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HomeMy WebLinkAboutJanuary 29, 2013 AgendaANNUAL PLANNING SESSION AGENDA CITY OF DENTON CITY COUNCIL January 29, 2013 After determining that a quonim is present, the City Council of the City of Denton, Texas will convene in an Annual Planning Session on Tuesday, January 29, 2013, at 8:30 a.m. in the Facilities Management Department Training Room at 869 S. Woodrow Lane, Denton, Texas at which the following will be considered: ITEMS FOR DISCUSSION: 1. Receive a report, hold a discussion, and give staff direction regarding code enforcement programs and practices. 2. Receive a report, hold a discussion, and give staff direction regarding the sign ordinance. Receive a report, hold a discussion, and give staff direction regarding future facility planning and space needs. 4. Receive a briefing on the City Ethics Policy and updates on State and Federal statutes. Receive a report, hold a discussion, and give staff direction regarding future capital improvement bond programs. 6. Receive a report, hold a discussion, and give staff direction regarding a possible citizen election to allow for the sale of gas and the marlceting plans associated with the approval of gas sales as it relates to the Combined Heat & Power Econonuc Development District (CHP-EDD). NOTE: The City Council reserves the right to adj ourn 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 linutation, Sections 551.071-551.086 of the Texas Open Meetings Act. Closed Meeting: A. Consultation with Attorneys — Under Texas Government Code Section 551.071. 1. Receive a report and hold a discussion with the city's attorneys regarding the City of Denton sign ordinance. CERTIFICATE I certify that the above notice of ineeting was posted on the bulletin board at the City hall of the City of Denton, Texas on the day of , 2013, at o'clocic. (a.m.)(p.m.) CITY SECRETARY NOTE: THE FACILITIES MANAGEMENT DEPARTMENT TRAINING ROOM IS ACCESSIBLE 1N ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL PROVIDE LANGUAGE 1NTERPRETERS FOR THE HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS 1N ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT (940) 349-8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1-800-RELAY-TX SO THAT A SIGN LANGUAGE 1NTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY'S OFFICE. AGENDA INFORMATION SHEET AGENDA DATE: January 29, 2013 DEPARTMENT: Planning and Development ACM: John Cabrales SUBJECT Receive a report, hold a discussion, and give staff direction regarding Code Enforcement programs and practices. BACKGROUND Beginning in 2002, the City Council began focusing on neighborhood revitalization, community aesthetics, and sustainable development in conjunction with conversations about the enforcement of codes. Since that time, the nuisance ordinance (now the Property Maintenance Code) has been reviewed and rewritten, additional officers have been hired, proactive progranlming has been established, and program funding has been increased. RECOMMENDATION Continue implementing a proactive Code Enforcement program in keeping with a national `best practices' approach, community expectations as reflected in the 2007 Leadership Denton Survey, and previous and recent actions by the City Council. PRIOR ACTION/REVIEW No prior action. FISCAL IMPACT No increased impact. EXHIBITS Proactive Code Enforcement Memorandum Chronology of Recent Code Enforcement Program Development "Up to Code" residential brochure (English and Spanish) Be a Good Neighbor Magnet Respectfully Submitted: ��C.`a.,�-�.��,_._ John Cabrales Assistant City Manager Prepared by: Lancine Bentley Zoning/Code Enforcement Division Manager MEMORANDUM DATE: November 1, 2012 TO: George Campbell City Manager FROM: Lancine Bentley Code Enforcement Manager SUBJECT: Proactive Code Enforcement In the last 20 �Tears, one of the most public efforts to improve the livabilit�T and general appearance of the Denton communit�T ���as the Council-created Blue Ribbon Citizen's Taslc Force in 1987. This citizen's group ���as tasked ���ith malcing recommendations regarding improvements to major cit�T entrances and other areas throughout the Cit�T. The taslc force concluded that the problems stemmed from a lacic of attractive development along the city's entryways. Concerns included above-ground utilities, over- abundance of signage, poor parlcing lot construction, too man�T dumpsters and dumpsters located in public rights-of-���a�T, lacic of trees and landscaping, and a lacic of code enforcement. A CityManager's memo dated November 19, 1987 and a preliminary spreadsheet regarding the taskforce's recommendations are available for review. In 2007, the Chamber of Commerce's Leadership Denton class presented the results of an informal surve�T of 450 residents aslcing about their thoughts regarding propert�T maintenance issues in Denton. The surve�T revealed a concern for a lacic of code enforcement in the Cit�T. Per the survey, "seventy two percent of the respondents felt that the codes were not being adequately enforced." The surve�T indicated that 74% of the respondents ��� ere concerned about zoning issues, 71% trash and debris, 64% substandard structures, 64% junlc vehicles, 63% signage, 62% illegal parlcing, 61% rental propert�T issues, and 52% tall grass and ���eeds. In this same �Tear, the Code Enforcement Division moved to a national best practice approach b�T instituting a proactive code enforcement model moving away from the outdated "reactive response" model. This was done in response to a lack of effectiveness in making substantial community improvement gains utilizing the "reactive response" model, as indicated b�T the Leadership Denton Surve�T. Fe��� complaints ���ere received ���hile man�T neighborhoods eiperienced an increase in propert�T violations and a decline in propert�T values. Over the �Tears, ���ith a minimalist approach to code enforcement, substandard propert�T maintenance became the norm in man�T Denton neighborhoods. These conditions passed as acceptable for a college to��n. In 2009, staff began engaging the Cit�T Council in conversations regarding the need to further develop measurable components and add detail to the City's Strategic Plan. At a 2010 retreat, the Council gave direction regarding the Plan's Key Focus Areas (KFA), Goals, and Objectives. In Apri12010, the Council adopted the City's current Strategic Plan. In the Plan, KFA 4: SAFE, LIVABLE, and FAMILY FRIENDLY COMMLTNITY, Goa14.1. Seelc clean and health�T neighborhoods in the Cit�T of Denton, has obj ectives as follo��� s: Objective 4.1.1. Provide effective code enforcement services that meet communit�T eipectations. Objective 4.12. Promote positive environmental behaviors and practices for the Cit�T of Denton and its residents. Objective 4.1.3. Enhance the qualit�T, livabilit�T, and sustainabilit�T of the neighborhoods in Denton. Objective 4.1.4. Support revitalization efforts of eiisting lo���-moderate income neighborhoods. Proactivit�T provides the approach for Code Enforcement to meet the above objectives as specified in the City's Strategic Plan. Driven b�T the ongoing quest to improve the qualit�T and standard of living in Denton, the Cit�T Council has undertalcen numerous actions to support and promote a stronger, more effective proactive Code Enforcement Division. Attached is a chronological accoiznt, dating from 2002, of the Coizncil and staff' activities toward attaining this goal. In Theory and In Practice Code Enforcement provides enforcement services to ensure the health, safet�T, and general ��� elfare of our citizens. In this pursuit, the division enforces the provisions of both the Denton Propert�T Maintenance Code (nuisance, general propert�T maintenance, minimum building standards and dangerous building regulations) and the Denton Development Code (illegal land use and signage violations). Improving health and safet�T and enhancing the City's appearance is a cooperative effort bet���een the Cit�T and its residents. The primanT program goal is to ���ork ���ith residential and commercial propert�T o��ners and tenants to obtain compliance ���ith zoning and propert�T maintenance ordinances in an effort to reverse communit�T decline, increase propert�T values, improve communit�T livabilit�T and desirabilit�T, and reclaim and restore older established residential and commercial areas throughout the cit�T. Stronger code enforcement can leacl to improved neighborhoods and a stronger tai base, enhancing cit�T revenue. Our efforts to obtain compliance are based upon a combination complaint-based and proactive enforcement program. This code enforcement prograillming model has been identif�ied as the ideal enforcement model b�T the American Association of Code Enforcement as ��� ell as the Code Enforcement Association of Teias. Most Metroplei cities including Le���isville, Garland, Arlington, Richardson, Corinth, Farmers Branch, Carrollton, Allen, Frisco, Little Elm, Dallas, Fort Worth, Mesquite, Irving, etc. adhere to this model. Proactive code enforcement also follo��� s the philosophies established b�T the Broken Windo��� s TheonT. The Brolcen Windo��� s TheonT is a criminological theonT of the norm-setting and signaling effects of urban disorder on criminal and anti-social behavior. The theonT, introduced in a 1982 article b�T social scientists James Q. Wilson and George L. Kelling, states that monitoring and maintaining urban environments in a ���ell-ordered condition ma�T prevent further disorder, i.e. unlcempt properties, dilapidation, deca�T, vandalism, pett�T crimes, �Touth criminal behavior, as ���ell as a potential escalation to more serious crime. Further, deca�T and dilapidation are indicators of lo��� real estate value and ma�T deter investors. Conversel�T, improved general maintenance and appearance coupled ���ith upgracled public infrastructure is a first step to��� ard real estate development and re-development. Residential and commercial developments have a lifec�Tcle that last man�T �Tears, often generations. Earl�T in the lifec�Tcle of these developments (neighborhoods) there are relativel�T fe��� concerns. Structures (homes and businesses), roads, and amenities are ne��� . This t�-pe of environment generall�T serves as positive reinforcement to maintain propert�T condition and appearance. This is often a period in ���hich propert�T values are stable, there are lo���er incidences of crime, and the overall cost of servicing the area is lo�� . Over time, most residential and commercial neighborhoods ���ill start to sho��� signs of age, stress and deca�T. For instance, cars are parked on la��� ns and grass ma�T get too tall. A fe��� random occurrences of this nature do not necessaril�T signal decline, but protracted, ongoing and increasing incidences of seemingl�T minor deterioration in propert�T condition and maintenance should be of concern. Additionall�T, the ps�Tchological impact of such neglect ma�T have much larger ramifications. This is as true in a commercial neighborhood as it is in a residential neighborhood. This again points to the `Broken Windows" principle often used to support the need for proactive, rather than reactive, communit�T policing and code enforcement initiatives. This principle, ���hich illustrates a philosoph�T follo���ed b�T both the Denton Police Department and our Code Enforcement Division, is based on studies that sho��� ho��� something as simple as a brolcen ���indo��� left unrepaired can leacl to other incidents of crime, vandalism, and eventuall�T neglect. This principle has been proven to appl�T to overall communit�T preservation and vitalit�T. The premise is that untended aclverse behavior or circumstances can, in time, change the ��� a�T citizens feel about their surroundings, and eventuall�T ho��� the�T maintain their surroundings. The�T ma�T feel that since no one else cares, ���h�T should I? This is ���h�T proactive enforcement of nuisance and other regulatonT codes is so important. While, ��� e have al��� a�Ts responded to complaints, there are man�T violations that are never reported; often because citizens eipect their Cit�T to enforce adopted codes ���ithout prompting andlor the�T don't want to be the neighbor ���ho, although negativel�T impacted by someone's neglect, rislcs eiposure as the "complainant." Proactive enforcement alleviates tension bet���een neighbors b�T utilizing Cit�T staff to discover and address violations, and gain code compliance. If ��� e are not proactivel�T enforcing our CittT ordinances, the ps�Tchological effect is that citizens are less lilcel�T to report violations because the�T come to believe that the CittT is not concerned about these issues or ���orse, not concerned about their neighborhood. If the Cit�T returns to the no��� ���idel�T-criticized "reactive response" enforcement methodolog�T and citizens become disinclined to activel�T report violations, the communit�T ���ill inevitabl�T eiperience decline. There are man�T neighborhoods (both commercial and residential) that are `on the cusp,' meaning that these areas can go either ���a�T—the�T ���ill either improve or decline. Improvement ���ill talce a tremendous effort on the City's part to proactively monitor and ��� orlc these areas to promote adherence to CittT standards. Withoutthe City's focus, proactivity and resource allocation, these areas ���ill surel�T decline. If our Cit�T aclopts the "reactive response" model of code enforcement, and onl�T proactivel�T ���orlcs health and safet�r violations, the unintended consequence of this lacic of action on the City's part ���ill be to negativel�T impact propert�T values, public safet�T, and communittT re-investment. With this approach, the onl�T violations that Code Enforcement ���ould ���orlc proactivel�T ���ould be tall grass, trash, dangerous buildings, possibl�T graffiti and stagnant ���ater. We ���ould not ���orlc dilapidated fences, parlcing on the la���n or on unimproved surfaces, parlcing across side���allcs, inoperable vehicles, junlc vehicles, illegal signs, garage sales, PODS/temporanT containers, minimum building standards, outside displa�T, outside storage, and illegal land uses, eicept b�T complaint. Uncheciced non-health-and-safet�T propert�T maintenance violations and illegal land use violations ���ill inevitabl�T lead to communit�T decline. For eiample, sign violations and unimproved parlcing lots create visual blight and decrease propert�T values, but are not al��� a�Ts health and safet�T violations. Clearl�T these t�-pes of issues require increased enforcement efforts, not decreased efforts. A secondary but equally as important concern with instituting a"reactive response" system of code enforcement is that it is selective in nature. When responding to a non-health-and-safet�T complaint, a Code Enforcement Officer could not acldress other similar violations present in the area. Onl�T the specific location referred to in the complaint ���ould be addressed under this s�Tstem. This t�-pe of enforcement ��� ould be entirel�T selective in practice. Selective enforcement is strongl�T aclvised against in the field of Code Enforcement. Particularl�T ��� orrisome is that this ��� ould be an `established s�Tstem' of selective enforcement. It is fiscall�T responsible to ensure that our codes are proactivel�T enforced. Communit�T decline leads to declining propert�T values. We cannot sustain increasing demands for service ���hile at the same time receiving less tai revenue. Research sho��� s that economic gro���th pivots on the perceptions held about a communit�T b�T prospective businesses and industries loolcing to relocate. This perception is based largel�T on the first impression formed ���hile travelling through the communit�T. So although green field development and re-development ���ill transform and enhance our communit�T, the enforcement of cleanliness and aesthetic standards set forth in our aclopted codes assists in promoting development and re-development. And ��� hile ��� e are a��� aiting development and re-development, it is imperative that ��� e maintain a minimum standard of cleanliness and communit�T appearance as dictated in our codes. Aesthetics and propert�T appearance have a significant impact on ho��� citizens feel about their safet�T and sense of communit�T. Denton has man�T diverse residential and commercial neighborhoods that malceup the character of our communit�T. This includes neighborhoods at all lifec�Tcle phases. And ���hile there are man�T differences in the needs of these neighborhoods, it is imperative that ��� e proactivel�T enforce our code of ordinances in all of them, ne��� and old, to be successful in achieving the purposes for ���hich these codes ���ere aclopted. Recent Historv As previousl�T noted, the Cit�T Council began discussing neighborhood sustainabilit�T ��� ell over ten �Tears ago. With regard to Code Enforcement, man�T improvements have resulted. Numerous code enforcement discussions and ���ork sessions have occurred and code enforcement initiatives have been implemented b�T the Cit�T Council since 2002. Man�T of our (council/staffl collective objectives have been achieved. Attached is a listing ofCode Enforcementaccomplishments for the past five (�) years. We have significantl�T improved our ordinances, modified our processes, increased voluntanT compliance, increased funding for contractor abatements, implemented t���o major ne��� programs (Minimum Building Standards Enforcement Program and the Dangerous Buildings Enforcement Program) and increased staffing ���ith the eiplicit purpose of providing more proactive code enforcement as directed b�T the Cit�T Council. Our overriding strateg�T has been to enlist voluntanT compliance. Bet���een October 2011 and September 2012, the voluntanT compliance rate for abating nuisance violations ��� as 92%, for minimum building violations ��� as 82%, for dangerous building rehabilitations ��� as 95% and for dangerous building demolitions ��� as 100%. And ���hile there is more left to do in eliminating code violations in our communit�T, dialing bacic our proactivit�T is the not the ���a�T to achieve success. Conclusion Adopting the "reactive response" model of code enforcement, ���ith proactive enforcement reserved for onl�T a fe��� violations, places our Cit�T at a considerable disaclvantage in developing the safe, livable and famil�T friendl�T communit�T that ���e desire. The unintended consequences will be to place Code Enforcement Officers (and the City) in the untenable position of selective enforcement, cause citizens to become angry when codes are enforced against them while the same violations by others are ignored and, more importantly, create a real barrier to achieving our stated goals that resulted in the adoption of the codes and the build-up of the Code Enforcement Division in the first place. . i , , , , , �� % . , . , � , . , , 1. Passage of Articles I- XIII of the Denton Property Maintenance Code. Involved many years of research and rewrites and the addition of numerous codes previously non- existent in the ordinance. Included the clarification of existing language and the elimination of conflicting language; 2. Based upon a Code Enforcement Department staffing comparison of 11 Metroplex cities and the subsequent submission of supplemental packages, the Division increased from seven staff inembers to 15 staff inembers, i.e. one manager, one supervisor, one administrative assistant and 12 officers; 3. In January 2007, the division moved to a national best practice approach by instituting a proactive code enforcement model moving away from the outdated "reactive response" model; 4. Added a complaint module in which one officer responds within 48 hours to all complaints received city-wide; 5. Established a standardized staff orientation and Officer Training Program. i.e. training modules, written knowledge testing, in field skills assessment; 6. Developed a Policy and Procedures Manual; 7. Implemented a stand-alone Environmental Docket held twice per month in the Municipal Court for the disposition of Code Enforcement cases that have gone to citation. Window fines for code violations were increased; 8. Instituted the third-party collection of Code Enforcement liens; 9. Partnered with the Public Communications Office to design and implement a public education campaign about property maintenance codes and enforcement procedures utilizing printed materials, an up-to-date website, eventgive-aways, and a 30-second commercial spot that airs on DTV, HGTV, ESPN, A&E, ABC Family, ESPN, HGTV, Life, TLC, TNT, NICK, and ABC Family. Mailed a residential Code Enforcement brochure to all residences in January 2011 and July 2012. 10. Translated all educational materials into Spanish; 11. Gained access to customer service software program which greatly improved property research capabilities; 12. Improved notification process: a. Moved from door-hangers to mailed Notices of Violation; b. Developed electronic Notices of Violation and citations; c. Translated the Notice of Violation into Spanish; d. Re-wrote and implemented a more customer friendly Notice of Violation; and e. Added violation photo(s) to Notices of Violation clarifying the violation for the citizen, and assisting the prosecutor during the Environmental Docket; 13. Created a 24-Hour Warning Notice that is left on the front door of properties a ter notices and citations have been issued. The notice warns of impending contractor work on the property. This additional notice has decreased the need to use contractor services in many instances; 14. Moved from overseeing one contractor with a$15,666 budget for the abatement of tall grass and weeds to overseeing three contractors with a budget of $120,000 for the demolition of dangerous buildings, the abatement of tall grass and weeds, the removal of trash and debris, the securing of vacant and abandoned structures, and the removal ofgraffiti from private and some public property; 15. Created a successful Dangerous Buildings Enforcement Program. Since May 2008, 276 structures have been demolished and 71 have been rehabilitated. Previous to this program, 46 structures were demolished in the city between 1997 and 2008; only 14.5% of the demolitions were performed by city contractor; 16. Developed and implemented the City's first Minimum Building Standards (MBS) Enforcement Program to address structures which are not yet dangerous but have exterior maintenance violations. To date, this program has addressed 789 violations citywide, abating 715, and achieving a voluntary compliance rate of 84%. Improvements made on properties to-date are: full roof replacements, roof repairs, repairs to driveways, re-painting of structures, repair of balconies, stairways and porches, and replacement of broken windows; 17. At Council direction, instituted the "Pull the Trigger" policy whereby owners of vacant properties with trash and debris at the curb aregiven minimal time to remove items or citations are issued and the city contractor removes the items within 72 hours; 18. Began the enforcement of Chapter 24 (Solid Waste) ordinance with regard to placement of trash and recycling carts, and trash and debris accumulations at d u m psters; 19. Facilitated the removal of thirty-two (32) illegal donation boxes from private business properties across the City; 20. Began a program to monitor legally non-conforming portable signs. Since its inception, we have removed 13 illegal portable signs; 21. Developed a private propertygraffiti abatement program; 22. Established a junk vehicle towing procedure for private property; 23. Completed a limited rewrite of Subchapter 15 (Signs and Advertising Devices); 24. Worked with other divisions within the Department to improve the Certificate of Occupancy process including application, review, inspections, and final approval; 25. Worked with Watershed Protection to develop and implement procedures for the removal of illegal silt fences; and 26. With Finance, developed a payment plan process for citizens to make payments of Code Enforcement contractor invoices that are in excess of $500. Chronology of Recent Code Enforcement Program Development • June 2002 -Neighborhood preservation identified as a strategic issue at the Council Retreat. • September 2003 - City Council identifies the following items for review and discussion during the following year: o Attractiveness & Community Aesthetics, Sustainable Development, Neighborhoods, Environment, and Corridors and Entranceways. January 2004 - Staff prepared white paper on community aesthetics. The paper specifically identified issues that should be addressed. o The process to attain desired community vision will require proper legislation, enforcement and adjudication. o Supporting stronger enforcement of City ordinances o Update and create new nuisance ordinances - e.g., parking on lawns & graffiti o Shortening the nuisance abatement process o Enforcement of landscape ordinance o Creation of an environmental court docket to hear specific cases that involve violations of ordinances related to appearance. • July 2004 - Staff held a discussion with City Council in a work session to identify major issues: ordinances, enforcement process/procedures, enforcement responsibility, and funding. The discussion also included the use of volunteer code officers, building inspections, and watershed protection. During this discussion staff also presented a white paper on Rental Property Issues which included a general overview of rental property in Denton and regulatory options including a rental inspection program. o Council directed staff to prepare specific recommendations for consideration. • July 2004 - At City Council annual planning retreat, staff was directed to schedule work session with City Council to address code enforcement, rental property inspections, and corridors and entranceways. October 2004 - Staff presented information to City Council regarding possible changes to code enforcement process/programs. Staff identified issues related to enforcement, proposed nuisance ordinances, graffiti ordinance, and lighting standards. Council directed staff to implement the following: o Junk Vehicles - Better define junk vehicles, define inoperable time frame to 30 days, better regulate the screening of junk vehicles. o Grass & Weeds - Define owner of a property to include a tenant, require owners to mow right-of-way adjacent to their property, revise mowing requirements for large lots. o Trash & Debris - Better define garbage & junk, and allow enforcement of trash & debris ordinance if violation is visible from an adjacent property. o Stagnant Water - Declare stagnant water a nuisance. Require owners to correct the nuisance. o Fences - Discussed but no direction received. o Enforcement Procedures - Reduce time of process and create dangerous weed provision to allow immediate abatement. o Garage Sales - Place limitations on location of garage sale signs. o Vehicles - Discussion took place regarding parking on grass, RV parking on streets and limiting the number of vehicles allowed for sale on private property. No direction was given to staff. o Graffiti - Adopt a graffiti ordinance to require abatement of graffiti and to enforce sale of spray paint to minors. o Code Rangers - Create a volunteer code enforcement program. o Other items discussed - substandard structures and outdoor lighting. • November 2004 -Staff continued discussion with City Council regarding code enforcement issue introduced in October 2004. Council directed staff to implement the following: o Vehicles - Register used car dealers, limit number of used cars that can be sold on private property, prohibit long term parking of RVs and trailers on residential streets, and explore creation of a rental property program. • February 2005—City Council Work Session—Presentation by Darlene Mullenweg and David Morgan (City of Richardson) regarding re-development and enhancement of neighborhoods. • June 2005—Counci Work Session—Staff presented information regarding rental property inspections and other rental property concerns. Presentation included information on Certificate of Occupancy program for residential occupancies, and rental property registration program. • August 2005—City Council Retreat - staff was directed to do the following: o Develop a property maintenance strategy with emphasis on rental inspection program and code enforcement. o Schedule a work session to discuss unresolved code enforcement items previously presented by staff. o Schedule a work session to discuss a property maintenance code. o Create a task force to support changes to enforcement on rental property. o Target specific neighborhoods that need to be cleaned up and provide intense enforcement. o Hire additional code enforcement officers. • August 2005—A memorandum from Director of Parks to the City Council informs them of the impending move of the newly-formed Neighborhood Services Division (Keep Denton Beautiful, Code Enforcement and Community Development) to the Parks and Recreation Department. • October 2005—Code Enforcement transferred to the Parks and Recreation Department and was assigned to the KDB Program Manager. • November 2005 - Staff presented draft ordinance to address fences, yard & street parking, and auto sales. o Council directed staff, with some minor revisions to staff recommendation, to bring ordinance to City Council for approval. o Council also stated that, "more vigorous enforcement of nuisance ordinance is needed." • November 2005—Tours of the City of Richardson and City of Farmer's Branch to discuss their neighborhood/revitalization programs. Attended by: Mayor Euline Brock, Councilmember Thomson, Councilmember Montgomery, Janet Fitzgerald, Lancine Bentley, Howard Martin, Betty Williams, etc. • February 2006—City Council approved passage of an ordinance amending the provisions of Chapter 20 (Nuisances) by creating Article V"Fences" and VI "Certain Parking Regulations." The main provisions of the fences regulations specified that they must be maintained in good repair while the new parking regulations disallowed: parking on unimproved surfaces in front, side and rear yards; the storage of oversized vehicles on public rights-of-way in residential zoned districts; and the sale of vehicles within 100' of a right-of-way or easement with an exception for new and used car dealerships. • February 2006—Council work session: Farmers Branch Building Official presents neighborhood revitalization strategies with a focus on code enforcement. One Power Point slide read: "Proactive—Program emphasizes proactive code enforcement inspections to minimize negative impact of violations and reduce `reactive response' inspections." Council praises the presented code enforcement approach entitled "Dynamic Proactive Code Enforcement." • April 2006—Staff presented to Council a Power Point and held a discussion about "Strategies for Maintaining and Revitalizing Neighborhoods." Presented Council-requested benchmark information from 11 Metroplex cities comparing Code Enforcement `Officer Per Square Mile' and `Officer Per Capita.' Year 1 recommendations: o Adopt the International Property Maintenance Code (IPMC)—now the Denton Property Maintenance Code (DPMC). o Perform a Property Assessment Survey. o Hire two additional Code Enforcement Officers. o Establish a substandard structures program. Year 2 recommendations: o Establish a Rental Property Inspection Program (add four Code Enforcement Officers for Multi-family Licensing and Inspections). o Continue to review and update IPMC. o Fund demolitions in the Substandard Structures Program ($75,000). Year 3 recommendations: o Add two additional Code Enforcement Officers to the Rental Inspection Program for Single-family C/O Renewals. o Add one additional Code Enforcement Officer to the Substandard Structures Program. • April 2006—Denton City Council charged the Denton Chamber of Commerce with conducting an assessment of the City's property maintenance issues. • October 2006—Council decides the following: o Continue with the 7-day abatement timeframe and cite owners immediately for all violations, i.e. trash and debris nuisance, trash not properly containerized, trash placed at the curb at illegal hours, etc. o At the discretion of the Code Enforcement staff, eliminate the abatement timeframe altogether, collect the items, and cite the property owner. o Pass an ordinance to legally restrict the use of collected Code Enforcement invoices and liens for use in the Code Enforcement program. These funds would be held in a Special Revenue Fund used strictly for this purpose. • October 2006 - Hired two (2) additional Code Enforcement Officers. Funded specifically with an increase in the tax rate ($.00215/$100). • October 2006 - Funding was included in the budget for a community-wide property assessment survey. Due to changing financial picture, funding was re-allocated and the study was not performed. • July 2007—Work session: staff brought 21 recommendations to modify existing ordinances i.e., to strengthen or clarify regulations, eliminate conflict with e�sting provisions, and allow for needed changes in Code Enforcement procedure. • September 2007—Council adopted 13 recommendations from the July 2007 work session, re: notification, parking regulations, storage of goods in ROW, inoperable motor vehicles, trash and recycling containers, trash and debris, outside storage, and tree canopy. • October 2007 - Hired two additional code enforcement officers. One officer was dedicated to Substandard Structures Program (now renamed the Dangerous Buildings Program). • November 2007—A City Council Committee was appointed to address property maintenance code issues. This committee set as their mission: "to zmprove the quality of life and standard of living for all citizens..." • March 2008—The Council Committee appointed a Citizens Committee to work with staff and the Council Committee on addressing property maintenance code issues. • October 2008 - Increased funding for demolitions in the Dangerous Buildings Program. • October 2008 - Hired three (3) additional Code Enforcement Officers and formally created a Code Enforcement Manager position by transferring an existing position from the Parks and Recreation Department. Total staff added in 2008 was three (3). • March 2009—Council passed the Denton Property Maintenance Code: Ch 20, Articles I-XII. • October 2009 - Additional funding was provided for substandard structures abatement, mowing, trash and debris removal, and public education. • February 2010—At the EduCode Conference hosted by the American Association of Code Enforcement (AACE), in a class on Performance-Based Code Enforcement, the `kinder, gentler' approach to code enforcement was strongly criticized as a failed methodology; and the City of Denton was praised as having one of the most improved programs. • April 2010—Council passed the Denton Property Maintenance Code to include Article XIII (Buildings and Building Regulations). Final DPMC passage: Ch 20, Articles I-XIII. • May 2011—Council passed revisions to the Denton Property Maintenance Code, i.e. understory vegetation, JV hearings, outside storage, and accessory structures definition. AGENDA INFORMATION SHEET AGENDA DATE: January 29, 2013 DEPARTMENT: Planning and Development ACM: John Cabrales SUBJECT Receive a report, hold a discussion and give staff direction regarding the sign ordinance. BACKGROUND Over the past ten years there have been several staff discussions regarding the need to address the inconsistencies, conflicting regulations, and lacic of clear definitions in the Signs and Advertising Devices ordinance (35.15.). In 2010, a Planning and Development Department committee formed to review the ordinance and malce written recommendations. The Legal Department has also submitted an interim rewrite of this ordinance. Both drafts have been provided to Clarion Associates. RECOMMENDATION Prior to receiving Clarion Associates' rewrite of the Signs and Advertising Devices ordinance, staff is recommending that some modifications be made in the interim to provide clear direction to staff and the citizenry for some sign types, such as temporary, real estate, and LED signs. PRIOR ACTION/REVIEW No prior action. FISCAL IMPACT No increased impact. EXHIBITS Ordinance excerpts Respectfully Submitted: ��C.`a.,�-�.��,_._ John Cabrales Assistant City Manager Prepared by: Lancine Bentley Zoning/Code Enforcement Division Manager rtwr; ��„°��„�„ �- I����iiirnii��iic�irn� ,��` The following words, terms and phrases, when used in this Subchapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning: Abandoned sign. A sign: 1. Which, for at least six (6) continuous months, does not identify or advertise a bona fide business, lessor, service, owner, product or activity; 2. For which no legal owner can be found; or 3. Which pertains to a time, event or purpose which no longer applies. Advertising. To convey information to, seek the attraction of or to direct the attention of the public to any location, event, person, activity, goods, services or merchandise. Attached sign. A sign, other than a wind device sign, attached to or supported by any part of a building, including but not limited to a wall, roof, window, canopy, awning, or marquee. Wall, roof, and projecting signs shall be considered attached signs. Curbline. An imaginary line drawn along and parallel to the outermost part or back of the curb and gutter on either side of a public street; or, if there is no curb and gutter, along and parallel to the outermost portion of the paved street; or, if there is no paved street, along and parallel to the outermost edge of the traveled portion of the street. Dilapidated or deteriorated sign. A sign: 1. Where any portion of the finished material, surface or message portion of the sign is visibly faded, flaked, broken off, missing, cracked, splintered, defective or is otherwise visibly deteriorated or in a state of disrepair so as not to substantially appear as it was intended or designed to appear when originally constructed; 2. Whose elements or the structural support or frame members are visibly bent, broken, dented or torn, twisted, leaning or at angles other than those at which it was originally erected, such as may result from being blown or by the failure of a structural support. Front yard. An open, unoccupied space on a lot facing a street and extending across the front of the lot between the side lot lines and from the main building line as specified for the district in which it is located (the "building setback line"). Ground sign. A sign, other than a wind device sign, whose principal support is provided by burying, anchoring or otherwise connecting the sign, or supporting structure thereof, to the ground and which is not a portable sign or attached sign. Monument Sign. A ground sign, other than a wind device sign, which is solid from the ground up, and is made of stone, concrete, metal, routed wood planks or beams, brick or similar materials. The pole(s) or support of this sign shall be concealed. Off-premises sign. A sign displaying advertising copy that pertains to a business, person, organization, activity, event, place, service, or product not principally located or primarily manufactured or sold on the premises on which the sign is located. On-premises sign. A freestanding sign identifying or advertising a business, person, or activity, and installed and maintained on the same premises as the business, person, or activity. A sign which promotes or displays a political, religious or ideological thought, belief, opinion or other noncommercial message shall be considered an on-premises sign. Portable sign. A sign whose principal supporting structure is intended, by design, use or construction, to be used by resting upon the ground for support and which may be easily moved or relocated for reuse. Portable signs shall include but not be limited to signs mounted upon or designed to be mounted upon a trailer, bench, wheeled carrier or other nonmotorized mobile structure, with or without wheels, and A-frame and other similar signs, resting or leaning on the ground or other structures, but not permanently attached thereto. Premises means: For any developed property, the lot or contiguous area of real property which encompasses all the buildings, structures, appurtenances and land devoted to a common use, such as a shopping center or a business occupying and using multiple contiguous lots; or For undeveloped property, the area of real property designated as a lot on a Plat approved in accordance with law and filed with the County Clerk's office, or an unplatted tract of land as conveyed by deed or operation of law and recorded in the deed records of the County. Projecting sign. Any sign, other than a wind device sign, which is wholly affixed to or supported by any building wall and which extends beyond the building wall more than twelve (12) inches. Roof sign. Any sign, other than a wind device sign, wholly erected on, affixed to, or supported by a roof of a building. Sign. An outdoor structure, sign, display, light device, figure, painting, drawing, message, plaque, poster, billboard, or other thing that is designed, intended, or used to advertise or inform. "One sign" or a"a sign" means any number of signs located on or supported by a single or common supporting structure. Supporting structure. Any pole, post, cable, foundation or other supporting structural materials or fixtures arranged, designed or used to hold, secure or support a sign, abandoned sign, or part thereof. Temporary sign. A ground sign that is used to communicate or advertise a single event which has not yet occurred and which is temporary in nature. Examples of temporary signs include, but are not limited to, signs advertising grand openings, future construction projects and real estate listings. Visibility point. The viewing locations, at a height of six (6) feet, determined by extending the side yard setback lines of the property so as to intersect the curb line of the public street fronting the property, then measuring from the intersecting points along the curb line away from the property in each direction for a distance of one hundred (100) feet. If the street fronting the property is one-way, the visibility point in the direction from which traffic approaches the property shall be used to determine the visibility requirement. Wall sign. Any sign, other than a wind device, wholly affixed to, supported by or painted upon the wall of any building and which is not a projecting sign. Wind device sign. A flag, banner, pennant, streamer, inflatable balloon or similar device made of cloth, canvas, plastic, or other similar flexible material, with or without a frame or other supporting structure, and used as a sign. � ��,.°��,.�,. �� IE��ir�����iic�ir�� ��,;��� The following types of signs shall be exempt from the provisions of this Subchapter: A. Governmental signs. Any sign: 1. Erected or maintained pursuant to and in discharge of any governmental function: 2. Required by law, ordinance, or governmental regulation; or 3. Located on property owned, leased, or under the control of the federal or state government. B. Railway signs. Any sign within or on railway property and placed or maintained in reference to the operation of such railway; C. Utility signs. Signs marking utility or underground communication or transmission lines; D. Vehicle signs. Signs displayed or used upon vehicles, trailers or aircraft, unless such vehicle, trailer or aircraft on which such sign is displayed is permanently stationed or regularly used at a fixed location to serve the same or similar purpose of a permanent or portable sign not affixed to a vehicle, trailer or aircraft; E. Signs not visible from the street. Any sign where no part of such sign is visible from any public street; F. Holiday signs. Temporary signs containing only holiday messages and no commercial advertising; G. Signs on persons or animals. Hand-held signs or signs, symbols or displays on persons or animals; H. Unused signs. Signs being manufactured, transported or stored and not being used, in any manner or form, for purposes of advertising; Plaques. Commemorative plaques of recognized historical societies and organizations; J. Private traffic control. On-premise signs which direct the movement of traffic on private property or warn of obstacles, overhead clearances, or control parking, including, but not limited to, entrance and exit signs. The sign must be less than ten (10) feet in effective area, less than six (6) feet in height, and be placed where they will not interfere with the safe movement of vehicles or pedestrians; K. Mailboxes, newspaper racks. Signs located on mailboxes, newspaper vending machines and curbside residential newspaper holders which identify the owner and address of the premises or the name of the newspaper sold or subscribed to, provided that such devices are not placed so as to interfere with the safe movement of pedestrians of vehicular traffic; L. Signs on outdoor machines, devices and equipment. Signs located on outdoor machines, devices, or equipment which display the trademark, trade name, manufacturer, cost, or operating or service instructions or similar information but do not advertise the business where located. This exemption includes but is not limited to signs on coin-operated vending machines, fuel dispensing pumps, telephone facilities, automatic teller machines, automotive vacuum cleaners, amusement rides, and similar machines, devices, or equipment; M. Athletic fields. Signs located on the field side of scoreboards and fences of athletic fields. N. Wall signs fifteen (15) feet or less in height. O. Legal notices. P. Flags as specified in Section 35.15.16.2. Q. Signs painted on glass surfaces of windows or doors. R. Temporary signs. ��.1�. . - ������ir� ���hi�i���� i�r��.;�:,`°�� It shall be unlawful for any person to erect, install, construct, display, maintain, reconstruct, place, locate relocate, or make use of any of the following signs for advertising purposes: A. Signs on private property without consent of owner. Signs located on private property without the consent of the owner of the premises. B. Parking and maneuvering areas. Signs which are located in or interfere with the use of a required off-street parking space or maneuvering area. C. Unsafe signs. Signs which are or become deteriorated, dilapidated or in danger of falling or otherwise unsafe. D. Signs on public property. Any sign located on or attached to a public street light, utility pole, hydrant, bridge, traffic control device, street sign or other public structure or building, or any sign, other than a temporary sign, located in, on, over, or within a public street, sidewalk, alley, easement or right-of- way. This prohibition shall not apply to projecting signs in central business districts as permitted by this article, markings made on public sidewalks as permitted by the Code of Ordinances or wind device signs placed over a public street by the City to advertise annual community events. E. Code compliance. Signs which do not comply with any applicable provision of a building code, electrical code or other applicable code or ordinance of the City. F. Trees and shrubs. Signs located on trees and shrubs. G. Motion picture signs. Signs which employ a stereopticon or motion picture machine. H. Signs obscuring or interfering with view. J K. 1. Signs located or illuminated in such a manner as to obscure or otherwise interfere with the effectiveness of an official traffic sign, signal or device or so as to obstruct or interfere with the view of a driver of approaching, emerging or intersecting traffic or so as to prevent any traveler on any street from obtaining a clear view of approaching vehicles for a distance of two hundred fifty (250) feet along the street; 2. A sign other than a traffic control sign or signal, in a triangle sight area at all intersections including that portion of public right-of-way and any corner lot within a triangle formed by a diagonal line extending through points on the two (2) property lines twenty-five (25) feet from the street corner intersection of the property lines or that point of the intersection of the property lines extended and intersecting the curblines. Certain illuminated signs. Signs, illuminated form within orwithout, and which: 1. Are illuminated in such a manner, to such intensity, or without proper shielding, so as to constitute a hazard to the operation of motor vehicles upon a public street or substantially interfere with the reasonable enjoyment of residential property; or 2. Have any type of intermittent illumination, including flashing, fading, revolving or blinking lights, or any type of moving, traveling or changing message by means of illumination, excluding temporary Christmas lights and lights used for time and temperature signs; Portable signs. Any portable sign which is not a properly registered nonconforming portable sign as provided for in this Subchapter. Off-Premises Signs. Any off-premises sign which is not a properly registered nonconforming off-premises sign as proved for in this Subchapter. ��.1�.1�. - T°� ������ i�r��.;,�,��', 35.15.16.1. Temporary Signs. A temporary sign shall be considered a ground sign and shall be permitted only according to the standards for ground signs except that a temporary sign not larger than thirty-two (32) square feet in effective area need not be permitted if: A. The supporting structure of this sign is not larger than one in which two (2) perimeter dimensions are greater than four (4) inches or one in which the diameter is not greater than four (4) inches; B. No more than one (1) off-premises sign advertising the sale or lease of one (1) piece of real property or one (1) real estate subdivision or development sign is placed on any one premises; C. No temporary sign shall be located within any public street median or within ten (10) feet of any curbline; and D. The temporary sign shall be removed or cease to be displayed within ten (10) days after the event being communicated or advertised on the sign has occurred. AGENDA INFORMATION SHEET AGENDA DATE: January 29, 2013 DEPARTMENT: Transportation Operations ACM: Jon Fort�ine �� SUBJECT Receive a report, hold a discussion and give staff direction regarding future facility planning and space needs. BACKGROUND Over the past fifteen years, facility renovations, additions, repurposing of space and upgrades to equipment have been completed at City Hall, City Hall East, City Hall West, and Service Center to maintain functionality and address growth. Though these enhancements have helped to lceep the buildings functional, clean, and usable, staff believes it is necessary to plan for the short-term and long-term needs for our municipal stnictures with the highest public use. To help facilitate discussion of this topic and to solicit feedbacic from City Council, staff has prepared a short report (attached) that describes the past facility study, assesses the current condition of our main buildings, and provides some recommendations on steps for future planning. EXHIBITS 1. 2013 City of Denton Facilities Brief Respectfully Submitted: �„��:�.��. ��� Mark Nelson Transportation Director EXNIBIT 1 City of Denton Facilities Brief City Council Retreat JanuanT 29, 2013 Cin� of Denton Facilities Purpose of the Briefing: The purpose of this report is to provide the Denton City Council a general overview of the City's main public facilities, and to seelc Council's direction on both short-term and long-term planning needs. The following report includes data from the 2002 Space Study (Denton Facilities Master Plan), cost estimates for near-term facility maintenance needs, and provides potential concepts to address future facility needs. Background: In 2002, Hellmuth, Obata + Kassabaum, Inc. (HOK) completed a building assessment snidy for City facilities. The intent of the study was to develop a Facilities Master Plan outlining delivery options for municipal services for the next ten years. Based on the 1999 Denton Comprehensive plan, HOK reported the City of Denton population would increase to 183,000 by 2020 representing a five to six percent growth rate for the 20 year period from 2000 to 2020. The initial 2012 population estimate was projected to be 131,480 versus the current estimate of 115,662. The study also indicated a five percent increase in administrative staff could be expected over the ten year period from 2002 to 2012 to support the projected population growth. In 1999, total FTEs (administrative plus field personnel and public safety) equaled 1,046 which were projected to increase to 1,098. Current total FTEs equal 1,403. HOK reported that many of the facilities were in excellent condition at the time, however, the study recommended minor worlc and or expansion be initiated at several buildings including libraries, fire stations and recreation centers. Some of these recommendations have been completed since the 2002 report allowing the facilities to continue their mission. The 2002 HOK study also indicated that over 110,000 feet of usable square footage would be necessary to support departmental space needs within the next 10 year period, and included two primary recommendations. First, the constniction of a Justice Center to house Police, Courts and Jail functions and secondly, the creation of a"one-stop shop" facility centralizing essential city services with high interaction with the general public. HOK suggested that the relocation of Police, Courts and Jail activities from CHE would provide space needs in CHE to permit the relocation of certain municipal services to establish the proposed one-stop shop. January 2013 Page 2 Cin� of Denton Facilities The snidy noted that in 1999, both City Hall and City Hall East (CHE) received major renovations. Less comprehensive renovations of these facilities occurred in the previous 10 years to accommodate increased staffing levels to support the significant growth that Denton experienced from the previous two decades. Although facility modifications to CHE, City Hall West (CHW) and the Service Center have been necessary to support increased staffing levels and altering service missions of the facilities, space linutations remain. For example; large court docicets are not easily managed due to constraints at CHE, public meetings held in the Council Chambers and Worlc Session Room routinely result in standing room only for citizens and office space is at a premium at City Hall as virtually all usable square footage has been used. This is beginning to present some real challenges simply to add or move a single staff person in the building. As part of the annual budget process, Facilities Management conducts an assessment of facilities to develop a city wide five-year Building Needs Plan. The Plan includes a proposed proj ect schedule and cost estimate for both nunor and major facility needs ranging from upgrades to heating ventilation/air conditioning (HVAC) systems and roof replacement to lighting enhancements and compliance actions necessary to meet the Americans with Disabilities Act (ADA). As part of the FY 2012-2013 Budget, the Facilities Building Needs Plan indicates substantial repairs and replacement are necessary at all four of the main City facilities to maintain functionality. The chart below details the maintenance funding needs at City Hall, City Hall East, City Hall West, and the Service Center. FACILITY DESCRIPTION FIVE YEAR ESTIMATED MAINTENANCE COST City Hall Flooring, HVAC, Roof $775,000 City Hall East Flooring Foundation, HVAC, Roof $1,650,000 Cit Hall West HVAC, Roof, Floorin , Fire E ui $500,000 Service Center Elevator, Flooring, HVAC, Roof $1,100,000 It is important to note that a critical issue in CHW will not be addressed through the proposed maintenance proj ects. Numerous renovations and repurposing of the facility over the decades have resulted in a fragmented interior layout with space linutations. The split level facility will remain January 2013 Page 3 Cin� of Denton Facilities confusing and improvements to energy efficiency and space utilization cannot be addressed without maj or renovations. Plans are currently being finalized for the finish out of more than 21,000 square feet of unused space at CHE to provide a Joint Public Safety Training Facility. This $4.5 nullion project includes $2.7 million in local funding for the expansion, and $1.8 nullion of Federal grants for technology and training simulators. The area programmed to be converted was previously leased to Morrison Milling for general warehouse operations and is within close proxinuty of the Police Department. Upon completion of the proposed training facility, approximately 15,400 square feet of unfinished space will remain available for expansion at CHE. Of the remaining space available, approximately 6,500 square feet will be available to expand Courts or Technology Services and the remaining 8,900 square feet will be available for future Police Department expansion needs. Future space needs are also under review for the City of Denton Service Center located on Texas Street adjacent to the Union Pacific Rail Road. Staff is currently in the process of evaluating options to develop a portion of an adjacent 16 acre parcel owned by the City of Denton to expand the material storage yard for Drainage, Streets, Traffic, Water and Wastewater. Relocation of operational and administrative space associated with these divisions could allow current space to be repurposed for Engineering, Water/Waste Water Administration or Parlc Operations needs. The HOK snidy recommended development of the 16 acre tract for additional parlcing, expansion for equipment storage and constniction of a new warehouse facility providing 29,000 square feet of offices and general high bay industrial warehouse space. As a result of the 2012 staff review and analysis of the anticipated needs of these facilities, that include the pending build out of CHE to accommodate the Joint Safety Training Facility, the very linuted growth opportunity in City Hall to provide adequate public access, Service Center space needs and the proposed acquisition of Denton County property adjacent to the City Hall/Civic Center municipal complex, staff is seelcing council feedbacic to develop both short-term and long-term planning objectives to address the space demands on our municipal facilities. To assist in this discussion, staff has created an inventory and general overview of the four main municipal facilities to provide a better understanding of their current condition, use and challenges. January 2013 Page 4 Cin� of Denton Facilities City Hall City Hall 215 East McKinney Sq. Ft. Year Departments Staffing Challenges Built 35,000 1968 Accounting 69 1. High renovation cost to maintain Budget architectural integrity of O'Neal Ford CMO 2. Space restrictions — Currently at or Economic Development near capacity Finance 3. Limited public meeting space — e.g., Legal Council Chambers and City Hall Public Communications Work Session Room Reprographics 4. Parking limitations Utilities Administration 5. No clear front of the building which is confusing to the public 6. Flood plain restrictions 7. Community concerns regarding the history of the structure 8. ADA compliant but not ADA friendly Attributes: • Symbolic center of government providing anchor for downtown development • Open space -"great lawn" fronting McKinney Street south and location in Quaker Town Park • Architectural significance Opportunities: • Construct a new comprehensive signature city hall. • May be possible to add multiple levels to the existing structure and increase available space • Repurpose and relocate select departments to current facility January 2013 Page 5 Cin� of Denton Facilities City Hall East 601 East Hickory Sq. Ft. Year Departments Staffing Challenges Built In Use 1946 Code Enforcement 343 1. Limited parking - Transit Center 137,600 & Customer Service 2. Railroad parking lot needs 1964 Human Resources (HR) reconstruction Unused Municipal Courts 3. Meaningful expansion is only 15,400 Municipal Judge feasible for the Police Department Total S. Ft: Parks Administration and Courts 153,000 Police (PD) 4. ADA compliant but not ADA friendly Risk 5. Public meeting constraints to Technology Services (TS) support Courts 6. Mobility — traffic congestion 7. Rail road activity can separate facility from remainder of city Attributes: • Large civic campus anchoring transit oriented development opportunities in the east side of downtown • Approximately 8,900 square feet of unfinished area remains available for PD expansion • Approximately 6,500 square feet of unfinished area remains available for Courts and TS Opportunities: • Relocate requisite departments to appropriate facilities to be determined. Allow Courts and PD to expand and convert CHE into a centralized Justice Center January 2013 Page 6 Cin� of Denton Facilities City Hall West City Hall West 221 North Elm Sq. Ft. Year Departments Staffing Built Building Inspections Fire Prevention Gas Well Inspections Planning & Development • Historic fa�ade • Centrally located, located near Square Challenges 41 1. Heating and cooling issues due to split/divided levels. 2. City designated historic building 3. Inefficient use of space due to spilt/divided levels. 4. Limited Parking 5. ADA compliant but not ADA friendly. 6. $500,000 in repairs, replacement and maintenance in the next five years. Attributes: Opportunities: • May be able to open new possibilities for use of the building by demolition of "Old Fire Central" for use as additional parking • Sell the facility as an economic catalyst project • Use facility for smaller departments with low public interface January 2013 Page 7 Cin� of Denton Facilities Service Center Service Center 901 Texas Street Sq. Ft. Year Departments Staffing Built 69,146 1978 Materials Management Parks Maintenance Public Works Inspections Streets Traffic Utilities & CIP Engineering Waste Water Water 284 1. 2. 3. 4. 5. 6. 7. Attributes: • Centrally located to serve the city field service needs Challenges Poor accessibility to general public Parking limitations for public meetings Existing departments/divisions have additional space needs Expansion may require realignment of surrounding streets for optimal use of property Zoning restrictions/incompatible land use for expansion Railroad activity separates the facility from rest of city Flood plain restrictions Opportunities: • Adjacent, undeveloped 16 acre tract owned by the City of Denton January 2013 Page 8 Cin� of Denton Facilities DISCUSSlOri: Though each of the three City Halls are well maintained and operationally functional, design elements and space linutations of these dated facilities may impede the fut�ire most efficient provision of City Services. As stated earlier, the 2002 HOK study recommended creating a centralized one-stop shop City Hall or civic facility by co-locating departments with high public interaction at a single location. The intent of a one-stop shop is to create a more user-friendly facility for residents that improves service delivery to Denton residents, promotes intergovernmental collaboration and maxinuzes municipal facilities by collocating specific departments. In addition to creating a one-stop shop, some communities, including Lewisville, have built signature city halls that not only provide the convenience of a centrally located facility, but also provide sufficient public meeting space for their growing communities. In the case of Lewisville, the 2002 City Hall is a landmarlc facility serving as a source of community pride anchoring redevelopment efforts in Old Town Lewisville. In reviewing the pending maintenance requirements to each of the main municipal facilities, build out of CHE to accommodate the Joint Training Facility, the linuted growth opportunity in City Hall to provide adequate public access, and the recent acquisition of Denton County property, several policy questions regarding municipal facilities were formulated: • Do existing facilities provide adequate space/opportunity to facilitate future growth in the community? • Are we providing the best service possible by utilizing decentralized facilities? • How long are the stnictures able to sustain municipal operations in their current condition? • Is it necessary to conduct a more detailed space needs assessment based on the current usage and demand? The intent of these discussion points is to seelc policy direction so that staff can properly plan for future capital funding requirements, and the preferred tinung to implement recommendations. While short-term maintenance improvements to lcey municipal facilities will be necessary over the next few years, city staff is concerned that these enhancements do not address the long-term needs for public meeting space and services nor do they provide space needs for the projected growth trend of the community. January 2013 Page 9 Cin� of Denton Facilities Recommendation: Staff recommends that a limited space needs study be conducted to evaluate the main city hall stnictures and identify available options and strategies to meet both short-term and long-term space needs. Staff recommends the study focus on the feasibility of a single city hall stnicture concept that will centralize departments improving customer service, and that will provide ample room for public access. This includes evaluation of the long-term use of CHW and status of Old Fire Central and may include discontinuing the use of CHW as a service delivery center. It is also staff's recommendation that the study give consideration to consolidating core city services under one roof to provide a one-stop shop in a signature civic facility at or near the current City Hall. This may also include consideration of a concept from the previous HOK study by designating CHE as the "Justice Center" and relocating all other departments since the main functions of this building is currently serving police and court needs and will soon be expanded to include public safety training Attached to this report are three examples of recent municipal/county facility projects that help illustrate the type of success other entities have had to address and plan for long-term growth. Staff is hoping that conducting a space needs study will help us develop a proposal to address Denton's growth and space needs to better serve the community. ATTACHMENTS: 1. Lewisville City Hall 2. Sugarland City Hall 3. Denton County Election Building January 2013 Page 10 ATTACNMENT 1 • • • .� e zvzsvz e z t � • Completion Date: October 2003 • 72,560 Total Square Feet (16,500 sq. ft. unfinished basement) • Construction Budget: $12M ($165.38/sq. ft.) • LEED Status: Not certified • 2010 Population: 95,000 ATTACNMENT 2 • • zt o u �r �n zt � • Completion Date: April 2004 • Construction Budget: $13M ($160.49/sq ft) • 81,000 Square Feet • LEED Status: Not certified, but has Energy Efficient Design • 2010 Population: 78,000 ATTACNMENT 3 �enton Count ECection �uiCd�in y � • Completion Date: 2012 • 85,500 Square Feet • Construction Estimate: $14,283,000 ($167.06/sq. ft.) • LEED Status: Silver Certification s:\legal\our documents\miscellaneous\13\ais ethics.doc :�' ,_'��� 1 �� �!1��; 1 . ; i�� � ��� r ; � � � ;� ►. � ,., � , � . . . �A: Anita Burg�ss, City Attorl�ey Si1 JEC"I': Receive a brie�ing on tl�e City Ethics l�olicy and upd�tes on �tate and Federal statutes. ��4��£GR�7iJNIi: The City Council Ethics Commiiiee inet on October 12, 2012 to consider whether the Coiincil Ethics �olicy was cuirent and whether any chang�s were warranted. Tl1e Corninitt�� also considered whether it would b� appropriate io institute an ethics training s�ssion at ihe City Council retreat in January 2013. C)n December 3, 2012, the City Council Etl�ics Cammitiee reported to th� City Council r�garding fheir m�eting af October 12, 2012. The Committe� reported to ihe City Council that the Ethics Policy was still cti�rr�nt, but that Ethics training �vould be appropriate at the City �ouncil's annual retreat to insur� all council members remain familiar with Ethics rul�s. The Ciiy Council concLirr�d, ancl directed stafF to prepar� a presentation on Ethics m�tters. �,. � �� �� ` � Anita Burgess, City Attorney s:AIegal\our clocuments\rr�iscellaneousU3lethics inclex.doc � � i� r � 1. �z� 2. ResolUt�o� Na. 006-003 3. Ethics Partion of Resolution No. FZ2009m015 4. Denton Charter 5. D�nton �ade: a. Article II. — Administrativ� Org�nization b. Adrriinish•ation, Divisi�n 2-Qualifications for IVlembers 6. Conflicts of Interest 7. Nepotism �. Competitive Bidding and Procurement 9. Bribery 10. Coercion of Public ��rvant or Voter 1 l. Impraper Ii2fluenc� 12. Tampering with a �Vitness 13. Obstructic�n or Retaliation 14. Gifts to l�ublic �ervant 15. Offering Gift to Public Servant 16. AbLise of Official Capacity 17. (�fiicial Oppression 18. Misuse of Official Infarmation �.^ � � � . ��� r, S:lOill' Documcnts\0.cwlulion!i\061E��tca Valicy-Afnendiumt.DOC ,s�������r� r�c�m ��0� —�d� ;; ; �F � � � ,;; ,, ,, � � , ; ; � � � �� , � -�; . , � � ,�, , , �,� . ,, , ;�; i � � �.�� cr� �'Iay 1. �, 20(�4 �i�y C;ouncil passed Resolution �004-025 adopting an Ethics �alicy for El�cted and �ppa�nted �fficials a�d u�on a r�ca�rraer�dation by th� �ounc�l Ei�cs S�b-carr��nitte� hereb� approves an arnendme�t to the policy as set forth hereing a�d � �S, �ie C"i� �auncil �f the C'it� of Den�on ac�nc�wledbes t�at our gave ent is a r�pr�se�tat�v� de�oc�ac�r a.�d those vvh� are elected. or appa�nied ta serv� oilaers as �°��r��;se�.tatives a.ccept a public ��st t�a,i requires them to faithfi.illy a�.� dilrg���1y� fu1fi11 il2eir public resp�nsibili��es; a�d E A.�, th� C:iiy Cc�uncil of' the G�iy of Dezatoil recngt�zes the those indzv�duals �rho �e�� as p�b�a� s��°varats ;nz�st ad1-iere ia a higher �thical stai�dard of �and�ct s�ce the a�tiviti�s n.f governm�nt s�iauid ��ne�it t�ie com:mranity as a�vho:le az�d s}�au1d never ber�efit �he andrvid�al �ter�si o�'p��ii�: decls�o� malc�rs;1�T��T, THE b��J , , ., , :, � � ; � � �� �;� �, �: � ,.,- � r � � ` , � , , , , � • , �r � . ,. ,�` '� �� � . . ; , � ,;� �; ; . ��� ��� , �,� " � '�° , t � ' � � � • ;� � ;�- ,� ► . . �• . -�- - �r. ..r - � . r _ , - . � � '� � �' � � :� • �r ; � � �'% � x 'i�s �thics P�licy has be�n adopied io �ncourage and e�sure t�� �Sgriest sta�darc�s of p�rsonal and public corzciuct c�ur�g tenur� �n office. Acilze�ence ta i11is Policy w��� �nau�.tain t1�e canfider�ce and trr�si i�a the decision-znalcers and r�presentaiives of ih� City w�a rrJUSt rema�n ind�p��dent, �mpart��lp arr�d ac�ounfable to th� p�ople tliey serve. Itr addriro�, �1�cied and appoint�d �fficials �1�st ad�ier.e t� Texas state statues and �ity �harter pr.c�vrsza�s arid City �ou�.crl Ru1�s af 1'rac�clur� governing tYieir conciuct': T�iese �re :1xsi'�d''ai"t�i'e ��ci' �.f �s I'r�licy. Th�s, eiect�d �ity Cou.ncrl I`e�err�bers as �aell as appouated �.�mbers of tlle �it�'s BaaJ°ds and Ga °ssi�ns are asl�ed to subscribe to i�ie Texas statutes, City of Il;renton �harte�, Rules c�f Procedures :E°or C�ty �o�rds and �ozr�ssions, and this Ethics Poiicy. 1m r�s � t°�pa�es�rct�tiv� c�f t�� �ity �f�ento�� �°ll be �t����l, I��1 a�t� witb. in�egrify as�d'�rnoral cc�urage. I`�vi11`�� a�soluf�ely��trut�iiula � 1`�wil'I `mak�e �imparti�l ciecisions thaf are free of bribes, �znlaw�izl gifts, �arrow political inter�sts and ot��er personal inte�-ests �hai ��.i�;ht i�pair �y irzdeper�dence af judgna.ezlt, I��rill alv�ays d�cid� �hat is best for the �vhole ciiy, I wi11 �°es�ecf: cornf d�nces and in.�`orination designa�ed "confid�ntia199 to �11� extent 5:`�Our GocumculsVtccolutianc1061Etlilce Yolicy-hwendmmlSlOC permitted by 1a�. I�✓il1 use �y iitle a�2d city .1ago or lett�rhead �uly when co�ducting ofC�cial. �it�r 1��asiness and va�11 nc�t exc�ed my author�iy. 2m �.� � r°�p��se�ta�ve c�f t�� �ity� �f �7e�t��, � �Il be ���°�ic���sa°ie�tedo 1 wzll b� fri�ndly, �ecepiive, �ourtec�us, �iz� respeciful to everyc��ea I will be ath�ned to a�d care abc�ut the aaeeds and �ssues ai` a1� :�9enio� citizens. 3m A� ����r���n��ti�e �i" th� C;ity �f I)�nion, I° k�� f�scaliy r�s��ns�bl�, I will rnalc� pna.der�t �ecisians, �a.1a�g rnt� account the long-terc�. �'inaa�cial ne�ds oitl�e City and �ts �"�aa�cial stab�lftya I wi11 �aa.�te �ecrsions that s�el� tc� promot� pres�°arns and s�rvrces fcar City resacients. � -�;r�� � � r �r; -Y'�a +��� ,�., r .� � . .�� . r r. �r�- ar-r •� • [ .r ��r• � � -r� ��� �� �• _ ^ rr - ♦, _ � . - • - � - . � 5. �.� ����rr°�s�����av� �f the C;��yy ��` ���t��, I��ill t�e c��p��-�t�S7�a I�i11 -cvarl� tr�vvar� �oz�s�risus build�ng ar�d gain va�ue froln di�rers� ap�onsa I wi11 ap�roac� rr�y positlor�. and r�la�io�ships �vith a�ositive atiitude. I�vill consider f.�e bxoac[er r��ior�al and statewide itnplrc�t�ar�s of c��cisio�so I uri11 w�r1� �ith the Uu�versities, �I5I7, the C�arnb�rs c�f Co�a�-t�rce, ���r g�v�r�mer�.fal �ntriies, a.n�d lacal �onprafit agenci�s a�d oihers as partners o� ca ar� issucs, 6m �� a�°�p�°���n�a���� of" ih� C"aty af :I3ca�t�n, ��P� be pr���°�ssive �nd r�cep�a�v� �c� ��vv id��so- ��ill ��oz�2c�t� iniell�gent anci thc��g�itfi�1 ii�r�avatron w�ienev�r possiblem T will' be'sensit���� i� the n��d fa�- c;c�mproxnlse, io thirr�s: crea.tav�ly, anci improv� exisiing znUCiels when nec�ssary, I�ill �S�e�Z 7n� 1c��wl�dge of 1aca� �over��e�t curreni and growin�. 70 �.s a�°e�ar��se����ati�� �af t�e �ii3P �i S���i��, � w�ill �mi b� ci� ' q�ae�t ° p�yar�� c���es avv�d ��� �itym I will nc�t b� �ra arr�ars on asay �zt�! taxes, uiiliiy service charges, ar other e�blzgat�ons o��ed the �I�a Elected �ffic�als a�d appc�inted aff"�cials� boards ar�d commissions must adh�re to �he followu�g "T�xas statut��: ���► i; s ;N-., . (Jpen Tvle�tings 1�ct (Tex. C:�ovta Code. �. C�, 551} l�ublic Ir�f�,z-�t�at�cr2� Act/C7pen.�Zecords`Act �'I'��:: C�"rc�°v�: ���°co .��: �4r:'��2}' Coztflicts caf Interest ('Tex. L,ac. Canvt. Code, �h, 171; Ch. 212) C�ificial �isca�duct (Texe Pena1 Co�e, Ch. 36, Ch. 39) 1�Iepotisna (Te�. Rev, �iv. Stat. Ansz., arts. 599ba & 5996b) Whistieblovs�r Protection ('Tex. Re�t. Civ, Stat. An11,, art. 6552-16a) ',• . � � 5.�DurDacwuenfaiNcaufulfonsW6lEtliiccPoGcy-,0.rncndmml.DQC �o�.petiti�7� �idcling a1�d Pr�cureraaen� (espec. Tex. Lac. Gavt. Code, �h. 252) Si�t� F���� �,��s �riber� ('Tex, P�na1 �ode, § 36.02) �aer�i�� of Pub�c, �erva.ni or Voter (Texa Pena1 Code, § 36.03) Ic�pr.op�r Iniluen�e (Te�:. I'enal Code § 36.04) 'I'amperin� �ith a W�tziess ('I'ex, Per.�ai �od� § 36.04) Retaliatic,z� (T'e�o l�en�1 �ade § 36.06) CJ�fts tn �'ublic C)f�ciais (T��:� Pena1 �ode � 3b,08) C�ff�rrin� C��ft tc� �'�blic Servant (Tex. Penal Cade § 36,09) Abuse �f C�ffice (Chapter 39) Qf�icial I�iscar�d�ci (':['eac� Penal �c,de § 39,01� i7fficiai �lppressio� ('.I'e�, �er�a1 C"ade § 39.�2} �v.[isus� of C>fficral Tnforraatior� ('Tex. Penal �ade � 39.03) Ci�� �B��a� enis Ir� additior�, t:�� �ity �f De�ic�� C"harter, the City �c�ur�cil Ru1es af Procedur�, I�ous� Rules azici �cscie of���ctiori Ethics are applicabl�o T�e Et�ics Po�.icy is desig�ed as a posi�v� �uid� ta tl�e behavior a�d cieco�u� af Cou�cir anci baard �aembers as i��y �°eprese�t t%e c;�tzzens �.f Ue�Lan. I�,i11 voluntaril� acc�t repr�and from �y colleab es �I s�iould a�t contra� fa this policya S�;CT'TC)� 20 'I'has r�sol�tzaz� shall �econ�e effeciive �nsnediaiely� upa� .its passage and. apprc�v�l� PASS�Li Q,.PPI�JVEI� this the day of , 20060 a � V LS1V.L'� .L7.L1.1.J4�1'9.y lYA1�. !. 4Jlt, ri 1 �J�� �. �-L�J,.Y.LL �.� YtlL � � ,��.[�.L�7 +v1.S,.{. �`,j��j.l.'r.Li�ill\.L ��� � 1 YJ. ��1! tl 1.d� L1{� . t./ L��,.Jd ld✓ �4,.1.1l1Yle �� T P � I'' . • - r �r � � � � .� � ;�; � � �� �; � � c:\dacumenfs and settarras\jericharidrskecrp\cammirt�cs resn 3 eampare.dac , r ��* r i ^ , � � , � � �� � � • A. C)a� 5epterr�b�r 7, 2004, th� i�enton ��iy �oun�il �stablished the Gity Council Eih%�s Carnrr�itte� by Oz°dinan�e T»dc�o 2004�?55, which 3s b�ir�g res�ind�ci by C�rdrn�ce I�to. 2009-1s7 �dopt�d c�r� this dat�, �cs �ct �s ad�is�ry bc�dy to ih� I�er��on. �it� �cau�cil a�r� f ssr�es th�t rr��y aris� r�nder the �thi�s Polzcy for the City of T�entar,. ." . � „ - .;�� . .�� •' — SE��"I�� 2o F�.�-�stablishmen� of th� City �oun��l Ethics C;�r�a�rii�t�� and staterrrertt s�f duties ar�d p ose af th� Cr�rrir�itt��, �. ,Ti�� �it3j �ou��il h�r�by r���stablishes the �ity ���cil E,thi�s C�r�rr�i�t�e as � standin� �0 1itt�� �f th� City �crun�rL °Th� ��srr�mztt�� sh�l� e,az�sisi �f Rh.r�� (3) �ity �ouricil rri�mb�rs �a b� app�ir�tec� by �h� 1Vlaycsr raf ihe �ity csf i��ntor�, �d approved by th� .��nt�n �ity ���n�il� °Th� �ifiy �1ar�a��r, ar his or h�r d�sib ��, shall s�rv� as th� r�cordiz�� s�cre� ta the �r�rr�rnitte� and s�all provide s�a�h �a�rninistr�tiv� s�rvic�s as , n�e�ss�ryo � _ -- _ r �� _ . � .� _ .. , �— � .���� � M���� rr ,�. . m � � . . .r� ���€� — 1� � � � �� � �, �- � . , — � . , w � ., � � + —�i�, . � r�� �— � � !� �� • ���- � � _ �r _• � �b- r . �. °°rhh� duties �..nd purpose af th� Ca atie� shall lae �a �dvzs� th� L��n�an �ity �c�a.�n�il or� th� Ethics �olicy �d ta �ath�r ir�fc�rrr��tie�n frcrrn th� �ztiz�r�� of T�ent�r� r�gardin� the �ihics Pr�licy, �oridc�ct h����s �r�d ir�q���es as here�n s�� forth and ��r�sid�� csth�r rn��t�rs �s d�le�ated by th� �ity �ciunc°rl. _� S��TIC7�i 3. v per�or�% ir�cludrr�g, �ny l��t�d� o� c>inted�fi�i� ,�t�f fih� ��ty c�f ��nton; or ariy p�rs�n �c�r�g r�r� b�half csf a public or private �ntity rrr�y reqra�st the �c� itte� tc� ��nsider ar� issu� arisir�g und�r the Ethics �'olicy by f lin� a °tt�n I'Jotic� �f �r�tenti�l �Iiolation, (�'IYi.YLIC�g9), c�f th� �thics ��I1cy �a✓ith the �ity �ecret . Th� City S�cr�t shal� rn�k� � c:crpy of th� i^dotic� a�d pra�zde a copy �f th� I�iotic;� tc� th� El��t�d c�r Appornt�d C���i�l �rho is narraed ir� the T�otice, and tcs th� �hair of �h� C:orr�mitte�a �J��h�n thirty d�ys, th� �hair sh�ll place th� not�c� or� th� �4��nda �f th� C"mrrzmx�te� and th� �o i�e� shall prov�de nr�ti�e �f th� me�ting t� the �,lected or App�inted (7�ci�1, �nd rr�ee� arad �c�ndu�t hearin�s, �s ne��ssarya °Th� �o itte� may, in �ts ciiscreiion, det�rmir�e tc� adv�s� th� �ity ���rncil �n ehe I�ic�trc�, "ihe �o ittee m�y ��t�nd this tirrae perind if the �e� ittee r��eds additie�n�l ir��'nrrnation �n c�rdex t� prop�rly ad�r�s� the Ci�y Ca�uncil re�ardirt� a�y rss�u�s raised in th� I��tic�a i , , �, ` � ���, 14o04a — F��r��ar��� irat�r��t.::w��"�l Any afficer or employee of the city having a substantial interest in � business entity ar re�l praperty, as thase ��rrr�s are defined in chapter 1i1 af the Texas Local Government Cocle as it ��vrr reads ar may hereafter k�� �mendcd, sh�ll comp�ly with Chapter 171 and, if necessar�r, shall a�stain frorri voting an a maiier invalving the business eniity or real property ar7d file an affidavit settinr� iarth the substan�ial interest in the rnatfer to be voted upon. (Ord, No. i9-86, § 2, 12-11-79; �aPified 1-99-80; l7rd. No. 99-�057, ,4mend, No, 25, 2-16-99, ratified 5-9-99) ���. 14005� o t��pi3�i��ale:�,� iJo pers�r� s�all be appaintec� to an office or t�e emplayed by the City af Dentan who is P�elated ta any me�-nber �f khe council within the second degree of a�Finity or the third der�ree ofi e,or�sanguinity, and this sh�ll apply tn heads of departments in their respective depark����nfis.. i his c�oes nok �p��ly ka � person �vhc� was appaii�fiec� ar �mployf;c� by the city prior ta th� el�ciir�r�i ar �pp�intment nF the c�ur�cil �r�ember. (Ord, 111�a. ?O�C�-�??�, �,-'�mend. No. 2;�, 8-26-Q8, ratified �11-7-CJ6) � .�;, _ r��� /�, f'i, . % �I% �� � �� �I �� � /�� J� � J / �� ��i � 1 ��.�1:���,� !1. � �1��5`� `�I�� QI���TI.��TI�t�T �e�a 2-30e � Irr�prc�p�r disclos�rr� of c�r�fider��i�l inform���or�, ��� I'��� 1 �� I (a} � ci�y offcial, incl�ding a c.ity council rrrember or a board or �ommission member, or city employee shall not intenfionally or kna�,vingly diselose any confidential government information gained by reaso;� oi ��e officiaf's or emp(oyee°s pasition. (b} �onfidentiai governmenf inforrna[ion is defined as= (�� All information held by the city deemed confidential by la�v and ciearly rnarked as confidentiai; �2� �ny information frotr� a m�et�ng closed go fhe public pursuant tQ the s exas Open fvleetings Act; and �3) Any information protee�ed by atforney-clfent, aftorne� 4vork psociuci, or other applica(�le legai priviiege. �G) lt is ar�`affrmative defens� to prosecution nr`discipiinary action'�f the city official or city employee establishes thats • � ��)�-::•.The information,being.disclosed�is:r�o:IQngerconfdential go�ernment�inforrnatior�; � �2) -The information disclosed from a meeting closec� fo the public pursuan� ta the iexas Open Meetings A�t �s pub(ic informatior? under the Te�a� f'ublic Information �c�, so long as the city offic�al �r city employee �oes not reveal thak it wa� discussed i;� a c(osed meetir�g� �3) �he disclosure of iniormatian frorn a meefing c�osed ka the public pursuant to the `�exas Qper Meetings Acf is between a ci'ty employe� and/or city officia(, but only to the e�ent necessary tQ implement �(ty policy o.r city direct�ve; � (`�� The disclasure is a confidential reporting ofi ifle�al or unethical concluct ta author�ties designated by law; or �5) The disclasure is in fiurtherance of public safek}=,`°and is not ofherwise prohibited by iavv. � i�) � violation of this section i� a cfass C misdem'eanor punishable in municipal court by a fine not to exceed five hundred dollars (�500,00). ie) In addition to the criminal p.enal4y, provided in �c) aboue: . ��) An emp(oyee who violates fhis secfion is subject to disciplinary action by ih�e city manager, up fa and including dismissal. �2) A city offcial, including a board or commission member, buf excluding a city counci( member; who �iolates this section is subject to disciplinary action by the city council, up tQ and including remavaL �3) �l city couneil mem�erwho violates this section is subject to � pubfc reprimand by the city councilo (ord. tvoe ?ooset�o, � 2, �-�s-os1 = �l:i �wr �� � � , , �; � , � ` � , , � °! , ��; � _ �, N , , � ; 1�� ., ,, � r , AD.MII�IISTR,ATIOIV � 2-80 �7IVISI01`� 2. QUAI,LFICATIONS FOR MEMBERS ���, 2-6:Im �ecg�isw�,rr�.eri�s �'eneraI].� Ear,7�. merciber of' a. board. o�° commzssion, ii� addition to qualifications prescribed by federal c�r state law �r ord�siaa-�ce, shall he a quali�ed voter of the city. iCade l96(�, § 1-21(a); C7rd, No, 93��140, § I, 8-3-93) ���0 2p62a �c��fii�t crf zs���r�sto A member o�" a board or cau�znzss�:o� of the city having a substantial intezest u1 a business entity or z°eal pr�7perty, as �hose terms are defined in chapter 171 of the Texas Local C'sover:n��n.t C;ode as �t now reacls or may hereafter be amended, sha1� comply R�ih chapter 1.71 and, �' necessary, sl�a.11 abstain from voting on a matter involving the business �ntitq c�r real property �d file arx al�davit setting :forth the substantial interest in. the rnatter. io be voted upon. (Code 1.966, § 1-22; C`lx�r�. %ra. 96-154, § II, 7-9-96; Ord. No. 99-268, § 1, 8-3-99� �iaar�ter i°efer�r���—�'ersan�l anterest of officers and emplo3Tees, § 14.04. Stat� 1�.� �°�f���r�c;�;•---Cc�flict of inte.rest, V.T.C.A., Local Govez�nme.nt C,'ode § I.'T1..001 et seq, „; "-,� .� �.� Should a boarci. or cc�msnissic�n member cease to meet the qualifications prescribed in seciion 2-6:i. az• 2-(�2, lf appZic�b?e, or �botz�d s�eh �embQr be convicted c�f :� fe!�ny c?uz°�.n� his �erL-n of 5ervice, suc17 ;failure o.r cor���irtaon, as t1�_e case may be, shall be cause for removal. iCocie 1.�66, � 7�-�3) � �eco 2-�4m E��eg�t��a�rs� T�e prov�sions of t;his article stiall not apply to task forces, ad hoc committees or other commissions established by the city council fro� time ta time to make recommer�dations with r°espect ta a partzcular subject or issue and which are not intended to be perman.ent iu riature. (Code 1.966, � 1-24) , , I�To board or commissi�r� member shall be eligible for appointment to a board or commission fo:r more tha� three (3) consecutive terms on such board or comnmission. A boarc� or r,ommission ane�ibez~ ti�h� has se:rvc;d three (3) consecutive terms sha11 not be eligible for reappointment to L-hat same baard or camrnissic�n for a periad of one year. (Oz°d„ IVa. 93-140, §:IX, 8-3-93; Ord. No. 93-212, § I, 11-16-93) _ �e�se 2a66--��8f�, I�.c:s�a-�yer�m humar7 services cosn�slittee, § 11.-61 et seq.; park and recreation board, § 22-1; ctevelopment review committee, § 34-6; board of'adjus�ment, § 35-41 et seq.; historic landmark commission, § 35-236 et seq. � SupP. No. 21 163 t , � , r ff ;�, f '`�. ; �„ N"` r r ;� ; � r' �;���,� �Y r ' ,;.�;>� _ .ATT������ �Fr�Fr�x., c�� '�"�x�s (yI2E(� :^,1;�30I7 � � � �� � e�,� � � �,nswers �a the rnost frequent-ly asked q�aestions about t6�e �exr�s Can�dic:t c�f la��er��i �.a�vs f'f�' %�� ���� , ' ; �!`;,�,�,'1�� ,if�r�� �� �,� ���y, ,.a ��RfU 10l'11 � f � � � �� tr r l. �GVhat �anflict �frn�te�-esi laws �pp1y t� local public officials ii� T'�xas?oa....,e....o.,..o....a.,�...,., 1 �. L7o conflict c�f interest lavvs app�ly to persons appc�iratecl to ]ocal bcrards �nd c�mrnissi�i�s (c.ae, p1�1�7�1n� �nc] zoning �n�x�massiorr r��ernbels)`?o�a.....�..� oo.�a. 1 ,....,.,a.o.e...ao..o.�. 3, �I)o cai��flici°of �ii�tez��st �l�tivs a�p�y ��i� �tt�7����a��ers of purely ar�v�sory coan�r�7ii�ees �I�at �re estlblishec� by ihe loca� entity?,,.......o...a.o,...�..,...�...�..,..,o.oa.a.o......o.o....� ..............a......,,.4.,..,,..,...2 4. W11at types oiissues are covered by T�nas eo�i�ict e��interes�t laws? ...................o.o...o...o..�.. 2 S. What is tl�e definition of �"business �tltity" foi• p�lr���ses of°the conf7ict of int��est l��ws7 �. 2 6, What is consiclered a��subst�ntial ii7ter��t'" an a b�,zsiriess entity (s�ach th�t� it �vo�,�ld �� amoul�t to a�ot�;ntial co�f�ict ��� �interest)'? o.oe..o.�a,...��.o.......,..�o,.,�..,�o .............�......,�...o,...�......,. a 7a Is the f��t t11at �]ocal c�fficial fls ernplo�ed by � l�us�ir�ess �ntity suffirie7�t tc� �;reate a pot�ential c�nf7ict?....,......,o.. �' ..e....e..,...00...,,...o,,.,...�ao..,o.....00,..o..�,..........o,00.....00.�..�..o..,.��...�..�,,. a 8. V�Jh�t is the test for conflict of i17�terest re��rdin� � br,lsiness er�tity`? a.�...so,o .............o,,.,o.......a. :3 9. May an indirect benefit frc�m a�ont1°act wit17 a t�usir�ess constitt�lte a��ssible c�ar��l�ct ofinierest? ..........................o...a...o.o..,o,,..,.........oa...,....,....e....e....,�e.,o,..,,.......o..a.............o�P.,�....� � 1_0. What is co��s�d�red a. `°slibstanti��1 int�res�"' ir7 ��al pro�re�-ty (s�.rc;l� tha�t� �t �voulci an�Yaunt to a pat�l�ti�l �c�nflict of int.erest)? .,�...,,�.,�.....o-..o.a..�e..a..,.o.....aa,,.o,,..P....o.e..s....o ..............�o.,..,..�.0 4 I 10 �hat is the test for conflict of iritei-esi re; ar-dira� real pro�ei`t�? .,...,...., .,.a.a.�...,...�...a.oP...,....a� 5 12o Nlight the part—time ar sum�ner job of� an �f�r;ia1's cl�rlci c��e�z�� ��onflict of int.e�esT,`� ....�...e 5 13. Ii�Iay a local r�fficial discti�ss c�r vaie on �r� itezn flf th� eff�ct <��f the vot� on t:�a� �J���c��.l's busin�ss or propei-ry interesi is no differen�� �t�I�a�n rt� ��"fect c�ra th� b�rre;r�1 ptlblic`�o...o�...,..,..0 6 1�&a ��Th�t actions znti�st a lacal official t�l<e i:{`the o�fic,i��l l�ras � conflict of �nterest Lrnd�r chapter171? ...........................a....,.,.o.....ae.�o..�..o.........�..�,�.,�...e��.a.vaoo..o..a...e�...o.....o.�....�..,....o...o� � I5. May a local offi�i�l d�liberat�e �bo�zt an issue �vit�h which i�� ��Fficial has a coxaf�ic� ofinterest iithe offcial abstains frorn v��rn�? or� the �issu�?.......,..,.a.....,.e.�„o...,.,,...e.�.�omo,,,.,. 6 �16. Vlay a local entity sep�rate cr��� an itein fi°c�rz� �. l�ud;et �Lo �l�lo�a t17e �ff°i�i�1 �vitl� �t11e conflict to vote on the bud�et'? ..............e.a,......�o�.a....,,,�..e....,..oa.o.,.,.,...,....00.00.oPOO.,....aa.,.�.oaoaoo, % 17, Wha�t may a local �ilt�tay do zi a. majority <7f`th� mez»bers of ih� g���v��-z�zn�ntal bady l�ave a�onflict of interest iegardrn� ��1 itez� to l�e �onside��d?.�,..oe..e..,,.....o....,.,..a.,..,.....�.... 7 l 8. 1V1ay a l�c�n�e rule ci�ty provicle further con�lict r�f iilterest lii�it�tions on ��its city offici��1� anclemplayees?..,.......e .............oso.......,.....o..,....�.a....,�................,............�...�...o.......a,00..�o...u.... `7 �19. �re there s�tate statut�s t11at pi�ovid� s�t�°i��t�e�• cr�riflict of interest 7°estrrctions for par-ticr.z�aa° situatio��s �r for cert�ir� public c�fficials or �that c�ntain ad��lrtzot�al reportznb ��c��,�ir�rxreY���s`�, 7 20. l�re th�r� spec;ial conflict of �nterest �l-ovrsions t%�i �pply to t1�� selec�ion of � loca.� depositoi°y?......e .................................e..o.,.....a....e.o....o.e..,...a,.e,.�.,,,..�....oa.�.,o��000..o..o,...00��..o.....� F 21. Are there speci��l conflict of int�rest lavvs tlzat ap�ly to juc��es?.,�..o.,.oa..o..o�.o,..,o...,.a,.,.a�,,...,. � 22. �re ther•� specinl col7flict of int�t-�st la�,vs ihat ap}�ly to lawyers (e.g., ci�y aito�-t7eys)? ,oa..o., � 23. If �n official's vote on a contract violaies t1�e conflici of"i111erest la:vvs, is the ��ntrac% ille�al lncl void? .............o.........,......,..........o........,.o..........,,...o...oa...,.....�..o....o...�o..o..,r.,...,.,a.a.00 9 �4. 11✓I�.�st a l�cal of�cial be y�rnov�ci fil•oin of�ice if the aff�cial �iol�:tes �t�k�e �onfl.ict ofil�ter•est laws? a....,..,..o ................o...e.,.�........o.....o...,.o.,.o.,.........°o.,.o..........�....,,......,..,.,.,�e�,�... 9 25. l�ay a pe�•son be cl�a�ged with ��i-�ine rf tlie c�fticial vaola�es the c�raflic� af int�rest la�v�s?10 26. I7o�s the cot�flict af ir�teres�t law apply �tcs cl�rec�tol-s of �n economic, c�evel�prrrent� carpar�tic>n? .....................�.....,.......,..,.......,,........,.....,,...,,............o...,.o.......,,..�...............�...a,,, l0 27. I7o th� ��n�flict of int�r�st laws �p��ly icr boaa°�3 members of � rn�.anicipal �a�rlity cllstrici�au„ 11 28. �i�a ��I�e �;ar�lfiic:t C>'f i17t�r�s't 'I�a�vs <��piy �o �rn� t�ab�l°s �f �. loca�l gc�vei-a�in� boc�� �vho �h�ve � direct, personal matier pencli�g �efa�e the gover�ing bady?........,o.,o..,..o.a,.,.ao.....�o�.o,,,u,.,o I 1 ��n�pl� �fticiavit..,,..,...�.,,.a..oa..o.......o,....00�e..,.a....,,......e,.,.o........e........o..,....o,o,..ao.....P...o�o.o.o.....o...a.. ] � F� � �i„ �� �,,, r � �� � Every iirne a loaal public offici�l particip�tes �n contrac�tin� wii�� his oz° l���r� g�ver°nrr��nt�.l e��ity oi- a�vns real property �hat m�y l�e �ffectecl by that ei��t�ty s ac�ions, t17e of�cial n���5i ���AZSicler vvl�etl7er k�is or l�er cliscti�ssiora, clec�si�n vr vote �17 an at�ern wi�� vrolate either• T�;�as co�7%7rct of' �in�erESt laws oz• local cor�flict c�f int�z°est }�z-ovisions. l�u�blic c�fiicial� a��ed t:o b� a�v���� c�f t1�� applicable stal�dards for d�ter�ni7�i1�� �vh�n slrch a conflict of it7ter�st iTZay exist and 11o�v such conflicts nl�lst be �hai�clle�� Th� foll�wing questrons at�� ���aswers provic�e a lay persor�'s �xplar-�atzon of the ger�eral cor�f`lict of u�te�-est laws �iha�t appiy to Texas lacal afficials. �'hzs har�clbook. provid�s ger�el•�). ,�uic1�11c� a�1 tl�e issu�s ra�sed �a�i tl�as �r�a, tiVhil� tl�ie I.�ocal C�overnment seciior� o�� tlz� �ftice �f th� Attocney C�eneral is �.vailable to answer ger�eral c�uestions about tlazs articl� fi•om lc7ca�1 c>fficlals, local ofiaci�ls sh�ralc� �crnstiali wixh their legal cc��zl�sel r•egat°cl�in� the a�ipiic�fion o��'the law to the facts of e�ch �ariic�al��- situat.ioz�. 1. 8�h�crt r,���efCie� a�"irtP�s��st l�z�,� r��ply �� �a��c�l�crb�ic a.f�ceczl.s ida 7`�,�cr.s? T'he nenera�l canfli�;t. o��� it�terest laws �for• T'����s �ity anr� �:o�niy r�fiicia�s, as �ve�l as o�f'fie�als ��� oth�r Te��s politi�al subdivisi��7s, is �fou�ncl in �hapY.e�r 171 �f ��he �,c��;al C�ove�-r�r���nt ��de,` �hapt.er 171 establishes 1:1ae st�r�ciard for detei�rr�.ining �vlzefl7 � l�a�;a1 c�fii�ial h�as � cc>nflic�� c�f i�t�rest �tllat would �ffect ��is c�r hez• ability t� disc�ss, ciecic��; oa° vot:� on a par��icula�° itez��o'- C�haptet° 1i1 cc�nflict a� i,ntet-est prc�v�sians app�y t� �11 l��c�l �tibli� c�fficia7s�� �Iii�7ir1 a gov�l-nment�l unit�, "l0�;�1 pla�li� offici�ls" are defir�ed to inc;l�:ir��� 1, electec� officials s�zc11 as tl�� men�b�rs of tl�e city co�ricil �r cour�aty cr�mmiss��ners (w�hei��er° p�id oi �anpaic�)9 ancl 2. appoir�ted offi�ials (paid or �inparcl) who �xe�rcise r�spor�slk�ilities th�t are ,�aore iY�an advisory in nature�� It shoulcl be notec� that oth�r st�te �nc� %cl�ral laws, �s we11 as lc��a1 �rauisions, rr�ay b�, appl7cti�b1� fi�o of"ticials �r� a partic�.�lar• sitla�izal�, �Ihetl�er a l�w is �p�alic�i�lc ��.ep�i�c�s ��� the ��ti�✓ity ��h��t t1��; �fiicial is unciertal�in�. Ofi"icials s�iould tivork �vi.t1� �their own le�al cc�unsel t� c�eter��arie �vhe�her their ac�tivities are su��ject ta any silch additional provisions, � 2o I.�� c°c��flict aaf'inte���t I�c�s° cc��ly �� �a��°��n� �rppe�esaPecC i� l�a�c�� bacr�°c�.s cr�c�' �°�r�7r��as.�i��r.� (�m�A, I,lc��r�z��� trrzc� zodzi�ab c�r�ra�zi�szc�r� �z��sab�a°s)? �l�aptez• 171 ccrnflict of �r1t�i°PS�t la�vs apply t� persc�ns appoil�tecl to local bo�rrls ancl c�m�nissions if the �board or commzssior� e�ercises poWei-s that� �z°� moxe thar-� advisory �n r�a��r�-ea� ��r exa�nple, l���mbers of � city's planr�i��g and zoning cot�rmrssi�n �volalc�l �likely be su�b,�ect: tc� �hapte�- 171 conf7ict of inte��est p�rovisic�ns. �1ccc�r•drngly, th� abzlity of suc11 ofFicials �to disc�,�ss ar vote on �n it�i�n woLi]ci pc�t�ntially b� liln�teci �by these laws �if` ti7� ofici�l i,s consiclerer� to hav� a co�fli�;t of interest on �h� isstileo � TE�. LOC. GOV'T �OI7E ANN. §§ 1 I].C)01 -.01U (4Uest 2(�08). � Id. y 171.002. � Id, �1'71.001(1). `` Id s 1� 2012 Texas Co�7flict of interest Laws Nlacle Easy � Of�ce �,f�the Atforney Gener�al 3. 3a l�� c°���fla�t a�,�er�t�c�°c-��1 l�w,� ��r�pl,y �a a�z��a�b�)�� ��������C�y `�clv�s•�� ����rar�zrt��,� �h�r�P ca�� ��tca�lashe�i by t��a� l�c°c�C ��ati�y? Na, chapter 1%l c��>nflrct of zx�terest �rovisir�ns apply oi�ly ta �17 ofti�er tivhc� ex�r�rscs resp�nsibiliires bey��7c1 thos� that are �dvisary �n 17attiu�e.� ��heth�a° �a� o1"i��r �x�i-�;ises s��ch respoi�sibilities d���ncls an the auihority vested °an hi�z� oi �er by law �t�ci r���t� �ecessarily c���i the title �f � c��nmittee to �vhich ��e or sh� l�e�longs. A ci�ty nzay adopt other add�tional prc�visi�izs cief�nin� ar�cl prrahrl�i�in� c.c7fl�.E�icts ofirrte��si,' 40 ��Iac�t �p�s ���i,�scae.� c�r�e covea°�r! l,,y 2"��cas ���ee�Zic�' of aari�a�e.�t ��zws? "I'ex�s conflict a�f' int�rest stat�.ites do zlot ��d��i•�ss �v�ry �;oa�ceivable ��a�aflic�t th�t may az°is� for a lc>cal �ffic��l. �n �f�.���...ch��,t�;r � :/,1 conflict la��vs �x� �e��°�•�tly f�ir�a�cr�l �r� r�ature an� c.c�v�r• ��o in�in types c�f`conflictse � 1. �a��a�a�ss �n�i�v ���afl.��°���; �onflicts due tc� a 1�',rc�l ��f'�c�al's 5�al�st�n�ia1 fi��nci�l it�t��es� in �"bti�si��ess entity"' t}7at l�as a11 iss��� befai•� �ais c7r hei° �ov�rran7erag���1 unit,9 c�r 2. ���afl prc����°ty �o������tse Coi7flicts du� to ��oc�J �fficia�"s s�,�bstar��tial ixl��nci��1 in�Eez°es� i�a "re�l propeL�ty„ �that wauld be aif�cted by his crr her �ov�n�m�z�tal �.�n7t."s �ctic�n,,o .�o �'Il��t' % tJac� c���i�it���z ca��az "ba�,�i�7es�� ��zPi�`,y"far° p��r�c�s°�,� ��t�� ��r�flac� c���z����°�,�� �c��vs? . . a F'or pG�rp<7ses of "T'eXas �onflict of it7terest lavvs, �"b�,isgness ent�ty"' r�earis� a sc�le pa•opri�:torship, p�rtnership, fiz-�7�, cc�r�oratic�l�g 1�c�ldrn� comparly, j�int-�stocl� ccrznp�ny, �°ecervership, trus�t, cat° any oth�r� ez7:tity recobniz�d by 7a�vP"� Caoverr�m��tal er�tities stircl� as cities c�r sc�lloo] clistric�ts are noi c�r�sici��°e� b�rsirl�ss ��ii�tr�s.'' Accordrnbly, if` the iss�ie beF'�r� a�:ity co�ar�cil involv�s � g�ver�xrri�n�a.l e��tatyy a� cs�ffic�al'� r�latioilship �vitll t17�t entity woul�i not subj��t th�i r�fficial to chaptex 17�1 c�r�ilict ca�f irl�erest laws. Hovv�v��°, �n ecoi�omic cl�v�lopmeni coi•p�ratior� is � 6usiness entliy, s� �r� offcial with � substantia.l az�teresi �n the cr�rporation woulci hav� to comply �vit�h ch��ter 171.'`' � Icf ' Id. � 1%1.007. s f� less con�monly seen conflict is covered �i�n secti�n 171.003, whiclr prollil7its an r�fficial �Fr�m actin� either as a surety for l�usi�lesses d�air�; business witrr the �overnmental entity or as a surety �ari bonds involving public officials. 9 Ic�. y 171,002(a). 1Q Id. � 1"71.002(�). '� �rEx. �,oc�, G�v�T co�� �.rr�v. � 1�1.001�2� �west �oos>. '3 T�X. ���°y G�n. o�. �r�S. D�1-z�� �ig��>; ��-�i �zao�>. 14 Tex. Att'y Gen. C7p. No. JC-547 (2002). 2(�12 Texas �onflict of Interest L,aws Made Easy � Off'rce of the �1ttu�°ney Geraer�aC 2 6�e Whc�� �s ��rasac�e��e�c/ � 66scea5.slc�g�tic�1 ar�t�r��s�" in� c� ba�.sir��y�•� ��7tzrj� (.����clz thc�� �� ��s��alc� �re����e�n2 to ce��i�sat��e1 ��a2fXzct �j�r7ter^esP.)? Thel-e are fo�ir �vays thai � pel�son �ol�ld bc cieer��ecj to have �`°s�i�stantial ir�terest" �n � btisiness �ntity �tl�ai wo�ilcl razse a�oiet�tial conflict o� rntei-est. � pers�7��r l��s a s�.al�st���tial int�r°es�t �n � busit��ss entity if t11e �ersan I�as a(n): �°l�� 5���°����������:����t: Ii�t��e�o�`1��rci��l�o°���-is �10 �€;�t°cer�t�or rnol�e c�f�the �t��1:d1 votarr� s�t�uls ��r shares o�fihe business ey�tity;" �, ����� �������s��p ar�t�r�s�: l�f the of.ficial owns �;ithel� 10 perc�nt. or rnore, �r �1Sq000 ��t° more, of t1�e fail marl�et value of ihe business entity;" �. ���ca���e ���t�r�st: Iftl�e� �f�cial rec�ived n�o�-� than 10 perce�t� a�`hrs c�r ]�er gross incon�� far��the�preti����r�;,y.e�r_��a�-rr-�h� b�l��ness��en.��t��,�� 4. �➢��� �"��n�ly ����k��r ��th �a�y �f &h� ���v� ��t�a°�sts; I�� a �;1c�se r�eiative o�f the lr�cal official has �ny� of the abov� �types of inter�st in a busrness erztit�. .� 1oc71 offrcial is consiciered to liave i11e sal�ne rnt��i°est iri a bl�siness e�tity tha�t 1�is or her clr�se r�l�tiv�s have in ihat business entit�. Ir� this co��texi, close ��e:laiives af �T7 �f�cz�1 vvc�ulc� in.clu�l� persons w�10 �re a°elated to the o�`ficial within the �rsi degre� by e,o��sazlguinzty ('aloocl) c�r �ftiraiiy (tnarria�e)o'� Slach i°elatives waulci inclucl� dr� ofjici�l's fath�r, f�ther-in--lavv, 7nother, mothei°-in-law, daug]�te�-, daugl�ter-it��-law, sc��n, s���x-in-l�w arad the s�ouse of th� offi�7��. � Is th��`ca�•� thu�` cr �'��c�l �f�c�crl �.� e�rzpla,y�� b�y c� baesz��,s� ��ti�y� .s�af f��i��zt t� cs°�c�t� ca p�i��tzc�l con�l���? . �eir�g en�ployeci by a busil�ess �ntit� tivill prevent a local �7f�cial from ci�scuss�a�� or val:in� vn a rnatt�r involvin� that k��isiness, provided mo�°� th�r� �i0 percent of` t}�� officral"s �rewlo�.7s y�ar's �l°oss incom� came �from l�is or her �1n�loym�nt with tha�t busin�ss. �a ��h�ai i�� ���� i�sAf'��° c�ar�p��ct ���r�P�r°cs� �^e��ca�°c�l��� �r �a�s���e�s�.� ea��'dfyy Stat� lativ provicies a iw��pari �est for ascertainil7g vvhetla�r a l�cal c7�`ficzal has a conflicY af �nterest re��r�lii�g a�f�usiness enti�y th�t would plevent t�i� oi�cia] ii-c�n� partic�ipa��n� in a vc�te or discussion �n iha�t itet��.19 T'o detern�ine �vhether a. conf�i�t e�ists that wa�xlc4 pr�verlt tlzat ofticral's pariicipation izl � vote or a discussi�r7, c�n� should apply th� f"ol�l��vzi�g tw�o��step analysrs: �t�p ���� ��a��s������R in��r��t ����ysis): First, ��he rff�cr�l rn�ls� dete�mirae if �he or sh� receivecl more �t�han 10 percez7t of his or izer• ��°oss incorn� in t17� previous ye�r frorn tl�at bLisiness ey�tity or if'he or she owns 10 perceni or �x�o�°e �f ih� va�in� sto�;lc ar° sl7ares of tl�e b�usiness e��trty or has some ot}ier substantial �ar�vy�ershi� rritefl-esf in �the �(�usir�ess enti�y.20 (��e (zuestiol�a 6, part 2, above.) If the of�icial has sLrch an ir�terest ar a�lose 's �TEx. z�oc. �ov° r con� a.Nr�. ��� r.00z(a)(1) (�v�s� zoo�>. ,� Icl ,� 1�. � r7�.00z�a��2�. '� �a. § 171.002���. �y 1�. § i71.o�a. '0 Icf. c� 17�1.002(a)(2). 2012 Texas C�t�f7ict of�Interesi L�ws Macle Easy � Office of�the.Attorney Gener•�rl 3 �r�lativ� o�ti1�a� official h�s suc1� �Y7 i7�t�z•esi;°'� th� of�cial anus�t cc>r�s�de� tl��� s���nc� p�r� o�� the test foi° det�rm�fsling if a co�flict o� intel-est ez�isks, 2. St�� �o (�p��eal ���n���x�� �f`fe�t ����lys���: T'he c�f�ACia�l mtils� clet�rrrline �vh�,tl��r� th� act.ion tl�at the 1oca1 esxti�y is coi�sicl�i°in� vvati�id k1�vc; � spe�ral e�cotaort�aic �ff��t ��� tlle bttsir7ess el7�ity that is r�istinguishable fror�� its �en�;l°�1 effect ara �t�h� pra�licoz' af at as det�rr��il�rierl �t��iat���e ���ffi�ial 17as a substa�ntial ���z�i�ei°��s1 ir� ��he busri�ess engity and it is Zil�ely that the action would have � specia�l econolnic �ffe�t on th� bLasiraess en�t.zty tliat is dr.stiza�ursllable f�°oz-� its �ffect oi� tl�e �eneral public,23 a cor�flict of inter�st r�vc�ulc.l exis��o I�f �a e���flic�t: of iritei°�st exists, ih� official is prevent�cl fr�in �isc�assiz�g or vc>tinb �n ara iss�►c, ir�v�lvira� 1;I�at busi��e�ss entity.'' �o ��1��°�-��r�� i��c����°�e��,b�r���t f�°o��e r� c�r2��°�c:t �vi�1a �r� bz�.��ane�s ���2.stitar�� c��a�,ssibl� �c�az�`7�c� ��"' ��a��r��,➢�t? I� c�,-tain si�tua�io7�s, an incli�-ec� b�nefit �ha�t a lo�;al c�fficzal rr��y re�eiv� renar��nb a br,zsiness entity rnay be suf�'ici���t to c�nsti�t�it� a conflict� c�f znter�st. F�r �;�ample, th� fl��ll�s C'c�lart �� Appeals �c7rac�Nucl�cl t.�at th� r�efir�itior� of "su�bstar�kial ii�ter�st'� dici no�� �istinbLdrsh l�et�vv��n funds r�ceiv�c� direci�ly fi-orl7 � blasiness e�tity and fur�cis r�ceivecl inclirecily, �U1a�th�r a. ��rti��ilar �nter�,st xs � "s�ibs��ntial �nter�s�t" is � c�uestior7 ��f fact.�s IOo �l�z����.�� �����sg�f�r°ecl���� "�z�bs�c���Prce� aa�t��°es�t" �r� t���rl�r°t����� (,�e��°�� ����zt �� �wa��lcX �L�a�a��a�� ;�t� �N�1���CZ�`ZCC� �01�2�IC� AJ�111�L'�°L�'��? �I'here �re �two �vays �hat a�ersora c��1cl be c�e�;m�ci i� h�v� a"s��bsi�ar����i�I ii�tez°est" in a°eal �ro��rty (sLich th�t it �voul�l am�unt to a pot�r�tial can�`1i�;t of zn�erest).'e �1 persan has � substaritial iplt�res� in g•ea1 prop�rty if he �r sh� has: 1. A�2,��90 �g������°s➢�ip �����°�s� �� ���� r��� ��°��a��°�y: Tf t�a� c�f'�f�c���l l��.s a 1���1 or �c��eiiakaZ� c��vnershzp inierest in r�al pr�aperty wo�t1� ,�2,500 or �nore" �z° 2. t� c:ic��e f�rr�f�y �������° �v��3� ��2�5�� �w����°�hap ar�k��°�s� �� t��� �°��� ga°c����°t�o If a close relat�v� of th� loca� offici�l h�s a 1ega1 oi° ec�uit��le owr�ership i�te�°�st in fl��l prope�ty �vorth `62,500 or ��-�ZOre theal thc �f�ci�l is �;ansrc��red �ir� have ih.� same in�erest ir� th� piece of �re�l pi-c�p�1°ty th�i his or• her close relative has �n �t�7� �°eal �roperty, In tlzi.s �oilte�t, clase relatives ofalz officzal dv�ul� il7clucle per.sc�ris ��vho a�-� z°elateci t� the ofi`icia.l �vithir� the tirs� cie,����;e l�y �or�sarl�r�rrnihy (bl�a�d) �t° �.ffinrty (rnarria��),'-� Such rela�t�z�v�s woLZld 1nclude an o�ficial's �"ath�r, f�ther-in-lava, rr�otller, rrloth�r-iz7-I�r�v, clat.r�l�Yerg c1a�s�P�ter°-in-���v, so�, so��-z��-�aw ancl the spoL�se of ih� of�icialo a_� �c1. � i71.0(72(c). �� Icl. � '171.004(a)(1)• zs Ic�'. za �d. �S I71.(�04(a). 's D�allas C'oz�r�ty Flood C:o�vtrol Dist. No. 1 ir. Crvs�s, 773 S.W.2d 49, 55 ('� ex. �pp.--��allas 1939, �o wr�ii). �6 TF�. z�c�ce �ov��r co�F aNr�. § i��i.002�t�>-(�� �vv�s� 2oos�. 27 Icl. �8 1�. � 171.0�2(c). 2012 Texas Conflict of"1ntErest Lavvs Mac1e E�sy � O�fice nf ��lte �lC[vrne}� Gen�rcri �4 1.1. �I�c�l zs t'��� �°e���o�° ��r��lz�t ca�'i��erA�sf e°c��L�ar°c�lr����� a���ap�����r°��y� �5tat� l��v provicles � t�wo-p�rt %est f`or asc�rtainir��; tivhether � loc�l of�icial l�ia,s � cor�f�ict of interest reQarding z•eal prc�pel-ty th�t would prev�nt �th� �fticial :Crom par-ticipatin� in a vc�t� or ciiscussioi� c,n that itenl.'� Ta determii�� �vhe;tl�t��° a��nfli�;t �xists that wc��1� p�-event �tlzat official's pariicipa�io�� in a vot�e r�r discussion, s�n� shor�lcl apply th� fallovv�iz� t�vo�ste� �n�lysis; 1 ��� ��b��K����i��� �����°���-������d�����lys��: �'h� oftici�l n�ust clet�����rrle i��t��,�; cri�c�al�I�as a le�al or ec�uiiable ownership ilztel°est in real pr•�perty �v�l-th $2,50(J ar z�7�re. If th� affici�l 17as stich an �interest or � close z°ela�tfve of the of�cr�l has s�zc,�i an int�rest� 30 ih� of�cial l�us� coz�sicier the seconcl �art of the iest for detezr��in��t�o if � c�g�aflrcti of ii�terest exisfs. Z. Spe���➢ ��a�ns�a���� �ff�c� �r]�1ys�s: The ofticial ��L7st d�terrnine whether it is reason�bly fc��i�ese�able� �that the �icti�n th� lo�al entity is ec�nsiclering �vould hav� a special ecc�nc�a�t�c eif�c�t on the v�1ue ��f't1le�propei•ty tha� is c�istir��gr��ishab�l� frorn i�� �,�ene��l �f%c�f e��� the public.�' Ii zt is ciete����ii�ed t�i��t th� official has a substanti�.l iz�'t�rest zn �tl��; re�l }�r��p�rty �nci it,. i.s r�asonak�ly f��•eseeabl� il�at the action w�u1r� h�,v� � special ec.on�a�ic �ff'�ct �a:�1 tl�e vallae caf ti7e pfl°o�erty that is distinglaishable f�oi71 its effe�t on t}�� �er��ral p�b��c,3' a conflict c��i i..r�t�rest �c>�zlc! ��rst. If a�c���flict of interest e�is�s, t11� offi�;ial is prev�r�te�l fr•�r�� clis�;�ssinb c�r votin�; or� �r� iss�i� inv�lvl�lg ihat business entity.33 '�'he �fact tfiat a� actic�zl w��.a(d �ftec�t p�rcip�rty �1�i�sicaJ.ly �los� to ar� �f�icial's ow�n pro�J�rt�y �loe,s not, in ancl of' iisel�% �stablish a c�n�`fi�t of i��t��•est 1:1��� �v���ul�l prevent �r� of��cial fi°or�s �iscL�ssi���, o�• voting r�n that� item. �`l��e o�`fcia�l rnust c�plsrde7� r�v17�t.Z7��i° the p�°c>pr�sed �ov��x1��-nent��, acY,r�7ra tivoul� h�ve � spe�i�i ecanolnic ��fect o17 �17� vallae of %iis or I�er or�vn �arop��ty that is dis�tin�u7shabl� from i�ts ��fect c,�t� ��h� �eiaet•71 publzc,'�' �c�r ��ample, if a aozai���y �a.ria�xce or pla�tirr�� requ�st wc�uld have �. specral economi� e�fect az� ��ity� of�ici�Z's �wz7_ prc�p�a�ty or th� real prop�rty c�f a�los� relative c��f tlle of�cial, �th� c���ficzal ��>�.r1ci no9: parta.cipat.e zl� th� c�1sc;�assion or vot� c�n that inatt�r� 12. 1V1%ht z`�a���it�t-�i��� or° �earazr��a���ob ��c�� �fj`ic�cel�s chilit ��°�r�t� `e ���flac�t ��ia�tc�a°�,.s�? If � lo���l affici�l's cllild work�cl at� a jol� 1:hat �onsl:Xt�.it�d t�or� t17a11 1� p�rcent of`the �hilc�'s incom� foi° the previous y�ar, that mi�ht create a�oteriti�l corlflict of' ii�st�rest� �foz° the �arent. If th� child hacl suc17 an zntei°esi, �th� pare�at �;c>l�ld �ot vote c�n or discuss l.ocal goverr�rner�ial V�rasir�ess that �vaulcl have a sp�ci�1 econo�nic eff�ct Q�rt �h� ��7ild�s �m��loyer.�' '``' Id. �S 171.0(�4, 3�'' Id. § 171.002(c). �31 r�t. � l�l.00��a��2�. " 1r�. �3 Tcr. � 171.004(a). 34 Id. � 171.004(a)(2); Tex, Att'y Gen. �p. No. GA-796 ('2010). �5 T'P�. Att'y Gen. Op. Irlo. :iC-67 (1999). 20'12 Texas C;onflict of Interest Laws NTade Easy �(�ffa`ce of the Attorney C'ie,��r��al 5 1�o IE�"�z�r �z I�ccal t�f�crcel �f�.�ca�s� s��° �at� c�r� c�� z2��z ���lx� ��fec°� c��'���i� ���l� �a�z t��� �ff�cicrl"s hac�a�z��.s c�a°}�r°��c'•fiy zm2f��°��t is �x� c�%ffer^��a� t�icaa� zt.� �ffec•� �rr ���a� �e�es°�ct' pza�lzc�' Y�s, an offici7l in�y disctiss a11d voie on ar� iiel�n ifihere zs nc� disi�n�ti�isl�abl� �liffel•ence b�tdv�epl the item's effe�t on the local offic�al a��d its ef:fect or� the �elleral pti�blic,36 �o�� e�arrr�l�, � city r��ay b� cansidei�in� the adoption of a setback reqti�iren�er�t that woulc� ap}�1y t� all r�:sir�entzal la�ts. �ucl� a r�;����iren�en� ar��ia�bly �vr�L�lci �ot imp�ct a ci�y ofticial'�y }�rc��pe�•ty �r� � znor�e si�r�ific;anti n�anl7er�tlaaa�i��it�woia�d iinpact�t����p�rop�er�ty �i �t�ier•��tra�°n�bers of the g�nez-�1 puC�lzc� In s�rcla a situatio�7, the c��`ficial cc�uld fizlly pa�°iicipat� r17 t1�� disc�cssic�r� allcl vot�, faf� �ourse, 3f �he of�c�ial's propez•ty vvould be s�ecially �nliar7c�� by 2�hange �az t��e sel�tl�ac1� rc�c��zire:,rr�ei�rt, then it woulci be more likely to pi-esent a�onf`lrct of rnt�erest issue for tl�7e a��f�icialo l�t. Whcet c�c�taoa�s r�rs���P c� l�c�ral �fficic�l td�rh� if ih� a��c.i�el lzce,s ca� c����z�Z�c� �af'i��f��°�s� ��cfe�° c�hcz���r� �' 71 ? If a Iocal o�ficial I�as � coia��lict of interest Lzt�del° �h� t�vo-pa��t test of c�hapt�,r 1 i�, tlze of'ii�;�al ra�trst talte three ac�tions� �'��� �� ����d��ik: Th� official mList f�ile �n a�f�°idavi�t �vi��a the Zac�1 un�t's official record kee�el° statin�� the ��at�i��� and exten� <>f th�: off�ciai"s r.n�e�iest �n. the a�at�er.37 'This �f'ficiavii rl�ust be fi1e�! before �ny vote o�• decrsioza c�n t�le tl�atier is rraad� b� th� e�ntit�.�� A sample conflici of intei°�st af�davrt is a��tach�c� �� �t�ie end af tllzs �z-trcle; 2. Ab�t����� �"�°�m �fls�a�ss�or� a� Y9�� i����: T'l�e raf�iczal rn�,ds�l �bstair� frorr� cli�cr,�ssiarrs c�r� oihei° proceedings regardin� th� item9�� a�nd 3. Ab�����a i�-��� ��tfl�� ��� th� �����040 T1�e �f#iei�il rn�usi r�ot vote on th� it.er��o i5. iti��y cr l�cczl �,ffi�cic�Z cf�Czbe��°c��� c�bor.�� ctea ��.ssc�� �vzt/x avhi�h t�z� t�f�c,�i����hca� cz c°a�Fx�s�� �f. z��er°��� %f �dae t�.f�c°icrl �cb,stc�i��e��a�rn ��t����� �rx t12�z is�.����? , No, � loca] of.�°icial may not �iis�uss an issL�e tivith �vhi�;h la� ��r sh� l��s � confiict a�f� interest ever� if` lh� c�r she abstains fi-orn votin� �r� th� it�m.a' `T�'he statr.ite �rY°ohibits "�°��rtl7.e� ��a�°ircipatro�l'" i� � n�atter if a conflic�t exists,�' If a conf7i�t of 1nf�resf exists, th� +affic�al n�us�t ��1� t.he �°�quire� afficfavit and abs�ain frorn both ciisc�issing anc� vc�t.in�; an tl�e item.�' T'lie aiiorney beneral has opined tl�at a meanb�r of a�averninent�zl 1�<7cly does alat SGparti�r�ate �n �. rraatter" %r p�zipose�s oith� conflr�i of interesi la��✓s l�y �nerely atterad�n,� at� exe�ut�ve sessir�n or� Yhc rrtatter �rld remaining sil�nt during the delib�;rations,4� �Iow�v�rq �t �rnay� b� w���e, tlle opi�ion r�oted, f'or the it7i�iestec� public �fficei• to z°efirain froi�n attenc�ing r�pen or c;losecl zneetirlgs tl�ai� address tlae inatier ip7 wl�ich he or sh� is inter°estedo �� T�x. LOC. GOV'7" CO�E ANN. � 171.004 (West 20�8). -,� ra. � r�1.004�a�-(b�. �g Id. � 171.004(a). 3� Id ao I� �� Id. 4' Icl 43 ��t. � I�I.00����-(b�. "�� Tex. Att'y Gen. Op. No. GA-334 (7005). 2012 Texas Conflict of Interest Lavvs Mac�e Easy � Office �f'the r�tzorney Creneral 6 1�< 1�1"cr�y c� ��ccrC ��z�i�� .���c��°c��e �c�� ��r� iic�rr� f�°�r� c� bcrc���� �a �rl��w� i�a� ��frr..°i�l rvit�a th� �on�bc°t tca v�t`� ��r �h� bzcrl�ei? i'�s, a. gavernin� bociy of a Ic>c�1 eyztity� sh�ll take a s�par�te vot� �i� a��y bud��et z�t�rrr� ilav�ivin� � bLisiness entity in vv}�ich � local off�cial h�s a,sr�ibstaniia�l interest.�e I'he rern�l�ir�a oftici�is rvithaut 3 conf7ic�t 7nay sepai��tely �iisc�zss ai�d v�te �1a tl�e ite�� at��c�lving thai �b�asiness e�ntityo 'I'he official with tl�e conflict rt��y the� vote on tlie fir�a� o�a�rall b�ad��,t orlc� t17e m�tter tor �vhic� there was���� �;�1�11ii�t �is��x�e�c��l���,�cl.a' `I��Z� ��oi�icr�l����ith ihe ce�rl�f7ict inust �lso hnv� �fil�cl �the rec�l�i1°�c1 �ffidavit wrth t1�e of�cial re�ol-d l�eeper l�e�at°ding ihe conflict.�� Z i� ���lacat �a�cr�y cz 1����1 c�nii�� c�o a�`r,� a�a�a��sr���y ��`'#Ia� ����azb�r�� ���t1ie ��v�r•aaa��rztcr,l ��cl� ������ ce �car� f1z�a` �J`'ara�'�re.st r�,��cer�cfz�z� ce� ite� t� be �ar7�iclea°�ci� �'�ha�rter� 17�1 cc�z�f9i�t �f ���t�r�st 1�ws c�cr i�ot prewer�it disc�.�ssaon or vo�rn�, o� t1�.e ztern xf a maj��ity c�f the rr�embers of a�o�r�rnrr�et�tal bocly hav� similar co�flict,s c�f irrt�r�esi cr� tl�� sa.�n� rtel�n,��9 I�owever, prlc�r �to any �1�111��ratrons �n the m��ter, �ach c�f tl�e r�nern��rs of the ��avernrnent��l bociy witl� a cor�flict� griust h�ve �ilec� Yl�e r°eq�rired �ffidav��t rao�i�la �heir int:��°est �rz t1x� i�e�:il.SQ 1�0 16�c�y cc lr.�aai� �°ltil� c�tty° p�°avicl�,�'i�a°tla�r� ����fli�� �a�r�a��r°�°,st li�zitceta�r�� ��,� i�,� c.°at� �f��icdls c�ric� etr��l�yee,�� � '�'�es, a hon�e r°ule� city (� �;ity wit�r a pc>plal�tian o1� 5,O00 or i�t�o�°� tha��� h�s ac�o�it�;c� ��;�ty clzarte�) inay pi•o���ade � f�zr�t�ller �tn�c� �moz°e ��°estric�ive conf7lct c�f ir�teresl�� lirniiations �r� its c�lficr�ls �r�c'� employ�es.s' Such restrictions rnay l�e ��z7t�in��i �n ��a.ty �rc�inax�ce, city polacy c�r rnrit�74ra tl�� �ity ch�i�ter�, �'�r ex�l�ple, soln�, �ities hav� e�tlzics �z-dir�ai�c�s or �i�;y cllarter° prc�vi�zo�l�s tha�t �revent th�rr c.ii3� �o�fti�:i.�ls frvi-n tiiscLtssing oi° �c,tin� �17 itera�s a� tl�� c7ffici�l 17as �r�y ��.n�nci�al rnterest in tl�e item. � �9a �4�°c� �li��°c� �����e ��a`ca�aete� �'lz�t �a c���ic�e ,sPr°icter° ��rzflac�t t�f°i�tc�g°�,�i r°�.���°i�fa��r�� fca�° �carfac�r�l�e�° .sit��c�lze�n,s ����`or° r�e�ic���a px�b�zc� �j�c�c�1s o�° a`hc�� c���r��� cr.c��l��`ia���rl ��p�r^i�r�,� �°eq�a�r°en¢��zf�? Yes, t�her� ar�; cer�tai�� s�t�te sta���rtes thai pY-avzcle strict�r ccrnflict �f� ir��ter�st r�stricti��ns i� �arti�ular areas. Far �xarrrpl�, the�°e ar�; conflict of int�rest stat�tes withaz� uha��t�r 31� c�f th� 'T'ax C�cie that colnpleYely prohi�ii a l�acal entity's �;overnin� body fror-� ap�ri-ovxal� � ta� ��b�teir�er�i �:f a n�emb�r oi that body ovti°ns the �fl•operty �that is th� s�ll�ject of th� t�� abater�ne��t�5' lf a 1cc�l of�cial has s�ln� type �f in�er�st ii� tl�.e itern l�efare the �ov�rnztzg b<>�.�y, tl�e af�cia.� wi11 wan� t��� visii �vit11 local co�.insel as to vvl�eth�r tl�e interes�t� canstitu�e�; a c;hapt�a° � 71 conflr�;t of irrter�st a�° presents � canf7ic�t pur°s�ar7t to so�n� othel- stat� 1a.w. �hapter 176 c�f the L,o�;al C�ovet�nr��e��t� C�d� re�qu�r�s ln���bers of the ��v��°ni��� body ax�ci e�eclztive o�fficers of loc��1 g�ver-rament etzt�ties to �le a c;c�r�fli�t5 �isclosr.zye statemeni relating t� a pe�°son �that the �ovel-mner�tal c�ltity has c,o�1�r°act�ec� wit�1 �r �s �or�sid�r�n� co��tracfin� witi�7 if� thc 46 TLx. L,oc, Gov'T C�nE ANrr. § 171.0�5(a) (West 2008). 47 Id. § 171.005(b). as �� § 171.004(b). 4g � Icl. § 171,004(c). so Id. �' 1d. y� 171.007(b); T�x. Att'y Gen. (�p. Na. C�A-68 (2003). 5' TEx. TaX CODF.. ANN. � 312.204(cl) (WeSt 2003). 2012 Texas Co��flict of InYerest L,a�vs Made Easy � Of�ce of the Attorr�ey Gei�er~al 7 loca] aificer or hrs or Pn�r �`an7ily m�lnb�r h�s a�;ertai�7 bt�s����ess �°�Iatir��ras��ri� c��� �ift ��ist�r�•y r�vitl� that perso�l �x��eclin� ce�-t�in tl�areshold am�un�s.'� It alsv 7��equires � p�r�on �vh� catztz°acts c�r seelcs to contract with tlle local govermnent�l en�ity to file � coi�r��letecl c��7e�sti��anz�air� drsclosin� t17� pet•sor�"s affiliatioiz and bus�z7ess r�latiotlship wi�th each m�n�ber c��f i1�e �overz7il��, �c�cly aiac� executive c��f�ce1°s oF fhe ez�l�tity,'� The c�isclosure for•ms are �z-epar�.cl �by ihe '-r�x�s ���hics �omtzaissi�n, available a�t �vrvw.e�thics.sta�te.��tx.us/whatsnew/c�nflict for�r�s.htrr�, �I'hes� z77ust �b� �ile� with the �l�iity's reeorc9s adn�rnistratar anc�, in certai�l inst�nces, pos�ed o�� ihe In�ter��t�s' ZOo 14�°� �h��°� spe��r�l �(�1�f71�� ��iratete���m°c���isrt���.s dhczf ca��ly �� �h� sele�fior� ��'�e l���c�l cl���.�it�r�? �Y�s, ther� are special co��flict of inter°�st p�-ovisions t}aat �p�ly t.� the s�lecta�za o�f � I�cal clepasitory, Prior �tc� �1967, loc�l er�t�ifiies w�r� prolli�ar`tecl frorn usin� � banlc �s �, de�o�;ito�°�y ��f a� �nelzabe�° �f the �ov�rn�.n� ��c�l��� ��,v��� ��n �r�fticer, dir�c��r ur sh�a�°eholc�er of th� bap�l<,56 I-�o�veve��> this prc��libitic�y� l��s been s�.�bst�niially climinisl�zecl �.ancler° c��irren� 1�w.s' Local ul�its �arr rzo�✓ ca�ztl-nct �vitl7 a cle�asii�ry �v�n i�' a local official ar employee �vith �tl�e duty tc� sel�ct �I�� c��,pos7tory is also an office�, dir�ctc�r oz- share�holcier of�tl7e b�nlc, �.�r��l�ss th� c�f'fi�t�1 c�i �r�plc�y�e� eitl�e�° znclividually c�r° collectively, owns znore t�a� 10 per�,et�t: of the ban14",s sto�k�=g �7� sucl� a. srtuatior�, �th� �ntity as r�q�rir�ci �ko 17��ve the int��resied o�f�cial �t° ezn�laye� follo�v �II of �the proe�clures r�c�uired for � ch�pter 1i1 canflict oFir�t�res�a Tlaese pro�L�ures �vvaulc3 al�clucle �1i��7� an 7.�F�davit., abs��il�in� fi-c�n� d��liberaiians �r�d abst�ining f�°��r�1 %h� vat� re�ar�lia7� �th� depositc�ryo'� If ��r,ajoraiy of ��1ae �re�in�rniia� rnemb�l°s ��f the �overnira� bc�cly vate t�a �selec,t �th� b�nk as �. depositoiy, i�t n.�ay s�s°ve as tl�� local entity's depositor.y.� � hc�me rule city may a�iopt ,stricter �onfl�ct of iritel-est pr�visiorls that �vo�ilci l�e �pplicable tr� t}�� selection oi ��ity d�posltory, For example, a city c�rciilzanc� �r c;ity cl�a.r�-ter p�°c�vision raaay prohibi�t th� selectic�n oi a city d�posit�oz-y if a c�ty �ificzal or el�pl�y�e ha,s ar��y f�ar�ci�l a��te�est in the bank. �lo �4�°� t�i��°� s�ecz��� c°s��f7z�=t` �f'����,��sa' �ca�va t�iceP. ��ppC� ���%arcl��.s? Claapter Y 71 of th� I,ocal C3ov���nment Code c�oes not corrtain spe�ial cc�nf�ict c�f" in�er�si l��vs �that� a�ply t� ju�ges. Ho�vever, =judges ar� subject to �th� C'��cl� o�f Jl.rdici�l C;ofl��uct:a�0 Is� �b�sic t�rrr�s, th�se rules r��.�uire that .aud��s �void actions th�t woulci �sug�est �v�r� tl�� appeai-�r�ce of 3lnpropriety.e1 They als� prohibit jl.id�cs fro�n havin� any fin�nci�1 inter�st �r� �t�y �sp�ct� of � cas� th�t tlley hancile �.s jud�es. Furth�rmore, �lrticl�; V�, �ectiot7 �1 1 c�f" th� �C"��as Const�tuti�:�n pre�l�ib�its a jtilclge from pr°esrcling over any case tivl�er-� he or slxe may 1��ve �7ih�r z� c(ir�,ct persorlal c�r pecLZZ�iar.y interest. Additior�a]1y9 a Jtidge may zzot pi-eside ov�z° �ny cas� vvh�;re� he or she is s� TFx. LOC. GOV'T �oDE ANN. ti 176,00 �(West 2008). See also Tex. Att'y �ien. ��a. J'��o. GA�446 (2006). 54 TEX..I:.,OC. GOV'T CODE,4NN. y 176.006 (West Supp. 20l 1). s� Id §� r7�.00��b�, l��.009 (west zoo4}. �� Tex. Att"y Gen. (7p. Nos. V-640 (1943); �IW-957 (196(�). '' T�'x. Gov'� Co�E Arr1v. y� 404.�21 i(state agencies) (�Vest 2005), '1�Ex. Z,oc. Cio�r' r' Co�� �1.1vrt. � 1� 1.903 (other political subdivisions) (W�est 200�). �� T�x. l�oc. �c�v°��� c���� �Nr� § I�I.�o:�(d)(z) (�v�s� 2oos�. s' r�. § r�1,004. vo Z�EX. COV� 7U�. CONI�UCT, re�r�[nted in TEX. GOV'T CO�F� 11NN.,� tit. 2, subtit, Cy �pp. �(li�est 7005 c4� Supp. 2010). � 67 TEx. C'oDEJUD. CoNDUCT, Canon 2(West2005). 20l � T'exas C o�rflict aPlnterest Laws Made Easy � Office �f'tl�e ,�lttorney Gen���al � related to e��tJzer pa�rty �by affii7ity or cons�nbtrinity.�'- F'or fu�-�l��r irlfo�-mation on �tl�� c�nfllc;t �f inter�st pravisions that apply t� j�zdnesq contact tlze 5tat� �ornmis,s��os� on Judicial� �oi7c�ti�ct. Th� sta.ff of the C`oi��mission �an �� z°eachecl �t (51�) 463-5533 �r ($7'7) ?28-�750� If ihe ejrad�e r� � l�wyer, �the jLadge w��ilc� a1s�7 b�; s�zbje�,�t. to �the ear�ons of �thics �p�lacal�le tc� lativyers �s c�escrib�c� �n the follotivin� questi�z�. ,7,Z, �4s�� t�t�r°� .��r��irr� ��ad�flac� ��f�ae��`e�^��1 l��bvs thc¢� cr�a�ly �� lc��vye�°,� (em�a� ci��y ccta`ar�xzey�) � L.awyers are stilbject 10 a specia] canans of ethics9 tlae Tex�s �7�sciplil7aay ��lles oi :PK•afessic�i7�1 Condtiaat, as a�art af tl��ii• state 1ice�nsin� as attorr�eys.6� �n �basic ie��°�ns� i�h�se r�ule,s r��ui�°e that � lawyer advise his or l�ei- cllents of any poten�ial conflici of inierest th�t th� la�vyer rr�ay �hav� in llis �-�present�tio,z of` a clier�t. T17e l�wyer nalzst alsc� avoid any a�tior� gl��at �vou�ci compromise �t��r� ir�zt�rests of l�is c�z- her client.�� ���r fiirt}aer ir�fo�t°z�nati��ra an tl�� eanflict c�f int�r-�si: �rovisians tl��t app�y.�o..larv�e�s, �:�r���t��t t17�� St�i�� �'�ar-��of 'I'e��as. "I'1-��e �t�f� of tl�ae �`�t�3e �3a�° c��r7 �� leachec� a.�. �szz� 4��-14�� o�� (�oo� zo�-z��z. 23A If cen aaf�ci�a�'� �v�rte �>�r cL c��a���°cec� v��lcet�� f�� c��tz�1zC°t a�'i�r��a°��t 1�e���s� z.s t��� �a�rz��ca�� z1�c��csC c��� a9a��1? 1al�at automatically and �ot i1e��ssarily, It is rmpo��ani �c7 r7c�t�; fihat the �t�ei°�� "vc7id" zs nc�t tl-re sain� thii�g as the terxn `°v�idable."' The ladv says �h�t �r1 �ciio�7 talcen in vi��latiori c�f' the �c�nflzc� of ilate�-est 1a�vs is voic{able, �1�eanin�� tha� at co�lld b� declar��1 v�id �by ��;c�tirt. br.at t�i�� t�� ��tior� is z�c�t voicl ��ut��rrlalr�callyo I1'��� co�art���r7�l�s���hat�arr� �offici�l's vote o�°�c,1�l7er����c;tiur������i Lt rria���e� ��i�la.t�ci th� cc�nflict l�f inte�esi lawvs, the violati�n wo�.alcl r�ot� zerider �he �altixnate ac�tian �r ���.�>ntract void��le unle5s it� vvc7ulr� 7�ot hav� passed vvithout tlge v�t� c�"tl�e c�fficral wh� vi�la�:ed t11� <;c�r�fli�t of ita�terest law.b' ��a l��.s2��z l�oecal ��f�cical l�e r�o����vecl��°�r�r r�,f�c°� �f��h� �f�i��cei �,�i�alc�t��� t17�� �c�r�,fP��i c�� iazt��^��t Zc���? . . . St�t� law do�s n�t provicle f`or an autoi�n�tic reinovai of � lc��;al official f'rnrr� c�ffice clu� t� ari alle�ed or provera vic,la�tiol� o�` a c�nflict of irrte�•�st la�v," H�rn��v�r, if slrc� � v�oi��ior� is ps°oven, rt �nay be used �s th� basis �far a removal o�t 1 mel��ber of a governil�g �bc�dy for snisc,�racluc�t ��incier state law or other stattirto�°�r or �rty cha�ct��° �r�i���l°i� that. �llc�� � locc�l official �t�� b� �°�mo�r�ci fc�z° c ause.�' ""I'EX. CoNST. art. V S 11; C'it � o Oalc Cla� ' v. State, 79 �.4V�. 106$, 1069 Tex. 1904 � Tex. �tt' C'xen. C? Noe 5 ) f� �f i )s Y �� Divi-109 ('l992). 63 TEX. DISCIPLINARY IZ. PROF'L C(�NDUCT 1,01 - 9.01, r�eprt�nted ir� TEX. GOV'T COI7E F�NN. tit. 2, subt�t'le. Ci app. A (West2005 �4c Su}ap. 20'l l). 6� ld 1.Q6 - 1.09. 6' TLx. Loc. Gov''r C��� ANN. y 171.006 (West 2003); Tex. Att'y ���. C)p. I�io. :fC-1S5 at ;3 (1999). b6 T�x. LOC. GOV'T ConF ANrv � 171.003 (WeSt 200$). `'' Id. §§ 21.025, 22.077. 2012 1�'Px�s CoP�f(ict of Interest Laws Made I;asy � Office qf'�I�e �leor�ivey C;eneral 9 �5'. 10!�c�y c� ���s«:� b� �la`ap�ec� wvi�h �� ��°��� z�'th� �f�c���Z ��z����1�s� �a�re ��a�af�i�� ��'A�ater��.��` rc��9s? � Yes, ehapiei� 171 of tl�1e L,ocal Govei-n�ne�nt ��cle provic��s ���i,�r sit���atioz�s �n wl7rch a p��%�i� of'ii�ial n7ay be prosecutec� for his or �her acti�ns ol° �l��ctic�za ��garc[ing � conflici o�i in�er�st,6� S�ecifically, � aocal o�ficial aan be �ros�ctizted far: 1. ��"��➢�a�r�-�� �'� �'�1� a�t� r��f�d���t �c��tin���i ���������la�t� I�ailil7n to �le �n affid�vit �vzth the �fficial recc�rd keepei- noting t1�1e official's s�lbst�n�tial znterest i� ar� iterrl if` sixch a��Iiix� as requir�d }�y L,ocal C'aovernr-nent �'ade sectic�n 17l .004,`'� Z. ���°���ag�����n� a�� �Afls��ss��a�� �����°���� �� It�� �`��° ����h '�����°� �� �a C°a�a��9�d.�: I�iscussin� or athe�-w�is� participa�in� o7x an iteln if` sucl7 parti�ip�tic�n is prohrbitcd Lrrader I.,ocal Ciovei�nment �ode sectiorr ]%l .004 due to a con�lict c�f in�ep°e�t o» th�t; r9:err�;'o ��r�i�a� �s ��a�r��y fo�° �'�,°�,�i� �3����n����s: Ac�tii�� as a s�zg-ei�✓ �`or �ny busiz7�ss elzti�y thafi 1�as worl<, %Las�ness or a�;c�ntract of� any amoun� �vit1� ti�� lc�cal er��tity;" �x 4, ���-v��� a� ��u�°��� �°o�° �,o��l �7��c��� ��r�a�s: �hciing as � s�irety ca7� �r�y afficial bc�n� �h�1 is rec�uirecl for an officia] o# a bov��-izmental body of ih� loc�l e�«1:rty.'� �Iiolaiion c��' any of the �bove four �t�rns cay� be prose�La�ted as ���ass ��nisd�r�7e�n�r73 and as �ui�ishab�e by ��ine not ta e�ceed ,�4,000 �nc!/�r �.rl� to c�ne y��.�r ir� ja.�lo�'� klThether to prc�s�c�..rt� an alle�ecl violaiio�� ofthe �oa�flict of in.terest laws is subjeci tc� the pi°�s��Lx�.o�°ial discr��ic�r� ofl:i�e local distric�� �tt�rney or pros�cuting criln3rra� coti�rrty attor��iey. 'The ��ta�°rzey b�neral do�s ���t hav� ori�inal jurrsdictior� ir� p�rasectzte viola�%orls ot �ot�flict o:f int�resi ���vs by pLik�l�c o��c�also 26, �o��� ��¢� c°��a�licP ���,fi�zr�t��°�s� l�a�v c�p�l}� �'� �lza°���t���°s a�`cen �c�r��,.�azc cl��v�l���¢�n� ��v p��c��i�n? , �}z�p�tei• 1%1 of the L,ocal �;av�rnr�7ent Csoci� does r�ot a�p�y �to tla� �.�ir�c��tc��rs �f �n ��or�c�ma_c develop��ent col°poration c���.i�d uncl�� the L�ev�l�prnel�t �arpuratiol� Aci; ���' 1979 l�€�c�use ��.i�;h ��rp«rations ar� nat corlsid�reci io be goverr�mental �ntitiesa'' Hc�wev�r, �sta��, ]��vs Qovea°t�i��,� corpor�tions ma.y have their own �rr�visi�i�s gc�ve�°ninb �;er�ain �orif`lic�tso Fo�° insiar�c�;, ,state l�vv ga�rernir�g l�c�npro��it coyporati�i�s prc�hibits loans b�in� Inacie �y th� cc����oz�a�tiol� tc� iis director.'� ":[E� � lc�an is n�a�le to a dir�ctor, il7e dia°ectc��°s tivl�o vc�te for �r�alcir�� t�� lo�n �nd any c�ffic�rs p�i-�icipating in m�ldi�g tl�e loan `s1�a11 be jc�intly anci s�verally �liable ta �the cor°par�trc�n for �h� a7nc�unt of s�ich loan u11ti1 repayr77�nt the�-eof.""' A co�poratz�ra's boagc�� mer�rl�bers s��uld also ��heck the coe�porate bylaws f�r �ny cliscussir�il of �oard coirflic�s. �s Id � 17'1.003. �>:' rd. � 1°Tr.003(�}�r�. '" rd. " Id. �S 1 i 1.003(a)(2). 7z Id. � 17].00(a)(3). '� Id. § 171.00�(i�). 74 TEX. �PF,N. CODF ANN. � 12.21 (�Vest 2011�. n Z'exa Ait'y Gen. Up. No. JC-33$ (Z001). '� T�X. BIJS. Ot�C;s. COr��: ANN. 5 22.225(a) (West 5upp. 2011). " Id. � 22.225(b); Tex. Att'y Gen. Op. No. JC-338 (2001'). 20I2 TeKas C'onflict of lnteres�t Laws Mac1e Easy � Office of Elae Aitorr�ey Ge�ercrl �0 �7 �� �I�e c��i�licP c�f'8�z�er•��t Icc�v� c�ppl�y t�� ��7��r��`�r¢�ra�b��s �a�'ce z�a�����i�c�l �etil���r �zstr�zc�� Yes, C;hapter 1%1 o�f 11�e I�ocal C'rov�rnr�ent Code does apply ta n�embet-s of a�ruz�icip�.1 �.itili� dzs�ri�t (1VIUD).'� MUL7 b�arci i�l�mbers may not partrcipate 1n � c�i,s�t7ssiol� or va�te an ���atter involvil-�� a busi�ness ei�tlty oi° z-�al pro�erty zf`tl��y have stiabsl:a�r��ti�1 ir�te��ests i�� �the �natler a�d �t is r-easonably fo���seeab�le that actaon on tl7e .�n�tt��r vvo�.�ld cotlfer �z� econc�i�ic; �ben�f�t an k�� l�lisiness entity or r�al p�•opei-ty.'� �hapter �171 alsa ia��pl�tLS ta � 1V�LJI� boarc� xr��rr�b�r ti�7e s�lbstanti�l flnt�r�sts t�f c�c-�air� ll�ar t°c�at°r�c;s irl a. busi�ess �rixrty t��• r°ea� �c°�j��;rtyo Ro �cR. .Da �Iae c�ra�a�lict of�ir7�e�e�� Iczrv� ca��l,y i� ����ber.� ��cr T�accr,l ��w�r°��ra� barC�s »a,Ip�a l�r��� c� cl�r�ct, ���°sa�ace% �rrtter° p�a�clir��; bef�'°� �h� �ov�r°�ir�� b�c�y a �hapte�° li1 of the L,o�a1 C�1ov�;nlinent �"�ode c�oes no�C ap�ly to c�rre�;t, �ersox7a� �raatters of` a rn�ir�b�r of� � loc�l ��v:�r•�ain� hra�#y. It.an�ly applaes to p�k�lic r�ff"i�i.als r�vl7c� hav� � s��bstan�ti�l fii��ancial int�r�st� ir� � bldsi��ess entity o1° real pr�:�p�rty, :Hovv�v�r, p�il��ic policy i��� T�xas ba�°s public officrals f��or7a casting a decidin� vote in a i�l�tter cora�;ez•tain� ara issire in oul�rch t17� niii�ial has � dri°e�i�, pefl-sos�ial int�r-est,�' For exa�nple, a rne,mb�i° of a go�ei-nit�� l�a�y �rc�Ljl�i �� disc��i�lifiec� frol� vo�t�ir��� as� a reso�ution �to pay his �i I7ez° l�;a�l fees �r ��17e legaZ f�es c�f an�ther inerrl�ber inc4icted ot�. e�har�e�s for �)pen 11��et�ir��;s A,ci �iol�t�ic�ns." '� Tex. Att'y Cen. Op. Nc�. JC-184 (2000). �v Icl. ao Id �i Tex. Att'y Gen. f�p. No. JC-294 (2000); Ilagrer v. .Stccte ex reX. 7'eC/cri�It, 446 SpW.2d 4�, 49 (Te�G. Cive Ap�.—$eaul7�ont 19G9, writ ref d n.r.e.). �' Tex. Att'y Geu. i7p. No. JC-294 (2000). 2012 Texas Conflict of Interest La���s Nlacle �asy � Offic� �f`t��e AtCo��rrey Ger�eral ll �� ��� �f�ic������ TI-1E STATE OF 'TEXAS �C7l1NT�' OF I, (Nar-ne) (governing bocly, board9 �o�nmissiarz) a1�c1 h�reby L�n�i�l oatiz sta�te �the foalowi��e , �s � me7��ber c�f �t�1e y �mal<�� this 2ff`ic�avat ��iave a stia�sial�ti�l interest in a l�usrness entity or• re�l pra�elty tk�a�t rrray a��ceiv� a�pecial. economic �ffe�t�kry � �v�c�ie �r cie�;�sic�n �of the -- _____------- — -- , ar�ci �the (��ve1-��ing body, bvarc�� �a�r�n�isszor�) econ�znic e�ffect on my btilsiness en�tity or real pro�erty is d�stin��.lishable f"ram its �ffect o�n Yh�; �Il�i'�1 l,1��1�.� �!ilc��� COi1S�1�1T�f�'S c"� `�SU�75'�:�'l�tlil���l%1CG�1'�S�'s cci511S11��SS �11t1t ^' c`1"f,"i�l tU �i"� ' diTYC� r� � P 9 �'� 1�'� � Y ' , "speczal ecol�o�nic effeci" are terrns defined in chapter lil u�`ti�� '�'e�as L,ocal C"rovel�ilrzr�Ilt C;c�ci�. Tl1e bti�siness ei7tity or real property is (nai7ze%r�Id7°es,s of �arsi»e,s.s c�� desc�i�tiarz of p��o���rty)� T�a� natLrrc c�i my substa�7ti�1 inieresi in �this btrszn�ss er�tliy c>i re�l pr���p�rty is: L� an otivnershi� interest of 10 percerl� c�r more �f �h� �otin� st��l< or sl�ares r�f th� b�asin�ss entity; ❑ an otivnersl7ip illieresi of 10 percent r�r $I5y(700 or mor� of the; fa�r market �value �f° the business �i�tity; ❑ funcis receaved from the b�xsiness enii�y ��ceed �0 perc�nt c��1 (my, h,zs, her) gross rncome far t1�� previo�as year; ❑ xeal pro�erty �s iz7volved ar�d �__ (-[, h�, she} have/h�s ai7 �c�uita�bl� c�z° leba] owners�hip �vit�h � fair �narl�ei value ��� at least $2500; 20l 2 Texas Conf7ict of Interesf I.aws Macle Easy � Office of tl�e ,�ttv�°ney �Q��ae��n1 �2 ❑ a person �vho is relatecl �to �ne vvithiil �i�he first degree oF �orzsar�b�.�iniiy (bloc>c�) o� af�itaity (��aarriane) h�as a s�zlast�nti�1 iniel°�st in tl�e Ya�vc�lv�d r�al pro�erty ���r b�isirless entity. I have also chec�ked which of th� �bove types oi ir�tei-es%s any r�1.��tive l�as i.n tlle itear�. L1pox� �t1�e filil7g oftl�is af�davlt vvith �he offi�,ia1 r�cord keeper f`or t11e l�cal gov��°nrn�nta] entity, I �ftirm that I s17�11 absi�aiaa frorn any �iscussion, v�te, or� c�e�ision inv�lvin,� �this �bras�r7ess errtity or i•eal prc�perty and �ir-�ir� �ny Fi��rther participation �t� this ����tt�ea° �vlzai�oevero Szgz�ed this th� c3ay of _ 9 20 Si�i�attar� ��fp�iM�lic offici�l � �EFCJ�ZE 1"v1E, the �incl�rsigrl�� �uthorit�, �th�s day �ersr�nally �zppe��red a��rc� ��y aai17 svvoi°�, �hat th� far.ts liereirr ab�-�� (I'�d�ine ai`aEfiant) si�teci are true and� cor�-ect� tr� �the �iest af his/l-��r knowled�� or belie�F. Sworn to and subscrib�d be%re �ne on tl�is th� __ L�l�y of � y 20 �lo�a�°y �'t�lalic in anci for th�e State of Texas 1VIy cotntnission expir�sa 2012 Texas C:c��7flict of'In�terest Laws N1ade Easy � Office of iJ�e Attorney Genercrl �3 I�'� � ; � �� � � Answers to the rnast� frequen�rly �sked questions c�bout Texc�s I�lepc�tisrrr Laws r�, � � � , �:m �"�� � r t �yr� ,��„a ATTIJT�NF.Y CaENER�L C7& �'E.XRS GREG AL�Ti0.1<'I f3EV 4/12 �Y � rj �,� r, ���, l. What is mepotisn�? ..........................................................a...e...,...........,...,,,........o..,.,......,�.�.�...,a.. L 2. �1hat iypes aflocal gove�-nmei�t officials are su�jec�t to tlae �r�epatisiri la�rrs?.....,.�ee.n....e.e...a.e. 1 3. iU}�at types af �ciioa�is �re �cnez-ally prohibited �znd�r �he rlepertisrr� l�w`? ......a,,...e..�ee,.,.ee....... l. 4, 4�V111t �-Llativ�s uf a'pu�]ic; �ifclal ��rc wv�er�;�l �y �h�, statutot-y limitatiorrs orr. relationships by consa7l�uinity (blc�od)? .............................e.....e...............o....,...o,oa...�.�..�...o....a `� 5. VJha� relatiozlships by aFfinit�y (a�ari-iage) �r� c�avexed �by th� sia9:�at�ry lii�ait�ati�ns? .eee...°a�.e.. 2 6. Wl�at hap�ens �if it t�lties t�w� m�rri�ges to establisla ihe relatio�s��i� with i17E publicofticial?......e.e ..........................e.e...,..............o........,...................�e..e,�.,�....,.,.,o.o,�......o..o.o�. 3 7. W��a1: actic�ns rriust a. �ub�11c officlai take rf'he or sh�;�has ���poiisrr� cc�ixfiict?,...e....e�....o.....,. 3 8. I7o the �epc�tism l���vs apply to cities tivith a populati�� af`l�s�s tlz�n 200:? s...�..o........o.,.......e... 3 c�, 1V1ay a closc relativ� be a�7pointed to an unpa�icl pasition?.......ua...ee ......................�e..a.......a....... 3 10. IVIay �thLr� i���;mbers �f a,�overni�,� body vote ta 1�ixe � p�;rson �vho is � v�l�se �relative of�� public c�ificial iftllc �sfficial tivitls �hE ilepotis�.n cc�nflict abst�ir�s fr�m ciLlib�ratii�,� �lnd/ar votitl�`? .... .... ....... ....................o.......,.....,.........,e..........e...........a.... 4 � ........... .ee..e.,.., ............. 11. Who is corlsidereci the hiril��� a1rt11�ri�ty for ��u�oses of �ote�tial �ep��txsrn vi�l�tions`? .�o,...,.. � 12. le�ay a�ity coL�ncil �r a c�ity n��n�ger del�gate t11� p��w�r to �ir�: tc� avs�icl � �epotism prc�l�lem?....ee........a..vo ...............................e.,...,.o.,.,�.,.....o......�.,.....�.e....,......�.e.�.e.e...... � 13 e If a ci�ty has a c,ity mana�er t�r�n �:� �avernn�e�t, rnay t1a� city rra�nage� 1�ire <;1�sc relaiives of city coL�ncil xnernbers? .e ...............o.....o,.......o......,.,...e......�,.00,�.��..o��,a.,.�.:�...o..�.�,,.... 5 14. If a city has a cit�y ma�ager �arm c�f �overna�n�nt, �lay tl�� city rrYai7agex l�i.r� :%is c�r �ie� own cic�se rela�ives?a ..............................................e..°e..ee...e......,.00000.�.o,,.�e,.�e..e.,o......,.....,.. 5 15. If a�;it�y has a�;ity� a�lrr�ir�istr�tc�r but has nevcr �c��>pled � city rxla.�aa�er %r�r� E��>f gc�vernnlent, i11ay thc �it�y �dmiriistr�t�r hir� close �rel�fiv�.s of city cor:in�i1. �rae��er�s?,...�...�. 5 16e I.f a city l�as a ciiy ac�r�zini�trator but has never adopted ��.ity ��anager form r�f' gaverzlment, �znay� th� ei%y �dminis�tr4�tar hirc 17is or h�;r �wn clos� relat�ives`� �.a..eeee.ee..a..�e.e..s. S 17. II�o the nepotism laws apply ta the appoirrtnlent or l�ii-%�g c�f.� �n itzd�pe�deni c�i�rira.ctar by the� gc>verninb b�c�y� if the cc�ntr�ctor is a close a-e�lative of ar� official`�ee,...��..e,.....,�.o...,...�,. 6 18. i�o the l��;patisrn laws prc�hibit clos� rclatives frorrz beii7b hir�d to r�rc�rl� tc��E:,th�r fr��r thesan�re entity? �....o,.......o...........e......,...�.......o .............e..............,.�,...00,..00..�...o....�o.��....o......,�o. 6 19, I7o thc ilepotism la.�rs pral�iibit close re�lativ�s froin b�,i�� hired t� w�rlc �ogetll�r within tl�e salx�e loc�ll govert�n7cnt deparimezlY?,...e.........e.......,...e........o....,.....o...........a,,.....�.....o..,....,e 6 20. T�r� tlre nepotism la�vs apply ir� ths �ppointl7�ez7i of� � public affci�l's c�os� relafives to serve �s board or coYnz7lissian membcrs? ..........e ..............................�.........,.�...�.............e..e. 6 21. I7o the izepotisrn laws apply t� tl�e lppointment of a public r�fCcial's �la�e r�la�ives t� serve as mei�ll�crs of�urely ac�visory corr�mitte�s? .............o..,...............e�..e.....e.,...,�..o.e.e.... 6 22. I�o th� ilepotis�rn laws a��ly to t11e appointment �f close relatives �f �n ofticial ��7 llnpaid volullteer pasituons? ...................e............e........,.........o....,.......,................e.......e..,,....�.... '7 �b�� �f �'������� 2.3. II:>c� �the nepoTisn�i laws prohibif. �lose xelatives froz�? beii7� �le.ct�;c� ta serv� t�;�ether onthe samc gover�lii7� body? ...............e...........ee.............o�.,�...,...,.....o......,e.�.e...�...e.......�....�..e.a 7 ��4. Lio tlie I�e��otism laws prohil�ii close relativcs o�f a member of ��c�v�rnill� �c�dy fx�171 bcin� appaintecl b,y th�i body to s�rve c�r1 �t�he �ovenlin� hody`� .....a.........��.o...00,........o....o.,....a i 25. I7o tb� nep�tisni laws prollibit a p�i-son from rlii�ni�� fo� ��ovcrliirig bc�cl� if tlze �a�7�idate 11as � close rel��ive who is cl�rrently � pub�ic ert7pl�yee`?,�..a..,o.00�o,...�ue .................ae. i 2E�. �/lay az� en7ployee continue cinploymez7t if a close relai:iv�� o�f �the ei�z�sl�aye� is elec;t�;ci ar appointed t� the goverzlirag bod�?,......e....a ............................eee.......e...e.a.....e.....a.........�.�.....,..,. 7 27. What is consid�red "�rior cantinuous ezr�p]_oyment" far� purp�>se� �f`t11� ra�pr�tism l��w`? ....... � 2�. Nlay a.n �mplc�yee continLr� cmployn�e�lt af h� �r she maz�-ies a�los� r�lat�ive �f a. metnL�r c�9't�1� gover�lit�� baciy? ............................................�,.....o...o......00�.,...... .....,...e.e..e...... � 29. IVIay ari ernplc�y�e receive a p�y r�isc or �ronzotion in �thc f�it�a.r��e if 1:l�ru �rnplc>y�e l��;p�t �7is <n-he�- job i�lr�der the praor �on�tirl�A�us e�lzployme�?t exc�;�tic�i�`:� ,.e......�.,........a.,...,.a...�o.....o.�. � 30, I�o i1e�c>tism laws apply i� hirin� clas� relativ��s of � f�rrner �,tiil�lic,. �fficial ��x �7F� �� ofi%cial ���he� resi�ne�?....e..e ........................e...........e.�...,.........��.,,,.�...,�........o.....o.....e.,...e.........e. 9 31. I7o ne}�c�tisin l�ws apply t6� hiri��� persons �w11c> �r�� relatLd to a pub�ic c�f�c,a�].�� ex--wi% �r ex-(1usb7nci?a .................e..............,.......................��,...�.,�........,...�.,.�..,..�..,�.....�..........a.......... 9 ��e I>a the nepotisrrr laws apply �� "t.r�c�inb }�ir�;s,'> wlaer� ane j�rrzsdicti�ll �ires tl�� cicrs� relativc� �f a public ofiici�l iii dnoth�� juriscliction in �x�ha.n�L fo�r �h�t j�isdi��tic�n �iir�ln� lzis or her clos� relative? ..............�.a..............,...............,...e,..e.a....,........a...ae,o.a.e........�.......,,..,�.. 9 33. ��y � kio�rn�-ru1� city provicle n��re restriciiv�; nep�tisz� 1�rnatatxc��.s`�..,�.�o.o.�...�a ..................... � 3�. IVI�y a g�izer�l-1�vv citY (Type P�, ��"Y�e � or 'Type C' citY� p�rs�vicf� fiarther �nc3 zr�or� restrictiv�; nepo%ism lizl�it�tic�ns?�....o ................�............o.��,oe...,.,..ee..e.,.....o..e.�.....e,��........��..,,.�. 9 35. Ar� there �ih�r St�t�; s�t�t��ites tlz�t n�ay pravide stricter r�epertisrn restrictions for p�rticc�lar situ�tions or pilblic of�cials`? ......................................o,..................,.......,.�.........,. 10 3�. If a co.ntraci �vc�uld xesuli in a vi�lation c�fth� nepoiisn� la�rs, is �i:he co�ntract �11ega1 anclvoid?..........e...e......e.....,.00..a...o...a........e.e..e ........................�.o....,,,......e....e....e....e.....e....e,.... t0 37. :[Viay a persc�i� be ch�rger� tivitl� a czime i�"he or she viol�tes f�e ��potis�7la�vs? a .............e..� 10 3�a I1�ust � publi�; oftici��l l�e rezn�ve�l frorn oificE if �c or she l7a.s violaied the 17cpotisn7lauvs?.........e .........................e..............,..........e.....ae......e.eeee...,..�...,..,,..,.,.........,n..�...�. �i� 39a ,4re board n��mbers ofa �n�inic7p�1 lltility district stiibj���t, to tlae rie�atisr�� l��vs?�,......e...ae..e 11 4�� I7aes � city coizncil rnemb�r vic�laie t11e nepotisn� laws by a�poirrtin� a c�c�s� r�e�afiive� ta khe bcrard of �n �;conc�mic clevelopment cc�rparation`?....,,..�..,.,.on.,..�,,....s........e.e ...............e. I1 41. IVIay a public �af`ficial r�ake iinal approval of rcassignn��en�ts a� close r�l�tive� whc� have been c<>nfauuc�usly employed in his or he�r depart�77e��t`�,.,...�.....e.o.o...ee..e.....e.e.....E�..e.°a.. 11 '�'���s 1�Iep��is�� �,���s ���� F�sy 1�iepoii.sn� 1a�vs refer �to limitataons o�n Qav�r���nz�ntal entit�ies' autllc��x��y �to hi�� �c✓r-i;ai� c1�se rclatives of piiblic offici�ls. Z'he follotivi�zg questio�� �and. ans�v�rs �rov7de a laypers�l�"s ��p1�71ation �f state nepotism laws as they �pply �k� local ��v�:inn�ent of�cials a17c� ��re �i�rrte�ded to prc�vide �eneral guidance �an. the issues. L�ca1 �over,�,zrnent �fficials s�h�t�lc� cc�ns�ulY� �vat�a tl�cir leg�l cou�nsel regardizig thc applic�tion of'tlze l�w to t�lze facts �f ea�h pa.rti.c.�lar sit�aatior�. ��� ��� G��� ,� i�� Ne�oii.sl� is il�e laiz-ing of f�Ynily o.r relatives. Ant�i-1lepatisr�� la���s prol7ibit �� ��v�rnm.e�t�l �;rltity f7-c,in �k�irinb c�rt�rin c1�sE ielatives oF a pul�lic official. Th� r�tep�tislrl l��ws ar�; can�t�i�led i� cl7apter 57.3 of� the �c�ver�7ineizt C;o�e. Tla� x�cp�tisrrz siatutes prolaib�ifi, a�p�iblic o�fi�ial. �"r�zn app�iratiz7�, �c�rafir�n�i;��g �the �ap�oint�ent��of, a�r vc�iir�� c7n �%he �pporntme�lt c�f` a close x-ela�tive �o � paid �ub�lic position.` A close rel�tive under nepotzs�zrr laws is sonacane r�vho is t-�latc� �� ti1e� offici��l �vatlail� a prc�hibitc�d degre� by consa�r�� iglit� (�-ela�tic�nship �by bloo�i) a�r �. �rrohil�iied. de� ee by affinity (r�lation�hip by nlai�ia�c).'- �. 1%V��� ���s ��' l�e.�� �av�i°r����� �����i��s �a°� sa��j��t �� th� ��p���;i�� � ��w��'� The �nep��lisrn stat�utes apply �to �ny public afficial' wh� is tlle fi�l�l hi�ri; a�t:�t7�arzty �r is �. m�inb�r cyf tli� ��ov�rnin� k�ody that has fina� hirin� �u�tliarity.4 If t1�c gc�verr�ir� ; bocly is tlxe h:irialg alathority9 the17 nepotis�n liraiitations �ociici �pply ic� clos� rel�tiv�s c�f �.n� members c�f� th� �o�verni.rl� b�dy. Howe�er, if a� err��lc�yee, suc� as t11e cit,y Y���a�er, �oss�sses the, final l��i�%�� authority�, ihe� i11e nepa�tism lin�itatic�ns relai� to person� �vt7o �r� cic>se rel�tiv��s af that employce. It shou.ld be noted that t1�e determinatian of who rs the hirin� autkic�riiy depends c�n wlletlier an of�cer n��y e��;rcise cantrol c�ver l�ir��y c�ecisio�i�;.s �'or e�aYlzple, a bov�rr�izzg �ioc�y or� public elnployec woul�i stiJl bc considered tlae �zirilr�� �r.Ythority if eith�� rn�y �,xe;rci.sc� c,o�trr�l c�ver �� hirin� decisic��, cvelz tlio�agh s�ch authority may �h�v� �be�n clele�at�� �r� a.nc��h�r in�iividual c�r �z7tity. Se� c�u�stiorl l.3 for iurther detail�� ir� ! ' ( �` i •� �� f � 7'h� nepo�tisn7 stat�ztes prolizb�it � public �ftici�l fioz�i appointi��, c�nfirnzin�, iile ap�ointrx7erzt crf, or votin� o�z the �ppointment of a clos�, relative a�` ccrtai� public: �ff'�cials to a paic� p�il�lic posiiian c��r �mplr�ynleil�.� � TEx. Gov''���� �oz�F ArsN. � 573.041 (West 2004), ' Zd. § 573.002. 3 Id. 5 573.00].(3). ("I'u�lic official means; (A) arr officer oi this State or of � dists�ict, counYy, mlanicipality, preci�7ct, school ciistrict, or other political subdivision of'this state; (B) ai7 �ffice�• or �rnember ��f a�board oitihis state or of a district, county, municipality, school districi, ot of}Zea- r�olitical subdivision of tllis �tate; �x (C) a judge o�I' a courl createcl by or under� a statut� of ihis s[ate.") 4 Id. 5 57:3.041. ' I'ena v. Rio Gr°and� Czty Consol. Ir�dep. Sclz. .L�isl. 6l6 S.W.2d 658, 659 (Tex. �ive App.—�;astland 1981, no writ); 0��, Tex. Att'y Cien. 1'�oe. GA-226 (2004), GA-73 (2C103) �t 3; JC-336 (2(�(71) at 4; L>M-2 (19?1) at I. e Trx. C�v'�r C'o�r ANN. � 57�3.041 (West 200�). 2012 Texas Nepotism L,a�vs TV1ade E�sy � C�ffice of the Atior�a��y G�n�rcrl T���s �1���t�s�� L��s ��d� ��sy l�. ��h�� �°�I�t���s �� a��ab�f� r�ffi���l ��°� c�v���� by t�� �t���ut��°� li �t�t��n� �a� �°�1����n�h�p� b;y ��n����uanity (b��a�)`? A pub�lic r�ffi�i�l �iay noi vot� oi1 t17e appoini�n�nt af an individl.ial w�io i� rela�te� �ta t�e aff`ic1�1 withi.n �}ie first, sec�nd, or ihir�cl d��r�c by consaz7�ui�ity (rel�tionslii�s by� bloc�cl).' S�ic17 relatiar�ships��occur �if &h'e �f�i.c.iai xri� �t��e ��aiential hire sll�r� �ith�r a cor��n7r�� ancestxy or �vl�zere �nc is th� descendant of the other.$ �he followis�g rclatives af a pul�lic �fficial wo�ild fall �v�thin the �rohibitecl iirsi, second ar third degr�� �f eonsang�.xinrty: `' Rel�iives related within tl�e first de�ree by c�nsan�uinity inchzde a public c�fficial's ���a�ther, f�ther, sons and datiighters. Rel�tives related within th� second degree by ct�nsal�g�in.ity include � public cr:f�icial's brot�lexs, sisters, granc�mothe�rs, gra�tidfatll�rs, ;r�ndsons a�d gr�i�dcian;l�ierse I�elatives i-e�at�d witl�izl t��e ihi�•d d��r�e by cr�nsailbr.ii.nity inclild� a pub�ic r�E'�cial's �reat- �ra�idfaihers, �reat-,�andlnoth�rs, �unts, uncles, nephews, ni���s, gre�i-grandsons �nc� gre�t- gra�r�ddan�hters. A pi�blic offr�i�l's adopted cl�i1�. is coz7side�r�r� �t� bc ihc, c,hilc� �f �t(�� ��ublic; +�fficial uzir��r ��t�e 17��74)tism l�ws.`o �� S� �V➢�at �°�l��i������s by �f�Ilnit� (����°i���� ��°� ��a���°�� �� ��� ���t�����°� If ���tic�n�? A��.il�lic official is prohibi��d froa� votin�; on th� �ppoint�7ex�7t oi ar� incl�vid��ia1 vvho is re�l����c� t�� t�ae official �vith�in the �rsi �r second �ie�ree by �fiinity (m�rri��e)." ���zcl� �elataor�ship� �cc�u� �.i t17e af�icial and �e; potential hizc �r� r�lated ia e.ac�? r�t�er l�y r�arryin; �ach c�tlic� oz� tl�� spo�.se of ��.Ze �f t:h�; indivici�:l�ls is relai�;d blc�od (c��ns�.n��.�i�a�ity) ta i�lze �iher� i�divid�ual."- °:rh� �a�It7tivin� relatives of a public official �votlld fall wit�in tlle prc�hibite� �irst or s�ccsnd de�ree c�f �ffinitye'' Relatives related withrn tlze �rsi degree ��iy af�i�ity i�clude a pul�lic ��ffici��l's 1��isbaiid, w�if�, fa�thUr-i17-1��v, moiher-in-l��v, so�s-i�-law, dau�lit�rs-in-law, st�;psans and sfie�dau��h�ters. F��lativ�s rel�ted �vithin the secolzci �e�re� incluc��; � piiblic c�f'fieial's sistcrs-ir�-law (hro�her�s s�ouse or spolis�'s sister�, brot�lers-zn-law (sistcr's sp��tiase or spause's br��kher), sp�use's bi-andrn�thers, spo�lsc's grandfathcrs, sp�use's �razadc�aLig.l�ters, dnd spo�5e's ��i-��ic�sc�ns. ` IcL § 573.002. � Id. § 573.022. ' ra. § s�3.o�3(�)(�� - (3�. ,° za. § s��.o22�t��. " za. § s�3.002. �' Id. � 573.024(a). L3 lC�. � 5%3.a�5. 2012 Texas �1rTepotism �La�vs Nlade :�;asy � i�f�ce of the .APtarnev Crer�et�crl 0 T��a� I°��pc�tis�� L,�r�vs ��d� ��sy 6m ��h�� ��p���s i�° it ��.��s tvv� d��������� ��� est����i�� �1�� �°��������hi� ����� �h� ��bli� ��°f����l� If at takes t�wo �narriag�s �o establish � rPl�tir�nsl�ip b����e�ri the public of�ci�1 ar�d �the �pr���asecl hir�, the nepoiiszn laws do not �pply.`a� �az� ex��rnpl�, �h� a��orn�y gei��ral concl��d�� tl�a�t a pl.iblic e�ltity was not pro��i�bi��e� ��i'rc�r7�1 hirin�°the brotller-�irl-law c�t a public official"s wrfe.15 �S2 this situatioY�, it talses two marria�es to est�blis�l t17� rel�tionship l�ecatiise tl�e ��ib�lic �,fficial �s :r�l�ted b� marri��e t� i�is wiF�, �vh� is relat��d tcr he;r b�-otl��r-in-la�r �y Y7��az-x-i��c. I-�o�v�ver�, tlae n�potisnc� laws would prevcnt � p�i�a�blic offici_a1 fi-om ilirrng his sister's h�:t,sb��r��i (�br•ath�r-ir�-lativ). Irl this case, on�ly one rr�arriage sepaz-ates tlae ���v� indivici�u�ls; ther�fore, ��potisr�a provisions watild apply. °io Y��� ��tIl�ns ��� � ��b��� ��`��i�� t��� a�' � �r° ��� ��� � r��p���s ��fi➢��C�`P If ��c�verning body menlber llas a nep��isz1�. ���flictq neither the �c�ves-nin� b��cfy nor� its na�;r�i�s�rs i�na� employ or contract with a�;lose relative of t�i�t 1ri�:�7iber, �.�:�less thei-� is a. spccific; st�lLrtary exception �llowinn siicll az� action.`6 Sirriilaxlyy �if � cXty rnaz��g�r �r o�i�e�° �`ficer� �,vhc� lzas filzal hiri�lg �uthority h�s a nepaiism conflict., th� ;ovenrin� body �n�y nat �ppc�int car vate �`�r th� irldividuai vvho is tl�e close r�lativ� c��` t.ha�t �;ity crftic�r unless ��her.e is � sp�cific s�aYutc�z-y, crr �oss�ib�ly a city charter exccptio.n that allows ,such �n a�;tic,r��" �tate la�w dc�es n<at �e�l�ix� �ny specific p�ocedural steps or doc�ime,�iatic�n af � z�iepotisr� co�flict. �� �� ��� �������� 1���� ��p�� �� �i���� ���i�� � ��p���tic�� ��` ��s� tt��� 20(�`� T�To, ��he nepotism �iatute docs ��t apply �to cities witl? few�er t�1ar� Z00 pes�plen`� �i<��v��v�;r, a�;i.Xy �nay �dopt 1oc�1 proh�ibiti_o�n� �an i�s 7�om�-z�al� c�harCrr, etl�i�� orciin�nc�s �r ��r�c7�a.��l po�lic;i�s �a1��1: �v�iald prevent �lirin� a c�ose relativ�. F ��� G �� �< <� F �Ies. Tlle nepotisn� laws apply io �i�id g�ositions c�nlya A paid posiiiozl is o�nc �that as dir�ctly c�r iriclirecily �a��zpe�zscr.tecl from publi.c fidncls ox� fe�s.'9 Ii th� indiv�id�a�l hc7lc�.inb the po��it�c�n rs m�rely reimbu�seci for aciu�l expenses, i1 is n��t a paid �ositzon. '`' Op. Tex. Att'y Gen, iJos. 0-119 (1939); (J-7424 (1J46);'Tex. At�t�'y �en. 1L0-88-12i. 's Tex, Att'y Gen. LO-�8-I21. �� TEx. G�v'T' CO�� �iNrJ. 5S 573.041 (West 2004), .(�61 (W�est Supp. 2011). .5ee crlso Op. Tex. Att'y Cren. No. .TG1�4 (2000) �t 2(A 7nunicipal i�tility r3istrict°s actir�n in employind the spouse of a board rne�ril>ez� in � paid position violated section 573.041 of the Government Code, even though �the reflatecl board znembez° abstained fi-�771 pai-ticipation in die action). " T�x. Gov''r Co�r A1vtv. 5§ 573.04�1 (West 20(74), .061 (���est Supp. 2U1 l). '� Id. § 573.061(7) (�W�est Sul�p. 2011). 19 Icl § 573.041 (1Nest 2004); Tex. At��"y Gen. LO-96-10, 2012 T�xas Ne�-rc��tism I,ativs lo✓1�ade E;asy �(��ff`ac� of the �lttor�r��ey Gener•�rl p T���s �Ic�poi�sr�� �J��s I��cl� ��sy �Oo I�Say �t���° � b��°s t��° � ��v��°r�ir�� ���y v�t� �� ���re � p�rs�� ��hc� �s � �1��� �°�����v� ��° � ��bla� �f����� Ilf ���� ���ca�� �fth the n����t�s� ������t �����Il�� ��°�� ���iber�tin� �a��/�r �����n�`? %io. C�thcr 171crnbcrs of the govei-ni.nb body may zio��t vot� to �ire a persor� tivlia is ��lase r�l��ivc �f a public o1'�cial. "I"I7e abstelltian of� a pub�Iic official wlth �he r7epoiisz� cr��fYict does �1ot r���liev� the rernaini�i� m�mbers frorn the prohibiiiou against hirin� � cic�se relative of al7athe�r ptiibl.ic c�fficial.'° � 1. W��� i� ��ns�����d t�� l��r��� ��t�c�r��� f��° p��°��s�� �� ��t�r����� r��p�t�s�� ���l�ta�ns? For nepotism purposes, the hiring autl�ority is �th� �individual �r entit:y tl��t r�ay ��ez�cis� c�r��-�1 aver �the hiriii� decisic7n.'-` If th� bovcrnin� b�dy is the hrriz�� �.��.thc�rify, the� i7e�po�iszn lirnitaT.ions would apply to cic�se relatives of any crf t17� m�znbers c�f the �ov�rrxil�b body. If a�a er�iploy��, s�ich as th� city n�an.a�ex, p�ssesses t17e �ir.ii��,.z a�.itl�c�r%ty, the� �t�tie �iembez�s �f �he gc�verni�g bady may ��t hire pez-sons who ai�e c�los� z�e7atives �f i�at er�plcry�e�. � � �. l��y � ���y �����i� a��° � ���y m�n���r° ������te �h� ���v��° t� h�r°� ta� ����� � n�p��ti� ��°a�.k��1� � The "ap���licability ofth� r��poY,iszn law �cpc�ds o� w�eth�r �n c�ffi�;er �r th� goverr�.i�g body r��ay �xercise c°ontrol over hiring decisioris."='- A city co��i�cil uro�:ald still �b� c:o�sicie�-eci t�le hrrinb aiitl�ority if it coult� ��ercis� c�vn�r��1 c�v�r a� 17i�rin� �tecisi���, ��v�n ��t�hoci�h 'st clelegated t�.� ��irizib declsion to a�other person or entity �iy c�rdinance. .In c�ne ins�ance, t17� a�tto�-tley beneral r�vi�wed. 1 city conncil's atten��t, by �ity orciivanc�, to del�ga�e th�� 1�iring autl7oriiy for city staff �to a city� adzninr.strator. The attorney �el�eral carichidcd �l�at ihis dele��t�on di.d nc�t relie�ve ihe m�mbers c�f tlze city council from beinb con.sidered tlie llirin,� au�th�rity tor �S�ur�oses a� th.e �epoiis�i statur.�s.23 'I'�xas 1aw distin,�uishes betw�en the potivc�� c�f a hom�-�ule city tc� d�l��at� hinn� ��ltl�orit� thrc�u�l� its city charter versus � delegation �hat is do.ne by� city ordi.nanc�.'� �f �t1�e dei���ti��� af the hi�-ing auihority is contai.n�rr i� th� �ity charter, it �s x�ec�gnized for r�epL��tisr�� p�r�os�s �s �t v�ali�� delebation of th� hiring pow�r. �I�wev�;r, if a city siinply �iel�ga�es tl�e hzrin� authority b� oz�cii7lanc�, i�t would not, for 17e�atisrrl �urposes, charl�� vaho vvas considered the hirirYg alrtl�ox-i�y.�' 'This conclusi�n �is baser� c�n th� fact that t�e cou�acil ��uld �nle.nd or repeal_ an c�rdil7ar�ce at any time, ��hile ii: woul� take �i� �lectioi7 to aznezxd a eity �hari:�z-. �'or ex�mpl.�, tlle attomey geiieral 11as co��cl�.ided i�iat the ile�otisnl stat�tes did na� pr�e,lude, a city f'rc�m hirinb a relativc c�f a cit� coui�eil ine��ber �vl�ere thE eity charter provic�ed �tlzat %he city �m�na�er �vas the 20 C�p. Tex. Att'y Gen. No. JC-184 (2000), 21 Perzcz, 616 S.W.2c���at b54; � T�ex. Att' G�ri. Nos. (iA-4l S 2006 •, GR,_'�26 7�(�4 a„�',� _73� 2003 �t 3,, .IC'.. �• � � � Y � � ), C�� ) � ) � ,� 3�36 ��ooi� ar a; �M-2 �iy9r� a� 1. C)p. Tex. �tt'y Cen. No. D�S-2 (1�9'1) at 1. '`3 Id. za Id. '`s Id.. S'ee Op. Tex. Ati°y �Gen. Nc�. JC-336 (2001). 2012 'Tcxas 1�Tepotism Laws liilac�e Easy � O.f'�c� of the APtoi^rzey �eneral � ��' � f fin�l hi�ing �uthority a�1d t�ic co�xncil z77embers reserveci z�o authority to �pa���ticipate ixl ihe;l7iring decision.�� 13p If � ��ty h�� � ��ty ��������° f��°�a �� �����°����t, ����y �1�� �a��r �������° l��a�� �,���� .t-�➢�ti��� �� ���� ��s����� �����°�? If � city has a city m�n���r fonn of governm�nt, the cit� ZZiai�ag�r may �ir� close �°elativcs of �ity cout�cil n�embers if tlae �i�ty r7�ana�er al.one poss�;sses t17� hirin� auYho�itye �e� q�test�on 12 a.�bave. Such rel�tiv�s would incltiide persa�ns whc� �re rclaie;d to cit� cot�iicil m��r�bers �vithin tl�� ��`irst, s�cond c�r thircl dcgr�e by consan�uinity or witlzin tl�e frst o�� s�coizd de�r�e k�y� �ffir�i�y. ��� ��' � ���y 'ha� � ���� ������r° �`���� �f ��v�a°�m��t, r���y th� ��ty ��r�����° ��r� �s �r �e�° ���a� �l�s� re��tive� �� Tf a. city laas a�ity manag�r far�11 �f� �ov�r���nent �nc1 tl�e c�ity zna�na�ex a1o�n.e �aossess�s thc hiring ��utll�riiy, tlae city r�iana��r i�ay noi liire .liis �i� her ��v�7 clos�; r�lativc�o `�eE q�iesi:i�771 1��t�ove. Suclz relatives w�r.ild incli�de �ers�ns �vho �re rela�ted t� �t1i�; �ity mana.�;e,r �vithir� t1�� first, second �r �11ird degree �by cons��n�uinii�y ox vvithin th� firs�t or se�;�r�� de�ree by �f��riit�� �5m �f° � �i�� ��� � ���y ��lmi���t�°�t�a� ��� ��� �����° ����a��� � ���y m������r° ���° a� �t����� ���� �y �h� �it� �� a��s�r����° h:��� ���s� ��������� �i ��ty ��a��n�a� � k���°s? N��. Ii a city h�as a city admir�istrafar, bnt l�as r�eve�� aci�pt�d �a city n�a�agci ior-rn r�f �ove�rrin7erai, the city administr��tor wi11 gener�lly be tiu�abie t� liire cl.os� relatives of �ity coti�r�cil �rnembe��s� In an attorncy gen�:ral opinic�n,9 th� attorney g�n�ral's r�ffc� sla�ted tlze "ap��l�c�1�a.�l�ty �f'th� �epc�tisr�� l�w de,pends c�n w}�Ether �ll e�fficcr Yreer�> ex�rcis� ca�tr.ol ov�� 17iz�in�, d�cisions."z�' �iY��cc �th� city cc�uncil usually �xercises control over the hirin� ���c;i�ion �by a�ity adnyinistrat�r, tlae rr��otisl�2 st�ttiite vv��ti�ld �.zstiially z�1o1�: prev��lt the c;�ty ac3mi��isiz�atc�r frc�m hiriri� his tyt� her �1c>��� rc.la.t�iv�so 1�. If � ���y h�� � c��� ��l�i���t�°�to�° ���t ��� ����r ��Y������ � ���y ��n�ffi�r ��r�� c�f ��v�rr� �n�q �y t�� �it� ��dan��Il�t��1��° 1����� h�s �r° 1���° ��v�a ����� ��l��t�v�s? Yes. If a eity has a eity admiz�is�trator, biat has zlever adopted a c�i�ty rnan���r fc�rm c�f` gc�veri�ent, the ciiy admir�istrator wi11 gen�rally� be abl� to hire his or her o�n cl�ase re��tiv�s. Sir�cc �lie city couneil usually exe�-cises control �ver th� hiring d�cisi�n by � c;ity aclniinisir�tar, the n.ep�tisrn laws would n�t pr�v�ezrt the city fro�7 llirin� th� adrni�listr-atc>r.'s ow� �;los� rel�tives. :I�i � city �dininistra�tor did h�ve final hiring authc�i�it�y, tllc ncpc�tisin laws wolild,pr°e�etzt the hirin� �af tl�� adminisirator's close rel�tives. 26 �p. Tex. Att'y Gen. Nos. �A-595 (2003); 0-5274 (1943). IIowever, if f.h� czty charter reserves a role for the eity coui7cil such as corls�xlta[ion, �the z�epotisn� restrict'rons sti11 apply. �p. Tex. At�'y C�er�. No. CiA-226 (2004) at 3. F'or adc�itional disclzssion of the delegation issue i�n regarcl t� school clistriet bc�ards lzacl stil�er-iiltencients, see Op. Tex, Att''y �e�n. Nos. CA-123 (2003); C�A-177 (2004). Z' �p. Tex. Att'y Gen. No. DM-2 (1991). 2012 'Texas Nepotis�77 La�vs IVladc Easy � Offzce ��f the �ttor�aaey �ener�crl � �`�x�s I°��p��i�ln �,���rs 1"���.� �,��y �"i� � i�� ��p���� ����� �p�ly �� �h� �pp��a�� ��� a�� �i��a�� �� �� n�c��p��a���� �c�����°��t�� �ry �➢�� ��°�����r�� b��y ��' �1�� ����1�����r� �� � ����� �°�l�iiv�� ��° �a� �f�����'� �1'es. "The nep�%ism laws pro�ibit th��; �ppoinlme�at or hiring of �i�r i�cle�enc�e��k �;��tr�ct�l- �i�y �th� governing body it the contractor is a close rel�tive c�f one r�f tl�� n1cil�b�rs s�f`the goveri�ing bo�y. Nc�netheless, the nepo�i�m prohi�bi�t�ion would not prohibit the �av�rniaa� body fr�axn e�ei�;uting � coi�tract wit1� a corpc�ratior� that eil�ploys i11e close relaiiv� �nless �ih� corpar�ti��ii a� i� act�:l�lity� xhe "alt�,r e�o"' of �n ir�clividilal �uha is cls��s�ly� rcl�ateci to an n:Cficial.'� :��3v �� ��� ������s� l�ti�vs �r�����it ����e r��a��v�� �r��a ����� hf�°�� �� ����°k �������� f��r t�� �� � ���tIlty�t 'T11� �epotis�a�i la�vs do not ,�enerally �rahibit close z-elatives fz-c>m being hire� to v�r�rl� t�J�e���er for th� sa.rrae, Ln�ti.ty. The nepatisrr� laws do rzot apply �lnless �it�e� relativ� }��s tl�� final l�irin� �uthority lilce �� publi�. of��ial. 1 oc�l ;ovcmna�ntal er�.ti�Cies n�i;ht prs�hii�it s�ucl� arr�ra��;��n�;rais by �harter, ordiridnc�: or polic�� , r�� � � �� � i� � "Thc �ep�iisrn �aw� d� z���t �ez��rally p�rc�hil�it clase relativ�s �rorri beir�� l�ired t�a va��rk to�etlaer vvitlain �he san�e �local. e�tiiy ��;�a�-tment. 7"he nepoiislr� laws do not ��Sply �r�1�ss either r�lativ� �as tlze �n�l l�iri�� ��i��ority like a pl�blic ofiici��. L.��;al �ov�.i��n.mes�tal entrties �r�igl�t prohibit such arran�ements by r,ha�ter, orclinance c�r policy, �� p 4 ; 1� � ��� ' .,�r, C �� � �� 'Th� r�epc�tisla� la:ws pro�i�it t�e app�in�ment of a public c�ffici�al's close relatives to sc�v�� �� a b�ard �z- carr�inissian n�ember only if th� position is � paid positian.'y The �em� "`p�sitian"' is �i�finLd io incl�id� "aY7 oftic�,, �lerkshi�, employment, or d�ity."3o I�f` the lcrcal entity pa�ci s��c�a appUiyltees, ncpotisnl sta�ti:�t�;s �vcrulc� becan�e applicable. � � �� a � �;� � r,t C � ;, �, , u �u� � �. ��; T�do. C�enerally, the ilepotis�n� law would not apply tc� ���17e appain�tn�eni �f �11 c��Fficial"� clase �elativ�;s t� serve as nien�ibe.rs ai` �tiirely advisory committ���s if t�ic ineanbcrs ar� not con�pensated. T'he zlepotism ]a�r govems tlle hiring or appoin9rraen�l s�f �axd i�clivrdual �o a. po�,itit�� that is �irectly c�r indirec�tly� car�zpens�ted from public ��unds." T'i�e t�rzn "pc�sitlon" is deiai7ed ��o r'.nclude� "��zt� officc, clerlcship, einplt�yinent, or duty.'>�' Sir�c,e a�� advis��y c��m7tte� zs ty�ically n.ot a paid posiiion, th� �r�epotisn� laws would n�t apply. Hc��vever9 if t}Ze positia�s �ve�e paid �� Tex. Att'y �en. LU�-�c�-44. �y C�x. Gov''1� Co�� Alvlv. § 57�i.041 (�I�,�t 2004). �" Ic� t,�' S73.001(2). �' Id. � 573.041. �' Ic1. § 5%3.00l (2). 2012 T�xas N�po�tism L,aws l��!I�ac�e Fasy � C�¢f�ice Uf th� �Attora�ey (�er2e�cx1 � "T���� l�I�p�t�vr�i L,��s �I�.d� ��sy positi��s, tl�� ��potism l�ws would prevexlt� the appointrii�nt of° affici�ls' closc �-�lativcs to pus�ely advis�r-y c�mlr�i�tees.�3 2�d �� ���� �����ty�� ��ws ����� �� ��� ��apa�������� c�� ��c��� �°����ta���� ��' �� ���c,i�� tc� �a�a���c� ��a������� ���sf�Il���? No. Th� ne�otisxn lavvs �o I�ot apply i� ihe appoiz�tnl�nt af cic�se rel�tives of a public aff�cia.�l to unpard volurit�er ��osltiae�s. T11e nepotisr7� law ap��ies oiily� to pai� positioY�s� 23. �a �t�� ��po�s� �a�� p�°�hy�at ����e a��l�t�v�� �'�°�� b�i�� ������d �� s��°v� ������a�� �� th� ���� �a�v��n��� b��y? 170. "The �epc��ism laws cio i1��t prohibit �los� rel�tiv�s frc>n�r b�;ing �l�cied to serv�; tc��;et�het- on the same �ovea-t�.in� ba�iy. Thc n�potis�� l�ws liinit aciicr�s anly l�y 1h� bov�rnixi� b�>��y �>r tlae er�tity's enlplo,yee w�itli final hiring autl��rity. 'T�icy cl� not liir�it t11e al�il�ity r�f tile �l�c;t�r�te t� e]ect: c;lose r�latives to tl�� sa�nle gov�rn�.n; body. 2�m �� ��� �����i�� �l�d�� ��°a�h����t ����� r�l���i��� ���° � ����b��° �� � �c�����nan� b�c�y �°�°�� b��r�� ap�����te� �y t��t ���y �� s��°�� �� ��� �����°���� ���y� "The z�e�otisl�i I�vvs �vv°ou1�d prol7ib�it c1o�e relatives ��f a����r�nl:��er �f a gove;rnin� 1��cly irc��rz�� bein� a�poii�tec� by �that bociy t� s�erve vri t2�e bc�ver�ling �t�cly, b�lt c�nly ifthe mexnl�c,rs �f`the �ov�rni��r� bocly are �pa�d. ti�hile the elcct�rate �ou1d elect c1�se relativ�s t�� tlze s�z��� ��ve;r�2�ng �,c>dy, th� gov�rnirlg body� itself cvtiald not appoir�t �lose rel�taves ��f' its m�rrab�rs �tr� ��a�id �ffic� ar employment. 2�d �� ��a� �����a��aa l��s prt�hi�i� �� ���°��� �'��m ra:�n���� �°��p � �c�v������ ��dy ffi�° �h� ��r�did�t� ��� � �c��s� �������� ���� i� c:���°�°���ly � �a�b�i� � p��ay��? Nt�. "The raepotisizl laws clo t�.ot prahibit a�ersos� irc7ni ���u���nin� for ��ov�rninb �body if the c�nc�idat� h�s a cl�se rclative vvho is curr�,ntly �n �mployee c>f th� local er�titya NoriLtheless, the nepotisrrz 1aw x��y f�rc� th� elnployee t� resigi� ii th� candicl�te is elected, ci�,pe�di�� c�n how lo�g ihe emplayee has worked is� his or herprese�zt job, �s disc�ss�d ir� ��ie�tion. 26. ��� � �� � � r � � : � t ' �� - � �� � � � � � � � �� � �� r � � � ��� � �� Aiz e�nplc�y�e c��f � 1oca1 entity naay coniin�e emplay�nc;�t i� th� ern�layee �as b�;era ct�Y�tinuously crriployc.ci %�r� � stiifiicient time period imm�diately prior �tc� the ��ppoi�tn���t �r el.ect:iora �f the clase relat�iv�.3' If t1�e eznplayee's close �fl�e]ative ti�vas �pp�intcci io thc, �ovei-nin� b�dy9 tl���; em�loye� n��ist hav� b�en coniin�uously �mployecl by tiae l�ca.�l entity f"or �t leasi 30 d�ys prior to ihe appoili�merlt in r�rder to r��tail� his or 17er job.j� If the err�plc�yee's cic�s�. �-�lativ� w�as electec� ts� a iioiz-couniy local governi�i� body, i�e eniploy�� n7�ast i7ave beerl coniini�c��i�s1y �Inployed �y the 33 IC�. � 5��.���. ;A Id. � S%3.062. �3; la. § s��.oh2(�)(1), (�)(�)� 2012 Texas I�Tepotism L,aws Made Easy � C7ffice of�ihe Atta�rn�y �enerccl � '�'�x�s �I�p���sm I.,��v� �a.�� �a�y 1oca1 �ov�rnin� body for at least si� moz�ths beforc th� znei7lbcp� assunled �ffic�.'� If tlae em��loy�e's close rclative w�s elected to a sta�e or coi.anty o:Efice, tl�e e�nploy�e rntzst have b�en contiz7uously ernplc�ycci by �that sta.te or �;o��ziity office �.fc�r at least c��n� �year be�f�re th� �ut�lic c�fficial assumecl aff ce.'' 27a ����� �� ��ns�d���d 46p�°��� ����i���u� �rr����yrn�nt'" fa�Il° p�rpr���� ��° �h� n�p��is ����? Prior carzt�inuaus cmployment fol� purposr;s c�f tlie 1�epc�tisni law as c�r�s�dered io �e irniriediately pric�r aild unintei�rupted employment.'� Addii�i�nally, z�� c;oilnti�� bacl� t�F 7-eql�zired. tir�zc �er�zc��, 30 ciays, six n�or.�tlas or ozi� year, th� critical d�te is th� d�te the public ofticia] ass��ar��;s a%f�ic�, (s�vo77i� �i17 ���d q�,z�tlifi�c� ���tc� �s�t�c�}.�� ��7 ��n atto��7ey �ge.neral o��il�i��zi, t�ae �t:tc�rra�y �en�r�l conclud�d tlzat a ieachcr �v11� retared fronl � fu11-tir7�ie, ��rtifie�� teacher �osiii�� lzad brokez� 1��r �mployment witlz the school clistrict a:r�d did nat qiialify fo� th� pric�7- cc�r�ti�uoras e���ploymen� exception t� the altiti-�nepatisn� sta��ut�.�o �$� l��y �a� �m���y�� ��r�ti�u� �m��ay���� �f �� a�° s�� ���°ri�� � �l�s� r�➢����e �� � e k���° ��" �h� �����°r���a� b��y w� An enz�loyeE �f a lacal entity �vho m�rries �the cl.r�s� �relativ� �af` a�� elec;tecl mex�l��r r�f th� �ovecning��body nzust r�si�n i�f�the ���pl�ye� wa� �ot �c7n�in��o�asly e�7i}71c�ye� foz the r�l�vaz7ti ti�ra�: p�;ri��cl (30 days, six months or one ;year, as appropri��e;) ��e�Fc�r�; �tl�c; men�be� �isstilrned �£Ei.ce,'� 2�� T��y �� �rnpl���� r������ � ��y ����� c�� ��°��a����a� i� k�� ��tu�� ��` ��� � p��y�� ���� h3� �a° �e�° ��b u�d��° �h� pr��� ���tIl����s � �l�y ea�� ���������� ��s. An ��n�loyce �f a l�ca� en�rty is eligible t�7 z-ecei.vr �ay �-aises ar�� �,rornc�ti��,7�s �f"t�r l�ein� p��mitte�i to keep his �r her�ob �inder- ih�; priar cc�nii���icrus ��71�lovment exc�pti.a�o4' T11� ���ib1i�: offi�i�l who is a�rel�tive of ihe cn�aplc�y�e generally n�ay ��t participat�� zn any� cieli��r�tic�a� or v�ti�g �11 tl��; employ�e's status or con�pensation.�� Noneth�,less, t�L, ����patisn� la�vs �vould r�ot �revenl� an oi�cial frvm voting on a cl�ss or cate�ory �f e�xlploy�es,�a Fr�r enam�le9 an offi�ial Il�ay �articipate in a�lecision to �ive a11 �r�lpl�ye�s a�c>st-ai=liv�n� raise ev�n �tholzgh an oftici�l's cic�se relative is an empl�yee.�� 3h ra. � s��.o�2(a)(1), (�)(B)� 3� za. § s��.o62(a)(1), (z)(�)� �� ra. § s7�.o62. j� Bec�tn v. State, 691 S.W.2d 773, 775 (Tex. Ap�.—El Paso 1985, pet. z-ef d). 40 Op. Tex. Att'y Gen. No. JC-442 (20(�1). `�� Op. Tex. Att'y Ge�n. Nos. DM-132 (1992); GA-121��(2003), 'Tex., Att"y Cien. L,i3-93�114. a' Op. Te�x. Att'y Gerl. Nos. Dl�✓✓1-132 (1992)> JM-11�8 (1990); CiA-�121 (20(��); Teh. Att'y Gen. I,G-93-11.4. �� �r�x. cov°-r cc��E ��vr�. § s�3.o�z�) (w�st zoo4�. `�� Id. § 573.062(b). See Op. Tex, Att'y Gez�. Nos. JC-193 (200(�) �it 2-3; JC-336 (2001) �t 3; JC'-442 (2(70a j�f 2; �c:-s4� �2002�; Jc-sss �zoo��. 45 Op. Tex. Att'y Cien. Nos. DM-46 (1991) at 233-234, JM-118� (1990). 2(�12 Texas Ncpo��isn�t Laws 1VIad�; Easy � Offace of'tlze Attol�ney G�nerczl � T���s C����t�s��. L_,�vv� ��d� E�sy� 3�a �� ����t�s ���s �pp�l� �� �a�°i�a� �l�s� �����i��s �� L� f��° �r �aa.ab���; �#°fa���l �r� �f �� a���i�� ti�ha ��s�����`� �'l�e nepo�tisr�� laws �x�a� apply to the hii7�� af cic�se xLlaiives c�f a�ic,rm�r pUblic c�ffici�l ar of an offici�l �vho re;signed. Uz�d�r ariicle �VI, sectior� 17 ofilie 'T��as �oz7stittiiti�7ia (th� halcic7ver pr�visio�l), an �f�cc�r ��ri�tir7��es ��t� seY°ve�� �nd ����v�; tlx� duti�s �nd potiv�rs of` th� o�ific;e �iniil a successor c�tilalifies for th� off'ice. Thus, the nepotisn�� laws �vould �rohibit t11� hixillQ of a holdover of:Cicer's close relative5 t� � p�id �.7c�siti�ra. wit17 ih� 1ocal entity.4� l�c��v��ve��, c�nc� th� local e�ntity l�as filleci tlle �onner officer's n��7sitia� �i��� laas quali�°ied a�cl swar�� this �e�rson into afficc, th� loc�1 eniity may hire a close re�lative of the fc�rrner- official. 3�m �� ����t���� ���� ����y ��a '������� p�r°s��s ��a� ��°� ��1���� �� � p�blic ������1'� �x������ �� ����a�����ncl? Ii� c�;rt�in situ�tions, i�c xle�potism 1�w tivill pr�vent t11� lac�al c,ntity fra�n �.lai�-in� cics�� r�latives of ���iblic afficial's ex-�v�ife or e,�-l�l�u�band. �peci�ca�lly, if th�r�e is � li��ir�g clzilci fr�nz the forine�� mar�-ia�e (regar�dless �f" the a�e of the ehilci), the n�p�tisrri 1aw �ri�.l pr�;v�nt %he la�;al entity irc�rr� 1�irir�� persons vvho ar�; cl�se relatiUes af' t�h� c�i�iczal's e�-wii`� or e�-l�lasba.nci. Divc>rc� cic�es r��>t �nd a�cpatis�r� re�l.a�lionshi� if � child c�f t}a�t �naa.rr%a�e is stil�l 1iv�ir7�;.47 3�u �� i�� ��p�tis� ����s ����y �� "t������� ���°���„ ��h��°� ��� j��°�s�a��Il�n k���°�s ��� ����� �°�l���v� ��` � p���flc ������� �� ������� ��r�s�i�t���� �� �x�h���� ���° �h�� j���asdi��ic�� ��ir�n� h�� ��� ���° �lr��� ����ti���� S'es. Public officials m�� not trade �aepatistic �ppointments.4� In ath�r words, � pul�li�; offici�l n7ay not appoint az1 individual who is clasely �-elai�d t� � neighborin� public a�fici�l, with t�� L��derstanding that the other offcia� w�i1�1 �-�turn the favc�r �� hirin� �i�e's �w�n r�latzves. ��Po l��y � ��r�e-�°���� ���1�' g��a����� r�a�� ��s��°���i��� ������sm ����������ar��°r A 11ome-r-��le city n7ay gener�lly prov�id� in�r� res�trictive, ��epotism liz�ita.tioz�sg witl� c�t1e �xception. A. city is specitically farbiclden from a��p�izlg a. 1oca1 riepotisna �r��ision that �vc�uld provid� a t�7��igl�er t�lxeshold %r qu�lifyin� under the p�i�r �c�nti.r�l:�olrs elz�plc�yrn_e�1t �xceptio1��49 F'�ar example, the attorney general cc�i�cluded a ho�ne-rule city chart�r ps-crvisio.n could nc�t prohibit a so:e�. oF a cotiu7�;i1 me�l�ber �vl�� iiaci four years af ez�plc,y�men� �vith th� city frc>m receiving a prornotion. 1�Tc�nLtheless, tl�e relat�d e�uncil �inerr�bc,r � ould �ot partici�ate i�� �1�y d�;libcra�tio� ar voting on the pro�n�tio� nf l�er s�n. �o 34m �y � ��a��r�l���ti� c��Y ��3'P� �q ��'Y�� � �� "I'Y�� �; ���y� p����d� fi�rt��r ��d �r°� �°�stri����� n��a�t�s �i it�ti�n�? �r�uably, a general-law c�ity may ��ss a niorc re5trictiv� �epaYisiz�� linaitation �rovided s�ch �n �rdi�ianc� dici rlot �ot,7flici witlz state law ancl the au�tl�ority to cio s� was fairly� im�liecl fram some a� Op. 'I'ex. Att"y C3en. Nos. JM-636 (1987) at 2; I�M-7 (1 �9.1). " TEx. Gov°T co�E Arrr�. § s�3.oz���� �we�t 2�oa�. 4� Id. � 573.044. 4� TEx. �OV''T CODE ANN. S 573.062(a) (West 2004). so ��� Tex. Att'y Get�. Nc>. JC-546 (2002). 2012 Texas Ne}�c�tisln Laws IViade Easy � Office of t1�e Attor^ney G�neral "��'�x�s %��p�t�sr� L��vs l��d� E�s}� othel power of the ,�e��ral 1aw city,s` I`•1� �;ourt or attorney �enera.l a�inic�r� h�s disc�ss�d this questi��e �50 �r� ����°� ��h��° ����� �t��u��� �h�t a��y ��°�vac�� st�°x��e� ��p�t��a� �°�st�°����a��� f��° �u��°t������r°.���i�����a�� c��,�aa;����� �ff�n�l�? There r�nay l�e certain statE statutes that ��ply to a p�rtzcul�r set �f circLxnlsianc�s. E3eforc � p�iblic c�fficial participates in a� ofticill actior� r��ardiz�g G� cic�se rcl�tive, ti7e c�fficial nlay �vant t� cansult with le��l counsel �s t� the ���licabl� la�v�.�'- 3�m I�` � �c�nt���� �vc���d �������t �� � ��������� at ��i� ������s� ����s, �� t�� �r���r���t �������� �n�� �c��c1'� ��ese 7�he s�epotism lativ acltiresses the hiriz�g c�f �rr �in.divicival pers�n �L�,y ��overr��r�7el�tal �bc�dy. If° �. cantract when si�n�;d is ax� enzploym�r�t cc��7tract �f �r� irldivic�u�1 �vv�io as x-�l�ied �vitlailz � prohibiYed de�ree, t�1e �zep��isrn law woulc� ap�,ly ailci �k1�e car��ract is void frc�r�� its �incept�i_L�r�. A�ttc�rn�y Genera.l (�p�inion (:�A-177 (2004) ��ntaii�s e�an�i�les �f� stzcl� co�ntr�ct,s of employrtl�r�te C7n thE ath�r h�nd, several att�rney gen�ral apini�ns 11�ve held �h�rt tivh.en � relati���hi� cavered. by the nep�tism statuies �ris�s d��ing �t17e c�llrse c�f an in�ivic�u��l's err�ployra7��t, t�� ix��avic�ual n�ay sez-ve out t11� term of has or her contract�" 'The zc�soilii7� b�hinc� i11is �-i.rle is tl��� a��ac�latic�n o� the nepotism laws �volzld not o�;ctir lintil the �mp]oyin� �bo�y ��r �fficer }i�cl �tr� t�al�r acti�n �ta r�new the �indivadual's co�tract.'`` I:z1 th� abseiace �f a valid �;ontract fc�r � speci�ec� p�rir�d of enl�loyment r�r �vith respECt to ��� �rnp�l�y�e �vllo is an "at will" em.�lc�y�e, a� i��cii.vid�.�al c�e�ulc� remain until the end c�f tlz� pay peric�d. At �the ezld c7�"the p�y period, thc in�ivi.cival wotillci hav� ��� resigza to avoid a violatioz� �f the ncp�iisrrt �a�vs.55 The �br�v�e disc��xss�o� �sst�.mes %1�a�t t�h� individual claes not ��ialify for tlze prior c�ntiniious �mpl��yzne�at e�.c�pti�ix. �7m 1 ay � �ae�s�� b� �������:� with � ��°a�� �f �� ��° ���� �ric���t�� t�� a��p�t�s�� ���s°7 �'es. An offcial �who violates �11e nepotisr�a 1a�.vs c;c�inmits of�cial a�ziscon��rct a�d a. misdeme�zixc7r �u�zisl.lablc by a�i17e ofnot �Iess tl�ail �100 or lnox-e than ��1000.'� �$� 1���� � ������ �f��i�� �� re�lav��� f�°�� �f��� ��" �� �r ��� ��a� �io��t�� th� n�p��nst�a l�vv�`� Ycs. l�n official �n�ist b� ren7.ovec� inameciiaie�y fr�xn office if h�. �r she �is con�vzct�d ot vic�lating the nepotisn� laws a�ici t�e �;c�zlv�ctiaz�. bec�mes fii�al.'' State 1aw provides "t11e i-elnoval froilz ihe pc>sition shall be made iinn��dia�tely and �umm�rily k�y thc oribirral a�p�i��ting authc�rity" �v�heii a s� T�x. LOC. GOV''T' CODE ANN. �, 51.012 (�esY� 7008). 52 �See �enerall � TEx. IIEAL7H � SA��7Y CollE ANN. i34.0�65 e 5,.534,O115 �Vest 2010 ; TEX. 'T,�X C(7�� � J § � - � ) � ) (� ) �NN. � 6.OJ(� (�VeSt SLipp. 2011�; TEX. TRANSP, COl�E ANN. y 6�.038(C� (West 2011); T�EX. WA"I'El2 C;OI�E a�rr. §§ 4g.os�(a)(1) (we�t 200�>, s�.z62 �w��r 2��4�. '� Op. Tex. Att'y Gen. Nos. iVIW-2�6 (19�30); V=785 (1y49); O-14U� (1939). �4 Bean, 691 S.W.2d at 775. s' 0��. Tex. Att'y Gen. Nos. MW-286 (1980); V-785 (1949); C7-1408 (1934). 5e "I'Ex. Gov'T Co�� ANN. � 573.084 (�Vest 2004). �' Id. � 573.081. 2012 Te��as Nepotism �,aws 1V1ade �asy � Uffice of the �tt�rr�ey Gerze�c�l � 'T���s ��pc�t�s� �,�tivs ii��d� E�sy crimi11a1 convictioi� becomes firlal.'� If the afticial is not remc��red vvitlzir�. 30 clays after �i1e cr��viction ��comes �iz��l, � procePdir7,� by the local prc�seci�ta�- �nay ��; bx�c��x�ht ta r���ve �tl�e c�ffici�l.'9 39� ��°� �r��r�l a������°� �� � m�.��a����� aa�a�a�y dis�r��t subj��k t� �h� ��p�tis� 1��vs� Yes. Ncpotisi�7 laws do ��ply to l�oard naen�bcr�s of � rr�tiinicipal utiii�y� distxi�;� (1�[JTJ),`,o °Tl�� ncpotisr� la�vs apply to "aza ofiicer or rnen�bcr r�f a board of �tl�is st���t�; ��r c�f � ciistrict, cat��ty, munici�ality, precinct, sci�pol districi, or other pali�tic��l subdivision �f` tl�zs st�ate."6" A 1�I��I� is a political stiibdivisioz� cre�tcd �indcr Tea��s �"anstitu�tion az-ticle ���II, secti�� 59.�' �aard n��rnl��rs of IV�Ui�s m�y �ric�t �at�ti��c�i�r�t� ��r�i���l�e ��era�lrse�ment or ap�ointn7e��t �csf` �r7y °��lrlivid���l� ���lated ta �z�y boarc� mem�er within tl7e �thirc� debree l�y consal7�uinity or the second �i�gz��e by ��ffia�zty.6' `��� i�� � �a���• w i �P; ��� ��� t� �G, � ;ro .;, , r �,�, �, � ,., � � �, � , ( �s �s � No. A city council rn�mber c�oes 11ot vic�late c�aa�ter 573 of th� C�ove�i-r��r�en�t C;ode �rhen appointin,� a�lose relativ� to il�.e b�ard oi an ecc�nor�lic r��v�lo�rr�eri� cc�rp�z-at�a.o7:r (E��C).�� ,4. pu�lic �fficial is fr�i-bidden �to appa�iilf:� cc�r�finn il�e appointment �f, or v�te far �th� ���o�nt�nen�t or c�i��irniation aF �n �ndrviclual tn a persi�tlon that is to be d_irectly o�r �iric�irec�ly c4�mpems��ted �1xc�rn pul�lic fund� c�r f�es if �khe inciivid���a1 znd t�e public of�°ici�l ��c rcl�tec� w�tl7i�r� �tlze thirc� c�egr�e �� crnsan�uinity� c�r wi�thi�a th� s�cond d�;aree �y af���ity.65 �-Iow�vcr, the l��v�lc��r��e�?t C'�rpcar�tialz A�;t states that 1nErribers of the boarci o� dir�ct�rs of` �n �,I�C �h�l.l s�rve v�rrillc��ut co�ipex�sa�ior�. e�cept %r bei�� reimbtiirsed for tlzeir actual expenses inc�irred l� th�, perfornzance of ihei� duties.G6 'The st�t�ztory rcimbtiirscinent far rr�e�mber'� actu.�l expLnses ia��ur�-ed ��� n�t �;or�sicierer�. co�rn�e�nsatiozi for� purposes of sectio� 573.041.��' Thus, thL r�cpoti�m la�v s�vo�rld x1�t� apply. 4�m 11�I�,y � ��bla� ca�`�i���� ����� f����� �ppr���l �af° r��ssIl�����ts �� ����� �°�l�ta��� ��nc�� h�v� lbe�� ��a�9:���������y� �rr�p��y�c� �i� ��� �� ���° c���4��t����`� A public c�f�icial's r�elative wl�� is witlzi.�z �khe ihird degs-ee of coris�.���rainity c�r �;econd. de�r�e c�f �fiinit� may �t�t be em�loyeci izz a posi�tic�n �tl��t� �the �rublic official �a�y a�ps�int.�� Ilovvev�er, 111 ern�]oyee wl�ose close r�la�ivc is �lected ar appainted tc� r�ffice rnay� retai2z �m�loyznent if, �r.ior to �t11e r�la�tive's �lectio� 01� ap���i�ti�zea�t, ihe �mploy�;e ha:� been cc��tanuously �rraployEd ig7 �th�;� position for a certain period �f tii��.�� "Th� ptiiblic� ofiici�l rnay� ilat dela.berat�, �r v��te o�ta. "the ss IcJ. � 573.0�1(b). S9 1�. §� s73.ogl�a}, ,os2. �o Op. Tex. Att�'y Gen. N'o. JC'-184 (2000). �� T�x. c�ov��1� co�� ar�N. § s�3.aoi (�)(B) (�re5t 2004�. �' Op. Tex. Att'y Uen. No. JC-1 84 (2000). �i3 T�x. Gov''r C"on�; A��v. �� 573.002, .041 (West 2004). �4 Tex. Att'y (�er1. LO-96-10. F>� Tr.x. Gov'T Con� ANrr. § S73.U41 �(West 2004). 66 'TEY. LOC. CiOV'T CODEANN. �S SOl.O62(d) (WeSt St1pp. 2OI I�. 67 Tex. Att'y Gen. T,O-96-10; Ol�. Tex. Att'y Gen. No. JM-1�5 (19£34). 64 Ti�:�. Gov'7� Ct��g ANN. fi�§ 573.002, .041 (West 2004); Op. Te�. Att'y C�en. 7Vos. JC-]93 (2000); JC-.336 (2001). �� T�x. Cov'� Co�� Aivtv. �,' S73.062(a) (West 20�4). 2012 T"exas I`�epotisin Laws 1Vlade ��sy � Of"�ce of tlre At�orrzE�y C��eneral � 'T����s �1�pc������ L�.�� I��c�� ���y appoi�atment, r�ap�oii�tme�t, �o��rination of �11E ap}aoirltment orz��ap��crairt����nt, ��rr�,l�7yr�eazt, rc� e1r�ployment, char��e i�� s�t�ttzs, compells�tiotz, �r c1is��issa.l �t'" s�u.ch coi�tin�zal�sly employecl r�la�tive.70 The public of`ticial n�ay tak� action with resp�ct tc� h%� ar ��r ���;l�tive c�n1y if tb_E acf.io� is "bas�d iz1 objectivc crit�ria" ancl i-nay ��t take any suclx acti�7� tl�at �ll�ws "lor th� �r�fer�nce t�r �i�c��etian o�" t�e officehalder.,"-r' F'or exa�nple, a police chi�f wl�o �as �r�al �p�roval trf en�pl�yi7lent and reassi�n�ner�ts �vithin the pol.ice cicpartment is prolai�it�;� frc�n� app�oving the tra�zasfers of his son �r r�eplz��nr b�c�use tl�e approv�l x�c�uires �n cx�;rcr�� c�f the cl�ie�'s , dis�:retion.'- 70 IcL� ��5' S73.062(b). �i J Tex. At�t' Cren. Nas. I�M-46 1991 , JC-193 2000 ; JC��-336 2OO1 P� Y � )' ( ) � )• '' O�. Tex. Att'y Gez�.lVos. JC-1�3 (2000); JC-336 (2001). 2012 Texas 1�Te�otisn7 Lativs TVSade Easy ��ffice of the �litarriey Ge�eral � I � �#'. �� i �at�;,. �� � , t �, � �� ' �j r � �� .: ,+ ,, r �; � � � : � � , , , „,,, , � , r ,,. � �,,,, , ,, s � „ o � � � ` 9� d � l�� r �c�a.l., �s��v� � �s�.o� l V.ToC.A., Local Government Cade � �S;�o���. F�age 1 oi ]. Vernon°s �Cexas Statutes and Codes �,nnotated Cun�entness Local Gavernment Code �(I�efs & ,�nnas Title �3, Arquisition, Sale, or Le�se af Property Subtitle A� Municipal Acquisilion, Sal�, or Lease of Property "`LJ Chapter 252a Purck�asing and Contracting Authority af Municipalities Refs & Ar�nos �'�J Subcl-iapter B. �cscr���titisre Bidding or ��rn��tit6v� Proposals Required (Refs & Annos) �§ 2S�o��1m �e� p�titior� ���uir� ���s f�r �c�r�h��e� (a) Before a municipality may enter into a conf:raci� that requires an ex�.�endit�.ire of more than $50,0(70 from Une or more m�ar7icipal funds,, f:he municipality must; (:1) cnmply with the procecJure presc:ribcr� by this subchapter and Subchapter C fc�r c�rr�g��tfitiv� sealed bidding or ��cr��z�toi��r� sealed proposals; (2) use the reverse auctic�n procedure, as clefined by Se�tion 2155.062(d), Gavernment CadP, for purchasing; ar (3) comply with a method �iescribed by Chapter 2Z67, Goverr�ment Code, (b) /� municipality may use the ��er���t�ti�� sealed propa.sal procedure for the purchase of goods or s�rvices, including higf�i fechnolc�gy items �r�d insurancea (c) �fhe gaverning body of a rr7unicip�lit� thai: is a�nsicleriny using a method other than ��a���t�ti�r� sealecl bicldin� must determine laefare natice is given the methad of p��rchase that prc�vides the best value for thc� rnunicipalityo The gcaverning I�ady may c�elegatP, as appropriate, its authari�y under this su�sectir�rr i:r� a desiynated r�present�tive. Tf the ��m���etirr� sealed proposals requirement applies ta the contr�ct, the m�,inicipality sh�l( r_onsider the criteria described by Section 252.043(b� and the discussions cc�nduct�d �ander Sect'ion 252.04z to det�rrr�ine the best value for the mur7icipality. (d) This c;ha�ter daes not ap�ily t� the exp�nc�itur� af municipal fur�ds that arP derived from an �ppro�riatian, foan, c�r grdnt r�reiveci by a municir�ality fram tr�e federal' or- state yovernment: for c:r�r7cJucting a c:�mmc��nity clev�fopmen� program established under Chapter 373 if under the program items are �urchase�� under the req�aest-for-proposal process described by Section 252.042, A municipalit:y using a rec�uest-fc�r-�roposal process �inder this s��bsection shall also comply with the req�airements oF Sectian 25L.0215. ht��://�r�,1�2.vv�st:ia�vocc�n�/re,sult/d��cun�.enttext.aspx`?mt=99�d��=T�'.-ST-A'�1&eq=Welco... 1/24/2013 W�'s C ���1N V."I'oC.�., �,c�cal Gover�7ment Code ,��' �52. OG2 �� Effec�trv�e(See �C'exf Arnendrnents� �lernura's TPxas Sta�utes and Codes Annota'ted C,�ir�rentness Loca1 Governz7�erit Code (Re�fs &: Arinos) T'itle 8, Acquisitian, Sale, �r [,ease of �'r-c�pea�-ty Su'btifile 1�. S�/Iuuici��a] �cquisiticin, Sale, or Lease of P��o��eo-ty �� C1��i��ter 25?. �u1•cl��si.ng ar�r� Conh�acting Authorit�y o�f ,i��Iunicipalities (I�efs & Ani�os) �I� Subcliapter D. Es�force�r�ent �� � ��2. 062, �:'e-ianfe��l F"�rA�ltaes I��ge 2 ��f` 4 Page ] (a) A 1-�uni�;ipal officer or ear���loyee con�rmi�ts an offense if the officer� or em��loyee intentionally or kl�ov��in�ly t��al:es oz° a�lthorizes separa�te, ,seylr�n��al, or cc�mponen9: p�u-chases to av�id tl�le cornpetitive bidding require- n��erris ��f� Se�ction '?5?,(�21. An �fferase ur�der this suL�secti�n is a Class 'B �nisdemea»or. (b) A muriicip�l ��fficer or ��inployee �r�n�i��its an off`ense if' the of.�cei� or employee inteztitiona]ly or lcnowin�ly �violat�s Section "?5?.(J? l, otl��l° Y.h�ra �y conclLict des���i�ed by Stibsec�t�ic>n (a). !�n c��Ffense �u�der this s�il7sectior�l is a Cl�ss � misd�rnear�or. (c) A rY�aunicia�al a�F�cer oa� ernplc�yee c�77r����nits an offense if �[he of�cer or ernployee intentionally or 1<nowingly violates this cl��apier, other tl�an by cc�nc�uct desc.ribed by S��bsectic�n (a) or (b), An o�ffense under tl�iis subsection is � C"lass C' r��isderrrea7�or. C`REDIT(S) Aets '1987, 70t)�� L,e��., ch. 1�9, 5 1, ��ff. Se�f�. l, lyb%. Azzlende�l b}� Acts 19�9, 71st L��g., c1�, 1250, � 3, eff. Sepi�. 1, 1989. %�ISTOIZICAL, .AI�1U S'I'Ai'LJT'O:R.Y 1�IC7TES :�005 Main �olume Aets 1�»9, 71s� Leg., ch, 1:250, in �fhe section headine;, substitut'�d "penal'ties" f"or "penalty"';� in subsec. (a), sub- stituied "`intei7tionally c�7~ know�n�ly°' for "1<nowingly or intenCioi�ally", "separate, seq�engial, or component pur- cl�ases to Avoid" f"c�t° "a purch�se ir� �i-der to avoid cornpliar�ce witl�'", arid "SecYion 252.021" for "this chapter"; redesi�riat�cl forme�- subs�c. (b) as the l�.sC se���tence c�f subyec. (a) and substituted "subsection is a C]ass B mis- derneanor" fc�r "secti�n r's a Class C inis�le��eanc�i°'°; ar�d �dcied subsecs. (b) and (c). �O 20'13 �"homson Reute�-s. No C'lai�1� to Orig. US Gov. A�lorlts. httpe!/we�[�Z,wes�tl� r,�.co��1/1�1-int/p�-intstz°ea7n.aspx?rs=WLti�113.01 �cl�stinaiiozz—atpc�mi=99... 1/24l'� 013 r�f � li;�j 1. � f� IY `�'X I'E�I'�1�AI� � �6.0� , , � � � � • +� 1/ernan's Texas Statutes and Cades Annotated Currentness ��n�9 Code (Refs & Annas) "`i� Title 8. Offenses Against Public Administration °`%�_.Chapter 36, Bribery and Corrupt Tnfluence (Re�s & Annos) �§ �3����0 �r°�t���°� �age 7 of` � (a) A person commits an offerlse if he inten�ianaliy or knowir�gly offers, canfers, or agrees ta confer on anathero nr snlicits, accepts, or agrees ta �ccept Prom another: (1) �ny benefit as cansider-ation for the recipient's decision, opinion, recommendatian, vate, or ather exercise of discretion as a puk�lic servant� party officiai, or voter� (Z) any benefit as cpnsideratioa� fnr the recipient"s decision, vote, recommendation, or other exercise of afficial dis�retion in a j�,idicial r�r administrative proceeding� (.�) any ber7efiit as consideration far a violation of a duty impased I�y law on a public servant or party cafficial; or (4) any benefit that is a politicaf cantribution as defined by Title 1S, Election Cade, �N1 ar that is an �xpenditure macle �nd reparted in �ccardance with Chaptee° 305, Gavernment Code, if the benefit was affered, canferred, salicited, accepted, c�r agreed to purs�ant to an express agreement tn take or withholc� a specific exercise°r�'F r�F�i�aial �liscretic�n if s�ach exercise of offici�N discr�tian wc�uld nat have been tak�n or with�7eld but for° lhe benefit; riotwithstancling any rule of evidence or jury instruction all�wine� factual inferer7ces �n tr�e absence of certain evidence� direct evic;ence of the express agr�err�ent sh�ll I�� rec�l�ired in any,pr-casecution under this subdivisian. (b) It is no �efense to prosecution under this section that a persan whom the actor sought to influence �vas rrot c�ualifie� �o act in the desired ��a� whether be�ause 1rvrr: had not y�t assumed �rffice �r F�e M�ctl«d jurisdictic�r� or for �ny cather reason, (c) .It is r�a clefer7se ta �rosecutioi7 uncier �his seetinn that the benefit is n�t offered or conferred c�r tF7at it7� t��nefi� is not solicited ar accepted until �fter: (:t) the ciecisior7, opinior7, recommendation, vote, or� other exercise of discretion has occurred; or (2) the public servant ceases i:a b� a public servanfio (d) It is an exce�tion ta �he ��plication of S�abclivisions (1), (2), and (3) of Subsection (�) that th� bPnefit is a palitical contribution �s defined by Title 15, Election Code, or an expenditure made and r�portecl in accarclance w(th Ct�apter 305o Gavernment Cade. (e) �n affense undeP- this sectinr� is a��Inr7y of the secand degreee h�tt�://��ve�2.westlaw�.coi11/result/documentiext.aspx?n�it=99&db=TX-ST'-AI`�1�eq=Welco... 1/2�%201� � � � 'r � % �* � � � ;� J ` � t �� W�s����vu V.T.C.A., Pena1 Code � _>6.03 � � �.Eii°eciavee[See'�'�xt'Am�nr�rri�en�s] Ver�non'.� Texas Statutes and Codes Annotated Curxent���ess �en�l Code (.Ref:s & Annos) �� I'itle ��. Offenses .Against Pl.zblic .P, dminisiration �i� Chapter 36., E3ribery and Cox�rupt Infiuence (I�efs & Armos) �� § 3�i.03e C'a�z°�ian a�ffPublic Serv�zat' or Votet° (a) A pei°son coznrsiits an offense ifby means o1 caercion he: �'a�� 2 c�f E� �'age 1 (1) inf�uez�ices or attezr�pts to influeilce a ptiblic serva�nt in �� s��ec�c e�ercise of his officiai pc�wer c�r a speci�c perf�oz-znance of has offici�l duiy c�a° infiuez�ces� c�r atten�pts to influence a�pub'lic servanY to vi�late the public servant"s knowrl le�al dufiy; or � (2) :inElue�ces ��t attem��ts t� influeiic� � vc�ter not t� vote or to vote in a�ar�icular maraner. (k�) �1n offense��under ihis section is a Glass A�misdemeanor unles�s�the coercion �is a threat to commil a felony,��ir,. which dvent it �is a felony of the thi�d deo ee, (c) It is an e�ceptic�n �to t�e ap�lication of S�ibsectic�n (a)(1) of This seation that tl�e person who influences or at- tezrzpts t�7 influe�rzce th� public servant is a�Zenxber of th� gove�ning h�dy of a�«vernmezita� en�tiry, and th�t the acti�n that iniluez�ices or �ttempts to i�ifluenee t:�e public servant is an afficial act�ion �taken by� the mem'ber of the Qovernin� body. F'c�r �tki�; pu�rpo,ses of� tr,r�is subsecti�n, t11e tern7 "of�ci31 actian" inchzdes cleliber��tions by the gc�v- �rnin� bc�dy of � �overnmenta:l en�tity. C1�EDI7'(S) �lcts 1�373, 63r�1 L,e�_, p. 88�, ch. 399, § L, eff. Jan. �l, I974. l�mended by �cts 19�39, '71st Le�., cll. 67, §� 1, 3, eff. Se�ii. 1, 1989; Acts 199;3, 7�rd Le�., ch. 900, � 1°O1, ef.f. Sept. 1, 1994. �zrs�rc��zsc�L A�rD s�ca.�rv�rc>�� r�o�r�:s �011 �Iain Vollune Acis 1989, ilst Iae�., cFi. 6"I in subsec. (�)(1) iz7serted provisions relatul; tc� influencing a public servant to viol- ate � l:nown le�a1 duty and added subsece (c). Cc7 2013 Thomson Reuters. No Claim to Orig. US Gov, Works. http://�nr�b2e v,r�s�tlaw.calri/print/�rin�ts�tr�ani.aspx?rs=�WI1W 13.01 �destination=atp&mt=99... 1/23% �01 � f s J �� ^;' � ;� J � i�1i'a, f �a. T� F'1�,I�IA.I�, � .�6.04 V,T,�;".�., Penal Code � ��.�D� Vern�an's T'exas Statutes and Codes Annotated Currentness Penal Code Refs & Annos ``iJ_Title 8a affenses Against Public. Administration `':� Chapter 36. F3ribery and Corrupt Influence (Refs & Annos) �� ��.��a ���a�°���u° I�fBca�u��� C'a.ge 1 ofi 1 (�) A person commits an offense if he privately addresses a representation, entreaty, argument, or other rommunication ta any public servant who exercises or will exercise official discretian in an adjudicatary proceeding with an inteni ta influence the a�atc�me of the proceeding on the basis c�f c�nsideratinns other than those authorized by lawa (b) For p�arposes a� this section, "�adjudicatory proceeding" means any proceeding b�fore a court or any oi.her agency �f yovernmen� in which the leyal rights, pGwers, duties, or priviler�es of specified p�rties are d�termined. (c) An offer�s� under this section is a Class A misdemeanor, htt�:l/�veb2.vaestla�n�.coz�nlresult/clocumezittext.as�� `�mt=99&�db=TX-ST-ANNc4ceq=Welco,.. 1/24/2013 r � 1 �� � i t � t � ; �',�� �'" T� P1�1�1liT, � wi6.OS �oi,CeA.F Penal Code § 36.05 iCernorl"s �fexas Statutes and Codes Annot�ted Currentness Perial Goc�e (Refs & Annos) "L7 Tikle 8, Offenses Againsi I�ublic Administration °`� Chapter 3C, Brib�ry and Corrupt Influence (Refs & Annas) § �E�o(��m T� �a�a�cn� vv�stl� �itn��� F'��e 1 �� 1 (�) � person commits an offense if, with intent to influence the witness, he offers, confers, or agrees to confer any benefit or� a wi�ness ar praspective witness in an official proceeding ar coerces a wltness or �rospective witi�ess in ar7 offir.ial prc�ceeding: (1) to f:estify falsely� (2) to w�thhald any testirr�onyF infiormation, document, or thing� (3) ta elude legal pracess summoning him to testify or sup�ly evidenc�; (4) ta absent himself frorr� an official �roceeding ta whid� he has been legally summonedr or (5) tca �bst�in fram, cfiseor�tinue, or delay the prosecutian of anathero (�) A witness c�r prc�s��ctive witness in an official proceeding commits �n offense if he knowingly solirits, �ccepts� r�r �'e�r�e� ta acr_e�t:°�n'q'.ben��fit �'n"th� re�resentatian or understanding'tl-�at h� wil� da any nf the thine�s specified ir� Subsectian (a). (c) �t is � def�nse to prosecutinn under Subsection (a)(.5) that th� b�ne�it received was: (1) reasanable r�estitution for damages suffered by tl7e complair7ing witness as a resul� of the offer7se, �ncJ (2) � result c�f �r� ac�reemeni negotiated wii:h th� assistanc;e or acquieseence of an attorney For tr�e state whca repi-eser�ted the skate in the case. (d) An r�ffense under this section is � felony af the third c�egree, except that if the official proceeding is �art of the pras�cul�ior� of a criminal case, ar� offense �ander this sectian is the same categary af offense as the mas� seriaus offense charged in that criminal ease. (e) Notwithstanding Sut�section (d), if the mast serious o�fense charged Is q� capital felony, an offen5e uncler this section is a fel��ny c�f the first degree. (f) If conduci th�t canstitutes an offense under this section also constitutes an offense under any nther lavv, the actar n�ay be prosecuted under this s�ction, �he other law, or both. Ia�t�tp://web2. westla�w,�: om/resultldc�currient�text.asp�?ss=CNTc�cfid=2�mi=99�oz-igin=Sear,.. 1/23/2013 � f � � �/ � ,I s �, f � � i �'� I':E�,hIAL, � �6a06 �,ToC.A., P�raal Cade � 3C�.t76 Verrron"s Texas S�atutes and Cacies ,4nr�otated Currentness Penal �;c�de �{Refis & Annos) � "�J Title 8. C7ffenses Against Public Administratiar7 "'� Chapter 36o Briber,r and Carrupt Infl�aence .(Refs & Annos� �`§ �����o ���t�u�tiarr �r ��t�0i�ti�n �-���e 1 of` �5 �. � _. (Z screens) (a) A person commits an r�ffense ef he intentionally or knnwingly harms or threatens tc� harrr� another (�y an ur�fawfiul �ct; (1) in retaliaf:ir�n fc�r or an accour7t of the service or� st�tus af �r�other as aa (A) publfc serv�r�f:A witness, pras�ective witness, or informant; ar (B) p�rson who h�s reported or who tl�ie actnr knows intencis to reparfi �17e accurrenc� c�� � cc°ime; or (2) to pre�ient ar delay the service af another as a: (A) public servant, witnessp �rosper_tive witness, r�r informant; ai° (B� �ersc�n who h�s r�epc�rted �r who the actar knows �ntends ta rep�rt the occurrence af a crime. (b) In this section: (e1) "Har7c�rabCy ref;ir�d p�ace c�ffir.er" means a peace offiicer whoo (�) ciic.i nofi� re9:ir�P in li��� af arny disciplinary actian; (B) was elfc�ible to r-etire frcam a law enforcement agency or� was eneligible to reiire orily as a result �F �r� injLary received irr the cours� c�� the o�ficer's emplaymen� with the �gency; anr_I (C) is er�titled ta receive ��ensian or annuity for service as a law enfarcement officer or is not entitfeci to receiv� a pension or annuity only bec�use the law enfc�rcenlent agency that employed the afficer does nat offer a�rensior� c�r° annui9:y to its emplc,yees, (2) "`Infiarmant" means a persor7 whr� has communicated information to the gnvernment in corinecYion with any goverr7mental Function, (3} "C��iblic s�rvant" inclt�id�s an rronorably retired peace officer. (c) An offense under this sectic�n is a felony of the third degree �anless the victim af the offense v�r�s harmecl ar fhreatened because of th� victim's service or status as a juror, in which event the offense is a felony �f �h� s�concl d�gr�e, C.�Z�L�IT(S) Ac�s 19i3, 63rd Lego, p. �83p cho 399, � i, eff. Jan. 1, 1974. Rmencied by Aets 1983, 68th Leg., p, 3Z38, ch, .55�, � 9, effe �ept. 1, .19�3; Acts 1989, 71st Leq. ch 55I � i eff Sept 1 i989� Acts 1�93; 73rd Leq ch. 9U0, � 1.01, �Ff. Sept. 1 1994; Acts 1997 75th Leq ch �39 � i eff Sept 1 199i; Acts 200�, i7tri Leq, ch. 835 � i eff Sept 1 2001; Acts 2003 78th Leq ch 246 � 1 eff Septn 1, 2003� htt��//�veb2ow�silawecr�mlresult/d�curr�enttext.as�x?numparts=2&ss=C'N'1��cnf=l� JCc�.;nu... 1/23/2(713 f �� � �: ? ���-��� ��;r���.�, � ��.a� Vo��C.Ao,, k�eriaf Cac�e § 3roU8 Vernan°s Texas Statutes �nd Cndes Annatated Currentness P�nal C.ode (Refs & Anr�os "�1 Title 8. C�ff�nses Ac�ains� C'ublic Aclministration °`� Chaptei- 3C. Bribery �nd corru�t Influence (Refs & Annos) �^� ��o���n ��i� tc� 6��s�sric ��;����� by 9��rs�� �a��s���� tc� Eii� �G��°e�c�o�toc�r� ����� 1 �f l. (a) A public servant in an agency performing regulatary functions or conducting inspection.s or invesiigations camrnits �n ofifense if he salicits, �ccepts, or agrees to accept any henefi� frorri a person the public ser�va�t krac�ws �o b� si.ibject to regulation, inspertion, or investigation I:�y the �ublic servant or his ager7cy. (b) � pubfic se:rvan� ir� ar7.ac�ency h�vir�g.custady.af prisoners cornmits an offpnse if he solicits, accepts, or agrees to accep�: any t�er7e�it irnm a person the publir, servant knows to be in his custody c�r the custocly af his ac�ency„ (c) A public servar�t fn an agency carrying c�n civil or crirr�inal litiga�ion on behalf ai g�verr�mer7t camrr�its an affens� if he sr�licets,. �ccepts, c�r� agrees to accept any ben�fit fram a persc�n against whnrri the �ublic ser�vant knovvs litigation is pending or cantemplated by tr�e public servant or k�is agencya (d) � public servant whc� exercises discretion in connection witr7 contracts, purchases, payments, cl�irns, �r� c7t�7er p�c:uniary transar�t:ic�ns oi� gr�vernment commits ari r�ff�nse if he �oli�its, accepts,. car agrees �a acce�at �ny k�enefit frnm a person the pubiic servant knaws is interested in or likely to becorr�e interested iri any c�ntr�ct, p�.irchas�, payment, ciaim, or transaction involvir7g the exercise of his discrefiiono (e) A public servant who ha� judic:ial or ac�ministrative authority, r�vha is emplayed by or in a tribunal havinc� judicial or adrr7inistrarive �uthori�y, or wP�a participates in the enfUrcemenC af t:he tribur7al's decision, comrr�i�s an off�nse iF h� scalicitsq �ccepts, or agrees ta accept a�y benefit fr�or�n a person the public serv�ntW knc�ws is int�rp�t�d in c�r likely ta become interested in any matter before the public serv�nt or trib�an�l. � (f) A rnember of the legisl�ture, the gc�vernar, the lieutenant governc�ro or a person em�loyed by a merr7ber ofi th�e legislature, th� governar, the lieutenant governor, or an agency of the legisla�ure commits an offense if he salicits, arrepts, ar agrees ta aecept any benefit from any persai�. (g} A public servant who is a hearirig examiner employed by an ayency perfiormin� reg��latory functioris ancl who conduct,s hearinc�s in c.eantestecl cases cammits an offense if the public servant salicits, accepts, or agrees �:� accept any benefit from any person who is appearing be�ar�e th� agency in a cantested case, who is dc�ing busir��ss with the agency, or v�rha the public servant knows is interesteci in any s�natter befc�re the ���iblic servant. The exce�tican �ar.ouid��J by �.�r.,1,0ib) does. not apply to a benefit �encler khis subsecfiic�n. (h) Ar� offense under this sectian is a Cfass A misdemeanor�m (i) A public s�rvant who receiv�s ar� �_insolicited benefit that the public servant is prahibited fram accepting under� �his sectian may donate the benefit to a governmental eratity that has the authority to accept the gift-or may donate the beriefit to a rec�gnizPd tax-ey-err��t e��rit�b�� organization f�rmed for educational, religiaus, or scien�ifir. purposes, lxttp://��n�e�F�2o westla�w.cc�m/result/documelitt�xt.asp�?ss=CNT�4: cfid=2&i7�t=99&orig�t�=Sear... 1/2�/2013 7-'� I'��1�iAr ;� ��6�10 1/.,i�.Co,4., Penal Code � 36.:1Y0 Vern�n°s Texas Statutes and Codes /�nnoi:ated Currentness Penal Code Refs �. Ai�nosl "'i� Title H. Offenses �,c�ainst f�u�li� �Adminis�ration �'i� Chapter 36o Bribery� and C�rrup� Intl�aence iRefs & Annos) �� 3�ai�m ����A{��a�A��b6e F'��e 1 c�f 1 (a) Sections 36.08 (GiFt to Public Servant) and 36.09 (Offering Gifit to Public Servant) cio not apply tn: (i) a fee prescribed by law to be rec,eived by a public servant or ariy other benefit tc� which the public servant is lawfully entitl�d ar for which he gives legitimate consideration in � capacity other than as � �ublic servantP (2) a gift or ather benefiit canferred on account of kinship or a personaP, professivnal, or businPSs rel�tion.shi�r independent of the official status of the recipient� or (3) a benefit ta a�rc�iblic servant r�quired to file a sfatement under Chapter 5"72, Government Code, or a report ur�cl�r Ti�le 15o Electi�n Cor�e, �FN11 that is derived from a function in hc�nor or ap�reciation af the r-ecipient if: (A) tk�7e h�nePit �nd the source of any benefit in exeess of $50 is reported iri the statement; ar�d (�3) tri� I�er�efii: is useci'sr�l�ly tt�°c��'fr�y �he �xpenses that �cc;r�ae.. i�7 the perfiormance c�f cl�rties r�r activities ira �onnectic�r� with the c�ffice which �re nonreimbursable by the state or pc�litical suk��livisic�n; (4) a political cc�ni_ributian as defin�d by Title 1S, �lection Caded (S) a giF�, aw�rd, or rr72mento tc� � mernber af the legislative or executive I�ranch th�at is required ta be repc�rted under C.hapter �OSo Government Cade; (E�) �n item vuith a v�lu� of less th�n $S0, excluding cash or a negotiable instrument as descriY�ed �y Section 3.1U4 f3usiness & Comrr�erce Code; (7) ari item issued by a gov�rni�r7ental entify that allows the use oF prnperty oi° facilities nwned, leased, or� operateci by the gc�verr�rnental entity; or (8) transportatinn, loclging, �nd meals describecl by Section 36.07(b). (b) Section 36.Og (Gifit ta Piuiblic Serv�nt) does not apply to food, lodging, transportatian, or entertainment accepted as a guest �r7d, if the donee is required by law to repai�t thase items, repc�rted by the done� in accord�nc� with th�t l,��nr., (c) Section 36.09 (Offeriny Gif� to Public Servant) does not apply ta food� lodging, transportation, or entertainment �ccepted as a guest and, if the donc�r is required by law to report those items, reported L�y the donor in accardance with that I�wo (d) Section �6.08 (Gift to F'ublic Servant) does not apply to a gratuity accepted and reported in accarciance with S.PC:tio,n .11.0262 Par,k�-.and 1lUil�llife �a�+e. Secti�n 36,.0�? (.Off�rincy �ift �o Public Servar�t) cloes not apply to a�r�tuity that is offered ir� accordance with Section 11.�262 Parks and WiIdliFe Code. llttp://wc�� . west,l�i�n�, co�n/rPSUI�t/docuzrlerit�ext. aspx`?ss=�NT�cfi d=2&mt=99�: origirx=S ear... 1/23/201 7 �['X I'F�C�/�L � ;C.09 V,T,C,/�.,, Penal Code � 36.09 V�rnon's ��exas Statutes and Codes Anr�otated Currentness Penal C�de �Refs & Annos) "l� Titl� 8, �ffenses Against Public ,4clmiriistratian °`� Chal�ter� 36. Bribery a�7cl �orrup� Influence (Refs & Annos) �§ 3�a��u �ff��-i�� �iit t� Put�9�� ��rv�r�t ���e i c�f l. (a) A persan commits an offense if he affiersP cnnfers, ar agrees to confer any benefit on a public s�rvant �hat he �<nows the public ser�var7t is prohibited by law from accepting. (b) Ar7 offense rJnc�er this sectiu�� is a Class A misderr�eanar. htt.p,//rn���b2.���res�t(aw�ac�znL��esuli�/c�ocurneil�tt�,�t.aspx?ss=CNT�cfid=2&int=99&origin=Sear•... 1 /23/201 � � r�;, /i l � ,, i i ' �� � � ,,,`; �; , , , , , ,„ � � � �� �'���.�, � :�9.0'� i�aToCe/�.p Pena� Code � �9,02 Vernon's Texas Statutes and Codes Annatated Currentness Penal Cade (Refs & Annosi °`i� Titl� f3, Offenses Against Public Administration �i� Chapter 3�. Abuse af Office �Refs & Annos) �§ ��,O�m A���� �ri �f�o���l ��p���i�y �'a�e 1 �f" 1 (a) A public sew�vant cammits an oFfense if, with intent to abtain a benefit or with intent to harm or defraud another, he intentionalNy c�r knowinglye (1) violates a 9�v�r relating to the publlc ser�vank's offiice or employment; or (2) misuses c�ou�i~n,mer�t,�r,opert�, services, persoa�nel, or�any other thing of value belanging to the governrnent that h�s cc�me into the public servant°s custody or possession by virtue aF the p�at�lic servant"s office or em�loyiTiente (b) An affense und�r Sul�sectir�n (�)(1) is a Class ,4 misdemeanor. (c) An of�ense under Subsectian (a)(2) is; (�) a Class C misdPmeanc�r iF the value �f the use of tl�e thing misused is less than $20; (2) a Class C r��isdemeanor if t��e value of the c�se oi��he thing i�nisused is $2(7 �r me�re but less �han $500 r (3) a Class /� misrlemeanor ifi �he value af the use nf the tt7ing misused is $S00 or rriore but less than $:1,5Qf7; (4) a state jail felar�y i� th� v�al�.ie �f rhe �se c�f the tl�7ing misused is $1,500 �r rnor� ��at less than ��o�oao; (S) � felony oF the third d�qr�e if th� v�lue of the us� af thP thing misused is $2Q,000 or more but less than �10U,0()0; (6) a felany of th� second deyree ifi th� value of the use of the thing misused is $i00,000 or more but less th�n ��U0,000; ar (7) � felr�ny of the first degree if the value �f the use r�f the thing misused is $200,U00 or more� (d) A c�iscaunt or awarcl given fnr trav�l� such �s frequent flyer miles, rental car or hotei discounts, or food cou�ons� are not things of value belnnging to the government for purposes of this section due ta the administrative difficulty and cost involved ie7 recapturing. the discaunt �r ��va,rcl f�ar �, governmental entity. (e) If se�arate �ransactions that violate Subsection (a)(2) are canducted pursuant to ane scheme or continuing course of conducto th� conduct may be cansidered as �ne offiense and the value af the use of the things rnisused in the transactions �nay bP ac�gregated in determining the classification of the affensea (f) �fhe value of the case o� a thing c�f v�l�ae misused under Subsection (a)(2) may not exceede (1.) trie fair market val�.ie of the thing �t the time of the offense; ar (2) if the fair market value of th� thine� cannnh be ascertained, the cost of r�placing the thing within a reasonat�le time after the c�ffense. h�ttp://w�eb2.westlaw,�orr�/zesult/�crcu�rr�en�tte��t.aspx?ss=CNT�cfid=2��nt=9�&origin=�;ear... 1/23/201 � 1,:X: �E]'��1L, � �9.01 11.��C.A.P Penal Code � 39.C7�. �/ernon's Texas Stat�ates and Cacies Annokated Currentness Pena) Code Refs � �innos "'[� Title B. Offenses Against Public Administration '"'i� Cnapter 39� Abuse af Office (Refis & Annos) �§ ��w�1m D��s��t�s�a�� In this chaptero �'��e 1 oF :l. (1) "Law relating to a public servant's office or empinyment"' means a law that specifically applies to � persc�n actinc� in �:he capa�:ity c�� a public servant and that directly or indirectly: (A) impc�ses ;� ,d,�,�t�!; a� •th.e publ�c serv,�n.t; ,cr (B) gcav�r�ns the conduct of the public servant. (2.) "Misuse" means ta deal with property cr�ntrary to: (A) �n �gr°eemenl: under �vhich the public servant 17olds the praperty; (�) � contr-act o� emplayment or oath of office of a public ser-vant; (�) a I�w, irrcludirrc� �ravisic�ns of th� Gene'r�I Appropriatians ,�ct specifically relating �o c�overnment pro�e�:y, th�t prescribes the r-r7ann�r of custady or dispasition af the propert�; or (�) a limited purpas� fc�r which the prnp�rty is delivered or receivedo 11ttp: //�we�2. �vEStlaw�. �orr�/r esult/docun�e,n�t�text. aspx?ss=Cl'�T�ccfid=2&z71t=99�origlll=Sear... 1 /23/2013 �/� / � •,1�� I� �� ,�I (i � f f 2 1, "1� �'E�f�:L, � 39.0� V,T,C,Ao, P�r�al Cocle � 39a0� Vers�on°s Texas Statuies �nd Cc�des Annataterl Currentness Penal C:ade (Refs � Annos�, "`�7 7itle 8. C7ffenses Against P��t71ic Administration °`€� Chapter 39� At7Lise c�f O�Ffice (Refis & Annos) ��§ ������ �ffa�6�l ���a�°���i��a Pa�e 1 of 1 (a) � public servant actir7g under color af his office or employment commits an offense if hee (1} intentionally subjects ariother ta mistreatment or to arrest, cletention, search, seizure, dispossession, assessrnent, c�r lien that he knows is unla�rful; (2) intentionalJ�� d�r�i�s:ai°.irnpedes another in tl�e exercise or�,enjoyment of any right, privllege, pow�r, or immunity, knrawing hfs conduct is unlawful; or (3) intention�lly ,suk�jects another t:o sexual harassment. (b} For pur�pnses of this section, � puk�lic servant acts under color� of his office or emplQyrrien� if he acts ar purports tc� act in an official capacity or takes advantage of such actual or purported capacity. �c) Tn this sec�iar7, '°sexual h�rassrr�enk" means unwelr.ome sexual advances, requests fc�r sexual favarso c�r atk�ec� verl�al c�r physicaN cand�_ict of a sexual nature, s�abmission to which is m�de a term or condit�ni� r�fi ���rsc�r�':s �xercise or �njciyrr�ent of any ric�ht, priviiege, �c�vu�r, or irnmuC�it;y, �ither explicitMy or impiir_itl�. (d) An c�ffer�se i�nclPr thi� section is ��I�ss A misderne�nore ht�p://u�eb2.tivestl�.w.corr�/res�ult/d.acumer�ti�ext.aspx?ss=C:l"�T�cfid=2�mt=99&ori�;in�=�ear... 1/23/2013 r � �; � � � � � � � f i t r r � ��l':� �'�F�tA.�, � 3�eC�� V.�oC,A,p Penal Code � 39,d6 Vernc?n"s icxas Stai:utes ancl Codes Annotated Currentness �enal �ode (ReFs & ,4nnosl � �`�l iitle 8. Offenses Against Public Administr�tian "`i:� Chapter 39e Abus� of Office Refs & Annos �`§ ��o��m M���a�� �f �f�s�i�E IrtF�r�a�s�� Pa�e � �f` 1 (a) ���iblic servant cornmits an offiense if, in relianc� on infr�rmation to which he has access by virtue oF his afflce or er�7�loym�nk �nd that has not been rnaci� public, hea (1) acr�uires ar aids another to acquire a pecuniary in�:erest in any property, transaction, or enterpris� tha� may be affected by the information; (2) sp�culates ar ai�s arinther to speculate on t:he basis af i:h� informati�n� or (3� as � p�iblic servar�t, incl�iding as a�rinci��l �af a srr7ool, coerces anather inlo suppressing or failing ta report that infarmatinn to � I�w enforcement agencyo (b) ,4 public: .s�rvant comrr�its �n oFfense if with intent ta Ubtain a benefit or with intent to h�rm or defrau�i anather� P�e ciiscloses dr LJSes infon�7atior� for a nongovernmental purpose that: (1) he has access tc� by means af his ofifice or �mployment� and (�) h�s no� beer� made public. (:c) ,� r�ersr�n cc�mmits an offense afi� �✓vith inter7t to obtain a benefit or� with intent ta harm or defr�ud �notr�ero he salicits ar rec�ives �ram a pulalic sprvant infarmation that: (1) the pu�lic servant has �ccess �a k�y rrreans af his affice ar employment� and C2) ha� ria�t been macle pu�ali�ce (d) in this sectian, "irsfc�rm�ti�� thai� has r�ot been mac�e public" means any information ta which the public doe.s not ger�erally have access, and rhat is �rahibiied from clisclosure under Chapter 552, �overnrnei�t Code. (e) Exrepk as provicieci tay Si�hsection (�), an offer�se ur7der this section is a felony of the thir�d degree. (f) ,�n oFfense ��nc�er� Suk�sectian (a)(3) i.s a C:lass C misderr�eanor. (�ttp://tive�2,westlawocomlresultldc�cuznenttext.aspa?ss=CNT�cfid=��n7t=99&origin=Sear... 1/23/2013 AGENDA DATE: DEPARTMENT: ACM: SUBJECT AGENDA INFORMATION SHEET January 29, 2013 City Manager's Office Bryan Langley Receive a report, hold a discussion, and give staff direction regarding future capital improvement bond progranls. BACKGROUND The purpose of this item is to provide the City Council with an overview of the planned bond issuances for the next several years. In particular, staff would lilce to: ➢ Detail the debt that is planned to be issued in FY 2012-13 and beyond. ➢ Discuss the proposed process to develop future voter approved bond programs. ➢ Review potential issues with the Public Art Policy. ➢ Provide a series of options that can be considered by the City Council for the next voter approved bond program (including Fire Stations). The attached PowerPoint presentation will be used to facilitate a discussion of these issues with the City Council. EXHIBITS Exhibit 1: PowerPoint Presentation Respectfully submitted: �._ --��;,,' �G%' Bryan Langley Assistant City Manager - � - - - - _ _ Present key elements of planned bond issuances in FY 2012-13 and beyond. Discuss proposed process to develop future voter approved bond program. Review potential issues with Public Art Policy. Present future bond program options. � � � � - - - � - � - - - ° - - - _ _ - .- In 2013, a total of approximately $86.8 million in Certificates of Obligation �COs� and General Obligation Bonds �GOs� are planned to be issued as follows: ��$40.0 million in COs — Electric System Projects. ��� $22.5 million in COs — Water and Wastewater System Projects. ��$7.8 million in COs — Solid Waste Projects. ��$5.6 million in COs — Fleet/Facility requirements and Traffic Signals. ��� $4.0 million in GOs — first issuance related to 2012 voter approved bond program for Streets. ��$2.8 million in COs - Animal Adoption Center. ��$2.0 million in COs — Airport Land Acquisition. ��� $1 5 million in COs — Public Safety Training Facility. ;, . ��$0.6 million in COs — Hickory Street Railroad Crossing. =�� = = _ - - - -� - -� - - = - � � � _ � � -� _ - � -_ - -_- - � _ ��- - � Existing debt of approximately $8 million may also be refunded �refinanced� to reduce interest costs. � In addition, as discussed on January 7t", a$15 million bond program is also under consideration for the renovation of three fire stations. �� Proposed election in May 201 3. �� Anticipated tax rate increase of up to1.8 cents. ,; � As previously d iscussed, COs wi I I be issued in I ieu of Uti I ity System Revenue Bonds for Water, Wastewater, and Electric system projects. �� COs are recommended due to lower interest rate costs. ,; �� While COs are backed by full faith and credit of the City, debt service is provided by self-supporting revenues where appropriate (e.g. utility system revenues�. .- In FY 2014-15, approximately $9.0 million in COs are expected to be sold for the City's matching requirement associated with the Bonnie Brae and Mayhill projects. �� Previously planned for FY 2013-14. ��� Provides some flexibility for debt issuance next fiscal year. .- Each year, approximately $4.0 million in COs is also expected to be sold for vehicle replacements and facility improvements. .- A potential debt issuance associated with the proposed Conference Center is a Iso under d iscussion. �� Exact amount and timing of the issuance is not yet known. �� �� COs are contemplated for this debt issuance as well, but will be supported by revenues from project. - On January 7t", the City Council discussed the possibility of calling a city- wide bond election in November 201 3 instead of 2014. �� A November 2013 bond election would need to be called in August of this year. l ;a �� The Bond Advisory Committee would need to be formed in March or April of this l ;a yea r. �� To allow the Committee to properly vet any proposals, staff would need to l ;a present recommendations almost immediately. - As a result, staff does not recommend that a multi-project bond program be considered by the voters in November 2013. �;� Since staff has not yet identified a set of projects or priorities, additional planning and analysis is needed before a professional recommendation can be prepared. - Recommend approach similar to what was proposed for Street Bond Program. �� This process will ensure that the most needed issues are presented to the Bond l ;a Advisory Committee and the voters for consideration. - Further, staff needs an opportunity to evaluate whether a bond program over a 6 to 8 year period is appropriate. �� Bond programs have traditionally been prepared to cover a 5 year period. l ;a � � - _ _ - _ � - - - _ � - .- In 2006, the City Council approved a Public Art Policy which sta tes: ��"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." .- After much discussion, the Citizens Bond Advisory Committee and the City Council recommended up to $400,000 �2% of $20 million� in public art improvements for 2012 bond program. .- During a July 2012 Hotel Occupancy Tax Committee meeting, staff was asked to initiate a discussion with the City Council regarding possible amendments to the Public Art Policy. �� Concern regarding whether all debt issuances (COs, GOs, Revenue Bonds, etc� are subject to the policy. - - - -� - _ - - - .- As written, the Pu b I ic Art Pol icy does not p rovi de the City Council with any flexibility to limit, increase, or reduce public art funding based on the size of future bond programs. �� Next bond program is expected to be approximately $60 million. $1.2 to $2.4 million would need to be dedicated to public art based on current policy. .- An option to the current policy may be the creation of a separate fund for public art projects. �� Fund would maintain a minimum balance of $500,000 but not more than $1 million for eligible projects. �� Source of funds would be voter approved bonds OR any other source deemed appropriate by the City Council (e.g. General Fund, etc.� Would provide more immediate ability to fund worthy projects. Allows funds to be replenished periodically based on need. � - - - =- - � � - - - =� � � = � =- � - - - - - � = = � - The Public Art Committee currently serves in an advisory capacity to the Parks, Recreation, and Beautification Boa rd. �� Since potential public art projects may be at the Airport, Conference Center, and other facilities, should this committee advise the City Council directly? - Based on City Counci I d i rection, staff wi I I bring back more detailed recommendations on the Public Art Pol icy in a Februa ry work session. � - - - - - - - - - - -� - - As discussed previously, staff is proposing a bond election in May 2013 to renovate three Fire Stations. �� Proposed to address critical need in Fire Department facilities. ��$15 million issuance for design and construction costs. �� Anticipates a tax rate increase of up to 1.8 cents (Debt Service Rate ,; Only�. In addition, a 1 cent tax rate increase is planned for Operations in FY 2015. �� City Council would need to call for election between February l Oth and March 1 st. - If this debt is issued in FY 2013 or FY 2014, a tax rate increase will I i� be necessa ry. �� November 201 3 election would still likely require tax rate increase. �� Tax rate increase necessary even if planned bond program for FY 2014-15 is delayed. - As a result of discussions with the City Council on January 7t", staff has prepared the following options for consideration. _ - - - - - - - - - =- - - =� � - - _ - - - - - - - =- � - � = = � - Option 1: Hold election in May or November 201 3 for Fire Station improvements. �� Anticipated tax rate increase of up to 1.8 cents. l ;a �� Proceed with separate FY 2014-15 Bond Program. l ;a - Option 2: Issue $1 million in COs in FY 2013 for Fire Station land acquisition and design services; $3 million in COs in FY 2014 for construction (1 st Station�. �;� 2nd and 3rd Station renovations would be considered by the voters as part of FY 2014-15 bond program. ,_� Requires no tax rate increase. - Option 3: Hold multi-purpose bond program election in November 201 3. �;� Include Fire Stations and other recommended projects. ,_� Anticipated tax rate increase. - Option 4: Do not issue additional debt at this time, and include station renovations in next voter approved bond program in FY 2014-15. �� Issue minimal amount of COs for required design services. l ;a s:\legal\our documents\miscellaneous\13\ais gas utility worl< session re election.doc c� �,c � ,� ,. AGE��A. DA'�'E: January 29, 2013 I)EI'r�I�T'IVI�NZ'o Legal Depal-tine�lt ��: Anita Bui�gess, City Attorney SLTI3JE�'I'o Receive a report, hold a cliscussion, and give staff diiection regarding a possible citizen election to allow for tl�e s�le of gas and ihe mar]ceting plans associated with the approval of gas sales as it relat�s to the Combined Heat � Power Ec�nc�mic Development I�istrict (CHP- �I�D). 13ACI�GI3OTJNI): The Denton City Charter, Section 12.01 provides that the City of Denton may own, acquire, construct, ln�intain, and oper�te a public utili�y which was not owned and o�er�ted by the City on the effective d�te of tlle adoption of the Ci�ty's Home Ru1e Charter, Feblualy 24, 1959, upon the approval of a majority c�f the c�ualified voters of tlle City. The City of Denton did not own aild operate �a gas utility on Februaly 24, 1959. There�fore, if the �ity desires to operlte � gas utility, authority t7�ust be obtained to do so. The City deterrnined that the area near the Airport Industrial Parlc could develop m�re efficiently if a gas utility were available to iminediately sei•ve the needs of ii�dustr�ial custoln�i°s. The City h�s witnessed relnctance on the part of soine developers to invest in t17is Industrial Parlc sii�ce gas is not readily available. In the 82"`� Legislative Session, th� Texas Legislature enacted Local Gov't Code, Section 552.913 iz� supp�rt the City of Denton's efforts to in�plement a Conzbined �Ieat and Power Ecol�omic Development Distr�ict (C�IP-EDD) in an area near t11e Airport Indusirial Parlc. This lebislation allows the City of Dcnton to own al�d operate a gas utility for certain purposes and in a liinited area of tl�e City. The City Cot��ncil enacted Ordinance No. 2012-044 on February 21, 2012, creating a CHI'��ED.D, under the terms of Local Gov't Code, Section 552.913, and desi�nating and �lescl-ibing the b�Llnd�ries of t17e District. The City Council has now expressed an interest in consi�lering whether to call an election to allow City of Denton vo�ers to determine whether they desir� that the City own and operate a gas utility in the CHP-EDD District. Should the Co�ut�cil desire to pui this n�atter to the voters, there are two ways to do so: Call an electioll to a�neild the Charter. The last Charter clection was in 2009, so it is allowable to conduct � Charter election at this time. A Chartei� �mendment� would essentially call for an alte,ration of the Cliarier eliminating the requirement for an election for the city to own and operate a gas utility. Pa�e 1 s:AIegal\our documents\miscellaneous\13\ais gas utility worl<session re election.doc 2. Call a�i election u�Ider the ierms o�f th� Chartez•. I-�ere, the City wauld involce the powe�° of the Charier to c�ll an election to cletermine whether ih� vote;rs desire to a11ow the City to own �nd o�erate a gas utiliiy. Should the Couneil determine t� call an election, then coi�sideratian needs io be given to where the City desi��es io own and operate the gas L�iility. Oz1e �ossibility is that area desci•ibed in Ordinailce No. 20 �12-044 near t1�7e Airport Industrial Parlc. Howevci�, the Council eould call an �lection allowii7g the sale of gas city-wide or in sonze other area of the City, Council would also need to consider whether to limit the City's ability io sc11 gas to ceitain customers, such as nol�-residenti�l customers. As ei7ac.ted, Local Gov't Code, Section 552.913, only allows the C�ity to sell to industrial cus�iomei�s. I�ecp in mind, the Gity is not liinited by ihe state law provision should an election be called, and coulcl deteimine to pL�t a broader ploposition before the voters. I�C0IVIIVIE�IDAI�IC�I�1a Sho�uld the City Council deterinine to call an election for ihe City to be�con7e a gas util.ity, staff recomrnends C�uncil call an �l�;ction under the Charter in aiz area i�ear the Airport Industrial Parlc, eithcr that �rea described by Ordinance No. 2012-044 or son�e other appropriate area, and allc�w the s�1e �f gas to non-1°esidential custoiners. Attachments: l. Charter 2. Local �ov't Code, Section 552.913 3. Ordinance No. 2012-044 4. 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S�c. 12,U3. - E,xcess r�v_�rruc�s c�_f utilit r�s���ms. �"�e�. 12��.t74;_-�os_<�I c�i utipit�i�« �c,rti�� e �cc�_1�.0�-i.��;oc�w�er��iar7 o�rathercitud��a��pii�neelts. ��,c. 11,06. •- F�es�rve��. ��c�1;�.0 % - �I�hr���,ubli,c uti9ities �a�rs�. ��;r. 1 �'.�1£S, - �'c�vvGi-s �r�d c�uti�s �rf t0w�c�_��al�9ic �aliliticas k�c��rc;l. ���, � �'.�� m � �������� ��o����°� �����p�������P�� ����������. (a) The Ci�y of Denton m�ay license, regulate, fix the rates, control and supervise public utilities of all kinds. � .�'• •, • • • � . ,� � • � � �- • . • , s. . • . . . • •�- .� - . • � r . .' •- .��� r -• • . . • •' ., � , �� � . � . � � . . � , „ • � �; . � � � •� � ,, � , , �•� - � -^� ,•• -�, •�-. •. . . •. . �;• • � • � • r �► •• � -�' � � r- . • • � --r � • . ' M . • . • - . � � � ^ ' . � • � . - . a • - .; . ♦ . . � �- • -• • ���"�A '� �m���. ^� ��a����m - ,. . _ • �� � � . • .' • •• -r • . - .. , r . - • . r • - r • _ • . - . • . - . . •-- �r .• - • �• - ^ . - . � • •- - . , � � �. � .. _ � . , . , � , •,- • ^ ^ • �^�. - . • • - • • .r- - . �_ . , - . _ .� . . _ , r . r• _r � „ . . � � - �- - . - . - . • . •- •;; � � • � - •, •- - • ••.- t _ . •-• -.- • , s •- - . - . - . �w � ►„ • . * - � � - ^ • �� . .- � . ���. �`�°���N � I������ w�����m��,������� �°�� ��������� �� �������� , � � . ., ,, • ^ . • . . , . _ , _ � . . , � � � - . • . • . ��- .���� - � ��- �- r �� .�� ^ .��� . • . • �� , - �•^,� •.��r �• • t�- .�• • ., . � .; - . �. . , . �,.,. ,�. � _ . . , � ,.� .r , � • • •-• � •• .�- • - r r - • • • � � - � - - - •� � •' - • • . � � • _ -. - . • -• . • -• . �- # .R 1 • ' ';� • � # ' : ^� • • . n • '. �I � ' r :�� � , �. .a � � •. ... i . ' ',,. II� . . r ' � �. .� f. �... . . r.. , � � � . « �. ,. ., �� � . �: � n � r. � . A � � � � � # ,, � - � ,. �, � � ., �� . � � ',� � • •' �. r � M,� �*, • � • . � ! �� • � • �'' �'"'�• .• �' � • � !'�� � #'. . � � ���. ���.�, � � � i �'' .I�!�,,�^' . �����^� library.municode.comlprint.asp>C?h=&clientlD=10644&HTMRequest=http°/o3a°/a2f%2flibrary.municode.com%2fl-ITML%2f10644%2fle�12%2fPTICH ARTXIIPU... 1/3 � Municode (b) �xcess ��v�nu�s s9�all be ufiilized at th� tirn�s ar�d fc�r th� purpos�� �s �r�llc�ws: (1) Aft�r �11 af the requiremer�ts c�� the v�riou� funds have be�n met, there shall b� cc�rrrputed � return an the net inv�strnent in the utility system. ihe °°f�et Investment" figure used in these comput�tians shall b� t�ken from the ir�dependent �udit of the utility sysfems f�r the I�st fiscal period. The city shall be entitled to receiv� annu�lly on �h� n�t investment from excess revenues, if any, not rnore th�n six (6) percent of the net investmer�t. (2) Any remaining excess revenues shall be used for the redemptian and retirement o� utility rev�nue bonds, as they became �vailable at nat more than fair market value. If utility revenu� bonds are not available, these funds shall immediately be invested in short-t�rm llni�ed �f�t�s Gc�v�rnr��nt securities �r ai th� option of th� city, placed on time d�posit in the city depository to draw interesto As utility revenue bands becorne �v�ilable, sufficient United States Gavernment s�curiii�s shall be sold or tim� deposits withdrawn ta purchase the longest maturi�ies available or� the rr�arkef. ����w °��Po��. � ��������� �� �,������'Y'��Y��������;o���� No sale, conveyance, lease, or other alienation of the entire assets of any utility systern ar any part thereof essential to continued effective utility service, shall ever be made unless such sale, lease, err dispas�l is �ppraved by a majority vot� of all the qualifi�d vot�rs voting in �n election held for that purpose in the City of Denton. �"���� '���� m � ����a����;'��i�� ��� ������� �m�� �������:��������;�m ihe [public utilities] board shall hav� the right to request the services of any offic�r or department of the city goverr�ment; provided, however, that the utility system shall pay out of its revenues a proportian�te part of the expenses of the department used in an amount agreed upon by the city manager and the board. If they fail to agree, the final decisian on any such expenses shall be made by the city council. ���°�„ ��:,��w � ��������,n C7rd. No. 79��6, § 2, adopted Dec. 11, 1979, and ratified Jan. '�I �, 1980, deleted former ����oQar�,_1 �e.�_d� vvhich pertained to the directar of utiliti�s and �nr�s derived unamended frorn the Charter adopted Feb. 24, 1959. ���ro ����"�m ��'������ �°��������� ����m�������� �����w��w , _ . _ ,• ^. -� . � • - •�r, r �r •^ � •• ^� • . ^ - �. � , , � r- . _ � � . � - �_ • _ s ^,,• .��• .«, • - • � '• -. � . • - - �- - - a ,: _ •-, ,��� .� . • . � f •- • - •+�. � . •^ • -* � • • � • � . •_ . - •-- -• . • • • �• . �: - •- •^- � . � .r - ����, � •- - # - . •�- s • -, r •- • -- � • . ,. - ,�' �- -� � . ,�.,.., f ...�: �. � ....� � ,: t �..,, ✓ /�;• •t..* �, ,�,�• i' r��•��I ' ... � ,, i .f++ r • 1 "" • i '. + �,� . « � �' �" �, " •. • '� +' � �' r � ^� ,� i ^ •!s • . • s s . . • � �1 .r r ., � �. • � �;�� • ^ � .r . � �� � ' � �� . • 1� r! i , ^ ! . •� �� I i h�rary.muni code.corn/pr i nt.aspX?h=&cl i entID=10644&HTM Req uest= http%3a%2f%2fl i brary.muni code.com%2fH TM L%2f10644%2fl e�12%2fPTIC H_ARTXI IPU ... 2/3 1/18/13 �I uni code (c) Ni�rnbers crf ih� publi� �atilities bc��rd sh�ll h�v� th� s�rne qualifi��ticsns �� ar� r�quir�d by rnembership on the city council. (�) Afi its nrgani�atiorral meeting, ��d ��nually th�re�f�er �s sonn �s the newly �ppointed rn�mber (or members) has qualified; the baard shall select frarri its own rr�er�bership a chairman, vice� chairman, and secre�ary. A majarity of the r�gularly appointed members shall constitute a quorum. ihe board shall d�termine its ov�m rules and order of business. The board shall meet a� least once each rnar��h; all rneetings shall be car�duct�d in accardanc� vvith the Tex�s �pen f�eetir�gs P,ct, chapter 551 of the Texas �overnment Cod�, as it may naw read or hereafter be amended and all other applicabl� lavv� and a permaneni record of proceedings shall be maintained, except �s othervvise provid�d by law. ���;� �p��� . ww I��� ��°� ��c��� �.������ ������ �m�l����� �������w�� I�����m (a) The bc��rd shall serv� the deparfinent of utilities and city caur�cil �s a consulting, and advisory board, (b) The annual budget far the departm�nt af utilities shall be prep�red by the director �nd submitted to the bo�rd in the form requared by the city manager. The baard shall reviewthe budget, m�ke such changes therein as they deem appropriat�, then return it to the director who shall deliver it to the city rnanager for incarporation witho�t any changes, in the proposed general budget of the city and transmissior� ta the cc�uncil. (c) The public tatilities baard is h�reby authorized to expend such funds for infarmation and advertising as shall be budgeted for this purpos�, (d) All actions recommending expansion of the system and �he making of addi�ions and betterments thereto r�r e�tensions thereof, th� incurring of indebtedness, the issu�nce of bonds, �nd the fi�ng af r�tes and charges for utility services shall be submitted to the board for review and approval; provided, th�t in case of disapproval, the baard shall within thirty (30) days carnmunicate th� reasons far its disappr�val to the council, vvhich shall have the power to overrule such disapproval, and, upon such overrulir�g, the council or the apprapriate department shall have pow�r ia proceed; and pravided further that all rates and charges for utility services shall be reuiewed by the board and revised or reenacted by the council at intervals not exceeding five (5) y�ars and beginning with the year 1960. (e) ihe baard shall submit annua6ly to the planning and zoning commission (for incarporation in its report), prior to th� begir�ning af the budget year, a list �f recomrn�nd�d capital impravements, which in the opinion of the board ought to be canstructed during the forthcoming five (5) year period. Such list shall be arranged in ard�r of preference, v�rith recomm�ndations as to which projects should b� canstructed in vvhich year. (f) It shall be the duty af the board to act in an advisory capacity to the ca�ancil, with autharity to hold public hearings and to study and recommend p�licies relating to the operation, promation, enlargement, future planning ar�d such ath�r matters involving city�owned utilities as may be r�ferred to it by the cauncil. At ir�tervals not exceeding ten (10) years the council shall af the expense of the utilities involved, c�use a general management survey to be made of all utilities under the jurisdictian of the bcaard by a cr�mpetent management consulting or industrial engineeri�g firm, the report and recommendations of vvhich shall be rnade public; pravided, th�t the first such survey shall be made within three (3) years af the effectiv� date of this Charter. library.municode.com/print.asp�C?h=&clientiD=1064�&HTMRequest=http%3a°/o2f%2flibrary.municode.com%2fHTML%2f10644%2flevel2%2fPTICN ARTXIIPU... 3/3 AN ACT SmB. Nom 1230 relatirig to �he canstr.uction and operation of r_ornbined heating and p�wer fac.ilities ir.l certain munic.ipal�tieso BE IT ENACTED BY T.HE LEGISLATIJRE OF THE STATE OF TEX.ASa SEC'I'T01V 1 m Su�ch�pter Z, C:hapter 552, Local Gaver.r�ment Cade, is amerid.ed by ad.a'i.rig Section 552 . 91.3 to read as follows : Sece 552a913o COMBINED HEATING AND POWER SYS'I'EMS IN CERTAIN MUNICIP�ILITIESo {�) This sect.ion applies anly to a hame-rule munici�alit.y that: (1) has_a �opulation of more than 100,000, (2)_ awns and operates an electric utility that is a mernber of a municipal ��ower agency, anci (3) is 1oca�ed i.n a caunty adjacent to a caunty with a population of more than twa million. (b) To the e�tent this section con�licts with � municipal charter provision, this section controlsa (c) A�nunici.pality may buy, own, corlstruct, maintain, and op�rate a combiried heating ar7d power systern or plant and related infrastructurem (d) The governinc� body of the municipality may designate a Page - 1 -� SaB. Noe 1230 combi:ned heatlrl� and power econornic develop��ent district that includes territory tha�: (1) is wi c�lin thz ee miles of the combined Y7eating and power plan�; �2) i5 ��holly located w:ithin the corpora�te boundaries of the murlicipality, ancl (3) daes not have an inters�ate or federal highway lc�cated within the bourlc�aries of the distri.ct on the date the terr_itory is desigr�a�e��. (e) The muriici�ality may sell ari energy commodity from the system or plant, including electricity, chilled water, s�eam� or gasa The municipali�y rnay sell gas only to industrial customers lacated in Cr7e c�mbined 1-ieating and power economic develapment districto (f) The munici��lity srlall assess fees against a municipal entity selling gas to industrial customers in the cambined heating and powe� economic di.stric�� that are substantiall y the same as the Paqe -2 - smBo Noo i2�o te�s assessed against a gas utility that is not awned by the municipality foi� �ccupation of a municipal right-of-wayo SECTTON 2 a This Ac�t tal<_es effect immed.iately if i.t zeceives a vate af twc�--t�irds o:f. a:11. trle members elected to each h<�use, as �ro�ric�ed by Sc�ctiorl 39, �rt.icle III, Texas Coristitutio�� u If this ACt does not recei.ve the vote necessar_y far immediate ef.fect, this Act �akes effect; �eptember :1, 2011. Page -3 - SeBm Noo 1230 Presiden.t af the Senare Speaker of the House I�-l�rek�y cert:i.fy tha.tM Sol�o Nom 1230 passed the Senate on �1pri1 5� 201:1., by l.he �a��lowing vote o Yeas 31, Nays 0 a Serret�.ry of the Senat�e I hereby cert.if� that SmB4 Nom 1230 passed Che Hause an April Z6P 2011, by t��.e ic�:1.1.c�wing vate: Yeas 148, Nays 0, two present riot �r�ting o ApproTred. o ��ge -4 - Chief C1er]c of the House Date Governor Page -5 - S.B. N�. 1230 �"J � O �,�,. s�:lleg�tl\our dacw��ienLslor�tli��anc�s\(2.1ch��redd iri nir}�ort iird are��,docx ��..��f���� Z`vT�. �a12° ��-� s�`�h�'� O�:DIN�.�1�C� �RF'ATTI�SC`� A�OMBI�I�ED HEAT AI`�1D �'OW�K ECC�NOIVSI(�, DE�/L;LOPM�NT' D�STI'�I�'T (CHP-�S�D) IN TI-IE ,�II�.PORT INDUS�I�RIAL AREA 0�' I?El'�'�'ON, T�?���9 i7�SI�N�A�fI�`�1Cr Al�dD I7�SCRIBING TI-�E R�tJNDARIES OF StJCII I�IS'�'R.IC'1'; A�1D P�'ti(J�IIDINC� Al'�f EFFEC �,IVE DATE, �'I-�EIZEAS, tl�.le C'ity �ou��cil ��f' thc City of I)cnton, Texas clesires to cr°c�te tl?c pr�per �c����ic�inic e�virur�netat to alac3uce tl7e zrlvesiment of priv��te resoLZZ-ces �ii� productive, 1���,�siness er7terprises in tlie Cit�r ofDer�,ton �i�d t�a ��r�vide employme�lt io residez�ts oithe City; and i�I�Ek�B�S, Combirle�i i-ieat ay�ld Power (CIIP) facilities ar� �o�;eneratiou pl�nts, �erierating electricity, challed water ��d stearn, and az'e h�ghly suited to service iiidustrial c��sic�t�ers i�z a t�i-ge�ecl �iic] 1irl�iteci area c�f �otential �rowtl7 in the C'iiy of� Dentc��ti �uhei�e there is a ne�d for• reliab.le, e.fficie�it �ncl cleaa7 ��o�ver a��d thermal eneigy; ai�d VJI-�L;17.EAS, x�atural gas is r.as�d to power CHP geiler�tioil �facilities and is araotl�er energy cozn.rri�odity� v,rhicl� su�a�orts the ene�`gy need.s ofindusti-y; and �J��I.I;I�El��, CHP faczlities �ffer tlzc ad�ed t�enefi�t of �reductian of the emission c�� greenhous� �ases, a c��itucal �c�a1 iY-� ar�as aE' air quality nozi-attair����zent sucla as ir1 n��rih Texas; ari d ��I�IE�ZE!-�S, C,'IIP plarxts require less fucl ta produce a give� energy output, �ulzilc also ���o�dr�g tr•ansi��issrcrn a�nd distrxbuti�n losses �that occur v��l�en electricity �trav�els� loi7� c3ist�nccs ove�- �o���e�r liries; ar�� Vd1�L;R��S, CE-�P �lants ar� ciesigneci to provi�� alternalive high-qual�i%�y� �lectricity anc� th�rmal er�e1°gy �to a c�,tston�er sit� zegardless of intez�ruptioils on tl�e po����er �id, decreasing the �i�pact of powez° c�ui��es, �2��vidix�g st�:�bil�ity� �urin� times of critic�l high 1oad, and in�prc���ing po���er quality for ser�siti�ve equ�ipi���z1t; a.nd ��I�ER.EF�S� in its 82"'d Le�isla�tive ��ssion the Texas �,egislatuz°e lias ePlacted Loca1 Cove,rnm�zlt Cade9 Sec. 552.913 whicli al.loti�s a hame-rule city, such as the City, to buy, o�-vi�, constr�ct, maizatai.n., �nd operate a CHF° systeill witl� relateci infrastruciure, �nd to sell ei�er�;Y coinz��odities �roin sucl� syst�ir� or i.n�ras�tructure, incl�uding electricity9 chilleci water, ste�rzl or gas i�i ��or�zbined .F�eatiz�g ai�d Pov✓er Ecor�omic Developmeni Districti (C�-IP-BI�i�L�7)„ sa desi�o�nated and defined by the gc�verning body c�f° �t1�� munacip�lity, a� a distanee of no greater tl�an thr�e (3) �niles fxoi�� the CI�1' �Ia�It, but �vhicl� baundaries of the rlistrict ti�ay zlot crass any i,Y�tei-state or federal higllways, a�xd said dis�t�°ic� is w1�lcrl�ly �ithin tl�e corporate 1ir�zits of t1�e City, and provided t�liaY �r1y sale oi gas wzll c�n1y �e to iildustl�ial custom�rs, and further il�at upon ��ny sale of �as, �he City �vill �ie assesserl substa�itiall� �th� same f�es as tllose ��aid to ihe city by ito��-ix�unici���11y own�d gas utxli�ies �'or tlxeir crccr�rpatinn of i��ui�ici�al rig�lts�-of-wa� ; and` V�r�I�EZEA.S, tl�� City af Dentc�r� h�s icicnti�iec� an area ilear tlie existin� .�,il-poY-� Ii�d�astrial Par.k r���1ic�1� n�e�ts alZ �he criteria oCL,oc�l Govei-nmet�t Coc�e, Sec. 552.913; a1�r� s�\Ic�al\ouA� �ocuu�icnt:s\�rrdinai7cesU2\c�l�p-erJd in aiiport ind ��rea.cli�cx VU�IF'REASp tl�e C'i�ty Col�ricil oC the City� of :Denton, 7�exas, (tl�c "C�ity'>), desires to proxr�ote �i�veZ�a�men�: a�ea�� t.he Cit�y of I��ntoi� Aiz-��oa-t by the cre�tion c�f a�I-1P-�DD io foster ec�iloi-��ic developtl�e.nt i�x 11�e C�.ty b}r �facilitatil�g tlie ��g-o�-ision �f ecoi��or��ieal a�ld i-eliat�le r�Q��er �to indust�ry and b�u.sin�ss; NC)�✓, Tl-SFREI�OR:E, "I"I-I� CI�'Y COLt1��IL �J�' °I'I-1� Ciz'i'� �P D�NTOI�i HE1ZL�3Y ORDAINS: �ECTION 1. Tl��e facts a1�d ��ecitations contained in t11e abavc �rean�ble are 11�reby found alid d�:clared to b� inie �i7d correct arid ar� :incoz•�orated in this ordil�anee. �E�TIOI�1 2, T'17� C�ity lae:reby cleat�s a"Coinbined I�c�ting and PowEr Fconomic Develo��aent. L7rstrzct"' (C'HI�-EI)I)) ower tlle area clescrilaed in Exh�ibi�t "A", �ttac�ied hereto and as d���icted aia the n�a�p attacil�d .he��e�c� as Exhibii "B„ SECTI�N 3, ��'l��e te��� "i��ciustrial cl�stomei°s" as used �her�iY� i7�eans any c�ustoi��e�rs located w�ithiiZ t�h� �HP-E�7C1 edagag�ed ir� irlciustrial use. activities relatecl to the manufacture, �uarel��lxsing, s1l.ipp�z��, prod�action or stor�rg� of prr�duc�s to �e tr-ansported elsewl�ez�e fc�r r�etail sale, ir�� ludi��g, but noi: 1i�ni�ed 1.r�, assoeiated Ai�zpart uses, uses that llave a i�lortl� Americaz� Indtlstry Classif c�tic�i� �ys�len� C;ade as of� �'�E�ruary� �,t�1�, of 31, 32, 33, and tl�ase uses in Code 22 relat��g� �to electri� �e����ratic�a�1, steaz��, aric� �ii--c�nditiorling supply. S�CTi(�1'�1 4. Tire City of I�etltan's i;�:o�noa7lic Developm�nt Director a�7d the �,conomic Dev�iop��7ent� I'artrlersl�a� Boa.r�d, ii� coi�sult�tiai7 �with Deizton Municipal Electric, are 1lerek�y as�i�z��d� � the �iaslt of �z�ea�tin� Guid�lrn�5 fc�r° Irr�:entiues within �hc CHP-CDD, to includr; �-ecorr�n7e�c�aticrns; as t�a th� types of b��si�z�iesses 'besY suited for �-ecruitment� to the District, erni��asizing I���Sir.��sses �vvl�iicl� ar�c iz�dustl�ial in nature a�7d higl� users of �kie ener�y commodities tc� b� .mad� a�rail�l�(e; as t�7 the econ.�rcl.ic de���wlopi��ent ii��:�:nti.ves to be n�ade� a�,�ailable t�o the rec�-t�ite� busin�sses, ixicludind incentives re.lat�;d ta thc utlique ei�er�y comn�odities of t11� District; a�ld a�ray ofiher irac�i�lti��es wluch, in tl�� opir�ioz� �f �tl1e Ecol�c�mic �D�velopment Director �nd the E;cc�t��at��7ic I7evelopa��xe�t Fartr�ershi� Boa.rd, wil�l assi,lre the timely developmei�t of �his ui�ic�ue area and �which �,��i�ll i�aa�.zrr�ize the Ci�y of Dei�ton's opportualities within the L7istrict in �recogtirtion oi tl�l� l�mi�ed s�iae of i�ts fooipi°i7at. T}lese Guidelines ��or Iaicent�ives sha�ll be pr�sented to tlxe �"it}� C'arriacil �'or ap�roval in a timely maz�n�;r,� �ut no later tlzan July 1, 20I2. I�Iothin�; l�ereiia s1�a11 �be i��telpreted to otl�erw,ise lirnit develop.t�7e�nt ���ithin the district. SECTIO�N S, Tht� District S1�a11 be created'��iirll��ec�iatel�j� upun �assage ar t�ils orainance. S�;CTI�Jl'� �. If� a.i�y section, p�.ragrapl7, cla�use or provision af this Ordina��ce shall for ariy ,re�sotl �b� k1�ld to �C��. ii�valid c�r �ia�enforc�abl�, tl�e invalidity or L�nenforceability o�f stiac�h ,sec�tioa�, �ara�a�h, cla�ase oi° provision shall not a�Fcet any �f the remaining provisions o�f this �I"(�'1T1�i1C�, SEC'TIOl'�� i. T1�is Qrdinal�ce shall becorrle effective a1�7i�7ediat��ly upoi� iis passage �n.�i a��7r�ava.1. _.__. i?����;e 2� s:AIcgal\our docwneuts\ordin�nces\12.�:chp-cdd in airl�ort ind �rca.docx ��ssLr� �N� APi��zo�T�.� ����5 tl�� �I ��' ��y oi�_ ��LT a�:�-t , ?or?. MIaRK �,, I�LII�RQUG�IS, MA1'OR .�TTES�': JENI�IFER ��dP�S,TERS, CI�I'�' �ECRI;1�'I�.RY C� API'iZOVED AS TQ JL�;GA.L FOR.M: ,^�l�iT�1 BL1�(.�ESS, CI7�5' �TTUI�lEY ( a �� B Y; . �,� -� t.�--�s, � � � _ Fa�e .� X H I I T!l�l� � r' . . r'• - • � M^ � • . � _ ,. � All ihose certairr lots, tr�cts or parcels of land lying and beir�g situated in the City and County of Denton, Sta�e of Texas, and being situated in all or porkions of the fallowing abstract survey tracts: S. Huizar Survey, Abstract No. 514, l`a Eagan Survey, Abstract No. 406, IVIEP � pRR Co. Survey, Abstract No. 1470, W. Bryan Survey, �bstract iVa. 1�8, E. Orr Survey, Abstract iVo. 983, BBB & CRR Co. Survey, Abstract No. �.52, G. Barb Survey, Abstract Na. 208, T& P RR Survey, A�stract No. 1302, A. Myers Survey, P,bstract No. 1699, A. Miller Survey, Abstract No. 887, G. Meyers Survey, Abstract No. 843, J. Perry Survey, Abstract fVa. 1040, E. f�uchalski Survey, Abstract No. 996, J. Scott Surv�y, Abstract No. 1222, J. Bacon Survey, Abstract No. 1541D W. Wilburn Suruey, Abstract No. 1419, M. Davis Survey, Abstract No. 377, E. Egan Sunrey, Absiract No. 412, I. IV1cCorrnick Survey, Abstract IVn. 955, E.E. Mays Survey, Abstract No. &44, T. T�by Survey, Abstract Noe 1�85, J. Davis Survey, Abstract No. .326, J. Wright Survey, Abstract No. 1365, D. C�avis S�arvey, Abstract No. 356, S. Wright Survey, Abstract No. 1366, W. Neil) Survey, Abstract No. 970, W. Smith Survey, Abstract fVo. 1188, C. Chawning Survey, Abstract No. 266, 0. Brewsfier Survey, Abstract �Jo. 56, A. R�adden Survey, P,bstract Na. 851, J. A. Burn Survey, Abstract No. 132, T. Carruth Survey, Abstract iVa. 1707, T& P RR Survey, Abstract No. 129Z, 1. Hardin Survey, Abstract Na. 1656, D. Daugherty Survey, Abstract No� 357, 1. McDonald Survey, Ai�stract No. 873, J. Bacon Survey, Abstract No. 1541�, .J. C�altr�n S�arvey, Abstract No. 353, I. HembriP Survey, Abstract No. 594, J. Kjeliberg Survey, �bstraet Na. 161.0, Wrr�, Sajvis Survey, Abstract No. 1174, S. Pritchett Survey, Abstract Na. 1004, C. �yerly Survey, Abstract Nn. 145�, B,B.B. & C.R.R, Ca. Survey, Abstract Na. 176, G. West Survey, Abstract No, 1393, S. PritchPtt Survey, Abstrac� No. 1021 anc� the M. Raine Surv�y; P,bstract No. 1036; and being mare particularly descril�ed as follows: EiE�N�1R911V� at the southvuest earner of the intersectian of Interstate Highway 35 and U.S. Highway 380 and being the most westerly rarner c�f Lot 1, Block 1, ofi the QT 912 Addition, being recorded under County Cl�r{<'s Fil� i�ocurner�t i�o: 2011-31, P�at Rec�rds, Dentorr CaUrr1Y, Texas, ihence South 4S Degrees �7 Minutes 56 Seeonds East, along the west line of Interstate Nighway 35 a distance of 156.54 feet ta a point for a corner; Ther7ce with the west lines of Interstate Highway 35 the following forty six bearings and distances: 1. South 42 Degrees 26 Minutes 11 Seconds East, a, distance of 366.56 feet; 2. South 25 Degrees 29 Minutes West, a distance of 608.3 Feef; 3. South 16 a�grees a1 i�inutes East, a distance'of 2;825.6fe�t; 4. South 40 Degrees 12 Minutes 46 Seconds West, a distance of 38.52 feet; 5. Sauth 53 Degrees �3 Minutes 40 Secands East, a distance of 52.43 fieet; 6. South 16 Degrees 0�. IVlinutes East, a distance of 918 feet; 7. Curve to I_eft with an Arc Length of 1,670 feet with a chard h�earing South 26 Degrees 00 Minutes 01 Seconds East, a distance af 1,661.25 feet; 8. South 32 [�e�rees 3f IlQinu.tes 00 Seconds East,,a,clistance c�f �9Z,�,4fPet.; 9, 5outh 29 Degrees 4� �,/linuies 04 Seconds West, a distance af 46.48 feet; 10, 5outheasterly crossing Prairie Street a distance of 87J2 fieet; 11. Snuth �% Degrees 59 Minutes 35 Seconds West, a distance af 30.0 feet; Page 1 �f 5 EXHI IT "A" 12. South 03 Degrees 45 Minutes 16 Seconds East, a distance of 644.27 feet; 13. Sauth 16 Degrees 10 Minutes 29 Seconds East, a distance of 1,015:58 feet; 1.4e Sauth 04 Ge�rees 41 Minutes 19 Secnnds West, a distance of 380.05 feet; 1S. SoutF7 65 �7egrees 0% Nlinutes 33 Seconds West, a distance of 1,004.16 feet; 1.5. Sc�u,th 88 Degrees 28 Minutes 4� Seconds East, a distance of 593.29 feet; 17, East a distance 235 feet; 18. S�uth crossing FM 1515, a distance of 90 feet; 19. South �0 Degrees �4 Minutes 12 Secands East, a distance of 75.81 Feet; 2.(�. Soiath 19 Degrees 03 fvlinutes 27 Seconds East, a distance of 310 feet; 7_1., Sauth 01 Degrees 41 Minutes 33 Seconds West, a distance of 201 feet; 22a Sauth 16 DegrPes 16 �/lin�ites 33 Secr�nds West, a distance of 1,2.55.7i feet; 23. South 2.0 Degrees SO IV1inu�es 12 Seconds West, a distance of 2,660.40 feet; 24. �auth �9 Degrees 23 Minutes 20 Seconds West, a distanee of 107.I5 feet; 25. 5oG�th 00 De�rees 36 Minutes 40 Seconras East, a distance of 178.14 feet; 2.6. North 89 Degrees 23 Minutes 2d Seconds East, a distance of 7� feet; 27e 5n�,ith 2.3 Degrees 42 R/linutes 32 Secc�nds West, a distance of 199.58 Feet; 28. Curve ta the Right with �n arc Length of 585.62 and a chord bearing of South 23 Degrees 50 Miniates 56 Seconds West, a distance of 5�5.35 feet; 29. Sauth 26 Degrees 51 Minutes 40 Seconds West, a dist�nce of 35�.22 feet; 3(7. Sc7uth :�1. �1e�rees 09 Minutes OQ Seconds West, a distance of 20Q.56 feet; 31. Sr�utl7 2� C�pgrees 51 Minu[es 4f� Seconc�s West, a distance of 602.2� feet; 32. Soi_a�h 85 Degrees 5f� Minutes 2C) Seconds West, a distance r�f 30% °feet; 33. Sc�utPi 57 Degrees 32 Minutes 515econds West, a distance of 62 feet; "s4. Sc�uth, 0(? De�re�s SS CViinutes 00 Secnnds East a distance of 32 feety , - 35. Snuth 33 Degrees 20 Minutes 32 Secands East, a distance nf 318.16 feet; 36. South 26 Degrees 51. Minutes 40 Seconds West, a distance of 4,9Q0 feet; 37. Soutrs .36 C7egrees 47 Minutes 14 Seconds West, a distance af 406.08 feet; 38, Soiath 26 L�egrees S1 Minutes 40 Secands VWest, a distanee af 426 fee�; 39. �lorth 6� Degrees �8 Minutes �� Seconels West, a distane� af-�9() f���; 40. South �5 Degrees Sl Minutes 40 Secc�nds West, a distance of 1U0 feet; 41. Sc�uth 39 Degrees 17 fVlinutes 18 Seconds East, a distance of 207.74 feei; 42. Sa�ith CJ5 L7egrees 19 Minutes 14 Seconds West, a distance af 204.27 feet; 43. South 26 Degrees 51 Minu tes 40 Seconds West, a distance of 400 feet; 44. Snuth 28 C7egrees 32 Minutes 48 Seconds East, a distance of 352.28 feet; 45o South :26 [�egrees 51 Minutes 40 Seconds West, a distance of 855.43 feet; 46. South 26 Degrees S1 Minutes 40 Seconds West, a distance of 1,031.33 feet; Thence Sauta7 26 begrees .5.1 fVlinutes 40 Secands W�si, alor�� the west line c��f said In��rs�afe Highway 35 a ciistance of 1,031.33 feet ta a point for a corner on the west line of said Interstate Highway 35 and said pc�int also being th� beginning of a curve ta �he right having a radius of �.5,840 feet; Thence with saicl curv� to the right an arc distance of 17,933.63 feet, said curve has a chord bearing and distance of �lorth 51 Degrees 21 Nlinutes 35 Seconds West, 16,991.05 feet to a point for a corner and said pc�int lying nn the existing Denton city limits established by Ordinance �006-205; Page 2 of 5 �x r �i�r �,�„ Thence Narth 00 Degrees 32 Minutes 15 Seconds East, alor7g said city (imits line a distance of 1,941.14 feet to a point for� a c'orner, said poinf lying on the intersectii�g centerlines of Torn Cole Road and C. Wolf Roado Thence North acrass Tr�m Ced� Raad a distance of 25 feet to a point for a corne-r, said point lying on the north right-of-way line oiTam Cole Road; Thence West alang the north right-of=way line of Tom Cole Road a distance of 50�.00 feet to � poii�t for a carner, said point b�ing th� intersection of the east right-of-way line of C. Wolf Rnad and the North right-of-v��ay line c�fi 7orn Col� Ftaadr Thence in a fVar�ih�rly direction, alarig caurse and distances of the implied east right-of-way line of C. Wolf Rnad � clistanc� af 4,34C7e63 feet to a pnint for a corner and said point also being the beginning of a curve tc� the right having � radius of 15,�40 feet; Thence with said curve ta th� right �n arc distance of 7,744.15 feet, said curve having a chard bearing and distance of North 18 degrees U4 minutes 28 seconds East, 7,666.93 feet, to � poini for a corner on the south ri�ht-ofi-way line of U,5. I-lighway 380; l herice with �nd along the s�l'th right-ofi-way line af U.S. Highway 380 th� fiollowing sixty one bearings and distances: �. South 84 Ciegrees 15 Minutes 31 Seconds East, a distance of 585.53 feet; 2. �outh $7 Degrees 5S Minutes 32 5econds Easfi, a distance af 751.92 feet; �. South 78 C7egr�es �i �lini.�t�s 45-Seconds East, � distance of 152.0,7 fieet; 4. South 87 Degrees 55 Minutes 32 Secands East, v distance of 251.10 feet; 5. Sc�ukh $7 Degrees �5 fViinu1es 32 Secands East, a distance of 348.9� feet; 6. Nor�th 78 Degrees �]2 Minutes 1J Seconds East, � distance of 103.08 feet; i. South 87 �egre�s 55 Minut�s 3� Seconcis East, a distance of 22Q.22 feet; 8. Snuth �i Degrees 55 Minutes 3� Seeonds East, a distance of 79.%8 feet; 9. South i2 Degrees 4fJ Minutes 15 Secr�nds East, a distance of 106.26 feet; 10. South 72 Degr�es 40 IVlinutes 15 Seconds East, a distanee of 121.77 feet; 11. South 8i Degrees 55 Minutes 32. Seconds East, a distance of 150.40 feet; 12. 5c�uth 8i Degrees 55 I�inutes 32 Seconds East, a distance of 279.60 feet; 13. North 75 Degrees �2 Min�ates 28 Secands East, a distance of 52.20 feet; 1.4. South 87 �Jegrees 5S Minutes 31 Secands East, a distarice of 605.27 feet; 15o North 85 L egrees �9 fVlinutes 2� Seconds East, a distance. �f 150.�6 faet; i6. Noi�th 85 Degrees 39 Minutes 21 Seconds East, a distance of 45.10 feet; 17. Souih 8i Degrees 5S Minutes 31 Seconds East, a distance of 148 feet; 1.8. North 79 Degrees 19 Minutes 02 Seconds East, � distance of 104.58 fieet; 19. Soutr�i 87 Degrees S5 Minutes 32 Seconds East, a distance of 150 feet; �0. Sc�uth 79 Degrees 2.3 Minutes 41 Seconds East, a distance of 101.12 feet; 21. Sauth 87 �egrees 5S Minutes 32 Seconds East, a distance of200 feet; 22. fVorth 83 C7egrees 3L Minutes 38 Seconds East, a distance of 101.12 feet; 23. Sc��.eth 87 Degrees 55 f�inutes 32 Seconds East, a distance of 807.82 24. 5outh $7 C�egrees 55 Minufes 32 Secands East, a distance of 51.13 feet; Page 3 of 5 � 2S. South 87 Degrees 5S Minutes 32 Secands East, a distance of 60.13 feet; 25, Sauth 87 Degrees 55 Minutes 32 Seconds East, a distance of 332.81 feet; 27o Sauth $0 Degrees 10 Minutes 46 Seconds East, a distance of 250.40 feet; 78. South 8i Degrees 55 Minutes 46 Secnnds East, a distance of 1,201.54 feet; 29, South 87 Degrees S5 Minutes 46 Secands East, a distar7ce of 50.36 ieet; 30, North 78 De�rees 45 Minutes 36 Seconds East, a distance of 102.76 feet; 31. :Sauth 87 Degi�ees SS Minutes 31 Seconds East, a distance of 259.46 feet; 32o Snuth 4Z C�egrees 48 Minutes 43 Seconds East, a disfance ofi 84.30 feet to the point of intersectian c�f the west right-of-w�y line of Masch Branch Road and the sauth right-of-way line of U.S. Highway 3€30; 33. East, acrass Masch Branch Road a distance of 60 feet; 34. North 4C Degrees 30 Minutes 19 Seconds East a distance of 79.82 feet; 3S. South �7 Degrees 55 fVlinuies 32 Seconds East, a distance of 618.58 feet; 36, Nc�rth 89 Degrees 12 Minutes 37 Seconds East, a distance of 83.99 feet; 37. South �7 �iegrPes S5 Minutes 32.Seconds East, a distance of 302.71 feet; 38. Sr�uth 87 Degrees S5 (�inutes 32 Seconds East, a distance of 132.1� feet; 39. South 87 Degrees SS f�inutes 32 Seconds East, a distance of 183.59 feet; 40. South 76 Degrees .3Ei Minutes 58 Seconds East, a distance of 101.99 feet; 41, South Si Degrees 55 Minutes 32 Secands East, a distance of 588.59 feet; 42. Souih 87 DPgrees 55 Minutes 32 Secancis East, � distance nf 176.5� feet; 43. SUUth 87 Degrees 55 Minutes 32 Secands Fast, a distance af 284.87 Feet; 44. Scauth 85 Degrees 03 Minutes 46 S�eonds East, a distance of 100.13 feet; 45, Souih 8i Gegrees 55 Minutes 32 Secr�nds East, a distance of 107.84 feet; �6. South 44 �egre�s 07 fViinutes 45 .Seconds East, a distance of 12.40 feet to the point of , intersectic�n of the west right-of-way line of Western Boulevard and the south right-of-way line of U.S, Highway 38G; 4%. Eas�, across VVestern Baulevard � clistance of 135 feef ; 48. Narth 45 C�egrees S2 Minutes 15 5er.onds East, a distanee of 11.88 feet; 49. Soulh 8i �egrees SS Minutes 32 Sec.onr�s East, a distance of 800.58 feet;. 50. Sauth 87 U�grees 55 Minutes 32 Seconds East, a distance af 245.39 feet; 51. Sauth 87 Degrees 5S Minutes 32 Seconds East, a distance of 743.91 fieet; 52, South 76 Jegrees 36 Minutes 57 Secands East, a distance of 50.99 feet; 53. South 8i �egrPes 55 I�inutes 32 Seconds East, a distance of 337.93 feet; 54. North i3 Degrees 7_4. Minute.s 04 Seconds East, a r�istance of 67.24 feet; 55. Sau�h �9 L egrees 03 Minuies 14 Seconds East, a distance of 100 feet; S6, Sauth 72 Degrees 21 Minutes 14 Seeands East, a distance of 104.40 feet; Si. South �9 I�egrees 03 Minutes 14 Seconds East, a distance of 116.36 feet; 58. South S9 Degrees 03 fvlinufes '14 Seconds East; a distanc� af 133.64 feet➢� 59. fVorth 82 [7egrees 24 fVlinutes S5 Seconds East, a distance ofi 202.24 feet; 6G. Sauth 89 De�rees 03 Minutes 17 Seconds East, a distance of 80 feet; 61. South 62 Degrees 29 (vlinutes 18 Secands East, a distance of 97.13 feet; Thence South 89 C�egrees 03 Minutes 14 Seconds East, continuing along the south right-of-way line of U.S. Highway 380 a ciistar�ce of 140 feet to a point for a corner �.nd L�eing the north��uest coener of said Loi: 1, Black 1 QT 912 Ac�r.Sition; Page 4 of 5 �, Therrce North 64 Degrees 5� Minutes 3S Seconds East, alang the South line of U.S. Higf�way 380 and IVarth line af said �.ot 1, Blacl< 1 CZT' Addition a distance ofi 88.28 feet ta a point far a corner; Thence South 88 Degrees 04 I�inutes 1S Seconc�s Fast, along the South line of U.S. Highway 380 and fVorth line of said L�� 1, Block :l QT Addition a dist�nce of 142.63 feet to a poii�t �or a corner; Thence South 71 Degrees 41 Mir7utes 15 Secands East, along the South line of U.S. Nighway 3�0 and North line of said Lot 1, Blocl< 1 C�T A�clition a distance of 163.31 teet to a point for a corner; Thence South 45 Degrees 25 Minukes 20 Secands E�sk, along the South line of U.S. Highway 380 and IVort� line af said Lot 1, Block 1 QT Additic�n a distance of 1�8.34 feet to the PC�INT OF BEGIIVIVIIVG and containing in all approximately 8,533 acres nf land, more or less. S�VE AIVC� EXCEPl" from the above described 8,533 acre tract all those tracts �hat were specifically Saved �i7d Excepted frnm City ot L�enton �nnexatian ordinances 2010-117, 2010-121, 2010-122 and 2010-123, th�se Save �nd Except tracts described therein being subject to cei�tain non-annexation agreements and are not pres�ntly situated within the municipal boundaries of the City of Denton, Texas. Page 5 of 5 FX �-[ I,F� I.T. � � � `" Cor��ined Heating and Power Econamic Developmer�t District �� �- Cambined Heating and Power Pl�nt Location s:Alebal\our clocuments\ordinances\13\2013 election ordinance for gas utilit}�.doc �. "� L �� � / � ' �' AN i�RDINANC� ORDERING AN ELECTION TO }3� HELD (�N� MAY 11, 2013 I'OR T�IE PUIZPOSE OF SUBMITTING� "T'O TH� R�CIST�RED VOTEFLS OF DENTC)N�, TEXAS A PR(7POSII'ION ALLC)�JING TH� CITY� O� DENTON �I'C) O�N, ACQUIRE, CONSTRUCT, MAINTAIN, AND OP�RAT� A C'r�S UTILITY IN THAT AREA NEAR THE AIRPORT INDUSTRIAL PARK ANI7 MORE SP�CIF'ICALLY DESCRIBED IN EXHIBITS "A" AND `�F3" ATTAC�HED HERETO A�D TNCORP0I��TED �IEI�EIN; PRESCIZIBING THE TIME AND MANNER OL' THE CONDUCT OF THE ELECTION TO BE IN ACCORDANCE WITH AN AGI2EEMENT WITH D�NTON COUNTY; f�RESCRIBING THE FORM OI' THE �ALLC�T; PROVIDING FOR N�OTIC�; PROVIDING FOR 1'UBLIC'ATION OF N�OTICE OF TI-IIS ELECTION; I'RC�VIDING � SEVERABILITY CLAUSE; PROVIDING AN OPEN IVI�ETIN�GS CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WIIEREAS, the L7ento1�7 Giiy Chalter, Scction 12.01 piov�des tl�at the City of Denton inay own, acquire, coi7struct, lnaint�in, and ope�iate a ptlblic u�tility which was not owi�ed and o�erated by the City on the effective date of the adoption of the City's Hoine Rule Charter, Febru�ry 24, 1959, upon tlie appi�ov�l of � m�jority of the c�ualifed votel°s of the City; and WT-IEI�EAS, the City of DeYiton did not own and opei-ate a g�as utility on the referenced date; a1�cl WH�FZ�AS, in the 82n`� I�e�islative Session, the Texas Legislature enacted Local Gov't Code, Section 552.913 in suppori the City of Denton's efforts to imple�ncnt a Coinbined He�t and Pow�r �conomic I�evelopment District (CHP-�DD) ii1 an �rea near the Airport Industrial Parlc, wllich legislation allows tl�e City of Denton to own �nd operate a gas ufility for certain purposes a1�d in a linlited area of the City; �nd WHEREAS, the City Council enacted Ordii�ance No. 2012-044 on February 21, 2012, thereby creating a C�IP-EDD, under the teri7ls of Local Gov't Code, Sectiotl 552.913, al7d designating and desci-ibing tlle boundaries of the D�istrict; and WHEREAS, the City Council has determined it is in the b�st interests of the City of Deiltoii to call an election to allaw the voters to detei°mine whethei tl�ey clesire that� the City own and o�el�ate a�as utility in the CHP-EDD District, whicli location is more p�rtictil�rly described in Exl�ibits "A" and "L�", aitached hereto �nd incorl�orated herein; and WIIEREAS, the City Coui�cil finds that Che pr�posed electic�n is in the pul�lic interest and that the ballot proposition does not cont�in more than ��ne subject; NOW, THER�I'ORE, TH� CC�UN�CIL OF THE �ITY OF I�ENTON H�R��Y ORDAINS: s:Alegal\our dqcuments\ordinancesU3\20I3 election ordinance for gas utility.doc SECTION 1. The preamble to t17is Oi-dinance is incorporated by referellce and �do�ted as though set foz�th in iull �in the body of this Ordinance. � SECTION 2. In accord�nce with the provisions of the I7enton �ity �hal�ter, Section 12.01, there shall l�e subnlitted to the voters of the �ity of Dei�toiz, Texas, a� an election to be held on May 11, 2013, the following proposition: '•'i f SHALL T�IE CITY O� D�I�ITON BE ALLOWED TO OWN, ACQUIRE, CONSTRUCT, MAINTAIN, AND OP��RAT� A GAS UT�ILITY IN ORDER TO FROVIDE GAS LITILI�I,Y SERVICES TO NON-RESII�ENTIAL CUSTOMERS IN THAT AREA OF THE CITY NEAR THE AIRPORT TND�USTRIAL, PARK AND BOUNDED �Y YES �(j SECTION 3. The election �nd early vo�ting sha11 be conducted with the general electiall being held on May 1 l, 2013 anc� at the time and in the inanner specified in an a�reemellt between Dentoi� County and the City of Denton regarding election proc�sses and practices. SECTI(7N 4. The election shall �be held tznder the autllority of tl�e Charter of the City of Deiiton, the Constitution and the laws of the State of Texas, and the Voting Rights Act of ] 965, as �mended, iilsc�far as they may be applicable. SECTION 5. This Ot-dinance shall constitute the c�rder and i�nay sei°ve as notice c�f t11e election and shall be published and noticed in accordaizce with all applicable laws. �ECTION 6. The eaption of this Ordinallce shall be p�iblished in a newspaper of gen�ral circulatioiz in tl�e City of Dei�toll, in coi�npliance with the provisions of law. �ui-ther, this Clrclinance may be published in palnphlet for�m and shall be admissible ii� sueh form in any coui-�, as p1°ovided by law. SECTION 7. If any section, subsection, paragraph, sentence, clause, phrase, oi• word in this Ordinance, 07° application tlzereof to aily person or cireumstance, is held io be unconstitutional, such holding shall not affect the validity of the remaiizing portiarzs of this Orditiance and the City Council of tl�e City of De�7tot� hereby declares that they would have enactecl such remainiilg portions despite any such invalidily. SECTI�N 8. The City Council has foLU1d and deiermined that the meetil�g at whicl7 t17is Ordinlnee is consi�ered is open to the public and that notice thereof was given ii1 accorciancc with the pi�ovisioi�s of tl�e Texas Open Meetings law, Tex. Gov't Code, ch. 551, as amended, �zd that a c�iic�rum of tl�e City Council was pz�esent. s:Ue�al\our doeuments\urclinances\13\2013 election ordinance for �as utility.doc SE�TION 9. This Oi-dinance shall beconle effective inlmecliately upon its p�ssage and approval. PASS�D AN.D APPIZ.OVEIJ this the day of , 2013. •� ; � . • ATTE�T: JENNIFER WALTERS, CII'Y SEC�ETARY � . � � . �, . . . ; . �. I: �; � r r� . r'• • w- - �� i .� All those certain lots, tra�ts or parcels of land lying �nd bein� situated in th� City and County of Dentan, State of Texas, and bPing situated in all or portians of the foliawing abs�ract survey tracts: S. Huizar Survey, Abs�ract No. 514, T. Eagan Survey, Abstract No. 406, MEP & PRR Co. Survey, Abstract No. 1470, W. Bryan Survey, Abstract No. 148, E. Orr 5urvey, Absiract No. 983, BBB � CRR Co. Survey, Abstract No. :C92, G, Barb Survey, Abstract �Vo. 208, T& P RR Survey, Abstract IVo. 1302, A. fViyers Survey, Abstract No. 1E99, A. Miller Survey, Abstract No. 88i, G. Meyers 5urvey, Abstract No. 843, J. Perry Survey, Abstraet iVo, 1.040, E. Puchalski Survey, Abstrac� IVa. 996, J. Scott Survey, Abstract No. 1222, J. Bacon 5urvey, Abstract No. 1541, W. Wilbum Survey, Abstract N�. 1419, M. Davis Survey, P,bstrac� Na 377, E. Egan Suruey, ,4bsiract No. 412, I. McCarmic4< Survey, Abstract No. 955, E.E. Mays Survey, Abstract No. 844o T. Toby S�irvey, Abstract No, �285, J. (�avis Survey, Abstract No. 326, J. Wright Survey, Abstract IVo. 1365, D. C�avis Survey, Abstract No. 355, S. Wri�ht Survey, Abstract Na. 1366, W. Neil) Survey, A6stract Na. 970, W. Smith Survey, Abstraet No. 1188, C. Chowning Survey, �,bstract No. 266, 0. �rewster Survey, Ak�stracY. No. S6, A. iVladden Survey, Abstract No. 851, J. A. Burn Survey, Abstract Na. :132, T. Carruth 5urvey, Abstract fVo. �.7CJ7, T' � P f�R Survey, Absiract No. 1292, J. Hardin Survey, Abstract Na. 1656, D. Dougherty Survey, ,4bstract No. 357, J. McL7onald Survey, Abstract fVo. 873, J. Bacon Survey, �bstract No. �54(7, J. C�alton Survey, Abstract No. 353, I, Nembrie Survey, Abstraet Na. 594, .I. Kjeliberg Survey, Ak�stracs: No. 1610, Wm. Sajvis Survey, Abstract No. �174, S. Pritchett Su�°vey, Abstract No. 10G4, C. Byerly 5urvey, Abstract �Va. 1458, B.B.B. & C.R.Re Co, Survey, Abstract No. 176, U. West Survey, Abstract !Va; 1393, S. Pritchett Survey, Abstract No. 1021 and the M. Paine Survey; Abstract No. 1036; and being mrare particularly describec� as follows: �E�II�t�ING at the southwest cnrner af the intersection of Interstate Highway 35 and U.S. Highway 380 and bein� the most wesierly cnrnea° of Lot 1., Blac!< 1, of the QT 912 Additiori, being recorded under �aur�ty Clerk's File docurr7er�t No. �011-31, Plat Records, Denfon Caunty, Texas; Thenc� Sauth 45 Degrees 4% Minu�:es 56 Seconds East, along the west line of Interstate Highway 35 a distance of 156.54 feet to a�oint far a corner; Thence wifih the west lines c�f Interstate Hi�hway 35 the follawing forty six bearings and distances: 1, South �2 Degrees 2� Minutes 11 Seccands East, a, distance of 366.66 feet; 2. Sauth 2S Degrees 29 Minutes West, a distance af 60�.3 feet; 3. South 16 De�rees 01 Min���es East, � distance of 2,825.6 feet; 4. Sr�uth 40 Degrees 12 Minuies 46 S�conds West, a distance af 38.52 feet; 5. South 53 L�egrees 43 fViinutes 40 Secorrds East, a distance of 52.43 feet; 6e So��th 1.6 Degrees 01 Minutes East, a distance of 918 feet; 7. C��rve ta Left with an Arc Length of 1,67C7 feet with a chard bearing South 26 Degrees 00 IVlinutes 01 Secnnds East, a distance o� 1,661.25 feet; 8. South 32 Degrees 36 Minutes 00 Seconds East, a distance of 597.14 feet; 9, South ?_9 Degrees 4Z Minutes 04 Seconds West, a distance of 46.48 fe�t; 1Q. Southeasferly crossing Prairie Sfreet a distance of 8i.72 feet; ll� South 87 Degrees 59 Minutes 36 5ecands West, a distance of 30.0 feet; Page 1 of 5 �x� i i� ,���, 12. South 03 Degrees 45 Minutes 16 Seconds East, a distance ofi 644.27 feet; 13, Sauth 16 Degrees 1d Minutes 2.9 Seconds E�st, a dis�ance of 1,015:58 feet; 14. South 04 Degrees 41. Minutes 1J Seconds West, a distance of 38Q.05 feet; 15. South 68 Degrees 07 IVlinutes 33 Seconds West, a distance of 1,004.16 feet; 16. South 88 DEgre�s 28 Minutes 4�3 Seconds East, a distance of 593.29 feet; 17. East a distancE 235 feet; 18. South crossing FI� 1515, a distance of 90 feet; 19. South 60 Degr�es �14 Minutes 12 �ecnnds East, a distance of 75.81 feet; 20. South 19 Degr�es �7.3 Minutes 27 Secor�ds East, a distance of 310 feet; 21. So�i�h 01 Clegrees 41 Minutes 33 Seconds WesC, a distance of 207 feet; Z2e South 16 Degrees 16 fVlinutes 33 Seconds West, a distance of 1,255.77 feef; 23. South 20 Degrees 5(� Minuies 12 Seconds West, a distarice of 2,560.40 feet; 24. South 89 17e�rees 2� Minutes 20 Seconds West, a distance of 107.75 feet; 25o South 0� Degrees 36 Minu�es 40 Secands East, a distance of 178.14 feet; 26. Ncrrth 89 Degrees �3 Minutes 20 Seconds East, a c�istance of 70 feet; 27. South 23 C�egrees 47 Minutes 32 Seconds West, a distance af 199.5'8 feet; 28o Curve to the Right with an arc Length of 585.62 and a chord bearing af South 23 Degrees 50 Minutes S6 Seeonds West, a distance of 585.35 feet; �9, South 26 DegrePS S1 Minutes 40 Seeonds Wesfi, a distance oF 358.22 feet; 3�. S�uth 31 Degree.s 0� Minut�s 00 ,Secand.s West, a distance of 200.56 feet; 31. Sauth 2.6 I�egrees 51 IVlinutes 40 Secands West, a disfance of 602.20 feet; d3"l.. South 85 Degrees 58 Minuies 20 Seconds West, a distance af 30i feet; 33. S�uth Si Degrees 32 Minutes 51 Secr�nds West, a distance of 62 feet; 34o South 00 l7egrees 5S iV�ir7utes UO Secar�cls Easi a distance of �2 feet; , 35� Sauth 33 uegrees 20 iVlinutes 32 Seconds East, a distance of 318.16 feet; 36. South 26 �e�re�s .51 Minutes 40 Seconds West, a dist�nce of 4,900feet; 37o Snuth 36 Degrees 47 IVlinutes 14 Seconc�s West, a distance of 406.08 feet; 38. Snuth 26 l7�grees S1. Minutes �0 Seconds West, a distance of 426 feet; 3J. Nc�rth 63 Degrees C�8 fVlinutes 2U Seconds West, a di.stance caf �9Q fee�; �d0. South 26 Degrees S1. Minutes 40 Seconds West, e distance of 100 fe�t; 410 Sauth 39 Degrees 17 Minutes 18 Seconds East, a distance of 207.74 feet; 42. SQUth OS Degre�s 19 iViinutes 14 Seconds West, a distance of 204.2i feet; 43. South 25 [7egrees S i. Minutes 4f7 Seconds West, a distance of 400 feet; 44. South 28 Degrees 32 Minutes 48 Seconds East, a distance of 352.28 Eeet; 45. Sc�uth Z6 Degrees 5�. IVlinutes 40 5econds West, a distance of 855.43 feet; 45. South 26 C7egrees 51 Minutes 40 Seconds West, a distance of 1,�31.33 feet; Thence South 26 aegrees S1 Mir�utes 40 Seconds Wes�, along the w��t lii7� of said lnterstate Highway 35 a dis�ance of 1,031.33 feet ia a point far a corner on ihe west line of said Interstate Highway 35 and said point aiso being the beginning of a curve to the right having a radius of 15,�40 feet; Thence with said curve to the right an arr. distance of 17,933.63 feet, said curve has a chord bearing and distance of Nortn 51 Uegrees 21 �Vlinutes 36 Seconds West, 16,991.05 fieet ta a point for a corner and said point lying on the existing Denton city limits established by C7rdinance 2CJCJ6-2U5; Page 2 af 5 E� I �T lA��� Thence North 00 Degrees 32 MinuYes 15 Seconds East, along saicl city limits line a distance of 1,941.14 feet ta a paint for a corner, said point lying on the intersecting centerlines of Tom Cole Road and C. Walf Road; Thence fVorth acrass Tam Cale Raad a distance of 25 feet to a point for a corner, said point lying on the nortF� right-of-way line of Tom Cole Road; Thence West alang ihe narth right-of�way line of Torn Cole Ro�d a distance of 500.00 feet to a point for a cc�r�rer-r said point k�ein� the iniersection of the east right-of-way line of C. Wolf Road and the North ri�ht-of-way line afiTom Cole Road; The�ce in a f�artherly direction, alang course and distances af the implied east right-of-way line af C, Wolf Road a distance of 4,340.63 feet tn a point for a corner and said point also being the beginning of a curve to the right hauing a radius af 15,84Q feet; ihence with said curve ta ihe right an arc distance of 7,744.15 feet, saicl curve having a chord bearing and distance of Narth 18 degrees 04 minutes 28 seconds East, 7,666.93 feet, to a point for a corner on the south right-of-way line af U.S. Highway 380; Thence with ar�d along the sauth right-af-way line of U.S. Highway 380 the following sixty one bearings ar�d distances, 1. South �4 Degrees 15 iVlinutps 31 Seconds East, a distance of 585.53 feet; 2.a SoutNr 8% Degrees 55 Minutes 32 Seconds East, a disfance of 751.92 feet; 3. So�th 78 CJegrees 2i Miri�,iiPS 4S Secands East, a distance nf 1.52.Qi feet; 4. 5auth 87 Degrees 55 IViinutes 3� Secands East, a distance af 251.:10 feet; 5. 5c�uth 87 Degrees SS Nlinutes 32 Seconds East, a distance of 34�.90 feet; C. �lorth 78 C�egr�es OL Minutes 17 Seconds East, a distance of 103.08 feet; %. Sauth 8'7 Degrees 55 Nlinutes 32 Secands East, a distance nf 22Q.22 feet; $. Soi�th 87 Degrees S5 Minutes 32 Seconds East, a distance of 79.78 feet; 9. South 72 Degrees 40 Minutes 15 Seconds East, a distance of 106.26 feet; 10. Sauth 72 De�rees 4Q Minutes 1S Seconds East, a distance of 121.77 feet; 11. Sauth 87 Degrees 55 Minutes 32 Seconds East, a distance of 150.40 feet; 12. Sauth 87 Degrees 5S Min��tes 3Z Seconds East, a distance of 279.6Q feet; 13. f�orth 7S C�egrees 22 Minutes 28 Seconds East, a distance of 52.20 feet; 14. South 87 Degrees 5S Minutes 31. Seconds East, a distance af 605.2i feet; 15. �lorth 8S Degrees 39 Minutes 21 Seconds East, a distance af.1SG.86 feet; 1f. North 85 Degrees 39 Minutes 2.1 Seconds East, a distance of 4S.1Q feet; 17. Sauth $7 �egrees 55 Minutes 315econds East, a distance af 148 fe�t� 18. fVorth 79 Degrees 19 Minutes 02 Seennds East, a distance of 104.58 feet; 19. South 87 Degrees 55 Minutes 32 Seconds East, a distance of 150 feet; �0. Sauth 79 L7egrees ?_3 IVlinutes 415econds East, a distance af 101.12 feet; �l. Sauth $7 Degrees S5 IVlinutes 32. Seconds East, a distance of 200 feet; 22. Nc�rth 83 Degrees 32 Minutes 38 Secands East, a distance ofi 101.12 feet; 23. Sor.ath 87 L�e�rees 55 Minutes 32 Secands East, a distance of 807.82 24. South 87 Degrees 55 fVlinutes 32 Seconds East, a distance nf 51.13 feet; Page 3 of S EX�I�IT `/�4l` 25. Sauti7 8i Degree� 55 Minwtes 32 Seconds East, a clistance af 60.13 feet; 26. Sauth �7 Degrees 5S Mir7utes 32 Seconds East, a distance af 332.81 feet; 27. Sauth i3C1 C)e�rees 10 Minutes 46 Seconds East, a distance of 250.40 feet; 28� Saia�h 87 L�egrees 5.5 �Vlinutes 46 Seconds East, a distance af 1,201.54 feet; 29. 5outh 87 De�rees SS (�%linutes 46 Seconds East, a distance af 50.36 feet; 30. North i8 De�rees 4S Minutes 36 Seconds East, a distanr_e of 102.76 feet; 31. Sauth 87 Degrees S5 Minuies 31 Seconds East, a distance of 259.46 feet; 32. South 42 Degrees 48 Minutes 43 Seconds Easto a distance�of 84.30 feet t� the poin� of intersection af the wesf right-of-way line of Masch Branch Road and the south right-of-way line of U.S. Highway 3�fJo 3.3. East, across l�asch Ciranrh Road a distance of 60 feet; 34. North 46 CJegrees 30 Minutes 19 Seconds East a distance of i9.82 feet; 3S. South 87 Degr�es 5.5 Minutes 32 Secorids East, a distance of 618.5� feet; 36. N�rth 89 Degrees 12. Minutes 37 Seconds East, a distance of 83.99 feet; 37, Souih 87 C7e�rees S5 Minutes 32 Secands East, a distance of 302,71 feet; 38. Sauth 8i Degrees 55 IVlinutes 32 Seconds East, � distance of 132.15 feet; 39. So�ath 87 Degrees 55 Mir7utes 32 Seconds East, a distance of 1�3.59 feet; 40, South 76 Degrees 36 Minut�s S� Seconds East, a distance of 101.99 feet; 41, South 87 Degrees 5S Minutes 32 Seconds East, a distance of 588..59 feet; 42. 5outh £�7 C)egrees 5.5 Minutes 32_ Ser.onds East, a distance of 176.54 feeto 43o South 8'7 Degrees S5 Nlinutes 32 Sec:nnds East, a distance of 284.87 feet, 44. South �S l7egrees 03 (Vlinules 46 Seconds East, a r�istanee of 10Q.13 feeta 4S, South 87 Degrees 55 Mir�ut�s 32 Seconds East, a r�ist�nce of 107.84 feet; '��: Sauth 44 Degrees 07 Minutes 4S Seconds East, a distance of 12.40 feet tc� the point of interseciion of the wes� ri�ht-c��-way line of Western �oulevard and the south right-of-way line af U.S, Highway 3�CJ; �7. East, across Wester�� Boul�vard a distance of 135 feet ; 4$. Nnrth 45 Degrees 52 Min�ates 15 Secnnds East, a dist�nce �f 11.88 feet; 49. Sotath Si Degrees-55 IVlinutes 32 5econds East, a distance of 800.5� feAt; SfJ. South 87 Degrees SS I�inutes 32 Seconds East, a distance of 245.39 feet; 51. Souih 8% Degrees 55 Nlii�uies 32 Seconds East, a distance of 743.91 feet; S2, Sc�uth 76 Degrees 36 Minutes 57 Seconds East, a distance af 50.99 feet; 53. Sauth 87 Degrees 55 Minutes 32 Seconds East, a dist�nce r�f 337.93 feet; 54. North 73 D�grees 14 fVlinutes 04 Seconds East, a distance af 67.24 fieet; SS. South 89 Degrees 03 Minutes 14 Seconds East, a distance nf 100 feet; 56. Sr�uth 72 Degr�es 21, IVlinutes 14 Seeonds East, a distance of 104.40 feet; 51. South 89 Degrees 03 Minutes 14 Seconds East, a distance of 116.36 �eet; 58. Sauth 89 Degrees 0� Miriutes 14 Seconds East, a distance of 133.64 feet� 59. North 82 Degrees 24 Minutes 55 Seconds East, a distance of 202.24 feet; 60. South 89 Degrees 03 Minutes 17 Seconds East, a distance of 80 feet; 61. South 62 Degrees 29 Minutes 18 Seconds East, a distance of 97.13 feet; Thence Saufh 89 Ciegrees 03 Minutes 14 Secands East, confinuing alang the sauth right-of-way line of U.Se Highway 380 a distance of 140 feet io a qoint fnr a corner and being the na��t.hwest corner of said Lot 1, Blpck 1 Qi 912 Addition; Page 4 of 5 EXI-II I1� Al�l/ Thenre NVorth 64 Degrees 58 Minutes 35 Seconds East, alang the South line of U.S. Highway 380 arrd nlorth line of said Loi 1r Blocl< 1 QT /�ddition a distance af 88.28 fePt to a point for a comer; Thenr_e South 88 Degrees �4 Minutes 15 5econds Fast, along the South line of U.S. Highway 380 and �Vcarth IinP of said Lot 1, �locl< 1 QT Addition a distance of 142.63 feet to a point for a corner; Thence So�ith 71 C�egrees 41 fVlinutes 15 Secands East, along the Sauth line of U.S. Highway 380 and Narth line nf said Lot 1, Blocl< 1 Q7 Addition a distance of 163.31 feet fio a�Qint for a corner; Thenee Sauth 4S Degrees �S Minufes 20 Seconds East, along the South line of U.S. Nighway 380 and North line of said Lot 1, Block 1 QT Addition a distance of 14�.34 feet to the Pt711VT OF �EGI�JfVIN� and containing in all apprc�ximately 8,533 acres nf land, more oi° less. SAVE AIV� E?(CEPi from the abave described �,533 acre tract all those tracts �:hat were specifiically Saved and Excepted from City o� Dentan annexation ordinances 2Q10-117, 2010-121, 2010-122 anc� 2010-123, those Save and Except tracts described therein being subject to certain nnn-annexati�n agreements and arP not presently situat�d within the municipal boundaries of the City of L�enton, Texas. Page 5 of 5 �V 11 �i ' � - , �w ,, ;; � �• " ! �' •� ` � r � � - �ombined �leafing and Pawer Plani Lacation