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HomeMy WebLinkAboutAugust 7, 2006 Agenda AGENDA CITY OF DENTON CITY COUNCIL August 7, 2006 After determining that a quorum is present, the City Council of the City of Denton, Texas will convene in a Special Called Work Session on Monday, August 7, 2006 at 11:30 a.m. in the Council Work Session I~OOm, 215 E. McKinney, Denton, Texas at which the following items will be considered: NOTE: A Work Session is used to explore matters of interest to one or more City Council Members or the City Manager for the purpose of giving staff direction into whether or not such matters should be placed on a future regular or special meeting of the Council for citizen input, City Council deliberation and formal City action. At a Work Session, the City Council generally receives informal and preliminary reports and information from City staff, officials, members of City committees, and the individual or organization proposing council action, if invited by City Council or City Manager to participate in the session. Participation by individuals and members of organizations invited to speak ceases when the Mayor announces the session is being closed to public input. Although Work Sessions are public meetings, and citizens have a legal right to attend, they are not public hearings, so citizens are not allowed to participate in the session unless invited to do so by the Mayor. Any citizen may supply to the City Council, prior to the beginning of the session, a written report regarding the citizen's opinion on the matter being explored. Should the Council direct the matter be placed on a regular meeting agenda, the staff will generally prepare a final report defining the proposed action, which will be made available to all citizens prior to the regular meeting at which citizen input is sought. The purpose of this procedure is to allow citizens attending the regular meeting the opportunity to hear the views of their fellow citizens without having to attend two meetings. 1. Receive a report, hold a discussion and give staff direction regarding the state and federal legislative priorities of the City of Denton, including but not limited to state initiatives that impact city finances, regional transportation, utility issues and possible Texas Municipal League resolutions for consideration at their annual conference in October, 2006. 2. Receive a report, hold a discussion, and give staff direction related to Neighborhood Services. The City Council will also convene in a Special Called Open Meeting to consider the following: 1. Consider approval of a resolution 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. NOTE: The City Council reserves the right to adjourn into a Closed Meeting on any item on its Open Meeting agenda consistent with Chapter 551 of the Texas Government Code, as amended, including without limitation, Sections 551.071-551.086 of the Texas Open Meetings Act. However, the Council reserves the right to take action at the meeting regarding any item on the agenda. City of Denton City Council Agenda August 7, 2006 Page 2 CERTIFICATE I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of Denton, Texas, on the day of , 2006 at o'clock (a.m.) (p.m.) CITY SECRETARY NOTE: THE CITY OF DENTON COUNCIL WORK SESSION ROOM IS ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 349-8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1-800- RELAY-TX SO THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY' S OFFICE. AGENDA INFORMATION SHEET AGENDA DATE: August 7, 2006 DEPARTMENT: General Government CM/DCM/ACM: Betty Williams, Executive Administrator Howard Martin, Interim City Manager SUBJECT: Receive a report, hold a discussion and give staff direction regarding state and federal legislative priorities of the City of Denton, including but not limited to state initiatives that impact city finances, regional transportation, utility issues and possible Texas Municipal League resolutions for consideration at their annual conference in October 2006. BACKGROUND: The 80th Regular Session of the Texas Legislature begins in January 2007. As we prepare for that session we need to compile our key legislative issues for our 2007 State Legislative Program. In the past, our program has consisted of issues anticipated to be considered by the Texas Legislature that primarily relate to state initiatives that impact city finances, regional transportation, utility issues, and public safety issues. Since 1997, the City of Denton has participated in submitting resolutions to the Texas Municipal League's (TML) for consideration at their annual conference. This year if we wish to submit any resolutions for TML's consideration, we must have them in to TML no later than September 1 1, 2006. Staff is recommending that two issues, beneficial reuse (compost/mulch) and special districts in a city's ETJ, be submitted for TML's consideration. Also, since the 2001 Legislative Session, the City of Denton has participated with other Denton County cities in presenting our legislative priorities to our state legislators at a Denton County Legislative Luncheon. While, a date has not yet been selected for this luncheon, we have been contacted by Highland Village, who is requesting to host the event this year. The Mayor and the Interim City Manager have also raised the question of possibly hosting an "educational" type workshop for our state elected officials prior to the beginning of the next session, to give them background information on our key legislative issues. There is also a possibility of inviting other cities that share some of our issues to co-host the event with us. For all of these reasons, it is important that we begin to determine the legislative issues that will be included in our 2007 State Legislative Program, and to identify the key legislative issues that we wish to begin educating our state elected officials on. Attached is a list of legislative issues that have been identified by city staff. Each issue has some background information and recommendations on how best to address the issue. The issues are ADA/EOE/ADEA www.cit„yofdenton.com (TDD 800-735-2989) 8/3/06 City's 2007 Legislative Program issues Page 2 of 2 sorted by the TML committees tasked with addressing legislative issues for cities. Resolutions for any issue selected by council to be submitted to TML will be prepared for council approval at the August 15 council meeting. Also attached are the City's current congressional priorities for your review. RECOMMENDATION Submit resolutions to TML of the beneficial reuse (compost/mulch) and special districts in a city's ETJ issues, for consideration at their annual conference. PRIOR ACTION/REVIEW (Council, Boards, Commission): None FISCAL INFORMATION: None Respectfully submitted: A- r L ; i f • f r~ Betty Williams Executive Administrator Prepared by: ..r s ti ti • Nf .1 ti .S. :5~ r I L $ ,r~ ' ti John Cabrales Jr. Public Information Officer ADA/EOE/ADEA www.cityofdenton.com (TDD 800-735-2989) Cit of Denton Staff Le islative Issues for the Sot" Le islature General Policy Issue: Chapter 143 cities (grandfathering existing employees into the civil service system). Background: The City entered into meet and confer negotiations with the Fire Department in 2006. A portion of the meet and confer negotiations with the Fire Department involved the transition of specified nor civil service positions (e.g. fire marshal employees) into the civil service system. This issue relates to recent legislation changes regarding the employee classification portion of Chapter 143.021 of the local government code. A May 2005 attorney general's opinion on grandfathering existing fire department employees into civil service positions only applies to municipalities with a population of 220,000 or more. It is the City's goal through the meet and confer process to amend the classification system for these employees in order to be in compliance with state guidelines. As such, a meet and confer agreement is currently being formulated on this transition and pending approval, the positions will change classification in October 2006 for a three-year period. However, a permanent legislative change is desired. Recommendation: Support legislation that expands the grandfathering clause of newly classified civil service positions to municipalities that do not meet the population requirement outlined from the May 2005 attorney general opinion. Issue: Red light camera operation by cities. Background: The number of Texas cities that are using or considering using red light camera technology has grown significantly over the past few months. In light of the continuing media attention to this issue nationally and in Texas, and the fact this is an interim charge under consideration by the state legislature, there is a good chance that legislators opposed to red light cameras will propose legislation to repeal this authority. The cities of Plano and Richardson are organizing a coalition of cities interested in this issue to developing strategies in advance of any legislative activity. Denton P.D. is part of this coalition. Recommendation: Continue to work with the coalition and oppose any 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. Municipal Revenue and Taxation Issue: Appraisal Cap Reduction and Revenue Cap Initiation Background: We can still expect a strong effort from legislative leadership to proposed revenue cap reduction and revenue cap legislation. They have been "studying" this issue during the interim, and there will probably be a House Study August 7, 2006 Page 1 of 5 Committee formed for this purpose and there is talk that the Governor may also forma "Sharp" type committee of citizens. A report would be issued to the Legislature for its consideration during the next session. Recommendation: Continue to visit with members of the legislature to educate them on these subjects, and continue to oppose any legislation that would negatively affect city revenues and economic development efforts. Issue: Sales tax holiday for textbooks Background: There is a good chance that the Senate Finance Committee will again consider a bill providing fora "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. Recommendation: Continue to work with a coalition of "college cities" in opposing this type of legislation that would result in sales tax revenue loss. Issue: Sales tax cap increase for regional transportation authority Background: The City would like to explore the option to exclude regional transportation projects from the local option sales tax cap. Currently, the state mandates that any 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 regional transportation projects from the local option sales tax cap, the City will be eligible to utilize other local sales tax options. Recommendation: Support Texas Municipal League legislation recommendation that would exempt any local sales tax committed to any current or future transportation projects from the two percent local option sales tax cap. Utili Issues Issue: Promote the use of landfill design and operating technology that would be more protective of the environment, which would include "bioreactors". 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 o f the rules regarding August 7, 2006 Page 2 of 5 bioreactors was removed and the rule package was adopted without any provision to allow for the permitting of landfills using current state-of the-art landfill technology. Recommendation: Propose legislation to promote and allow the permitting of Municipal Solid Waste (MSW) landfill design and operating technologies that can have a positive effect on the environment and provide improved site utilization. This would include, but not be limited to, the use of bioreactor processes and other processes that enhance the naturally occurring biodegradation of the organic components to speedup the chemical and biological stabilization of the waste. Also, we should work with other Texas cities to promote and support such legislation, hire a consultant to assist in developing and promoting of this legislation, and work with the TCEQ to seek support to accommodate more environmentally protective landfill technologies Issue: Electric subsidies for state universities. 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 of Denton 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 this year. Recommendation: Work with Denton Municipal Electric on defeating any legislation that extends this electric subsidy. *Issue: Should cities be allowed to continue to sell compost/mulch and compete with private enterprises? Background: Rep. Dennis Bonnen, District 25, has asked the Texas Attorney General for an opinion on "whether or not a city can operate awell-organized, competitive and commercial compost/mulch business and sell its products outside its city limits in direct competition with private enterprise." He states in his letter that cities actively compete with private business in the State of Texas and bid on large commercial landscape projects. Many of the jobs involve hundreds of thousands of dollars, and that cities are easily able to underbid private businesses in this industry. Apparently, private businesses in the compost/mulch industry in Texas do not have any problem with cities returning the compost/mulch to the homeowners in their own communities, providing the compost/mulch to homeowners in their communities free of any charge, or using compost/mulch in their city parks and common areas. However, they think that cities should not be permitted to compete with private enterprises in the State of Texas nor in any way August 7, 2006 Page 3 of 5 supply landscape contractors or sell bagged products to nurseries. If the AG opinion does not agree with their point of view there is a good chance we will see proposed legislation restricting our ability to sell "Dyno" product. Recommendation: Propose to TML to consider opposing any legislation that would limit or prohibit our ability to make and sell compost/mulch products, inside and outside of our city limits. Eminent Domain/Re~ulation of Development *Issue: Special districts in our ETJ Background: 1. Special districts were originally formed to allow rural areas to obtain adequate water and sewer supplies in areas not served by municipal facilities. However, 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 ETJ areas are using this special district legislation to create mini-quasi political subdivisions in the ETJ's of other cities. 2. This has become a cottage industry for certain law firms who specialize in creating these districts. The incentive for creating the districts is 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 bond holders are paid back through ad valorem taxes assessed against the future homeowners. Typically the tax rate is dramatically higher than your normal city tax rate, and usually is $1 for every $100 assessed value, which is approximately double the normal city tax rate. Even though the developer informs the home buyers of this tax issue through official disclosures at the time of closing, the sales personnel do not disclose this information at the time of the sales negotiations, even in when specifically asked. A local city manager actually tested this by acting as if she were a potential buyer. The sales person did not disclose these issues even when directly asked. If the city decides to annex the area it must assume the district debt. This puts the city in the position of having to pay for infrastructure through a much lower tax rate. Therefore, there 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. 3. Typically these districts propose very dense development in rural areas. They are not compatible with the life style of the area. The common complaint from most persons that live in these areas of the ETJ is that they want their rural life style to be preserved. That is not possible with special districts. The key statewide policy question is who is better suited to look out for the public interest in the ETJ- the city or a developer creating a special district? The city does not have a financial interest in the development and will look out for the public interest. The developer is motivated only by his profit margin. State August 7, 2006 Page 4 of 5 laws allow greedy developers to become taxing political entities who have no motive to preserve the public health, safety and welfare and are not subject to zoning land use controls. Special districts are the antitheses of good government. For this reason they should not be allowed within the ETJ of any city. 4. Related to this issue is the absence of zoning control in the ETJ. City's are prohibited from applying there zoning controls in the ETJ, counties generally have not zoning controls, and there are no regional or state authorities that have zoning power. In a rural Texas this may have been ok. However, Texas is no longer predominately rural, at least in the urban metropolitan areas. It makes no sense to allow developers unbridled discretion to develop whatever they desire in the ETJ's of cities located in growing urbanized areas of the state. Special district laws encourage land speculators to develop cheaper land in the ETJ where they are not subject to zoning controls, while having the benefit of immediate reimbursement of costs through public financing, and being able to offer home owners the advantage of being very close to the city. This creates an economic incentive to not develop within the city, but to develop in the ETJ. There is no way that this is good for the public. It injures the cities, and it injures the persons living in the ETJ who desire to have their rural lifestyle somewhat preserved, or at least delayed until orderly growth proceeds from current city limits outward. It is the opposite of what should be encouraged. Dense development should be encouraged to take place in the more urban areas first, before it is proposed in rural areas. 5. Under current law the city only has two options, try to negotiate a development agreement with the developer proposing the special district or institute involuntary annexation proceedings. As everyone knows, city ability to involuntary annex property in the ETJ is now greatly curtailed by state law. It is very difficult to negotiate a favorable agreement because of the vested rights laws that arguably lock in development rights once any kind of application is filed. Recommendation: 1. Propose to TML to consider legislation to place a moratorium on the creation of special districts until the state legislature can appoint a task force to study their adverse affects. 2. Propose to TML to consider legislation to prohibit special districts within the ETJ of a city, or at least within the ETJ's of cities located in metropolitan areas. 3. Propose to TML to consider legislation providing zoning controls within ETJ's, or at least within the ETJ's of cities located in metropolitan areas. * Recommended passing a resolution for the Texas Municipal League's consideration at their annual conference on October 2006. August 7, 2006 Page 5 of 5 City of Denton's Congressional Priorities West Loop 288 Extension Denton Municipal Airport Safety and Security Enhancements Downtown Development Improvements Hickory Street Corridor Public Safety Training Facility/Technology Telecom Ask Congress not to undo what Texas got with SB5 and allow us to maintain our ROW CDBG Funding No reduction in funding Wright Amendment Clarify that the "commercial passenger air service" restriction, mentioned in the "Wright Amendment" agreement, does not include Class IV Part 139 commercial passenger air service as defined by the Federal Aviation Regulation. West Loop 288 Extension - IH-35 to IH-35W PURPOSE OF REQUEST: Denton is seeking congressional support to obtain funding for the West Loop 288 Extension that will connect IH - 35 to IH-35W. As Denton continues to develop and grow and traffic on IH-35 increases, this roadway becomes a vital transportation corridor for the western side of Denton. • Loop 288 is the truck route around Denton eliminating heavy truck traffic on U.S. 380, a major roadway through Denton. Extension of West Loop 288 would alleviate additional truck traffic on U.S. 380 and improve conditions at U.S. 380andIH-35. • Extension of West Loop 288 would also provide a bypass for traffic around Denton for any traffic problems on IH-35. • Opening up the west side of Denton Municipal Airport for development would be facilitated by the extension of West Loop 288. The development would be an economic development enhancement for the City of Denton. • Denton's new Public Safety Training Facility and Fire Station #7 are being built inclose proximity to West Loop 288 connection to IH-35W. The extension of this roadway would improve public safety access to the western portion of Denton. • The western portion of Denton has been identified as a major employment center with industrial areas for development. Extension of the western loop would encourage development in the area and support Denton's long-range goals. Denton Municipal Airport Safety & Security Enhancements PURPOSE OF REQUEST: Denton is seeking congressional support to obtain surplus Digital Bright Radar Indicator Tower Equipment (DBRITE) equipment from the Federal Aviation Administration (FAA), as well as discretionary funding for anticipated installation costs totaling $350,000 dollars. Denton is also seeking congressional support for the installation of approximately 20,000 linear feet of chain link security fencing along the perimeter of the Denton Airport property. This project will also include six automatic gate operators along the eastern property line for controlled access to the airport. • The Denton Airport is currently experiencing significant growth resulting from capital investments in the airport infrastructure such as the tower and apron expansion along with improvements currently underway to the taxiway system, extension of the runway and a new terminal building. • Many tenants, transient pilots and airport users have repeatedly requested radar service since the tower came online in May 2004. • Radar service will increase flight safety at Denton Airport by providing air traffic controllers with information on aircraft not yet in their fields of vision, which will also improve air space management at Denton Airport and at DFVV Ir~ernational. • Security fencing and controlled access gates will improve airfield safety and security at the Denton Airport and will compliment private development concerns as well as address safety and security concerns raised by the FAA. • The Denton Airport is a maj or component in the North Texas Airport System and the regional economy. The airport will continue to experience substantial growth correlating to the North Texas/DFVV region and these improvements will further our goal of improving flight safety and enhancing the region's economy. Downtown Development Hickory Street Corridor PURPOSE OF REQUEST: The City of Denton is seeking congressional support to fund sidewalk improvements that will promote pedestrian access from the future Downtown Trarnit Center to the edge of the University of North Texas (UNT) • Denton has allocated $3.9 million to purchase land for two transit stations for the future Denton County Transportation Authority (DCTA) passenger line, one station being located in Denton's Historic Downtown. • Denton has completed a $1 million project improving the sidewalks within the Downtown Square. The sidewalks on the streets immediately surrounding the Square have also been funded with city ($2.8 million) and federal ($900,000) dollars. • Denton is currently working with a major developer and national financial institution on a catalyst project that will create more than 130 new residential units and over 50,000 square feet of new retail and office space. This sustainable development proj ect is located on Hickory Street at the southeast corner of the Downtown Square. Denton is working with the local Council of Governments to obtain assistance with infrastructure costs for this project. • The improvement of Hickory Street sidewalks is a key component in Denton's master plan that currently lacks funding. The Hickory Street proj cct is needed to promote access for the additional pedestrian and bicycle traffic generated by the catalyst project and spin-off development as well as the nearly 20,000 UNT students that currently commute to Denton. • The estimated cost to improve Hickory Street sidewalks from Bell Avenue (future transit station) to Carroll Boulevard (maj or north/south arterial at the edge of Downtown core) is $500,000. Denton Public Safety Training Facility PURPOSE OF REQUEST: The City of Denton is requesting $4.5 million in discretionary funding for technology uses associated with the planned construction of astate-of the-art joint police and fire public safety training facility. The construction of the new facility will aid in our community's homeland security preparedness, by providing quality emergency service training to our region. The added value of constructing this joint public safety training facility is the development of partnerships with area law enforcement agencies and community colleges to enhance the educational opportunities for our region. We expect to set new standards in training emergency responders by exceeding traditional academic and technical requirements for both police and fire personnel. The first phase of the project, the fire station construction to serve the southwest section of the City, will be completed in December 2006. • The City allocated $3.25 million in FY 2003-04 for the fire station portion of the project. • The City has already purchased an 88-acre site for the public safety training facility and is in the process of completing the master plan for the facility. Construction is scheduled to begin in FY 2006-07. The City has issued $3.25 million in bonds for this project. • The City has programmed $8.25 million for construction costs in FY 2006-07. • Maj or training features of the facility will include atactical/live fire burn building, a firearms range, an emergency driving course, and obstacle course, a swift water rescue simulator, an observation and control tower, and administrative and classroom facilities. • The $4.5 million in discretionary funding request will be used to fund the advanced technical needs of the facility. Specific technology requests include $3 million to fund the fire simulation equipment and computerized firearms targeting systems, $1 million to fund classroorr~based virtual reality simulations, and $500,000 to fund administrative/classroom multimedia technology. • ~3 Million for fire simulation equipment and computerized firearms targeting systems • ~1 Million for classroom virtual reality simulation • X500,000 for classroom and administrative technology Federal Telecommunications Talking Points Local Governments Are Essential to the Fair and Efficient Delivery of Cable and Telecommunications Television Services. Every community is Unique: • Geography • Ethnic/economic/demographic mix • One Size DOES NOT FIT ALL in Cable/ Telecommunications Television Franchising 1. Current Local Franchising Allows Each Community to address its UNIQUE requirements • Eliminates the "digital divide" in cable video services • Compels economically feasible build-outs which address the community's need for nondiscriminatory availability of service • Adjusts Cable System Capacity and Funding for Non Commercial Services that would otherwise NOT EXIST in the community • Emergency Communications and Alert Systems • Schools and E Government Broadband Applications 2. The key issues for the City of Denton are: o Maintaining control of public rights-of way (ROW) and receiving compensation for their use and management. We spend a lot of money building, maintaining and managing our streets and sidewalks and we need to protect our investment and manage them in a way that protects all users and public safety. We also currently receive about $1.5 million annually in franchise fees from cable and telecom for the use of our ROW. o Ensuring that all parts of the City receive service and not just a select few neighborhoods. We're making real progress in our community and economic development and neighborhood renewal efforts, but disparities in telecommunications services could pose a real threat to them o Keeping our current package of Public, Educational and Governmental (PEG) programming and support for institutional networks. It's important that we continue to provide service to schools and libraries and can use institutional networks for emergency alerts and public safety. o Franchising authority should be preserved -it's not just about money but about ensuring quality service, protecting our residents against fraud and abuse and making sure that service is tailored to local needs. 3. The City of Denton supports competition in the cable market. In fact, we want competition in the cable market since it brings innovation to the market. These new technologies mean new jobs, new investments, more choices and lower rates for our citizens. 4. As you know, Texas has been very proactive regarding the issue of cable franchising reform. Last year, cities across Texas worked with our state legislature to produce a compromise piece of cable/telecom legislation known as Senate Bill 5. It was not easy for us to pass a bill that cities could live with, but We 1 . 5. Although cities opposed several versions of this bill, the final version of SB 5 was a bill that Denton and Texas cities accepted as a balanced compromise that protected most of the key city issues previously stated. 6. Cities were made financially whole in SBS. Cities maintained police power control of the local rights-of way in SB 5. And finally, SB 5 afforded cities the protections they needed to ensure basic social obligations (PEG channels, consumer protection, etc) were met. 7. SB 5 represents an excellent model for Congress to begin reforming the federal cable and telecommunications laws. SB 5 is the basis upon which we will judge all future bill proposals, and since this bill also gained widespread support from the telecommunications industry, it would be hard for Texas cities to accept a step backward from the protections and provisions afforded in SB 5. So, we urge you to use SB 5 as the model to shape the federal debate. 8. These issues are important to the City of Denton and local governments across the country. Cities play an important role in a competitive telecommunications marketplace. Congress should thoroughly explore and debate these issues and address local government concerns before moving ahead with comprehensive legislation. CDBG Program Funding Over the years, the City of Denton has used CDBG funds for a wide variety of public improvements, social services, economic development and housing activities. CDBG has funded installation or improvement of sidewalks and streets in low income neighborhoods, and the purchase of land for the MLK Jr. Recreation Center and playground. Other playgrounds have been built in low income areas and CDBG has assisted day care facilities with improvements. These sliding scale day cares allow low income adults to work, knowing their children are safe. Service activities funded include indigent health care, day care for children from low income families, adult day care, summer and after-school programs, assistance for victims of domestic violence, nutrition assistance for HIV/AIDS patients and help for those with mental and physical disabilities. Finally, housing has always been the major focus of Denton's CDBG program - homebuyer assistance, home improvement assistance and minor/emergency repairs. Funds are used to assist low income families and often the elderly members of our community who have Social Security as their only income and cannot afford to maintain their homes or pay rent even if they wanted to move. Another decrease in CDBG will begin to shut down more of these important programs. The City has already had to scale back summer playground and after school programs that target low income areas though staff continues to seek other sources of funding. Reduction of funding or elimination of the Minor Repair Program will mean that many elderly households will not be able to repair air conditioners in the summer. Roof leaks and other "small" repairs will not be completed and this will cause additional deterioration of housing units. As you can see, if you end one small program, like the Minor Repair Program, the effects will continue to cause problems for a very long time. Also, fewer sewer, sidewalks and street repairs will be made throughout the City as a result of losing these funds targeted to lowincome areas. City capital improvement funding will have to fund projects previously funded through CDBG. CDBG funds are critical to revitalization of our lower- income areas. when old homes are rebuilt in an area, you can see that other households in the neighborhood are more willing to keep their homes in better shape and to care about the neighborhood. This is what CDBG is all about. Anti-Competitive Impacts of the Dallas/Ft. Worth Parties Agreement regarding the Wright Amendment The City of Denton opposes the anti competitive restrictions on air service for North Texas and to ensure that these restrictions do not become part of any legislation concerning the Wright Amendment. Summary • The City of Denton has not aggressively sought commercial passenger air service (Part 139) at the Denton Airport, however, the City has always planned and embraced projects that facilitate or otherwise maintain the option to initiate Part 139 service at the Airport. • In recent years, some focus has been given to developing limited Part 139 service or Class IV Part 139 service, which would allow for charter operations at the Denton Airport utilizing aircraft with seating capacity of more than 30 passengers. This strategy or focus is based on the opportunity to engage in charter passenger operations to facilitate Division I collegiate sporting events hosted by the University of North Texas. • The Problem: On June 15, 2006 the City of Dallas, the City of Fort Worth, Southwest Airlines, American Airlines and the Dallas/Ft. Worth International Airport (the "Dallas/Ft. Worth Parties") initiated a Joint Statement proposing to enter an agreement ("Agreement") concerning the Wright Amendment that includes anticompetitive provisions that will harm the future development of air service for the people and businesses of North Texas. • Under Sections 6 and 7 of the Agreement, Dallas and Ft. Worth will work together for the next eight years to oppose new commercial air service at any airport within 80 miles of Love Field and the two cities will seek federal legislation to implement this plan. Denton Position Points • The Denton City Council understands the important role that the Denton Municipal Airport plays in this region and to the economic development of our community. • In the past eight years, the City of Denton, TxDOT and the FAA have substantially invested in the Airport making significant improvements to enhance the quality of air transportation service for the community and region. • Though the Airport is not currently serviced by commercial passenger air service, the City of Denton desires to maintain the right and option to develop commercial passenger air service should the opportunity present itself. • Dallas and Ft. Worth may be entitled to work together to develop air service at Love Field or DFW. However, their agreement to oppose any new air service within 80 miles of Love Field should not be the subject of Federal legislation that would place other Texas communities at a competitive disadvantage. • The City of Denton opposes any attempt by another community or entity to dictate or otherwise negatively impact economic development opportunities in our community. AGENDA INFORMATION SHEET AGENDA DATE: August 7, 2006 DEPARTMENT: Parks and Recreation Department ICM: Howard Martin, 349-8232 SUBJECT Receive a report, hold a discussion and give staff direction related to Neighborhood Services. BACKGROUND The coordination and delivery of neighborhood services to the citizens of Denton has been carried out at a variety of levels and structures over the years. The purpose of this report is to provide a history of the neighborhood services function and potential options for the future of this service delivery. The following is a brief summary of the recent history of these services. 2001- Neighborhood Empowerment Program (NEP) On January 16, 2001, City Council established the NEP for the purpose of promoting long term, public benefit to neighborhoods, establishing community pride, promoting maintenance and enhancement of neighborhoods, improving public safety, increasing property values, preserving and enhancing the environment and promoting public health, welfare and safety. As a facet of the NEP, the Community Development Department (then a part of Economic Development) developed and maintained a registry of neighborhood groups for the purpose of enhancing the city's ability to inform and involve citizens regarding their community. In FY 2000-O1, $50,000 was designated as matching funds for neighborhood projects, to be reviewed and approved by a NEP committee of neighborhood city staff representatives. Current funding for this program has decreased to $5,000. After funding levels and project requests declined, this committee was not reappointed by Council. 2002/2003 -City Organization and Goals In the fall of 2002, staff from Parks and Recreation, Planning, Engineering, Finance, Community Development, Police, Fire, Economic Development, City Managers Office, Legal, Keep Denton Beautiful and Utility Administration established a neighborhood service response plan (Exhibit 1). On March 3, 2003, a focus group of neighborhood representatives was held to provide feedback to staff on the response plan. As a result of that meeting the Denton Neighborhood Alliance submitted a Proposed Neighborhood Program (Exhibit 4). In response, in June 2003, the City Manager designated Michelle Cunningham in Economic Development as the single point of contact for neighborhoods. The City of Denton provided information on services to residents and neighborhoods on its website entitled "Neighborhood Services", that included: - Interactive Mapping - Citizen Participation Information - City Contacts & Speakers' Bureau for Neighborhoods - Classes for Neighbors - Neighborhood Safety The City also provided Resource Directory, and continued providing limited matching NEP funds at $5,000 per year. Through FY 2004-05, Economic Development had oversight of this area and served as the primary contact for residents and neighborhood associations with local government. Neighborhood Services in Other Communities: On February 7, 2005, City Council received a report from Darlene Mullenweg, a local realtor and former resident of Richardson, Texas. David Morgan, Assistant City Manager of Community Services with the City of Richardson presented information on strategies that the City of Richardson was using to re-develop its neighborhoods. As stated in the minutes from that Council meeting (Exhibit 5), Mr. Morgan communicated that to implement its Neighborhood Vitality and Integrity Strategy the City of Richardson had created a Neighborhood Services Division. The new Division served as the center of the new Neighborhood Vitality and Integrity Strategy by incorporating code enforcement, neighborhood enhancement strategies, and neighborhood relations efforts. On November 16, 2005, City Council members and staff visited the City of Farmers Branch and the City of Richardson to review their Neighborhood Services programs. The City of Farmers Branch provided an overview of their Neighborhood Renaissance Program and a walking tour of the Branch Crossing neighborhood development. The City of Richardson provided an overview of their Neighborhood Vitality and Integrity Strategy program. Attached for your information are the handouts provided during those tours (Exhibit 6). Denton Neighborhood Alliance (DNA) Some cities, such as the City of Fort Worth have a very formal neighborhood governance structure in place that interacts on a regular basis with city government. Although it does not serve as that formal structure, the Denton Neighborhood Alliance provides a network and resource to a number of Denton neighborhoods. The Denton Neighborhood Alliance, founded in 2002, is an organization that serves as an informational resource to neighborhoods. DNA acts as a repository for the collective experiences of neighborhoods for the benefit of other neighborhoods. An example is the vast amount of knowledge gained by neighborhoods that have worked on a zoning case that can then be shared with other neighborhoods. DNA's largest annual activity is the hosting of the Annual Candidates' Forum, anon-partisan neighborhood forum that offers candidates the opportunity to present information to the citizenry during elections. Currently, the DNA does not have an official program to assist neighborhoods with the startup of neighborhood associations, or the provision of ongoing training. The DNA offers other helpful information on www.dentonneighborhoods.org. DNA has approximately 200+ individuals on their mailing list, and becomes known to neighborhoods through word of mouth, and the televised Annual Candidate's Forum. Current Structure: On October 1, 2005, Neighborhood Services was moved under the management of the Director of Parks and Recreation. The Neighborhood Services Division is not a subset of the Parks and Recreation Department, but an independent division that partners and interacts with a number of other departments and divisions within the City. The division includes the basic responsibilities as existed under Economic Development with the addition of Keep Denton Beautiful, Community Development and Code Enforcement. The purpose of combining these functions under one management area was to begin to more effectively coordinate the efforts of these four areas in relation with neighborhoods. The Future of Neighborhood Services As many other cities experience and as identified in 2002 by both the Denton Neighborhood Alliance and city staff, Denton continues to face a number of issues related to new and aging neighborhoods. As the population continues to grow, this is one policy area of vital concern that will require defined direction. Staff has identified a number of issues along with potential functions for the Neighborhood Services Division. The following functions are in concert with direction staff has followed since 2002 and similar in many ways to the City of Richardson model (Exhibit 7). These functions are not formally adopted and are presented here for Council discussion and direction. Potential Functions: • Provide a structure and framework for neighborhoods to remain/become safe, strong, stable and attractive places. • Organize and form associations to more effectively deal with issues impacting the stability of their neighborhoods. • Identify and resolve neighborhood issues in a coordinated and effective way. • Serve as a liaison between neighborhoods and city government. • Educate and encourage interaction of neighborhoods with the City. The structure of Neighborhood Services lends itself to three areas: one dealing with organizing and bringing a neighborhood group together, second dealing with the logistics of improving the physical conditions of a neighborhood, and third recognizing the economic impact of a neighborhood's health on the entire community. Although no structure has been set, for the purpose of initiating discussion, staff suggests these three categories: • Neighborhood Relations • Neighborhood Vitality • Community Relations Neighborhood Relations - Or~anizin~ & brin~in~ a neighborhood group together Issues: • As issues arise within a neighborhood or on a citywide basis, there is no organized structure for neighborhoods to effectively network or interact with local government. • There is no official listing of neighborhood and/or homeowner associations. The Neighborhood Services Division maintains a current list of 86 contacts from around the community that may or may or may not represent a defined and/or organized neighborhood area. • There is a general lack of information on laws and ordinances. Initiatives: In Richardson, Neighborhood Relations initiatives include: • Meetings between city officials and HOA meetings • Providing a staff liaison to HOA's • Email updates on code activities in neighborhoods • Neighborhood Association Development Program • Leadership workshops • Articles /Tip-Sheets Potential Initiatives for Denton: • Facilitate the formation and/or stabilization of Neighborhood Associations (NA) & Home Owner Associations (HOA's) • Establish criteria for registering NA & HOA • Provide opportunities to share information and training with neighborhoods Internal Collaboration: • Police -Crime Prevention Training • Library Services -Information & Education • Public Information Office • Denton Municipal Electric -Energy Audits & Plus One Progam • Fire -Fire Prevention & Safety Neighborhood Vitality - improving the physical conditions of a neighborhood Issues: • Public health & safety • Substandard housing • Declining property values Initiatives: In Richardson, Neighborhood Vitality initiatives included: • Code Enforcement • Volunteer Assistance Program • Neighborhood Assessments Initiatives for Denton: • City Council initiated the development of a stakeholders committee that will assess issues and propose potential solutions. • Enhancement of Code Enforcement operations with the addition of two code enforcement officers and funding for a property assessment survey are proposed for funding in the FY 2006-07 budget. Internal Collaboration: • Community Development -Low & Moderate Income Funding for Housing • Keep Denton Beautiful - Neighborwoods, Litter Abatement, Beautification Projects • Parks and Recreation Department- Neighborhood Park Development • Planning & Development -Small Area Planning • Code Enforcement & Building Inspection • Environmental Court • Police Department -Environmental Crimes & Illegal Dumping • Animal Control Community Relations - reco~nizin~ the economic impact of a neighborhood's health on the entire community Issues: • Stabilizing and improving property values that impact economic viability of businesses. Initiatives for Denton: • Identify community partnerships to support the issues impacting the stability of economic investments. • Serve as a liaison between agencies and organizations and city government. • Educate and encourage interaction of neighborhoods, agencies, organizations and the city. Internal Collaboration: • Economic Development • Public Information Office • Code Enforcement • Community Development • Keep Denton Beautiful OPTIONS 1. Continue with currently development of Neighborhood Services initiatives. 2. With direction from council, provide further policy analysis of Neighborhood Services functions within the City organization structure. EXHIBITS 1. Neighborhood Service Response Plan 2. Memo to Council October 16, 2002 3. Memo to Council February 21, 2003 4. DNA Proposed Neighborhood Program - 4/30/03 5. February 7, 2005 City Council Minutes 6. City of Richardson Model & Tour Handouts Respectfully submitted: x;.: f1 rF . .i. 5 ~ . i .~t f { S . Y.'.'.'.' • t Janet Fitzgerald, Director Parks and Recreation Department ~~xed ~exgh~orh~~d ~r~xce~ e~p~~se - lifter ~Vle~~txn ~pten~her 0~~ - ~II~I~ T~T~NIENT ~'o be a com.r~~ity of ~reighbor~oods flta~ are sa, fe, atfra~five, provide a seise o,~ ide~fity, aid fosfer o desire fo stay aid brow i~ ~e~fo~t. I~~ T~T~14I~NT ~'acilifafe aid s~pporf sfro~~ ~ei~bor~ood associafio~s ~~af promote s~sfai~ted property valves aid ~ei~borlZOOd c~aracfery ~~UT~I Sel, f-susfai~i~ ~eiglrbor~ood ora~i~afio~s firaf take res~~~sibility for ~~e qualify o~`Ii e i~ f~eir ~ei~~~or~oods. dell i~for~red twa-way co~r~u~ricatio~ firaf isproactive, Hof react~`ve. ,3. ei~~bor~aod associa~`o~s ~c~vepart~ers~aps wife fie ify fiat ~eip . , achieve a ~i~ quality of l~~e i~t f~eir ~eig~bor~oods# Sfrafeies • Assr'sf citr~e~s wife how fo develop a susfai~ra~le ueig~bor~ood orga~ti~afio~. • ~courae two-way communication f~rouglr Ieaders~~p develapeu~ • ~ravide coutiuuedpart~ers~~p resor~rces used a~ c~augi~ ~ei~borlrood needs. ~ict~'o~s - • ~reafe a fea~z of ~`i~y departrne~f represe~~at~`ves wlro acf as fie iuferface with ~eig~borl~aod ora~i~atia~s. * ~reafe a far~ral ~ei~~~or~ood liaison s~rr~cfure ~ process, • ~de~t~~y all ~`ty ~teig~or~ood services. ► develop a nei~bor~vad services program ~rrareti~gp~a~t. • create acrd ~zai~fain a car~preheusive Ir',sf of all associafio~. Exhibit 1 t r i~ .w i ' . r5 r ~~I i r t ~ ! ~ ~~.`11~iYfY~~ ~G~ 1 ~~r J ~JLH ~7 ~~~V ~ * ~~7~~~ ~~~'~L LI4I ~ ~1~1J1 ~~~V~ i I T~: ayar and Members of the pity ~ouncii Beth willia~ns, I]irector oflVianagement Public I~for~nation ~AT~: October 1, ~4~ ~~BJ~T: Neighborhood er~ices ~rti neighborhoods were identified as the building blocks of the city in your neighborhood preservatrou ~trateglc planning sesslan held ~ Tune. Increasing communication and papering Frith neighborhood groups provide apportu~i~ies to influence involvement and encourage citizen participation in the local goverment process. To that end, a cross~departrriental team has been farmed to explore the city's r~ie regarding interaction and partnerships with neighborhood associations. The team has developed a vision statement along with a mission statement and identified successful outcomes, The strategies far successfully accoplisbing the mission and the specY~ic actions necessary for achievement are cuxrently being consolidated into ~ draft plan Dace the team has completed the draft plan, a focus group meeting will be held with community stakeholders to ascertain if we axe on target with the direction of our efforts and to identify any additional needs. feedback received ~ the focus group wi11 be integrated into the draft plan and then brought forth to au~ac~1, sustainable neighborhoods that build upon and create distctive assets and character will continue to evolve as Denton matures. The city's par~ership with neighborhood groups to address changes taking place in our community gill enhance our ability to plan for future. eve look forward to sharing the plan with you. Please let us o i~ you have any ~uestzons or concerns. "~]e~~ce~ed ~o ~r~a1~~y Service" www. cityofder~~o~, corn . . Exhibit 2 CITE 1]ENT~N CITY ~~JNCI~ MTITE February 7, After determining that a quarurn was present, the City Cauz~cil convened in ~ special Ca11ed Meeting an Monday, February 2~0 at 1 l ~34 a.m. in the Council waarl~ hessian ~aorn at City Ha11. PRINT: Mayor Brock; Mayor Pro Tem McNeill; Council Members ~arnp, Montgomery, Mulray, Tha~nson AB~NT: Council Member ~edrnon The Council received a ~repart, held a discussion and gave staff dixectian ~`egardi~g re- development and enhancement ofneighborboads. Mike Conduf~ City Manager, introduced Darlene Muilenweg, a local realtor. Ms. Mnllenweg stated that she was a former resident of :~icl~ardson where she had been involved in e ncigh~orhaad programs _ coordinated through the city. the shared kith the council her experience regarding the advantages of acti~re neighborhaad groups} Mullenweg introduced David Morgan, Assistant City Manager of Community services an Richardson. Morgan stated that Richardson had started re-development of neighborhoods by using code enforcement, City Council~Hvmeowners Association Presidents meetings once a month, a Neighborhood vitality Program, Matching fund Beautification Program, and a oluuteer Assistance Program. He stated that neighborhoods go thru life cycles. They can grow aid they can- decline based on the a.ge of homes, maintenance, and other factors. residents sometimes do not have the financial rnea~as or rosy have physical Iirnitations and could not maintain their property. Through the alunteer Assistance Program the City had partnered v olmateers to help these residents. The City had also developed a sidewalk program and fixed thousands afsidewalks~ The Ccunc~, had adopted a Neighborhood vitality anal Integrity S~ategy that included a com.itraent to providing strong, progressive code enforcement; neighbarhaod relatxans efforts to support neighborhaad groups and leaders and ~ promote neighborhoods i~ the marketplace; and neighborhood enhancement initiatives to help neighborhoods better understand what~s working andwhat's not working and to implementneighbarhoodimprovement initiatives. Morgan stated that to implement the ~Teighborhoad ~itaiity ~ Integrity strategy the City had created a ~eighborhoad services division. The new division served as the center of the new Neighborhood vitality Integrity strategy by incorparati~g code enforcement, neighborhood enhancement s~ategies, and neighborhodd relatiar~ efforts. Code enforcement reported to the ~Teighbarhaad services Manager. They had eight cads en~'oreement a~icers far single family and commercial properties and cne building inspector fir . rrrulti-finally and rental properties. ~e stated that the pity had a~a inspection program that ~~°I of e rental properties in the city were registered far ~ ~8,4~0 proper~es, He stated the City used the International Property Maintenance Code standards. The Council had adopted new regulations for parking recreational vehicles in residential districts, garage enclosures, residential rental properties, hone occupancy, brush and bulky ite~. callec~on, and holding garage sales. . Exhibit 5 pity o~~e~ton its ~uncil Minutes Feb~uar,~ 2~a5 . Page ~ Dorgan ,sated that eighb~rhaad Re~atiar~~ strategies ~eze a crucial ~redient far a health~r neighb~rh~~d, residents had to ~v~r~t~gether to resolve problems. ~elghbarhaad e~i~ncement s~ategies mere measures designed to ~neaurae residents to irnpro~e their homes ar~d nei~hbarhaad be~rand r.~imurzx standards. 2, 't`he auncil vas to ha,~e reeel~ed a report, held a discussion and have staff` direction ~ance~ing regulating extended s~ ~acilitles. due to e canstrairits, this its was not eonsidered~ kith no further ~OUSiness, the meeting vas adjourned at l p.m. ~YOR ~ ~F ~EI~'~'~N, TEAS ~A ]~I~~~ IT4~ ~F I~EI~'~'~, 'Y`EA ~~f~ 1ty of R~chardon - - N~igh~orhoo~ ~r~ice Di~iio~ Thy Tr~d~tio~~~ I~~~ro~~h= ~ History Of ~ro~ct~~e ~digh~orhood ~nitiati~ bode Enforcement ~ . ~ ~lty ounCil ~ I~omeo~ners Association Presidents Meetings neighborhood 1litality Program ~ . • Matching Fund BeautitECat~on Program - . Voiunteer Assistance Program changing ~d~igh~orhovd ~ - ~ . • neighborhoods have iife cycles in Which they peak and decline based on the age of homes and infrastructure, maintenance and other related factors Depending upon the assets and v~eaknesses of each neighborhood, the life cycle can look very . different. . - - ~ l~~r A~~roachr r~~ting Ne~gh~orhood ~f hoi~~ ~ . All neighborhoods are unique, possessing certain assets; challenges and opportunities grounded in the~neighborhood's history and current standing. ~ . • neighborhoods should bethought of as existing ~rithin a~ competitive marketplace consequently in ~rhi~ch current residents and regional ne.vucomers make choices about ~rhere to live. ~ ~ . A healthy neighborhood is a place v~here it makes economic sense for people to . invest their time, money and energy and v~here neighbors manage change succe.ssf~liyt - • uccessful~ neighborhood vitality and integrity planning begins accordingly v~ith - - ~~nderstar~ding v~hat's corking and v~hat's not in a neighborhood-and results in strategies that reinforce assets, address challenges and take advantage of opportunities - Thy l~~Rgh~orhood 11it~~ity Ir~t~grit~r trat~gy the Richardson pity ~out~cil adopted a comprehensivef multifaceted ~veig}~borhboo~ Vi~a~~~y ~ ~r~~eg~i~y ~ra~egy that includes. A steadfast commitment to providing strong, progressive code enforcement, . neighborhood relations efforts to support neighborhood groups and leaders~and topromote neighborhoods in the~.marketplace and - . . 3~ neighborhood enhancement initiatives to help neighborhoods better - understand v~ha-t's corking and v~rhat's~ not v~orking and to implement neighborhood irnprovement~initiatives~ ~ . To implement this strategy, the pity created a- nee division entitled ~veig~bor~oo~ services, The ~veigf~borf~ooo~ erv~ce~ ~ivi~i~n serves as the center of the nee . 1Veigf~~~rf~oo~ ~Vi~li~y end ~n~egri~y ~ra~egy by incorporating code enforcementf neighborhood enhancement strategies, and neighborhood relations efforts - - ~ Exhibit 6 - ~ icy of Richardson - ~ N~~~hborhovd rvic~s Div~s~on i~ern~ Nei hborhnnd ante rx ~nit~~tiv~s . Recrea~ion~1 Vehicles ~ . Adopted new parking standards for recreational vehicles in residential districts that prohibits motor homes, travel trailers, boats, trailers and other similar equipment to~be parked on vacant or unimproved property or in the front yard and~side yard or corner ' 1ots~ and requires t-he carne to be screened from the street if parked in a side or rear - _Rerr~a~ Pe is~ra~ion Pro rg a ~ ~ . Adopted new standards that require all.,rental property.ownrs to register. single-family . duple, and townhouse properties, `rho program compels landlords to comply with minimum property standards and offers additional benefits and ,protections to tenants, ~egistratlon~ and all inspection services is provided at no cyst to property owners, - ra~fr'~r Ordnance ar~dA~a~er~~nt Pro rarn Adopted ne~u regulations that clearly defr~e graffiti as well as outlines~consequences for perpetrators and residents that fail to abate violations in a timely rnanner~ Also adopted a graffiti abatement program that provides assistance to residents and business owners that have been victirr~i~ed by quickly removing graffiti at no cost to the r~sid~nt~business~ ownerr Cara e ~nc~oure~ Adopted. new standards that require homeowners wh-o convert a garage to adhere-to certain b~uildir~g rr~aterial and .aesthetic requirements and to replace the converted garage - with a new garager `The new previsions promote parking availability, rnaantair~ home values by preserving the garage element, and improve the overall quality and aesthetic value of conversions. , doe O~c~r~arr~~ ~~ndards Adopted new -borne occupancy standards based on minimum areal requirements for , bedrooms to ensure recogr~i~ed health end safety standards ire met in ~~eep~ng reams. Adapted additional home occupancy standards based on minimum area requirements for living and dining rooms to ensure ,recognized health and safety standards are met in common areasw `rho nee pro~ris~ons significantly reduce the likelihood of overcrowding, which can have a destructive effect! on a neighborhood if takes place ~n several horses on the same. block or in several units in the same apartment building, gush ~~rl ~~ern Cal~eo~~or~ Adopted new brush and bulky iterr~ collection standards that require resident to request collection service when an item is placed on the parkway far coliect~onx `rho new provisions address the~issue of residents placing items on the front parkway for collection but failing to request collection service in a timely manner thus leaving items in pubic view for more than a week until the nett special collection day. - arap a1e~ - Adopted new restrictions far holding garage sales, ~rhe ordlnance~~ v~hich codifies ~ longstanding policy, states that no more than three garage sales shall be conducted at the,same address in any cale~ndaryearr and that na resident shall conduct more than ~ . pity ~T ~i~~ards~n . Neig~i~orh~~d er~v~~e~ ~i~riio~ . three garage occasional sales Within a caier~daryear. the ordinance also states thatna more than three garage sales shall be conducted at the same apar~rnent or condominium complex v~ithin a calendar jr~ear, and said garage sale shall be sponsored by the ov~ner, the management company, or the condominium association of the complex, ~~~er ~r~i~f~~ive - 1~ fired senior bode-~nforcernent officer and bode enforcement specialist Instituted regular early morning, evening and v~eekend inspections. Nevw Nei h ~rho~~ ~e~ateons ~nttiative~ -1 ei ~bor#~ood Awarer~e~s ~ ~mai~ ~1 d~~e Pro ram ~ . Neighborhood groups that registerfor the program recej~e an email update every too peeks detaiEing code enforcement activity In their neighborhood, Neighborhood services has e~perEenced considerably fever citizen complaints in areas participating rn thei - program. ~ . e~ 1~e~ ~bor~ood Associa~iori Deve~o~mer~~ Program Provide potential leaders interested in establishing a neighborhood association pith, the resources and support needed to focus this desire and interest, tafi= corks v~ith . . - potential leaders to develop neighborhood associations in areas not~currently represented by a formal group by helping these residents establish a core group, . providing valuable inforrn~tion and services, and providing much needed resources in the early stages of. the group's formation* ~fe~ #~bor~rood Le~ders~i UVorl~s~o ~ -l~orkshops focus on supporting established neighborhood associations by providing re uia~ leadership development training opportunities* v~or~cshops.have tentatively been g scheduled for the spring, summer and fall the spring and fall Workshops gill include a~ .general curriculums including presentations from a city official l staff, a community partner and a neighborhood leader l~he ~urnrner Workshop gill be more specialized and focus on neighborhood association management techniques and 1'best ~practices~`, 1Vew Nei hborho~d Enhancement ~n~tiati~re~ 1Uei #~bor~ood A,s~essr~~r~ ~ Pro rarr7 ~ ~ ~ - . . f~ei hborhood leaders and city staff v~ork together to identify v~hat's ~rorking aril v~hat`s 9 . .not ~rorking ire their neighborhood ~y partnering to gather neighborhood data, evaluate neighborhood standards, track neighborhood trends over time, and develop and i~nplerr~ent neighborhood ir~proverr~ent Initiatives, 1"he purpose of the assessment process is to provide a forum for resident involvement in addressing neighborhood issues . . and thus encourage creative problem sof ving and a spirit of tear~~orE< bet~reen neighborhood leaders and city staff, ~ - i - _ i.. _ ' 3'` '..7- '4 - ~ 'r 'r\' ~-try k4' 1 r- - -~4 - iP t--a'.. ~1rr • ,n~. 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''}~,•~r~iL~'l au~~i.: r_~~~~:;y'~ w:5 - - ~~t:-'. y~':~-~r~"^r~ A' A~NDA IN~R~VIATI~N SHEET .~NDA DAT~:.Augut 7, ~~4G DE~ARTIV.~NT: Eegai ~1VIIDYIAIVI; Edwin M, n~der, pity Attorney S~TBJET: consider a Resolution of the pity auncil of e pity of Denton, Teas, regarding clarification and amendment of an escrow agreement between the City of Denton and Flow Health dare Foundation dated February 1, 1993; and providing an effective date, BAI~HI~NII: In 1993 the City, Flaw I~ealth dare Foundation, and First State dank of Texas entered Into an escrow agreement to secure certain lndenunty abhgatlans owed the City, arming out of potential claims from minor children mho mere patients o~ the hospital prior to the hospital closing. A copy of the escrow agreement is attached. The escrow agreement wi11 terminate on January ~aaS, which presumably is beyond the date of majority plus the applicable statute of limitations for all potential claimants. The escrow a~green~ent is ambiguous a to how to calculate the value of the escrowed Hate. The Foundation has calculated the amount of the escrowed note at its actual value {981,515} as opposed to its original face value of 2 million, and has concluded that the actual escrow should be this amount plus the original cash escrow amount of 370,OQ0 ~1,351,g15~. See copy of report prepared by Anderson, Spector Company, at page S. The Hate has been paid off and the current principal balance of the escrow is approximately $~.l m1111on. The escrow agent has recently questioned that the escrow has fallen below the face value of the note plus the original ~7a,aaa cash amount ~~,~7a,0aa}. The Foundation has asked that the City authorise the release of the escrow above 2 million. fir, dill Giese, a representative of the Foundation will be present at your meeting to arxsw'er questions. ~PTY~NS: City Council can approve the resolution as written, approve it with modifications, or decline to approve it. REDMIVI~NDATIDI~: Staff recommends approval. respectfully subrnttted: Edwin N~. Snyder City Attorney ~:I~~r Uocurnent~IMisce~~aneous1061AI~ Flow Escrow Agreement 0~~70.doc  Lm I f 'f ~ + ~ ~ 5 y y ~iCRM~I~T $Y AND A1~CN~ ITS DEN`1~oN ~ FOw HFI,T~iC~ ~'~~N~~T~O INS. Ali ART STATE BATS 0~ T~~S T~11 ac~r~elYlent ~ e~ter~d Into ~ and ~1~loncJ Clt Denton ~ "City's ~ , "low ~iea].thcare Foundat,~on, former. ]mown a flow ~egiona~l edica~. Center ~ Inc, ~'~Flow" } , and ~ First State dank of '1`e~a s ~ ~r ~s ~r~W AC~ent" ~ ~ ~ f O l l ows ' ~ H~REAS ~ the ~,ty of Denton ~a ~ Cont~.nuln 11en In ~ ~ he assets kited ~e~ow by virtue of : that ~ ore certain Deed, 'gust dated ~Tanary la , 8 8 , executed h F~.ow for y the benefit of the City, which Deed of Trust is recorded in Vo~.ur~e - ~3~9, Page 481 of . the ~ffioil deal Praert ecvrds o Denton Co ' Y unty, Tease that one certain Amended and Restated Securit A reeent executed on the 15th day of ~'ehruary, 1588 by Flow in favor of the pity; and that one certain Plan of ~i~uidation, a a~ended ~ end as confirmed by order ~ Confirming flan of Liquidation of Flow egiona~. l~~d~.cal ~ 1~Plan~' } , dated - lea 1~ - 1990 In base Numbe ~ 8~-409 in the United totes ~anru tc Court for the ~ pastern iy District o~ Teaa, styled In Re: Flow Re Tonal Medical Center . ~ ~ ~ Inc, ; and ~ ~ ~ ~ : - - . • ~ ~ = . - w~iE~tLA, the City eirou of perfecting its lien in the - ~ . ~ ~ assets described below h ~.cin the assts with t e Y ~ ~ h Escrow agent under the terms of this Aa~reement. escrow ~gree~ent, Pale 1  Lm y I F r s M ~GNn 1~5 the da~~ o~ ~ 19~ . FI~~W H~ALTI~~AR~ ~TD~~~3 ~ I $y : w r • ■ ' ; i~ iii ti. 1 ~ y4 . t ~ ♦l+ - ' ' ~ - ' ~ ~ 1 ~ ~ ~ _ , ~ ~ _ F ♦ a r • r -5.  Lm Y I 1 ~ ~ F ~I ~N ~ 1 ' the use cf an escr~~t agreement as that ~tached hereto as Exhibit rMA'~ , use n such n escrow ac~reen~er~t the city xr~a perfect its lien end be ae~uately px~o~ected. ,HDT~cE TD PARTIES TN INTEREST - ~~I~P~iI~II~aP~l1~\I Y ~!/i iii I~P~IY~W~i IP ~ NO HEARING WALL BE ~DND~~TED 0 THIS 4TI~N UNLESS A 3~R~TTEN D~J`ECTIDN 4R RE~~TEST FDR HEARING I5 FILED KITH THE ~JNITED STATES BANUPTY ~LERE~ ~1Y1 W. FERGUSDN, THIRD ~'I~DR, TYLERr `~'E~AS ?702 ~ 'WITHIN TWENTY ~ ~ D } DAYS FRQH THE DATE ~F THIS ~lDTI~N ~ UNLESS THE . . cOURT r ~3A P~NTE ~ DR UPON TIMELY APPLICAT~GN ~F PARTY IN INTEREST, HGRTENS EMENDS THE TAME FxLrN~ uH ~ECTr~N rv REJEST. ~ - ~ • IF ND DB~TECTIDN OR REc~JEST FDR HEARING 1S TIMELY FLED", THE M~TI~N SHALL BE DEEMED UNGPPGED AND THE ~DURT MAY ENTER:, AN=DRDER~ G~ANTTN~ THE RELIEF SDUHT . THE cGCTT RE~ER'~TE THE RIGHT T~ SET ; ANY MATTER ~'~R HEARING. - ~:k;,~ - HEREFGRE, ~RE~f~E c~NIDERED, the ~r~ys that ~t e - granted a~equ~.te protec~ivn, ar~~, far such other ar~d further rel,~e~ - to wh~.ch it be entitled. - Res~ect~ull~ submYitted, _ f . - HENDER4 RYANT & WOLFS - ~ ~ 1~ 3 ~iox~th croc~ett street - herman# Teas 7~91--0~U ~~1~} 893-9~~~ T. cot Sm~~h _ - ~tte far Number ~.8 ~ 8 8 ~ D ~ - ~l0~ ~ Q~ ~Y C I T~' DF ~El~~O~! SECURES CREW IT~~ FOR ADE~I~A~E ~R~TEC~IO~ OF SECURITY IkTERET ...PAGE 3 ~ ° ~ ~ ~ " r ESCROW AGREEMENT This agreement is entered into by and among the City o f Denton ~ ~'City'~ ~ , the Flow Reg~rona~. Medical Center, Inc. ~ ~~Flow" } , and ~'f Escrow Aent'# ~ on this the ~ day of r 191. HEREA, the ~a~ty has a cont~.nuing lien in the assets listed - be~,ow -by ~rirtue of : that one certain deed of Trust dated ~ar~uary 15, ~.988~ executed by Flow for the benefit of the City, wh~.ch deed of Trust iYs recorded in Vo~,ume 0, Page 4~1 of the Official. Real Property Records of Benton bounty, Texas; that one certain A~ended end gestated Security Agreement executed on the 19th day of. February, 1~8~ by Flow in favor of the City; and that one certain Plan of Liquidationf as amended, and as conf~.rmed by order Confirming Plan of Liquidation of Fxow Regional Medical Oenter, inc., dated May 1~, ~.99o in Case Number 584099 in the united States anruptcy Court for the Eastern Dista~.t of Teas styled In Re: Flog Regional Medical Center 1nC.; and EREA the City is desirous of perfecting its lien in the assets described below by placing the assets pith the Escrow Agent under the terms of this agreex~ent. Nod, THEREFORE, it ~s agreed follows: 1. The fol].ow~.n - assets are tendered to the Escrow Agent pursuant to the terms of th a.s Agreement ~ and shall be referred to • herein as the ~'Escr-owed -Fundy": ~ • -A. That one certain promissory note ire the original principal sum of ~ r D0~ ~ ooD executed on Y IIIr~~ ECR4w AGREEMENT PAGE 1 t Y - '~cr~~ ~ } + ' ~1 ~ _ 4 . Ar~y notices to be gent, ~ or required t~ e gent ar given under th~.~ agreement shall be sent to the addre~ of the ~art.~e~ hereto, ~ follo~s: ITS; pity ~Ianagex~ City of ~entan N~uni.ci~a3. ~ua.lding Denton, Teas ?~D~. pity Attorney City ~ o ~ Denton Municipal ~u~.~.ding - Dentvr~ , Texa 7 ~ 2 ~ 1 - ~F~~ Sennett Dirk, President •i. i r ~ Mw~~nnnr~rr~r.~ T~V~ AV~iIT. . . - Flew agrees to pay any and ail fees or costs charged by the escrow Agent in conneot~.on with this Agreement , Escrow Agent agrees that and cash funds held pursuant to thz agreement which may be placed in ~i.nar~cial i~st~.tu.tions, will be placed a.n such a manner as to ins~~e that the funds are insured by a federal agency, such a the Federal Deposit Insurance Agency - or are protected fror~ the insa~.~ency any such instituti,o~ by a ~~.edge of that institut~.on ~ s securit~.es. - The Escrow Agent half. hie no responsibility exe~t~ for the safe}~eeing and de~.i~rery of the Es~rawed Fud in accordance with this Agreement. The Esoraw Agent shall not be liable fer any act done or omitted~to be dons under this Agree~ent or ~.n connectian with the amounts depositedf ~cept as ~ result of Escrow Agents gross neg~.~.gence or willful misconduct, If any ES AREEI~EI~T PACE 3  Lm ,S # ` ~ t ! ~ 1 / 41 i. # 1+ t 4 Y~~i ~~`l~V EF~~ SENT 1 ri r r •-0 M ti i t t I k r r ~~o~ ~~l~h Cage ~'~u~d~~on, ~n~. ~~~an~f a~ ~~t~ueut~ ~n~ ~u~i~or~' Report ep~e~ber h ~ f ti 1 ti V ~ i ~1 l~ i J ~~yy~1l11 yS+1] f~~.f~yy11 }1 rf ~ J.A+~~~~~A+~~~~ ~~VL+~~~ ~~4.'iti .sr.....r.,.,.,~►►fr■.r.„i♦►.~rr a+r...r~,M.4r+....+. r.,.,, .,.■a. rr4►. •e,,, r,... 3 l iFFY~1~1~.~..4V Vl i Jii4'i .4 VA.+1Vi1 r....ff+.r~a.•.rr.~►!Y.•i.~r.r..... i,a„i ►~....•r. ~+i.•►f .J i ~a~~men~ 1J~~Vi T~v1V~ ..+a.s..•..•..►r►a►...r•.•.,.►,.•....•.a,.*.ra..f«rr►+►►►. ra aa■•1•a■■ral ■a... ~te~.e~~ 5+~ i i~ *r ■r~..~~i►k►#~.f.■.,,►►l►r}.f,s...s.,►.rags.ra.~.•.■....■••r..r~.■...■.~.■• ~ V I i I~yTI 1};/'11 '[1iry~' y1~►1 [A, fff777 f~y1 y1i;~1; 1~Y~ 1 L11 .k ~iiV~ ~Li~~li.i~J.l~ ....•,.i~4►4Ff►r.....F..►iar••r...f.fa►i••.ra•...•~a•ri.ia f■•.... ~~.lY f.i.,i,►  ' E ~T ~TIF~~D PUBLIC; ACC~~iT,~t~TS Telephone Sb~-~5~~ ~ Fay ~~40~ 3$?~69~~3 E. c~~~n~~=, ~it~ ~ Dez~~~n, T'~xas ~n~a~~~~60 . ~ndersan. P1~ ~-ail: cp~a~nder~onspe~to~,~om Da~i~ Specror,l~3, CPA ~~s~in 1. Lvor~, Garv aline, CPA Sandra ~'earce. C~'A Ta ~ Board of Tr~ztees F'ia~~~ ~eaith Care ~aunda~an. ~~.c. ~ . ~e~~tan, Tee ~e audited the aecampan~~~. state.er~t of f~nanc~al po~i~io~ of F~av~~ eait~. ~ ~~~~d~-~~n. ~~c. ~ on~ra~~t or~ani~at~an} of epteber 3~; X005. ~ the reiate~ ~ttement~ of aeti~~xtie a~~d ~ ~ ash far the ~~cai dear den ended. Thee ~nancia~ ~ta~eer~ts are the respons~h~iit~ of the ~rani~ti~u' mana~emer~t. ~ resp~n~~hiiit~~ is to e~~pres an-~p~.nion o~ n~~ ~tat~m e~~s , ~a~ed an a`~r au ~t, e aonductad ~ audit ccerdance nth ~.udit~n, ~tandard~ ~enera~i~~ accepted in the ~~ited tate~ ~ f e~.ea. Thane standard requ~are that ~v~ p}are ar~.d perfarrn the audit to a~~ain reasonable asuranee about ~rhet~ier ~ina~c~a~ ~taten~er~ts are free of n~ater~al ~~i~staten~e~~t. An audit ~.cludes ea~~in~n~. a test basis, e~Jidence suppor~in~ the a~uounts ar~d disciosures ~ the ~'anciai statements. n audit also i~ciudes assess. the account~~~ principles used an:d signifrcan~ esti~uates made b~- ~nan~,~er~aent, as evai~ati e a~er.l ~~aancia~ ~taterne~t p~esetatian. + e beiie~e that our audit ro~fi.de~ p reas~na~ie bass far our apin~or~. a~' apon~ the fznancia~ ~taternents refereed to abase present fatr~~i, in a~i ~.ater~a~ respeet~, the f~.anc~a~ ~~os~tian of ~ia~T ~ea~th Care ~'oundat~an; inc., as of September and the chanae~ in its ~e~ assets ~.nd its cash os for tb.e fzsca~ dear then ended ~ conformit~~ nth aceountin~ princi ies . p ~enerali~~ accepted the T~ru~ed Late of ner~ca. frf~f ~B~hT. P~CTR C~l~~ ~'anuar~~ ~3, ~00~ ' 'fhe CPA. Nsver U~~ere&t€mat2 T}',~ Vaiue ~ h~embBrS AIC~A at~d'~$C~A  LL ~EAET~ F~t~NATI~N, taten~ent ~f ~'~nanc~a~ Position ept~~nber AT Crrr~.t Asset: Cash Cash ~~~.va~ents ~Not~s ~ ~ 99,~S Accour~t~ ~eceY~ab~e ~.et ~f A~lvar~~e for Bad debt Note } ~ Tatal C.xent Assts ~,7~$ ~~esnents ~~-Teri: Ce~t~~cates o~']~epas~t ~Note~ ~ BS~,~~~ . ~ ends Nate Notes 3~ ~ ~ ~4 ~ ~n~etn~.ent ~~~rities Notes ~ ~,~~~,~82 Total vestments 4,~3,? 9~ Teta~ Assets ~ 2 ~ ~~AB~LYT}E NET AET Current L~ah~~.ties wants Pa~~e ~ 58S T~ta~ Current ~~a~b~~~t~es ~ ~ ~ 8 Total ~ia~~~~ties ~ ~,~5 Net Assets ~arestr~eted x,949, ~ Te~nporarxly R.estr~cted Note 3~ ~ w~ 5 ~ ~ ~ Total Net Assets Tatar L~abi~~tie Net Assets ~ 4 ~ 3 The accon~pany~n. notes are an integral p of these £mancial statements. ~ ~  _ , HET ~ F~UN~AT~~N, tate~err~ a~ ~cti~'it~e~ For tie Fi~~a1 dear ended e~te~~er 3~,-~2D45 Te~~arari~~ ~nre~~rie~ed Restria~ed Tata1 revenue ~x~s: In~estrnn~ come: . tere ~ncoe 1 a8,~9 ~ $ ~ - ~ 45,39 Tr~.tere~~ Incame ~ave~er~t ~biia~ior~s 14,57 - ~ 4,~7 ~i~i~en~ ~noorne 44,3 ~ 4~,3 ~ ~~her I~came ~s a~ ~eb~ ~eeove ~5 - G5 ai o~ e of ~~reier~t ecitie 44,44 44,494 Unreali~e~ voiding ~ on ve~tmants Note 14~ - ---1 ~~,76 Tod. ~e~er~ue airs 344,715 ~ - 344,7 ~ 5 E~ eases ~a~e: ~rora~ er~ice; ~ragr~m ~ 9,275 - ~ 93 275 Toth. ~rograrn er~~ce~ 193,275 - ~ 93,275 i _ ~ u~~or~i ekes: ~ enera~ Acnir~ str~t~on 7, 8 ~ 9 - _ _ 7, S 3 9 Tatar u~~arting erviees 7,539 ~ .7,.539 Total ~~enes Losses 1 1 ~ 4 - 1,1 ~ 4 ~ncrea~e i~ Net assets 143,41 - 143,~~ Net Assets, Be~irllliri~ of~ear 2,55,49 ~ ~_,~,~_~,515 - 4,~57,~4 - Net Assets, End. of Year 49 ~ ~ ~ ~ ~ ~3-5 ~ #S 1 4 3 ~ 9 Tie acca~ar~~ir~ ~.otes ire an integral park o~.ese ia~acial statements. J ; L I FLT IT~I ~ ~'~~.ATION, I~C~ ttret Fiov~s For the Fiscal dear ~nd~d eptenxher 30,~~00 Cash Fiov~s from ~p~erating ~4ctivitie~ ~.e~en~e Collected: teret eoe 148,309 interest ~nca~e - Cro~~rnment ~li~ations - ~ ~4,~57 }i~~dend neome 40~3~4 Cash Collected for Bad ~eht eoover 445 Pa.ent for B~enses: Cash Paid to B~nploee ~ ~,45~~ . Ce~.eral Admi~stratl~e ~ 1,30} Cxrant Program. I S~ S7 Net Cash Used ~perat~ng ~ct~~~tie ~ ~,7 I ~ Cash Flogs from Ingesting ~c.ties Proeeed~ ~ron~ dale oflnvestment ecu~ties ~3,74~ Purchases of Ir~~etent ec~ties 3 15~} Net Cash Used by investing ,~cti~ities ~ 5~7,~~~} Cash Flows from Financing A.cti~r~ties Net Cash Used by Financing Acti~rities - ~ ~ ~ec~ease gash ~ 5~4,~47} Cash at Beginning ofYear Cash at of Year 5 Tie accon~~any~ng notes are an integral park of these financial statements. 5  4, ~ FLOC ~EA~T~ ASE ~~~A~N, ~N, Statement a~ dash Ala {~antin~ed~ ~`ar the ~isca~ `ear ended epte~n~e~ 4, ~e~oncil~at~on of ~n~ree i~ Net A~~et to Net ~h Jed her Oper~t~n ~Crt~~It~e: ~nc~eae in Net ~.~set~ ~~3>~~~ Ad~~stYnents to ~ec~n~iie change Net ~~~ets to Net ash ~~a~ide~ ~y Operating Aet~~~ties ~eea~ease Other Reeei~ahle 3 80 fain on ale ~f ~n~r~~tment ecur~.tie~ { 4~,4~~) ~n.creae in ants affable ~ ~,5 ~ S ~J~reali~ed ~al~.ing fain on ~nvestent~ 79~ Net Cash l~s~ b~ ~pe~atrn .Acti~~t~e~ ~ . The accon~pan~.g r~~tes ire an intea~ park a~#hese financial tate~.ents. ~lo~u ~ealt~ aye Foundation? In~r dates t4 Finan~ia~ taten~ents continued} September ~4D~ ~ ~F ~IF~~T .CST P~~~~~E ant~nued ~a~ic dash ~ uivaior~ts . For puxposes of the statement cash ov~s, cash equ~val~nts include u~restr~cted ~~e de asits ~ Y r . certifcates of deposit ~~f matty Tess than mon~hs~, and aid highly ~~~u~d debt instruments ariginai maturities oafth~ee months or iass. These assets axe valued at cost on the statement of inancia~ pas~t~on~ , . Functional Ailacation of ~ erases The cast afprovidin the vaxiau programs and supporting services has been sutmaxi~ed on a ~unct~anai bass ~.n e statement a~ act~vlt~es. ~ccordingiy, certain casts have been allacated anon the d su ortin se ~ prograr~.s an pp rvtces benefited. ~TB - ~TCTr~N ~N ~T A ET ~n February I9, X993, the ~ran~~ation and the pity o~'~]enton farm.ated a~a escxar a cement ~n f ~ ~ ` r V regards t4 e contingent security interest, which the ~~ty a~ Benton exercises over the assets resuitin isso~u~on o~`Fio ~ frarn the d ~osp~tai. i This agreement restricts the use of certain funds o~ the ~rani~atian, In accordance v~th the a een~ent l r ~ . . # * ~ ~ the ram.zatton ~s required to piace the oilong assets to a trust account nth the escra~ a ent First state Bank of Teas, nay kna~m as eiis Fargo Bank, $37~,~~~ cash or its euivalent~ including, but not limited to overnrnent obii atior~s. ~ pran~asory note ~ the original sum of ~,~~~~~~0 executed by otami I~os itZs afTes ~ r r . , r Inc, payah~e to the ~rga~.~at~on• The or~g~nal px~nc~pal mount of the loan at rese~.t value is ~ ~ f equal to 9S 1, 1 . Tlus Hate has since been paid a` and the proceeds mere used to urchase investments as allov~ed by the escra agreement, The tatl Temporarii restricted het assets is 1,~~ 1, ~ 5 ~37~x~~~ 9~ l,S ~ , s rnentianed. above, the te~nporari~y restricted net assets are heid in a trust account b wells Fax a . f i r Bank, end axe invested 1n a camb,at~on of a money market account, cr~..ctes of de osit band d ~nVest~.~ ~ . ~ ~ and notes, an rat secux~t~es. The escrav~ agreement xeferred to above im. ases restrictions s r • 'r a ~ . . F andlor l.~tattans on the ~rgan~a~.on s ab~l~ty to v~thdra ~'rorn the v~ells Fargo Trust ~ccaunt to the extent o~ the restricted amount noted above. The Bscxo Agent v~ill not release any or all of the principal acount off` tae Bscro~ed Funds until and unless: It is authored to do so by a written document executed by the then servin ~ IVlana er o~ tie g g  i~ ~lo~a ea~t~ dare F~undat~on, tnc. ' ~V~tes to Fina~eia~ statements ~~ontanued} septen~be~ 3 200 ~T ~ ~TI~TI~I~ 1~ET AF~T~Can~.nued~ qty, after being dull authorized b~ the pity council, and the President off' Flamm er the Pre ~ s~dent ~f any suceessQr ent~t~ to Flaw}; nr B. January I, 2D~S, at which time ~t nay ~elea~e all or art ofthe ~serov~ed ~ } . p ~ . ands t4 Floes, upon such t~ a~ Flav~ may direct, aid ~nthout necessity a~ obta~n~.g the perrnissio of the I ~ or . Flov~ procures the insurance described in the Plan. ~T~ 4 - ~~TI~NT ~TIl~~~~ Flov~ health dare Fau~dation, Inc., based on annual estates ~~~stn~ent Inc once, deter~r~es amounts that in tie following year ~rzll be available to grant as arards to o.e~ nan- raft or ani~ations ~ g that provide heath related services and that demonstrate ability to operate ef~cier~ti. ar~d eectivel . ~ y September ~~0~, the Flog health dare Foundatian~ tic. ~aard Trustees resolved to award to The People's li~.e ~ grant in the au~ount of $'~,o~D effective October ~~0~ payable ire uar~er~ ~ Y installments. NOTE 5 - PATIENT ~~I~NT ~EI~BLF FIo~ Hospital 'as clased September I ~7 and the patent accounts ~eeivable re resents the un aid . ~ ~ balar~ee ofpat~ent s chaxges that mere due when Floes PIasp~tal vas closed. A e tuber 2~~ 7 } tl~e totai balance ofpatient accounts receivable, 1 G,7DS, was deemed to be unco~iectible. ~T~ - O~I~T1~AT~~N ~F ~~IT The organization maintains cash balances and certificates of deposit at several f~nanci~. ~.nstltutions, Accounts at each institution are .cured by the Federal DepQSit insurance a oration to I a~ ~ P F 1 .4 r~'r,~ ~ ,ti._,~~~'_ _ .t;-~ L l r,~ ; ;r 4~ . i;;. .ti; .:,yk o; ~.c'. w.?' ~_I r ~ ~t ii:, r ' . ~r,~,'1:'.: ~ , `1h'j4 pl`~~~  :I~ur I~cume~tslso]z~tior~sl0GIF1ow Medical Escrow Agreement.doc PARRY ,1VIcN~ILL,IV~A,~R ATTPT: ,TEI~NIFER ALTS, QTY ~R~TARY BY: APPI~VED A T~ L~AL FARM; DIN M. ~~R, QTY ,~T ~Y: Page ~ of2  LM