approval to the application of North Texas Higher Education Authority, Inc. for a 2007 Private Activity Bond Allocation Canyforward in an amount not to exceed $200,000,000, and hereby authorizes the Mayor to execute such application. SECTION 4. The City of Denton, Texas requests that the Authority exercise the powers enumerated and provided for in Section 53B.47, Texas Education Code, as amended, and that such non-profit corporation shall, in this connection, exercise such powers for and on behalf of the City of Denton, Texas and the State of Texas, as contemplated by Section 53B.47(e), (f) and (g), Texas Education Code, as amended. SECTION 5. The City of Denton, Texas does not agree to assume any responsibility in connection with the administration of the Authority's student loan program. Sole responsibility for the administration of the Authority's student loan program is assumed by the Authority. SECTION 6. Further, it is recognized by the City of Denton, Texas that the instruments which authorize the issuance of bonds, notes, or obligations by the Authority will specifically state that the City of Denton, Texas is not obligated to pay the principal of or interest on the bonds, notes, or obligations proposed to be issued by the Authority. Nothing in this resolution shall be construed as an indication by the City of Denton, Texas that it will pay or provide for the payment of any obligations of said Authority whether theretofore or hereafter incurred; and in this connection, attention is called to the Constitution of the State of Texas, wherein it is provided that a city may incur no indebtedness without having made provisions for its payment, and the City Council of the City of Denton, Texas hereby specifically refuses to set aside any present or future funds, assets or money for the payment of any indebtedness or obligation of the Authority. SECTION 7. It is hereby officially found and determined that the meeting at which this resolution is passed is open to the public, as required by law, and that public notice of the time, place and purpose of said meeting was posted„as required by law. SECTION S. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the lQ1 day of V14P l , 2006. R PERK R. McNEILL, MAYOR Page 2 of 3 S:\Our Documents\Resolutions\06\NTHEA.DOC ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ll APP VED A O LEGAL FORM: EDWIN M. SNYDER, Cl Y ATTORNEY BY: 77il~ Page 3 of 3 CERTIFICATE OF SECRETARY THE STATE OF TEXAS § COUNTY OF DENTON § CITY OF DENTON § I, the undersigned, Secretary of the City of Denton, Texas do hereby certify the following: 1. On the 12th day of December, 2006, the City Council of the City of Denton, Texas convened in regular session at its regular meeting place in City Hall, with the duly constituted members of the City Council being as follows: Perry McNeill Mayor Charlye Heggins Council Member, District 1 Pete Kamp Council Member, District 2 and Mayor Pro Tern Jack Thomson Council Member, District 3 Guy McElroy Council Member, District 4 Bob Montgomery Council Member, At Large Place 5 Joe Mulroy Council Member, At Large Place 6 and all Council Members were present at said meeting, except the following: Among other business considered at said meeting, the attached resolution, entitled: A RESOLUTION BY THE CITY COUNCIL OF THE CITY OF DENTON RELATING TO THE ISSUANCE OF BONDS BY THE NORTH TEXAS HIGHER EDUCATION AUTHORITY, INC.; APPROVING THE ISSUANCE OF SUCH BONDS AND THE USE OF THE PROCEEDS OF SUCH BONDS; AND MAKING CERTAIN FINDINGS IN CONNECTION THEREWITH was introduced and submitted to the Council for approval and passage. After presentation and due consideration of the resolution, and upon a motion by Mayor Pro Tern Kamp, seconded by Deputy Mayor Pro Tem Mulroy, the resolution was duly passed and adopted by the City Council, to be effective immediately, by the following vote: 7 voted "For" 0 voted "Against" 0 abstained all as stated in the official Minutes of the City Council for the meeting held on the aforesaid date. 2. The attached resolution is a true and correct copy of the original resolution on file in the official records of the City of Denton, Texas. The duly qualified and acting 45838371.1 t members of the City Council of the City of Denton, Texas, on the date of the aforesaid Council meeting are those persons above named; and according to the records of my office, each member of the City Council was given advance notice of the time, place and purpose of the meeting, and that said meeting and deliberation of the aforesaid public business was open to the public, and written notice of said meeting, including the subject of the entitled resolution, was posted and given in advance thereof, in compliance with the provisions of Chapter 551, Texas Government Code. IN WITNESS THEREOF ' I have reunto s.gned my name officially and affixed ° ' - day of 2006. the seal of said City, this the /U?'-- 1.t J n fifer alters, City Secretary City of Denton, Texas (Seal) 45838371.1 2 RESOLUTION S:\Our Documents\Resolutions\06\Resolution-Investment Policy Review.doc RESOLUTION NO. A RESOLUTION REVIEWING AND ADOPTING THE INVESTMENT POLICY FOR FUNDS FOR THE CITY OF DENTON; DESIGNATING AN INVESTMENT OFFICER; PROVIDING A SAVINGS AND A REPEALING CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council passed Resolution No. 96-061 on October 15, 1996, which adopted an Investment Policy for Funds for the City, in compliance with the Public Funds Investment Act, 74th Leg., ch. 402, 1995 Tex. Sess. Law Serv. 2958 (Vernon) (TEX. GOV'T CODE Ann. Ch. 2256); and WHEREAS, by Resolution No. 97-026, passed by the City Council on June 10, 1997, the City's Investment Policy was amended; and WHEREAS, by Resolution No. 97-077, passed by the City Council on December 16, 1997, the City's Investment Policy was amended; and WHEREAS, by Resolution No. 98-067, passed by the City Council on December 15, 1998, the City's Investment Policy was reviewed and adopted; and WHEREAS, by Resolution No. 99-047, passed by the City Council on September 21, 1999, the City's Investment Policy was amended; and WHEREAS, by Resolution No. 2000-065, passed by the City Council on December 19, 2000, the City's Investment Policy was amended; and WHEREAS, by Resolution No. 2001-072, passed by the City Council on December 18, 2001, the City's Investment Policy was amended; and WHEREAS, by Resolution No. 2002-055, passed by the City Council on December 10, 2002, the City's Investment Policy was amended; and WHEREAS, by Resolution No. 2004-008, passed by the City Council on February 3, 2004, the City's Investment Policy was amended; and WHEREAS, by Resolution No. 2005-008, passed by the City Council on February 22, 2005, the City's Investment Policy was amended; and WHEREAS, by Resolution No. 2005-047, passed by the City Council on November 15, 2005, the City's Investment Policy was amended; and WHEREAS, the City Council desires to review the Investment Policy for compliance to the Public Funds Investment Act, TEX. GOV'T CODE ch. 2256, by the 79th Legislature; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION 1. The City Council has reviewed the attached City of Denton Investment Policy, which contains the City's investment policies and investment strategies for each of the funds under its control and hereby adopts the attached Investment Policy, which is made a part of this Resolution for all purposes. SECTION 2. The Assistant City Manager, Jon Fortune, and the Chief Finance Officer are hereby designated as the City's Investment Officers to perform the functions required of them. The Investment Officers are hereby authorized to perform the functions required of them under the Investment Policy and in accordance with TEX. GOV'T CODE ch. 2256 (Code) and shall complete the investment training required in accordance with the Code. SECTION 3. All resolutions or parts of resolutions in force when the provisions of this resolution became effective which are inconsistent or in conflict with the terms or provisions contained in this resolution are hereby repealed to the extent of any such conflict only. The non- conflicting sections, sentences, paragraphs, and phrases shall remain in full force and effect. SECTION 4. Save and except as amended hereby, all the provisions, sections, subsections, paragraphs, sentences, clauses, and phrases of Resolution No. 96-061, Resolution No. 97-026, Resolution No. 97-077, Resolution No. 98-067, Resolution No. 99-047, Resolution No. 2000-065, Resolution No. 2001-072, Resolution No. 2002-055, Resolution No. 2004-008, Resolution No. 2005-008, and Resolution No. 2005-047 shall remain in full force and effect. SECTION 5. This Resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ! l th day of 12006. PERK . MCNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: Y1 'l d J,&214 dik APPROVED AS TO LEGAL F . EDWIN M. S CITY TORNEY BY: Page 2 of 2 CITY OF DENTON Page 1 of 13 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE SECTION: FINANCE POLICIES REFERENCE NUMBER: 403.06 SUBJECT: INVESTMENTS INITIAL EFFECTIVE DATE: 02/17/87 LAST REVISION DATE: TITLE: INVESTMENT POLICY 06/97 9/99 12/01 1/04 12/05 11/97 12/00 12/02 2/05 I. PURPOSE This policy shall provide the guidelines by which the City of Denton "City" will maintain the minimum amount of cash in its bank accounts to meet daily needs, and to provide protection for its principal and liquidity while receiving the highest yield possible from investing all temporary excess cash. This policy serves to satisfy the statutory requirements of defining and adopting a formal investment policy. The policy and strategy shall be reviewed annually by the Investment Committee and City Council who will formally approve any modifications. This investment policy as approved, is in compliance with the provisions of the Public Funds Investment Act of Tex. Gov't. Code Ann. Chapter 2256, hereinafter referred to as the "Act", as amended and effective September 1, 1997. II. SCOPE A. This Investment Policy applies to the investment activities of the City of Denton, Texas. The specific funds cited hereafter in Section IIB, shall be excluded from this Investment Policy. [All financial assets of all funds, including the General Fund and any other accounts of the City not specifically excluded in these policy guidelines are included. These funds are accounted for in the City's Comprehensive Annual Financial Report (CAFR).] These funds, as well as funds that may be created from time-to-time, shall be administered in accordance with the provisions of these policies. All funds will be pooled for investment purposes. The strategy developed for this pooled fund group will address the varying needs, goals, and objectives of each fund. B. This policy shall not govern funds, which are managed under separate investment programs in accordance with Section 2256.004 of the Act. Such funds currently include; Employees' Retirement Fund of the City of Denton; the Firemen's and Policemen's Pension Funds of the City of Denton; other funds established by the City for deferred employee compensation; revenue bond reserve funds; and certain private donations. The City shall and will maintain responsibility for these funds to the extent required by: Federal and State Law; the City Charter; and donor stipulations. III. INVESTMENT OBJECTIVE & STRATEGY It is the policy of the "City" that, giving due regard to the safety and risk of investment, all available funds shall be invested in conformance with State and Federal Regulations, applicable Bond Resolution requirements, adopted Investment Policy and adopted Investment Strategy. In accordance with the Public Funds Investment Act, the following prioritized objectives (in order of importance in accordance with Section 2256.005(d) of the Act), apply for each of the City's investment strategies: Page 2 of 13 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE TITLE: INVESTMENT POLICY REFERENCE NUMBER: 403.06 A. Suitability - Understanding the suitability of the investment to the financial requirements of the City. Any investment eligible in the Investment Policy is suitable for all City funds. B. Safety - Preservation and safety of principal. All investments will be of high quality securities with no perceived default risk. Market price fluctuations will however occur, by managing the weighted average days to maturity for each fund type as specified. C. Liquidity - To enable the City to meet operating requirements that might be reasonably anticipated, the City's investment portfolio will remain sufficiently liquid. Liquidity shall be achieved by matching investment maturities with forecasted cash flow requirements and by investing in securities with active secondary markets. Short-term investment pools and money market mutual funds provide daily liquidity and may be utilized as a competitive yield alternative to fixed maturity investments. D. Marketability - Securities with active and efficient secondary markets are necessary in the event of an unanticipated cash requirement. Historical market "spreads" between the bid and offer prices of a particular security type of less than a quarter of a percentage point shall define an efficient secondary market. E. Diversification - Investment maturities shall be staggered throughout the budget cycle to provide cash flow based on the anticipated needs of the City. Diversifying the appropriate maturity structure will reduce market cycle risk. F. Yield - Attaining a competitive market yield for comparable security-types and portfolio restrictions are the desired objective. The yield of an equally weighted, rolling six-month treasury bill portfolio shall be the minimum yield objective or "benchmark". A secondary objective will be to obtain a yield equal to or in excess of a local government investment pool, money market mutual fund or average Federal Reserve discount rate. The first measure of success in this area will be the attainment of enough income to offset inflationary increases. Even though steps will be taken to obtain this goal, the City's staff shall constantly be cognizant of the standard of care and the investment objectives pursuant to the provisions of the amended Act, Section 2256.006(a). The Chief Financial Officer shall avoid any transactions that might impair public confidence in the City's ability to govern effectively. The governing body recognizes that in diversifying the portfolio, occasional measured losses due to market volatility are inevitable, and must be considered within the context of the overall portfolio's investment return, provided that adequate diversification has been implemented. The prudence of the investment decision shall be measured in accordance with the tests set forth in Section 2256.006(b) of the Act. IV. INVESTMENT STRATEGY FOR SPECIFIC FUND GROUPS Each major fund type has varying cash flow requirements and liquidity needs. Therefore specific strategies shall be implemented considering the fund's unique requirements and the following shall be considered separate investment strategies for each of the funds mentioned below. The City's funds shall be analyzed and invested according to the following major fund types: Page 3 of 13 POLICY/ADMIMSTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE F ITLE: INVESTMENT POLICY REFERENCE NUMBER: 403.06 A. Operating Funds - Investment strategies for operating funds and commingled pools containing operating funds have as their primary objective to assure that anticipated cash flows are matched with adequate investment liquidity. The secondary objective is to structure a portfolio, which will minimize volatility during economic cycles. This may be accomplished by purchasing high quality, short-term securities, which will compliment each other in a laddered maturity structure. A dollar weighted average maturity of 365 days or less will be maintained and calculated by using the stated final maturity date of each security. B. Debt Service Funds - Investment strategies for debt service funds shall have as the primary objective the assurance of investment liquidity adequate to cover the debt service obligation on the required payment date. Securities purchased shall not have a stated final maturity date, which exceeds the debt service payment date. A dollar weighted average maturity of 550 days or less will be maintained and calculated by using the stated final maturity date of each security. C. Debt Service Reserve Funds - Investment strategies for debt service reserve emergency and contingency funds shall have as the primary objective the ability to generate a dependable revenue stream to the appropriate fund from securities with a low degree of volatility. Securities should be of high quality and, except as may be required by the bond ordinance specific to an individual issue, of short to intermediate-term maturities with stated final maturities not exceeding five (5) years. Volatility shall be further controlled through the purchase of securities carrying the highest coupon available, within the desired maturity and quality range, without paying a premium, if at all possible. Such securities will tend to hold their value during economic cycles. A dollar weighted average maturity of 650 days or less will be maintained. C. Construction and Special Purpose Funds - Investment strategies for construction projects or special purpose fund portfolios will have as their primary objective to assure that anticipated cash flows are matched with adequate investment liquidity. These portfolios should include at least 10% in highly liquid securities to allow for flexibility and unanticipated project outlays. The stated final maturity dates of securities held should not exceed the estimated project completion date. A dollar weighted average maturity of 365 days or less will be maintained and calculated by using the stated final maturity of each security. E. Market prices for all public fund investments will be obtained and monitored through the use of Interactive Data Inc., an on-line data service or a similar qualified successor agency. V. INVESTMENT COMMITTEE Members - There is hereby created an Investment Committee consisting of the City Manager, Assistant City Manager, Chief Financial Officer, Mayor, and one member of the City Council. Scope - The Investment Committee shall meet at least quarterly to determine general strategies and to monitor results. Included in its deliberations will be such topics as: economic outlook, portfolio diversification, maturity structure, potential risk to the City's funds, authorized brokers and dealers, and the target rate of return on the investment portfolio. Page 4 of 13 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE TITLE: INVESTMENT POLICY REFERENCE NUMBER: 403.06 Procedures - The Investment Committee shall provide minutes of its meetings. Any two members of the Investment Committee may request a special meeting, and four members shall constitute a quorum. The Investment Committee shall establish its own rules of procedures. VI. RESPONSIBILITY AND STANDARD OF CARE A. Delegation & Training - The management responsibility for the investment program is hereby delegated to the Assistant City Manager, who shall establish written procedures for the operation of the investment program, consistent with this investment policy. Such procedures shall include explicit delegation of authority to the individual(s) responsible for investment transactions. The primary individual who shall be involved in investment activities will be the Chief Financial Officer. The Treasury & Tax Manager will have a support role. The Assistant City Manager and Chief Financial Officer are designated as investment officers, pursuant to section 2256.005 subsection f of the Act. Accordingly, the investment officers, who shall be the chief financial officer and the investment officer of the City for the purposes of Section 2256.008 of the Act, shall attend at least one training session relating to their responsibility under the Act within 12 months after assuming duties. These sessions and additional investment training sessions must be completed no less often than once every two fiscal years commencing September 1, 1997 and these financial officers shall receive not less than 10 hours of instruction relating to investment responsibilities. The training must include education in investment controls, security risks, strategy risks, market risks, and compliance with the Public Funds Investment Act. The investment training session shall be provided by an independent source approved by the investment committee. For purposes of this policy, an "independent source" from which investment training shall be obtained shall include a professional organization, an institute of higher learning or any other sponsor other than a Business Organization with whom the City of Denton may engage in an investment transaction. Thus, these independent sources will be training sessions sponsored by Government Treasurers Organization of Texas (GTOT), University of North Texas (UNT), Government Finance Officers Association of Texas (GFOAT). No persons may engage in investment transactions except as provided under the terms of this policy and the procedures established by the Assistant City Manager. The Assistant City Manager shall be responsible for all transactions undertaken, and shall establish a system of control to regulate the activities of the Chief Financial Officer. The controls shall include a quarterly process of independent review by an individual or firm designated by the Assistant City Manager, and an annual review by an external auditor. The reviews will provide internal control by assuring compliance with policies and procedures. The Assistant City Manager, Chief Financial Officer, Mayor, City Council, City Manager and other Finance employees shall be personally indemnified in the event of investment loss provided the Investment Policies and Guidelines are followed. B. Conflicts of Interest - All participants in the investment process shall seek to act responsibly as custodians of public assets. Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. C. Disclosure - Anyone involved in investing City funds shall file with the Assistant City Manager and the Investment Committee a statement disclosing any personal business relationship and any material financial interest in a business organization that handle City of Page 5 of 13 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE TITLE: INVESTMENT POLICY 1 REFERENCE NUMBER: 403.06 Denton investments. An investment officer has a personal business relationship with a business organization if 1. The investment officer owns 10% or more of the voting stock or shares of the business organization or owns $5,000 or more of the fair market value of the business organization; 2. Funds received by the investment officer from the business organization exceed 10% of the investment officers gross income for the prior year; or 3. The investment officer has acquired from the business organization during the prior year investments with a book value of $2,500 or more for the personal account of the investment officer. Any investment officer who is related within the second degree by affinity or consanguinity as determined under the Tex. Gov't. Code Ann. Ch. 573 to an individual seeking to sell an investment to the City shall file a statement disclosing that relationship with the City Council and the Texas Ethics Commission. D. Prudence - The standard of prudence to be used by the investment officials shall be the "Prudent Person Rule", as set forth in Tex. Gov't. Code Ann. Sec. 2256.006 and will be applied in the context of managing an overall portfolio: "Investments shall be made with judgement and care under circumstances then prevailing - which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived." Investment officials acting in accordance with written procedures and the investment policy and exercising due diligence shall be relieved of personal responsibilities for an individual security's credit risk or market price change, provided deviations from expectations are reported in a timely fashion and appropriate action is taken to control adverse developments. E. Reporting Monthly - The Chief Financial Officer shall submit monthly an investment report, to the Investment Committee, that summarizes recent market conditions, economic developments and anticipated investment conditions. The report shall summarize the investment strategies employed, describe the portfolio in terms of investment securities, maturities, risk characteristics and other features. The report shall include total investment return to date and compare the return with budgetary expectations or projections. Quarterly - The Chief Financial Officer shall prepare and present to the Investment Committee and City Council a written report on the City's investment transactions for the preceding reporting period. The report shall: 1) describe in detail the investment position of the City as of the end of the reporting period, 2) prepared jointly by all investment officers, 3) signed by each investment officer, 4) contain a summary statement of each pooled fund including a) beginning market value for the reporting period, b) additions and changes to the market value during the period; c) ending market value for the period; and d) fully accrued interest for the reporting period. The summary statement for each fund group must be prepared in compliance with Generally Accepted Accounting Principles (GAAP). 5) State the book value and market value of each separately invested asset at the beginning and end Page 6of13 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE TITLE: INVESTMENT POLICY REFERENCE NUMBER: 403.06 of the reporting period by type of asset and fund type invested; 6) state the maturity date of each separately invested asset that has a maturity date, 7) state the account or fund or pooled group fund for which each individual investment was acquired; and 8) state the compliance of the investment portfolio of the City as it relates to the investment strategy of the City and with relevant provisions of the Tex. Gov't. Code ch. 2256. Annually - Within one hundred-twenty (120) days of the end of the Fiscal Year, the Chief Financial Officer shall present a comprehensive annual report to the City Council on the investment program and investment activity. The annual report shall provide a separate quarterly comparison of returns and suggestions for improvements that might be made in the investment program. The City Council shall review and approve the investment policy and investment strategies at least annually and be documented by rule, order, ordinance or resolution which shall include any changes made. Compliance Audit - The City's external, independent auditor will conduct an annual review of the quarterly reports in conjunction with the annual financial audit. The results of the audit will be reported to City Council upon receipt. The audit will review compliance with management control on investments and adherence to this policy. F. The guidelines of retaining records for seven years as recommended in the Texas State Library Municipal Records Manual should be followed. The Chief Financial Officer shall oversee the filing and/or storing of investment records. VII. SUITABLE AND AUTHORIZED INVESTMENT SECURITIES A. Active Portfolio Management - The City intends to pursue an active versus a passive investment management philosophy. That is, securities may be sold before they mature if market conditions present an opportunity for the City to benefit from the trade. (Subsection E) B. Authorized Investments (Per HB 2459 and Sections 2256009 through 2256.017 of the Act) - Assets of funds of the government of the City of Denton may be invested in: 1. Obligations of the United States of America, its agencies and instrumentalities (maturing in less than five (5) years; which have a liquid market with a readily determinable market value; 2. Investment - grade, direct obligations of the State of Texas (maturing in less than two (2) years); 3. Obligations of the States, agencies thereof, Counties, Cities, and other political subdivisions of any state having been rated as investment quality by a nationally recognized investment rating firm, and having received a rating of not less than "AA" or its equivalent (maturing in less than two (2) years); 4. Fully insured or collateralized Certificates of Deposit issued by state and national banks or savings bank or a state or federal credit union, domiciled in Texas, guaranteed or insured by the Federal Deposit Insurance Corporation or its successor or Page 7 of 13 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE TITLE: INVESTMENT POLICY REFERENCE NUMBER: 403.06 the National Credit Union Share Insurance Fund or its successor; secured by obligations described in 1 through 3 above, and that have a market value of not less than the principal amount of the certificates but excluding those mortgage backed securities as described in the Tex. Gov't. Code Sec. 2256.009(b). (maturing in less than one (1) year); 5. Fully collaterized direct repurchase agreements (whose underlying purchased securities consist of the foregoing) with a defined termination date secured by obligations of the United States or its agencies and instrumentalities pledged with a third party, selected and approved by the City through its Chief Financial Officer, other than an agency for the pledgor and deposited at the time the investment is made with the City. Repurchase agreements must be purchased through a primary government securities dealer, as defined by the Federal Reserve, or a bank domiciled in Texas. Each issuer of repurchase agreements must sign a copy of the City's Master Repurchase Agreement (termination date must be 30 days or less); 6. Commercial paper that has a stated maturity of 270 days or less from the date of issuance and is rated A-1 or P-1 or an equivalent rating by at least two nationally, recognized rating agencies. 7. a. Public Fund Investment Pools with a weighted average maturity of 90 days or less. The pool must be approved (by resolution) by the City Council to provide services to the City. The pool must be continuously rated no lower than AAA or AAA-m or at an equivalent rating by at least one nationally recognized rating service. A public funds investment pool created to function as a money market mutual fund must mark to market daily and, stabilize at a $1 net asset value. b. To be eligible to receive funds from and invest funds on behalf of an entity under this chapter, an investment pool must furnish to the investment officer or other authorized representative of the entity an offering circular or other similar disclosure instrument that contains, at a minimum, the following information: (1) the types of investments in which money is allowed to be invested; (2) the maximum average dollar-weighted maturity allowed, based on the stated maturity date, of the pool; (3) the maximum stated maturity date any investment security within the portfolio has; (4) the objectives of the pool; (5) the size of the pool; (6) the names of the members of the advisory board of the pool and the dates their terms expire; (7) the custodian bank that will safekeep the pool's assets; (8) whether the intent of the pool is to maintain a net asset value of one dollar and the risk of market price fluctuation; (9) whether the only source of payment is the assets of the pool at market value or whether there is a secondary source of payment, such as insurance or guarantees, and a description of the secondary source of payment; (10) the name and address of the independent auditor of the pool; (11) the requirements to be satisfied for an entity to deposit funds in and withdraw funds from the pool and any deadlines or other operating Page 8 of 13 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE TITLE: INVESTMENT POLICY REFERENCE NUMBER: 403.06 policies required for the entity to invest funds in and withdraw funds from the pool; and (12) the performance history of the pool, including yield, average dollar- weighted maturities, and expense ratios. C. To maintain eligibility to receive funds from and invest funds on behalf of an entity under this chapter, an investment pool must furnish to the investment officer or other authorized representative of the entity: (1) investment transaction confirmations; and (2) a monthly report that contains, at a minimum, the following information: (A) the types and percentage breakdown of securities in which the pool is invested; (B) the current average dollar-weighted maturity, based on the stated maturities of the pool; (C) the current percentage of the pool's portfolio in investments that have stated maturities of more than one year; (D) the book value versus the market value of the pool's portfolio, using amortized cost valuation; (E) the size of the pool; (F) the number of participants in the pool; (G) the custodian bank that is safekeeping the assets of the pool; (H) a listing of daily transaction activity of the entity participating in the pool; (1) the yield and expense ratio of the pool; (J) the portfolio managers of the pool; and (K) any changes or addenda to the offering circular. 8. An SEC-registered, no load money market mutual fund which has a dollar weighted average stated maturity of 90 days or less whose assets consist exclusively of the assets described in section B.I. and whose investment objectives includes the maintenance of a stable net asset value of $1 for each share: furthermore, it provides the City with a prospectus and other information required by the SEC Act of 1934 or the Investment Advisor Act of 1940 and which provides the City with a prospectus and other information required by the Securities Exchange Act of 1934 (15 USC. Section 78a et. Seq.) or the Investment Company Act of 1990 (15 USC Section 80a-I et. Seq.). 9. Other such securities or obligations which are authorized by the Act as approved by City Council upon recommendation of the Investment Committee. C. Prohibited Investments - The City's authorized investment options are more restrictive than those allowed by State law. Furthermore, this policy specifically prohibits investment in the following investment securities. 1. Obligations whose payment represents the coupon payments on the outstanding principal balance of the underlying mortgage-backed security collateral and pays no principal. 2. Obligations whose payment represents the principal stream of cash flow from the underlying mortgage-backed security collateral and bears no interest. Page 9 of 13 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE TITLE: INVESTMENT POLICY REFERENCE NUMBER: 403.06 3. Collateralized mortgage obligations that have a stated final maturity date of greater than 10 years. 4. Collateralized mortgage obligations the interest rate of which is determined by an index that adjusts opposite to the changes in a market index. D. Diversification - It is the policy of the City to diversify its investment portfolios. The diversification will protect interest income from the volatility of interest rates and the avoidance of undue concentration of assets in a specific maturity sector; therefore, portfolio maturities shall be staggered. Securities shall also be selected and revised periodically by the Investment Committee. In establishing specific diversification strategies, the two (2) following general policies and constraints shall apply: 1. Risk of market price volatility shall be controlled through maturity diversification and by controlling unacceptable maturity extensions and a mismatch of liabilities and assets. The maturity extension will be controlled by limiting the weighted average maturity of the entire portfolio to 550 days. All long-term maturities will be intended to cover long-term liabilities. In addition, five (5%) percent of the funds in the portfolio will be liquid at all times. 2. The Investment Committee shall establish strategies and guidelines for the percentage of the total portfolio that may be invested in U.S. Treasury Securities, federal agency instrumentalities, repurchase agreements, and insured/collaterlized certificates of deposit and other securities or obligations. The Investment Committee shall conduct a quarterly review of these guidelines, and shall evaluate the probability of market and default risk in various investment sectors as part of its considerations. 3. Risk of principal loss in the portfolio as a whole shall be minimized by diversifying investment types according to the following limitations. Investment Tvae % of Portfolio • U.S. Treasury Notes/Bills 100% • U.S. Agencies & Instrumentalities 100% • State of Texas Obligations & Agencies 15% • Local Government Investment Pools 50% • Local Government Obligations (AA) 10% • Repurchase Agreements 25% • Certificates of Deposit 100% • U.S. Government Money Market Funds 50% • U.S. Treasury Notes & U.S. Agency Callables 35% By Institution: Repurchase Agreements No more than 10% All Other No more than 40% Investment Pools No more than $10,000,000 Page 10 of 13 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE TITLE: INVESTMENT POLICY REFERENCE NUMBER: 403.06 E. Security swaps may be considered as an investment option for the City. A swap out of one instrument into another is acceptable to increase yield, realign for disbursement dates, extend or shorten maturity dates and improve market sector diversification. Swaps may be initiated by brokers/dealers who are on the City's approved list. A horizon analysis is required for each swap proving benefit to the City before the trade decision is made, which will accompany the investment file for record keeping. F. All investments (governments or bank C.D.'s) will be solicited on a competitive basis with at least three (3) institutions. The Investment Committee can approve exceptions on a case by case basis or on a general basis in the form of guidelines. These guidelines shall take into consideration the investment type maturity date, amount, and potential disruptiveness to the City's investment strategy. The investment will be made with the broker/dealer offering the best yield/quality to the City. The quotes may be accepted orally, in writing, electronically, or any combination of these methods. G. Arbitrage - Due to the bond issuance sizes of which the City incurs on a regular basis, arbitrage should be addressed. The Tax Reform Act of 1986 provided limitations restricting the City's investing of tax- exempt General Obligation Bond proceeds and debt service income. New arbitrage rebate provisions require that the City compute earnings on investment from each issue of bonds on an annual basis to determine if a rebate is required. To determine the City's arbitrage position, the City is required to perform specific calculations relative to the actual yield earned on the investment of the funds and the yield that could have been earned if the funds had been invested at a rate equal to the yield on the bonds sold by the City. The rebate provision states that periodically (not less than once every five years, and not later than sixty days after maturity of the bonds), the City is required to pay the U.S. Treasury a rebate of excess earnings based on the City being in a positive arbitrage position. The Tax Reform restrictions require extreme precision in the monitoring and recording facets of investments as a whole, and particularly as they relate to yields and computations so as to insure compliance. Failure to comply can dictate that the bonds become taxable, retroactively from the date of issuance. The City's investment position relative to the new arbitrage restrictions is the continued pursuit of maximizing yield on applicable investments while insuring the safety of capital and liquidity. It is a fiscally sound position to continue maximization of yield and rebate excess earnings, if necessary. Page 1 I of 13 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE TITLE: INVESTMENT POLICY REFERENCE NUMBER: 403.06 VIII. SELECTION OF BANKS AND DEALERS A. Depository - City Council shall, by ordinance, "select and designate one or more banking institutions as the depository for the monies and funds of the City" in accordance with the requirement of Tex. Loc. Gov't. Code ch. 105. The bank shall be selected primarily on "solvency and stability" and secondly, on rate of interest available. The Chief Financial Officer shall conduct a comprehensive review of prospective depositories credit characteristics and financial history. The bank shall be selected through a formalized bidding process in response to the City's request for proposal (RFP) outlining all services required. The Investment Committee shall have the discretion to determine the time span for rebidding the banking services contract; however, a two year period will be the minimum length of time between bidding with a 5 year maximum period. Banks and savings and loans associations seeking to establish eligibility for the City's competitive certificate of deposit purchase program, shall submit financial statements, evidence of Federal insurance and other information as required by the Chief Financial Officer. B. Investment Brokers/Dealers -The Investment Committee shall be responsible for adopting the list of brokers and dealers of government securities. Their selection shall be among only primary government securities dealers that report directly to the New York Federal Reserve Bank, unless a comprehensive credit and capitalization analysis reveals that other firms are adequately financed to conduct public business. The Investment Committee shall base its evaluation of security dealers and financial institutions upon: 1. Financial conditions, strength and capability to fulfill commitments; 2. Overall reputation with other dealers or investors; 3. Regulatory status of the dealer; 4. Background and expertise of the individual representatives. The Chief Financial Officer shall conduct business with securities dealers approved by the Investment Committee or with banks selected as outlined in VIII. Furthermore, the committee must annually review this list of qualified brokers authorized to engage in investment transactions with the City. Investment Officers shall not conduct business with any firm with whom public entities have sustained losses on investments or whose name the Investment Committee has removed from an approved list. C. Compliance - A qualified representative from any firm offering to engage in investment transactions with the City is required to sign a written instrument. This certifies that they have received and reviewed a written copy of the City's Investment Policy. The firm must acknowledge that it has implemented reasonable procedures and controls in an effort to preclude investments between the City and the firm that are not authorized by the City's investment policy. Approved brokers and dealers must complete Exhibit A and return it to Page 12 of 13 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE TITLE: INVESTMENT POLICY REFERENCE NUMBER: 403.06 the Chief Financial Officer. The City's investment officer(s) may not transact business from a person who has not delivered the required written instrument to the City. D. Diversification - To guard against default possibilities under these conditions, and to assure diversification of bidders, business with any one issuer, or investment broker, should be limited to (40%) percent of the total portfolio at any point in time. In this way, bankruptcy, receivership or legal action would not immobilize the City's ability to meet payroll or other expenses. IX. PRINCIPAL PROTECTION AND SAFEKEEPING A. All banks' and savings and loan associations' deposits and investments of City funds shall be secured by pledged collateral with a market value equal to no less than 102 percent of the principal plus accrued interest less an amount insured by FDIC or FSLIC. Evidence of proper collateralization in the form of original safekeeping receipts held in the institution's trust department or at a third party institution not affiliated with the bank or bank holding company will be maintained in the office of the Chief Financial Officer all time. The Assistant City Manager, Chief Financial Officer or other authorized City Representative will approve and release all pledged collateral. Collateral will be reviewed monthly to assure the market value of the securities pledged exceeds investments and/or the related bank balances. The Committee shall request additional collateral in the event they deem that their deposits and investments are not sufficiently protected by the pledged collateral. B. Safekeeping procedures shall be established by the Investment Committee which clearly define steps for gaining access to the Collateral should the City determine that the City's funds are in jeopardy. Collateral safekeeping and substitution agreements will be a part of the procedure. C. Collateral Defined - The City of Denton shall accept only the following securities as collateral: 1. FDIC and FSLIC insurance coverage. 2. United States Treasuries & Agencies. 3. Other securities as approved by the Investment Committee. D. Delivery vs. Payment - All transactions will be executed with authorized security dealers and financial institutions on a delivery-versus-payment (DVP) basis. That is, funds shall not be wired or paid until verification has been made that the Trustee received the collateral. The collateral shall be held in the name of the City or held on behalf of the City. The Trustee's records shall assure the notation of the City's ownership of or explicit claim on the securities. The original copy of all safekeeping receipts shall be delivered to the City. Securities will be held by the City's safekeeping agent, which shall be selected through a competitive process (RFP) or that agent's representative in New York City, or in it's account at the Federal Reserve Bank. E. Subject to Audit - All collateral shall be subject to inspection and audit by the Chief Financial Officer, or designee, as well as, the City's independent auditors. Page 13 of 13 POLICY/ADMINISTRATIVE PROCEDURE/ADMINISTRATIVE DIRECTIVE REFERENCE NUMBER: TITLE: INVESTMENT POLICY 403.06 X. MANAGEMENT AND INTERNAL CONTROLS The Chief Financial Officer, or designee, shall establish a system of internal controls, which shall be reviewed by an independent auditor. The controls shall be designed to prevent losses of public funds arising from fraud, employee error, and misrepresentation by third parties, unanticipated changes in financial markets, or imprudent actions by employees or Investment Officers of the City. Controls and managerial emphasis deemed most important that shall be employed include the following: Imperative Controls: - Custodian safekeeping receipts records management - Avoidance of bearer-form securities - Documentation of investment bidding events - Written confirmation of telephone transactions - Reconcilements and comparisons of security receipts with the investment subsidiary records - Compliance with investment policies - Verification of all interest income and security purchase and sell computations Controls Where Practical: - Control of Collusion - Separation of duties - Separation of transaction authority from Accounting and Record-keeping - Clear delegation of authority - Accurate and timely reports - Validation of investment maturity decisions with supporting cash flow data - Adequate training and development of Investment Officials - Review of financial conditions of all brokers, dealers, and depository institutions - Staying informed about market conditions, changes and trends that require adjustments in investment strategies.