02.26.2008 Town Council PacketI0SPER
OWN OF
1. Call to Order / Roll Call.
2. Invocation and Pledge of Allegiance.
AGENDA
Regular Meeting of the Prosper Town Council
Prosper Middle School - Library
605 E. Seventh Street, Prosper, Texas
Tuesday, February 26, 2008 at 6:00 p.m.
3. Announcements of dates and times of upcoming community events.
CONSENT AGENDA
(Items placed on the Consent Agenda are considered routine in nature and are considered non -controversial. The Consent Agenda can be acted upon in one
motion. A majority vote of the Council is required to remove any item for discussion and separate action. Council members may vote nay on any single item
without comment and may submit written comments as part of the official record.)
4. Consent Agenda
MINUTES
a. Consider and act upon minutes from the following Council meetings. (MD)
December 8, 2008 — Regular Town Council Meeting
ORDINANCES, RESOLUTIONS, AND AGREEMENTS
b. An update on the Town's sports fields and/or the construction of future sports fields. (WH)
C. Consider and act upon whether to direct staff to submit a written notice of appeal on behalf of the Town
Council to the Development Services Department, pursuant to Chapter 4, Section 1.5(C)(7) and 1.6(B)(7)
of the Town's Zoning Ordinance, regarding action taken by the Planning & Zoning Commission on any site
plan or preliminary site plan. (CC)
d. Consider and act upon a Joint Election Agreement and Contract for Election Services between the Town of
Prosper and the Prosper Independent School District to be administered by the Collin County Elections
Administration for the May 10, 2008 General Election. (MD)
e. Consider and act upon a resolution adopting an Investment Policy for the Town and the Prosper Economic
Development Corporation. (RB)
f. Consider and act upon a resolution for the Town of Prosper to accept the Town's 2006-2007 fiscal year
financial audit as presented by Pingleton, Howard & Company, P.C., Certified Public Accountants on
January 22, 2008. (RB)
g. Consider and act upon an ordinance approving a settlement agreement between the Atmos Cities Steering
Committee and Atmos Energy Corp regarding the company's statement of intent to change gas rates. (ML)
FINANCIALS
h. Consider and act upon the financial statements ending January 31, 2008. (RB)
Page I of 3
CITIZEN'S COMMENTS
(The public is invited to address the Council on any topic. However, the Council is unable to discuss or take action on any topic not listed on this agenda
Please complete a "Public Comments Form" and present it to the Town Secretary prior to the meeting.)
5. Other Comments by the Public.
REGULAR AGENDA
(If you wish to address the Council during the regular agenda portion of the meeting, please fill out a "Speaker Request Form" and present it to the Town
Secretary prior to the meeting. Citizens wishing to address the Council for items listed as public hearings will be recognized by the Mayor. Those wishing to
speak on a non-public hearing related items will be recognized on a case -by -case basis, at the discretion of the Mayor and Town Council.)
PUBLIC HEARINGS
6. Presentation of Service Plan and Second Public hearing to consider the voluntary annexation of
approximately 2106.592 acres of land being more generally located north of Hwy 380 and west of Fields
Road. (MD)
7. Presentation of Service Plan and Second Public hearing to consider the voluntary annexation of
approximately 27.149 acres of land being more generally located east of Good Hope Road and 1600'±
north of Hwy 3 80. (MD
DEPARTMENT ITEMS
8. Recognition of Daren Queen of Kings Hollow Custom Homes as the recipient of the Building Inspection's
2007 Builder of the Year Award and of Dale Schneider of Ryan Hartman Custom Homes as First Runner -
Up and Scott Rackers previously of Highland Homes as Second Runner -Up of the Award. (BA)
9. Consider and act upon a resolution authorizing the Town Manager to enter into a Letter of Agreement with
Arthur and Karie Dalton for the Subdivision of three lots located in the southwest quadrant of the
intersection of Prosper Trail and Robinson Creek. (MIL)
10. Consider and act upon an ordinance adopting a Code of Ethics as required by the Town Charter. (ML)
11. Consider and act upon a resolution to become a Public Safety Answering Point for 9-1-1 calls originating
within the Town of Prosper. (KM)
12. Recess into Closed Session in compliance with Section 551.001 et. seq. Texas Government Code, to
wit;
a. Section 551.087 to deliberate on economic development negotiations regarding the Gates of
Prosper project.
b. Section 551.087 to discuss economic development negotiations for the Custer Retail Project.
13. Reconvene into Regular Session and take any action necessary as a result of the Closed Session.
14. Possibly direct Town Staff to schedule topic(s) for discussion at a future meeting.
15. Adjourn.
Page 2 of 3
CERTIFICATION
I, the undersigned authority, do hereby certify that this Notice of Meeting was posted on the inside window at the Town Hall of the Town of Prosper, Texas, a
place convenient and readily accessible to the general public at all times, and said Notice was posted by the following date and time: Friday, February 22,
2008 at 5:00 p.m. and remained so posted at least 72 hours before said meeting was convened.
Date Noticed Removed
In addition to any specifically identified Executive Sessions, Council may convene into Executive Session under Section 551 of the Texas Government Code at
any point during the open meeting to discuss any item posted on this agenda. The Open Meetings Act provides specific exceptions that require that a meeting
be open. Should Council elect to convene into Executive Session, those exceptions will be specifically identified and announced. Any subsequent action, as a
result of this Executive Session, will be taken and recorded in open session.
NOTICE OF ASSISTANCE AT PUBLIC MEETINGS: The Prosper Town Council Meetings are wheelchair accessible. Persons with disabilities who plan
to attend this meeting and who may need auxiliary aids or services such as Interpreters for persons who are deaf or hearing impaired, readers, or large print, are
requested to contact the Town Secretary's Office at (972) 346-2640 or by FAX (972) 347-2111. BRAILLE IS NOT AVAILABLE.
Page 3 of 3
ISPER
OWN OF
1. Call to Order / Roll Call.
The n'AA+;"" —fac nallA,4 to nr.lwr at A-0 2 n m
Roll c
Count
Dave
Staff
McFa
2.
The Il
Mayo
3.
Mayo
Chap]
Matt
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PRE'
4.
Count
CONSENT AGENDA
5. Consent
MINUTES
MINUTES
Regular Meeting of the Prosper Town Council
Prosper Middle School - Library
605 E. Seventh Street, Prosper, Texas
Tuesday, February 12, 2008 at 6:00 p.m.
:)r Pro-Tem
vices; Kirk
ned Forces
under way
for Folsom
a. Consider and act upon minutes from the following Council meetings. (MD)
• January 22, 2008 — Regular Town Council Meeting
• January 29, 2008 —Joint Planning and Zoning Commission / Town Council Meeting
• February 5, 2008 — Special Town Council Meeting
ORDINANCES, RESOLUTIONS. AND AGREEMENTS
b. An update on the Town's sports fields and/or the construction of future sports fields. (WI)
Page 1 of 4
C. Consider and act upon 1) a Partial Assignment and Assumption of Agreement between MF VII
Prosper 41, LP, and Western Rim Investors 2007-4, L.P., and 2) approve a resolution authorizing
the Town Manager to execute the same. (CC)
d. Consider and act upon 1) a Partial Assignment and Assumption of Agreement between Mooreland
Fund III 380 Comm Office, LP, and Virginia Ridge Properties, LTD., and 2) approve a
resolution authorizing the Town Manager to execute the same. (CC)
e. Consider and act upon 1) a Partial Assignment and Assumption of Agreement between Mooreland
Fund III 380 Comm Office, LP, and Pineview Woods, L.P., and 2) approve a resolution
authorizing the Town Manager to execute the same. (CC)J
f. Consider and act upon 1) a Partial Assignment and Assumptioi$* ;Agreement between Mooreland
n`
Fund III 380 Comm Office, LP, and Prosper Ventures Partners,•'•and 2) approve a resolution
authorizing the Town Manager to execute the same. (CC)
g- Consider and act upon an ordinance rezoning 285.5ttiacres, located on the north and south side of
First Street, 2,650f feet east of Coit Road, from •>Agricultural (A) to PlanneAd D "velopment-Single
� r Eon'` , >. .
Family (PD- SF). (Z07-18). (CC) �h4`h �,4`
tii' z1i�a. i- t
h. Consider and act upon an ordinance for the voluntary annexation of a tract of land located in the
Spencer Graham Survey, Abstract No. 359, Collin County Tfexas, containing approximately 10.0141
acres of land, and being more generally located 3700± feetl,easty of Coit and 1840± feet north of E.
First Street. (MD)
i. Consider and act upon a resolution ord ring �a' Ge%neral Election to held jointly with the Prosper
Independent School District and the Colliw:CountynComm nity College District, and administered by
the Collin County Elections Administration, on{.May 10, 2008,,E r the purpose of electing three (3)
members, Place 3, Place and Place 5, to t02, heg,Town of Prosper Town Council to fill expired terms.
j. Presentation of think 07 Racial rofiling Report for tli'e Prosper Police Department. (KM)
k. Consider anda act upon 1) an Addendum .:oVITown Approval for the Partial Assignment and
Assumption ofJ�A�qqAgrWeement,between Frisco �To Tway Partners, Ltd., and Hunter 380 Prosper, LP, and
kil.... WfL Wi} .�Shi1
2happrove a reso�uhon authorizing the Town Manager to execute the same. (CC)
1. 40y, Consider and act upon 1) an Ada'endum of Town Approval for the Partial Assignment and
Assumption of Agreement PetweenX. Prosper Hillcrest 60, Ltd., and Hunter 380 Prosper, LP, and 2)
approve a resolution authorizing the Town Manager to execute the same. (CC)
Motioned by Councilinember Drown, seconded by Councilmember Dugger to approved the consent agenda.
Motion approved 6-0.
CITIZEN'S COMMENTS" t
.f
6. Other Comments by the Public.
There were no comments by the public.
Page 2 of 4
REGULAR AGENDA
PUBLIC HEARINGS
7. Presentation of Service Plan and First Public hearing to consider the voluntary annexation of
approximately 2106.592 acres of land being more generally located north of Hwy 380 and west of
Fields Road. (MD)
Motioned by Councilmember Smith, seconded by Councilmember Dugger to open the public hearing.
Motion approved 6-0.
Mayor Niswanger opened the public hearing at 6:15 p.m.
There were no public comments.
Motioned by Deputy Mayor Pro-Tem Turley, seconded by
Motion approved 6-0.
Mayor Niswanger closed the public hearing at 6:16 p.m.
8. Presentation of Service Plan and First Public 1
approximately 27.149 acres of land being more
1600'+ north of Hwy 380. (MD)
Motioned by Councilmember Dugger, seconded
Motion approved 6-0.
Mayor Niswanger opened the public hearing at 6:17
There were no public
Motioned by Councils
Motion approved 6-0.
Mayor Niswanger�clo
9. Consider
with' Qu
�> r
Extensidi
Manager
Hulon Webb, Deg
seconded by Deputy
at
to" the public hearing.
r the voluntary annexation of
east of Good Hope Road and
Smith toQpen,the public hearing.
Pro-Tem Turley to close the public hearing.
and act upodI') -an award'of bid to Quality Excavation 2) enter into a contract agreement
9d9p(ity Excavation regarding the construction services for the Prosper Trail Culvert
Nn �F
sand Channel Improvements Project and 3) approve a resolution authorizing the Town
WC execute the same. (HV)
Director, gave council background information on this item.
Motioned by Councilmember Smith, seconded by Councilmember Dugger to approve the bid to Quality Excavation
in the amount of $240,803.80 and approve a resolution authorizing the Town Manager to execute the contract.
Motion approved 6-0.
Page 3 of 4
10. Consider and act upon a resolution authorizing the Town Manager to enter into a Letter of
Agreement with Arthur and Karie Dalton for the Subdivision of three lots located in the
southwest quadrant of the intersection of Prosper Trail and Robinson Creek. (ML)
Arthur and Karie Dalton address council regarding dividing their lot into three lots and asking for a waiver for some
of the fees associated with developing the property.
Motioned by Deputy Mayor Pro-Tem Turley, seconded by Councilmember Dugger to table the item until a meeting
where the Town's attorney could be present to discuss the legal ramifications of the issue.
Motion approved 6-0.
11. Discuss and give direction on the Meadow Green Street Improvements Project. (ML)
Mike Land, Town Manager, gave council background information on this j
Frank Jaromin, Public Works Director, answered questions for council. ,h;.,
Steve Meyer, 106 Meadow Green, addressed the council
Council directed staff to move forward with prioritizing
to be reconstructed.
12. Possibly direct Town Staff to schedule topic(s) for
13. Adjourn.
Motioned by Councilmember Smith, seconded by
Motion approved 6-0.
The meeting was adjournedAV 7:10
Attest:
Matthew D. D•fi" o , TRMC
Town Secretary
the paving project in Col
008 arid,put Meadow Green as the first street
re meeting.
to
Charles Niswanger, Mayor
Page 4 of 4
PARKS AND
RECREATION
To: Mayor and Town Council
From: Wade Harden, Senior Planner
Cc: Mike Land, Town Manager
Hulon T. Webb, Jr., P.E., Director of Development Services/Town Engineer
Re: Sports Field Update — Town Council Mtg. February 28, 2008
Date: February 19, 2008
Agenda Item:
An update on the Town's sports fields and/or the construction of future sports fields.
Description of Agenda Item:
At the June 12, 2007 meeting, a request was made by Councilmember Wadsworth to have an
update on the Town's sports fields and/or the construction of future sports fields on future
agendas. Currently, the Parks and Recreation Board (PARBd) and Town staff are considering
the following options at Folsom Park and on the 57 acre community park site.
1. Folsom Park (located next to Folsom Elementary in the La Cima subdivision):
Staff has received notification from TPWD that the Town was not approved for the 50%
matching grant (up to $390,000) that was submitted to use as leverage funds with the
recently approved Collin County Grant (up to $390,000). It is Staff's intent to resubmit
the application for a special "one-time" submittal on April 1st, at the suggestion of TPWD
Staff.
La Terra Studio has moved forward developing Concept "C" and submitted 30% plans
including the grading plan. The anticipated bid date continues to be in March with a fall
completion date.
2. 57 acre community park site (adjacent to the future Prosper ISD athletic stadium, south
side of Frontier Parkway, west of the BNSF Railroad):
At the August 23, 2007 PARBd meeting Fred Montes, AIA of PBK presented conceptual
master plans for the 57 acre community park site. The Parks Board directed Town staff
to meet with Prosper ISD, Prosper Sports Association (PSA), and Prosper Area Soccer
Organization (PASO) to discuss the proposed design. Staff initiated contact with PSA
and PASO, and should be meeting with Prosper ISD in the near future. Town staff has
requested a formal proposal for design services from PBK to present to PARBd and
Town Council.
Town Manager Mike Land has met with Prosper ISD to discuss the creation of a Master
Plan for the entire site, including the Prosper ISD parcel. Staff has contacted PBK
requesting an update on the status of the Project.
Agenda Item No. 4b - Page 1 of 3
The Town is continuing to wait on a response from PISD and PBK regarding the design
process. This project has a tentative completion date of Summer of 09' for Phase I.
Attached Documents:
Concept"C"
Town Staff Recommendation:
No action needs to be taken on this item.
Agenda Item No. 4b - Page 2 of 3
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Agenda Item No. 4b - Page 3 of 3
PLANNING
P TOWN EIZ
To: Mayor and Town Council
From: Chris Copple, Senior Planner
Cc: Hulon T. Webb, Jr., P.E., Director of Development Services/Town Engineer
Re: Town Council Meeting — February 26, 2008
Date: February 21, 2008
Agenda Item:
Consider and act upon whether to direct staff to submit a written notice of appeal on behalf of
the Town Council to the Development Services Department, pursuant to Chapter 4, Section
1.5(C)(7) and 1.6(B)(7) of the Town's Zoning Ordinance, regarding action taken by the Planning
& Zoning Commission on any site plan or preliminary site plan.
Description of Agenda Item:
Attached are the site plans and preliminary site plans acted on by the Planning & Zoning
Commission at their February 19, 2008 meeting. Per the Town's Zoning Ordinance, the Town
Council has the ability to direct staff to submit a written notice of appeal on behalf of the Town
Council to the Development Services Department for any site plan or preliminary site plan acted
on by the Planning & Zoning Commission.
Attached Documents:
Preliminary site plan for the Prosper Commons, Block A, Lot 2, approved 5-0 by the
Planning & Zoning Commission.
Town Staff Recommendation:
Town staff recommends that the Town Council take no action based on the approval of the
preliminary site plan by the Planning & Zoning Commission.
Agenda Item No. 4c - Page 1 of 1
IOSPER
WN OF
ADMINISTRATION
To: Mayor and Town Council
From: Matthew D. Denton, Town Secretary
Re: Contract and Joint Agreement for election services
Date: February 26, 2008 Council Meeting
Agenda Item•
Consider and act upon a Joint Election Agreement and Contract for Election Services between
the Town of Prosper and the Prosper Independent School District to be administered by the
Collin County Elections Administration for the May 10, 2008 General Election.
Description of Agenda Item:
Following is a contract for election services provided by the Collin Council Elections
Administration for the May 10, 2008 General Election.
Budget Impact•
The Town of Prosper budgeted to contract the Town's elections through the Collin County
Elections Administration Office. The estimated cost for the General Election is $3340.64.
Attached Documents:
• Joint General Election Contract for Election Services for the Town of Prosper and the
Prosper ISD
• Cost estimate
Board. Committee and/or Staff Recommendation:
Staff recommends council approve the contract for election services to be administered by the
Collin County Elections Administration.
Agenda Item No. 4d
May 10, 2008
Joint General Election
Contract for Election Services
Town of Prosper/Prosper ISD
May 10, 2008
Joint General Election
Table of Contents
I......................................................Duties and Services of Contracting Officer
II................................................Duties and Services of Town and School District
III....................................................................................Cost of Election
IV.........................................................................Joint Election Agreement
V................................................................................. General Provisions
Exhibits
Exhibit A....................................................Early Voting Schedule and Locations
Exhibit B........................................................... Election Day Polling Locations
Exhibit C.............................................................................Cost of Services
Exhibit D..................................................................Joint Election Agreement
May 10, 2008 Joint General Election Town of Prosper and PISD
01/29/08 - Page 2
THE STATE OF TEXAS CONTRACT FOR
COUNTY OF COLLIN §
TOWN — SCHOOL PROSPER ELECTION SERVICES
BY THE TERMS OF THIS CONTRACT made and entered into by and
between the TOWN OF PROSPER, hereinafter referred to as the "TOWN," and the
BOARD OF TRUSTEES OF THE PROSPER INDEPENDENT SCHOOL DISTRICT,
hereinafter referred to as the "SCHOOL DISTRICT," and SHARON ROWE, Elections
Administrator of Collin County, Texas, hereinafter referred to as "Contracting Officer,"
pursuant to the authority in Subchapter D, Section 31.092, of Chapter 31, of the Texas
Election Code, agree to the following particulars in regard to coordination, supervision
and running of the Town and School District's May 10, 2008 Joint General Election.
THIS AGREEMENT is entered into in consideration of the mutual covenants
and promises hereinafter set out. IT IS AGREED AS FOLLOWS:
I. DUTIES AND SERVICES OF CONTRACTING OFFICER. The Contracting
Officer shall be responsible for performing the following duties and shall furnish the
following services and equipment:
A. The Contracting Officer shall arrange for appointment, notification
(including writ of election), training and compensation of all presiding judges, alternate
judges, the judge of the Central Counting Station and judge of the Early Voting Balloting
Board.
a. The Contracting Officer shall be responsible for notification of
each Election Day and Early Voting presiding judge and alternate judge of
his or her appointment. The recommendations of the Town and the
School District will be the accepted guidelines for the number of clerks
secured to work in each polling place. The presiding election judge of
each polling place, however, will use his/her discretion to determine when
additional manpower is needed during peak voting hours. The
Contracting Officer will determine the number of clerks to work in the
Central Counting Station and the number of clerks to work on the
balloting board. Election judges shall be secured by the Contracting
Officer with the approval of the Town and the School District.
May 10, 2008 Joint General Election Town of Prosper and PISD
01 29. 08 - Page 3
b. Election judges shall attend the Contracting Officer's school of
instruction (Elections Seminar) to be held Thursday, May 8, 2008, at the
Collin County 380 Courts Bldg., Central Jury Room, 1800 N. Graves St.,
McKinney, TX at 2:00 PM.
C. Election judges shall be responsible for picking up from and
returning election supplies to the county election warehouse located at
2010 Redbud Blvd., Suite 102, McKinney. Compensation for this pickup
and delivery of supplies will be $25.00.
d. The Contracting Officer shall compensate each election judge and
worker. Each judge shall receive $12.00 per hour for services rendered.
Each alternate judge and clerk shall receive $10.00 per hour for services
rendered.
B. The Contracting Officer shall procure, prepare, and distribute voting
machines, election kits and election supplies.
a. The Contracting Officer shall secure election kits which
include the legal documentation required to hold an election and all
supplies including locks, pens, magic markers, etc.
b. The Contracting Officer shall secure all tables, chairs, and legal
documentation required to run the central counting station.
C. The Contracting Officer shall provide all lists of registered voters
required for use on Election Day and for the early voting period required
by law. The Election Day list of registered voters shall be arranged in
alphabetical order by polling place, in lieu of alphabetic by each precinct
in each polling place.
d. The Contracting Officer shall procure and arrange for the
distribution of all election equipment and supplies required to hold an
election.
May 10, 2008 Joint General Election Town of Prosper and PISD
01/29:08 -Page 4
Equipment includes the rental of voting machines, ADA
compliance headphones and keypads (1 per site), transfer cases,
voting signs and tote boxes.
2. Supplies include smart cards, sample ballots, early
voting mail ballots, pens, tape, markers, etc.
C. The Contracting Officer, Sharon Rowe, shall be appointed the Chief
Deputy Early Voting Clerk by the Town and the School District.
a. The Contracting Officer shall supervise and conduct Early Voting
by mail and in person and shall secure personnel to serve as Early Voting
Deputies.
b. Early Voting by personal appearance for the Town and School
District's May 10, 2008, Joint General Election shall be conducted during
the time period and at the locations listed in Exhibit "A", attached and
incorporated by reference into this contract.
C. All applications for an Early Voting mail ballot shall be received
and processed by the Collin County Elections Administration Office,
2010 Redbud Blvd., Suite 102, McKinney, Texas 75069.
1. Application for mail ballots erroneously mailed to the
Town or School District shall immediately be faxed to the
Contracting Officer for timely processing. The original application
shall then be forwarded to the Contracting Officer for proper
retention.
2. All Federal Post Card Applicants (FPCA) will be sent a
mail ballot. No postage is required.
d. All Early Voting ballots (those cast by mail and those cast by
personal appearance) shall be prepared for count by the Early Voting
May 10, 2008 Joint General Election - Town of Prosper and PISD
01129/08 Page 5
Ballot Board in accordance with Section 87.000 of the Texas Election
Code. The presiding judge of this Board shall be appointed by the
Contracting Officer.
D. The Contracting Officer shall arrange for the use of all Election Day
polling places. The Town and School District shall assume the responsibility of remitting
the cost of all employee services required to provide access, provide security or provide
custodial services for the polling locations. The Election Day polling locations are listed
in Exhibit `B", attached and incorporated by reference into this contract.
E. The Contracting Officer shall be responsible for establishing and operating
the Central Counting Station to receive and tabulate the voted ballots in accordance with
Section 127.001 of the Election Code and of this agreement. Counting Station Manager
and Central Count Judge shall be Sharon Rowe. The Tabulation Supervisor shall be Patty
Seals.
a. The tabulation supervisor shall prepare, test and run the county's
tabulation system in accordance with statutory requirements and county
policies, under the auspices of the Contracting Officer.
b. The Public Logic and Accuracy Test of the electronic voting
system shall be conducted.
C. Election night reports will be available to the Town and School
District at the Central Counting Station on election night. Provisional
ballots will be tabulated after election night in accordance with law.
d. The Contracting Officer shall prepare the unofficial canvass report
after all precincts have been counted, and will provide a copy of the
unofficial canvass to the Town and School District as soon as possible
after all returns have been tallied.
The Contracting Officer shall be appointed the custodian of the
voted ballots and shall retain all election material for a period of 22
months.
May 10, 2008 Joint General Election Town of Prosper and PISD
01;29 08 Page 6
1. Pending no litigation and as prescribed by law, the voted
ballots shall be shredded 22 months after the election.
2. The Town and School District can obtain the list of
registered voters from the Elections Administration Office after
this retention period. Pending no litigation and if the Town or
School District does not request the lists, the Contracting Officer
shall destroy them.
f. The Contracting Officer shall conduct a manual count as
prescribed by Section 127.201 of the Texas Election Code and submit a
written report to the Town and School District in a timely manner. The
Secretary of State may waive this requirement. If applicable, a written
report shall be submitted to the Secretary of State as required by Section
127.201(E) of the aforementioned code.
II. DUTIES AND SERVICES OF THE TOWN AND SCHOOL DISTRICT.
The Town and School District shall assume the following responsibilities:
A. The Town and School District shall prepare the election orders,
resolutions, notices, justice department submissions, official canvass and other pertinent
documents for adoption by the appropriate office or body. The Town and School District
assumes the responsibility of posting all notices and likewise promoting the schedules for
Early Voting and Election Day.
B. The Town and School District shall provide the Contracting Officer with
an updated map and street index of their jurisdiction in an electronic or printed format as
soon as possible but no later than Friday, March 21, 2008.
C. The Town and School District shall procure and provide the Contracting
Officer with the ballot layout and Spanish interpretation in an electronic format.
a. The Town and School District shall deliver to the Contracting
Officer as soon as possible, but no later than Tuesday, March 11, 2008, the
official wording for the Town and School District's May 10, 2008, Joint
General Election.
May 10, 2008 Joint General Election - Town of Prosper and PISD
O l i29 `08 - Page 7
b. The Town and School District shall approve the "blue line" ballot
format prior to the final printing.
D. The Town and School District shall post the publication of election notice
by the proper methods with the proper media.
E. The Town and School District shall prepare and submit to the U. S.
Department of Justice under the Federal Voting Rights Act of 1965, any required
submissions on voting changes.
F. The Town and School District shall compensate the Contracting Officer
for any additional verified cost incurred in the process of running this election or for a
manual count this election may require, consistent with charges and hourly rates shown
on Exhibit "C" for required services.
G. The Town and School District shall pay the Contracting Officer 90% of
the estimated cost to run the said election prior to Friday, March 28, 2008. The
Contracting Officer shall place the funds in a "contract fund" as prescribed by Section
3 1. 100 of the Texas Election Code. The Deposit should be delivered within the
mandatory time frame to:
Collin County Treasury
200 S. McDonald, Suite 310
McKinney, Texas 75069
ATTN: Alice Dobecka
H. The Town and School District shall pay the cost of conducting said
election, less partial payment, including the 10% administrative fee, pursuant to the Texas
Election Code, Section 31.100, within 30 days from the date of final billing.
III. COST OF SERVICES. See Exhibit "C."
IV. JOINT ELECTION AGREEMENT. See Exhibit "D."
V. GENERAL PROVISIONS.
May 10, 2008 Joint General Election - Town of Prosper and PISD
01:29/08 - Page 8
A. Nothing contained in this contract shall authorize or permit a change in the
officer with whom or the place at which any document or record relating to the Town and
School District's May 10, 2008, Joint General Election is to be filed or the place at which
any function is to be carried out, or any nontransferable functions specified under Section
31.096 of the Texas Election Code.
B. Upon request, the Contracting Officer will provide copies of all invoices
and other charges received in the process of running said election for the Town and
School District.
C. If the Town and/or School District cancel their election pursuant to
Section 2.053 of the Texas Election Code, the Contracting Officer shall be paid a contract
preparation fee of $75. An entity canceling an election will not be liable for any further
costs incurred by the Contracting Officer in conducting the May 10, 2008, Joint General
Election. All actual shared cost incurred in the conduct of the election will be divided by
the actual number of entities contracting with the Contracting Officer and holding a May
10, 2008, Joint General Election.
D. The Contracting Officer shall file copies of this contract with the County
Judge and the County Auditor of Collin County, Texas.
May 10, 2008 Joint General Election - Town of Prosper and PISD
OV29'08 Page 9
WITNESS BY MY HAND THIS THE DAY OF 2008.
WITNESS BY MY HAND THIS THE
By:
Charles Niswanger, Mayor
Town of Prosper
WITNESS BY MY HAND THIS THE
By:
Drew Watkins, Superintendent
Prosper Independent School District
Sharon Rowe
Elections Administrator
Collin County, Texas
DAY OF 2008.
Attest:
Matthew Denton, Town Secretary
Town of Prosper
DAY OF 2008.
Attest:
Pam Webb, Secretary
Prosper Independent School District
May 10, 2008 Joint General Election Town of Prosper and PISD
01 29•'08 - Page 10
Exhibit "A"
MAY 109 20089 JOINT GENERAL ELECTION
Town of Prosper, Prosper ISD
Early Voting Locations and Hours
Polling Place
Address
city
Collin County Election Office
2010 Redbud Blvd., # 102
McKinney
Main Early Voting Location
Prosper Town Hall
121 W. Broadway St.
Prosper
Sunday
Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
Apr 27
April 28
April 29
April 30
May 1
May 2
May 3
8am-5 m
8am — S m
8am — 5 m
8am - 7 m
8am - S m
8am - S m
May 4
May S
May 6
May 7
May 8
May 9
May 10
lam — 7pm
lam — 7 m
7am — 7 m
Election Da
May 10, 2008 Joint General Election - Town of Prosper and PISD
0li29'08 Page 11
Exhibit `B"
MAY 109 2008
JOINT GENERAL ELECTION
Town of Prosper, Prosper ISD
Election Day Polling Locations
Precincts
Location
Address
city
13, 29, 134
Prosper High School
300 Eagle Lane
Prosper
May 10, 2008 Joint General Election Town of Prosper and PISD
O1'29:'08 Page 12
Exhibit "D"
JOINT ELECTION AGREEMENT
between
The Town Council of the Town of Prosper, Texas (the Town) and the Board of Trustees of the
Prosper Independent School District (the School), and the Board of Trustees of the Collin County
Community College District (the College).
BY THE TERMS OF THIS AGREEMENT, the Town, the School, and the College do hereby agree,
pursuant to the provisions of the Texas Election Code, to hold a joint election of the General Election of the
Town and General Election of the School and College District to be held on Saturday, May 10, 2008. All
entities have contracted with the Collin County Elections Administrator (Election Administrator) to perform
various duties and responsibilities on behalf of the three entities.
The three entities shall share equally in the expense of the polling locations, election officials, supplies,
ballots and other and all necessary expenses for the election upon receipt of satisfactory billing and invoices
reflecting the total of such election.
An entity canceling an election pursuant to Section 2.053 of the Texas Election Code will not be liable for
costs incurred by the Elections Administrator in conducting the May 10, 2008, Joint General Election; they
will be liable only for the contract preparation fee of $75.00.
APPROVED BY THE TOWN COUNCIL OF THE TOWN OF PROSPER, TEXAS in its meeting
held the day of , 2008 and executed by its authorized representative.
By:
Charles Niswanger, Mayor
Attest:
Matthew Denton, Town Secretary
APPROVED ON BEHALF OF THE PROSPER INDEPENDENT SCHOOL DISTRICT in its
meeting held the day of , 2008, and executed by its authorized representative.
By:
Drew Watkins. Superintendent
Attest:
Pam Webb, Secretary
APPROVED BY THE BOARD OF TRUSTEES OF THE COLLIN COUNTY COMMUNITY
COLLEGE DISTRICT in its meeting held the day of 2008, and executed by its
authorized representative.
By: .. _ Attest:..
Dr. Cary Israel, President Brenda Kihl, Assistant to the President
May 10, 2008 Joint General Election Town of Prosper and P1SD
01/29/08 - Page 13
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Administration
To: Mayor and Town Council
From: Ron Butler, Finance/Business Manager
Cc: Mike Land, Town Manager
Re: Prosper Town Council Meeting — February 26, 2008
Date: February 26, 2008
Agenda Item:
Consider and act upon a resolution updating and adopting the Town's Investment Policy
Description of Agenda Item:
In March, 2006 the Town of Prosper council adopted an Investment Policy for the Town and
EDC. Under the Public Funds Investments Act, Chapter 2256.05, sec. 2256.005 (e), the
governing body of the investing entity shall review its investment policy and investment
strategies and shall adopt by rule, order, ordinance, or resolution stating that it has reviewed the
investment policy and investment strategies and that the written instrument so adopted shall
record any changes made to either the investment policy or investment strategies.
The Town of Prosper Investment Policy was reviewed by First Southwest Company and the
following changes have been suggested and made to the Investment Policy.
1. CMO's was deleted from the list of authorized investments on page 6,
2. Reference to Savings & Loans deleted,
3. The word "domiciled" changed to "doing business", and
4. Town Administrator changed to Town Manager.
Budget Impact:
N/A
Legal Obligations and Review:
N/A
Attached Documents:
Resolution
Investment Policy updated
Agenda Item No. 4e
Board. Committee and/or Staff Recommendation:
Staff recommends that the Town Council approve the resolution updating and adopting
the investment policy with the following revisions to the policy:
1. CMO's deleted from the list of authorized investments on page 6,
2. Reference to Savings & Loans deleted,
3. The word "domiciled" changed to "doing business", and
4. Town Administrator changed to Town Manager.
Agenda Item No. 4e
ISPER
OWN OF
TOWN OF PROSPER, TEXAS
PROSPER ECONOMIC DEVELOPMENT CORPORATION
INVESTMENT POLICY
FEBRUARY 20, 2008
Investment Policy
INVESTMENT POLICY
Table of Contents
I. Purpose
A. Formal Adoption
B. Scope
C. Review and Amendment
D. Investment Strategy
II. Investment Objectives
A. Safety of Principal
B. Maintenance of Adequate Liquidity
III. Investment Policies
A. Authorized Investments
B. Protection of Principal
C. Investment Advisors and Investment Providers
D. Selection of Investment Providers
E. Responsibility and Control
IV. Investment Strategies
V. Appendix "A" — Glossary of Cash Management Terms
Investment Policy Page 2 of 22
PREFACE
The Town of Prosper and the Prosper Economic Development Corporation are separately
chartered, governed, and operated entities. Each ENTITY adheres to its own governing
documents and the Public Funds Investment Act (PFIA). Each ENTITY additionally seeks to
safely and effectively manage the funds under its control. To achieve those requirements, the
governing body of each ENTITY has legally adopted this Investment Policy.
Throughout this Investment Policy, the two entities shall be singularly referred to as "ENTITY"
and collectively referred to as "PROSPER."
It is the policy of PROSPER that, giving due regard to the safety and risk of investment, all
available funds shall be invested in conformance with State and Federal Regulations, applicable
Bond Resolution requirements, adopted Investment Policy and adopted Investment Strategy.
Effective cash management is recognized as essential to good fiscal management. Aggressive
cash management and effective investment strategy development will be pursued to take
advantage of interest earnings as viable and material revenue to all PROSPER funds.
PROSPER's portfolio shall be designed and managed in a manner responsive to the public trust
and consistent with this policy.
Investments shall be made with the primary objectives of.
• Preservation of capital,
• Safety of PROSPER funds,
• Maintenance of sufficient liquidity,
• Maximization of return within acceptable risk constraints, and
• Diversification of investments.
Investment Policy Page 3 of 22
I. PURPOSE
A. Formal Adoption
This Investment Policy is authorized by PROSPER in accordance with Chapter 2256,
Texas Government Code, the Public Funds Investment Act.
B. Scope
This Investment Policy applies to all of the investment activities of PROSPER. This
Policy establishes guidelines for:
1. who can invest PROSPER funds,
2. how PROSPER funds will be invested, and
3. when and how a periodic review of investments will be made.
In addition to this Policy, bond funds (as defined by the Internal Revenue Service)
shall be managed in accordance with their issuing documentation and all applicable
State and Federal Law.
All investments made with PROSPER funds prior to the adoption of this Investment
Policy shall be held or liquidated as determined to be in the best interest of the
financial well being of PROSPER.
C. Review and Amendment
This Policy shall be reviewed annually by the ENTITY'S governing body. The
ENTITY'S governing body shall adopt a written document stating that it has
reviewed the Investment Policy.
D. Investment Strategy
In conjunction with the annual Policy review, the ENTITY'S governing body shall
review the separate written Investment Strategy for each of PROSPER's funds. The
Investment Strategy must describe the investment objectives for each particular fund
according to the following priorities:
I. Investment suitability,
2. Preservation and safety of principal,
3. Liquidity,
4. Marketability prior to maturity of each investment,
Investment Policy Page 4 of 22
5. Diversification, and
6. Yield.
H. INVESTMENT OBJECTIVES
A. Safety of Principal
The primary objective of all investment activity is the preservation of capital and the
safety of principal in the overall portfolio. Each investment transaction shall seek to
ensure first that capital losses are avoided, whether they are from securities defaults
or erosion of the market value.
B. Maintenance of Adequate Liquidity
The investment portfolio will remain sufficiently liquid to meet the cash flow
requirements that might be reasonably anticipated. Liquidity shall be achieved by
matching investment maturities with forecasted cash flow requirements; investing in
securities with active secondary markets; and maintaining appropriate portfolio
diversification.
III. INVESTMENT POLICIES
A. Authorized Investments
Investments described below are authorized by the Public Funds Investment Act as
eligible securities for PROSPER. In the event an authorized investment loses its
required minimum credit rating, all prudent measures will be taken to liquidate said
investment. Additionally, PROSPER is not required to liquidate investments that
were authorized at the time of purchase. PROSPER's funds governed by this Policy
may be invested in:
1. Obligations of Governmental Entities. Except for the items listed in I.f. below,
the following are authorized investments for obligations of governmental
agencies:
a. Obligations of the United States or its agencies and instrumentalities;
b. Direct obligations of the State of Texas or its agencies and instrumentalities;
c. Other obligations, the principal and interest on which are unconditionally
guaranteed or insured by, or backed by the full faith and credit of, the State of
Texas or the United States or their respective agencies and instrumentalities;
— - - - - ----- - --- ---- - - --- - --- -----
Investment Policy Page 5 of 22
d. Obligations of states, agencies, counties, cities, and other political
subdivisions of any State having been rated as to investment quality by a
nationally recognized investment rating firm and having received a rating of
not less than "A" or its equivalent; and
e. The following are not authorized investments for PROSPER:
1. Obligations whose payments represent the coupon payments on the
outstanding principal balance of the underlying mortgage -backed security
collateral and pays no principal (Interest Only CMO);
2. Obligations whose payments represent the principal stream of cash flow
from the underlying mortgage -backed security collateral and bear no
interest (Principal Only CMO);
3. Collateralized mortgage obligations that have a stated final maturity date of
greater than 10 years; and
4. Collateralized mortgage obligations the interest rate of which is
determined by an index that adjusts opposite to the changes in the market
index Inverse Floater CMO).
PROSPER expressly prohibits the acceptance for collateralized deposits
interest -only and principal -only mortgage backed securities and
collateralized mortgage obligations with stated final maturities in excess
of ten years or with coupon rates that float inversely to market index
movements.
2. Financial Institution Deposits. Deposits issued by State and National
Banks doing business in Texas that are:
a. Guaranteed or insured by the Federal Deposit Insurance Corporation or its
successors; or
b. Secured by obligations that are described by 1. above, which are intended to
include all direct Federal agency or instrumentality issued mortgage backed
securities, but excluding those mortgage -backed securities of the nature
described in l.f. above, that have a market value of not less than the uninsured
amount of the deposit; or
c. Secured in any other manner and amount provided by the law for deposits of
PROSPER; or
Investment Policy — Page 6 of 22
d. Governed by a Depository Agreement, as described in this Policy, that ------ Formatted: Indent: Left: 1", Hanging: 0.25",
complies with Federal and State regulations to properly secure a pledged Numbered + Level: 1 + Numbering Style: a, b,
c, ... + Start at: 2 + Alignment: Left + Aligned
security interest. at: 1.25" + Tab after: 1.55" + Indent at:
1.55", Tab stops: Not at 1.55"
3. Mutual Funds. Money market mutual funds regulated by the Securities &
Exchange Commission, with a dollar weighted average portfolio maturity of 90
days or less that fully invest dollar -for -dollar all PROSPER funds without sales
commission or loads and, whose investment objectives include seeking to
maintain a stable net asset value of $1 per share. PROSPER may not invest funds
under its control in an amount that exceeds 10% of the total assets of any
individual money market mutual fund, excluding bond proceeds and reserves and
other funds held for debt service in money market mutual funds;
4. Investment Pools. Eligible investment pools organized and operating in
compliance with the Public Funds Investment Act that have been authorized by
the ENTITY'S governing body; and whose investment philosophy and strategy
include seeking to maintain a stable net asset value of $1 per share, and are
consistent with this Policy and PROSPER's ongoing investment strategy.
PROSPER expressly allows money market mutual funds and eligible
investment pools, authorized by the ENTITY'S governing body, to invest to the
full extent permissible within the Public Funds Investment Act.
B. Protection of Principal
PROSPER shall seek to control the risk of loss due to failure of a security issuer or
grantor. Such risk shall be controlled by investing only in the safest types of securities
as defined in the Policy; by collateralization as required by law; and through portfolio
diversification by maturity and type.
The purchase of individual securities shall be executed "delivery versus Payment"
(DVP) through PROSPER's Safekeeping Agent. By so doing, PROSPER's funds are
not released until PROSPER has received, through the Safekeeping Agent, the
securities purchased.
1. Diversification by Investment Type
Diversification by investment type shall be maintained by ensuring an active and
efficient secondary market in portfolio investments and by controlling the market
and opportunity risks associated with specific investment types.
Bond proceeds may be invested in a single security or investment if PROSPER
determines that such an investment is necessary to comply with Federal arbitrage
restrictions or to facilitate arbitrage record keeping and calculation.
Investment Policy Page 7 of 22
2. Diversification by Investment Maturity
In order to minimize risk of loss due to interest rate fluctuations, investment
maturities will not exceed the anticipated cash flow requirements of the funds.
Maturity guidelines by fund are as follows:
(Investment transactions made prior to the adoption of this Policy are not subject
to these guidelines.)
a. Operating Funds
The weighted average days to maturity for the operating fund portfolio shall
be less than 365 days and the maximum allowable maturity shall be two years.
b. Construction and Capital Improvement Funds
The investment maturity of construction and capital improvement funds shall
generally be limited to the anticipated cash flow requirement or the
"temporary period," as defined by Federal Tax Law. During the temporary
period, which is generally three years for capital projects, bond proceeds may
be invested at an unrestricted yield. After the expiration of the temporary
period, bond proceeds subject to yield restriction shall be invested considering
the anticipated cash flow requirements of the funds and market conditions to
achieve compliance with the applicable regulations. The maximum maturity
for all construction or capital improvement funds shall be three years. All
earnings in excess of the allowable arbitrage earnings ("rebate liability") will
be segregated and made available for any necessary payments to the U. S.
Treasury.
c. Debt Service Funds
Debt Service Funds shall be invested to ensure adequate funding for each
consecutive debt service payment. The Investment Officers shall invest in
such a manner as not to exceed an "unfunded" debt service date with the
maturity of any investment. An unfunded debt service date is defined as a
coupon or principal payment date that does not have cash or investment
securities available to satisfy said payment.
d. Enterprise Funds
The weighted average days to maturity for the operating fund portfolio shall
be less than 365 days and the maximum allowable maturity shall be two years.
Investment Policy Page 8 of 22
3. Ensuring Liquidity
Liquidity shall be achieved by anticipating cash flow requirements, by investing
in securities with active secondary markets and by investing in eligible money
market mutual funds and local government investment pools.
A security may be liquidated to meet unanticipated cash requirements, to redeploy
cash into other investments expected to outperform current holdings, or otherwise
to adjust the portfolio.
4. Depository Agreements
Consistent with the requirements of State Law, PROSPER requires all bank
deposits to be federally insured or collateralized with eligible securities. Financial
institutions serving as PROSPER's Depositories will be required to sign a
Depository Agreement with PROSPER and PROSPER's safekeeping agent. The
safekeeping portion of the Agreement shall define PROSPER's rights to the
collateral in case of default, bankruptcy, or closing and shall establish a perfected
security interest in compliance with Federal and State regulations, including:
• The Agreement must be in writing;
• The Agreement has to be executed by the Depository and PROSPER
contemporaneously with the acquisition of the asset;
• The Agreement must be approved by the Board of Directors or the designated
committee of the Depository and a copy of the meeting minutes must be
delivered to PROSPER;
• The Agreement must be part of the Depository's "official record"
continuously since its execution.
a. Allowable Collateral
Eligible securities for collateralization of deposits are defined by the Public
Funds Collateral Act, as amended and meet the constraints of this Section III.
A. 2.
b. Collateral Levels
The market value of the principal portion of collateral pledged for certificates
of deposit must at all times be equal to or greater than the par value of the
certificate of deposit plus accrued interest, less the applicable level of FDIC
insurance.
Investment Policy Page 9 of 22
c. Monitoring Collateral Adequacy
PROSPER shall require monthly reports with market values of pledged
securities from all financial institutions with which PROSPER has
collateralized deposits. The Investment Officers will monitor adequacy of
collateralization levels to verify market values and total collateral positions.
d. Additional Collateral
If the collateral pledged for a deposit falls below the par value of the deposit,
plus accrued interest and less FDIC insurance, the institution holding the
deposit will be notified by the Investment Officers and will be required to
pledge additional securities no later than the end of the next succeeding
business day.
e. Security Substitution
Collateralized deposits often require substitution of securities. Any financial
institution requesting substitution must contact the Investment Officers for
approval and settlement. The substituted security's value will be calculated
and substitution approved if the substitution maintains a pledged value equal
to or greater than the required security level. An Investment Officer must
provide written notification of the decision to the bank or the safekeeping
agent holding the security prior to any security release. Substitution is
allowable for all transactions, but should be limited, if possible, to minimize
potential administrative problems and transfer expense. The Investment
Officers may limit substitution and assess appropriate fees if substitution
becomes excessive or abusive.
5. Safekeeping
a. Safekeeping Agreement
PROSPER shall contract with a bank or banks for the safekeeping of
securities either owned by PROSPER as a part of its investment portfolio or as
a part of its depository agreements.
b. Safekeeping of Deposit Collateral
All collateral securing bank deposits must be held by a third -party custodian
bank eligible under the Public Funds Collateral Act, and acceptable to and
under contract with PROSPER, or by a Federal Reserve Bank.
Investment Policy Page 10 of 22
C. Investment Advisors and Investment Providers
Investment Advisors shall adhere to the spirit, philosophy and specific terms of this
Policy and shall invest within the same "Standard of Care." Investment Providers
shall avoid recommending or suggesting transactions outside that "Standard of Care"
Selection of Investment Advisors and Investment Providers will be performed by the
Investment Officers. The Investment Officers will establish criteria to evaluate
Investment Advisors and Investment Providers, including:
• Adherence to PROSPER's policies and strategies,
• Investment performance and transaction pricing within accepted risk constraints,
• Responsiveness to PROSPER's request for services, information and open
communication,
• Understanding of the inherent fiduciary responsibility of investing public funds,
and
• Similarity in philosophy and strategy with PROSPER's objectives.
Selected Investment Advisors and Investment Providers shall provide timely
transaction confirmations and monthly activity reports.
Business organizations eligible to transact investment business with PROSPER shall
be presented a written copy of this Investment Policy. Additionally, the qualified
representative of the business organization offering to engage in an investment
transaction with an investing ENTITY shall execute a written instrument in a form
acceptable to the investing ENTITY and the business organization substantially to the
effect that the business organization has:
• Received and reviewed the investment policy of the ENTITY; and
• Acknowledged that the business organization has implemented reasonable
procedures and controls in an effort to preclude investment transactions conducted
between the ENTITY and the organization that are not authorized by the
ENTITY's investment policy, except to the extent that this authorization is
dependent on an analysis of the makeup of the ENTITY's entire portfolio or
requires an interpretation of subjective investment standards.
PROSPER shall not enter into an investment transaction with a business organization
prior to receiving the written instrument described above.
Investment Policy Page 11 of 22
In order to create a competitive pricing environment for each investment transaction,
PROSPER shall solicit quotations from multiple authorized investment providers.
D. SeIection of Investment Providers
The ENTITY's governing body shall, at least annually, review, revise, and adopt a
list of qualified Providers that are authorized to engage in investment transactions
with PROSPER.
E. Responsibility and Control
1. Authority to Invest
The Town Manager and the Finance/Business Manager are the "Investment
Officers" of the Town of Prosper. The PEDC Treasurer, PEDC Executive
Director and Town Finance/Business Manager are the "Investment Officers" of
the PEDC. The Investment Officers are authorized to deposit, withdraw, invest,
transfer, execute documentation, and otherwise manage PROSPER's funds
according to this Policy. The Investment Officers may authorize one Investment
Officer to deposit, withdraw or transfer funds out of or into an investment pool or
money market mutual fund in order to meet daily operating needs of PROSPER.
2. Prudent Investment Management
The designated Investment Officers shall perform their duties in accordance with
the adopted Investment Policy and internal procedures. In determining whether
an Investment Officer has exercised prudence with respect to an investment
decision, the investment of all funds over which the Investment Officer had
responsibility, rather than the prudence of a single investment shall be considered.
Investment Officers acting in good faith and in accordance with these policies and
procedures shall be relieved of personal liability.
3. Standard of Care
The standard of care used by PROSPER shall be the "prudent investor rule" and
shall be applied in the context of managing the overall portfolio within the
applicable legal constraints. The Public Funds Investment Act states:
"Investments shall be made with judgment and care, under
circumstances then prevailing, that a person of prudence, discretion
and intelligence would exercise in the management of the person's
own affairs, not for speculation, but for investment, considering the
probable safety of capital and the probable income to be derived."
Investment Policy Page 12 of 22
4. Standards of Ethics
The designated Investment Officers shall act as custodians of the public trust
avoiding any transactions which might involve a conflict of interest, the
appearance of a conflict of interest, or any activity which might otherwise
discourage public confidence. Investment Officers shall refrain from personal
business activity that could conflict with proper execution of the investment
program, or which could impair their ability to make impartial investment
decisions. Additionally, all Investment Officers shall file with the Texas Ethics
Commission and the ENTITY's governing body a statement disclosing any
personal business relationship with a business organization seeking to sell
investments to PROSPER or any relationship within the second degree by affinity
or consanguinity to an individual seeking to sell investments to PROSPER. For
purposes of this subsection, an Investment Officer has a personal business
relationship with business organization if:
a. the Investment Officer owns 10 percent or more of the voting stock or shares
of the business organization or owns $5,000 or more of the fair market value
of the business organization;
b. funds received by the Investment Officer from the business organization
exceed 10 percent of the Investment Officer's gross income for the previous
year; or
c. the Investment Officer has acquired from the business organization during the
previous year investments with a book value of $2,500 or more for the
personal account of the Investment Officer.
5. Establishment of Internal Controls
PROSPER's Investment Officers will maintain a system of internal controls over
the investment activities of PROSPER.
6. Reporting
Investment performance will be monitored and evaluated by the Investment
Officers. The Investment Officers will provide a quarterly comprehensive report
signed by all Investment Officers to the ENTITY's governing body. This
investment report shall:
a. describe in detail the investment position of PROSPER,
b. contain a summary statement, prepared in compliance with generally accepted
accounting principles, of each pooled fund group that states the:
Investment Policy Page 13 of 22
1. beginning market value of the reporting period;
2. additions and changes to the market values during the
period,
3. ending market value for the period; and
4. fully accrued interest for the reporting period;
c. state the book value and market value of each separately invested asset at the
beginning and end of the reporting period by the type of asset and fund type
invested;
d. state the maturity date of each separately invested asset that has a maturity
date;
e. state the account or fund or pooled group fund in the state agency or local
government for which each individual investment was acquired; and
f. state the compliance of the investment portfolio with PROSPER's Investment
Policy, strategy, and the Public Funds Investment Act.
In defining market value, sources independent of the investment provider will
determine valuations and consideration will be given to GASB Statement No. 31.
PROSPER, in conjunction with its annual financial audit, shall perform a
compliance audit of the management controls on investments and adherence to
PROSPER's Investment Policy. If PROSPER invests in other than money market
mutual funds, investment pools or accounts offered by its depository bank in the
form of certificates of deposits, or money market accounts or similar accounts, the
reports prepared by the Investment Officers shall be formally reviewed at least
annually by an independent auditor, and the result of the review shall be reported
to the ENTITY'S governing body by that auditor.
7. Training
In order to insure the quality and capability of PROSPER's investment personnel
making investment decisions, PROSPER shall provide periodic training in
investments for the investment personnel through courses and seminars offered by
GFOA, GFOAT, GTOT, TML, COG, ICMA, TSCPA, or AICPA.
a. The Investment Officers shall:
1. attend at least one training session relating to the Investment Officers'
responsibilities within 12 months after taking office or assuming duties:
and
Investment Policy Page 14 of 22
2. attend an investment training session not less than once in a two-year
period and receive not less than 10 hours of instruction relating to
investment responsibilities under this subchapter from an independent
source approved by the governing body of the local government or a
designated investment committee advising the investment officer as
provided for in the investment policy of the local government.
b. Training under this section must include education in investment controls,
security risks, strategy risks, market risks, and compliance with this chapter.
IV. INVESTMENT STRATEGY
In order to minimize risk of loss due to interest rate fluctuations, investment maturities
will not exceed the anticipated cash flow requirements of the fund. Investment guidelines
by fund -type are as follows:
A. Operating Funds
1. Suitability — Any investment eligible in the Investment Policy is suitable for the
Operating Funds.
2. Safety of Principal All investments shall be of high quality securities with no
perceived default risk. Market price fluctuations will however occur. By
managing the weighted average days to maturity for the Operating Fund portfolio
to less than 365 days and restricting the maximum allowable maturity to two
years, the price volatility of the overall portfolio will be minimized.
3. Marketability Securities with active and efficient secondary markets are
necessary in the event of an unanticipated cash requirement. Historical market
"spreads" between the bid and offer prices of a particular security -type of less
than a quarter of a percentage point shall define an efficient secondary market.
4. Liquidity The Operating Fund requires the greatest short-term liquidity of any
of the fund types. Short term investment pools and money market mutual funds
provide daily liquidity and may be utilized as a competitive yield alternative to
fixed maturity investments.
5. Diversification Investment maturities shall be staggered throughout the budget
cycle to provide cash flow based on the anticipated operating needs of PROSPER.
Market cycle risks will be reduced by diversifying the appropriate maturity
structure out through two years.
6. Yield — Attaining a competitive market yield for comparable security -types and
portfolio restrictions is the desired objective. The yield of an equally weighted,
rolling three-month Treasury bill portfolio shall be the minimum yield objective.
Investment Policy Page 15 of 22
B. Construction and Capital Improvement Funds
1. Suitability Any investment eligible in the Investment Policy is suitable for the
Construction and Capital Improvement Funds.
2. Safety of Principal All investments shall be of high quality securities with no
perceived default risk. Market price fluctuations will however occur. By
managing Construction and Capital Improvement Fund's portfolio to exceed the
anticipated expenditure schedule and restricting the maximum allowable maturity
to three years, the market risk of the overall portfolio will be minimized.
3. Marketability - Securities with active and efficient secondary markets are
necessary in the event of an unanticipated cash requirement. Historical market
"spreads" between the bid and offer prices of a particular security -type of less
than a quarter of a percentage point shall define an efficient secondary market.
4. Liquidity -- PROSPER funds used for construction and capital improvement
programs have reasonably predictable draw down schedules. Therefore
investment maturities shall generally follow the anticipated cash flow
requirements. Investment pools and money market mutual funds provide readily
available funds generally equal to one month's anticipated cash flow needs, or a
competitive yield alternative for short term fixed maturity investments.
5. Diversification Investment maturities shall be staggered throughout the budget
cycle to provide cash flow based on the anticipated operating needs of the
construction and capital improvement funds of PROSPER.
6. Yield -- Attaining a competitive market yield for comparable security -types and
portfolio restrictions is the desired objective. The yield of an equally weighted,
rolling three-month Treasury bill portfolio shall be the minimum yield objective.
C. Debt Service Funds
1. Suitability - Any investment eligible in the Investment Policy is suitable for the
Construction and Capital Improvement Funds.
2. Safety of Principal - All investments shall be of high quality securities with no
perceived default risk. Market price fluctuations will however occur. By
managing Debt Service Fund's portfolio to not exceed the debt service payment
schedule the market risk of the overall portfolio will be minimized.
3. Marketability - Securities with active and efficient secondary markets are not
necessary as the event of an unanticipated cash requirement is not probable.
4. Liquidity -- Debt Service have predictable payment schedules. Therefore
investment maturities shall not exceed the anticipated cash flow requirements.
Investment Policy Page 16 of 22
Investment pools and money market mutual funds may provide a competitive
yield alternative for short term fixed maturity investments.
5. Diversification - Investment maturities shall be staggered throughout the budget
cycle to provide cash flow based on the anticipated needs of the debt service
funds of PROSPER. At no time shall the debt service schedule be exceeded in an
attempt to bolster yield.
6. Yield Attaining a competitive market yield for comparable security -types and
portfolio restrictions is the desired objective. The yield of an equally weighted,
rolling three-month Treasury bill portfolio shall be the minimum yield objective.
D. Enterprise Funds
1. Suitability Any investment eligible in the Investment Policy is suitable for the
Construction and Capital Improvement Funds.
2. Safety of Principal All investments shall be of high quality securities with no
perceived default risk. Market price fluctuations will however occur. By
managing the weighted average days to maturity for the Enterprise Fund portfolio
to less than 365 days and restricting the maximum allowable maturity to two
years, the price volatility of the overall portfolio will be minimized.
3. Marketability Securities with active and efficient secondary markets are
necessary in the event of an unanticipated cash requirement. Historical market
"spreads" between the bid and offer prices of a particular security -type of less
than a quarter of a percentage point shall define an efficient secondary market.
4. Liquidity The Enterprise Fund requires short-term liquidity. Short-term
investment pools and money market mutual funds provide daily liquidity and may
be utilized as a competitive yield alternative to fixed maturity investments.
5. Diversification Investment maturities shall be staggered throughout the budget
cycle to provide cash flow based on the anticipated operating needs of PROSPER.
Market cycle risk will be reduced by diversifying the appropriate maturity
structure out through two years
6. Yield -- Attaining a competitive market yield for comparable security -types and
portfolio restrictions is the desired objective. The yield of an equally weighted,
rolling three-month Treasury bill portfolio shall be the minimum yield objective.
Investment Policy Page 17 of 22
Appendix "A"
Glossary of Cash Management Terms
Accretion Common investment accounting entry in which the book value of securities
purchased at a discount are gradually written up to the par value. The process has the effect of
recording the discount as income over time.
Accrued Interest Interest earned, but not yet paid, on a bond.
Agency - See Federal Agency.
Amortization - Common investment accounting entry in which the book value of securities
equal to 1100 of 1 percent of yield; e.g., "1/4" of 1 percent is equal to 25 basis points.
Arbitrage -- Dealing simultaneously in the same product in two markets to take advantage of
temporary price distortions at minimal risk
Basis Point A unit of measurement used in the valuation of fixed -income securities equal to
1100 of 1 percent of yield; e.g., "1 4" of 1 percent is equal to 25 basis points.
Benchmark - Index used to compare risk and performance to a managed portfolio.
Bid -- The indicated price at which a buyer is willing to purchase a security or commodity.
Book Value - The original acquisition cost of an investment plus or minus the accrued
amortization or accretion.
Broker A financial firm that brings securities buyers and sellers together in return for a fee.
The term "broker" is often used interchangeably with "dealer" to refer to a seller of investment
securities.
Callable Bond - A bond issue in which all or part of its outstanding principal amount may be
redeemed before maturity by the issuer under specified conditions.
Cash Settlement - A transaction which calls for delivery and payment of securities on the same
day that the transaction is initiated.
Collateralization Process by which a borrower pledges securities, property, or other deposits
for the purpose of securing the repayment of a loan and/or security.
Collateralized Mortgage Obligation (CMO) A derivative mortgage -backed security (MBS)
created from pools of home mortgage loans. A single MBS is divided into multiple classes, each
class containing unique risk profile and security characteristics. A number of CMO classes are
expressly prohibited by Texas State law.
Investment Policy Page 18 of 22
Commercial Paper -- An unsecured short-term promissory note issued by corporations, with
maturities ranging from 1 to 270 days. Commercial paper must carry a minimum rating of A1P1
in order to be eligible under the Texas Public Funds Investment Act.
Constant Maturity Treasury (CMT) - A calculated average released by the Federal Reserve of
all Treasury yields along a specific maturity point. This calculation is frequently used as a
benchmark for conservative government portfolios.
Coupon Rate -- The annual rate of interest received by an investor from the issuer of certain
types of fixed -income securities. Also known as the "interest rate."
Credit Risk The risk to an investor that an issuer will default in the payment of interest and/or
principal on a security.
Derivative Financial instruments whose value is derived from the movement of an underlying
index or security.
Dealer A dealer, as opposed to a broker, sets as a principal in all securities transactions, buying
and selling for their own account. Often times, the terms "broker" and "dealer" are used
interchangeably to refer to a seller of investments securities.
Delivery Versus Payment (DVP) - A type of securities transaction in which the purchaser pays
for securities at the time of delivery either to the purchaser or his/her custodian.
Derivative Security Financial instrument created from, or whose value depends upon, one or
more underlying assets or indices of asset values.
Discount - The amount by which the par value of a security exceeds the price paid for the
security.
Diversification A process of investing assets among a range of security types by sector,
maturity, and quality rating.
Dollar Weighted Average Maturity (WAM) - The average maturity of all the securities that
comprise a portfolio.
Fair Market Rate A documented and verifiable rate of interest which approximates the
average rate which could have been earned on similar investments at the time of the transaction.
Federal Agency - A debt instrument that carries a rating of AAA because it is government
sponsored.
Federal Deposit Insurance Corporation (FDIC) - A federal agency that insures bank deposits,
currently up to $100,000 per account. Public deposits that exceed this amount must be properly
collateralized with investment securities or insured through a surety bond.
Investment Policy Page 19 of 22
Interest Rate - See "Coupon Rate."
Internal Controls An internal control structure designed to ensure that the assets of the entity
are protected from loss, theft, or misuse. The internal control structure is designed to provide
reasonable assurance that these objectives are met.
Interlocal Cooperation Act -- Law permitting joint participation by local governments
providing one or more government functions within the State. This law [Section 891.001 et seq.
of the Texas Government Code (the "Act")] has allowed for the creation of investment pools in
Texas.
Investment Advisors Act of 1949 - Law which requires all Investment Advisors to be
registered with the SEC in order to protect the public from fraud.
Investment Policy A concise and clear statement of the objectives and parameters formulated
by an investor or investment manager for a portfolio of investment securities. The Texas Public
Funds Investment Act requires that public entities have a written and approved investment
policy.
Investment Pool An entity created under the Interlocal Cooperation Act to invest public funds
jointly on behalf of the entities that participate in the pool.
Liquidity A liquid investment is one that can be easily and quickly converted to cash without
substantial loss of value. Investment pools and money market funds, which allow for same day
withdrawal of cash, are considered extremely liquid.
Local Government Investment Pool (LGIP) --- An investment by local governments in which
their money is pooled as a method for managing local funds.
Market Risk - The risk that the value of a security will rise or decline as a result of changes in
market conditions.
Market Value A security's par amount multiplied by its market price.
Master Repurchase Agreement -- A written contract covering all future transactions between
the two parties to a repurchase agreement.
Maturity - The date on which payment of a financial obligation is due. The final stated
maturity is the date on which the issuer must retire a bond and pay the face value to the
bondholder. See "Weighted Average Maturity."
Money Market Mutual Fund - Mutual funds that invest solely in money market instruments
(short term debt instruments, such as Treasury bills, commercial paper, bankers' acceptance,
repos and federal funds).
Investment Policy Page 20 of 22
Mortgage -Backed Security (MBS) Security backed by pools of home loan mortgages.
National Association of Securities Dealers (NASD) A self -regulatory organization (SRO) of
brokers and dealers in the over-the-counter securities business. Its regulatory mandate includes
authority over firms that distribute mutual fund shares as well as other securities.
Net Asset Value (NAV) -• The value of a mutual fund or investment pool at the end of the
business day. NAV is calculated by adding the market value of all securities in a fund or pool,
deducting expenses, and dividing by the number of shares in the fund or pool.
Offer An indicated price at which market participants are willing to sell a security. Also
referred to as the "Ask Price"
Par - Face value or principal value of a bond, typically $1,000 per bond. A security's par value
is multiplied by its coupon rate to determine coupon payment amount.
Premium - The amount by which the price paid for a security exceeds the security's par value.
Primary Government Securities Dealer (Primary Dealer) One of 21 (as of 4/2003) large
government securities dealers who are required to submit daily reports of market activity and
monthly financial statements to the New York Federal Reserve Bank. Primary Dealers are
required to continually "make a market" in Treasury securities, buying or selling when asked,
thereby creating a liquid secondary market for US debt obligations.
Principal The face value or par value of a debt instrument. Also may refer to the amount of
capital invested in a given security.
Prudent Person Rule An investment standard outlining the fiduciary responsibilities of public
funds investors relating to investment practices.
Regular Way Delivery - Securities settlement that calls for delivery and payment on the third
business day following the trade date (T + 3); payment on a T + 1 basis is currently under
consideration. Mutual funds are settled on a same day basis; government securities are settled on
the next business day.
Repurchase Agreement (repo or RP) - An agreement of one party to sell securities at a
specified price to a second party and a simultaneous agreement of the first party to repurchase
the securities at a specified price or at a specified later date.
Reverse Repurchase Agreement (Reverse Repo) An agreement of one party to purchase
securities at a specified price from a second party and a simultaneous agreement by the first party
to resell the securities at a specified price to the second party on demand or at a specified date.
Safekeeping - Holding of assets (e.g., securities) by a financial institution.
Investment policy Page 21 of 22
Total Return -- The sum of all investment income plus changes I the capital value of the
portfolio. For mutual funds, return on an investment is composed of share price appreciation
plus any realized dividends or capital gains. This is calculated by taking the following
components during a certain time period: (Price Appreciation) + (Dividends Paid) + (Capital
Gains) == (Total Return).
Treasury Bills - Short term U.S. government non -interest bearing debt securities with maturities
of no longer than one year and issued in minimum denominations of $10,000. Auctions of three -
and six-month bills are weekly, while auctions of one-year bills are monthly. The yields on these
bills are monitored closely in the money markets for signs of interest rate trends.
Treasury Notes Intermediate U.S. government debt securities with maturities of one to 10
years and issued in denominations ranging from $1,000 to $1 million or more.
Uniform Net Capital Rule SEC Rule 150-1 outlining capital requirements for
brokers/dealers.
Volatility A degree of fluctuation in the price and valuation of securities.
Yield - The current rate of return on an investment security generally expressed as a percentage
of the security's current price.
Yield -to -Call (YTC) The rate of return an investor earns from a bond assuming the bond is
redeemed (called) prior to its nominal maturity date.
Yield Curve -- A graphic representation that depicts the relationship at a given point in time
between yields and maturity for bonds that are identical in every way except maturity. A normal
yield curve may be alternatively referred to as a positive yield curve.
Yield -to -Maturity - The rate of return yielded by a debt security held to maturity when both
interest payments and the investor's potential capital gain or loss are included in the calculation
of return.
Zero -coupon Securities Security that is issued at a discount and makes no periodic interest► ------ Formatted: Normal, Justified, No
payments. The rate of return consist of a gradual accretion of the principal of the security and is widow/orphan control
payable at par upon maturity., ______ ---- Formatted: Font: Times New Roman, 12 pt
Investment Policy Page 22 of 22
RESOLUTION NO.
A RESOLUTION OF THE PROSPER TOWN COUNCIL REVIEWING, UPDATING
AND ADOPTING PROSPER INVESTMENT POLICY
WHEREAS, Section 2256.005(e) of the Public Funds Investment Act (the "Act") states
that the governing body of an investing entity shall review its investment policy and investment
strategies not less than annually; and
WHEREAS, the governing body shall adopt a written instrument by rule, order, ordinance, or
resolution stating that it has reviewed the investment policy and investment strategies: and
WHEREAS, the Act requires the written instrument so adopted shall record any changes made to
either the investment policy or investment strategies.
NOW, THEREFORE, BE IT RESOLVED BY THE PROSPER TOWN COUNCIL:
SECTION 1.
The Prosper Town Council hereby has reviewed the Town's Investment Policy and investment
strategies and adopts the Investment Policy dated February 20, 2008, attached hereto.
SECTION 2.
The Prosper Town Council hereby has reviewed the changes to the Investment Policy dated
February 20, 2008 and accepts the changes listed below:
1. CMO's was deleted from the list of authorized investments on page 6,
2. Reference to Savings & Loans deleted,
3. The word "domiciled" changed to "doing business", and
4. Town Administrator changed to Town Manager.
SECTION 3.
This Resolution shall be effective immediately upon adoption.
PROSPER TOWN COUNCIL
LIN
ATTEST:
By:
Matthew Denton, TRMC
Town Secretary
Charges Niswanger, Mayor
f
�o
P TOWN
SPER.
To: Mayor and Town Council
From: Ron Butler, Finance/Business Manager
Cc: Mike Land, Town Manager
Administration
Re: Prosper Town Council Meeting — February 26, 2008
Date: February 20, 2008
Agenda Item:
Consider and act upon a resolution for the Town of Prosper to accept the Town's 2006-2007
fiscal year financial audit as presented by Pingleton, Howard & Company, P.C., Certified Public
Accountants on January 22, 2008.
Description of Agenda Item:
Tom Pingleton presented the Town's annual audit for fiscal year 2006-2007 to Town Council on
January 22, 2008
Following the end of the Town's 2006-2007 fiscal year, Town staff forwarded information to
Pingleton, Howard & Company, P.C. to conduct a financial audit. In the attached report
Pingleton, Howard & Company, P.C. reports that their review is conducted in accordance with
auditing standards generally accepted in the United States of America and that they plan and
perform the audit to obtain reasonable assurance about whether the financial statements are
free of material misstatements. They noted that the financial statements present fairly, in all
material respects, the respective financial position of the governmental activities, the business -
type activities, and the component units, each major fund and the aggregate remaining fund
information for the Town of Prosper as of September 30, 2007 was in conformity with
accounting principles generally accepted in the United States of America. Also noted was that
transactions entered into by the Town of Prosper during the year were both significant and
unusual or would require their Company, under professional standards, to report such to the
Town of Prosper.
The Fiscal Yearend audit for 06-07 took less time this year that previous year due to the
improvement in the operation of the accounting system. The auditors recommended that cash
drawers assigned to town personnel be reconciled on a daily basis and reporting any material
shortages, in writing, immediately to their department supervisor. It was also recommended that
the Town Manager approve any expenditure over $5,000 that takes place during the last thirty
days of the fiscal year.
Item No. 4f Page 1 of 1
Revenues and expenditures are currently being reported to the Town Council on a monthly
basis as the Financial Statements. Reporting on the "full and modified" accrual basis is
currently being adhered to in the applicable funds. Very few adjusting entries were required by
the auditor for FY 06-07. Those that were made are the normal adjusting entries made to
perform accruals of certain items and recording of depreciation and capital assets. The Towns
total net assets increased by $5,587,996 and the general funds unreserved fund balance is 83.3
percent of the total general fund expenditures. Water & Sewer revenues decreased $133,433
mainly due to above average summer rain resulting in less water demand. Bonded debt
decreased by $646,103 and capital assets increased by $9,017,797. The Town of Prosper has
assets exceeding liabilities by $18,607,311 at the close of fiscal year 06-07. Over time,
increases or decreases in the net assets may serve as a useful indicator of whether the financial
position of the Town is improving or deteriorating. The Towns financial position is very good.
The Town bond rating is currently A3.
The Town staff continues to strive for improvements in its accounting/billing systems, reporting
and seek ways to become cost efficient in its operations.
Budaet Impact:
N/A.
Leaal Obliaations and Review:
Section 103.001 of the Texas Local Government Code requires municipalities to have its
records and accounts audited annually and to have a financial statement prepared based on the
audit. The Code further requires the annual financial statement to be filed in the Town
Secretary's office within 120 days after the last day of the municipality's fiscal year. The
financial statements and auditor's report have been filed in the Town Secretary's office prior to
the 120th day after September 30, the last day of the Town's fiscal year.
Attached Documents:
Fiscal year audit ending September 30, 2007.
Board. Committee and/or Staff Recommendation:
Town staff recommends that the Town Council approve the resolution accepting the 2006-2007
financial audit ending September 30, 2007 as presented by auditing firm.
Item No. 4f Page 1 of 1
TOWN OF PROSPER, TEXAS
RESOLUTION NO.08-xxx
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF
PROSPER, TEXAS, HEREBY ACCEPTING THE TOWN'S 2006-2007
FISCAL YEAR FINANCIAL AUDIT AS PRESENTED BY PINGLETON,
HOWARD & COMPANY, P.C., CERTIFIED PUBLIC ACCOUNTANTS
ON JANUARY 22, 2008.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN
OF PROSPER, TEXAS:
SECTION 1: The Town Council of the Town of Prosper, Texas, hereby accepts the
Town's 2006-2007 fiscal year financial audit as presented by Pingleton, Howard & Company,
P.C., Certified Public Accountants on January 22, 2008.
SECTION 2: This Resolution shall take effect immediately upon its passage.
RESOLVED THIS THE 26`h day of February, 2008.
Charles Niswanger, Mayor
ATTEST TO:
Matthew Denton, TRMC
Town Secretary
ISPER
ADMINISTRATION
OWN OF
To: Mayor and Town Council
From: Mike Land, Town Manager
Cc:
Re: Atmos Energy Corp.
Agenda Item:
Consider and act upon an ordinance approving a settlement agreement between the Atmos Cities
Steering Committee and Atmos Energy Corp. regarding the company's statement of intent to
change gas rates.
Description of Agenda Item:
The following information was taken from the model staff report provided by ACSC Attorneys.
The Town, along with 150 other cities served by Atmos Energy Mid -Tex Division ("Atmos" or
"Company"), is a member of the Atmos Cities Steering Committee ("ACSC"). Since October,
ACSC members have worked diligently with Atmos representatives to explore options to address
Atmos' latest request to increase rates by $52 million and to resolve other outstanding issues. The
ordinance and tariffs (Attachment B to the Ordinance) reflect the agreement reached between
ACSC and Atmos Mid -Tex to reduce Atmos' requested increase by more than 80 percent and
ensure that the Company is able to provide safe and reliable natural gas service. The Settlement
Agreement (Attachment A to the Ordinance) also provides rate certainty for customers by
resolving outstanding appeals, creates a new process for expedited rate review by the cities,
eliminates piecemeal ratemaking, reimburses ACSC for rate case expenses associated with the
GRIP surcharge cases, and avoids the necessity of costly litigation. The ACSC Executive
Committee recommends that ACSC members approve the Settlement Agreement.
Purpose of the Ordinance:
The purpose of the Ordinance is to endorse the Settlement Agreement between ACSC and Atmos
regarding the Company's Statement of Intent to increase rates and to approve tariffs that
implement the terms of the Settlement Agreement.
Approval of the Ordinance will result in a $10 million increase in Atmos' revenues. This is an 80
percent reduction of the $52 million increase requested by Atmos in its Statement of Intent. In
addition, the tariffs approved by the Ordinance will replace the current piecemeal ratemaking
GRIP surcharge system with an expedited rate review process that ensures that cities can review
Item No. 4g Page 1 of 1
all components of future Company rate change requests. The Settlement Agreement also
resolves all outstanding issues between ACSC and Atmos, including six appeals currently
pending in Texas courts.
Procedural History and Background on Atmos Rate Increases Since 2004:
On September 20, 2007, Atmos filed with the City the Company's Statement of Intent to increase
natural gas rates system -wide by approximately $52 million. The City suspended the October
25`h Effective Date to work with other ACSC members to analyze the schedules and evidence
offered by Atmos to support its request to increase rates. In order to facilitate approval of this
Ordinance and the attached tariffs, Atmos Mid -Tex has agreed to extend the deadline for final
city action until March 1, 2008.
Atmos' rate request represents the seventh increase in natural gas rates for customers in the
Atmos Mid -Tex service area since 2004. Four rate increases are the result of Gas Reliability
Infrastructure Program (GRIP) surcharges enacted pursuant to the Texas Utilities Code
§ 104.301. A primary complaint of cities around the state regarding GRIP filings is that it is
piecemeal ratemaking and only looks at changes in the utility's invested capital, rather than a
more comprehensive review of all components affecting rates charged. Cities thus far have been
unsuccessful in defeating GRIP at the Legislature and in court.
In addition to the four GRIP surcharges, base rates charged to customers served by Atmos Mid -
Tex have increased as the result of two system -wide cost of service rate filings since 2004. The
Company's current request to increase base rates would be the third system -wide cost of service
increase for customers in Atmos Mid-Tex's service area since 2004.
In the most recent cost of service rate request, GUD No. 9670, the Railroad Commission of
Texas ("RRC" or "Commission") issued an order in March, 2007, approving new system -wide
rates for customers of Atmos Mid -Tex. Residential customers were impacted disproportionally
by the Commission's final order, with residential rates increasing by $10 million annually,
despite an overall system -wide rate increase of $5 million.
System -wide rates charged to residential customers in the Atmos Mid -Tex region were also
increased by several million dollars in 2004 in GUD No. 9400. In GUD Nos. 9400 and 9670, the
hearings examiners that heard the testimony and evaluated the evidence recommended that rates
be reduced for customers. However, in both cases, the Railroad Commission reversed key
decisions of its own hearings examiners, ultimately issuing final orders that approved rate
increases instead of the recommended rate reductions.
Reasons Justifying ing Settlement:
During the time that the City has retained original jurisdiction in this case, consultants working
on behalf of ACSC members have investigated the support for the Company's requested rate
increase. While the evidence does not support the $52 million increase requested by the
Company, ACSC consultants agree that the Company can justify an increase in revenues of at
least $8 million and that there is a reasonably high probability that the RRC would award an
increase of at least $10 million.
A contested case proceeding before the RRC on the Company's current application will take
several months and cost ratepayers millions of dollars in rate case expenses and would not likely
produce a request more favorable than that to be produced by the settlement. The ACSC
Executive Committee recommends that ACSC members take action to approve the Settlement
Agreement. This Settlement Agreement achieves several desirable outcomes, including:
Item No. 4g Page 1 of 1
• Reverses rate design decisions that unfairly impact residential ratepayers
• Does away with piecemeal ratemaking problems inherent to the GRIP surcharge process
• Eliminates exposure to potential court reversal of the multi -million dollar Poly-1 Pipe
disallowance (Atmos' issue on appeal in Docket No. 9400)
• Avoids uncertainty and potential negative consequences of Railroad Commission rate
review (in the two most recent rate cases affecting Atmos Mid -Tex customers, the
Commission has reversed rate reductions recommended by its own hearings examiners in
favor of rate increases)
• Implements an expedited rate review process that includes the cities and allows review of
all aspects of Atmos' cost of service
• Requires Atmos to reimburse ACSC for more than $500,000 paid to litigate GRIP
surcharge cases
• Protects ACSC members and their citizens from the remote possibility that a litigated
outcome or settlement with other parties produces a result more favorable than the
ordinance passed by ACSC members by including a Most Favored Nations provision in
the Settlement Agreement.
Explanation of "Be It Ordained" Paragraphs:
1. This paragraph approves all findings in the ordinance.
2. This section adopts the Settlement Agreement in all respects and finds it to be
just, reasonable and in the public interest.
3. This section adopts the attached Tariffs in all respects and finds the rates set
pursuant to the attached Tariffs to be just, reasonable and in the public interest.
Note that only new tariffs or existing tariffs that are being revised are attached to
the Ordinance. Existing tariffs that are not being changed in any way are not
attached to the Ordinance.
4. This section repeals any resolution or ordinance that is inconsistent with this
Ordinance.
5. This section finds that the meeting was conducted in compliance with the Texas
Open Meetings Act, Texas Government Code, Chapter 551.
6. This section is a savings clause, which provides that if any section(s) is later
found to be unconstitutional or invalid, that finding shall not affect, impair or
invalidate the remaining provisions of this Ordinance. This section further directs
that the remaining provisions of the Ordinance are to be interpreted as if the
offending section or clause never existed.
Item No. 4g Page 1 of 1
7. This section is a "Most Favored Nations" clause, which protects the City by
mandating that if a Final Order or subsequent settlement agreement approved in
any proceeding addressing the issues raised in Atmos' Statement of Intent filing
result in rates, revenues, terms and conditions, or benefits that would be more
beneficial to the ACSC Cities than the terms of this Settlement Agreement, the
City may, at its option, implement and benefit from such more favorable rates,
revenues, terms and conditions, or benefits shall additionally accrue to the ACSC
Cities. However, the section makes it clear that application of the Most Favored
Nations provision does not affect the approval of the Rider RRM, Rider CEE,
Rider GCR and the Rider WNA, which shall continue according to their terms.
8. This section provides for an effective date upon passage.
9. This paragraph directs that a copy of the signed resolution be sent to a
representative of the Company and legal counsel for ACSC.
Budeet Impact•
N/A
Legal Obligations and Review:
Legal has reviewed the proposed Code of Ethics ordinance.
Attached Documents:
Memos Atmos Steering Committee Members
Proposed Ordinance
Board, Committee and/or Staff Recommendation:
Town staff recommends the Town Council approved the ordinance approving a settlement
agreement between the Atmos Cities Steering Committee and Atmos Energy Corp. regarding the
company's statement of intent to change gas rates..
Item No. 4g Page 1 of 1
1 mmmmr��F"O,
CL
91
1 h, ', -.;
;ISPER
OWN OF December, 2007
FINANCIAL REPORTING TABLE OF CONTENTS
1. INTRODUCTION
2. FINANCIAL OVERVIEW
CASH OVERVIEW SUMMARY
COMBINED REVENUE & EXPENDITURE SUMMARY
SUMMARY BY FUND
3. CASH BALANCES AND GRAPHS
BANK BALANCES
TEXPOOL BALANCE
4. PROPERTY TAX REPORT AND GRAPHS
PROPERTY TAX REPORT
THREE YEAR PROPERTY TAX COMPARISON
5. SALES TAX AND GRAPHS
TOTAL SALES TAX COLLECTED
PROSPER SALES TAX ALLOCATION
PEDC SALES TAX ALLOCATION
6. CAPITAL PROJECT BONDS
2004 BOND
2006 BOND
Individual Department Summaries available upon request
Regular Meeting
Prosper Town Council
February 26, 2008 6:00 p.m.
To: Mayor, Town Council, and Town Manager
From: Ron Butler, Finance ! Business Manager
Re: February, 2007 Financial Reports
The Financial Report on the Town of Prosper for the month of January, 2007 is a reporting of the cash,
taxes, revenues, and expenditures in summary and by department. The 2004 and 2006 Bond summaries
have been added to the condensed financials for your review.
The Financial reporting format provides information to the council and the departments that reflect the
operation of the Town and the departments on a monthly and year-to-date basis. Visual graphics, current
month operation information, and percentages have been added to help further understand the information
provided.
The format of the Financials will be changing in the near future to provide additional information and
usefulness as a management tool for Town Management and Council. Future changes will include a
column for a forecasted monthly budget and a variance column for the month. In addition to the
changes and to save on copy costs, only the revenue and expense summaries are provided for
review. Individual department summaries are available at Town Hall upon request for review.
The yearend audit for FY 2006-2007 was presented to the council by Tom Pingleton, CPA, at the January
22ad council meeting. He stated that the General Fund and the Water Fund both finished in the black and
the Town was in a healthy financial position and that the accounting and financial reporting has had a
tremendous change in the last three years thus eliminating the need for the amount of adjusting entries
required to be done by the audit firm.
At the end of January, 2008 revenues are exceeding expenditures in both the General Fund and the Water
Fund. The financial report for January, 2008 indicates that revenues for both the General Fund and the
Water Fund are exceeding forecasted revenue projections of 33% (based on 4 of 12 months).
Expenditures for both funds are below average projections. Total cash in the bank at the Town's local
bank, for all funds, is $1.2 million and the government pools, TexPool and TexStar, has a total of $23.2
million for all funds. The total cash for restricted funds is $16.9 million. The General Fund property tax
revenues for the current fiscal year have increased as expected. Property tax collected as of January 31,
2008 is 72.63% of total levied for current year. Sales tax revenues still continue to go down in comparison
to previous years. With the housing industry taking a down turn at present time and with the threat
of recession, the Town will continue to see a decline in sales tax revenue. As new retail business
begins to come into Prosper, the sales tax generated by these businesses will help to offset the declining
sales tax loss from the building industry. CVS Pharmacy is expected to be operational about March, 2008
and sales tax should show a slight increase as the year progresses. Other small businesses are expected to
come into Town within the next 3 to 6 months and should also help the sales tax situation.
Your comments and suggestions are welcome so that the Finance section can generate reports that are
meaningful and will assist you in your decision making for the Town.
pri4TOWN OF
SPER
FINANCIAL SUMMARY
Financial Overview
CASH OVERVIEW SUMMARY
COMBINED REVENUE & EXPENDITURE SUMMARY
SUMMARY BY FUND
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priOWN OF
SPER
FINANCIAL SUMMARY
CASH BALANCES & GRAPHS
BANK BALANCES
TEXPOOL / TEXSTAR BALANCE
TEXPOOL / TEXSTAR FUND DISTRIBUTION
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Town of Prosper
TexPool / TuSter Diebibutlon
FY 2007/2M
� �4,�81485
°°"r�rpa•nFd.rsw�°r+��¢srdra°'r�r�°ssand.'rs.�t°�+�a"rs�°'G�
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Bank Accounts - Sal
Sheet
TexPool / TexStar Agcount-Bal
Sheet
General Fd
412,644
Gen Fd TP
2,712,120
Water Fd
238,742
Gen Fd TS
730,408
1 & S Fd
386,294
Water Fd TP
3,321,043
2001 Bond
3,452
1 & S Fd TP
1,496,038
Saddle Ck
1,527
04 Bond TP
1,664,000
Spec Rev
70,311
06 Bond TS
8,286,483
Im Fees-TF
16,100
Parks TS-Ded
630,846
Im Fees -Water
7,160
ParksTS4mp
693,394
Im Fees -Sewer
3,645
Escrow TS
813,116
Parks-Ded
32,380
EDC TP
589,804
Parks -imp
43,235
EDC TS
667,473
2004 Bond
4,871
Im Fee TS-TF
1,065,717
Escrow
1,392
Im Fee TS-Water
1,192,577
EDC
57,632
Im Fee TS-Sewer
518,067
Total Banks
1,279,384
Total Govt Pools
24,381,085
PIOWN OF
SPER
FINANCIAL SUMMARY
PROPERTY TAX REPORT & GRAPHS
PROPERTY TAX REPORT
THREE (3) YEAR PROPERTY TAX COMPARISON
4
TOWN OF PROSPER
PROPERTY TAX COLLECTIONS REPORT
Jan-08
TAX
YEAR
BEGINNING
BALANCE
I COLLECTIONS
CHANGES
;/-
ENDING
BALANCE
I TAXES Pal TOTAL
2007
4,088,818.74
3,058,130.98
-
3,058.130.98
118.973.80
1,149,661.56
2006
49,013.71
19,322.00
3,117.55
22,439.55
23,199.43
52,891.14
2005
7,177.41
388.86
149.67
538.53
0.50
6,789.05
2004
1,009.67
35.99
35 99
35.99
1,009.67
2003
443.20
-
443.20
2002
601.86
-
601.86
2001
360.72
-
360.72
2000
96.42
-
96.42
1999
37.08
-
37.08
1998
23.27
-
23.27
1997
31.47
-
31.47
1996
28.64
-
28.64
1995
25.94
-
25.94
1994
102.12
-
102.12
1993
140.81
-
140.81
1992
284.34
-
284.34
1991
227.18
-
227.18
OTALS
4,148,422.58
3,077.805.85
3,267.22
3,081,073.07
142,137.74
1,212,754.47
CURRENT LEVY
LEVY Q 10/01/07 .
4,088,818.74
ADJUSTMENTS
118,973.
TOTAL LEVY @ 01/31/08
4,207,792.
COLLECTED TO DATE
3,058,130.9
UNCOLLECTED TO DATE
1.149,661.56
% OF LEVY COLLECTED BEF. ADJ
74.79%
% OF LEVY COLLECTED INCL.. ADJ
72.68
J,U01,U /S.U/ 1,212,754.41
VAWATION
AXABLE PROPERTY @ 10101/07: 1,
RANGES TO ROLL (+/-) :
22,879,57'
ARABLE PROPERTY @ 01/31/08
1,488,745,5,C
Entry changes with each months activity.
ELINQUENT LEVY
LEVY @ 10/01/07 :
10,590.13
ADJUSTMENTS
(35 49;
TOTAL LEVY @
10,554.64
COLLECTED TO DATE
352.87
UNCOLLECTED TO DATE
10,201 77
OF LEVY BE( F ADJ I COLLECTED
UTSTANDING CURRENT LEVY
Tax Rate
Levy
Less Collected
Outstanding
perattons (53%) 0.275075%
2,225,881.79
1,617,722.38
608,159.41
ibtServlce(47%) 0.244925%
1,981,910.75
1,440,408.60
541,502.1
- 0.520000%
4,207,792.54
3,058,130.98
1.149,661.56
0.63
0.47
PROPERTY TAX COLLECTIONS
THREE (3) YEAR COMPARISON
FOR PEAK COLLECTION MONTHS
Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept
% of Total
% of Total
% Of Total
Month
FY 05/0
Collected
FY 06107
Collected
Month
07108 Cglleded
Oct
$ 1,187.18
0.08%
$
29,457.50
1.77%
Oct
$ 60,747.84 1.22%
Nov
$ 51,306.76
3.26%
$
70,460.97
4.22%
Nov
$ 279,601.69 6.74%
Dec
$ 665,598.53
42.34%
$
906,001.34
54.29%
Dec
$ 1,492,718.39 36.98%
Jan
$ 423,246.34
26.92%
$
876,903.32
52.55%
Jan
$ 1,258,105.15 30.33%
Feb
$ 387,560.32
24.66%
$
744,527.90
44.62%
Feb
Mar
$ 34,578.18
2.20%
$
114,929.76
6.89%
Mar
Apr
$ 28,827.86
1.83%
$
46,745.77
2.80%
Apr
May
$ 17,896.93
1.14%
$
43,138.91
2.59%
May
June
$ 26,630.43
1.69%
$
35,827.45
2.15%
June
July
$ 23,375.92
1.49%
$
70,078.70
4.20%
July
Aug
$ 7,195.32
0.46%
$
36,247.22
2.17%
Aug
Sept
$ 6,076.11
0.39%
$
13,684.32
0.82%
Sept
YTD Totals $ 1,673,479.88 106.46% $ 2,988,003.16 179.05% $ 3,081,073.07 74.27% Collected YTD
$ 4,148,422.58 Total taxes due
includes delinquent
T
OWN OF
FINANCIAL SUMMARY
SALES TAX & GRAPHS
TOTAL SALES TAX COLLECTED
PROSPER SALES TAX ALLOCATION
PEDC SALES TAX ALLOCATION
5
THREE (3) YEAR SALES TAX COMPARISON
TOTAL COLLECTIONS
TOWN OF PROSPER, TEXAS
$210,000
$200,000
-
$190,000 t
$180,000
$1470,000 i-
0,60,000
MAL *-WOO
$150,000
$140,000
$130,000
$120,000
$110,000 �-
$100,000
$90,000
I
$80,000
$70,000
$60,000
$50,000
$40,000
_-
$30,000
$20,000
_
$10,000
—�
Oct
Nov Dec Jan Feb Mar Apr May June July Aug Sept
-+- FY 05= --*-FY 06107 FY 07108
ti -
.. -ii 7--T-7-Twousi.1.
Month
FY 05/06
FY 06/07
Oct
$
196,881.25
$
166,712.63
Nov
$
170,412.36
$
141,697.21
Dec
$
167,516.79
$
116,018.11
Jan
$
160,464.80
$
146,262.04
Feb
$
165,611.73
$
119,028.30
Mar
$
140,085.12
$
124,929,81
Apr
$
196,971.39
$
96,866.94
May
$
180,523.03
$
196,793.13
June
$
166,563.38
$
129,919,29
July
$
178,924.32
$
126,538.37
Aug
$
130,518.50
$
119,679.50
Sept
$
154,215.18
$
122,140.90
Totals $2,008,687.85 $1,606,586.23
$ Amount
% of Change
FY 07/08
IncDec
Inc /(Dec)
$
124,885.22
$
(41,827.41)
-25.09%
$
106,473.48
$
(35,223,73)
-24.86%
$
105,454.73
$
(10,563.38)
-9.10%
$
108,657.68
$
(37,604.36)
-25.71 %
$ 445,471.11 $ (125,218.88)-21.94%
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
THREE (3) YEARS SALES TAX COMPARISON
TOWNS SHARE OF SALES TAX
PROSPER, TEXAS
Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept
FY OSM FY OW7 FY OWN
�
Town Share
own are
Month
FY 05(06
FY 06/07
Oct
$
147,660.94
$
125,034.47
Nov
$
127,809.27
$
106,272.91
Dec
$
125,637.59
$
87,013.58
Jan
$
120,348.60
$
109,696.53
Feb
$
124,208.80
$
89,271.23
Mar
$
105,063.84
$
93,697.36
Apr
$
147,728.54
$
72,650.21
May
$
135,392.27
$
147,594.85
June
$
124,922.54
$
97,439.47
July
$
134,193.24
$
94,903.78
Aug
$
97,888.88
$
89,759.63
Sept
$
115,661.39
$
91,605.67
YTDTotals $ 1,506,515.90 $ 1,204,939.69
Jan. Budgeted: $ 102,600.00 for month of January, 2008
Jan. Received: $ 81,493.26
$ 21,106.74
-20.572% January variance
YTD Mo'ly Budgeted $ 420,840.00 YTD October- January, 2008
YTD Mo'ly Received $ 334,103.31
$ 86,736.69
-20.610% YTD variance
owner $ Amount % of Change
FY 07/08
Inc UDM
IncDec
$
93,663.91
$
(31.370,57)
-25 09%
$
79,855.10
$
(26,417 81)
-24.86%
$
79,091.05
$
(7,922,53)
-9.10%
$
81,493.26
$
(28,203.27)
-25 71%
$ 334,103.31 $ (93,91418) -2194%
$ 1,200,000.00 Budgeted Sales Tax
THREE YEAR (3) COMPARISON
ECOMONIC DEVELOPMENT CORP.
PROSPER, TEXAS
Fs6O,OOO.00 _..
$50,000.00
$40,Oo0.00
$30,000.00
$20,000.00
$10,000.00
Oct Nov Dec Jan Feb Mar Apr May June July Aug Sept
-4-FY05M - *--FY 06W FY 07M
RFare
Ware
Month
FY 05/06
FY 06/07
Oct
$
49,220.31
$
41,678.16
Nov
$
42,603.09
$
35,424.30
Dec
$
41,879.20
$
29,004.53
Jan
$
40,116.20
$
36,565.51
Feb
$
41,402.93
$
29,757.08
Mar
$
35,021.28
$
31,232.45
Apr
$
49,242.85
$
24,216.74
May
$
45,130.76
$
49,198.28
June
$
41,640.85
$
32,479.82
July
$
44,731.08
$
31,634.59
Aug
$
32,629.63
$
29,919.88
Sept
$_
38,553.80
$
30.535.23
YTD Totals $ 502,171.98 $ 401,646.57
RDCShare
$ Amount
% of Change
FY 07/08
Inc!(Dec)
Inc /(Dec)
$ 31,221.31
$ (10.456 86)
-25 09°i6
$ 26,618.38
$ (8,805 92)
-24.86%
$ 26,363.68
$ (2,640-65)
-910%
$ 27,164.42
$ (9,401 09)
-25 71%
$111,367.79 $ (31.304 71) -21 94%
$ 390,000.00 Budgeted Sales Tax
PIOWN OF
SPER
CAPITAL PROJECTS
BOND SUMMARIES
2004 BOND
2006 BOND
II' I
1 ��
TOWN OF
P SPEW
2004 BOND
On January 13, 2004, the Town Council adopted a resolution directing that notice be published of the
Council's intent to sell $10,500,000 of the Town's Combination Tax and Revenue Certificates of
Obligation to fund capital expenditures of the Town. The Council's resolution specifies the following uses
for the proceeds received from the sale of the Certificates of Obligation:
1. To pay costs of extending, constructing and improving Town's sewer system, including,
constructing sewage lift stations, extending and upgrading sewage collection lines and force
mains throughout the Town.
2. To pay costs of constructing and improving the Town's water system, including the
construction of elevated and ground water storage facilities and acquiring interests in land for
such storage facilities, extending the water distribution system including extending and
upgrading water lines and constructing pumping stations to improve access to, and the flow
of water in, the Town.
3. To pay costs of constructing and equipping municipal park improvements and acquiring
interests in land for parks and open space.
4. To pay legal, fiscal, engineering and architectural fees in connection with the foregoing
projects.
5. To pay costs of constructing and equipping municipal buildings, specifically: a town hall, fire
stations, police facilities, court facilities and acquiring interests in land for such buildings.
in connection with the Town's capital planning for these projects, the Town Staff has prepared for the
Council a proposed expenditure plan, which is summarized below. The capital plan summarized below
is based upon current cost estimates and proposed construction schedules, and the expenditure plan is
subject to change.
However, under State law, the Town may not use the proceeds of the Certificates of Obligation except for
the project categories included in the resolution adopted by the Council that are listed above. The Town
Council has indicated that the Town will periodically account to the citizens of the Town, using the Town
web site and other means of informing the citizens, as to how the proceeds of the Certificates of
Obligation are spent.
The following table will be used to report expenditures. The table lists descriptions of projects and their
estimated costs. In the future as expenditures are made, the table will be updated to describe the
expenditures, the amount of the expenditure, and the difference between the estimated and actual costs.
r..�.... .- .._. -- -„� .
I I
` Description of Project I Date of Description of
and
Estimated Cost Expenditure Expenditure
L
Fire Station 1 Pogue Construction
$400,000 Pogue Construction
$230,248 12/9/04 Pogue Construction
07/31 /06
Total
Status: The To_wn's new
held on September 26, 2004.
Obligation.
Difference
Amount between
Expended Estimated Cost
and Amount
$100,000.00 1 $ 130,248.00
$ 25,174.00 $ 105,074.00
$ 85,957.00 $ 19,117.00
$ 19,116.55 $ .45
$230,247.55
'entral Fire Station was completed in July. A grand opening ceremony was
This project requires no additional funding from the 2004 Certificates of
Gentle Creek Lift Station
and Force Main to WWTP
and CR 80 Lift Station and
Force Main to CR 122
$1,280,000
10/27/04
11/9/04
12/21 /04
04/05/05
06/20/05
07/18/05
08/04/05
08/04/05
9/13t05
9/13/05
9/30/05
01/31/06
Dickerson Construction
Dickerson Construction
Dickerson Construction
Dickerson Construction
Dickerson Construction
Freese & Nichols
Freese & Nichols
Dickerson Construction
Dickerson Construction
Freese & Nichols
Freese & Nichols
Dickerson Construction
Total
$ 224,505.43
$ 80,256.00
$ 218,217.85
$ 334,074.91
$ 124,446.54
$ 5,304.00
$ 11,328.00
$ 172,255.89
$ 68,447.50
$ 20,400.00
$ 10,584.00
$ 10.179.88
$1,280,000.00
$1,055,494.57
$ 975,238.57
$ 757,020.72
$ 422,945.81
$ 298,499.27
$ 293,195.27
$ 281,867.27
$ 109,611.38
$ 41,163.88
$ 20,763.88
$ 10,179.88
$ 0
Status: The Town retained Dickerson Construction Company to construct the Gentle Creek and
Steeplechase Sewer Improvement Project. A
sewer force main has been extended from the Gentle Creek
subdivision along CR 122, CR 81, CR 48, and CR 4 to the Town's wastewater treatment plant, a sewer
gravity line was constructed from the Steeplechase subdivision past CR
80 to the east property line of the
Whispering Farms subdivision, and a lift station and sewer line have been constructed near the east
property line of Whispering Farms to force the
sewage north to CR 122.
The Town Council
will be asked to
accept all of these improvements at their July 25 meeting.
Danvllle/Prosper Water
Improvements
$84, 000
Status: A portion of east Prosper currently
receives water from the Danville Water Supply District. After
several years, the TCEQ approved the amendment
to CCN No. 12967 and the transfer of a portion of the
service area of CCN No. 10190 from Danville
Water Supply Corporation
to Prosper, making the Town the
water service provider for all of east Prosper. The transfer will involve capping a number of lines, closing a
number of valves, and constructing a number of new water lines. Freese & Nichols has recommended that
the work be postponed until this fall due to the additional demand that will be placed on the Town's water
system by the additional customers. Town staff is working with Freese & Nichols to prepare a plan for this
project that will allow the improvements to be completed just as soon as the summer demand lessens.
Water Storage Tanks and 11/30/05
Freese & Nichols
$ 10,841.86
$ 8,313,875.14
Pump Station at US 380 12/16/05
Freese & Nichols
$ 22,116.57
$ 8,291,758.57
between Independence 01/16/06
TXU (Easements)
$ 500.00
$ 8,291,258.57
Parkway & Custer Road 01/20/06
Freese & Nichols
$ 95,154.97
$ 8,196,103.60
$8,Q46,,488 02/03/06
Freese & Nichols
$ 110,250.00
$ 8,085,853.60
$8,324,-747 02/20/06
Freese & Nichols
$ 11,537.24
$ 8,074,316.36
$8,443,746 03/15/06
Freese & Nichols
$ 7,047.73
$ 8,067,268.63
03/15/06
Freese & Nichols
$ 120,015.00
$ 7,947,253.63
04/07/06
Freese & Nichols
$ 74,235.00
$ 7,873,018.63
04/07/06
Freese & Nichols
$ 15,971.38
$ 7,857,047.25
05/15/06
Freese & Nichols
$ 52,500.00
$ 7,804,547.25
05/15/06
Freese & Nichols
$ 5,837.97
$ 7,798,709.28
07/24/06
Freese & Nichols
$ 5,341.73
$ 7,793,367.55
07/24/06
Red River Const
$ 183,389.06
$ 7,609,978.49
08/15/06
Red River Const
$ 252,424.91
$ 7,357,553.58
08/15/06
Freese & Nichols
$ 5,046.10
$ 7,352,507.48
09/30/06
Freese & Nichols
$ 13,112.88
$ 7,339,394.60
09/30/06
Red River Const
$ 849,635.61
$ 6,489,758.99
09/30/06
Red River Const
$ 494 082.78
$ 5,995,676.21
11/19/06
Red River Const $ 594,002.29 $ 5,401,673.92
11/10/06
Spiars Engineering $ 1,85000 $ 5,399,823.92
11/10/06
Freese & Nichols $ 2,196.90 $ 5,397,627.02
11/10/06
Freese & Nichols $ 5,432.71 $ 5,392,194.31
12/05/06
W.R Hodgson $ 764,091.11 $4,628,103.20
12/13/06
Red River Const $ 950,626.97 $ 3,677,476.23
12/13/06
Freese & Nichols $ 5,423.23 $ 3,672,053.00
12/13/06
Freese & Nichols $ 3,417.40 1 $ 3,668,635.60
1/05/07
W. R. Hodgson
$ 199,378.94
$ 3,469,256.66
1/05/07
W. R. Hodgson
$ 496,636.25
$ 2,972,620.41
1/19/07
Freese & Nichols
$ 5,635.02
$ 2,966,985.39
1/19/07
Freese & Nicho
$ 2,704.08
$ 2,964,281.31
1/19/07
Red River Const
$ 260,195.39
$ 2,704,085.92
1/23/07
W. R. Hodgson
$ 50,567.55
$ 2,653,518.37
2/12/07
Freese & Nichols
$ 3,176.40
$ 2,650,341.97
2/12/07
Freese & Nichols
$ 5,568.24
$ 2,644,773.73
2/12/07
Red River Const
$ 282,792.75
$ 2,361,980.98
2/23/07
W. R. Hodgson
$ 425,850.80
$1,936,130.18
2/27/07
Freese & Nichols
$ 5.000.00
$ 1,931,130.18
3/13/07
W. R. Hodgson
$ 253,116.72
$1,678,013.46
3/13/07
Red River Const
$ 265,950.24
$1,412,063.22
04/09/07
Freese & Nichols
$ 992.49
$ 1,411,070.73
04/09/07
Freese & Nichols
$ 4,972.42
$1,406,098.31
04/09/07
W. R. Hodgson
$ 104,328.05
$1,301,770.26
04/09/07
Red River Const
$ 620,934.67
$ 680,835.59
04/10/07
Spiars Engineering
$ 475.00
$ 680,360.59
05/02/07
Freese & Nichols
$ 3,806.38
$ 676,554.21
05/02/07
Freese & Nichols
$ 6,147.40
$ 670,406.81
05/02/07
Red River Const
$ 166,514.45
$ 503,892.36
06/20/07
Freese & Nichols
$ 12,869.13
$ 491,023.23
06/20/07
W. R. Hodgson
$ 27,113.00
$ 463,910.23
06/25/07
Home Depot
$ 223.46
$ 463,686.77
Change orders $119,029
07/2007
$
$ 582,715.77
07/23/07
Freese & Nichols
$ 10,379.53
$ 572,336.24
07/23/07
Freese & Nichols
$ 3,393.83
$ 568,942.41
07/23/07
W. R. Hodgson
$ 5,320.00
$ 563,622.41
08/31/07
Red River Const
$ 22,427.97
$ 541,194.44
08/31/07
Freese & Nichols
$ 2,387.37
$ 538,807.07
09/30/07
Red River Const
$ 77,824.02
$ 460,983.05
12/11/07
Red River Const
$ 41,013.65
$ 419,969.40
01/08/08
App. Consul Grp -land
$ 1,800.00
$ 418,169.40
01/08/08
App. Consul Grp -land
$ 2,800.00
$ 415,369.40
01/08/08
Freese & Nichols
$ 1,624.40
$ 413,745.00
01/14/08
Freese & Nichols-reimb
$ (2,000.00)
$ 415,745.00
01/31/08
Freese & Nichols
$ 1,239.35
$ 414,505.65
01/02/08
Red River Const
$ 73,945.73
$ 340,559.92
Status: The Town has entered into a contract with the North Texas Municipal Water District (NTMWD) to
provide the Town with another source of surface water. The Town has executed contracts with Red River
Construction to construct a 3 MG ground water storage tank and pump station and with Hodgson to
construct a 30' water line to receive and distribute the surface water to be received from the NTMWD at a
site near the intersection of Custer Road / US 380. The project is scheduled to be complete in the Spring of
2007.
Town Facilities (Town Hall,
Perkins & Will
$ 23,336.56
$ 48,849.12
Police/Courts, Fire Station,
11/8/04
Perkins & Will
$ 36,600.00
$ 12,249.12
etc)
09/30/05
Randal Scott
$ 12,249.12
$ 0
$2,000,4=
Total
$ 72,188.68
$72 188.68
Status: To meet its current need for facilities, the Town has relocated its Police Department to 113 W.
Broadway and purchased a building at 121 W. Broadway to serve as Town Hail. The construction of
additional facilities is on hold.
Police Department
Renovations
$60,000
Status:
Remaining Funds 219/07 City of Frisco $ 5,000.00 $324,817.32
Available excluding 3/27/07 Randall Scott Architects $ 7,300.00 $317,517.32
interest. 05/22/07 Randall Scott Architects $6,000.00 $311,517.32
$ 329,817.32 05/31/07 Tx Meter $ 235.56 $311,281.76
09/30/07 HP Envirovision $1,230.00 $310,051.76
Status: A number of projects originally scheduled to be funded by the 2004 Bond proceeds were
reprioritized to reallocate funds to the project to construct a 3 MG ground water storage tank, a pump station,
and a 30" water line. These funds are anticipated to be used for a number of pending expenditures,
including potential facility improvements, site acquisition for elevated water towers, and contributions
towards several development driven water and sewer projects.
Interest Available
$ 873 233.20 1 1 1
Status: Interest available for future projects FY 2007-2008
Total Bond Expenditures Balance
$10,500,000.00 $9,705,387.87 $ 794,612.13
Interest 873,233.20
$1,667,945.33
General Ledger: FY 03/04 Expense
$ 436,766.99
FY 04/05 Expense
$ 1,116,373.81
FY 05/06 Expense
$ 2,358,336.22
FY 06/07 Expense
$ 5,673,487.72
FY 07/08 Expense
$ 120,423.13
Total Expenses
$ 9,705,387.87
TOWN OF.rr
P S P E ii 2006 BOND
On July 25, 2006, the Town Council adopted a resolution directing that notice be published of the
Council's intent to sell $12,000,000 of the Town's Combination Tax and Revenue Certificates of
Obligation to fund capital expenditures of the Town. The Council's resolution specifies the following uses
for the proceeds received from the sale of the Certificates of Obligation:
To pay costs of constructing and improving the Town's water system, including the construction
of an elevated water storage tank and water distribution line.
To pay costs of acquiring, constructing and equipping municipal park improvements and open
space.
To pay costs of constructing and improving roads and streets in the Town and related
infrastructure.
To pay costs of extending, constructing and improving the Town's sewer system.
To pay costs of acquiring land and interests in land as may be required in connection with the
purposes as described in 1 through 5.
To pay legal, fiscal, engineering and architectural fees in connection with the foregoing projects.
In connection with the Town's capital planning for these projects, the Town Staff has prepared for the
Council a proposed expenditure plan, which is summarized below.
The capital plan summarized below
is based upon current cost estimates and proposed construction schedules, and the expenditure plan is
subject to change.
However, under State law, the Town may not use the proceeds of the Certificates of Obligation except for
the project categories included in the resolution adopted by the Council that are listed above.
The following table will be used to report expenditures. The table lists descriptions of projects and their
estimated costs. In the future as expenditures are made, the table will be updated to describe the
expenditures, the amount of the expenditure, and the difference between the estimated and actual costs.
Difference
Description of Project Date of Description of
and
Amount between
I
Expenditure Expenditure
Estimated Cost
Expended Estimated Cost
and Amount
Expended
Project: 12/13/06 ese &Nichols
Fre
ji12/13/06
$ 5,457.81 ; $4,994,542.19
1.5 MG Elevated Storage ' Freese & Nichols
$ 3,351.81 $4,991,190.38
Tank and 1°t Street 20" 01/19/07 ! Freese & Nichols
$ 6,811.20 + $4,984,379.18
Water Line 01/19/07 Freese & Nichols
$ 9,519.69 $4,974,859.49
-$6,43,999 02/15/07 Freese & Nichols
$ 18,945.13 $1,955,914.36 !
Contract $4,407,210 02/15/07 Freese & Nichols
$ 21,622.24 $4,934,292.12
Acq Land & Easement 02/27/07 Freese & Nichols
$ 53452.37 $4,880,839.75
$ 592,790 02/27/07 ; Freese & Nichols
$ 1:533.92 $4,879,305.83
03/19/07 ' G.M. Geer
$ 1,350.00 ; $4,877,955.83
Total $5,000,000 04/10/07 Freese & Nichols
$ 920.00 $4,877,035.83
05/02/07 Freese & Nichols
$ 18,181.50 $4,858,854.83
06/14/07 TXU
$ 250.00 I $4,858,604.33
06/30/07 , Freese & Nichols
$ 42,957.60 $4,815,646.73
j 07/23/07 Freese & Nichols
$ 46,715.00 $4,768,931.73
08/31/07 Freese & Nichols
$ 10408.54 $4,758,523.19
08/31/07 Freese & Nichols
$ 5:272.75 $4,753,250.44
08/31/07 Freese & Nichols
$ 11,595.00 ; $4,741,655.44
08/31/07 1 Dallas Morning News
$ 267.40 $4,741,388.04
09/30/07 Freese & Nichols
$ 396.75 ' $4,740,991.29
i 10/16/07 LandAmerica Title
$ 458.001 $4,740,533.29
11/19/07
Four D Construction
$ 496,831.96
$4,243,701.34
11/19/07
Landmark Structures
$ 230,636.25
$4,013,065.09
12/11/07
Landmark Strictures
$ 336,395.00
$3,676,670.09
12/18/07
Four D Construction
$ 158,553.90
$3,518,116.19
01/08/08
Freese & Nichols
$ 4,111.25
$3,514,004.94
01/14/08
1 Landmark Structures
1 $ 613 60.15
1 $2 900 744.79
Status: The 1.6 MG elevated storage tank has had the design for it completed and bid for the project went
out and is expected to be awarded at the Council meeting June 26, 2007. The 1't 20" pipeline design is
complete and is out for bids. The bid is anticipated to be awarded at the July 24, 2007 Council meeting.
Project:
03/06/07
LandAmerica Wilson
$2,005,400.00
$ 0
Community Park
6/20/07
Grant Reimbursement
$ (600,000.00)
$ 500,000.00
$2,005,400
Status: March 9, 2007, Purchased 57 acres of land from PISD.
Project:
11/13/07
Appraisal Consultation
$ 2,800.00
$ 697,200.00
Park Project
01/08/08
LaTerra Design
$ 5,320.00
$ 691,880.00
$700,000
Status: Currently under design by LaTerra Studios.
Project: 11/20/07 JRJ Paving $186,239.56 $ 282,760.44
Street Paving Projects 01/08/08 JRJ Paving $196,994.84 $ 85,765.60
$469,000
Status: The Town has requested monetary consideration from Collin County for 50% matching funds on
their November, 2007 bond election.
Project:
Prosper Road Improvements
$500,000
Status:
Project:
9/30/07
Dowdey & Associates
$ 3,500.00
$ 516,400.00
Prosper Trail Drainage
11/06/07
Dowdey & Associates
$ 1,600.00
$ 514,900.00
Culverts
12/11/07
Dowdey & Associates
$ 5,944.99
$ 508,955.01
$519,900
01/31/08
Dowdey & Associates
$ 549.08
$ 508,405.93
Status: Design is almost complete and will bid the project in the latter part of January, 2008.
Project:
12/18/07
DHS Auto4ift sta. mod
$ 1,568.65
$ 75,431.35
Water Flow Reversal
12/18/07
DHS Auto -lift sta. mod
$ 10,925.00
$ 64,506.35
$77,000
Status: Ongoing project just getting started.
Project:
01/08/08
Ferguson WW-Toll Rd
$ 4,389.58
$ 271,610.42
Water/Sewer Line Repl.
01/22/08
Ferguson WW
$ 695.10
$ 270,915.32
Water. $160,000
01/31/08
Rodman
$ 16,240.00
$ 254,675.32
Sewer. $116 000
Status:
Project:
01/02/08
Brookhollow
$ 5,953.75
$ 969,046.25
Kohl's Development
01/02/08
G.E. Walker
$ 29,599.74
$ 939,446.51
$975,000
01/02/08
G.E. Walker
$ 14,377.49
$ 925,069.02
Status:
Project:
3/21/07
UTRWD
$ 62,500.00
$ 1,257,319.98
Remaining bond funds
04/24/07
Ferguson (6" Line)
$ 10,594.79
$ 1,246,725.19
available
04/24/07
Keys Tapping(6" line)
$ 180.00
$ 1,246,545.19
$1,319,819.98
04/24/07
Barbosa Const(6" line)
$ 31,500.00
$ 1,215,045.19
05/31/07
Keys Tapping (6" line)
$ 195.00
$ 1,214,850.19
05/31/07
Texas Meter
$ 441.60
$ 1,214,408.59
05/31/07
Barbosa Const(6" line)
$ 7,500.00
$ 1,206,908.59
05/31/07
Home Depot
$ 192.50
$ 1,206,716.09
05/31/07
Barbosa Const(6" line)
$ 3,500.00
$ 1,203,213.09
05/31/07
Ferguson Waterworks
$ 1,028.80
$ 1,202,187.29
05/31/07
Ferguson Waterworks
$ 347.19
$ 1,201,840.10
05/31/07
Ferguson Waterworks
$ 45.00
$ 1,201,795.10
11/20/07
Ferguson Waterworks
$ 4,582.16
$ 1,197,212.94
12/18/07
Barboss Const(12" line)
$ 7,600.00
$ 1,189,612.94
01/02/08
UTRWD-Fees
$ 68,095.84
$ 1,121,517.10
Status: The 6" pipeline from Coleman to Church is complete. The fee to UTRW is to have Prosper included
the study for the Doe Branch wastewater treatment plant.
Project:
Interest available:
$665,601.30
Status: Interest available for future project FY 2007-2008
i opal Dona txPenaitures
$11,842,119.98 $ 4,289,555.87
General Ledger: FY 06/07 Expense $1,885,933.59
FY 07/08 Expense $2,403,622.28
Total Expenses $4,289,555.87
Balance
$ 7,552,564.11
665,601.30
$ 8,218,165.41
r
P TOWN ER
To: Mayor and Town Council
From: Matthew D. Denton, Town Secretary
Xc: Mike Land, Town Manager
ADMINISTRATION
Regular Meeting
Prosper Town Council
February 26, 2008 - 6:00 p.m.
Re: Annexation of approximately 2106.592 acres of land generally located north
of Hwy 380 and west of Fields Road.
Description:
Council accepted the petition for the voluntary annexation of approximately 2106.592 acres of
land north of Hwy 380 and west of Fields Road at their January 8, 2008 meeting. This is the
second of two public hearings required to annex the property. Following is a service plan for the
property.
Recommendation:
Staff recommends that Council receive any input at the public hearing. Following the public
hearing, no Council action is required.
Agenda Item No. 6
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TOWN OF PROSPER, TEXAS
SERVICE PLAN FOR ANNEXED AREA
ANNEXATION ORDINANCE: NO.
DATE OF ANNEXATION ORDINANCE:
ACREAGE ANNEXED:
SURVEY, ABSTRACT & COUNTY:
CURRENT PROPERTY OWNER:
08-xx
March 11, 2008
Approximately 2106.592 acres
C. SMITH SURVEY, ABSTRACT 1681, THE J. BATES
SURVEY, ABSTRACT NO. 1620, THE L. SALING SURVEY,
ABSTRACT NO. 1675, THE H. P. SURVEY, ABSTRACT NO.
1628, THE M.E.P. & P. RR SURVEY, ABSTRACT NO. 1476,
THE P. BARNES SURVEY, ABSTRACT NO. 79, THE B.
HADGES SURVEY, ABSTRACT NO. 593, THE A. B.
JAMISON SURVEY, ABSTRACT NO. 672, THE B.B.
WALTON SURVEY, ABSTRACT NO. 1369, THE T. BUTTON
SURVEY, ABSTRACT NO. 88, THE P.R. RUE SURVEY,
ABSTRACT NO. 1555, THE J. TETTER SURVEY, ABSTRACT
NO. 1262, THE L. NETHERLY SURVEY, ABSTRACT NO. 962,
THE B. RUE SURVEY, ABSTRACT NO. 1113, THE A.
ROBERTS SURVEY, ABSTRACT NO. 1115, IN DENTON
COUNTY, TEXAS, THE R. YATES SURVEY, ABSTRACT NO.
1538, THE L. RUE SURVEY, ABSTRACT NO. 1110, THE H.
RUE SURVEY, ABSTRACT NO. 1111, THE J. MORTON
SURVEY, ABSTRACT NO. 793, Denton County
Forest City Land Group
MUNICIPAL SERVICES TO THE ACREAGE DESCRIBED ABOVE SHALL BE FURNISHED BY OR ON BEHALF
OF THE TOWN OF PROSPER, TEXAS, AT THE FOLLOWING LEVELS AND IN ACCORDANCE WITH THE
FOLLOWING SCHEDULE:
A. POLICE SERVICE
PATROLLING, RESPONSES TO CALLS, AND OTHER ROUTINE POLICE SERVICES, WITHIN THE
LIMITS OF EXISTING PERSONNEL AND EQUIPMENT, WILL BE PROVIDED UPON THE
EFFECTIVE DATE OF THE ANNEXATION ORDINANCE.
2. UPON ULTIMATE DEVELOPMENT OF THE AREA, THE SAME LEVEL OF POLICE SERVICE WILL
BE PROVIDED TO THIS AREA AS ARE FURNISHED THROUGHOUT THE TOWN.
B. FIRE SERVICE
1. FIRE PROTECTION AND EMERGENCY AMBULANCE EQUIPMENT BY THE PRESENT
PERSONNEL AND THE PRESENT EQUIPMENT OF THE FIRE DEPARTMENT, WITHIN THE LIMITS
OF AVAILABLE WATER AND DISTANCES FROM THE EXISTING FIRE STATION, WILL BE
PROVIDED TO THIS AREA UPON THE EFFECTIVE DATE OF THE ANNEXATION ORDINANCE.
2. UPON ULTIMATE DEVELOPMENT OF THE AREA, THE SAME LEVEL OF FIRE AND
EMERGENCY AMBULANCE SERVICES WILL BE PROVIDED TO THIS AREA AS ARE FURNISHED
THROUGHOUT THE TOWN.
C. ENVIRONMENTAL HEALTH AND CODE ENFORCEMENT SERVICES
1. ENFORCEMENT OF THE TOWN'S ENVIRONMENTAL HEALTH ORDINANCE AND
REGULATIONS, INCLUDED BUT NOT LIMITED TO WEED AND BRUSH ORDINANCES, JUNKED
AND ABANDONED VEHICLE ORDINANCE, AND ANIMAL CONTROL ORDINANCES, SHALL BE
PROVIDED WITHIN THIS AREA 60 DAYS TO THE EFFECTIVE DATE OF THE ANNEXATION
ORDINANCE. THESE ORDINANCES AND REGULATIONS WILL BE ENFORCED THROUGH THE
USE OF EXISTING PERSONNEL.
2. INSPECTION SERVICES, INCLUDING THE REVEIW OF BUILDING PLANS, THE ISSUANCE OF
PERMITS AND THE INSPECTION OF ALL BUILDINGS, PLUMBING, MECHANICAL, AND
ELECTRICAL WORK TO ENSURE COMPLIANCE WITH TOWN CODES AND ORDINANCES WILL
BE PROVIDED WITHIN 60 DAYS OF THE EFFECTIVE DATE OF THE ANNEXATION ORDINANCE.
EXISTING PERSONNEL WILL BE USED TO PROVIDE THESE SERVICES.
3. THE TOWN'S ZONING, SUBDIVISION, SIGN, AND OTHER ORDINANCES SHALL BE ENFORCED
IN THIS AREA BEGINNING UPON THE EFFECTIVE DATE OF THE ANNEXATION ORDINANCE.
4. ALL INSPECTION SERVICES FURNISHED BY THE TOWN OF PROSPER, BUT NOT MENTIONED
ABOVE, WILL BE PROVIDED TO THIS AREA BEGINNING WITHIN 60 DAYS OF THE EFFECTIVE
DATE OF THE ANNEXATION ORDINANCE.
5. AS DEVELOPMENT AND CONSTRUCTION COMMENCE IN THIS AREA, SUFFICIENT PERSONNEL
WILL BE PROVIDED TO FURNISH THIS AREA THE SAME LEVEL OF ENVIRONMENTAL HEALTH
AND CODE ENFORCEMENT SERVICES AS ARE FURNISHED THROUGHOUT THE TOWN.
D. PLANNING AND ZONING SERVICES
THE PLANNING AND ZONING JURISDICTION OF THE TOWN WILL EXTEND TO THIS AREA
UPON THE EFFECTIVE DATE OF THE ANNEXATION ORDINANCE. TOWN PLANNING WILL
THEREAFTER ENCOMPASS THIS PROPERTY, AND IT SHALL BE ENTITLED TO
CONSIDERATION FOR ZONING IN ACCORDANCE WITH THE TOWN'S COMPREHENSIVE PLAN.
E. PARK AND RECREATION SERVICES
1. RESIDENTS OF THIS PROPERTY MAY UTILIZE ALL EXISTING PARK AND RECREATIONAL
SERVICES, FACILITIES, AND SITES THROUGHOUT THE TOWN, BEGINNING UPON THE
EFFECTIVE DATE OF THE ANNEXATION ORDINANCE.
2. ADDITIONAL FACILITIES AND SITES TO SERVE THIS PROPERTY AND ITS RESIDENTS WILL BE
ACQUIRED, DEVELOPED, AND MAINTAINED AT LOCATIONS AND TIMES PROVIDED BY
APPLICABLE PLANS, POLICIES AND PROGRAMS AND DECISIONS OF THE TOWN OF PROSPER.
THIS PROPERTY WILL BE INCLIDED IN ALL FUTURE PLANS FOR PROVIDING PARKS AND
RECREATION SERVICES TO THE TOWN.
3. THIS PROPERTY WILL BE INCLUDED IN ALL PLANS FOR PROVIDING PARKS AND
RECREATION SERVICES TO THE TOWN. THE SAME LEVEL OF PARKS AND RECREATION
SERVICES SHALL BE FURNISHED TO THIS PROPERTY AS IS FURNISHED THROUGHOUT THE
TOWN.
4. EXISTING PARKS, PLAYGROUNDS, AND OTHER RECREATIONAL FACILITIES
WITHIN THIS PROPERTY SHALL, UPON DEDICATION TO AND ACCEPTANCE BY THE TOWN,
BE MAINTAINED AND OPERATED BY THE TOWN OF PROSPER, BUT NOT OTHERWISE.
F. SOLID WASTE COLLECTION
1. SOLID WASTE COLLECTION SHALL BE PROVIDED TO THE PROPERTY IN ACCORDANCE WITH
EXISTING TOWN POLICIES, BEGINNING UPON THE EFFECTIVE DATE OF THE ANNEXATION
ORDINANCE. RESIDENTS OR COMMERCIAL USERS OF THIS PROPERTY UTILIZING PRIVATE
COLLECTION SERVICES AT THE TIME OF ANNEXATION MAY CONTINUE TO DO SO IN LIEU OF
RECEIVINH CITY SERVICES UNTIL THE SECOND ANNIVERSARY OF THE EFFECTIVE DATE OF
THIS ORDINANCE.
2. AS DEVELOPMENT AND CONSTRUCTION COMMENCE ON THIS PROPERTY, AND POPULATION
DENSITY INCREASES TO THE PROPERTY LEVEL, SOLID WASTE COLLECTION SHALL BE
PROVIDED TO THIS PROPERTY IN ACCORDANCE WITH THE CURRENT POLICIES OF THE
TOWN AS TO FREQUENCY, CHANGES AND SO FORTH.
G. STREETS
I. THE TOWN OF PROSPER'S EXISTING POLICIES WITH REGARD TO STREET MAINTENANCE,
APPLICABLE THROUGHOUT THE ENTIRE TOWN, SHALL APPLY TO THIS PROPERTY
BEGINNING UPON THE EFFECTIVE DATE OF THE ANNEXATION ORDINANCE. UNLESS A
STREET WITHIN THIS PROPERTY HAS BEEN
CONSTRUCTED OR IS IMPROVED TO THE TOWN'S STANDARDS AND SPECIFICATIONS,
THAT STREET WILL NOT BE MAINTAINED BY THE TOWN OF PROSPER.
2. AS DEVELOPMENT, IMPROVEMENT OR CONSTRUCTION OF STREETS TO TOWN
STANDARDS COMMENCE WITHIN THIS PROPERTY, THE POLICIES OF THE TOWN OF PROSPER
WITH REGARD TO PARTICIPATION IN THE COSTS THEREOF, ACCEPTANCE UPON
COMPLETION, AND MAINTENANCE AFTER COMPLETION, SHALL APPLY.
3. THE SAME LEVEL OF MAINTENANCE SHALL BE PROVIDED TO STREETS
WITHIN THIS PROPERTY WHICH HAVE BEEN ACCEPTED BY THE TOWN OF PROSPER AS IS
PROVIDED TO TOWN STREETS THROUGHOUT THE TOWN.
4. STREET LIGHTING INSTALLED ON STREETS IMPROVED TO TOWN STANDARDS
SHALL BE MAINTAINED BY THE EXISTING FRANCHISE IN ACCORDANCE WITH CURRENT
POLICIES.
H. WATER SERVICES
I. CONNECTION TO EXISTING TOWN WATER MAINS FOR WATER SERVICE FOR DOMESTIC,
COMMERCIAL, AND INDUSTRIAL USE WITHIN THIS PROPERTY WILL BE PROVIDED IN
ACCORDANCE WITH EXISTING TOWN POLICIES. UPON CONNECTION TO EXISTING MAINS,
WATER WILL BE PROVIDED AT RATES ESTABLISHED BY TOWN ORDINANCES FOR SUCH
SERVICE THROUGHOUT THE TOWN.
2. AS DEVELOPMENT AND CONSTRUCTION COMMENCE IN THIS PROPERTY, WATER MAINS OF
THE TOWN WILL BE EXTENDED IN ACCORDANCE WITH PROVISIONS OF THE SUBDIVISION
ORDINANCE AND OTHER APPLICABLE ORDINANCES AND REGULATIONS. TOWN
PARTICIPATION IN THE COSTS OF THESE EXTENSIONS SHALL BE IN ACCORDANCE WITH THE
APPLICABLE TOWN ORDINANCES AND REGULATIONS. SUCH EXTENSIONS WILL BE
COMMENCED WITHIN TWO AND ONE-HALF (2 -"2) YEARS FROM THE DATE OF ADOPTION OF
THE ANNEXATION ORDINANCE, OR UPON COMMENCEMENT OF DEVELOPMENT OF A
SUBDIVISION WITHIN THIS PROPERTY, WHICHEVER OCCURS LATER.
3. WATER MAINS INSTALLED OR IMPROVED TO TOWN STANDARDS WHICH ARE WITHIN THE
ANNEXED AREA AND ARE WITHIN DEDICATED EASEMENTS SHALL BE MAINTAINED BY THE
TOWN OF PROSPER BEGINNING UPON THE EFFECTIVE DATE OF THE ANNEXATION
ORDINANCE.
4. THEIR OWNERS, IN ACCORDANCE WITH EXISTING POLICIES APPLICABLE THROUGHOUT THE
TOWN, SHALL MAINTAIN PRIVATE WATER LINES WITHIN THIS PROPERTY.
I. SANITARY SEWER SERVICES
I. CONNECTIONS TO EXISTING TOWN SANITARY SEWER MAINS FOR SANITARY SEWAGE
SERVICE IN THIS AREA WILL BE PROVIDED IN ACCORDANCE WITH EXISTING TOWN
POLICIES. UPON CONNECTION, SANITARY SEWAGE SERVICE WILL BE PROVIDED AT RATES
ESTABLISHED BY TOWN ORDINANCES FOR SUCH SERVICE THROUGHOUT THE TOWN.
SANITARY SEWAGE MAINS AND:OR LIFT STATIONS INSTALLED OR IMPROVED TO TOWN
STANDARDS, LOCATED IN APPROVED DEDICATED EASEMENTS, AND WHICH ARE WITHIN
THE ANNEXED AREA AND ARE CONNECTED TO TOWN MAINS WILL BE MAINTAINED BY THE
TOWN BEGINNING UPON THE EFFECTIVE DATE OF THE ANNEXATION ORDINANCE. PRIVATE
SEWER LINES SHALL BE MAINTAINED BY THE OWNERS THEREOF IN ACCORDANCE WITH
EXISTING TOWN POLICIES, PRACTICES AND REGULATIONS.
AS DEVELOPMENT AND CONSTRUCTION COMMENCE IN THIS AREA, SANITARY SEWER
MAINS OF THE TOWN WILL BE EXTENDED IN ACCORDANCE WITH PROVISIONS OF THE
SUBDIVISION ORDINANCE AND OTHER APPLICABLE TOWN ORDINANCES AND
REGULATIONS. TOWN PARTICIPATION IN THE COSTS OF THE EXTENSIONS SHALL BE IN
ACCORDANCE WITH APPLICABLE TOWN ORDINANCES AND REGULATIONS. SUCH
EXTENSIONS WILL BE COMMENCED WITHIN TWO AND ONE-HALF (2 1/2) YEARS FROM THE
EFFECTIVE DATE OF THE ANNEXATION ORDINANCE, UNLESS THE SERVICES CANNOT BE
REASONABLY PROVIDED IN THAT PERIOD, THEN TOWN SHALL PROPOSE A SERVICE
SCHEDULE TO PROVIDE FOR THE PROVISION OF THE SERVICES WITHIN FOUR AND ONE-
HALF (44.2) YEARS AFTER THAT DATE.
J. MISCELLANEOUS
1. ANY FACILITY OR BUILDING LOCATED WITHIN THE ANNEXED AREA AND UTILIZED BY THE
TOWN OF PROSPER IN PROVIDING SERVICES TO THE AREA WILL BE MAINTAINED BY THE
TOWN COMMENCING UPON THE DATE OF USE OR UPON THE EFFECTIVE DATE OF THE
ANNEXATION ORDINANCE, WHICHEVER OCCURS LATER.
2. GENERAL MUNICIPAL ADMINISTRATION AND ADMINISTRATIVE SERVICES TO THE TOWN
SHALL BE AVAILABLE TO THE ANNEXED AREA BEGINNING UPON THE EFFECTIVE DATE OF
THE ANNEXATION ORDINANCE.
3. NOTWITHSTANDING ANYTHING SET FORT ABOVE, THIS SERVICE PLAN DOES NOT REQUIRE
ALL TOWN SERVICES BE PROVIDED AS SETFORTH ABOVE IF DIFFERENTCHARACTERISTICS
OF TOPOGRAPHY, LAND USE AND POPULATION DENSITY ARE CONSIDERED A SUFFICIENT
BASIS FOR PROVIDING DIFFERENT LEVELS OF SERVICE.
4. THE SERVICE PLAN IS VALID FOR TEN (10) YEARS FROM THE EFFECTIVE DATE OF THE
ORDINANCE.
ADMINISTRATION
Regular Meeting
Prosper Town Council
February 26, 2008 - 6:00 p.m.
To: Mayor and Town Council
From: Matthew D. Denton, Town Secretary
Xc: Mike Land, Town Manager
Re: Annexation of approximately 27.149 acres of land generally located +1600
north of Hwy 380 and east of Good Hope Road.
Description:
Council accepted the petition for the voluntary annexation of approximately 27.149 acres of land
generally located +1600 north of Hwy 380 and east of Good Hope Road at their January 8, 2008
meeting. This is the second of two public hearings required to annex the property. Following is
a service plan for the property.
Recommendation:
Staff recommends that Council receive any input at the public hearing. Following the public
hearing, no Council action is required.
Agenda Item No. 7
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TOWN OF PROSPER, TEXAS
SERVICE PLAN FOR ANNEXED AREA
ANNEXATION ORDINANCE: NO.
DATE OF ANNEXATION ORDINANCE:
ACREAGE ANNEXED:
SURVEY, ABSTRACT & COUNTY:
CURRENT PROPERTY OWNER:
08-xx
March 11, 2008
Approximately 27.149 acres
J. Bates Survey, Abstract 1620, Denton County
Forest City Land Group
MUNICIPAL SERVICES TO THE ACREAGE DESCRIBED ABOVE SHALL BE FURNISHED BY OR ON BEHALF
OF THE TOWN OF PROSPER, TEXAS, AT THE FOLLOWING LEVELS AND IN ACCORDANCE WITH THE
FOLLOWING SCHEDULE:
A. POLICE SERVICE
1. PATROLLING, RESPONSES TO CALLS, AND OTHER ROUTINE POLICE SERVICES, WITHIN THE
LIMITS OF EXISTING PERSONNEL AND EQUIPMENT, WILL BE PROVIDED UPON THE
EFFECTIVE DATE OF THE ANNEXATION ORDINANCE.
2. UPON ULTIMATE DEVELOPMENT OF THE AREA, THE SAME LEVEL OF POLICE SERVICE WILL
BE PROVIDED TO THIS AREA AS ARE FURNISHED THROUGHOUT THE TOWN.
B. FIRE SERVICE
1. FIRE PROTECTION AND EMERGENCY AMBULANCE EQUIPMENT BY THE PRESENT
PERSONNEL AND THE PRESENT EQUIPMENT OF THE FIRE DEPARTMENT, WITHIN THE LIMITS
OF AVAILABLE WATER AND DISTANCES FROM THE EXISTING FIRE STATION, WILL BE
PROVIDED TO THIS AREA UPON THE EFFECTIVE DATE OF THE ANNEXATION ORDINANCE.
2. UPON ULTIMATE DEVELOPMENT OF THE AREA, THE SAME LEVEL OF FIRE AND
EMERGENCY AMBULANCE SERVICES WILL BE PROVIDED TO THIS AREA AS ARE FURNISHED
THROUGHOUT THE TOWN.
C. ENVIRONMENTAL HEALTH AND CODE ENFORCEMENT SERVICES
1. ENFORCEMENT OF THE TOWN'S ENVIRONMENTAL HEALTH ORDINANCE AND
REGULATIONS, INCLUDED BUT NOT LIMITED TO WEED AND BRUSH ORDINANCES, JUNKED
AND ABANDONED VEHICLE ORDINANCE, AND ANIMAL CONTROL ORDINANCES, SHALL BE
PROVIDED WITHIN THIS AREA 60 DAYS TO THE EFFECTIVE DATE OF THE ANNEXATION
ORDINANCE. THESE ORDINANCES AND REGULATIONS WILL BE ENFORCED THROUGH THE
USE OF EXISTING PERSONNEL.
2. INSPECTION SERVICES, INCLUDING THE REVEIW OF BUILDING PLANS, THE ISSUANCE OF
PERMITS AND THE INSPECTION OF ALL BUILDINGS, PLUMBING, MECHANICAL, AND
ELECTRICAL WORK TO ENSURE COMPLIANCE WITH TOWN CODES AND ORDINANCES WILL
BE PROVIDED WITHIN 60 DAYS OF THE EFFECTIVE DATE OF THE ANNEXATION ORDINANCE.
EXISTING PERSONNEL WILL BE USED TO PROVIDE THESE SERVICES.
3. THE TOWN'S ZONING, SUBDIVISION, SIGN, AND OTHER ORDINANCES SHALL BE ENFORCED
IN THIS AREA BEGINNING UPON THE EFFECTIVE DATE OF THE ANNEXATION ORDINANCE.
4. ALL INSPECTION SERVICES FURNISHED BY THE TOWN OF PROSPER, BUT NOT MENTIONED
ABOVE, WILL BE PROVIDED TO THIS AREA BEGINNING WITHIN 60 DAYS OF THE EFFECTIVE
DATE OF THE ANNEXATION ORDINANCE.
5. AS DEVELOPMENT AND CONSTRUCTION COMMENCE IN THIS AREA, SUFFICIENT PERSONNEL
WILL BE PROVIDED TO FURNISH THIS AREA THE SAME LEVEL OF ENVIRONMENTAL HEALTH
AND CODE ENFORCEMENT SERVICES AS ARE FURNISHED THROUGHOUT THE TOWN.
D. PLANNING AND ZONING SERVICES
THE PLANNING AND ZONING JURISDICTION OF THE TOWN WILL EXTEND TO THIS AREA
UPON THE EFFECTIVE DATE OF THE ANNEXATION ORDINANCE. TOWN PLANNING WILL
THEREAFTER ENCOMPASS THIS PROPERTY, AND IT SHALL BE ENTITLED TO
CONSIDERATION FOR ZONING IN ACCORDANCE WITH THE TOWN'S COMPREHENSIVE PLAN.
E. PARK AND RECREATION SERVICES
I. RESIDENTS OF THIS PROPERTY MAY UTILIZE ALL EXISTING PARK AND RECREATIONAL
SERVICES, FACILITIES, AND SITES THROUGHOUT THE TOWN, BEGINNING UPON THE
EFFECTIVE DATE OF THE ANNEXATION ORDINANCE.
2. ADDITIONAL FACILITIES AND SITES TO SERVE THIS PROPERTY AND ITS RESIDENTS WILL BE
ACQUIRED, DEVELOPED, AND MAINTAINED AT LOCATIONS AND TIMES PROVIDED BY
APPLICABLE PLANS, POLICIES AND PROGRAMS AND DECISIONS OF THE TOWN OF PROSPER.
THIS PROPERTY WILL BE INCLIDED IN ALL FUTURE PLANS FOR PROVIDING PARKS AND
RECREATION SERVICES TO THE TOWN.
3. THIS PROPERTY WILL BE INCLUDED IN ALL PLANS FOR PROVIDING PARKS AND
RECREATION SERVICES TO THE TOWN. THE SAME LEVEL OF PARKS AND RECREATION
SERVICES SHALL BE FURNISHED TO THIS PROPERTY AS IS FURNISHED THROUGHOUT THE
TOWN.
4. EXISTING PARKS, PLAYGROUNDS, AND OTHER RECREATIONAL FACILITIES
WITHIN THIS PROPERTY SHALL, UPON DEDICATION TO AND ACCEPTANCE BY THE TOWN,
BE MAINTAINED AND OPERATED BY THE TOWN OF PROSPER, BUT NOT OTHERWISE.
F. SOLID WASTE COLLECTION
I. SOLID WASTE COLLECTION SHALL BE PROVIDED TO THE PROPERTY IN ACCORDANCE WITH
EXISTING TOWN POLICIES, BEGINNING UPON THE EFFECTIVE DATE OF THE ANNEXATION
ORDINANCE. RESIDENTS OR COMMERCIAL USERS OF THIS PROPERTY UTILIZING PRIVATE
COLLECTION SERVICES AT THE TIME OF ANNEXATION MAY CONTINUE TO DO SO IN LIEU OF
RECEIVINH CITY SERVICES UNTIL THE SECOND ANNIVERSARY OF THE EFFECTIVE DATE OF
THIS ORDINANCE.
2. AS DEVELOPMENT AND CONSTRUCTION COMMENCE ON THIS PROPERTY, AND POPULATION
DENSITY INCREASES TO THE PROPERTY LEVEL, SOLID WASTE COLLECTION SHALL BE
PROVIDED TO THIS PROPERTY IN ACCORDANCE WITH THE CURRENT POLICIES OF THE
TOWN AS TO FREQUENCY, CHANGES AND SO FORTH.
G. STREETS
I. THE TOWN OF PROSPER'S EXISTING POLICIES WITH REGARD TO STREET MAINTENANCE,
APPLICABLE THROUGHOUT THE ENTIRE TOWN, SHALL APPLY TO THIS PROPERTY
BEGINNING UPON THE EFFECTIVE DATE OF THE ANNEXATION ORDINANCE. UNLESS A
STREET WITHIN THIS PROPERTY HAS BEEN
CONSTRUCTED OR IS IMPROVED TO THE TOWN'S STANDARDS AND SPECIFICATIONS,
THAT STREET WILL NOT BE MAINTAINED BY THE TOWN OF PROSPER.
2. AS DEVELOPMENT, IMPROVEMENT OR CONSTRUCTION OF STREETS TO TOWN
STANDARDS COMMENCE WITHIN THIS PROPERTY, THE POLICIES OF THE TOWN OF PROSPER
WITH REGARD TO PARTICIPATION IN THE COSTS THEREOF, ACCEPTANCE UPON
COMPLETION, AND MAINTENANCE AFTER COMPLETION, SHALL APPLY.
3. THE SAME LEVEL OF MAINTENANCE SHALL BE PROVIDED TO STREETS
WITHIN THIS PROPERTY WHICH HAVE BEEN ACCEPTED BY THE TOWN OF PROSPER AS IS
PROVIDED TO TOWN STREETS THROUGHOUT THE TOWN.
4. STREET LIGHTING INSTALLED ON STREETS IMPROVED TO TOWN STANDARDS
SHALL BE MAINTAINED BY THE EXISTING FRANCHISE IN ACCORDANCE WITH CURRENT
POLICIES.
H. WATER SERVICES
1. CONNECTION TO EXISTING TOWN WATER MAINS FOR WATER SERVICE FOR DOMESTIC,
COMMERCIAL, AND INDUSTRIAL USE WITHIN THIS PROPERTY WILL BE PROVIDED IN
ACCORDANCE WITH EXISTING TOWN POLICIES. UPON CONNECTION TO EXISTING MAINS,
WATER WILL BE PROVIDED AT RATES ESTABLISHED BY TOWN ORDINANCES FOR SUCH
SERVICE THROUGHOUT THE TOWN.
2. AS DEVELOPMENT AND CONSTRUCTION COMMENCE IN THIS PROPERTY, WATER MAINS OF
THE TOWN WILL BE EXTENDED IN ACCORDANCE WITH PROVISIONS OF THE SUBDIVISION
ORDINANCE AND OTHER APPLICABLE ORDINANCES AND REGULATIONS. TOWN
PARTICIPATION IN THE COSTS OF THESE EXTENSIONS SHALL BE IN ACCORDANCE WITH THE
APPLICABLE TOWN ORDINANCES AND REGULATIONS. SUCH EXTENSIONS WILL BE
COMMENCED WITHIN TWO AND ONE-HALF (2 ',z) YEARS FROM THE DATE OF ADOPTION OF
THE ANNEXATION ORDINANCE, OR UPON COMMENCEMENT OF DEVELOPMENT OF A
SUBDIVISION WITHIN THIS PROPERTY, WHICHEVER OCCURS LATER.
3. WATER MAINS INSTALLED OR IMPROVED TO TOWN STANDARDS WHICH ARE WITHIN THE
ANNEXED AREA AND ARE WITHIN DEDICATED EASEMENTS SHALL BE MAINTAINED BY THE
TOWN OF PROSPER BEGINNING UPON THE EFFECTIVE DATE OF THE ANNEXATION
ORDINANCE.
4. THEIR OWNERS, IN ACCORDANCE WITH EXISTING POLICIES APPLICABLE THROUGHOUT THE
TOWN, SHALL MAINTAIN PRIVATE WATER LINES WITHIN THIS PROPERTY.
I. SANITARY SEWER SERVICES
I. CONNECTIONS TO EXISTING TOWN SANITARY SEWER MAINS FOR SANITARY SEWAGE
SERVICE IN THIS AREA WILL BE PROVIDED IN ACCORDANCE WITH EXISTING TOWN
POLICIES. UPON CONNECTION, SANITARY SEWAGE SERVICE WILL BE PROVIDED AT RATES
ESTABLISHED BY TOWN ORDINANCES FOR SUCH SERVICE THROUGHOUT THE TOWN.
2. SANITARY SEWAGE MAINS AND/OR LIFT STATIONS INSTALLED OR IMPROVED TO TOWN
STANDARDS, LOCATED IN APPROVED DEDICATED EASEMENTS, AND WHICH ARE WITHIN
THE ANNEXED AREA AND ARE CONNECTED TO TOWN MAINS WILL BE MAINTAINED BY THE
TOWN BEGINNING UPON THE EFFECTIVE DATE OF THE ANNEXATION ORDINANCE. PRIVATE
SEWER LINES SHALL BE MAINTAINED BY THE OWNERS THEREOF IN ACCORDANCE WITH
EXISTING TOWN POLICIES, PRACTICES AND REGULATIONS.
3. AS DEVELOPMENT AND CONSTRUCTION COMMENCE IN THIS AREA, SANITARY SEWER
MAINS OF THE TOWN WILL BE EXTENDED IN ACCORDANCE WITH PROVISIONS OF THE
SUBDIVISION ORDINANCE AND OTHER APPLICABLE TOWN ORDINANCES AND
REGULATIONS. TOWN PARTICIPATION IN THE COSTS OF THE EXTENSIONS SHALL BE IN
ACCORDANCE WITH APPLICABLE TOWN ORDINANCES AND REGULATIONS. SUCH
EXTENSIONS WILL BE COMMENCED WITHIN TWO AND ONE-HALF (2 1 '2) YEARS FROM THE
EFFECTIVE DATE OF THE ANNEXATION ORDINANCE, UNLESS THE SERVICES CANNOT BE
REASONABLY PROVIDED IN THAT PERIOD, THEN TOWN SHALL PROPOSE A SERVICE
SCHEDULE TO PROVIDE FOR THE PROVISION OF THE SERVICES WITHIN FOUR AND ONE-
HALF (4-I'2) YEARS AFTER THAT DATE.
J. MISCELLANEOUS
I. ANY FACILITY OR BUILDING LOCATED WITHIN THE ANNEXED AREA AND UTILIZED BY THE
TOWN OF PROSPER IN PROVIDING SERVICES TO THE AREA WILL BE MAINTAINED BY THE
TOWN COMMENCING UPON THE DATE OF USE OR UPON THE EFFECTIVE DATE OF THE
ANNEXATION ORDINANCE, WHICHEVER OCCURS LATER.
2. GENERAL MUNICIPAL ADMINISTRATION AND ADMINISTRATIVE SERVICES TO THE TOWN
SHALL BE AVAILABLE TO THE ANNEXED AREA BEGINNING UPON THE EFFECTIVE DATE OF
THE ANNEXATION ORDINANCE.
3. NOTWITHSTANDING ANYTHING SET FORT ABOVE, THIS SERVICE PLAN DOES NOT REQUIRE
ALL TOWN SERVICES BE PROVIDED AS SETFORTH ABOVE IF DIFFERENTCHARACTERISTICS
OF TOPOGRAPHY, LAND USE AND POPULATION DENSITY ARE CONSIDERED A SUFFICIENT
BASIS FOR PROVIDING DIFFERENT LEVELS OF SERVICE.
4. THE SERVICE PLAN IS VALID FOR TEN (10) YEARS FROM THE EFFECTIVE DATE OF THE
ORDINANCE.
t
P TOWN
S PER
To: Mayor and Town Council
From: Bryan Ausenbaugh, Building Official
Building Inspections
Cc: Mike Land, Town Manager
Hulon T. Webb, Jr., P.E., Director of Development Services/Town Engineer
Re: Town Council Meeting — February 26, 2008
Date: February 19, 2008
Agenda Item:
Recognition of Daren Queen of Kings Hollow Custom Homes as the recipient of the Building
Inspection's 2007 Builder of the Year Award and Dale Schneider of Ryan Hartman Homes as
First Runner -Up and Scott Rackers previously of Highland Homes as Second Runner -Up of the
Award. (BA)
Description of Agenda Item:
Although the Town of Prosper is fortunate to have a great deal of experienced and qualified
home builders, Daren Queen of Kings Hollow Custom Homes, Dale Schneider of Ryan Hartman
Homes, and Scott Rackers previously of Highland Homes were chosen as recipients of the
Building Inspection's 2007 Builder of the Year Award because of their outstanding overall
performance. During the previous year, these builders had the fewest re -inspections, had their
projects ready for inspection when an inspection was scheduled, properly maintained their lots
on which they were building, consistently submitted complete building plans and applications,
and maintained exceptional communications with the Building Inspections Division. For these
reasons, the Building Inspections Division presented Daren Queen of Kings Hollow Custom
Homes as the recipient of the Building Inspection's 2007 Builder of the Year Award. Dale
Schneider of Ryan Hartman Homes was First Runner -Up and Scott Rackers previously of
Highland Homes was Second Runner -Up of the Award. Town staff is asking the Town Council
to recognize these individuals for their excellent work.
Budget Impact:
None
Legal Obligations and Review:
N/A
Agenda Item No. 8 - Page 1 of 2
Attached Documents:
Copies of the placards presented to the award recipients.
Board. Committee and/or Staff Recommendation:
Town staff recommends that the Town Council recognize Daren Queen of Kings Hollow Custom
Homes as the recipient of the Building Inspection's 2007 Builder of the Year Award and Dale
Schneider of Ryan Hartman Homes as First Runner -Up and Scott Rackers previously of
Highland Homes as Second Runner -Up of the Award.
Agenda Item No. 8 - Page 2 of 2
;ISPER
OWN OF ADMINISTRATION
To: Mayor and Town Council
From: Mike Land, Town Manager
CC:
Re: Town Council Meeting — February 26, 2008
Date: February 22, 2008
Agenda Item:
Consider and act upon a resolution authorizing the Town Manager to enter into a Letter of
Agreement with Arthur and Karie Dalton for the subdivision of three lots located in the southwest
quadrant of the intersection of Prosper Trail and Robinson Creek.
Description of Agenda Item:
Please see the attached request from the Dalton's. The Dalton's own property located in the
southwest quadrant of the intersection of Robinson Creek and Prosper Trail. The property
including their home is currently one large lot and is not part of the Preston Lakes subdivision. By
not being included in the Final Plat of the Preston Lakes Subdivision at the time that project was
constructed, no sewer line or service was provided to the Dalton's home. The Dalton's have
requested that the Town construct the sewer line to their home with the sewer line located in such
a way that the two new lots that they plan on creating will be able to be served as well. As
previously discussed, this situation should have been addressed at the time the Preston Lake's
subdivision was engineered and constructed and for what ever reason was not. As a result of this
oversight, the Town will be constructing the requested line, providing sewer service to their home.
The Dalton's will be dedicating a 10' easement along the Robinson Creek Dr. ROW in which the
line will be located. The cost to construct said service is estimated not to exceed $15,000. As part
of the discussions with the Dalton's, the Town was made aware of their plans to subdivide the
property creating two additional lots, thus the line is being upsized to accommodate a total of three
service lines. The cost to upsize the line and accommodate the two additional service lines is
minimal.
The Dalton's now are requesting that the Council consider waiving all or part of the applicable
impact and dedication fees associated with their pending subdivision of their remaining land.
There are no provisions in the impact or dedication fee ordinance for the waiving of the associated
fees without some type of investment or "credit" being in place to offset the corresponding fee. In
her memorandum Mrs. Dalton describes each of the fees that will be charged in the future to
whomever builds on one the lots the Dalton's plan on creating. At this point and in terms of direct
expenses to be paid by the Dalton's are only the zoning, platting, Sewer impact and sewer tap fees
for their respective "lot" on which their home is located (Lot 1). The balance of the fees for lots 2
Agenda Item No. 9 - Page 1 of 3
and 3 (due south of their home) are to be paid at the time the building permits are applied for and
picked up by whom ever the future residents might be. To be clear these are not fees paid up front
just because the lots are created and are only paid at the time of the issuance of a building permit,
in this case, a new home for a new resident.
While staff appreciates the Dalton's view point that they are not developers, the fact is that they are
creating two new lots. A future buyer of one of these two lots is no different than the buyer of a
vacant lot in Preston Lakes, La Cima or in the downtown residential area. The same impact and
dedication fees are charged at the time a building permit is applied for and picked up to all of these
new construction projects. The provisions for the payment of impact and dedication fees are not
site specific to one subdivision, in this case Preston Lakes, or other pending developments. As
you are all aware, the CIP and Parks plan includes improvements to facilities located in this
general area as well as all over the Town. For example, the expansion of Prosper Trail is a CIP
project for which impact fees paid for by new homeowners and new businesses contribute to the
cost of their construction. The same is true for example for the construction of the 57 acre
community park or for the acquisition and or improvement of other future parkland. The Town has
through its impact and dedication fee ordinances established and adopted policy that new
residents and businesses through their payment of these fees will help offset the cost of these
improvements so that current tax payers are not burdened if you will by the entire cost.
Budget Impact:
It appears from the request by Dalton's that they are specifically requesting a waiver of the
transportation impact fees and Park Improvement and Park Dedication Fees for lots 2 and 3.
According to the request, these fees total $8,116.00 for the transportation impact fees, $2,000.00
for the Park Improvement Fees, and between $6,000 to $8,000 for the park dedication fees. If
these fees were to be waived, basically that would mean that there would be these amounts not
available to contribute towards the purchase of ROW or property, the expansion of roads or the
improvement of new parks.
Legal Obligations and Review:
The request has been forwarded to Legal for Review.
Attached Documents:
1. A resolution authorizing the Town Manager to execute a letter of agreement between the
Town of Prosper and Arthur and Karie Dalton relating to transportation impact fees, park
improvement fees and park dedication fees.
2. A memorandum of Request from Arthur and Karie Dalton
3. A letter from the Town Attorney
4. An exhibit detailing the location of the 10' sanitary sewer line being constructed by the
Town to service the Dalton's home and the two potential lots being created.
Town Staff Recommendation:
Town staff does not recommend that the Town Council approve a letter of agreement relating to
transportation impact fees, the park improvement fees and the park dedication fee requirements for
the two new lots potentially being created. If the Town Council is able to negotiate with the
Dalton's some sort of "credit" or other consideration, then for example the Transportation Impact
Fee could be offset. Depending on the value of the consideration, other credit may be considered
for the Park Improvement and Park Dedication Fees. Without any type of "other consideration"
Agenda Item No. 9 - Page 2 of 3
there does not appear to be a mechanism in place to waive or abate any of the town's impact or
dedication fees. For discussion purposes only I have include the ROW map for Prosper Trail
showing the need to acquire approximately 4,200 square feet of the Dalton's property along their
northern property line. Using this as an example, as part of the widening of Prosper Trail, this
approximate 20' x 200' strip of land will need to be acquired for the pending widening of Prosper
Trail from 289 to the tollway. The impact fees that would normally be paid by the new residents
would be placed in the impact fee fund which in turn would be used to acquire ROW such as what
is shown to be currently owned by the Dalton's. Again, this is for illustrative purposes only but
does demonstrate the relationship between the purpose of impact fees and how they are used.
Agenda Item No. 9 - Page 3 of 3
ABERNATHY
ROEDER �
BOYD �
JOPLIN•P.C.
ATTORNEYS AT LAW
REBEccA BREWER
1700 Redbud Boulevard, Sufte 300 • P.O. Box 1210 • McKinney. Texas 75070-1210
Metro 214.544.4000 • Fax 214.544.4040
February 21, 2008
ATTORNEY -CLIENT PRIVILEGED
ATTORNEY WORK PRODUCT
Via PDF
Mike Land, Town Manager
Town of Prosper
121 W. Broadway
P.O. Box 307
Prosper, Texas 75078-0307
RE: Waiver of Impact Fees (Dalton Property)
Dear Mike:
rbrewer®abemaUry-law.com
Direct Diet 214.544.4009
In your email to me dated February 19, 2008, you stated that the Town Council has tabled
the Dalton request pending receipt of a written legal opinion on the Town's ability to waive impact
fees for the Dalton's. You have advised that the Dalton's simply want the fees waived without
consideration being provided by them to the Town. If these facts are incorrect, please advise. The
following response is based on information currently available and is subject to revision on receipt
of additional information.
As we have previously discussed, my concern is that if the Council should fail to require
some form of consideration for the waiver of impact fees in the Dalton matter, other individuals, who
have been required by the Town to provide consideration in exchange for the waiver, could bring
a § 1983 federal claim against the Council.
The authority for the Council to reach an agreement concerning impact fees is not derived
from a Town ordinance. The authority is found in Texas Local Government Code §395.018, which
states:
S09471.1
Mike Land
February 21, 2008
Page 2
A political subdivision is authorized to enter into an agreement with the owner of a
tract of land for which the plat has been recorded providing for the time and method
of payment of the impact fees.
Notice that the statute does not provide for a specific form of payment, it only states that the political
subdivision may enter into an agreement providing for a method of payment. It is this language that
allows political subdivisions to enter into agreements with landowners where impact fees, which
would have been imposed by the political subdivision, are waived in exchange for another form of
consideration. Instead of paying a fee, the landowner might, among other things, dedicate right-of-
way, upsize a water/sewer line or extend a line to serve additional areas of the Town.
If the Town should choose to waive impact fees for a particular landowner, without requiring
any consideration for the waiver, it is possible that other landowners, who have been required to
provide consideration in exchange for a waiver of impact fees, would bring a § 1983 federal lawsuit.
42 U.S.C. §1983 provides:
Every person who, under color of any statute, ordinance, regulation, custom, or usage
of any State or Territory... subjects, or causes to be subjected, any citizen of the
United States or any other person within the jurisdiction thereof to the deprivation
of rights, privileges, or immunities secured by the Constitution and the laws, shall be
liable to the party injured in an action at law, suit in equity, or other proper
proceeding for redress.
In Monell v. New York City Department of Social Services, 436 U.S. 658 (1978), the Supreme Court
held that municipalities and other local governmental bodies are "persons" within the meaning of
§ 1983. Therefore, governmental entities may be sued directly if a plaintiff alleges constitutional
harm through "a policy statement, ordinance, regulation, or decision officially adopted and
promulgated by that body's officers." Monell, 436 U.S. at 690. In order to establish that a city is
liable, the plaintiff must prove: (1) a municipal policy (2) attributable to the city's final policymaker
(3) that caused them to be deprived of a federal constitutional right. Lopez v. Houston Independent
School District, 817 F.2d 351, 354 (5" Cir. 1987).
Therefore, in the event that the Town waives impact fees without requiring consideration
from a landowner, other landowners who have been required to provide consideration for the waiver
have standing, pursuant to the Monell decision, to bring a claim against the Town or the Council.
Those potential plaintiffs would need to demonstrate that the policy of waiving impact fees, which
is decided on by the Council, caused them to receive unequal treatment under Texas Local
Government Code §395.018 . Again, §395.018 requires political subdivisions to define the time and
method of payment should a political subdivision and a landowner enter into an agreement
509471.1
Mike Land
February 21, 2008
Page 3
concerning impact fees. It is not a question of "if' consideration must be received by the political
subdivision, it is a question of "what form" the consideration will take.
It is the opinion of this firm that the Town should require a form of consideration from a
landowner in order to waive impact fees. Otherwise, the Town may be vulnerable to a § 1983 claim.
In the event the Town chooses to waive the fees for the Dalton's, we would be happy to assist the
Town in attempting to identify some form of consideration for said waiver.
If you have any questions regarding the information contained herein, please do not hesitate
to contact me.
Ve truly yours,
Rebecca H. Brewer
RHB/kb
509471.1
MEMO
TO: Mayor and Prosper Town Council
FROM: Arthur "Sug" and Karie Dalton ("Dalton's")
CC: Chris Copple and Hulon Webb
DATE: February 5, 2008
SUBJECT: Expenses Associated with Sale of Two Lots Located Adjacent to Dalton Home
As most of you are aware, we are in the process of attempting to sell two lots adjacent to our property to
prospective buyers, Tom and Elizabeth Thompson ("Thompson's"). The property is located on Robison
Creek Drive, just south of Prosper Trail. For your reference, attached as Exhibit A is an aerial view of the
property. As you may recall, after a final determination that our lots were previously overlooked when
laying the sewer lines, the Town has graciously agreed to correct this error, and we appreciate that
submission.
In order to sell these two lots, we researched the expenses associated with selling, zoning, platting and
building two houses (with the exception of the building permits). Needless to say, we were extremely
shocked at the total amounts expected to be paid by the Dalton's and/or Thompson's. We have attached as
Exhibit B a list of the costs detailing each expense. Our request is for you to review the attached list and
agree to waive some of these costs.'fees expenses. Chris and Hulon -- please notify us if there are any
additions, deletions or corrections to Exhibit B.
Our families have been in Prosper since the 1800's and we are very proud of our town. Although we hate
to see the town's beautiful farmland/pasture evolve into rows of houses, we understand that growth is
necessary to sustain existence. With that being said, we understand the logic in asking us to pay for some
of the fees, however it is unclear as to why we would be expected to pay all of the costs, specifically the
costs associated with the parks and roads. We are not developers and builders, we are loyal tax -paying
residents of Prosper. The cost base for parks and roads should already be more than compensated for by
the Preston Lakes development and the pending developments by the "real developers" to the north and
west who are in it for profit with huge lot counts that really have an environmental impact. The existing
development and the impact fees already paid for and the substantial increase in tax revenue by moving the
current ag tax base to residential for the property in question should make the impact to "parks and roads"
nonexistent. The Dalton's and Thompson's just want to build a house or two and be neighbors. If the
Town does not agree to waive some of these fees, these lots may not sell, and the Town will not reap the
tax revenues that residential lots will bring (versus the tax revenues for unimproved lots).
The contract between the Dalton's and the Thompson's was signed back in November, 2007. We have hit
several obstacles (including sewer issues, surveying, zoning and platting) that have pushed the closing (if
any) back to April, 2008, so your attention by voting on this matter immediately will be deeply appreciated.
We want to thank the Mayor, City Manager, City Planner, City Engineer and all of the Council Members
for taking the time to discuss these issues with us, and we truly appreciate your consideration of this matter.
EXHIBIT B
EXPENSES TO BE PAID BY EITHER BUYER OR SELLER:
Zoning Application and Expenses $ 510.00
Platting Expenses
$ 420.00
Sewer Impact Fees Lot #1
$1,977.00
Sewer Tap Fees Lot #1
$ 400.00
Water Impact Fee Lot #2
$2,595.00
Water Tap Fee Lot #2
$ 925.00
Sewer Impact Fee Lot #2
$1,977.00
Sewer Tap Fee Lot #2
$ 400.00
Roadway Impact Fee Lot #2
$4,058.00
Park Improvement Fee Lot #2
$1,000.00
Water Impact Fee Lot #3
$2,595.00
Water Tap Fee Lot #3
$ 925.00
Sewer Impact Fee Lot #3
$1,977.00
Sewer Tap Fee Lot #3
$ 400.00
Roadway Impact Fee Lot #3
$4,058.00
Park Improvement Fee Lot #3
$1,000.00
Park Dedication Fee
5% of value of lots (between $6,000 - $8,000)
Rollback Taxes
TBD
;t;$32,000.00 (not including rollback taxes)
Im
m
VARIABLE WIDTH RIGHT-OF-WAY DEDICATION
BEING a tract of land located in the J.R. TUNNEY SURVEY, ABSTRACT NO.916,
Town of Prosper, Collin County, Texas and being a part of a tract of land described in
Deed to Karie Dalton and Arthur Dalton, recorded in Volume 4233, Page 128, Deed
Records, Collin County, Texas and being more particularly described as follows:
COMMENCING at a 5/8 inch iron rod found in the existing North right-of-way line of
Prosper Trail (County Road No. 48), a variable width right-of-way, at the Southwest
comer of a tract of land described in Deed to Saddle Creek Investments, Ltd, recorded
in Document No. 20061025001532680, Deed Records, Collin County, Texas;
THENCE South 00 degrees 24 minutes 07 seconds East, leaving said existing North
right-of-way line, a distance of 81.11 feet to a 1/2 inch iron rod found in the existing
South right-of-way line of said Prosper Trail at the Northwest corner of said Dalton
tract, said point being the POINT OF BEGINNING of the tract of land herein
described;
THENCE North 89 degrees 31 minutes 24 seconds East, along said existing South
right-of-way line, a distance of 208.00 feet to a 1/2 inch iron rod found at the Northeast
corner of said Dalton tract;
THENCE South 00 degrees 29 minutes 36 seconds East, leaving said existing South
right-of-way line and along the East line of said Dalton tract, a distance of 21.50 feet to
a 1/2 inch iron rod with a yellow plastic cap stamped "DAA' set for comer in the
proposed South right-of-way line of said Prosper Trail;
THENCE North 89 degrees 45 minutes 29 seconds West, leaving said East line and
along said proposed South right-of-way line, a distance of 207.98 feet to a 1/2 inch iron
rod with a yellow plastic cap stamped "DAA' set for comer in the West line of said
Dalton tract;
THENCE North 00 degrees 36 minutes 26 seconds West, leaving said proposed South
right-of-way line and along said West line, a distance of 18.89 feet to the POINT OF
BEGINNING and containing 4,200 square feet or 0.096 acres of land, more or less.
R:\OataW07\07114\0fturmV 0oa\Easem nts\07114ESMMLdoc Page i of 2
VICINITY MAP
NOT 70 SCALE
AXXIUM LAND DEVELOPMENT
VOLUME 5816. PAGE 1739
D.R.C.C.T.
5 8" IRF
POINT OF
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IFS
D.R.C.C.T. - DEED RECORDS. COLON COUNTY. TEXAS
M.R.C.C.T. = MAP RECORDS, COWN COUNTY, TEXAS
O - 1/20 IRON ROD FOUND
(UNLESS OTHERWISE NOTED)
• - 1/2" IRON ROD WITH A YELLOW
PLASTIC CAP STAMPED "DAA" SET"
(UNLESS OTHERWISE NOTED)
NOTE: BASIS OF BEARINGS DERIVED FROM
THE TEXAS STATE PLANE COORDINATE
SYSTEM, NAD83, NORTH CENTRAL ZONE
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SADDLE CREEK INVESTMENTS, LTD.
DOCUMENT NO. 20061025001532680
D.R.C.C.T.
POINT OF
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mas ar sae
COUNTY OF COWN
VOLUME 5058. PAGE U51
D.R.C.C.T.
PROSPER TRAIL
(COUNTY ROAD NO. 48)
(VARIABLE WIDTH RIGHT—OF—WAY)
2 I 3
MICHAEL C. PERRY AND WIFE,
KARIE DALTON AND
PRESTON LAKES
CABINET 6, SLIDE 135
LEANN PERRY
DOC. N0. 93-0104780
ARTHUR DALTON
MR.C.C.T.
D.R.C.C.T.
VOLUME 4233,, PAGE 128
D.R.C.C.T.
VARIABLE WIDTH RIGHT-OF-WAY DEDICATION
4,200 SQUARE FEET OR 0.096 ACRES
J.R. TUNNEY SURVEY, ABSTRACT NO. 916
TOWN OF PROSPER, COLUN COON XA
DOWDEY, ANDERSON �
& ASSOCIATES, INC. Sean Shropshire
5MftCm&Dd%9A2W Phr4T=31111 Registered 1%lessional Land Surveyor
ffm972+9f1I4% Fao19TMM No.5674
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071148SKMI
PISPER
OWN OF
To: Mayor and Town Council
From: Matthew D. Denton, Town Secretary
Cc: Mike Land, Town Manager
Re: Code of Ethics
Agenda Item•
ADMINISTRATION
Consider and act upon an ordinance adopting a Code of Ethics as required by the Town Charter.
Description of Agenda Item:
Per Charter Section 3:18, the Town Council is required to adopt a Code of Ethics. The Code of
Ethics is for the purpose of, among other things, establishing and defining the bounds of
reasonable ethical behavior by the Town Council and all other appointed Town Officials.
Staff brought the ordinance to council at their November 27, 2007 meeting. At the meeting there
were numerous questions and comments from council. Staff met with the Town Attorney to
discuss the questions and comments. The Town Attorney stated none of the elements of the
ordinance are required by law. Council may remove, change, or add any sections of the
ordinance.
Staff removed and changed some of sections of the ordinance per the council recommendations
at the November 27th meeting.
Budget Impact•
N/A
Legal Obligations and Review:
Legal has reviewed the proposed Code of Ethics ordinance.
Attached Documents:
Proposed Code of Ethics ordinance
Item No. 10 Page 1 of 1
Board, Committee and/or Staff Recommendation:
Town staff recommends the Town Council approved the ordinance adopting the Code of Ethics.
Item No. 10 Page I of I
TOWN OF PROSPER, TEXAS ORDINANCE NO.08- xxx
AN ORDINANCE OF THE TOWN OF PROSPER, TEXAS, ESTABLISHING A CODE
OF ETHICS; PROVIDING FOR A PENALTY FOR THE VIOLATION OF THIS
ORDINANCE; PROVIDING FOR REPEALING, SAVINGS AND SEVERABILITY
CLAUSES; PROVIDING FOR AN EFFECTIVE DATE OF THIS ORDINANCE; AND
PROVIDING FOR THE PUBLICATION OF THE CAPTION HEREOF.
WHEREAS, the Town of Prosper desires for all of its citizens to have confidence in the
integrity, independence, and impartiality of those who act on their behalf in government; and
WHEREAS, this proposed Code of Ethics to define the bounds of reasonable ethical
behavior by the Town Council and all appointed Town Officials.
NOW, THEREFORE BE IT ORDAINED BY THE TOWN COUNCIL OF THE
TOWN OF PROSPER, TEXAS that this Ordinance be adopted in order to promote confidence
in the government of the Town of Prosper, and thereby enhance the Town's ability to function
effectively.
PART A: DECLARATION OF POLICY
SECTION 1: STATEMENT OF PURPOSE
It is essential in a democratic system that the public have confidence in the integrity,
independence, and impartiality of those who act on their behalf in government. Such confidence
depends not only on the conduct of those who exercise Official power, but on the availability of
aid or redress to all persons on equal terms and on the accessibility and dissemination of
information relating to the conduct of public affairs. The Prosper Town Council adopts this Code
of Ethics in order to promote confidence in the government of the Town of Prosper, and thereby
enhance the Town's ability to function effectively. The Code of Ethics establishes standards of
conduct, disclosure requirements, and enforcement mechanisms relating to Town Officials. The
Code of Ethics also covers others whose actions inevitably affect public faith in Town
government, such as former Town Officials, candidates for public office, and persons doing
business with the Town. By prohibiting conduct incompatible with the Town's best interests and
minimizing the risk of any appearance of impropriety, this Code of Ethics will further the
legitimate interests of democracy.
SECTION 2: DEFINITIONS
As used in this Code of Ethics, the following words and phrases have the meaning ascribed to
them in this Section, unless the context requires otherwise or more specific definitions set forth
elsewhere in this code apply:
Affiliated. Business entities are "Affiliated" if one is the parent or subsidiary of the other or if
they are subsidiaries of the same parent Business Entity.
Affinity. Relationship by "Affinity" is defined in Sections 573.024 and 573.025 of the Texas
Government Code. (See Attachment "A')
Code of Ethics Ordinance Page 1 of 18
Before the Town. Representation or appearance "Before the Town" means before the Town
Council or a Board, commission, or other Town entity.
Board. A Board, commission, or committee:
(1) Which is established by Town Ordinance, Town Charter, inter -local contract between
the Town and another Party, or state law; or
(2) Any part of whose membership is appointed by the Town Council, but does not
include a Board, commission, or committee that is the governing body of a separate
political subdivision of the state.
(3) The Prosper Economic Development Corporation is considered a Board for the
purpose of this Code of Ethics.
Business Entity. "Business Entity" means a sole proprietorship, partnership, firm, corporation,
limited liability company, holding company, joint-stock company, receivership, trust,
unincorporated association, or any other business entity recognized by law.
Code of Ethics. "Code of Ethics," "Ethics Code," or "this Code" means Parts A through H of
this Ordinance.
Confidential Government Information. "Confidential Government Information" is all
information held by the Town that is not available to the public under the Public Information
Act, (Chapter 552, Local Government Code ("the Act")) and any information from a meeting
closed to the public pursuant to the Texas Open Meetings Act, (Chapter 551, Local Government
Code) regardless of whether disclosure violates the Act and/or the Texas Open Meetings Act.
Town. "Town" means the Town of Prosper, Texas.
Consanguinity. Relationship by "Consanguinity" is defined in Sections 573.022 and 573.023 of
the Texas Government Code. (See Attachment "A')
Discretionary Contract. "Discretionary Contract" means any contract other than those which by
law must be awarded on a qualified bid basis.
Economic Interest. "Economic Interest" is legal or equitable property interests in land, chattels,
and intangibles, and contractual rights having a value of more than fifty thousand dollars
($50,000.00). Service by a Town Official as an Officer, director, advisor, or otherwise active
participant in an educational, religious, charitable, fraternal, or civic organization does not create
for that Town Official an Economic Interest in the property of the organization. "Economic
Interest" does not include the contract and/or business relationship that the Town Manager,
Town Secretary, and/or the Municipal Court Judges and Magistrates and/or their respective law
firms have with the Town.
Ownership of an interest in a mutual or common investment fund that holds securities or other
assets is not an Economic Interest in such securities or other assets unless the person in question
participates in the management of the fund.
Code of Ethics Ordinance Page 2 of 18
Gift. A voluntary transfer of property (including the payment of money) or the conferral of a
benefit having monetary value (such as the rendition of services or the forbearance of collection
on a debt), unless consideration of equal or greater value is received by the donor as quid pro
quo.
Indirect Ownership. A person "indirectly owns" an equity interest in a Business Entity where
the interest is held through a series of business entities, some of which own interests in others.
Matter. Matter is defined as the events or circumstances of a particular situation.
Official. The term "Official" or "Town Official" is defined as the following persons:
(1) The Mayor
(2) Members of the Town Council
(3) Municipal Court Judges and Magistrates
(4) The Town Manager
(5) The Assistant Town Manager
(6) The Town Secretary
(7) Town Attorney
(8) Members of the temporary or standing, current or future Boards, Commissions,
Governing Bodies, and Boards of Directors when those Boards, Commissions,
Governing Bodies, and Boards of Directors are appointed in their entirety or partially
by the Town Council of the Town.
Official Action. "Official Action" is defined as:
(1) any affirmative act (including the making of a recommendation) within the scope of, or
in violation of, a Town Official's duties, and
(2) any failure to act, if the Town Official is under a duty to act and knows that inaction is
likely to affect substantially an Economic Interest of the Town Official or any person
related to the Town Official in the first degree by consanguinity or affinity (See
Attachment "A ").
Official Information. "Official Information" is information gathered pursuant to the power or
authority of Town.
Partner. "Partner" is defined as partners in general partnerships, limited partnerships, limited
liability partnerships, joint ventures, and any other partnership allowed by law.
Personally and Substantially Participated. The requirement of having "personally and
substantially participated" in a Matter is met only if the individual in fact exercised discretion
relating to the Matter. The fact that the person had responsibility for a Matter does not by itself
establish that the person "personally and substantially participated" in the Matter.
Code of Ethics Ordinance Page 3 of 18
Representation. "Representation" is defined as all forms of communication and personal
appearances in which a person, not acting in performance of Official duties, formally or
informally, serves as an advocate for private interests, regardless of whether the Representation
is compensated. Lobbying, even on an informal basis, is a form of Representation.
Representation does not include appearance as a fact witness in litigation or other Official
proceedings.
Solicitation. "Solicitation" of subsequent employment or business opportunities is defined as all
forms of proposals and negotiations relating thereto.
SECTION 3: WORDING INTERPRETATION
The gender of the wording throughout this Ordinance shall always be interpreted to mean either
sex. All singular words shall include the plural, and all plural words shall include the singular.
All references to the laws of the State of Texas or the Home Rule Charter, Ordinances, or
Resolutions of the Town of Prosper Texas shall mean "as presently enacted or hereafter
amended".
PART B: PRESENT TOWN OFFICIALS
SECTION 1: IMPROPER ECONOMIC BENEFIT
(a) General Rule. Town Officials shall comply with Chapter 171 of the Local Government Code
regarding conflicts of interest.
(b) Affidavit and Abstention from Voting Required. Town Officials shall comply with Chapter
171 of the Local Government Code regarding Affidavits and Abstention from Voting.
SECTION 2: UNFAIR ADVANCEMENT OF PRIVATE INTERESTS
(a) General Rule. A Town Official may not use his Official position to grant or secure, or
attempt to grant or secure, for any person (including himself) any form of special
consideration, treatment, exemption, or advantage beyond that which is lawfully available to
other persons. This rule does not apply to actions taken by a Town Official in the legislative
process.
(b) Special Rules. The following special rules apply in addition to the general rule:
(1) Reciprocal Favors. A Town Official may not enter into an agreement or understanding
with any other person that Official Action by the Official will be rewarded or
reciprocated by the other person, directly or indirectly.
(2) Appointment of Relatives/Anti-Nepotism. A Town Official shall not nominate, appoint
or vote to nominate or appoint any person to a paid position with the Town who is
related to the Town Official within the third degree of Consanguinity or second degree
by Affinity.
(3) No Town Council member who is on the Board of a nonprofit organization may vote
on any funding request by that nonprofit organization, unless the nonprofit
Code of Ethics Ordinance Page 4 of 18
organization has a Board of directors or trustees appointed in whole or in part by the
Town Council.
(c) Recusal and Disclosure. A Town Official whose conduct would otherwise violate Part B,
Section 2(b)(2) shall openly declare that he/she must be recused based upon the Anti -
Nepotism provisions and such Town Official shall not be counted as present for the agenda
item for purposes of the tally or determining the total votes required.
SECTION 3: GIFTS (Note: Chapter 176 of Local Government Code requires disclosure form
for $250 over 12 month Period)
(a) General Rule. A Town Official shall not solicit, accept, or agree to accept any Gift or benefit
having a total aggregate value more than $250 over a consecutive 6 month period from the
same person or entity.
(b) Special Applications. Subsection (a) does not include:
(1) a Gift to a Town Official relating to a special occasion, such as a wedding;
anniversary, graduation, birth, illness, death, or holiday, provided that the value of
the Gift is fairly commensurate with the occasion and the relationship between the
donor and recipient;
(2) reimbursement of reasonable expenses for travel authorized in accordance with
Town policies;
(3) a public award or reward for meritorious service or professional achievement,
provided that the award or reward is reasonable in light of the occasion;
(4) a loan from a lending institution made in its regular course of business on the
same terms generally available to the public;
(5) a scholarship or fellowship awarded on the same terms and based on the same
criteria that are applied to other applicants; or
(6) admission to an event in which the Town Official is participating in connection
with Official duties;
(7) lawful campaign contributions;
(8) attending social functions, ground breakings, or civic events pertinent to the
public relations and operations of the Town;
(9) exchanging Gifts with his family and relatives;
(10) exchanging Gifts at church functions or Town parties or functions where only
Town Officials and their employees are invited or attended;
Code of Ethics Ordinance Page 5 of 18
(11) exchanging Gifts or receiving a bonus from their place of full-time employment;
(12) meals for the Town Official, and the Town Official's spouse, paid for by another
party; or
(13) participation in charitable events where the ticket price, entry fee or the like is
waived for the Town Official and/or the Town Official's spouse.
(c) Gifts to Closely Related Persons. A Town Official shall take reasonable steps to persuade a
parent, spouse, child, stepchild, or other relative within the second degree of Consanguinity
or Affinity (see Attachment "A') not to solicit, accept, or agree to accept any Gift or benefit
which would violate Section 3(a) if the Official solicited, accepted, or agreed to accept it.
SECTION 4: CONFIDENTML INFORMATION
(a) Improper Access. A Town Official shall not use his position to secure Official Information
about any person or entity for any purpose other than the performance of Official
responsibilities.
(b) Improper Disclosure or Use. A Town Official shall not disclose Confidential Government
Information or use such information to further or impede anyone's personal interests.
This Section 4 does not prohibit:
(1) any disclosure or use that is authorized or required by law; or
(2) the confidential reporting of illegal or unethical conduct to authorities designated by
law.
SECTION S: REPRESENTATION OF PRIVATE INTERESTS
(a) Representation before the Town Council, Town Board or other Town Commission. A Town
Official shall not represent any person, group, or entity, other than himself, or his spouse or
minor children, before the Town.
(b) Representation in Litigation Adverse to the Town.
(1) Salaried Officials. A salaried Town Official shall not represent any person, group, or
entity, other than himself, or his spouse or minor children, in any litigation to which
the Town is a party, if the interests of that person, group, or entity are adverse to the
interests of the Town.
(2) Non -Salaried Officials. A non -salaried Official shall not represent any person, group,
or entity, other than himself, or his spouse or minor children, in any litigation to which
the Town is a party, if the interests of that person, group, or entity are adverse to
interests of the Town and the matter is substantially related to the non -salaried
Official's duties to the Town.
Code of Ethics Ordinance Page 6 of 18
SECTION 6: PUBLIC PROPERTYAND RESOURCES
A Town Official shall not use, request, or permit the use of Town facilities, personnel,
equipment, or supplies for private purposes, except:
(a) pursuant to duly adopted Town policies; or
(b) to the extent and according to the terms that those resources are lawfully available to the
public.
SECTION 7: POLITICAL ACTIVITY
Limitations on the political activities of Town Officials are imposed by state law and the Town
Charter. In addition, the following ethical restrictions apply:
(a) Influencing Subordinates. A Town Official shall not, directly or indirectly, induce or attempt
to induce any subordinate of the Official:
(1) to participate in an election campaign, contribute to a candidate or political committee,
or engage in any other political activity relating to a particular party, candidate, or
issue, or
(2) to refrain from engaging in any lawful political activity, except activities prohibited by
the Town Charter.
(b) Official Vehicles. A Town Official shall not display or fail to remove campaign materials on
any Town vehicle under his control.
Limitations on the use of public property and resources for political purposes are imposed by
Part B, Section 6. A Town Official may not spend or authorize the spending of public funds or
use or authorize the use of public property for "political advertising", as that term is defined in
the Texas Election Code, as it exists or may be amended.
A general statement merely encouraging another person to vote does not violate this rule.
SECTION 8: ACTIONS OF OTHERS
(a) Violations by Other Town Officials. A Town Official shall not knowingly assist or induce, or
attempt to assist or induce, another Town Official to violate any provision in this Code of
Ethics.
(b) Using Others to Engage in Forbidden Conduct. A Town Official shall not violate the
provisions of this Code of Ethics through the acts of another.
SECTION 9: INTERACTION WITH TOWN STAFF
(a) Town Council members' and Board Members' interaction with the Town Manager or staff
must recognize the lack of authority in any individual Town Council member, Board
Code of Ethics Ordinance Page 7 of 18
Member or group of Town Council members or Board Members, except when explicitly
authorized by the Town Council or Board.
(b) Town Council members and Board Members will not make public individual judgments of
the performance of the Town Manager, his staff, the Town Secretary, or the Municipal Judge
except as authorized by ordinance or the Town Charter.
SECTION 10: TOWN COUNCIL INTERACTION WITH GENERAL PUBLIC
Town Council members' and Board Members' interaction with public, press or other entities
must recognize the same limitation as expressed in Part B, Section 9 and the inability of any
Town Council member or Board Member or group of Town Council members or Board
Members to speak for the Town Council or Board except when explicitly authorized by the
Town Council, that Board, or the Town Charter.
SECTION 11: AFFIDAVIT AND ABSTENTION FROM VOTING REOUIRED
(a) If a local public official has a substantial interest in a business entity or in real property,
the official shall file, before a vote or decision on any a matter involving the business
entity or the real property, an affidavit stating the nature and extent of the interest and
shall abstain from further participation in the matter if:
(1) Ownership of 10 percent or more of the voting stock or shares of the business entity; or
(2) Ownership of either 10 percent or more, or $15,000 or more of the fair market value of
the business entity; or
(3) Funds received by the affiant from the business entity exceed 10 percent of the affiant's
gross income for the previous year; or
(4) Ownership of a legal or equitable interest in subject real estate with (said interest) having
a fair market value of $2,500 or more; or
(5) Is related to a person (in the first degree, by consanguinity or affinity, as determined
under Chapter 573, Government Code), who has a substantial interest as such term is
defined in Subsection 171.002 of the Local Government Code.
(b) The affidavit must be filed with the official record keeper of the governmental entity.
(c) If a local public official is required to file and does file an affidavit under Subsection (a),
the official is not required to abstain from further participation in the matter requiring the
affidavit if a majority of the member of the governmental entity of which the official is a
member is composed of persons who are likewise required to file and who do files
affidavits of similar interest on the same official action.
PART C: FORMER TOWN OFFICIALS
Code of Ethics Ordinance Page 8 of 18
SECTION]: CONTINUING CONFIDENTL4LITY
A former Town Official shall not use or disclose Confidential Government Information acquired
during service as a Town Official. This rule does not prohibit:
(a) any disclosure or use that is authorized or required by law; or
(b) the confidential reporting of illegal or unethical conduct to authorities designated by law.
SECTION 2: SUBSEQUENT REPRESENTATION
(a) Representation by a Former Board Member. A person who was a member of a Board shall
not represent before that Board any person, group, or entity other than himself, or his spouse
or minor children, for a period of six (6) months after the termination of his Official duties.
(b) Representation before the Town. A former Town Official shall not represent any person,
group, or entity, other than himself, or his spouse or minor children, before the Town for a
period of six (6) months after termination of his Official duties, unless hired by the Town
under the authority granted within the Town Charter.
(c) Representation in Litigation Adverse to the Town. A former Town Official shall not, absent
consent from the Town, represent any person, group, or entity, other than himself, or his
spouse or minor children, in any litigation to which the Town is a parry, if the interests of that
person, group, or entity are adverse to the interests of the Town and the Matter is one in
which the former Town Official Personally and Substantially Participated prior to
termination of his Official duties.
SECTION 3: DISCRETIONARY CONTRACTS
(a) Impermissible Interest in Discretionary Contract or Sale. This Subsection applies only to
contracts or sales made on a discretionary basis, and not to contracts or sales made on a
competitive bid basis. Within six (6) months of the termination of Official duties, a former
Town Council member shall not have a financial interest, direct or indirect, in any contract
with the Town, and shall not be financially interested, directly or indirectly, in the sale to the
Town of any land, materials, supplies, or service. Any violation of this Section, with the
knowledge, expressed or implied, of the individual or Business Entity contracting with the
Town Council shall render the contract involved voidable by the Town Manager or the Town
Council. A former Town Council member has a prohibited "financial interest" in a contract
with the Town, or in the sale to the Town of land, materials, supplies, or service, if any of the
following individuals or entities is a party to the contract or sale:
(1) the former Town Council member;
(2) his/her parent, child, stepchild, or spouse;
(3) a Business Entity in which the former Town Council member directly or indirectly
owns:
(A) ten (10) percent or more of the voting stock or shares of the Business Entity, or
Code of Ethics Ordinance Page 9 of 18
(B) ten (10) percent or more of the fair market value of the Business Entity; or
(4) a Business Entity of which any individual or entity listed in Part C, Section 3(a)(1) or
3(a)(3) is:
(A) a subcontractor on a Town contract; or
(B) an Affiliated business or Partner.
(b) Prior Participation in Negotiation or Awarding. A former Town Council member may not,
within one (1) year of the termination of Official duties, perform work on a compensated
basis relating to a Discretionary Contract, if he Personally and Substantially Participated in
the negotiation or awarding of the contract.
(c) Definitions. For purposes of Part C, Section 3(a) of this rule:
(1) A "former Town Council member" is any person who, immediately prior to
termination of Official duties, was the Mayor or a member of the Town Council.
(2) The term "contract" means any contract other than a contract for the personal services
of the former Town Council member.
(3) The term "service" means any services other than the personal services of the former
Town Council member.
PART D: PERSONS DOING BUSINESS WITH THE TOWN
SECTION 1: PERSONS SEEKING CONTRACTS
(a) Disclosure of Parties, Owners, and Closely Related Persons. An individual or Business Entity
seeking a contract from the Town is required to complete the Conflict of Interest
Questionnaire required by Chapter 176 of the Local Government Code.
(b) Political Contributions. Any individual or Business Entity seeking a Discretionary Contract
from the Town must disclose, on a form provided by the Town, all political contributions
totaling two hundred fifty dollars ($250) or more within the past twenty-four (24) months
made directly or indirectly to any member of Town Council, or to any political action
committee that contributes to Town Council elections, by any individual or Business Entity
whose identity must be disclosed under Part D, Section 1(a). Indirect contributions by an
entity include, but are not limited to, contributions made through the officers or owners of the
Business Entity.
(c) Briefing Papers and Open Records. Briefing papers prepared for the Town concerning any
proposed Discretionary Contract shall reveal the information disclosed in compliance with
Part D, Sections 1(a) and 1(b), and that information shall constitute an open record available
to the public.
PART E: MEMBERS OF THE PUBLIC AND OTHERS
Code of Ethics Ordinance Page 10 of 18
Part E applies to current and former Town Officials, persons doing business with the Town, and
lobbyists, as well as to members of the public and any other person (including Business Entities
and nonprofit entities).
SECTION 1: FORMS OF RESPONSIBILITY
No person shall induce, attempt to induce, conspire with, aid or assist, or attempt to aid or assist
another person to engage in conduct violative of the obligations imposed by this Code of Ethics.
SECTION 2: STANDARDS OF CONDUCT
(a) No Town officer, employee, or advisory board member or their spouses shall knowingly:
(1) Accept or solicit any gift, favor, service, or thing of value from any person group or
business entity that might reasonably tend to influence him in the discharge of his official
duties. This prohibition shall not apply to:
(a) An occasional non pecuniary gift, insignificant in value or;
(b) An award publicly presented in recognition of public service or;
(c) Any gift which would have been offered or given to him if he were not a Town
officer, employee, or advisory board member, or their spouses.
(2) Grant in the discharge of his or her official duties any improper favor, service or thing
of value to any person group or business entity;
(3) Accept or solicit any gift, favor, service or thing of value, including a promise of future
employment, of sufficient economic value that it might reasonably tend to influence him,
in the discharge of his official duties, from any person, group or business entity:
(a) Who is licensed or has a substantial interest in any business entity that is licensed
by any Town department, agency, commission, or board on which the Town
officer, employee, or advisory board member serves; or
(b) Who has a financial interest in any proposed ordinance or decision upon which
the Town officer, employee, or advisory board member may or must act or make
a recommendation; provided, however, that any Town officer, employee, or
advisory board member and their spouses, may accept travel and related expenses
to attend ceremonial functions, provided that such acceptance and attendance
have been approved by the Town council prior to the occurrence of the
ceremonial function.
(4) Knowingly discloses any confidential information gained by reason of the position of the
officer, employee or advisory board member concerning the property, operations,
policies, or affairs of the Town, or use such confidential information to advance any
personal interest, financial or otherwise, of such officer, employee, or advisory board
member, or others. Section (a)(4) of this section shall not preclude disclosure of such
Code of Ethics Ordinance Page 11 of 18
confidential information in connection with any investigation or proceeding regarding
whether there has been a violation of the standards of conduct set forth by this article.
(5) Use one's position or office of employment or Town facilities, personnel, equipment, or
supplies to secure special privileges or exemptions for himself or others or for the private
gain of the Town officer, employee, advisory board member or his spouse.
(6) Engage in any exchange, purchase or sale of property, goods or services with the Town,
except:
(a) Rendering services to the Town as an officer employee or advisory board
member;
(b) Paying taxes, fines, utility service, or filing fees;
(c) Executing and performing any developer's agreement or plat in compliance with
laws and regulations applicable to any person provided however that if any Town
ordinance rule or regulation allows any discretion by the appropriate officers or
employees of the Town in the interpretation or enforcement of such ordinance
rule or regulation any such discretion shall be exercised in favor of the Town in
connection with any such developer's agreement or plat;
(d) Advisory board members who are not otherwise officers or employees of the
own may engage in any exchange purchase or sale of property goods or services
with the Town or enter into a contract with the Town provided that the board on
which they are a member has no advisory function or cognizance direct or indirect
present or prospective with respect to the transaction in which such advisory
board member engages or proposes to engage.
(7) Hold himself / herself out as representing the Town in any capacity other than that for
which he was appointed, elected, or hired.
(8) Engage in or accept private employment or render a service when such employment or
service is incompatible with the proper discharge of his or her official duties or would
tend to impair his or her independent judgment in the performance of his or her official
duties.
(9) Make or permit the unauthorized use of Town owned vehicles equipment materials or
property.
(10) Grant any special consideration treatment or advantage to any citizen beyond that which
is available to every other citizen.
(11) After termination of service or employment with the Town, appear before any board or
commission of the Town in relation to any case proceeding or application in which he or
Code of Ethics Ordinance Page 12 of 18
she personally participated or which was under his or her active consideration during
the period of his or her service or employment.
(12) Transact any business in his or her official capacity with the Town with a business entity
in which he she has a substantial interest.
(13) Engage in any dishonest or criminal act or any other conduct prejudicial to the
government of the Town or that reflects discredit upon the government of the Town.
(14) Knowingly perform or refuse to perform any act in order to deliberately thwart the
execution of Town ordinances, rules, or regulations or the achievement of official Town
programs.
(b) No officer, advisory board member, or Town employee shall knowingly represent
directly or indirectly any person group or business entity:
(1) Before the Town Council or any department agency board or commission of the Town;
(2) In any action or proceeding against the interests of the Town or in any litigation in which
the Town or any department agency board or commission thereof is a party; or
(3) In any action or proceeding in the municipal courts of the Town which was instituted by a
Town officer or employee in the course of his or her official duties or a criminal
proceeding in which any Town officer or employee is a material witness for the
prosecution.
(c) No member of a Town board or commission shall knowingly represent, directly or
indirectly, person, group or business entity:
(1) Before the Town council or the board or commission of which he is a member;
(2) Before a board or commission which has appellate jurisdiction over the board or
commission of which he is a member;
(3) In any action or proceeding against the interests of the Town or in any litigation in which
the Town or any department, agency, board, or commission thereof is a party; or
(4) In any action or proceeding in the municipal courts of the Town which was instituted by a
Town officer or employee in the course of his official duties, or a criminal proceeding in
which any Town officer or employee is a material witness for the prosecution.
(d) The restrictions in this section do not prohibit the following:
(1) A Town employee or officer of an employee organization appearing before the Town
Council or a Town department, agency, board, or commission to address employment
matters.
Code of Ethics Ordinance Page 13 of 18
(e) The restrictions in this section do not apply to business associates of officers, employees,
or advisory board members, but only personally to the officers, employees, and
advisory board members themselves.
PART F: ETHICS REVIEW PROCESS
SECTION 1: DEFINITIONS
As used in Part F, the term "ethics laws" is defined as this Code of Ethics, Article XIV of the
Town Charter, and Chapters 171 and 176 of the Texas Local Government Code. The term
"ethical violation" is defined as violations of any of these enactments.
SECTION 2: COMPLAINTS
(a) Filing. Any person who believes that there has been a violation of the ethics laws may file a
notarized affidavit with the Town Secretary. The "Affidavit" shall:
(1) identify the person or persons who allegedly committed the violation;
(2) provide a statement of the facts on which the complaint is based;
(3) to the extent possible, identify the rule or rules allegedly violated; and
(4) be sworn to in the form of an affidavit and be based on personal knowledge of the
affiant and be subject to the laws of perjury.
The complainant may also recommend other sources of evidence that the Investigator (as defined
below) should consider and may request a hearing.
(b) Confidentiality. No Town Official shall reveal information relating to the filing or processing
of a Complaint except as required for the performance of Official duties. All papers relating
to a pending Complaint are confidential.
(c) Notification. A copy of a Complaint meeting Part F, Section 2(a) shall be promptly
forwarded by the Town Secretary to the Town Attorney and to the person charged in the
Complaint. The person charged in the Complaint shall also be provided with a copy of the
ethics rules and shall be informed:
(1) that, within fourteen (14) days of receipt of the Complaint, he may file a sworn response with
the Town Secretary;
(2) that failure to file a response does not preclude the Town Attorney from selecting an
Investigator to process the Complaint;
(3) that a copy of any response filed by the person charged in the Complaint will be provided by
the Town Secretary to the complainant, who may within seven (7) days respond by sworn
writing filed with the Town Secretary, a copy of which shall be provided by the Town
Secretary to the person charged in the Complaint;
(4) that the person charged in the Complaint may request a hearing; and
(5) that Town Officials have a duty to cooperate with the Town Attorney, pursuant to Part F,
Section 3 of this Code of Ethics.
Code of Ethics Ordinance Page 14 of 18
(d) Assistance. The Town Secretary shall provide information to persons who inquire about the
process for filing a Complaint.
SECTION 3: PROCEDURE FOR COMPLAINTS AGAINST TOWN OFFICL4LS
Within three (3) business days after receipt, it shall be the duty of the Town Attorney to select a
third party attorney who does not perform legal work for the Town to conduct the investigation
(the "Investigator") on behalf of the Town and notify the Town Council, Town Manager and the
person charged in the Complaint of the Investigator selected. The Town Council shall approve
or reject an Investigator selected by the Town Attorney at its next meeting for which there is
time to post the item on the agenda as required by law. If the Town Council rejects an
Investigator, the Town Attorney shall select another one in accordance with this Section. Within
seven (7) business days after being approved as the Investigator by the Town Council, the
Investigator shall make the initial determination/evaluation of the Complaint as to whether or not
the facts alleged, if true, would at face value constitute a violation of this Code of Ethics. If it is
determined by the Investigator that the facts as alleged would not constitute a violation, then at a
meeting posted in accordance with the notice requirements of the Texas Open Meetings Act, the
Investigator shall present a written report describing in detail the nature of the Complaint and the
findings of the Investigator to the Town Council at its next regularly scheduled meeting. A
majority of those Town Council members not implicated by the allegation(s) may either invoke
the investigatory procedure contained herein or reject the Complaint. Any vote regarding the
Complaint shall be in a public hearing called for that purpose.
If it is determined by the Investigator that the facts as alleged could constitute a violation of this
Code of Ethics, then the Investigator shall, within seven (7) business days after receipt of the
Complaint, notify the Mayor and Town Council of the existence and nature of the Complaint.
The Mayor or any three (3) members of the Town Council may cause a meeting of the Town
Council to convene, whether regular or special, within seven (7) business days after being so
notified by the Investigator to further consider said Complaint in Executive Session and/or an
Open Meeting, as permitted by the Texas Open Meetings Act. At said meeting, the Investigator
shall present an initial written report ("Initial Report") to the Town Council describing in detail
the nature of the Complaint and his findings and conclusions as to a possible violation of this
Code of Ethics. The Investigator shall have all of the powers of investigation as is given to the
Town Council by reason of Article III, Section 3.16 of the Town Charter. The Investigator shall
report back to the Town Council in writing as soon as possible but in no event more than fifteen
(15) business days from the day of the Initial Report or twenty-one (21) days from the day the
appointment of the Investigator was approved by the Town Council, whichever is later. Said
report shall be comprehensive in support of the Investigator's opinion as to whether or not a
violation of this Code of Ethics occurred.
PART G: ENFORCEMENT MECHANISMS
In addition to other remedies provided by law, any one or more of the following remedies may
be imposed upon a Town Official with respect to violations of this Code of Ethics. If it has been
determined that a Town Council member has violated a provision of this Code of Ethics, the
Town Council member who is in violation shall not participate in decisions regarding any
Code of Ethics Ordinance Page 15 of 18
penalty(ies) to be imposed under this Part G and said Council Member shall not be counted as
present for the agenda item for purposes of the tally or determining the total votes required.
SECTION]: DISCIPLINARY ACTION
Town Officials who engage in conduct that violates this Code of Ethics may be notified, warned,
reprimanded, suspended, or removed from office or employment by the Town Council.
SECTION 2: CIVIL FINE
Any person, whether or not a Town Official, who violates any provision of this Code of Ethics is
subject to a fine not exceeding five hundred dollars ($500.00), such amount to be determined by
the Town Council.
SECTION 3: PROSECUTION FOR PERJURY
Any person who files a false sworn Complaint under Part F, Section 2(a) of this Code of Ethics
is subject to criminal prosecution for perjury under the laws of the State of Texas.
SECTION 4: VOIDING OR RATIFICATION OF CONTRACT
If an ethics review finds that there has been a violation of any provision of this Code of Ethics
that is related to the awarding of a contract, the Town Council must vote on whether to ratify or
void the contract. Such action shall not affect the imposition of any penalty or remedy contained
in this Code of Ethics or any other law.
SECTION S: DISOUALIFICATION FROM CONTRACTING
(a) Any person (including business entities and non-profit entities) who intentionally or
knowingly violates any provision of Part D (Persons Doing Business with the Town) may be
prohibited by the Town Council from entering into any contract with the Town for a period
not to exceed three (3) years.
(b) It is a violation of this Code of Ethics:
(1) for a person prohibited from entering into a contract with the Town to enter, or
attempt to enter, into a contract with the Town during the period of disqualification
from contracting; or
(2) for a Town Official to knowingly assist a violation of Part G, Section 5.
(c) Nothing in this Section shall be construed to prohibit any person from receiving a service or
benefit, or from using a facility, which is generally available to the public, according to the
same terms.
(d) A Business Entity or nonprofit entity may be disqualified from contracting based on the
conduct of an employee or agent, if the conduct occurred within the scope of the employment
or agency.
PART H: ADMINISTRATIVE PROVISIONS
Code of Ethics Ordinance Page 16 of 18
SECTION]: OTHER OBLIGATIONS
This Code of Ethics is cumulative of and supplemental to applicable state and federal laws and
regulations. Compliance with the provisions of this Code of Ethics shall not excuse or relieve
any person from any obligation imposed by state or federal law regarding ethics, financial
reporting, lobbying activities, or any other issue addressed herein.
Even if a Town Official is not prohibited from taking official action by this Code of Ethics,
action may be prohibited by duly promulgated personnel rules, which may be more stringent.
SECTION 2: EFFECTIVE DATE
This Code of Ethics shall take effect on November 27, 2007, following its adoption and
publication as required by law. Individuals seated as Town Officials on the effective date of this
Ordinance shall be bound by it and shall sign a written acknowledgement of receipt and
understanding of this Code of Ethics within 30 days of the effective date. All Town Officials
elected, appointed or retained following the effective date of this Code of Ethics shall sign a
written acknowledgement of receipt and understanding of this Code of Ethics before performing
any of the duties or functions of the Town Official's position.
SECTION 3: DISTRIBUTIONAND TRAINING
(a) At the time of application for a position of Town Official, every applicant shall be furnished
with a copy of this Code of Ethics. No application shall be considered complete without a
signed acknowledgement of receipt and understanding of this Code of Ethics by the
applicant.
(b) The Town Attorney or Town Manager as designated by the Town Council shall develop
educational materials and conduct educational programs for the Town Officials on the
provisions of this Code of Ethics, Article XIV of the Town Charter, and Chapters 171 and
176 of the Texas Local Government Code. Such materials and programs shall be designed to
maximize understanding of the obligations imposed by these ethics laws.
SECTION 4: SEVERABILITY
If any provision of this Code of Ethics is found by a court of competent jurisdiction to be invalid
or unconstitutional, or if the application of this Code of Ethics to any person or circumstances is
found to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect the
other provisions or applications of this Code of Ethics which can be given effect without the
invalid or unconstitutional provision or application.
READ, CONSIDERED, PASSED AND APPROVED by the Town of Prosper, Texas, on
this the 261h day of February, 2008.
Charles Niswanger, Mayor
Code of Ethics Ordinance Page 17 of 18
ATTEST:
Matthew Denton, TRMC
Town Secretary
Code of Ethics Ordinance Page 18 of 18
To:
Mayor and Town Council
From:
Kirk McFarlin, Police Chief
Cc:
Mike Land, Town Manager
Matthew Denton, Town Secretary
Re:
Town Council Meeting —February 26, 2008
Date:
February 12, 2008
Agenda Item:
Consider and act upon a resolution to become a Public Safety Answering Point for 9-1-1 calls
originating within the Town of Prosper.
Description of Agenda Item:
The City of Frisco will no longer be able to dispatch for the Town of Prosper's Emergency
Services starting in 2009 due to the City of Frisco changing over to a new radio system which
will not be conducive to continuation of dispatch services to Prosper. The Collin County
Sheriff's Office has agreed to dispatch for the Town of Prosper Emergency Services until the
time that Prosper's need for service outgrows the infrastructure which is present in the Collin
County Sheriff's Office Dispatch Center. With Prosper's growth potential, it is necessary to
prepare to provide our own dispatch services in the near future.
NCTCOG has money allocated to them for funding of 911 equipment for the Town of Prosper
and action is necessary to keep this funding available for this project. Passage of this resolution
is the first step towards securing the funding and moving the project forward.
Budget Impact:
None at this time.
Legal Obligations and Review:
Resolution reviewed and found correct by Town's attorney
Attached Documents:
Resolution No.
Board, Committee and/or Staff Recommendation:
Staff recommends passage of the resolution in order to secure the funding for 911 equipment
and mark the first step towards the Town of Prosper's dispatch center.
Item No. 11 Page 1 of 1
RESOLUTION NO.
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PROSPER,
TEXAS, REGARDING THE TOWN OF PROSPER, TEXAS, BECOMING A
PUBLIC SAFETY ANSWERING POINT FOR 911 EMERGENCY CALLS
WITHIN THE TOWN OF PROSPER, TEXAS; AND PROVIDING FOR AN
IMMEDIATE EFFECTIVE DATE
WHEREAS, the Town of Prosper, Texas, operates its own Town of Prosper Police
Department; and
WHEREAS, the Town of Prosper, Texas, operates its own Town of Prosper Fire
Department; and
WHEREAS, the Town of Prosper, Texas, operates its own ambulance service within the
Town of Prosper; and
WHEREAS, the Town Council of the Town of Prosper, Texas, desires to become a
public safety answering point for 9-1-1 emergency calls.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN
OF PROSPER, TEXAS, AS FOLLOWS:
Section 1. That the foregoing recitals are hereby found to be true and correct findings
of the Town of Prosper, Texas, and are fully incorporated into the body of this resolution.
Section 2. That the Town of Prosper, Texas, requests any and all assistance from
Collin County, Texas, the State of Texas, and any other public entities involved in the 9-1-1
response process, in becoming a public safety answering point for 9-1-1 call within the Town of
Prosper, Texas.
Section 3. That the Town Manager, or his designee, is fully authorized to take all
actions necessary for the Town of Prosper, Texas, to be designated a public safety answering
point for 9-1-1 calls within the Town of Prosper, Texas.
Section 4. This resolution shall become effective when the Town of Prosper fully
implements a dispatch center with 9-1-1 call taking capability.
DULY RESOLVED by the Town Council of the Town of Prosper, Texas, on this 261h
day of February, 2008.
Charles Niswanger, Mayor
Town of Prosper
ATTEST:
Matthew Denton, City Secretary
Town of Prosper
APPROVED AS TO FORM AND LEGALITY:
Richard Abernathy, Town Attorney
p
TOWN
;ISPER
To: Mayor and Town Council
DEVELOPMENT
SERVICES
From: Hulon T. Webb, Jr., P.E., Director of Development Services/Town Engineer
CC: Mike Land, Town Manager
Re: Town Council Meeting — February 26, 2008
Date: February 22, 2008
Agenda Item:
Recess into closed session in compliance with Section 551.001 et. Seq. Texas Government Code,
to wit: Section 551.087 to discuss economic development negotiations for the Custer Retail
Project.
Description of Agenda Item:
In July 2007, the Town Council and the Town of Prosper Economic Development Corporation
(PEDC) approved a Chapter 380 Economic Development Program Agreement with Custer -
Prosper, L.P., that among other things obligated the Town and PEDC to contribute a total of
$1,300,000 towards construction of a sanitary sewer line from Wilson Creek south to the proposed
retail development at the northwest corner of Custer Road and US 380. Since that time revisions
to the proposed design and increase in construction costs have resulted in a significant increase in
the original cost estimate for the project. As outlined in the attached memo from the design
engineer, the cost estimate has increased from $1,300,000 to $1,629,000. Of the estimated
$329,000 only $124,000 is considered by Town staff to be attributed to unforeseen conditions and
is recommended to be added to the agreement.
Along with the recommended cost obligation increase to the Town and PEDC, recommended
clarifications to the agreement including the addition of a Construction Manager into the agreement
have resulted in the need to amend the existing agreement. A summary of the significant revisions
are as follows:
• Section 3.03(b): Addition of the Construction Manager into construction contract execution
and approval of responsible bidder.
• Section 3.03(c):
o Add requirement that the Town review all monthly invoices within fifteen (15) days
and make payment of approved invoices within thirty (30) days of receipt.
a Provide further definition of eligible costs including fees for a Construction Manager
in the amount of $50,000.
• Section 3.03(d):
o Revision of the maximum amount of the Sewer Line Loan from $1,300,000 to
$1,425,000 due to unforeseen costs associated with the acquisition of an easement
Agenda Item No. 12b - Page 1 of 2
from the Walnut Grove Cemetery and requirements by the property owner north of
the cemetery estimated at $124,000
o Addition of a paragraph stipulating that the $14,250 the Town paid towards the total
acquisition cost of $34,250 for the Walnut Grove Cemetery easement be repaid to
the Town through the one -percent (1%) Sales and Use Tax generated from the
property.
o Addition of a paragraph stating that the Town will waive construction and inspection
fees associated with the construction of the sewer line.
• Section 3.03(e):
o The existing agreement started the estimated three (3) year time frame for
repayment of the sewer line loan from the date of the first certificate of occupancy.
The paragraph has been revised to start the time frame either at the earlier of March
31, 2009 or the date of the first certificate of occupancy of an anchor tenant leasing
more than 5 acres of land in the project.
• Section 4.02:
o The existing agreement started the Program Grant Payments to the Developer no
earlier than (3) years from the date of the first certificate of occupancy once the
sewer line loan had been paid in fill. The paragraph has been revised to start the
time frame no earlier than three (3) years from either the earlier of March 31, 2009
or the date of the first certificate of occupancy of an anchor tenant leasing more than
5 acres of land in the project.
Budget Impact:
The existing Chapter 380 Economic Development Program Agreement caps the Town's
participation for eligible costs for the sewer line at $1,300,000. This amendment revises that cap to
$1,425,000 for costs associated with the design and construction of the sewer line and $14,250 for
the acquisition costs for the sanitary and water easement from the Walnut Grove Cemetery. In
accordance with the existing agreement, the developer is still responsible for all cost overruns.
Legal Obligations and Review:
The amendment has been approved by the Town Attorney.
Attached Documents:
The following documentation is being provided for review:
• Existing Chapter 380 Economic Development Program Agreement
• Revised Construction Cost Estimate Memo from G.E. Walker and Associates
• First Amendment to Chapter 380 Economic Development Program Agreement
Board. Committee and/or Staff Recommendation:
Town staff recommends that the Town Council approve the first amendment to the Chapter 380
Economic Development Program Agreement to facilitate the development of the Custer Retail
Project located at the corner of US 380 and Custer Road.
Agenda Item No. 12b - Page 2 of 2
FIRST AMENDMENT TO
CHAPTER 380 ECONOMIC DEVELOPMENT PROGRAM AGREEMENT
THIS FIRST AMENDMENT TO CHAPTER 380 ECONOMIC DEVELOPMENT
PROGRAM AGREEMENT (this "Amendment") is executed among the TOWN OF PROSPER,
TEXAS, a Texas home rule municipal corporation ("Town"), CUSTER-PROSPER, L.P., a
Texas limited partnership ("Developer"), and BROOKHOLLOW CONSTRUCTION
MANAGEMENT, L.P., a Texas limited partnership ("Construction Manager").
Recitals
A. Town and Developer have heretofore entered into a certain Chapter 380
Economic Development Program Agreement effective as of July 17, 2007 (as amended by this
First Amendment, herein called the "Agreement"). Unless otherwise defined herein, the terms
used in this Amendment shall have the same meaning given to such terms in the Agreement.
B. Developer agreed to construct the Sewer Line pursuant to the terms of the
Agreement. A substantial portion of the Sewer Line will be located on property owned by 310
Prosper, L.P. and 104 Prosper, L.P. (collectively, "Property Owners'). Developer and
Construction Manager, an affiliate of Property Owners, have entered into that certain
Development Agreement effective as of even date herewith (the "Development Agreement")
regarding the design, construction and installation of the Sewer Line. Town has acknowledged
and consented to the Development Agreement. Town and Developer now desire to amend the
Agreement to provide that Construction Manager will supervise the construction of the Sewer
Line as set forth in the Development Agreement and have certain rights and obligations as
described in this Amendment.
C. Town and Developer desire to further amend the Agreement to clarify certain
other provisions of the Agreement as set forth below. Construction Manager joins in this
Amendment for the purposes set forth below.
Agreements
NOW, THEREFORE, for and in consideration of the foregoing recitals, together with
other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, Town, Developer and Construction Manager agree as follows:
1. All references in the Agreement to the construction of the Sewer Line by Developer shall be
understood to refer to the construction of the Sewer Line pursuant to the Development
Agreement and an approved construction contract executed by Construction Manager and
Developer.
2. Section 1.01(a) of the Agreement is hereby deleted in its entirety and replaced with the
following:
"(a) "Agreement" shall mean the Chapter 380 Economic Development Program
Agreement dated as of July 17, 2007, as amended by the First Amendment to
Page 1
Chapter 380 Economic Development Program Agreement, dated as of
2008."
3. Section 3.02 of the Agreement is hereby deleted in its entirety and replaced with the
following:
"Section 3.02 Commencement of Construction. Developer covenants and agrees
to commence construction of the Sewer Line on or before March 31, 2008 (said
date of commencing construction being the "Construction Commencement
Date"). Developer shall be deemed to have "commenced construction" upon (A)
the execution of all of the easements for the Sewer Line; and (B) approval of the
Sewer Line's engineering plans, specifications and designs by Town's engineer,
which approval shall not be unreasonably withheld or delayed; and (C) the
preconstruction meeting between Developer and the Town's engineer. Upon
request, Town agrees to provide Developer and Construction Manager with a
written notice acknowledging that the Construction Commencement Date
occurred on or before March 31, 2008 or setting forth any unsatisfied conditions
thereto."
4. Section 3.03(b) of the Agreement is hereby deleted in its entirety and replaced with the
following:
"Developer shall bid the construction of the Sewer Line with three (3) qualified
contractors and shall provide copies of the bids received for such items to Town
within five (5) business days of Developer's receipt of same. Developer and
Construction Manager shall: (i) jointly execute a contract, which contract shall be
assignable to the Town, for the construction of the Sewer Line with a responsible
bidder who provides goods or services at the best value as mutually and
reasonably determined by Town, Developer and Construction Manager; and (ii)
construct the Sewer Line in accordance with the Town -approved engineering
plans, specifications and designs."
5. Section 3.03(c) of the Agreement is hereby deleted in its entirety and replaced with the
following:
"Developer shall cause the contractor selected pursuant to Section 3.03(b)(i) (the
"Construction Contractor") to submit interim monthly invoices to the Town
during the construction process for the Sewer Line. Town shall review all
monthly invoices within fifteen (15) days after receipt thereof and notify
Developer and Construction Manager in writing of Town's reasons for rejecting
payment of all or any portion of a submitted invoice. All approved portions of a
submitted monthly invoice shall be paid by Town to Construction Contractor
within thirty (30) days after receipt thereof. All invoices for the cost of design,
construction and engineering document preparation, bidding, permits and fees,
surveying, clearing and grubbing, sewer line construction, storm water
management, erosion control, geotechnical studies and testing and other
reasonable and typical construction costs shall be eligible for payment including a
Page 2
construction management fee payable to Construction Manager in the amount of
$50,000 (collectively, "Eligible Costs"). Invoices for Eligible Costs shall be
approved if they are consistent with approved contracts or represent reasonable
and typical construction costs. All payments shall be made directly to the
approved contractor unless Construction Manager or Developer has already paid
same in which event Town shall reimburse Construction Manager or Developer,
as applicable, in the amount of such approved payments. The Town shall not be
obligated to pay any payments to Construction Contractor or reimbursements to
Developer or Construction Manager until Developer or Construction Manager has
(i) delivered to Town all easements necessary for perpetual operation and
perpetual maintenance of the Sewer Line, in a form acceptable to the Town,
naming Town as the grantee, and (ii) filed, or caused to be filed, all easements
necessary for construction of the Sewer Line. The Town shall not be obligated to
make the final Sewer Line payment until as -built permanent easements for the
perpetual operation and perpetual maintenance of the Sewer Line naming Town
as grantee have been recorded in the Real Property Records of Collin County,
Texas.
6. Section 3.03(d) of the Agreement is hereby deleted in its entirety and replaced with the
following:
"The funds for the Sewer Line shall come from certificate(s) of obligation,
general obligation bonds or other financing instruments issued by the Town. The
Town shall be responsible for payment of all the Eligible Costs associated with
the construction of the Sewer Line up to a maximum of ONE MILLION FOUR
HUNDRED TWENTY FIVE THOUSAND AND NO/100 DOLLARS
($1,425,000.00) ("Sewer Line Loan"). The funds for the Sewer Line Loan are
currently available and will be used by Town to pay for the Sewer Line as set
forth in this Agreement. Developer (not Construction Manager) will be obligated
to repay the Sewer Line Loan to the extent it is not fully repaid pursuant to the
procedure set forth in Section 3.03(e) below. Any actual costs of construction in
excess of the Sewer Line Loan amount shall be the responsibility of Developer,
which Developer agrees to escrow or cause to be escrowed with the Town upon
the approval of bids and/or costs in excess of $1,425,000.00.
Off -site easement costs totaling $34,250.00 have been paid as follows: (i) Town
$14,250; (ii) Developer $10,000; and (iii) Construction Manager $10,000. After
full repayment of the Sewer Line Loan as provided for in Section 3.03(e) below,
Town shall continue to collect the one percent (1%) of the Sales and Use Tax
generated at the Project until Town has received full reimbursement for the
$14,250 paid by Town toward the easement costs set forth above.
Town agrees to waive construction and inspection fees in connection with the
construction of the Sewer Line.
7. The last sentence of Section 3.03(e) of the Agreement is hereby deleted in its entirety and
replaced with the following:
Page 3
"Notwithstanding the foregoing, should the Project fail to generate sufficient
Sales and Use Tax to repay the Sewer Line Loan and interest for a period of three
(3) years after the earlier of (i) March 31, 2009, or (ii) the date the first certificate
of occupancy is issued to an anchor tenant (an anchor tenant is defined as a tenant
that is leasing or purchasing more than 5 acres of land in the Project) in the
Project, the Town shall continue to credit the one percent (1.00%) of the Sales and
Use Tax to repayment of the Sewer Line Loan and interest until it has been repaid
in full; provided, however, that the seven (7) year period set forth in Section 4.02
shall commence on the third anniversary of the earlier of (i) March 31, 2009 or
(ii) the date the first certificate of occupancy issued to an anchor tenant (an anchor
tenant is defined as a tenant that is leasing or purchasing more than 5 acres of land
in the Project) in the Project despite the fact that Developer will not be entitled to
any Program Grant Payments until the Sewer Line Loan and off -site easement
costs of $14,250 have been repaid in full."
8. The first sentence of Section 4.02 of the Agreement is deleted in its entirety and replaced
with the following:
"As an incentive for Developer to use in obtaining the best possible tenants and
occupants for the Project, commencing upon the first full calendar quarter
following the calendar quarter in which the Sewer Line Loan has been repaid as
set forth in Section 3.03(e) but in any event, no later than three (3) years after the
earlier of March 31, 2009 or (ii) the date Developer obtains the first certificate of
occupancy for an anchor tenant (an anchor tenant is defined as a tenant that is
leasing or purchasing more than 5 acres of land in the Project), and continuing for
each succeeding calendar quarter for a period of seven (7) years or until the
aggregate payments by Town to Developer totals FOUR MILLION SEVEN
HUNDRED TWENTY-FIVE THOUSAND AND N0/100 DOLLARS
($4,725,000.00), whichever is sooner, the Town covenants and agrees to make
Program Grant Payments to Developer equaling one hundred percent (100%) of
the Town's one percent (1.00%) Sales and Use Tax generated by and attributed
solely to Project's sales."
9. The following shall be added as Section 5.04 (f):
"(f) Notwithstanding the foregoing, if an Event of Default occurs under Section
5.01(c), Town will permit Construction Manager to complete the construction of
the Sewer Line pursuant to the construction contract awarded to the Construction
Contractor pursuant to Section 3.03(b) without curing said default and Town will
continue to make payments and/or reimbursements pursuant thereto as set forth in
Section 3.03(c)."
10. The introductory phrase in Section 5.02 of the Agreement is hereby deleted in its entirety
and replaced with the following:
"Section 5.02 Town Defaults. Each of the following shall constitute an Event of
Default on the part of Town under this Agreement:"
Page 4
11. The following shall be added to the last sentence of Section 5.03:
"Additionally, Construction Manager shall have the right (but not the obligation)
to cure any Event of Default by Developer under this Agreement."
12. The last sentence of Section 5.04 (c) of the Agreement is hereby deleted in its entirety and
replaced with the following:
"The initial recording of this Agreement and all amendments thereto shall not
create any lien on the Property. The lien referenced in this section shall take
effect as of the day Town records the lien as a result of an Event of Default by
Developer pursuant to Section 5.01 (the "Lien Recording Date") and the priority
of such lien shall commence upon the Lien Recording Date and shall only apply
to the property owned by Developer at the time of the Lien Recording Date."
13. The following shall be added as the last sentence of Section 6.01:
"Notwithstanding the above, any termination pursuant to this Section 6.01 will
not negate Town's obligation to fund the Sewer Line Loan."
14. The following shall be added as the last sentence of Section 7.05:
"Until completion and acceptance by Town of the Sewer Line, this Agreement
may not be assigned by Developer without the prior written consent of
Construction Manager."
15. The following sentence shall be added as the last sentence of Section 7.11:
"Copies of all notices sent pursuant to this Agreement shall also be sent to
Construction Manager at 5400 Dallas Parkway, Frisco, Texas 75034, Attn.: Jim
Williams, Jr."
16. This Amendment may be executed in multiple original counterparts. Each counterpart shall
be deemed an original, and when the counterparts are taken together, they shall be deemed to be
one and the same instrument. Signed facsimiles of this Amendment shall be effective as
originals.
17. Except as modified hereby, the Agreement remains unchanged and in full force and effect.
Page 5
IN WITNESS WHEREOF, the parties have executed this Amendment as of
52008.
Developer:
CUSTER-PROSPER, L.P.,
a Texas limited partnership
By: Cross Development Prosper-Catlyn, L.P.,
a Texas limited partnership,
its General Partner
By: Cross Development Prosper-Catlyn GP,
L.L.C.,
a Texas limited liability company,
its General Partner
By:_
Name:
Title:
Town:
TOWN OF PROSPER, TEXAS
By:
Name:
Title:
Construction Manager:
BROOKHOLLOW CONSTRUCTION
MANAGEMENT, L.P., a Texas limited partnership
By:Brookhollow Land Management, L.L.C.
a Texas limited liability company,
its General Partner
Jim Williams, Jr., President
Page .gsr/ 17606/0100/02200s
G . E. WALKER & ASSOCIATES, L.L.C.
ENGINEERS * SURVEYORS
MEMORANDUM
To: Brookhollow Construction Management, LP
Attn: Connie Harries
From: George E. "Jed" Walker, Jr., P. E.
Project Name: Brookhollow — Prosper Interceptor
Project No.: 1-01165
Re: Engineer's Opinion of Probable Cost
Date: February 7, 2008
Attachment
Attached herewith is our "Engineer's Opinion of Probable Cost" based upon the final plans and specifications
for the Brookhollow — Prosper Interceptor Project. As you are aware, since we submitted the Schematic Plan
to you in September 2007, we have been required to make several alignment revisions as well as a couple
of design changes, all of which have increased the estimated cost of the Project above that of the
September 2007 estimate. A comparison of the original estimate (based upon the September 2007
Schematic Plan) versus the new estimate (attached) is shown below:
• Original Estimate (September 2007) based upon original Schematic Plan $1,300,000
• New Estimate (attached) based upon Final Plans $1,629.000
Total Estimated Cost Increase $329,000
These changes which created the cost increases are easily identified and quantified, as detailed below:
1. Pipe realignment through the Walnut Grove Cemetery: The original Schematic Plan specified the pipe
route through the Cemetery to be approximately 50 feet west of the Custer Road right-of-way line. This
alignment minimized the length of boring and encasement to only 230 feet through the Cemetery. After
lengthy negotiations with the Cemetery Board of Directors, the only permissible, acceptable route
through the Cemetery was via an existing, platted, 6-foot aisle located approximately 22 feet west of the
right-of-way line of Custer Road. This horizontal alignment change also created the need to extend the
bore and encasement due to the fact that the pipeline could not be built that close to Custer Road by
way of conventional trenching methods at depths of approximately 40 feet. Therefore, the estimated
cost to lengthen the bore and encasement due to the alignment change is approximately $124,000.
2. Wilson Creek Crossing: The original Schematic Plan and corresponding cost estimate for the Wilson
Creek Crossing was based upon a flanged, ductile iron pipe crossing the creek, aerially, supported by
reinforced concrete piers. Below is a picture similar to our original idea of the crossing:
�!
it
7
Figure 1.1: D.I.P. Pipe -on -Supports
600 AUSTIN AVENUE, SUITE 20 • WACO, TEXAS • 76701
PHONE: 254-714-1402 • FAX: 254-714 0402
— 2 — February 8, 2008
The Town of Prosper will not allow the ductile iron pipe -on -support technique of crossing the Creek. The
Town's requirements include encasing the carrier (sewer) pipe in a larger steel pipe which is supported
on reinforced concrete piers similar to those shown above. Further, Clark Development Company will
only grant an easement through their property north of the Cemetery if the pipeline through the creek
banks of Wilson Creek are bored and encased instead of by trenching. Consequently, the increased
cost to construct the Wilson Creek crossing is approximately $77,000.
3. Pipe material cost increases: We have confirmed with two pipe suppliers that PVC pipe materials and
appurtenances, in the diameters associated with this Project, have increased in price by 20 to 28%
since the original estimate was completed in September 2007. Consequently, the estimated impact that
this material cost increase has on the Project cost is $49,500.
4. Increased depth of sanitary sewer: The profile grade line of the proposed sanitary sewer interceptor
needed to be deeper in some areas than originally predicted for the September 2007 cost estimate.
The deeper pipeline and associated depths for the manholes resulted in an increase to the cost
estimate of approximately $40,000.
5. Miscellaneous items: Several miscellaneous items such as "Site Clearing and Tree Protection," "Special
Excavation and Safety Procedures for Crossing the Gas Transmission Line," and "Special Procedures to
Locate and Protect the 72" Irving Waterline and Fiber Optic Cable" have been identified during the final
design phase which were not itemized on the September 2007 cost estimate. The estimated cost for
these items is approximately $33,500.
6. Additional surveying services: Alignment changes and route adjustments resulted in approximately
$5,000 of additional surveying services.
A summary of the estimated cost increases to the Project since September 2007 is outlined in the Table
below:
Table 1.1: Cost Increase Summary
Item Description
Cost Increase
1. Pipe Realignment through Cemetery
$124 000.00
2. Wilson Creek Crossing
$77 000.00
3. Pipe Material Cost Increases
$49 500.00
4. Increased Depth of Sanitary Sewer
$40,000.00
5. Miscellaneous Items
$33 500.00
6. Additional Surveying Services
$5,000.00
Total Cost Increase
$329 000.00
Please note that the original cost estimate included a Contingency Allowance of approximately $100,000 and
this exact same allowance amount is being utilized in this new estimate.
G. E. WALKER & ASSOCIATES, L.L.C.
Engineer's Opinion of Probable Cost
Brookhollow - Prosper Interceptor
Project No. 1-01165
7-Feb-08
Item Description Quantity Unit Unit Price Total Amount
1.00
General Conditions
1.01
Mobil., Barricade, 8 Project Incidentals
1
LS
$
49,868.00
$
49,868.00
1.02
Storm Water Pollution Prevention Plan
1
LS
$
3,000.00
$
3,000.00
1.03
Seeding
1
LS
$
15,000.00
$
15,000.00
1.04
Site Clearing Including Tree Protection
1
LS
$
25,000.00
$
25,000.00
1.05
Storm Water Pollution Prevention Implementation
1
LS
$
20,000.00
$
20,000.00
1.06
Special Excavation, Backfill, and Safety Procedures for
Crossing Energy Transfer 10" Gas Transmission Line
1
LS
$
3,000.00
$
3,000.00
1.07
Special Procedures to Locate and Protect City of Irving Fiber
Optic Cable and Verify Minimum 4' Clearance to 72" Waterline
1
LS
$
3,000.00
$
3,000.00
1.08
Trench Safety Plan
1
LS
$
3,000.00
$
3,000.00
Subtotal General Conditions
$
121,868.00
2.00 Wastewater Improvements
2.01
24" ASTM F-679 PVC 115 PSI Including Excavation 8 Backfill
758
LF
$
125.00
$
94,750.00
2.02
24" ASTM F-679 PVC 46 PSI Including Excavation 8 Backfill
2,743
LF
$
110.00
$
301,730.00
2.03
24" D.I.P. Including Concrete Encasement at Crossings
150
LF
$
100.00
$
15,000.00
2.04
12" SDR-35 PVC Including Excavation 8 Backfill
2,495
LF
$
55.00
$
137,225.00
2.05
12" D.I.P. in Concrete Encasement
100
LF
$
65.00
$
6,500.00
2.06
8" SDR-35 PVC Including Excavation 8 Backfill
100
LF
$
30.00
$
3,000.00
2.07
8" SDR-35 PVC and Concrete Encasement at Crossings
50
LF
$
50.00
$
2,500.00
2.08
24" PVC ASTM F679 115psi in 36" Steel Encasement Pipe
600
LF
$
114.00
$
68,400.00
2.09
Bore and Encase with 36" Steel Casing (9/16" Thickness)
600
LF
$
400.00
$
240,000.00
2.10
Concrete Encasement
0
LF
$
175.00
$
-
2.11
Open Cut 36" (3/8" Thick) Casing Pipe
75
LF
$
300.00
$
22,500.00
2.12
24" ASTM F-679 PVC 115 PSI Installed in 36" Casing
75
LF
$
75.00
$
5,625.00
2.13
5' Diameter Manhole (0'-5' Deep) with Standard Cover on
24" Line
3
EA
$
4,000.00
$
12,000.00
2.14
5' Diameter Manhole (0'-5' Deep) with Standard Cover on
12" Line
5
EA
$
4,000.00
$
20,000.00
2.15
5' Diameter Manhole with Pressure Manhole Lid on 24" Line
10
EA
$
4,500.00
$
45,000.00
2.16
5' Diameter Manhole with Pressure Manhole Lid on 12" Line
2
EA
$
4,500.00
$
9,000.00
2.17
5' Diameter Manhole with Pressure Manhole Lid with Vent or
24" Line
2
EA
$
6,500.00
$
13,000.00
2.18
Extra Depth for 5' Diameter Manhole Over 5' Deep
228
VF
$
400.00
$
91,200.00
2.19
24" Plug and Stubout Detail
1
EA
$
400.00
$
400.00
2.20
12" Plug and Stubout Detail
1
EA
$
400.00
$
400.00
2.21
8" Plug
1
EA
$
400.00
$
400.00
Page 1 of 2
Item
Description
Quantity
Unit
Unit Price
Total Amount
2.22
Connect 24" Sewer to Exist. Manhole
1
EA
$
3,400.00
$
3,400.00
2.23
Aerial Crossing Supports
2
EA
$
10,000.00
$
20,000.00
2.24
Bore & Encase with 36" Steel Casing 1/2" Thickness
235
LF
$
400.00
$
94,000.00
2.25
24" ASTM F-679 PVC 115 PSI Installed in 36" Casing at Aeria:
Crossing
235
LF
$
75.00
$
17,625.00
2.26
Dry Stone Riprap (TxDOT Item 427)
1,800
SF
$
4.00
$
7,200.00
2.27
Trench Safety Implementation
6,349
LF
$
3.00
$
19,047.00
2.28
Contingency Allowance
1
LS
$
96,648.50
$
96,648.50
Subtotal Wastewater Improvements
$
1,346,660.50
Total Construction Cost $ 1,468,418.50
Engineering Fee $ 96,400.00
Route Survey and Topographic Surve� $ 22,980.00
Additional Route Survey for Revised Alignment $ 5,000.00
Construction Staking (Bedford) 7,326 LF $ 1.25 $ 9,157.50
Easement Preparation (on -site, 1 each) (Bedford) $ 6,100.00
Easement Preparation (off -site, 2 each) (Bedford) $ 3,000.00
Geotechnical Engineering Report $ 7,900.00
Materials Testing Allowance $ 10,000.00
TOTAL PROJECT COST
$ 1,628,956.00
Does not include construction layout staking or easement preparation.
Page 2 of 2
TOWN OF PROSPER, TEXAS
AND
CUSTER-PROSPER, L.P.
CHAPTER 380 ECONOMIC DEVELOPMENT
PROGRAM AGREEMENT
This CHAPTER 380 ECONOMIC DEVELOPMENT PROGRAM AND AGREEMENT
(this "Agreement') is made and entered into by and between the TOWN OF PROSPER, TEXAS
("Town"), a Texas home rule municipal corporation, and CUSTER-PROSPER, L.P., a Texas
limited partnership ("Developer") to be effective as of July 17, 2007 ("Effective Date")
RECITALS
A. Developer has applied to Town for assistance to locate and construct a retail
shopping center ("Project') to be generally located at the northwest corner of Custer Road and
U.S. Highway 380, in the Town of Prosper, Texas ("Property" ).
B. Developer desires to enter into this Agreement pursuant to Chapter 380 of the
Texas Local Government Code ("Chapter 380" ).
C. The Town desires to provide, pursuant to Chapter 380, an incentive to Developer
to develop the Project as depicted in Exhibit B of this Agreement.
D. The Town has the authority under Chapter 380 to make loans or grants of public
funds for the purposes of promoting local economic development and stimulating business and
commercial activity within the Town of Prosper, Texas.
E. The Town has determined that a grant of funds to Developer will serve the public
purpose of promoting local economic development and enhancing business and commercial
activity within the Town.
F. The Town and Developer desire that development of the Project, as a retail
shopping center, include construction and/or installation of certain infrastructure improvements
set forth in this Agreement that will encourage increased economic development in the Town,
provide significant increases in the Town's sales tax revenues, and improve the Town's ability to
provide for the health, safety and welfare of its citizens.
G. The sale of products and services at the Project will achieve the public purpose of
promoting economic development and diversity, increasing employment, reducing
unemployment and underemployment, and expanding commerce and stimulating business and
commercial activity in the State, in Collin County, and in the Town of Prosper.
H. The Town has concluded and hereby finds that this Agreement clearly promotes
economic development in the Town of Prosper and, as such, meets the requisites under Chapter
380 and further, is in the best interests of the Town and Developer.
I. The Town has concluded and hereby finds that this Agreement clearly promotes
economic development in the Town of Prosper and, as such, meets the requirements of Article
III, Section 52-a of the Texas Constitution by assisting in the development and diversification of
the economy of the state, by eliminating unemployment or underemployment in the state, and by
the development or expansion of commerce within the State.
J. The Town has concluded and hereby finds that the construction of certain sanitary
sewer improvements benefitting the Property and adjacent property, as depicted in Exhibit C of
this Agreement, and the construction of certain off -site roadway improvements, as required by
the Texas Department of Transportation and Town ordinances.
AGREEMENTS
NOW, THEREFORE, for and in consideration of the agreements contained herein, and
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Town and Developer agree as follows:
ARTICLE I
DEFINED TERMS
Section 1.01 Defined Terms. Each reference in this Agreement to any of the following
terms shall have the meaning set forth below for each such term:
(a) "Agreement" has the meaning set forth in the introductory paragraph.
(b) "Chapter 38d' has the meaning set forth in Recital B.
(c) "Construction Commencement Date" has the meaning set forth in Section
3.02.
(d) "Developer" has the meaning set forth in the introductory paragraph of
this Agreement. For the purposes of this Agreement Developer's address is c/o Cross
Development, LLC, One Bent Tree Tower, 16475 N. Dallas Parkway, Suite 550, Addison,
Texas 75001; fax (972) 447-0015.
(e) "Event of Default" means and include any of the Events of Default set
forth below in ARTICLE V.
(f) "Force Majeure Event" has the meaning set forth in Section 7,10.
(g) "PEDC' means the Prosper Economic Development Corporation, a
Section 4A economic development corporation operating pursuant to Section 4A of the
Development Corporation Act of 1979, article 5190.6 of the Texas Revised Civil Statutes,
as amended.
Chapter 380Agreement
Town of Prosper, Texas - Cross Development, L.L. C
(h) "Property" means an approximately forty (40) acre tract of land located at
the northwest corner of U.S. 380 and Custer Road in Collin County, Texas, and is more
particularly described in Exhibit A.
(i) "Program Grant' or "Program Grant Payment' mean the economic
development grants paid by the Town or PEDC to Developer in accordance with this
Agreement, computed with reference to sales and use taxes generated by the Project. The
Program Grant Payment shall be based upon reports filed by the Project's tenants with the
State Comptroller's office, and the Program Grant Payment shall be confirmed by the Area
Report provided by the State Comptroller to the Town for the Project.
6) "Project' means the new retail shopping center developed by Developer
pursuant to this Agreement as depicted on Exhibit B.
(k) "Sales and Use Tax" mean the Town's municipal sales and use tax, at the
rate of one percent (1.0%), pursuant to Section 321.103(a) of the Texas Tax Code, as
amended.
(1) "Sewer Line" means a sewer line to be constructed by Developer as
depicted on Exhibit C.
(m) "Sewer Line Completion Date" has the meaning set forth in Section 3.03.
(n) "Sewer Line Loan" has the meaning set forth in Section 3.03W.
(o) "State" means the State of Texas.
(p) "State Comptrolle►" means the Office of the Texas Comptroller of Public
Accounts, or any successor agency.
(q) "Termination Notice" has the meaning set forth in Section 5.04(a).
(r) "Town" has the meaning set forth in the introductory paragraph of this
Agreement. For purposes of this Agreement, Town's address is Town of Prosper, Attn:
Town Manager, 121 W. Broadway, P.O. Box 307, Prosper, Texas 75078; fax: 972-346-9335.
Section 1.02 Certain Other Terms. Terms not defined in this Section 1.01 have the
meaning set forth elsewhere in this Agreement.
ARTICLE H
TERM
This Agreement shall be effective from the Effective Date, and shall continue in effect
until expiration of the Program Grant Payments as set forth in Section 4.02, unless terminated
sooner pursuant to this Agreement.
Chapter 380Agreement
Town of Prosper, Texas - Cross Development, L.L. C.
ARTICLE III
DEVELOPER'S OBLIGATIONS
Section 3.01 Project. Developer covenants and agrees the Project shall be constructed
in general conformity with the concept plan presented by the Developer, as depicted in the site
plan attached as Exhibit B of this Agreement. Notwithstanding the foregoing, the parties
acknowledge that development of this type of project is a highly iterative process. Developer
shall have the right to change and modify the site plan, in its business judgment, including but
not limited to changes in the phasing, location, square footage and projected uses of any of the
buildings and improvements depicted on the site plan as long as the Project, as so modified,
complies with all applicable Town regulations, including, but not limited to, Town ordinances
requiring plan and permit approvals.
Section 3.02 Commencement of Construction. Developer covenants and agrees to
commence construction of the Sewer Line on or before March 31, 2008 (said date of
commencing construction being the "Construction Commencement Date'). Developer shall be
deemed to have "commenced construction" upon (A) the execution of this Agreement and all of
the Sewer Line easements; and (B) approval of the Sewer Line's engineering plans,
specifications and designs by Town's engineer, which approval shall not be unreasonably
withheld or delayed; and (C) the preconstruction meeting between Developer and the Town's
engineer.
Section 3.03 Construction of Sewer Line. Developer covenants and agrees to construct
Sewer Line in general conformity with and as depicted in Exhibit C of this Agreement.
Developer covenants and agrees to complete construction of the Sewer Line by December 31,
2008 ("Sewer Line Completion Date').
(a) Easements for the Sewer Line shall be filed and recorded prior to the
commencement of construction of the Sewer Line or any portion thereof, unless a right of
entry is secured, a condemnation award is tendered with the Registry of the Court and/or a
right of possession by any other means is obtained on an earlier date.
(b) Developer shall bid the construction of the Sewer Line with three (3)
qualified contractors and shall provide copies of the bids received for such items to Town
within five (5) business days of Developer's receipt of same. Developer shall: (i) execute a
contract, which contract shall be assignable to the Town, for the construction of the Sewer
Line with the lowest responsible bidder as mutually and reasonably determined by Town
and Developer; and (ii) construct the Sewer Line in accordance with the Town -approved
engineering plans, specifications and designs.
(c) Developer shall cause the contractor selected pursuant to Section
3.03 i to submit interim monthly invoices to the Town during the construction process
for the Sewer Line. Upon receipt and review by the Town, the Town shall pay said
contractor as set forth in said invoice. The Town shall not be obligated to pay any
reimbursements to Developer until Developer has filed, or caused to be filed, with the
county land records all easements necessary for construction, perpetual operation and
Chapter 380 Agreement
Town of Prosper, Texas - Cross Development, L.L. C.
perpetual maintenance of the Sewer Line, in a form acceptable to the Town, naming Town
as the grantee.
(d) The funds for reimbursing Developer's costs under this Section shall come
from certificate(s) of obligation, general obligation bonds or other financing instruments
issued by the Town. The Town shall be responsible for reimbursing Developer's actual
costs associated with the construction of the Sewer Line up to a maximum of ONE
MILLION THREE HUNDRED THOUSAND AND N0/100 DOLLARS ($1,300,000.00)
("Sewer Line Loan"). Any actual costs of construction in excess of the Sewer Line Loan
amount shall be the responsibility of Developer, which Developer agrees to escrow with the
Town upon the approval of bids and/or costs in excess of $1,300,000.00.
(e) Upon completion of the Sewer Line and obtaining a certificate of
occupancy for any part of the Project, the Town shall credit its one percent (1.00•/0) of the
Sales and Use Tax rate generated at the Project to repayment of the Sewer Line Loan on
behalf of Developer and retain any remaining Sales and Use Tax. The Town shall continue
to credit the one percent (1.00%) of the Sales and Use Tax generated at the Project to the
Sewer Line Loan and the Town shall also credit interest on the Sewer Line Loan at a rate of
five and one-half percent (5 1/2%) until the amount of such credit equals the principal
balance of the Sewer Line Loan plus the Town's interest payments. Notwithstanding the
foregoing, should the Project fail to generate sufficient Sales and Use Tax to repay the
Sewer Line Loan and interest for a period of three (3) years after the first certificate of
occupancy is issued for the Project, the Town shall continue to credit the one percent
(1.00%) of the Sales and Use Tax to repayment of the Sewer Line Loan and interest until it
has been repaid in full; provided, however, that the seven (7) year period set forth in Section
4.02 shall commence on the third anniversary of Developer obtaining the first certificate of
occupancy for the Project despite the fact that Developer will not be entitled to any Program
Grant Payments until the Sewer Line Loan has been repaid in full.
Section 3.04 Payment of Impact Fees. Developer covenants and agrees to pay the
Town's water impact fees for the Property, pursuant to and in accordance with Chapter 395 of
the Texas Local Government Code, which are estimated to be ONE HUNDRED THIRTY-TWO
THOUSAND THREE HUNDRED FORTY-THREE AND N0/100 DOLLARS ($132,343.00),
but the actual amount will be based upon the size, type and number of water meters actually
installed on the Property. The aforementioned impact fees will be paid as the Project is
developed pursuant to the ordinances of the Town. NOTWITHSTANDING ANYTInNG TO THE
CONTRARY HEREIN, TOWN SHALL NOT BE OBLIGATED TO PROVIDE THE PROPERTY WITH THE
CREDIT FOR ANY DESIGN AND ACQUISITION COSTS ASSOCIATED WITH THE SEWER LINE UNLESS
AND UNTIL TOWN APPROVES, IN WRITING, SAID DESIGN AND ACQUISITION COSTS, AND
DEVELOPER PROVIDES THE EVIDENCE OF PAYMENT(S). All other impact fees required by
Town ordinance related to the Property are waived pursuant to this Agreement.
Section 3.05 Reporting of Sales and Use Taxes. The Town, on a quarterly basis, shall
determine the amount of sales tax revenues generated by taxable sales tax events from the
Project for the previous calendar quarter ("Project Reports"). Such Project Reports shall be
based upon reports filed by the tenants of the Project with the State Comptroller's Office. The
Chapter 380Agreement
Town of Prosper, Texas - Cross Development, L.L. C.
first Project Report will be requested from the State Comptroller's Office the first quarter after
taxable sales occur at the Project. Developer shall not be obligated to obtain such reports
directly from the tenants of the Project, but Developer shall require said tenants to provide the
Town a copy of the Sales Tax Permit each tenant receives from the State, legibly showing (1) the
sales tax number/tax identification number, and (2) the location number. The parties believe that
this sales tax permit information will allow the Town to obtain from the State Comptroller's
office an "Area Report" for the Project that identifies aggregate sales tax information on the
Project without disclosing individual business sales tax data. Town agrees to use good faith
efforts to obtain such report on a quarterly basis. Unless required by the Texas Attorney
General's office pursuant to the Texas Public Information Act or a court order, the Town shall
not make copies of any of the Project Reports or other financial information and shall not prepare
any written summaries of individual tenant sales. All financial reports shall be reviewed by the
Town on a gross of the Project basis. If the Town is using good faith efforts to timely obtain an
Area Report, but has not timely received one from the Comptroller, the Town shall estimate, in
its sole discretion, the amount of payment and adjust such payment within fifteen (15) days after
receipt of the Area Report. A violation of this Section 3.05 caused by inability to obtain Area
Reports from the Texas Comptroller shall not be considered an Event of Default.
Section 3.06 Performance. Developer agrees to perform and comply with all terms,
conditions, and provisions set forth in this Agreement and in all other instruments and
agreements between Developer and Town, and any related agreements between Developer and
Town.
ARTICLE IV
OBLIGATIONS OF TOWN
Section 4.01 Reimbursement for Construction of Sewer Line. Town covenants and
agrees to reimburse Developer for the costs related to the construction of the Sewer Line as set
forth in Section 3.03.
Section 4.02 Program Grant Payments. As an incentive for Developer to use in
obtaining the best possible tenants and occupants for the Project, commencing upon the first full
calendar quarter following the calendar quarter in which the Sewer Line Loan has been repaid as
set forth in Section 3.03(el but in any event, no later than three (3) years after Developer obtains
the first certificate of occupancy for the Project as set forth in Section 3.03(el and continuing for
each succeeding calendar quarter for a period of seven (7) years or until the aggregate payments
by Town to Developer totals FOUR MILLION SEVEN HUNDRED TWENTY-FIVE
THOUSAND AND N0/100 DOLLARS ($4,725,000.00), whichever is sooner, the Town
covenants and agrees to make Program Grant Payments to Developer equaling one hundred
percent (100%) of the Town's one percent (1.00%) Sales and Use Tax generated by and
attributed solely to Project's sales. It is agreed, however, that the Town may also choose to provide
funding from sources other than Sales and Use Tax, including, but not limited to, proceeds from
PEDC. The Town shall make the payment to Developer within thirty (30) days following the
receipt of the latter of. (i) the State Comptroller's office "Area Report" as specified in Section
3.05 of this Agreement; or (ii) Sales and Use Tax revenue from the State Comptroller's office for
the applicable calendar quarter. For clarity, the Town's one (1.0%) percent Sales and Use Tax
Chapter 380Agreement
Town of Prosper, Texas - Cross Development, L.L. C
revenue is separate and distinct from the one-half of one percent (0.50%) percent Sales and Use
Tax revenue generated by PEDC.
Section 4.03 Performance. Town agrees to perform and comply with all terms,
conditions, and provisions set forth in this Agreement and in all other instruments and
agreements between Town and Developer, and any related agreements between Town and
Developer.
ARTICLE V
EVENTS OF DEFAULT
Section 5.01 Developer Defaults. Each of the following shall constitute an Event of
Default on the part of Developer under this Agreement:
(a) Commencement of Construction. Failure of Developer to commence
construction of the Project on or before the Construction Commencement Date, subject to
Force Majeure Events.
(b) Construction of Sewer Line. Failure of Developer to complete
construction of the Sewer Line in general conformity with Exhibit C on or before the Sewer
Line Completion Date, subject to Force Majeure Events.
(c) Insolvency. The dissolution or termination of Developer's existence as a
going business or concern, Developer's insolvency, appointment of receiver for any part of
Developer's property, any assignment of all or substantially all of the assets of Developer
for the benefit of creditors of Developer, or the commencement of any proceeding under any
bankruptcy or insolvency laws by or against Developer unless, in the case of involuntary
proceedings, such proceedings are discharged within sixty (60) days after filing.
Section 5.02 Town Defaults. Each of the following shall constitute an Event of Default
on the part of Developer under this Agreement:
(a) Failure to remit Program Grant Payments in the manner specified in
Section 4.02.
(b) Failure to reimburse Developer for Sewer Line construction costs as set
forth in Section 3.03.
Section 5.03 Other Defaults. It shall be an Event of Default if Developer or Town fail
to comply with or to perform any other term, obligation, covenant or condition contained in this
Agreement or in any related documents, and (i) Developer or Town fails to cure such failure
within thirty (30) days after written notice from the Town or Developer, as the case may be,
describing such failure, or (ii) if such failure cannot be cured within such thirty (30) day period
in the exercise of all due diligence, then if Developer or Town fails to commence such cure
within such thirty (30) day period or fails to continuously thereafter diligently prosecute the cure
of such failure.
Chapter 380Agreement
Town of Prosper, Texas - Cross Development, L.L. C.
Section 5.04 Remedies.
(a) Termination. In the event of the occurrence of an Event of Default
described in this ARTICLE V, the non -defaulting party may give written notice to the other
party of such default, and the defaulting party shall have (i) thirty (30) days thereafter to
cure said default or (ii) if the defaulting party is diligently pursuing the cure of such default
but such default is not reasonably curable within thirty (30) calendar days, then the
defaulting party shall have such additional amount of time as is reasonably necessary to cure
such default. Should said default remain uncured after such reasonable cure period and the
non -defaulting party is not otherwise in default hereunder, then the non -defaulting party
shall have the right to give the defaulting party a notice (the "Termination Notice") that this
Agreement shall immediately terminate if such default is not cured within fifteen (15) days
after the Termination Notice is given and, if such default is not cured within such additional
15-day period, regardless of the amount of time reasonably necessary to cure, then, so long
as the Termination Notice states that failure to cure the default within such additional 15-
day period would result in an automatic termination of this Agreement, this Agreement shall
terminate without further action by either party.
(b) Specific Performance. Without terminating the Agreement, Developer
shall further have the power to enforce specific performance to collect amounts owing upon
Town's default. Developer shall further have the right to seek a judicial determination of
the appropriate amount of the Program Grant Payments owing by Town under Section 4.02
of this Agreement.
(c) Sewer Line Loan Clawback. If Town terminates this Agreement due to an
Event of Default by Developer, the unpaid portion (as of the date of termination) of the
Sewer Line Loan shall become a fully recourse obligation of Developer and the Town shall
be a secured creditor of Developer. Any principal and interest that have not been repaid,
pursuant to Section 3.03(el, shall be recourse. The parties agree that the Town shall have a
lien on the Property equal to the outstanding principal and interest of the Sewer Line Loan
and in any amounts spent by Town for completing construction of the Sewer Line following
an uncured Event of Default by Developer leading to termination of this Agreement.
Developer agrees that the Town may file this Agreement of record as notice of its lien on
the Property for said amounts upon (a) termination of this Agreement pursuant to the terms
hereof and (b) Developer's failure to pay the recourse portion of the Sewer Line Loan
pursuant to this Section 5.04(c).
(d) Damages Limitation. No action shall lie for punitive damages, and no
special or consequential damages shall be recovered by any party.
(e) Attorney's Fees. The prevailing party in any action to enforce this
Agreement shall not be entitled to receive reasonable attorney's fees from the non -
prevailing party.
Chapter 380 Agreement
Town of Prosper, Texas - Cross Development, L.L. C.
ARTICLE VI
TERMINATION OF AGREEMENT
Section 6.01 Amendment to Existing Law. Town may terminate this Agreement without
an Event of Default by Developer and effective immediately if (i) any state or federal statute,
regulation, case law, or other law renders this Agreement ineffectual, impractical or illegal,
including case law holding that a Chapter 380 Economic Development Agreement rebating Sales
and Use Taxes such as this Agreement is an unconstitutional debt; or (ii) the federal government
implements the "Streamlined Sales and Use Tax" or similar legislation in such a manner as to
change the consummation of a sales and use tax event to a tax situs outside of the Town thereby
eliminating the Town's rights in the sales tax proceeds paid by Developer for the Project.
Section 6.02 Replacement Agreement. Termination of this Agreement by Town under
Section 6.01 shall render this Agreement null and void from that point forward with each party
having no further rights against each other under this Agreement or at law; provided, however,
that (i) Developer shall be entitled to receive from Town any Program Grant Payment due
Developer through the date of termination and (ii) the Town and Developer agree to pursue good
faith negotiations related to a remedy that preserves the intent of the parties hereunder as much
as reasonably possible including, without limitation, the creation of an interest and sinking fund
to be funded from the Town's one percent (1.0%) of Sales and Use Tax from the Project.
Section 6.03 Completion of Program Grant. In addition, consistent with Section 4.02 of
this Agreement, this Agreement shall terminate upon the conclusion of the seven (7) year period
or when the aggregate payments by Town to Developer totals FOUR MILLION SEVEN
HUNDRED TWENTY-FIVE THOUSAND AND N0/100 DOLLARS ($4,725,000.00),
whichever is sooner.
ARTICLE VII
MISCELLANEOUS PROVISIONS
Section 7.01 Exhibits. The Exhibits, to which reference is made herein, are deemed
incorporated into this Agreement in their entirety by reference thereto.
Section 7.02 Amendments. Except as expressly provided in this Agreement, this
Agreement may be terminated, modified or amended only by the written consent of the parties.
Section 7.03 Entire Bement. This written Agreement and the Exhibits hereto,
contain all the representations and the entire agreement among the parties with respect to the
subject matter hereof. Upon execution of this Agreement, any prior correspondence,
memoranda, warranties or representations and prior or contemporaneous oral agreements are
superseded in total by this Agreement and Exhibits hereto. Neither the conduct nor actions of
the parties, nor the course of dealing or other custom or practice between the parties, shall
constitute a waiver or modification of any term or provision of this Agreement. This Agreement
may be modified or amended only in the manner specified in this Agreement.
Chapter 380Agreement
Town ojProsper, Texas -Cross Development, L.L. C.
Section 7.04 Applicable Law and Venue. This Agreement shall be governed by and
construed in accordance with the laws of the State of Texas, and all obligations of the parties
created hereunder are performable in Collin County, Texas. Venue for any action arising under
this Agreement shall lie in the state district courts of Collin County, Texas.
Section 7.05 Assignment. This Agreement may be assigned, whether collaterally to a
lender, or to a purchaser, in whole or in part, by Developer without necessity of obtaining
approval of the Town. The Program Grant Payments are personal to Developer, but at
Developer's option may be transferred to any third parry upon acceptance by the Town, which
shall not be unreasonably withheld. Upon any sale or transfer of all or part of the Project,
Developer will provide the Town written notice of such sale or transfer.
Section 7.06 Binding Obligation. This Agreement shall become a binding obligation
on the parties upon execution by all signatories hereto. Town warrants and represents that the
individual executing this Agreement on behalf of Town has full authority to execute this
Agreement and bind Town to the same. Developer warrants and represents that the individual
executing this Agreement on Developer's behalf has full authority to execute this Agreement and
bind it to the same.
Section 7.07 Further Assurances.• Covenant to Sign Documents. Each party shall take
all actions and do all things, and execute, with acknowledgment or affidavit if required, any and
all documents and writings, which may be necessary or proper to achieve the purposes and
objectives of this Agreement.
Section 7.08 Caption Headings. Caption headings in this Agreement are for
convenience purposes only and are not to be used to interpret or define the provisions of the
Agreement.
Section 7.09 Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and all of which shall constitute one and
the same document.
Section 7.10 Force Majeure Events. A "Force Majeure Evenf' means a delay in
performance caused by war, terrorist acts, insurrection, strikes or other labor disturbances, walk-
outs, riots, floods, earthquakes, fires, casualties, or acts of God; restrictions or delays at the
Project imposed or mandated by governmental agencies; enactment of laws that prevent or
preclude compliance by a Party with any material provision of this Agreement; and litigation,
relating to the Project.
Section 7.11 Notices. All notices required to be given under this Agreement shall be
given in writing and shall be effective when actually delivered or when deposited in the United
States mail, first class, postage prepaid, addressed to the party to whom the notice is to be given
at the addresses shown above. Any party may change its address for notices under this
Agreement by giving formal written notice to the other parties, specifying that the purpose of the
notice is to change the parry's address. For notice purposes, each party agrees to keep the other
informed at all times of its current address. A copy of any notice to the Town shall also be sent
Chapter 380Agreement
Town of Prosper, Texas - Cross Development, L.L.C.
to: Prosper Economic Development Corporation, Attention: Executive Director, 121 W.
Broadway, P.O. Box 307, Prosper, Texas 75078.
Section 7.12 Applicability of Ordinances. Except as specifically set forth in Section
3.04, the parties hereto acknowledge that this Agreement does not alter the applicability of the
ordinances of Town, including but not limited to the roadway impact fee ordinance, park
dedication and fees ordinance, any ordinance adopted pursuant to Chapter 395 of the Local
Government Code, ordinances covering property taxes, utility rates, utility fees, tap fees, meter
fees, pro rata fees, permit fees and the like, except as specifically set forth herein. Further, this
Agreement does not waive or limit any of the obligations of Developer to Town under any other
ordinance whether now existing or in the future arising
Section 7.13 Revenue Sharing Agreement. The Town designates this Agreement as a
revenue sharing agreement, thereby entitling the Town to request Sales and Use Tax information
from the State Comptroller, pursuant to Section 321.3022 of the Texas Tax Code, as amended.
Section 7.14 Severabilitv. The provisions of this Agreement are severable. If any
paragraph, section, subdivision, sentence, clause, or phrase of this Agreement is for any reason
held by a court of competent jurisdiction to be contrary to law or contrary to any rule or
regulation have the force and effect of the law, the remaining portions of the Agreement shall be
enforced as if the invalid provision had never been included.
Section 7.15 Time is of the Essence. Time is of the essence in the performance of this
Agreement.
Section 7.16 Construction in Compliance with Ordinances. All construction shall be
done in compliance with the ordinances and regulations of Town, as they exist or may be
amended.
Section 7.17 Sovereign Immunity. The parties agree that the Town has not waived its
sovereign immunity by entering into and performing its obligations under this Agreement.
Section 7.18 Chapter 245 Waiver. Nothing in this Agreement shall be implied to vest
any rights in the parties. In addition, nothing contained in this Agreement shall constitute a
"permit" as defined in Chapter 245, Texas Local Government Code. DEVELOPER WAIVES
ANY STATUTORY CLAIM UNDER CHAPTER 245 OF THE TEXAS LOCAL
GOVERNMENT. THIS SECTION SHALL SURVIVE THE TERMINATION OF THIS
AGREEMENT.
Section 7.19 References to Law. Any reference to a federal, state or local law,
regulation, ordinance, order or rule ("LaW') shall refer to such Law as it exists on the effective
date of this Agreement or as it may be subsequently amended after the effective date of this
Agreement.
Section 7.20 Non -Waiver. If a Party fails to insist on strict performance of any
provision of this Agreement, such failure shall not be deemed a waiver by such Party of its right
Chapter 380Agreement
Town of Prosper, Texas - Cross Development, L.L.C.
to insist on strict performance of such provision in the future or strict performance of any other
provision of this Agreement.
IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement to be
effective as of the Effective Date.
DEVELOPER:
CUSTER-PROSPER, L.P.,
a Texas limited partnership
By: Cross Development Prosper-Catlyn, L.P.,
a Texas limited partnership,
its general partner
By: Cross Development Prosper-Catlyn GP, L.L.C,
a Texas limited liability company,
its general partner
By: A
Name: McAlan Duncan
Title: Manager
TOWN:
TOWN OF PROSPER, TEXAS
By:
Name: Charles Niswanger
Title: Mayor
4ATTOE.
��r / rr��,.
Denton
Town Secretary
Chapter 380Agreement
Town of Prosper, Texas - Cross Development, L.L C.
EXHIBIT "A'
to that certain
CHAPTER 380 ECONOMIC DEVELOPMENT
PROGRAM AGREEMENT
by and among
the TOWN OF PROSPER, TEXAS,
and
CROSS DEVELOPMENT, L.L.C.,
LEGAL DESCRIPTION OF PROPERTY
[see attached]
Exhibit A
Chapter 380 Agreement
Town of Prosper, Texas - Cross Development, L.L.C.
EXHIBIT ` W
to that certain
CHAPTER 380 ECONOMIC DEVELOPMENT
PROGRAM AGREEMENT
by and among
the TOWN OF PROSPER, TEXAS,
and
CROSS DEVELOPMENT, L.L.C.,
DEPICTION OF PROJECT
[see attached]
Exhibit B
Chapter 380Agreement
Town ofprosper, Texas -Cross Development, L.LC.
EXHIBIT "C"
to that certain
CHAPTER 380 ECONOMIC DEVELOPMENT
PROGRAM AGREEMENT
by and among
the TOWN OF PROSPER, TEXAS,
and
CROSS DEVELOPMENT, L.L.C.,
DEPICTION OF SEWER LINE
[see attached]
Exhibit E
Chapter 380Agreement
Toxin of prosper, Texas - Cross Development, L.L. C.