03.26.2013 Town Council PacketPage 1 of 4
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Prosper is a place where everyone matters.
1. Call to Order/Roll Call.
2. Invocation, Pledge of Allegiance and Pledge to the Texas Flag.
3. Announcements of upcoming events:
4. PRESENTATION:
GFOA Award.
5. 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.)
5a. Consider and act upon minutes from the following Council meeting(s) (HJ)
Regular Meeting – February 26, 2013.
5b. Consider and act upon Ordinance No. 13-07, rezoning 124.7± acres, located on the
south side of Frontier Parkway, 800± feet east of Preston Road to amend Planned
Development-15 (PD-15), Exhibit C, Section 2.05 (Streets). (Z13-0003). (CC)
5c. Consider and act upon a Resolution No. 13-22 reviewing, updating, and adopting
the Town of Prosper and Prosper EDC Investment Policy and Investment Strategy.
(MG)
6. CITIZEN 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.)
Other Comments by the Public -
AGENDA
Meeting of the Prosper Town Council
Prosper Municipal Chambers
108 W. Broadway, Prosper, Texas
Tuesday, March 26, 2013
Meeting begins at 6:00 p.m.
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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
item will be recognized on a case-by-case basis, at the discretion of the Mayor and Town
Council.)
PUBLIC HEARING:
7. A public hearing to consider and act upon a request to rezone 0.5± acre, located on the
southwest corner of Coleman Street and Third Street (202 S. Coleman Street), from Single
Family-15 to Downtown Office (DTO). (Z13-0001). (CC)
8. A public hearing to consider and act upon a request to amend Planned Development-8 (PD-
8), Exhibit C (Hike and Bike Trail Exhibit), located at the terminus of Lake Trail Lane,
south of Frontier Parkway. The property is 25.0± acres. (Z13-0004). (CC)
9. A public hearing to consider and act upon a request to amend Planned Development-2 (PD-
2), Exhibit C, Section 2.06 (Thoroughfare Screening), located adjacent to the western
boundary of Willow Ridge, Phases 4A and 4B, along future Lovers Lane. The property is
for 0.3± acre. (Z13-0005). (CC)
10. A public hearing to consider and act upon a request to rezone 1.5± acres, located on the
southeast corner of Preston Road and Hays Road, from Office (O) to Planned
Development-Office (PD-O). (Z13-0002). (CC)
11. A public hearing to consider and act upon a request to amend Planned Development-14
(PD-14), Exhibit C, Section 4.06 (Conceptual Development Plan), located on the south side
of Fishtrap Road, 2,400± feet east of Teel Parkway. The property is 145.4± acres. (Z13-
0006). (CC)
DEPARTMENT ITEMS:
12. Consider and act upon 1) a Letter Agreement between the Town of Prosper and Blue Star
Land, LP, related to the proposed expenditures for SH 289 improvements to be included in
future TIRZ Financing Agreement and 2) adopting Resolution No. 13-25 authorizing the
Town Manager to execute the same. (HW)
13. Consider and act upon 1) a Memorandum of Understanding between the Town of Prosper
and Blue Star Land, LP, related to the proposed expenditures for a Wastewater Trunk Main
to be included in future Development Agreement and 2) adopting Resolution No. 13-26
authorizing the Town Manager to execute the same. (HW)
14. Consider and act upon Change Order #1 to Freese and Nichols, Inc., for the 2nd Upper
Plane 30/24-Inch Treated Waterline Pipeline Project. (MB)
Page 3 of 4
15. Consider and act upon Resolution No. 13-23, accepting the Independent Audit Report and
Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2012, as
presented by Lori Herrick of Davis Kinard & Co, PC, Certified Public Accountants. (MG)
16. Consider and act upon Resolution No. 13–17 approving renewal of the tower site lease
agreement with TierOne Converged Networks. (MG)
17. Consider and act upon Resolution No. 13–24 approving the First Amendment to the tower
site lease agreement with TierOne Converged Networks, allowing for monthly rents and
authorizing the Town Manager to execute the same. (MG)
18. EXECUTIVE SESSION:
Recess into Closed Session in compliance with Section 551.001 et. seq. Texas Government
Code, as authorized by the Texas Open Meetings Act deliberate regarding;
18a. Section 551.072. To deliberate the purchase, exchange, lease, or value of real
property generally located on W. Broadway Street west of Coleman.
18b. Section 551.072. To deliberate the purchase, exchange, lease, or value of real
property generally located on Preston Road north of Broadway.
18c. Section 551.072. To deliberate the purchase, exchange, lease, or value of real
property generally located on Prosper Trail west of Coit Road.
18d. Section 551.072. To deliberate the purchase, exchange, lease, or value of real
property generally located on First Street west of Craig Street.
18e. Section 551.071. Meeting with Town Attorney regarding a matter in which the
duty of the Town Attorney under the Texas Disciplinary Rules of Professional
Conduct of the State Bar of Texas conflicts with the Open Meetings Act to receive
legal advice regarding the Police Department’s standard operating procedures, and
matters related thereto.
18f. Section 551.074. Discuss and consider Town Attorney applicants and all matters
incident and related thereto.
19. To reconvene in Regular Session and take any action necessary as a result of the Closed
Session.
20. Possibly direct Town Staff to schedule topic(s) for discussion at a future meeting.
Discuss temporary use of Frontier Park for baseball practice.
Discuss additional solid waste service options.
21. Adjourn.
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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 on the following date and time:
By __________________________ at 4:00 p.m. and remained so posted at least 72 hours before said meeting was
convened.
________________________________
Harlan Jefferson
Interim Town Secretary
If during the course of the meeting covered by this Notice, the Town Council should determine that a closed or
executive meeting or session of the Town Council or a consultation with the attorney/special counsel for the Town
should be held or is required, then such closed or executive meeting or session or consultation with the attorney/special
counsel as authorized by the Texas Open Meetings Act, Texas Government Code, §551.001, et seq., will be held by
the Town Council at the date, hour and place given in this Notice or as soon after the commencement of the meeting
covered by this Notice as the Town Council may conveniently meet in such closed or executive meeting or session or
consult with the attorney/special counsel for the Town concerning any and all subjects and for any and all purposes
permitted by the Act, including, but not limited to, the following sections and purposes:
Texas Government Code:
§551.071 - Consultation with the attorney/special counsel for the Town.
§551.072 - Discussion regarding the purchase, exchange, lease or value of real property.
§551.074 - Discussion regarding personnel matters.
NOTICE
Pursuant to Town of Prosper Ordinance Number 07-04, all speakers other than Town of Prosper Staff are limited to
three (3) minutes per person, per item, which may be extended for an additional two (2) minutes with approval of a
majority vote of the Town Council.
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) 569-1011. BRAILLE IS NOT AVAILABLE.
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Council Members present: Mayor Ray Smith, Mayor Pro Tem Meigs Miller, Deputy Mayor Pro Tem
Kenneth Dugger, Council Member Danny Wilson, Council Member Curry Vogelsang and Council
Member Mike Korbuly.
Absent: Council Member Jason Dixon
Staff Members present: Town Manager Harlan Jefferson, Town Attorney Richard Abernathy, Town
Secretary Amy Piukana, Development Director Hulon Webb, Planning Director Chris Copple,
Finance Director Matthew Garrett, and Fire Chief Ronnie Tucker.
1. Call to Order Regular Meeting/Roll Call.
2. Pastor Wayne Bartley with First Baptist of Prosper led the Invocation. The Pledge of Allegiance and
Pledge to the Texas Flag were given.
3. Announcements of upcoming events. The following announcements were given:
o Library’s upcoming celebration of Dr. Seuss’ birthday which will include some characters in
his book. This event begins at 1 p.m. at the Prosper Library. Also, the Prosper Library is
going live with E-Books online beginning March 1st.
o Utility Billing is holding a Spring Clean Up Event in the parking lot area behind Town Hall
on Saturday, March 23, 2013 from 8 a.m. to noon.
o Trout Derby is set for Saturday, March 2, 2013 from 9 a.m. to 11 a.m. at Frontier Park (Ages
14 yrs. and under)
o TxDOT has indicated,( if the weather is permits) Preston Road traffic will be switched over to
the new lanes early Friday, March 1st.
o Kite Flying Day is coming soon to Frontier Park. Date to be announced.
4. 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.)
4a. Consider and act upon minutes from the following Council meeting(s) (AP)
Regular Meeting – February 12, 2013
Minutes
Regular Meeting of the Prosper Town Council
Prosper Municipal Chambers
108 W. Broadway
Prosper, TX 75078
Tuesday, February 26, 2013
6:00 p.m. Regular Meeting
Page 2 of 6
4e. Consider and act upon entering into agreement with Denton County Elections to
administer the May 11, 2013 General Election. (AP)
4g. Resolution No. 13-04, cancelling the Regular Scheduled March 12, 2013 Town
Council Meeting. (HJ)
4h. Consider and act upon receiving the 2012 Racial Profile Report. (KM)
4j. Consider and act upon Resolution 13-20 amending authorized representatives to
transact business with TexPool Participant Services. (MG)
Deputy Mayor Pro Tem Dugger pulled Agenda Items 4b., 4c., 4d., 4f., and 4i. off Consent Agenda to
allow for discussion.
Mayor Pro Tem Miller made a motion to approve Consent Items 4a., 4e., 4g., 4h., and 4j., as
presented. Motion seconded by Council Member Wilson. Motion approved by vote of 6-0.
Mayor skipped to item 4b.
4b. Consider and act upon 1) an Engineering Design Services Agreement between the Town of
Prosper and Wier & Associates, Inc., related to the Old Town Drainage Study and 2) adopting
Resolution No. 13-15 authorizing the Town Manager to execute the same. (HW)
Development Director Hulon Webb briefed Council regarding this item. Mr. Webb explained that
this agreement is for the engineering design services necessary to perform a drainage analysis of the
Old Town area of the Town of Prosper generally from Craig Street on the east, First Street on the
south, Eighth Street on the north and the BN&SF Railroad on the west. Mr. Webb noted that the
amount of $65,500 for the study is to be funded by the Municipal Drainage Utility System Fee Fund.
After discussion, Deputy Mayor Pro Tem Dugger made a motion to approve the Engineering Design
and Service Agreement between the Town of Prosper and Wier & Associates, Inc., related to the Old
Town Drainage Study and adopt Resolution No. 13-15 authorizing the Town Manager to execute
the same.
4c. Consider and act upon 1) an Engineering Design Services Agreement between the Town of Prosper
and Wier & Associates, Inc., related to the Frontier Boulevard BN&SF RR Crossing Studies and 2)
adopting Resolution No. 13-16 authorizing the Town Manager to execute the same. (HW)
Development Director Hulon Webb briefed Council regarding this item. Mr. Webb explained that
the City of Celina is currently working on the design of Frontier Boulevard from the Dallas North
Tollway to Preston Road (SH 289) as a concrete curb and gutter six-lane divided roadway with an at-
grade crossing at the BN&SF Railroad. Town staff has been discussing with the City of Celina the
need for an elevated railroad crossing at Frontier Boulevard and the BN&SF Railroad. The agreement
is for the engineering services necessary to design and prepare exhibits and preliminary alignment
documents related to feasibility studies for an at-grade railroad crossing versus an elevated
railroad crossing at Frontier Boulevard and the BN&SF Railroad.
The following citizens spoke regarding this item:
Resident Ernie Sanders spoke regarding the contract urging the Town to consider adding limited
liability terms and breach of contract language in the contract in order to hold the contractors
more accountable for the work.
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Resident Jack Dixon spoke regarding the Frontier Crossing stating it has no elevated crossing which
has caused families to have limited access routes. Mr. Dixon urged Council to consider the
increased traffic flow from High School games and to compare options and the costs associated with
constructing a flat verses elevated crossing at this location.
Resident Mary Helen Sanders spoke urging Council not spend Town funds needlessly on a feasibility
study.
After discussion, Deputy Mayor Pro Tem Dugger made a motion to approve an Engineering Design
Services Agreement between the Town of Prosper and Wier & Associates, Inc., related to the
Frontier Boulevard BN&SF RR Crossing Studies and adopt Resolution No. 13-16 authorizing the
Town Manager to execute the same. Motion seconded by Mayor Pro Tem Miller. Motion approved
by vote of 6-0.
4d. Consider and act upon the quarterly investment portfolio for the quarter ending December 31, 2012.
(MG) Finance Director Matthew Garrett briefed Council regarding this item.
After discussion, Deputy Mayor Pro Tem Dugger made a motion to approve the quarterly investment
portfolio for the quarter ending December 31, 2012. Motion seconded by Mayor Pro Tem
Vogelsang. Motion approved by vote of 6-0.
4f. Consider and act upon Resolution No. 13-18 naming an Interim Town Secretary. (HJ)
Deputy Mayor Pro Tem Dugger made a motion to approve Resolution No. 13-18 naming Harlan
Jefferson as Interim Town Secretary. Motion seconded by Council Member Korbuly. Motion
approved by vote of 6-0.
4i. Consider and act upon Resolution 13-19 authorizing individuals named to
endorse checks and orders for the payment of money or otherwise withdraw or
transfer funds on deposit with Independent Bank or any other Town depositories
and exercise all of the powers listed in the resolution. (MG)
Finance Director Matthew Garrett briefed Council regarding this item.
After discussion, Deputy Mayor Pro Tem Dugger made a motion to approve Resolution 13-19
authorizing individuals named to endorse checks and orders for the payment of money or otherwise
withdraw or transfer funds on deposit with Independent Bank or any other Town depositories and
exercise all of the powers listed in the resolution. Motion seconded by Council Member Korbuly.
Motion approved by vote of 6-0.
5. CITIZEN 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.)
Other Comments by the Public –
Prosper Student Allison Swain spoke regarding her Girl Scout Gold project urging citizens to
participate in a diaper drive for the Bethlehem Place to assist less fortunate families with basic needs.
Ms. Swain asked for diaper donations in lieu of funds.
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Resident Ken Weaver spoke regarding the hike and bike trail modifications to the Lakes of Prosper.
Mr. Weaver spoke in concern of facebook commentary and correspondence in relation to upcoming
Public Hearings noting that no item should be voted on until appropriate boards have reviewed and
its findings have been reported to Council and residents. Mr. Weaver passed out a document to
Council referencing a facebook communication regarding the hike and bike trail modifications in
Lakes of Prosper.
Resident Jack Dixon spoke regarding the Old Town Drainage Study asking Council to consider
adding a drainage pond park feature that becomes a Veteran’s Memorial feature.
Resident Irwin “Cap” Parry spoke regarding the March 27th Council Strategic Workshop asking if the
meeting would be open to the public. Staff explained the meeting date has been set noting the public
can attend and that an Agenda would be posted 72 hours prior to the meeting in compliance with the
Open Meetings Act.
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 item will be recognized on a case-by-case basis, at
the discretion of the Mayor and Town Council.)
PUBLIC HEARING:
6. A public hearing to consider and act upon a request to rezone 124.7± acres, located on the
south side of Frontier Parkway, 800± feet east of Preston Road to amend Planned Development-15
(PD-15), Exhibit C, Section 2.05 (Streets). (Z13-0003). Planning Director Chris Copple briefed
Council regarding this item. Mr. Copple explained that the purpose of the Planned Development (PD)
amendment is to revise the residential street right-of-way from sixty (60) feet to fifty (50) feet, which
complies with the Town’s neighborhood street standard. The proposed Police Department
amendment does not change the street’s pavement width, which currently meets the Town’s
standard of thirty-one (31) feet measured from back of curb. Mr. Copple noted the zoning request is
specifically to amend Exhibit C, Section 2.05, so all other sections of PD-15 are not included in the
zoning request. Mr. Copple explained that at the February 5, 2013, Planning & Zoning Commission
Meeting, the Board recommended the Town Council approve the request to amend Planned
Development-15 (PD-15), Exhibit C, Section 2.05 (Streets) as submitted, by a vote of 5-0.
Deputy Mayor Pro Tem Dugger made a motion to open the Public Hearing. Motion seconded by
Council Member Vogelsang. Motion approved by vote of 6-0.
Applicant Robert Holmes was present to answer questions.
Resident Ernie Sanders asked why the original right of way was approved and now an issue.
Mr. Holmes explained that the adjustment to reduce the right of way allows the development to
have larger back yards and provides a more quality development.
Deputy Mayor Pro Tem Dugger made a motion to close the public hearing. Motion seconded by
Council Member Wilson. Motion approved by vote of 6-0.
Council Member Korbuly made a motion to approve the request to amend PD-15 (Planned
Development 15), Exhibit C, Section 2.05, as submitted. Motion seconded by Deputy Mayor Pro
Tem Dugger. Motion approved by vote of 6-0.
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DEPARTMENT ITEMS:
7. Consider and discuss the Town’s Investment Policy. Finance Director Matthew Garrett briefed
Council regarding this item. Mr. Garrett explained that under the Public Funds Investments Act,
Chapter 2256.05, Sec. (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 primary changes proposed to the Investment Policy are to the designation of investment officers.
Under the Public Funds Investment Act, investment officers must attend at least 10 hours of
instruction relating to the treasurer's or officer's responsibilities not less than once in a two-year
period. Currently, the Town Manager, Finance Director and Accounting Manager are designated for
the Town. The proposed language removes the Town Manager and leaves only two designated
officers. Mr. Garrett noted that the Prosper EDC Investment Policy currently calls for the PEDC
Treasurer, the PEDC Executive Director and Accounting Manager to serve as investment officers.
No action was taken on this item.
8. Consider and act upon Resolution 13-21 authorizing the Town Manager to execute a two year
contract with Document Management Professionals Business Process Outsourcing, Inc. for the
production and distribution of Town utility bills. Finance Director Matthew Garrett briefed Council
regarding this item. Mr. Garrett explained that Town staff solicited quotes from three vendors for
utility billing software services to perform printing, sorting and distribution of Town utility bills.
This service is currently provided by CSG. Mr. Garrett noted that staff asked CSG to submit a new,
lower quote, however; CSG declined.
Staff received competitive quotes from DP2 Billing Solutions LLC and Document Management
Professionals Business Process Outsourcing, Inc. (“DMPBPO”) Mr. Garrett explained that staff
checked references on these respondents and were pleased with the reviews for both. Staff is
recommending DMPBPO as the lowest cost solution that will meet the Town’s billing needs.
Resident Ernie Sanders spoke urging Council to consider adding termination language and the
possibility of having a Tier pricing agreement.
Mayor Pro Tem Miller made a motion to approve Resolution 13-21 authorizing the Town
Manager to execute a two year contract with Document Management Professionals Business
Process Outsourcing, Inc. for the production and distribution of Town utility bills. Motion seconded
by Council Member Dugger. Motion approved by vote of 6-0.
Deputy Mayor Pro Tem Dugger made a motion to recess into Executive Session at 7:43 p.m. Motion
seconded by Council Member Wilson. Motion prevailed by vote of 6-0.
9. EXECUTIVE SESSION:
Recess into Closed Session in compliance with Section 551.001 et. seq. Texas Government Code, as
authorized by the Texas Open Meetings Act deliberate regarding;
9a. Section 551.072. To deliberate the purchase, exchange, lease, or value of real property
generally located on W. Broadway Street west of Coleman.
Page 6 of 6
9b. Section 551.071. Meeting with Town Attorney regarding a matter in which
the duty of the Town Attorney under the Texas Disciplinary Rules of
Professional Conduct of the State Bar of Texas conflicts with the Open
Meetings Act to receive legal advice regarding the Park Fee Ordinance, and
matters related thereto.
10. To reconvene in Regular Session and take any action necessary as a result of the Closed Session.
Mayor Pro Tem Miller made a motion to reconvene into Regular Session at 9:09 p.m. Motion
seconded by Council Member Wilson. Motion approved by vote of 6-0.
Town Attorney Richard Abernathy explained that a breach of contract is not necessary noting an
indemnification clause covers the Town against any liability. Mr. Abernathy explained that the Town
has immunity from signed contracts for goods and services and gave an example of a Supreme Court
ruling. Mr. Abernathy summarized that the contract is sufficient as to form.
11. Possibly direct Town Staff to schedule topic(s) for discussion at a future meeting.
Landscape Coit and First Street – Development Director Hulon Webb gave a brief update
regarding this item.
Office Building located at 1000 N. Preston Road – Development Director Hulon Webb
briefed Council regarding this item.
Folsom Park portable restroom facility – Development Director Hulon Webb briefed Council
regarding this item.
12. Adjourn. Deputy Mayor Pro Tem Dugger made a motion to adjourn at 9:52 p.m. Motion seconded
by Council Member Wilson. Motion approved by vote of 6-0.
The meeting adjourned at 9:53 p.m.
APPROVED:
___________________________________
Ray Smith, Mayor
ATTEST:
_______________________________
Harlan Jefferson,
Interim Town Secretary
To: Mayor and Town Council
From: Chris Copple, AICP, Planning Director
Cc: Harlan Jefferson, Town Manager
Hulon T. Webb, Jr., P.E., Director of Development Services/Town Engineer
Re: Town Council Meeting – March 26, 2013
Date: March 8, 2013
Agenda Item:
Consider and act upon an ordinance rezoning 124.7± acres, located on the south side of Frontier
Parkway, 800± feet east of Preston Road, to amend Planned Development-15 (PD-15), Exhibit C,
Section 2.05 (Streets). (Z13-0003).
Description of Agenda Item:
On February 26, 2013, the Town Council approved zoning case Z13-0003, by a vote of 6-0. Town
staff has prepared an ordinance rezoning the property.
Budget Impact:
There are no significant budget implications associated with the approval of this zoning request.
Legal Obligations and Review:
Zoning Ordinance 05-20 requires that the Town Council hold a public hearing before approving a
zoning request and adopting an ordinance rezoning property. A public hearing has been held and
the Town Council approved the zoning case. The ordinance has been prepared. Review of the
ordinance by the Town Attorney is not required.
Attached Documents:
1. The ordinance rezoning the property is attached.
Town Staff Recommendation:
Town staff recommends the Town Council adopt the attached ordinance, rezoning 124.7± acres,
located on the south side of Frontier Parkway, 800± feet east of Preston Road, amending Planned
Development-15 (PD-15), Exhibit C, Section 2.05 (Streets).
Prosper is a place where everyone matters.
PLANNING
TOWN OF PROSPER, TEXAS ORDINANCE NO. 13-__
AN ORDINANCE AMENDING PROSPER’S ZONING ORDINANCE NO. 05-20
AND ORDINANCE NO. 04-66; REZONING A TRACT OF LAND CONSISTING
OF 124.655 ACRES, MORE OR LESS, SITUATED IN THE COLLIN COUNTY
LAND SURVEY, ABSTRACT NO. 172, IN THE TOWN OF PROSPER, COLLIN
COUNTY, TEXAS, HERETOFORE ZONED PLANNED DEVELOPMENT-15
(PD-15) IS HEREBY REZONED AND PLACED IN THE ZONING
CLASSIFICATION OF PLANNED DEVELOPMENT-15 (PD-15); DESCRIBING
THE TRACT TO BE REZONED; PROVIDING FOR A PENALTY FOR THE
VIOLATION OF THIS ORDINANCE; PROVIDING FOR REPEALING, SAVING
AND SEVERABILITY CLAUSES; PROVIDING FOR AN EFFECTIVE DATE OF
THIS ORDINANCE; AND PROVIDING FOR THE PUBLICATION OF THE
CAPTION HEREOF.
WHEREAS, the Town Council of the Town of Prosper, Texas (the “Town Council”) has
investigated and determined that Zoning Ordinance No. 05-20 and Ordinance No. 04-66 should be
amended; and
WHEREAS, the Town of Prosper, Texas (“Prosper”) has received a request from H&M Fund II,
LLC (“Applicant”) to rezone 124.655 acres of land, more or less, situated in the Collin County School
Land Survey, Abstract No. 172, in the Town of Prosper, Collin County, Texas; and
WHEREAS, the Town Council has investigated into and determined that the facts contained in
the request are true and correct; and
WHEREAS, all legal notices required for rezoning have been given in the manner and form set
forth by law, and public hearings have been held on the proposed rezoning and all other requirements of
notice and completion of such zoning procedures have been fulfilled; and
WHEREAS, the Town Council has further investigated into and determined that it will be
advantageous and beneficial to Prosper and its inhabitants to rezone this property as set forth below.
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF
PROSPER, TEXAS:
SECTION 1: Findings Incorporated. The findings set forth above are incorporated into the body
of this Ordinance as if fully set forth herein.
SECTION 2: Amendments to Ordinance No. 04-66. Ordinance No. 04-66 is amended as follows:
The zoning designation of the below-described property containing 124.655 acres of land, more or less,
situated in the Collin County School Land Survey, Abstract No. 172, in the Town of Prosper, Collin
County, Texas, (the “Property”) and all streets, roads and alleyways contiguous and/or adjacent thereto is
hereby rezoned as Planned Development-15 (PD-15). The property as a whole and the boundaries for
each zoning classification are more particularly described in Exhibit “A” attached hereto and incorporated
herein for all purposes as if set forth verbatim.
The development standards for the Property in this Planned Development District shall conform
to, and comply with the planned development standards, attached hereto as Exhibit “C”, which are
incorporated herein for all purposes as if set forth verbatim. Except as amended by this Ordinance, the
development of the Property within this Planned Development District must comply with Ordinance No.
04-66 and with the requirements of all ordinances, rules, and regulations of Prosper, as they currently
exist or may be amended.
Three original, official and identical copies of the zoning exhibit map are hereby adopted and
shall be filed and maintained as follows:
a. Two (2) copies shall be filed with the Town Secretary and retained as original records and
shall not be changed in any matter.
b. One (1) copy shall be filed with the Building Official and shall be maintained up-to-date by
posting thereon all changes and subsequent amendments for observation, issuing building
permits, certificates of compliance and occupancy and enforcing the Zoning Ordinance.
Reproduction for information purposes may from time-to-time be made of the official zoning
district map.
Written notice of any amendment to this Planned Development District shall be sent to all
property owners within two hundred feet (200’) of the specific area to be amended.
SECTION 3: No Vested Interest/Repeal. No developer or property owner shall acquire any vested
interest in this Ordinance or in any other specific regulations contained herein. Any portion of this
Ordinance may be repealed by the Town Council in the manner provided for by law.
SECTION 4: Unlawful Use of Premises. It shall be unlawful for any person, firm or corporation
to make use of said premises in some manner other than as authorized by this Ordinance, and shall be
unlawful for any person, firm or corporation to construct on said premises any building that is not in
conformity with the permissible uses under this Zoning Ordinance.
SECTION 5: Penalty. Any person, firm, corporation or business entity violating this Ordinance or
any provision of Prosper’s Zoning Ordinance No. 05-20, or as amended, shall be deemed guilty of a
misdemeanor, and upon conviction thereof shall be fined any sum not exceeding Two Thousand Dollars
($2,000.00). Each continuing day’s violation under this Ordinance shall constitute a separate offense.
The penal provisions imposed under this Ordinance shall not preclude Prosper from filing suit to enjoin
the violation. Prosper retains all legal rights and remedies available to it pursuant to local, state and
federal law.
SECTION 6: Severability. Should any section, subsection, sentence, clause or phrase of this
Ordinance be declared unconstitutional or invalid by a court of competent jurisdiction, it is expressly
provided that any and all remaining portions of this Ordinance shall remain in full force and effect.
Prosper hereby declares that it would have passed this Ordinance, and each section, subsection, clause or
phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses and
phrases be declared unconstitutional or invalid.
SECTION 7: Savings/Repealing Clause. Prosper’s Zoning Ordinance No. 05-20 shall remain in
full force and effect, save and except as amended by this or any other Ordinance. All provisions of any
ordinance in conflict with this Ordinance are hereby repealed to the extent they are in conflict; but such
repeal shall not abate any pending prosecution for violation of the repealed ordinance, nor shall the appeal
prevent a prosecution from being commenced for any violation if occurring prior to the repealing of the
ordinance. Any remaining portions of said ordinances shall remain in full force and effect.
SECTION 8: Effective Date. This Ordinance shall become effective from and after its adoption
and publications as required by law.
DULY PASSED AND APPROVED BY THE TOWN COUNCIL OF THE TOWN OF
PROSPER, TEXAS ON THIS 26th DAY OF MARCH, 2013.
APPROVED AS TO FORM:
______________________________
Ray Smith, Mayor
ATTESTED TO AND
CORRECTLY RECORDED BY:
____________________________
______________, Town Secretary
DATE OF PUBLICATION: ____________________________, Prosper Press
Boundary Line Table
H&M Fund II, LLC
Doc. No. 20121001001237280 OPRCCT
Zoned PD-15 - Single Family ResidentialZoned "PD-15"Zoned "PD-15"Zoned "PD-15"Zoned "SF-15"Zoned "PD-15"
Zoned "SF-15"
H
TRO
N
LEGEND
1/2" IRON ROD SET W/ YELLOW CAP
STAMPED "SPIARSENG" SET, UNLESS
OTHERWISE NOTED.
POWER POLE
SAN. SEWER MANHOLE
STORM SEWER MANHOLE
LIGHT POLE/STANDARD
GUY WIRE
BOLLARD
SIGNPOST
HANDICAP PARKING
FIRE HYDRANT
FIBRE-OPTIC CABLE MARKER
GAS MARKER
UTILITY/GAS FLAG OR PAINTMARK
ELECTRIC SVC. PULLBOX
GROUND LIGHT
TREE
MAILBOX
GAS TEST LEAD
GAS LINE MARKER
IRRIGATION CONTROL VALVE
WATER VALVE
WATER METER
SANITARY SEWER CLEANOUT
CLEANOUT
HANDICAPPED PARKING SIGN
MANHOLE
STORM SEWER MANHOLE
BARBED WIRE FENCE
WOOD FENCE
GUARD RAIL FENCE
OVERHEAD POWER LINE
CONTROL MONUMENT
LOCATION MAP
1" = 1000'
PROJECT
LOCATION
METES AND BOUNDS DESCRIPTION
124.655 Acres
POINT OF
BEGINNING
Exhibit C
Frontier Estates Planned Development Amendment
Planned Development Standards
Except as otherwise set forth in these development standards, the property, as described in
Exhibit A, shall develop under Ordinance No. 04‐66.
2.05 Streets
Post Oak Court shall be extended into the property for a minimum of one lot depth. The
paving section of Post Oak Court shall match the existing paving section contained to
the east of the property.
All other residential streets shall consist of a fifty‐foot wide right‐of‐way with a paving
section width of thirty‐one feet, from back‐of‐curb to back‐of‐curb. Drainage systems
shall be incorporated into the street facility with concrete paving and mountable curbs.
All collector class Thoroughfares shall meet the standards specified in the Town’s
Transportation Plan. All residential streets, collector streets and thoroughfares with
landscape and setback areas shall be shown on the Site Plan. Right‐of‐way areas shall
be dedicated and provided on any and all adjacent street or road section to conform to
the approved Transportation Plan of the Town.
Page 1 of 2
To: Mayor and Town Council
From: Matthew B. Garrett, Finance Director
CC: Harlan Jefferson, Town Manager
Re: Town Council Meeting – March 26, 2013
Date: March 18, 2013
Agenda Item:
Consider and act upon a Resolution No. 13-22 reviewing, updating and adopting the Town of
Prosper and Prosper EDC Investment Policy and Investment Strategy.
Description of Agenda Item:
In March, 2006 the Town of Prosper council adopted an Investment Policy for the Town and
EDC. This policy was last reviewed, revised and adopted with changes in March 2012. Most
changes resulted from the passage of HB 2226 in the 2011 legislative session.
Under the Public Funds Investments Act, Chapter 2256.05, Sec. (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.
Exhibit “A” as attached is the current policy. The proposed changes to the Town of Prosper
Investment Policy have been recorded in Exhibit “B”. This item was before you for discussion
only on the February 26, 2013 agenda.
The primary changes proposed to the Investment Policy are to the designation of investment
officers. Under the Public Funds Investment Act, investment officers must attend at least 10
hours of instruction relating to the treasurer's or officer's responsibilities not less than once in a
two-year period. Currently, the Town Manager, Finance Director and Accounting Manager are
designated for the Town. The proposed language removes the Town Manager and leaves only
two designated officers.
Additionally, the Prosper EDC Investment Policy currently calls for the PEDC Treasurer, the
PEDC Executive Director and Accounting Manager to serve as investment officers. Exhibit “B”
incorporates the results of PEDC discussions on its designated officers between me and Mr.
Winningham.
Budget Impact:
N/A
Prosper is a place where everyone matters.
Administration
Page 2 of 2
Legal Obligations and Review:
N/A
Attached Documents:
Resolution 13-22
Exhibit A - Investment Policy in Current Form
Exhibit B - Investment Policy with Proposed Changes Highlighted and Recorded
Board/Committee Recommendation:
N/A
Town Staff Recommendation:
Staff recommends that the Town Council
“Make a motion to approve Resolution No. 13-22 reviewing, updating and adopting the
Town of Prosper and Prosper EDC Investment Policy and Investment Strategy.”
TOWN OF PROSPER, TEXAS RESOLUTION NO. 13-22
A RESOLUTION OF THE PROSPER TOWN COUNCIL REVIEWING,
UPDATING AND ADOPTING THE PROSPER INVESTMENT POLICY AND
INVESTMENT STRATEGY.
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 confirms that it has reviewed the Town’s Investment Policy
and Investment Strategy and adopts the Investment Policy dated March 26, 2013 with changes
incorporated and recorded for compliance attached hereto as Exhibit “B”.
SECTION 2.
This Resolution shall be effective immediately upon its passage.
RESOLVED THIS THE 26th day of March, 2013.
APPROVED:
By: _______________________________
Ray Smith, Mayor
ATTEST:
By: _______________________________
Harlan Jefferson, Interim Town Secretary
EXHIBIT A
PROSPER IS A PLACE WHERE EVERYONE MATTERS
TOWN OF PROSPER, TEXAS
and
PROSPER ECONOMIC DEVELOPMENT CORPORATION
INVESTMENT POLICY
MARCH 27, 2012
EXHIBIT A
Revised 03/2012 Investment Policy Page 2 of 26
INVESTMENT POLICY
Table of Contents
PREFACE 3
I. PURPOSE 4
A. FORMAL ADOPTION 4
B. SCOPE 4
C. REVIEW AND AMENDMENT 5
D. INVESTMENT STRATEGY 5
II. INVESTMENT OBJECTIVES 5
A. SAFETY OF PRINCIPAL 5
B. MAINTENANCE OF ADEQUATE LIQUIDITY 5
C. YIELD 6
III. INVESTMENT POLICIES 6
A. AUTHORIZED INVESTMENTS 6
B. PROTECTION OF PRINCIPAL 10
C. INVESTMENT ADVISERS AND SECURITIES DEALERS 12
D. RESPONSIBILITY AND CONTROL 14
IV. INVESTMENT STRATEGY 18
A. OPERATING FUNDS 18
B. CONSTRUCTION AND CAPITAL IMPROVEMENT FUNDS 18
C. DEBT SERVICE FUNDS 19
D. ENTERPRISE FUNDS 20
APPENDIX “A” – GLOSSARY OF TERMS 21
EXHIBIT A
Revised 03/2012 Investment Policy Page 3 of 26
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. 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 respon sive 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.
EXHIBIT A
Revised 03/2012 Investment Policy Page 4 of 26
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, herein referred to as
“PFIA”.
B. Scope
This Investment Policy applies to all of the investment activities of PROSPER. These
funds are accounted for in the Town’s Comprehensive Annual Financial Report
(CAFR) and include:
General Funds
Debt Service Funds
Special Revenue Funds
Capital Project Funds
Enterprise Funds
Internal Service Funds
Economic Development Corporation Funds
Any new fund created by the Town
The Town of Prosper may consolidate cash balances from multiple funds to maximize
investment earnings. Investment income will be allocated to the various funds based
on their respective participation and in accordance with generally accepted
accounting principles.
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. PROSPER will also monitor changes in the credit
ratings of its investments quarterly using a number of resources including rating
agencies, broker/dealers or financial publications. PROSPER shall take all prudent
measures that are consistent with its investment policy to liquidate an investment that
does not have the minimum rating.
EXHIBIT A
Revised 03/2012 Investment Policy Page 5 of 26
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:
1. Investment suitability,
2. Preservation and safety of principal,
3. Liquidity,
4. Marketability prior to maturity of each investment,
5. Diversification, and
6. Yield.
II. 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.
EXHIBIT A
Revised 03/2012 Investment Policy Page 6 of 26
C. Yield
The investment portfolio shall be designed with the objective of attaining a market
rate of return throughout budgetary and economic cycles, taking into account the
investment risk constraints and liquidity needs. Return on investment is of secondary
importance compared to the safety and liquidity objectives described above. Core
investments are limited to relatively low risk securities in anticipation of earning a
fair return relative to the risk being assumed.
III. INVESTMENT POLICIES
A. Authorized Investments
Investments described below are authorized by PFIA 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 in the event that subsequent legislation renders certain securities as no
longer authorized for purchase by the Town. PROSPER’s funds governed by this
Policy may be invested in:
1. Obligations of Governmental Entities. Except for the items listed in 1.e. 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,
including obligations that are fully guaranteed or insured by the Federal
Deposit Insurance Corporation or by the explicit full faith and credit of the
United States;
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;
EXHIBIT A
Revised 03/2012 Investment Policy Page 7 of 26
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);
2. Obligations whose payments represent the principal stream of cash flow
from the underlying mortgage-backed security collateral and bear no
interest (Principal Only);
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).
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. Certificates of deposit or share certificates
provided the certificate is
a. Issued by a depository institution that has its main office or a branch office in
Texas that is:
1. Guaranteed or insured by the Federal Deposit Insurance Corporation or its
successor or the National Credit Union Share Insurance Fund or its
successor; or
2. Secured by obligations that are described by 1. (Obligations of
Governmental Entities) 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
1.e. above, that have a market value of not less than the uninsured amount
of the deposit; or
3. Secured in any other manner and amount provided by the law for deposits
of PROSPER.
EXHIBIT A
Revised 03/2012 Investment Policy Page 8 of 26
b. In addition to the authority to invest funds in certificates of deposit under
Subsection “a”, an investment in certificates of deposit made in accordance
with the following conditions is an authorized investment:
1. The funds are invested through:
(a) a broker that has its main office or a branch office in this state and is
selected from a list adopted by the investing entity as required by
Section 2256.025; or
(b) a depository institution that has its main office or a branch office in
this state and that is selected by the investing entity;
2. The broker or the depository institution selected by the investing entity
under Subdivision (1) arranges for the deposit of the funds in certificates
of deposit in one or more federally insured depository institutions,
wherever located, for the account of the investing entity;
3. The full amount of the principal and accrued interest of each of the
certificates of deposit is insured by the United States or an instrumentality
of the United States; and
4. The investing entity appoints the depository institution selected by the
investing entity under Subdivision (1), an entity described by Section
2257.041(d), or a clearing broker-dealer registered with the Securities and
Exchange Commission and operating pursuant to Securities and Exchange
Commission Rule 15c3-3 (17 C.F.R. Section 240.15c3-3) as custodian for
the investing entity with respect to the certificates of deposit issued for the
account of the investing entity.
3. Mutual Funds. Money market mutual funds regulated by the Securities &
Exchange Commission, with a dollar weighted average portfolio maturity of 60
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. Local Government Investment Pools. Eligible investment pools organized and
operating in compliance with PFIA 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.
EXHIBIT A
Revised 03/2012 Investment Policy Page 9 of 26
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.
5. Commercial Paper. Commercial paper is an authorized investment under this
policy if the commercial paper:
a. Has a stated maturity of 270 days or fewer from the date of its issuance; and
b. Is rated not less than A-1 or P-1 or an equivalent rating by at least:
1. two nationally recognized credit rating agencies; or
2. one nationally recognized credit rating agency and is fully secured by an
irrevocable letter of credit issued by a bank organized and existing under
the laws of the United States or any state.
6. Repurchase Agreements.
a. A fully collateralized repurchase agreement is an authorized investment
under PFIA, Subchapter A, if the repurchase agreement:
1. has a defined termination date;
2. is secured by a combination of cash and obligations described by PFIA,
section 2256.009(a)(1); and
3. requires the securities being purchased by the Town or cash held by the
Town to be pledged to the Town, held in the Town’s name, and deposited
at the time the investment is made with the Town or with the third-party
selected and approved by the Town; and
4. is placed through a primary government securities dealer, as defined by
the Federal Reserve, or a financial institution doing business in this state.
b. In this section, “repurchase agreement” means a simultaneous agreement to
buy, hold for a specific time, and sell back at a future date obligations
described by Section 2256.009(a)(1), at market value at the time the funds are
disbursed of not less than the principal amount of the funds disbursed.
The term includes a direct security repurchase agreement and a reverse
Security repurchase agreement.
c. Notwithstanding any other law, the term of any reverse security repurchase a
agreement may not exceed 90 days after the date the reverse security
repurchase agreement is delivered.
EXHIBIT A
Revised 03/2012 Investment Policy Page 10 of 26
d. Money received by an entity under the terms of a reverse security repurchase
agreement shall be used to acquire additional authorized investments, but the
term of the authorized investments acquired must mature not later than the
expiration date stated in the reverse security repurchase agreement.
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.
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.
Generally, PROSPER will not directly invest in securities maturing more than
five years from the date of purchase.
Maturity guidelines by fund type are discussed in Section IV, Investment
Strategy.
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.
EXHIBIT A
Revised 03/2012 Investment Policy Page 11 of 26
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 PROSPER deposits are defined by
Chapter 2257, Texas Government Code, the Public Funds Collateral Act, as
amended and meet the constraints of this Section III. A. 2.
b. Collateral Levels
The market value of pledged collateral must at all times be equal to or greater
than 102% of the principal and accrued interest for PROSPER balances, less
the applicable level of FDIC insurance.
c. Monitoring Collateral Adequacy
PROSPER shall require monthly reports of pledged securities marked to
market using quotes by a recognized market pricing service quoted on the
valuation date 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.
EXHIBIT A
Revised 03/2012 Investment Policy Page 12 of 26
d. Additional Collateral
If the collateral pledged for a deposit falls below adequate levels, as defined
above in Section 4.b. , 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 an Investment Officer 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.
C. Investment Advisers and Securities Dealers
Investment Advisers shall adhere to the spirit, philosophy and specific terms of this
Policy and shall invest within the same “Standard of Care” as defined in Section E. 3.
below. Securities Dealers shall avoid recommending or suggesting transactions
outside that “Standard of Care.”
EXHIBIT A
Revised 03/2012 Investment Policy Page 13 of 26
1. Selection of Investment Advisers
The selection of Investment Advisers will be performed by the Investment
Officers. The Investment Officers will establish criteria to evaluate Investment
Advisers including:
a. Adherence to PROSPER’s policies and strategies,
b. Investment performance and transaction pricing within accepted risk
constraints,
c. Responsiveness to PROSPER’s request for services, information and open
communication,
d. Understanding of the inherent fiduciary responsibility of investing public
funds, and
e. Similarity in philosophy and strategy with PROSPER’s objectives.
Selected Investment Advisers must be registered under the Investment Advisers
Act of 1940 or with the State Securities Board. A contract with an Investment
Adviser may not be for a term longer than two years and any contract, renewal or
extension must be approved by Town Council.
2. Selection of Authorized Securities Dealers
The ENTITY’s governing body or its Investment Officers acting as the
ENTITY’s Investment Committee shall, at least annually, review, revise, and
adopt a list of qualified broker/dealers and financial institutions that are
authorized to engage in investment transactions with the ENTITY.
a. Eligibility
Authorized firms may include primary dealers or regional dealers that qualify
under Securities & Exchange Commission Rule 15C3-1 (Uniform Net Capital
Rule), and qualified depositories.
b. Documentation Requirements
Brokers/dealers and financial institutions requesting to become qualified to
transact investment business with PROSPER shall be required to provide:
1. a completed Broker/Dealer Questionnaire that provides information
regarding creditworthiness, experience and reputation; and
EXHIBIT A
Revised 03/2012 Investment Policy Page 14 of 26
2. a Certification stating the firm has received, reviewed, understood and
agrees to comply with PROSPER’s investment policy. This Certification
also acknowledges that the business organization has implemented
reasonable procedures and controls in an effort to preclude investment
transactions conducted between PROSPER and the organization that are
not authorized by PROSPER’s investment policy, except to the extent that
this authorization is dependent on an analysis of the makeup of
PROSPER’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 instruments described above.
c. Competitive Bids
It is the policy of PROSPER to require competitive bidding for all individual
security purchases and sales except for:
1. transactions with money market mutual funds and local government
investment pools; and
2. treasury and agency securities purchased at issue through an approved
broker/dealer or financial institution.
D. Responsibility and Control
1. Authority to Invest
The Town Manager, Finance Director and the Accounting Manager are the
“Investment Officers” of the Town of Prosper. The PEDC Treasurer, PEDC
Executive Director and the Accounting 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 or more
Investment Officers 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.
EXHIBIT A
Revised 03/2012 Investment Policy Page 15 of 26
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 that as defined in PFIA, Section
2256.006. It 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.”
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.
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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:
1. beginning market value of the reporting period;
2. ending market value for the period;
3. fully accrued interest for the reporting period
c. State the book value and market value of each separately invested asset at the
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 PFIA.
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
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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, NCTCOG, ICMA, TSCPA, AICPA, or any
independent source or institute of higher learning approved by the Finance
Director.
a. The Investment Officers shall:
1. attend at least 10 hours of training relating to the Investment Officers’
responsibilities within 12 months after taking office or assuming duties;
and
2. attend an investment training session not less than once in a two-year
period that begins on the first day of the Town’s fiscal year and consists of
the two consecutive fiscal years after that date 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, diversification of investment
portfolio and compliance with PFIA.
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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.
3. 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. The weighted average days to maturity for the
operating fund portfolio shall be less than 365 days, and the maximum allowable
maturity shall be five years.
4. 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.
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 no longer than five 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 portfolio of Treasury securities with an average maturity roughly
equivalent to that of the portfolio shall be the minimum yield objective.
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. By managing Construction and Capital Improvement
Fund’s portfolio to exceed the anticipated expenditure schedule, the market risk of
the overall portfolio will be minimized.
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3. Liquidity – PROSPER funds used for construction and capital improvement
programs have reasonably predictable draw down schedules. 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
stated final maturity dates of investments held should not exceed the estimated
project completion date; the maximum maturity for all construction or capital
improvement funds shall be five years.
4. 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.
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
Debt Service Funds.
2. Safety of Principal – All investments shall be of high quality securities with no
perceived default risk. 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. Liquidity – Debt Service have predictable payment schedules. 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. The
weighted average days to maturity for the debt service fund portfolio shall be less
than 365 days and the maximum allowable maturity shall be two years.
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4. Marketability – Securities with active and efficient secondary markets are not
necessary as the event of an unanticipated cash requirement is not probable.
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 portfolio Treasury securities with an average maturity roughly equivalent
to that of the portfolio shall be the minimum yield objective.
D. Enterprise Funds
1. Suitability – Any investment eligible in the Investment Policy is suitable for the
Enterprise Funds.
2. Safety of Principal – All investments shall be of high quality securities with no
perceived default risk.
3. Liquidity – The Enterprise Fund requires short-term liquidity for some operations.
Short-term investment pools and money market mutual funds provide daily
liquidity where needed. The weighted average days to maturity for the enterprise
fund portfolio shall be less than 365 days and the maximum allowable maturity
shall be five years.
4. 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.
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 no longer than five years
6. Yield – Attaining a competitive market yield for comparable security-types and
portfolio restrictions is the desired objective. Portions of Enterprise Fund reserves
are available to earn higher yield on longer maturities. The yield of an equally
weighted, rolling portfolio Treasury securities with an average maturity roughly
equivalent to that of the portfolio shall be the minimum yield objective.
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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
purchased at a premium are gradually written down to the par value. The process has the effect
of recording the premium as a reduction to income over time.
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
1/100 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
EXHIBIT A
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class containing unique risk profile and security characteristics. A number of CMO classes are
expressly prohibited by Texas State law.
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
A1/P1 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 weighted by the dollar value of each security.
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.
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Federal Deposit Insurance Corporation (FDIC) – A federal agency that insures bank deposits,
currently up to $250,000 per account. Public deposits that exceed this amount must be properly
collateralized with investment securities or insured through a surety bond.
Financial Industry Regulatory Authority (FINRA) - the successor to the National
Association of Securities Dealers, Inc. (NASD). FINRA is a private corporation that focuses
on regulatory oversight of all securities firms that do business with the public; professional
training, testing and licensing of registered persons; arbitration and mediation; market regulation
by contract for the New York Stock Exchange, the NASDAQ Stock Market, Inc., the American
Stock Exchange LLC, and the International Securities Exchange.
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 Advisers Act of 1940 – Law which requires all Investment Advisers 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.
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Revised 03/2012 Investment Policy Page 24 of 26
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).
Mortgage-Backed Security (MBS) – Security backed by pools of home loan mortgages.
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 20 (as of 02/2011 ) 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 Investor Rule – Refers to an investment principle in the Public Funds Investment Act
outlining the fiduciary responsibilities of Investment Officers.
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.
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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.
Total Return – The sum of all investment income plus changes in 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 with a minimum purchase of $100. Bills pay interest only
at maturity. The interest is equal to the face value minus the purchase price. Auctions of four
week, 13 week and 26 week bills are every week, while auctions of 52 week bills are done every
four weeks. 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 with a minimum purchase of $100. Treasury notes, or T-notes, are issued in
terms of 2, 3, 5, 7, and 10 years, and pay interest every six months until they mature.
Uniform Net Capital Rule – SEC Rule 15C3-1 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 face value.
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
EXHIBIT A
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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
payments. The rate of return consist of a gradual accretion of the principal of the security and is
payable at par upon maturity.
EXHIBIT AEXHIBIT B
PROSPER IS A PLACE WHERE EVERYONE MATTERS
TOWN OF PROSPER, TEXAS
and
PROSPER ECONOMIC DEVELOPMENT CORPORATION
DRAFT - INVESTMENT POLICY
MARCH 2726, 20122013
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INVESTMENT POLICY
Table of Contents
PREFACE 3
I. PURPOSE 4
A. FORMAL ADOPTION 4
B. SCOPE 4
C. REVIEW AND AMENDMENT 5
D. INVESTMENT STRATEGY 5
II. INVESTMENT OBJECTIVES 5
A. SAFETY OF PRINCIPAL 5
B. MAINTENANCE OF ADEQUATE LIQUIDITY 5
C. YIELD 6
III. INVESTMENT POLICIES 6
A. AUTHORIZED INVESTMENTS 6
B. PROTECTION OF PRINCIPAL 10
C. INVESTMENT ADVISERS AND SECURITIES DEALERS 12
D. RESPONSIBILITY AND CONTROL 14
IV. INVESTMENT STRATEGY 18
A. OPERATING FUNDS 18
B. CONSTRUCTION AND CAPITAL IMPROVEMENT FUNDS 18
C. DEBT SERVICE FUNDS 19
D. ENTERPRISE FUNDS 20
APPENDIX “A” – GLOSSARY OF TERMS 21
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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. 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 respon sive 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.
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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, herein referred to as
“PFIA”.
B. Scope
This Investment Policy applies to all of the investment activities of PROSPER. These
funds are accounted for in the Town’s Comprehensive Annual Financial Report
(CAFR) and include:
General Funds
Debt Service Funds
Special Revenue Funds
Capital Project Funds
Enterprise Funds
Internal Service Funds
Economic Development Corporation Funds
Any new fund created by the Town
The Town of Prosper may consolidate cash balances from multiple funds to maximize
investment earnings. Investment income will be allocated to the various funds based
on their respective participation and in accordance with generally accepted
accounting principles.
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. PROSPER will also monitor changes in the credit
ratings of its investments quarterly using a number of resources including rating
agencies, broker/dealers or financial publications. PROSPER shall take all prudent
measures that are consistent with its investment policy to liquidate an investment that
does not have the minimum rating.
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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:
1. Investment suitability,
2. Preservation and safety of principal,
3. Liquidity,
4. Marketability prior to maturity of each investment,
5. Diversification, and
6. Yield.
II. 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.
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C. Yield
The investment portfolio shall be designed with the objective of attaining a market
rate of return throughout budgetary and economic cycles, taking into account the
investment risk constraints and liquidity needs. Return on investment is of secondary
importance compared to the safety and liquidity objectives described above. Core
investments are limited to relatively low risk securities in anticipation of earning a
fair return relative to the risk being assumed.
III. INVESTMENT POLICIES
A. Authorized Investments
Investments described below are authorized by PFIA 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 in the event that subsequent legislation renders certain securities as no
longer authorized for purchase by the Town. PROSPER’s funds governed by this
Policy may be invested in:
1. Obligations of Governmental Entities. Except for the items listed in 1.e. 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,
including obligations that are fully guaranteed or insured by the Federal
Deposit Insurance Corporation or by the explicit full faith and credit of the
United States;
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;
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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);
2. Obligations whose payments represent the principal stream of cash flow
from the underlying mortgage-backed security collateral and bear no
interest (Principal Only);
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).
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. Certificates of deposit or share certificates
provided the certificate is
a. Issued by a depository institution that has its main office or a branch office in
Texas that is:
1. Guaranteed or insured by the Federal Deposit Insurance Corporation or its
successor or the National Credit Union Share Insurance Fund or its
successor; or
2. Secured by obligations that are described by 1. (Obligations of
Governmental Entities) 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
1.e. above, that have a market value of not less than the uninsured amount
of the deposit; or
3. Secured in any other manner and amount provided by the law for deposits
of PROSPER.
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b. In addition to the authority to invest funds in certificates of deposit under
Subsection “a”, an investment in certificates of deposit made in accordance
with the following conditions is an authorized investment:
1. The funds are invested through:
(a) a broker that has its main office or a branch office in this state and is
selected from a list adopted by the investing entity as required by
Section 2256.025; or
(b) a depository institution that has its main office or a branch office in
this state and that is selected by the investing entity;
2. The broker or the depository institution selected by the investing entity
under Subdivision (1) arranges for the deposit of the funds in certificates
of deposit in one or more federally insured depository institutions,
wherever located, for the account of the investing entity;
3. The full amount of the principal and accrued interest of each of the
certificates of deposit is insured by the United States or an instrumentality
of the United States; and
4. The investing entity appoints the depository institution selected by the
investing entity under Subdivision (1), an entity described by Section
2257.041(d), or a clearing broker-dealer registered with the Securities and
Exchange Commission and operating pursuant to Securities and Exchange
Commission Rule 15c3-3 (17 C.F.R. Section 240.15c3-3) as custodian for
the investing entity with respect to the certificates of deposit issued for the
account of the investing entity.
3. Mutual Funds. Money market mutual funds regulated by the Securities &
Exchange Commission, with a dollar weighted average portfolio maturity of 60
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. Local Government Investment Pools. Eligible investment pools organized and
operating in compliance with PFIA 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.
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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.
5. Commercial Paper. Commercial paper is an authorized investment under this
policy if the commercial paper:
a. Has a stated maturity of 270 days or fewer from the date of its issuance; and
b. Is rated not less than A-1 or P-1 or an equivalent rating by at least:
1. two nationally recognized credit rating agencies; or
2. one nationally recognized credit rating agency and is fully secured by an
irrevocable letter of credit issued by a bank organized and existing under
the laws of the United States or any state.
6. Repurchase Agreements.
a. A fully collateralized repurchase agreement is an authorized investment
under PFIA, Subchapter A, if the repurchase agreement:
1. has a defined termination date;
2. is secured by a combination of cash and obligations described by PFIA,
section 2256.009(a)(1); and
3. requires the securities being purchased by the Town or cash held by the
Town to be pledged to the Town, held in the Town’s name, and deposited
at the time the investment is made with the Town or with the third-party
selected and approved by the Town; and
4. is placed through a primary government securities dealer, as defined by
the Federal Reserve, or a financial institution doing business in this state.
b. In this section, “repurchase agreement” means a simultaneous agreement to
buy, hold for a specific time, and sell back at a future date obligations
described by Section 2256.009(a)(1), at market value at the time the funds are
disbursed of not less than the principal amount of the funds disbursed.
The term includes a direct security repurchase agreement and a reverse
Security repurchase agreement.
c. Notwithstanding any other law, the term of any reverse security repurchase a
agreement may not exceed 90 days after the date the reverse security
repurchase agreement is delivered.
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d. Money received by an entity under the terms of a reverse security repurchase
agreement shall be used to acquire additional authorized investments, but the
term of the authorized investments acquired must mature not later than the
expiration date stated in the reverse security repurchase agreement.
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.
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.
Generally, PROSPER will not directly invest in securities maturing more than
five years from the date of purchase.
Maturity guidelines by fund type are discussed in Section IV, Investment
Strategy.
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.
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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 PROSPER deposits are defined by
Chapter 2257, Texas Government Code, the Public Funds Collateral Act, as
amended and meet the constraints of this Section III. A. 2.
b. Collateral Levels
The market value of pledged collateral must at all times be equal to or greater
than 102% of the principal and accrued interest for PROSPER balances, less
the applicable level of FDIC insurance.
c. Monitoring Collateral Adequacy
PROSPER shall require monthly reports of pledged securities marked to
market using quotes by a recognized market pricing service quoted on the
valuation date 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.
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d. Additional Collateral
If the collateral pledged for a deposit falls below adequate levels, as defined
above in Section 4.b. , 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 an Investment Officer 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.
C. Investment Advisers and Securities Dealers
Investment Advisers shall adhere to the spirit, philosophy and specific terms of this
Policy and shall invest within the same “Standard of Care” as defined in Section E. 3.
below. Securities Dealers shall avoid recommending or suggesting transactions
outside that “Standard of Care.”
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1. Selection of Investment Advisers
The selection of Investment Advisers will be performed by the Investment
Officers. The Investment Officers will establish criteria to evaluate Investment
Advisers including:
a. Adherence to PROSPER’s policies and strategies,
b. Investment performance and transaction pricing within accepted risk
constraints,
c. Responsiveness to PROSPER’s request for services, information and open
communication,
d. Understanding of the inherent fiduciary responsibility of investing public
funds, and
e. Similarity in philosophy and strategy with PROSPER’s objectives.
Selected Investment Advisers must be registered under the Investment Advisers
Act of 1940 or with the State Securities Board. A contract with an Investment
Adviser may not be for a term longer than two years and any contract, renewal or
extension must be approved by Town Council.
2. Selection of Authorized Securities Dealers
The ENTITY’s governing body or its Investment Officers acting as the
ENTITY’s Investment Committee shall, at least annually, review, revise, and
adopt a list of qualified broker/dealers and financial institutions that are
authorized to engage in investment transactions with the ENTITY.
a. Eligibility
Authorized firms may include primary dealers or regional dealers that qualify
under Securities & Exchange Commission Rule 15C3-1 (Uniform Net Capital
Rule), and qualified depositories.
b. Documentation Requirements
Brokers/dealers and financial institutions requesting to become qualified to
transact investment business with PROSPER shall be required to provide:
1. a completed Broker/Dealer Questionnaire that provides information
regarding creditworthiness, experience and reputation; and
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2. a Certification stating the firm has received, reviewed, understood and
agrees to comply with PROSPER’s investment policy. This Certification
also acknowledges that the business organization has implemented
reasonable procedures and controls in an effort to preclude investment
transactions conducted between PROSPER and the organization that are
not authorized by PROSPER’s investment policy, except to the extent that
this authorization is dependent on an analysis of the makeup of
PROSPER’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 instruments described above.
c. Competitive Bids
It is the policy of PROSPER to require competitive bidding for all individual
security purchases and sales except for:
1. transactions with money market mutual funds and local government
investment pools; and
2. treasury and agency securities purchased at issue through an approved
broker/dealer or financial institution.
D. Responsibility and Control
1. Authority to Invest
The Town Manager, Finance Director and the Accounting Manager are the
“Investment Officers” of the Town of Prosper. The PEDC Treasurer, PEDC
Executive Director and the Accounting 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 or more
Investment Officers 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.
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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 that as defined in PFIA, Section
2256.006. It 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.”
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.
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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:
1. beginning market value of the reporting period;
2. ending market value for the period;
3. fully accrued interest for the reporting period
c. State the book value and market value of each separately invested asset at the
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 PFIA.
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
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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, NCTCOG, ICMA, TSCPA, AICPA, or any
independent source or institute of higher learning approved by the Finance
Director.
a. The Investment Officers shall:
1. attend at least 10 hours of training relating to the Investment Officers’
responsibilities within 12 months after taking office or assuming duties;
and
2. attend an investment training session not less than once in a two-year
period that begins on the first day of the Town’s fiscal year and consists of
the two consecutive fiscal years after that date 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, diversification of investment
portfolio and compliance with PFIA.
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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.
3. 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. The weighted average days to maturity for the
operating fund portfolio shall be less than 365 days, and the maximum allowable
maturity shall be five years.
4. 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.
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 no longer than five 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 portfolio of Treasury securities with an average maturity roughly
equivalent to that of the portfolio shall be the minimum yield objective.
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. By managing Construction and Capital Improvement
Fund’s portfolio to exceed the anticipated expenditure schedule, the market risk of
the overall portfolio will be minimized.
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3. Liquidity – PROSPER funds used for construction and capital improvement
programs have reasonably predictable draw down schedules. 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
stated final maturity dates of investments held should not exceed the estimated
project completion date; the maximum maturity for all construction or capital
improvement funds shall be five years.
4. 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.
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
Debt Service Funds.
2. Safety of Principal – All investments shall be of high quality securities with no
perceived default risk. 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. Liquidity – Debt Service have predictable payment schedules. 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. The
weighted average days to maturity for the debt service fund portfolio shall be less
than 365 days and the maximum allowable maturity shall be two years.
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4. Marketability – Securities with active and efficient secondary markets are not
necessary as the event of an unanticipated cash requirement is not probable.
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 portfolio Treasury securities with an average maturity roughly equivalent
to that of the portfolio shall be the minimum yield objective.
D. Enterprise Funds
1. Suitability – Any investment eligible in the Investment Policy is suitable for the
Enterprise Funds.
2. Safety of Principal – All investments shall be of high quality securities with no
perceived default risk.
3. Liquidity – The Enterprise Fund requires short-term liquidity for some operations.
Short-term investment pools and money market mutual funds provide daily
liquidity where needed. The weighted average days to maturity for the enterprise
fund portfolio shall be less than 365 days and the maximum allowable maturity
shall be five years.
4. 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.
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 no longer than five years
6. Yield – Attaining a competitive market yield for comparable security-types and
portfolio restrictions is the desired objective. Portions of Enterprise Fund reserves
are available to earn higher yield on longer maturities. The yield of an equally
weighted, rolling portfolio Treasury securities with an average maturity roughly
equivalent to that of the portfolio shall be the minimum yield objective.
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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
purchased at a premium are gradually written down to the par value. The process has the effect
of recording the premium as a reduction to income over time.
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
1/100 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
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class containing unique risk profile and security characteristics. A number of CMO classes are
expressly prohibited by Texas State law.
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
A1/P1 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 weighted by the dollar value of each security.
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.
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Federal Deposit Insurance Corporation (FDIC) – A federal agency that insures bank deposits,
currently up to $250,000 per account. Public deposits that exceed this amount must be properly
collateralized with investment securities or insured through a surety bond.
Financial Industry Regulatory Authority (FINRA) - the successor to the National
Association of Securities Dealers, Inc. (NASD). FINRA is a private corporation that focuses
on regulatory oversight of all securities firms that do business with the public; professional
training, testing and licensing of registered persons; arbitration and mediation; market regulation
by contract for the New York Stock Exchange, the NASDAQ Stock Market, Inc., the American
Stock Exchange LLC, and the International Securities Exchange.
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 Advisers Act of 1940 – Law which requires all Investment Advisers 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.
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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).
Mortgage-Backed Security (MBS) – Security backed by pools of home loan mortgages.
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 20 (as of 02/2011 ) 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 Investor Rule – Refers to an investment principle in the Public Funds Investment Act
outlining the fiduciary responsibilities of Investment Officers.
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.
EXHIBIT AEXHIBIT B
Revised 03/20122013 Investment Policy Page 25 of 26
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.
Total Return – The sum of all investment income plus changes in 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 with a minimum purchase of $100. Bills pay interest only
at maturity. The interest is equal to the face value minus the purchase price. Auctions of four
week, 13 week and 26 week bills are every week, while auctions of 52 week bills are done every
four weeks. 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 with a minimum purchase of $100. Treasury notes, or T-notes, are issued in
terms of 2, 3, 5, 7, and 10 years, and pay interest every six months until they mature.
Uniform Net Capital Rule – SEC Rule 15C3-1 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 face value.
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
EXHIBIT AEXHIBIT B
Revised 03/20122013 Investment Policy Page 26 of 26
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
payments. The rate of return consist of a gradual accretion of the principal of the security and is
payable at par upon maturity.
To: Mayor and Town Council
From: Chris Copple, AICP, Planning Director
Cc: Harlan Jefferson, Town Manager
Hulon T. Webb, Jr., P.E., Director of Development Services/Town Engineer
Re: Town Council Meeting – March 26, 2013
Date: March 8, 2013
Agenda Item:
A public hearing to consider and act upon a request to rezone 0.5± acre, located on the southwest
corner of Coleman Street and Third Street (202 S. Coleman Street), from Single Family-15 to
Downtown Office (DTO). (Z13-0001).
Description of Agenda Item:
The zoning and land use of the subject and surrounding properties are as follows:
Zoning
Current Land Use Future Land Use Plan
Subject
Property Single Family-15 Undeveloped Old Town Core District -
Office
North Downtown Retail Multifamily Old Town Core District –
Main Street Retail
East Single Family-15 Single Family Residential Old Town Core District –
Single Family
South Single Family-15 Single Family Residential Old Town Core District –
Office
West
Commercial Undeveloped Old Town Core District -
Office
Requested Zoning – Z13-0001 is a request to rezone 0.5± acre, located on the southwest corner of
Coleman Street and Third Street (202 S. Coleman Street), from Single Family-15 to Downtown
Office (DTO).
Future Land Use Plan – The Future Land Use Plan (FLUP) recommends Old Town Core District -
Office for the property. The zoning request conforms to the FLUP.
Thoroughfare Plan – The property is adjacent to Coleman Street. The alignment of future Coleman
Street, including any additional right-of-way dedication, will be determined at the time of final plat.
Prosper is a place where everyone matters.
PLANNING
Water and Sanitary Sewer Services – Water and sanitary sewer service have been extended to the
property.
Access – Access to the property will be provided from Coleman Street and Third Street.
Schools – This property is located within the Prosper Independent School District (PISD). It is not
anticipated that a school site will be needed on this property.
Parks – It is not anticipated that this property will be needed for the development of a park.
Environmental Considerations – There is no 100-year floodplain located on the property.
Budget Impact:
There are no significant budget implications associated with the approval of this zoning request.
Legal Obligations and Review:
Zoning is discretionary. Therefore, the Town Council is not obligated to approve the request.
Notification was provided to neighboring property owners as required by state law. Town staff has
received two public hearing notice reply forms at this time, with one being in opposition to the
request.
Attached Documents:
1. Zoning Exhibit A.
2. Surrounding Zoning Map.
3. Future Land Use Plan - Old Town Core District Inset.
4. Public Hearing Notice Reply Forms.
Planning & Zoning Commission Recommendation:
At their February 19, 2013 meeting, the Planning & Zoning Commission recommended the Town
Council approve the request to rezone 0.5± acre, located on the southwest corner of Coleman
Street and Third Street (202 S. Coleman Street), from Single Family-15 to Downtown Office (DTO),
by a vote of 6-0.
Town Staff Recommendation:
Town staff recommends the Town Council approve a request to rezone 0.5± acre, located on the
southwest corner of Coleman Street and Third Street (202 S. Coleman Street), from Single Family-
15 to Downtown Office (DTO).
Z13-0001
SF-15
C
DTR
C DTO
DTSFS COLEMAN STS MAIN STW SECOND ST
E THIRD ST
W THIRD ST
E SECOND ST
0 50 100 150
Feet
1 inch = 100 feet
Old Town Transportation Plan
Section A: Four lane divided roadway with a landscaped median
and a landscaped parkway separating pedestrians from traffic.
This section serves as a major entrance into Old Town from the
east. No on-street parking.
Section B: Two lane divided boulevard with a large center median
containing landscaping. Wide travel lanes allow for bicycle
accommodation and a landscaped parkway separates pedestrians
from traffic. No on-street parking.
Section C: Two lane divided boulevard with a large center median
containing landscaping. On-street parallel parking is permitted and
a landscaped parkway separates pedestrians from traffic.
Section D: Two lane undivided urban roadway. Wide 20’ sidewalks
accommodate patio seating, pedestrian traffic and street trees.
On-street angled parking is permitted and bulb-outs are located at
intersections to enhance pedestrian visibility at crosswalks.
Section E: Two lane undivided roadway with on-street parallel
parking and an immediately adjacent 8’ sidewalk. A large private
setback of 25’ is included.
Section F: Two lane undivided roadway with on-street parallel
parking and a 15’ sidewalk. 10’ of the sidewalk will be located
within the right-of-way and the additional 5 feet will be a 5’
setback to building face.
Section G: Two lane divided roadway with a center median
containing landscaping. On-street parallel parking and a 10’
sidewalk are included.
Land Use
The predominant land use within Old Town will be single-family
residential. All infill development within such areas should conform to the
architectural guidelines established for the Old Town district. Such
guidelines are created to protect the continuity of look and feel within Old
Town.
Along Broadway and First Street, single-family uses will gradually
transition to boutique, cottage-style office and/or specialty retail uses.
Broadway west of Coleman, will be the retail core of the downtown.
Shops, restaurants, and small office uses may be located within the main
street retail area. This area is intended to be the heart and main activity
center of the Old Town Area. As redevelopment occurs, building
frontages should be brought to the property line to be consistent with
ultimate streetscape improvements.
Adjacent to the retail core, a mixed-use district incorporating mixed use
lofts/apartments will serve as a buffer between the Business Park and the
core of Old Town. This area will also provide rooftops that service
adjacent retail establishments.
The Green space area will serve as a community park and its location
adjacent to the retail core of Old Town and the mixed-use district will
make it an opportunistic and useable open space area.
Niche retail is recommended along Preston Road and at the northern end
of Coleman. Retail development within these areas should fit within the
architectural framework of the Old Town area. Setbacks should be
reduced, when possible, along Coleman and Broadway to frame the
roadways.
To: Mayor and Town Council
From: Chris Copple, AICP, Planning Director
Cc: Harlan Jefferson, Town Manager
Hulon T. Webb, Jr., P.E., Director of Development Services/Town Engineer
Re: Town Council Meeting – March 26, 2013
Date: March 8, 2013
Agenda Item:
A public hearing to consider and act upon a request to amend Planned Development -8 (PD-8),
Exhibit C (Hike and Bike Trail Exhibit), located at the terminus of Lake Trail Lane, south of Frontier
Parkway. The property is 25.0± acres. (Z13-0004).
Description of Agenda Item:
The zoning and land use of the subject and surrounding properties are as follows:
Zoning
Current Land Use Future Land Use Plan
Subject
Property
Planned Development-8-
Single Family
Under Construction
(Single Family Residential) Medium Density Residential
North
Agricultural Frontier Park Medium Density Residential
East
Planned Development-8-
Single Family Undeveloped Medium Density Residential
South
Planned Development-8-
Single Family Undeveloped Medium Density Residential
West
Planned Development-8-
Single Family
Single Family Residential
(Lakes of Prosper) Medium Density Residential
Requested Zoning – Z13-0004 is a request to amend Planned Development-8 (PD-8), Exhibit C
(Hike and Bike Trail Exhibit). The property is 25.0± acres and is currently being developed as
Lakes of Prosper, Phase 2C. The previously approved location for the hike and bike trails in Lakes
of Prosper, Phase 2C, is provided on the existing Exhibit C of PD-8, which is attached. The
existing Exhibit C was approved by the Town Council in 2002, prior to the adoption of the Town’s
Parks Master Plan in 2007. The applicant’s proposed Exhibit C reflects the request that Trail C
and Trail E be removed from Exhibit C. In addition, Trail A is not proposed to extend east of Trail
Prosper is a place where everyone matters.
PLANNING
B, as currently shown on the existing Exhibit C. There are no other amendments being requested
to the PD.
The Town’s Parks Master Plan recommends the creation of a hike and bike trail system to provide
opportunity for recreation, as well as alternative modes of transport, which links parks, schools,
greenbelts, and open spaces. Town staff supports the proposed amendment, as it does not
eliminate the trails along Lake Trail Drive (Trail A) and in the gas easement (Trail B), which provide
recreation in the Lakes of Prosper development and connectivity to Frontier Park from Prosper
Trail. The residential sidewalks internal to the Lakes of Prosper subdivision will provide
connectivity for Lakes of Prosper residents to the Town’s hike and bike trail system.
Budget Impact:
There are no significant budget implications associated with the approval of this zoning request.
Legal Obligations and Review:
Zoning is discretionary. Therefore, the Town Council is not obligated to approve the request.
Notification was provided to neighboring property owners as required by state law. Town staff has
received four public hearing notice reply forms, with three in opposition to the request.
Attached Documents:
1. Zoning Exhibits A, B, and Proposed C.
2. Existing Exhibit C (approved in 2002).
3. Planning & Zoning Commission’s Recommendation as shown on Exhibit C
4. Aerial exhibit provided by the applicant showing area’s proposed hike & bike trail system.
5. Zoning map of the surrounding area.
6. Parks Master Plan map.
7. Public hearing notice reply forms.
8. Planned Development-8 (Ordinance No. 02-48).
Parks & Recreation Board Recommendation:
At their February 13, 2013 meeting, the Parks & Recreation Board recommended the Planning &
Zoning Commission and Town Council approve the request to amend Planned Development-8
(PD-8), Exhibit C (Hike and Bike Trail Exhibit) as submitted, by a vote of 5-0.
Planning & Zoning Commission Recommendation:
At their March 5, 2013 meeting, the Planning & Zoning Commission recommended the Town
Council approve the request to amend Planned Development-8 (PD-8), Exhibit C (Hike and Bike
Trail Exhibit), by a vote of 5-1, subject to:
1. The portion of Trail C, west of Trail B, being extended westward to the pond, remaining on
Exhibit C.
Commissioner Keith voted in opposition to the motion.
Town Staff Recommendation:
Town staff recommends the Town Council approve the request to amend Planned Development-8
(PD-8), Exhibit C (Hike and Bike Trail Exhibit) as submitted.
EXHIBIT B
The PD Amendment is to modify the development’s trail system to comply with the Town’s
Trail Master Plan.
Z13-0004
A
SF-15
CC
CC
C
C
CC
A
CC
C
R SF-10
CC A
SF-15
SF-10PD-8
SF-10/15PD-22
SF-10PD-12
SF-10PD-8
SF-10/12.5PD-24
MFPD-35
OPD-33 O/IPD-26R/C/OPD-3 CCPD-52 SF-12.5PD-30
W FRONTIER PKWY
W PROSPER TRLN DALLAS PKWYN COLEMAN STKIRKWOOD LNTALON LNLA
K
E
T
R
A
I
L
L
N
DIANNA DRACCESS DRN WESLEY DRHAMPSHIRE DR
DEVONSHI
R
E
D
R
RIDGECROSS RD
DARIAN DR
SAGEBRUSH DR
KOMRON CT
OXFORD PL
TUMBLEWEED DR
FOX RIDGE TRL
NORFOLK DRDYLAN DRQUIET OAK LN
MOONLIGHT TRLCORAL RIDGE CT
0 350 700 1,050
Feet
1 inch = 700 feet
To: Mayor and Town Council
From: Chris Copple, AICP, Planning Director
Cc: Harlan Jefferson, Town Manager
Hulon T. Webb, Jr., P.E., Director of Development Services/Town Engineer
Re: Town Council Meeting – March 26, 2013
Date: March 8, 2013
Agenda Item:
A public hearing to consider and act upon a request to amend Planned Development -2 (PD-2),
Exhibit C, Section 2.06 (Thoroughfare Screening), located adjacent to the western boundary of
Willow Ridge, Phases 4A and 4B, along future Lovers Lane. The request is for 0.3± acre. (Z13-
0005).
Description of Agenda Item:
The zoning and land use of the subject and surrounding properties are as follows:
Zoning
Current Land Use Future Land Use Plan
Subject
Property
Planned Development-2-
Single Family-10
Willow Ridge Landscape
Buffer along Lovers Lane Medium Density Residential
North
Planned Development-2-
Single Family-10 Undeveloped Medium Density Residential
East
Planned Development-2-
Single Family-10
Single Family Residential
(Willow Ridge) Medium Density Residential
South
Planned Development-27-
Commercial Corridor Undeveloped U.S. 380 District
West
Planned Development-3-
Retail/Commercial and
Multifamily
Undeveloped Town Center District
Requested Zoning – Z13-0005 is a request to amend Planned Development-2 (PD-2), Exhibit C
(Thoroughfare Screening). In 2010, the Town Council adopted an amendment to PD-2, Exhibit C,
Section 2.06, which is attached (Ord. No. 10-107) to allow for an 8’ cedar board-on-board fence to
Prosper is a place where everyone matters.
PLANNING
serve as the screening wall along future Lovers Lane in place of the required ornamental fence.
The 8’ cedar board-on-board fence is currently under construction. The purpose of this Planned
Development (PD) amendment is to modify the thoroughfare screening requirement along future
Lovers Lane to allow for a solid row of eastern red cedar trees (an ornamental tree), which are
proposed to be six feet in height at the time of planting, to meet the landscaping requirements as
shown on Exhibit C. The Town’s Subdivision Ordinance at the time Willow Ridge was platted
required a solid row of shrubs with one large 3” caliper tree planted every 30 feet. There are no
other amendments being requested to the PD.
Budget Impact:
There are no significant budget implications associated with the approval of this zoning request.
Legal Obligations and Review:
Zoning is discretionary. Therefore, the Town Council is not obligated to approve the request.
Notification was provided to neighboring property owners as required by state law. Town staff has
received one public hearing notice reply form, not in opposition to the request.
Attached Documents:
1. Zoning Exhibits A, B, and C.
2. Planned Development-2 Amendment (Ordinance No. 10-107)
3. Zoning map of the surrounding area.
4. Public hearing notice reply form.
Planning & Zoning Commission Recommendation:
At their March 5, 2013 meeting, the Planning & Zoning Commission recommended the Town
Council approve the request to amend Planned Development-2 (PD-2), Exhibit C, Section 2.06
(Thoroughfare Screening) as submitted, by a vote of 6-0.
Town Staff Recommendation:
Town staff recommends the Town Council approve the request to amend Planned Development-2
(PD-2), Exhibit C, Section 2.06 (Thoroughfare Screening) as submitted.
Exhibit C
Willow Ridge Planned Development-2 Amendment
Planned Development Standards
Except as otherwise set forth in these development standards, the property, as described in
Exhibit A, shall develop under Ordinance No. 10-107 as adopted by the Town of Prosper
Town Council on November 23, 2010.
2.06 Thoroughfare Screening: Thoroughfare screening shall be provided along future
Lovers Lane (a four-lane divided thoroughfare). The landscaping shall consist of a
continuous row of Eastern Red Cedars, planted on eight (8) foot centers, a minimum of six
(6) feet tall at the time of planting as shown on the attached landscape exhibit. An eight (8)
foot cedar board-on-board wood fence with a common stain color, supported by metal posts
anchored in concrete, shall be constructed along the shared property line of the single family
residential lots and the ten (10) foot open space lot, in place of the required ornamental
metal fence. The wood fence, the required landscaping, and the open space lot shall be
owned and maintained by the Willow Ridge Homeowner’s Association (HOA).
Z13-0005
SF-10PD-2
MFPD-3
R/C/OPD-3
SF-10PD-2
CCPD-27
R/C/OPD-3
CCPD-27
R/C/OPD-3
LOVERS LNABBEY LN
LANCER LN
H
AW
T
H
O
R
N
D
R
WHISTLER LN
MYSTIC WAYSTRATFORD DR DREXEL LNBLUE RIDGE DRMOSS GLEN DR0 100 200 300
Feet
1 inch = 200 feet
To: Mayor and Town Council
From: Chris Copple, AICP, Planning Director
Cc: Harlan Jefferson, Town Manager
Hulon T. Webb, Jr., P.E., Director of Development Services/Town Engineer
Re: Town Council Meeting – March 26, 2013
Date: March 8, 2013
Agenda Item:
A public hearing to consider and act upon a request to rezone 1.5± acres, located on the southeast
corner of Preston Road and Hays Road, from Office (O) to Planned Development-Office (PD-O).
(Z13-0002).
Description of Agenda Item:
The zoning and land use of the subject and surrounding properties are as follows:
Zoning
Current Land Use Future Land Use Plan
Subject
Property Office Undeveloped Retail & Neighborhood
Services
North
Office Right-of-Way Right-of-Way
East
Agricultural and Single
Family-15 Single Family Residential Low Density Residential
South
Office Bank Retail & Neighborhood
Services
West
Single Family-10 and
Extraterritorial Jurisdiction
(ETJ)
Single Family Residential
(Preston Lakes) and
Veterinarian Clinic and/or
Outdoor Kennel
Medium Density Residential
Requested Zoning – Z13-0002 is a request to rezone 1.5± acres, located on the southeast corner
of Preston Road and Hays Road, from Office (O) to Planned Development-Office (PD-O). The PD-
O regulations are attached. The proposed PD-O District allows for the development of a 12,200
square foot office building. The applicant is requesting a PD-O district in search of relief from the
Town’s maximum building area standard and the Town’s landscape and open space requirements,
due to the shape and size of the property. Town staff has compared the proposed PD-O standards
to the straight O zoning and proposed standards that vary from straight O zoning are:
Prosper is a place where everyone matters.
PLANNING
1. Maximum Floor Area – The PD allows for a 12,200 square foot building as shown on Exhibit D.
The Town’s Zoning Ordinance prohibits a building from exceeding 10,000 square feet, unless
the entire structure is more than 200 feet from a residential use or zone.
2. Landscape Setbacks – The PD allows for a ten (10) foot landscape setback adjacent to Hays
Road and a zero (0) foot setback along the southern property line. The Town’s Zoning
Ordinance requires a fifteen (15) foot landscape setback adjacent to Hays Road and a five (5)
foot setback along the southern property line
3. Additional Open Space Area – The applicant is requesting no additional open space be required
since 45.8% of the property is located in landscape setbacks and required landscape areas.
The Town’s Zoning Ordinance requires an additional 7% of the net lot area be provided as open
space, beyond those areas included in required landscape setbacks and islands.
4. Landscaping Standards – The PD allows for flexible landscape standards due to the size and
shape of the property. The applicant has attached Exhibit G, which is the conceptual landscape
plan. The applicant is proposing to increase the size of the trees along Preston Road, in
exchange for reducing the number of large trees. The applicant is also proposing to reduce the
number of shrubs along Hays Road and eliminate the required planting along the southern
property line, due to the request for the reduced landscape setbacks.
5. Building and Architectural Standards – The PD includes specific building and architectural
standards, as shown on the attached Exhibit F. The building materials generally conform to the
requirements in the Town’s Zoning Ordinance.
Town staff recommends the Town Council carefully review the proposed landscaping, open space,
building, architectural, and site design standards to determine if the applicant’s proposed standards
are adequate, since the request includes several deviations from the Town’s Zoning Ordinance.
Future Land Use Plan – The Future Land Use Plan (FLUP) recommends Retail & Neighborhood
Service uses for the property. The Retail & Neighborhood Service areas typically include retail
establishments, banks, neighborhood office, and small medical offices. The Town’s
Comprehensive Plan recommends small scale office and retail along Preston Road, as big box
uses, mid-rise development, and more intense land uses were generally not viewed as favorable
along Preston. The Town’s Comprehensive Plan also recommends large landscaped setbacks
along Preston Road and the placement of parking areas behind the building, rather than along the
roadway frontage. The requested PD-O District allows for the development of a 12,200 square
foot office building. The zoning request conforms to the FLUP.
Thoroughfare Plan – The property is adjacent to Preston Road, a future six lane divided
thoroughfare, and Hays Road, a future two lane divided commercial collector. The zoning exhibit
complies with the Thoroughfare Plan.
Water and Sanitary Sewer Services – Water and sanitary sewer service have been extended to the
property.
Access – Access to the property is provided directly from Hays Road and from Preston Road
through cross access with the property to the south.
Schools – This property is located within the Prosper Independent School District (PISD). It is not
anticipated that a school site will be needed on this property.
Parks – It is not anticipated this property will be needed for the development of a park.
Environmental Considerations – There is no 100 year floodplain located on the property.
Budget Impact:
There are no significant budget implications associated with the approval of this zoning request.
Legal Obligations and Review:
Zoning is discretionary. Therefore, the Town Council is not obligated to approve the request.
Notification was provided to neighboring property owners as required by state law. Town staff has
received four public hearing notice reply forms, with none in opposition to the request.
Attached Documents:
1. Zoning Exhibits A, B, C, D, E, F, and G.
2. Zoning map of the surrounding area.
3. Page 54 of the Town’s Comprehensive Plan – Preston Road Corridor
4. Public hearing notice reply forms.
Planning & Zoning Commission Recommendation:
At their March 5, 2013 meeting, the Planning & Zoning Commission recommended the Town
Council approve the request to rezone 1.5± acres, located on the southeast corner of Preston
Road and Hays Road, from Office (O) to Planned Development-Office (PD-O), by a vote of 5-1.
Commissioner DeMattia voted in opposition to the request.
Town Staff Recommendation:
Town staff recommends the Town Council approve the request to rezone 1.5± acres, located on
the southeast corner of Preston Road and Hays Road, from Office (O) to Planned Development-
Office (PD-O).
Exhibit
‘B’
STATEMENT
OF
INTENT
AND
PURPOSE
PROPOSED
SPECULATIVE
OFFICE
BUILING
Prosper,
Texas
Intent
It
is
our
intention
to
show
the
improvements
planned
for
the
existing
property
as
described
in
the
enclosed
surveys
and
located
along
Highway
289,
Preston
Road,
south
of
the
intersection
of
Preston
Road,
Hays
Road
and
Chandler
Circle.
Due
to
the
triangular
shape
of
the
site
we
are
requesting
a
Site
Specific
Planned
Development
designation
with
minor
modifications
to
existing
zoning
requirements.
Purpose
The
office
building
will
be
designed
to
attract
high-‐end
users
with
a
Class-‐A
office
building
design.
Construction
will
be
concrete
foundation
supporting
a
structural
steel
frame
and
stone
and
brick
veneer
building
designed
to
set
a
new
standard
for
professional
office
buildings
in
the
Town
of
Prosper.
This
development
will
continue
the
pattern
of
successful
development
by
the
Owner
in
the
Town
of
Prosper
and
will
generate
revenue
and
new
jobs
for
local
citizens.
PROPOSED OFFICE USEONE STORY, HEIGHT: 24" MAX., AREA: 12,169.0 sfPRESTON ROAD (State Hwy 289)HAYS ROAD (Future Collector Section, 37' B-B)DEVELOPMENT PLANSITE SUMMARYBRIDGEPORTCHANDLER NORTHSheet NumberSealSheet NameRevision DateScale:Date:File:Project:Stephen Hundley AIA7921 Deer TrailDallas, Texas 75238214-683-0104shundley@schaia.orgARCHITECT:Independent Bank 900 Preston Rd.FF = 791.0 (EST)LANDSCAPE COVERAGE & OPEN SPACEOWNER:LOCATION MAPSuite 163ALL WORK TO BE COMPLETED IN ONE PHASEFay Etta Lookadoo Revocable TrustArch Site Plan.dwg1"=40'-0"214-232-85508350 Meadow RoadPROPOSED NORTH PRESTON PLACE OFFICE BUILDING EXHIBIT 'D'D.O1ZONING CASE # Z13-0002BUILDING FOOTPRINTProsper Office Building28 Dec, 2012Dallas, TX 75231Suite 2972-240-5999SURVEYOR:Garland, TX 75043AJ Bedford Group, Inc.4222 Rsehill RoadEXHIBIT 'D' CONCEPTUAL CURRENT ZONING:SF-15 Single FamilyCURRENT ZONING:CURRENT ZONING:SF-10 Single FamilyCURRENT ZONING:SF-10 Single FamilyCURRENT ZONING: O OfficeCURRENT ZONING: SF-10 AgriculturalEXISTING LAND USE: SINGLE FAMILYFUTURE LAND USE: MEDIUM DENSITY RESIDENTIALSingle FamilyExisting Land Use:Single FamilyFuture Land Use Plan:Low Density ResidentialEXHIBIT 'D'ARCHITECTURAL SITE PLAN
Exhibit
‘E’
DEVELOPMENT
SCHEDULE
PROPOSED
SPECULATIVE
OFFICE
BUILING
Prosper,
Texas
Schedule
It
is
our
intention
to
submit
for
permit
as
soon
as
practical
following
Site
Plan
and
PD
approval
and
build
out
the
project
in
6
to
8
months.
We
hope
to
complete
the
project
before
the
end
of
the
year.
Sheet NumberSealSheet NameRevision DateScale:Date:File:Project:Stephen Hundley AIA7921 Deer TrailDallas, Texas 75238214-683-0104shundley@schaia.orgARCHITECT:EAST ELEVATION WEST ELEVATIONSOUTH ELEVATIONNORTH ELEVATIONEXTERIOR ELEVATIONSVIEW LOOKING NORTHWESTVIEW LOOKING NORTHEASTVIEW LOOKING SOUTHEASTProsper Office BuildingArch Elevations 03.dwg28 Dec, 20123/32"=1'-0"OWNER:Fay Etta Lookadoo Revocable Trust8350 Meadow RoadSuite 163Dallas, TX 75231214-987-3807SP.O2EXHIBIT 'F'EXT ELEVATIONSGENERAL NOTES:ZONING CASE # Z13-0002MATERIAL SUMMARYMATERIAL SUMMARYEAST ELEVATIONWEST ELEVATIONSOUTH ELEVATIONNORTH ELEVATIONEXHIBIT 'F'EXTERIOR ELEVATIONS
HAYS ROAD (Future Collector Section, 37' B-B)
PROPOSED BUILDING
COWNER:
Suite 163
Fay Etta Lookadoo Revocable Trust
214-232-8550
8350 Meadow Road
Dallas, TX 75231
C
Z12-0004
A
SF-15
SF-10
O
C
A
C
SF-15SF-15
SF-15
SF-15 SF-15
SF-15
SF-15
SF-15
SF-15
R O
RPD-55
OPD-58
RPD-56
RPD-46
SFPD-31 OPD-31E PROSPER TRL
N PRESTON RDHAYS RDCHANDLER CIR
HIGHPOINT DR
BRIDGEPORT
D
R
PRESTONVIEW DR
PASEWARK CIR
HICKORY CREEK DR
TABLE
R
O
C
K
D
R
HURON CTGRAPEVINE CTWHITNEY CTSALT LAKE CTCHANDLER CIR
0 150 300 450
Feet
1 inch = 300 feet
54
Comprehensive Plan
Town of Prosper
COMMUNITY CHARACTER
Corridors and Districts
Preston Road
A major component of the visioning exercises pertained to the three major corridors in Prosper:
Preston Road, Dallas North Tollway and Highway 380. The following discussions on each corridor
are a result of the visioning exercises and feedback received from the comprehensive plan
advisory committee and the general public.
Land Use
Preston Road was described by numerous residents as “our road.”
Traversing the center of the community, Preston Road will have a
variety of land uses and will have a varying context. In the
southern portion of Prosper, Preston Road will accommodate
higher degrees of traffic, particularly as it traverses the Town
Center. Retail, office and some medium density residential will be
located along Preston Road on the southern end of the Town,
gradually becoming more residential in nature as it moves north.
Small scale office and retail may be located in certain areas along
Preston Road and these should be the types of uses which service
adjacent neighborhoods. Big box uses, mid-rise development, and
more intense land uses were generally not viewed as favorable as
small-scale retail and office uses. Residents identified an upscale
grocery store, such as a Central Market or a Whole Foods, as one
of their top priorities along Preston Road.
Character
The character of Preston Road should be more rural in nature,
respecting the small-town character of the community. Large,
heavily landscaped setbacks should be prevalent along the
roadway helping to differentiate Prosper from Frisco while
also providing a natural sense of calm for Prosper residents.
Wide setbacks are particularly important as the roadway
traverses residential areas generally north of First Street.
Areas of retail should be designed to the highest level of
quality and architectural characteristics within individual
developments should follow a theme consistent with recently
completed development. Residents felt that retail areas
should be organized in a nodal nature rather than in a strip
center fashion in order to prevent the entire roadway
frontage from being consumed by retail. Unanchored, stand-
alone retail establishments should be discouraged in favor of
a nodal shopping center development.
To: Mayor and Town Council
From: Chris Copple, AICP, Planning Director
Cc: Harlan Jefferson, Town Manager
Hulon T. Webb, Jr., P.E., Director of Development Services/Town Engineer
Re: Town Council Meeting – March 26, 2013
Date: March 8, 2013
Agenda Item:
A public hearing to consider and act upon a request to amend Planned Development-14 (PD-14),
Exhibit C, Section 4.06 (Conceptual Development Plan), located on the south side of Fishtrap
Road, 2,400± feet east of Teel Parkway. The property is 145.4± acres. (Z13-0006).
Description of Agenda Item:
The zoning and land use of the subject and surrounding properties are as follows:
Zoning
Current Land Use Future Land Use Plan
Subject
Property
Planned Development-14-
Business Park (Zoned in
2004)
Undeveloped Medium Density Residential
North
Agricultural and Planned
Development-14-Single
Family/Retail
Undeveloped and Single
Family Residential
Floodplain, Medium Density
Residential, and Retail &
Neighborhood Services
East
Commercial Undeveloped Tollway District
South
Planned Development-14-
Business Center Undeveloped U.S. 380 District
West
Planned Development-48-
Commercial Undeveloped Medium Density Residential
Requested Zoning – Z13-0006 is a request to amend Planned Development-14 (PD-14), Exhibit C,
Section 4.06 (Conceptual Development Plan). The subject property is zoned PD-14-Business
Park. PD-14, Exhibit C, Section 4.06 requires a Conceptual Development Plan be submitted and
approved by the Town Council prior to development of any tract of land within a given area in the
Prosper is a place where everyone matters.
PLANNING
Business Park of Business Center areas. The purpose of the Planned Development (PD)
amendment is to include a Conceptual Development Plan for the property, which illustrates
thoroughfare locations, single family residential areas, non-residential areas, and natural features.
The Conceptual Development Plan complies with the approved PD-14 standards. The property
shall develop to PD-14 standards. PD-14-Business Park allows for the development of a maximum
of 300 single family lots with a minimum lot size of 7,500 square feet (See pages 21-22 of PD-14).
Future Land Use Plan – The Future Land Use Plan (FLUP) recommends Medium Density
Residential uses for the property. The Conceptual Development Plan complies with the approved
PD-14 standards.
Thoroughfare Plan – The Conceptual Development Plan complies with the Thoroughfare Plan.
Water and Sanitary Sewer Services – Water and sanitary sewer service are currently being
extended to the property.
Access – Access to the property is provided from Fishtrap Road.
Schools – This property is located within the Prosper Independent School District. Any future
school sites are to be determined at the time of preliminary plat.
Parks – This property is subject to the Town’s park dedication requirements. Any future park sites
are to be determined at the time of preliminary plat.
Environmental Considerations – The Conceptual Development Plan shows the boundary of the
100 year floodplain located on the property.
Budget Impact:
There are no significant budget implications associated with the approval of this Conceptual
Development Plan.
Legal Obligations and Review:
Notification was provided to neighboring property owners as required by state law. Town staff has
not received any public hearing notice reply forms.
Attached Documents:
1. Conceptual Development Plan.
2. Zoning map of the surrounding area.
3. Planned Development-14.
Planning & Zoning Commission Recommendation:
At their February 19, 2013 meeting, the Planning & Zoning Commission recommended the Town
Council approve the request to amend Planned Development-14 (PD-14), Exhibit C, Section 4.06
(Conceptual Development Plan) as submitted, to include a Conceptual Development Plan for a
145.4± acre portion the property, by a vote of 6-0.
Town Staff Recommendation:
Town staff recommends the Town Council approve the request to amend Planned Development-
14 (PD-14), Exhibit C, Section 4.06 (Conceptual Development Plan) as submitted, to include a
Conceptual Development Plan for a 145.4± acre portion the property.
Z13-0006
A
C
A
A
R
SF-15
BPPD-14
BCPD-14
SFPD-14
CPD-48
CCPD-43
SFPD-40
SF-10/12.5PD-23
CPD-47
CCPD-48
CCPD-47
CPD-43
RPD-14
MPD-40
W UNIVERSITY DR
FISHTRAP RD
S TEEL PKWYW FIRST ST
S LEGACY DRARTESIA BLVDHARPER RDCR 26PALESTINE DR TEXOMA TRLTAHOE TRLNACONA DRMEDINA LNCROSSLAKE CT
FIELDS RDTOLEDO BEND CT
PLACID TRL
ALVARADO DR
0 500 1,000 1,500
Feet
1 inch = 1,000 feet
Page 1 of 2
To: Mayor and Town Council
From: Hulon T. Webb, Jr., P.E., Director of Development Services/Town Engineer
CC: Harlan Jefferson, Town Manager
Michael Bulla, CIP Project Manager
Re: Town Council Meeting – March 26, 2013
Date: March 18, 2013
Agenda Item:
Consider and act upon 1) a Letter Agreement between the Town of Prosper and Blue Star Land,
LP, related to the proposed expenditures for SH 289 improvements to be included in future
TIRZ Financing Agreement and 2) adopting Resolution No. 13-25 authorizing the Town
Manager to execute the same.
Description of Agenda Item:
With the current Texas Department of Transportation (TxDOT) widening project of Preston
Road (SH 289), Blue Star Land, LP, has contracted with Mario Sinacola & Sons, Inc., to
construct improvements to serve the future Gates of Prosper development. These
improvements include two (2) median openings and dual left turn lanes in both directions at the
intersection of SH 289/Richland Boulevard and SH 289/Lovers Lane as depicted on the Town’s
Thoroughfare CIP Master Plan.
Budget Impact:
The proposed expenditures of $307,581.10 by Blue Star Land, LP, for the proposed SH 289
improvements to be included in the future TIRZ Financing Agreement.
Legal Obligations and Review:
The Letter Agreement was prepared by Pete Smith of Nichols, Jackson, Dillard, Hager & Smith,
L.L.P., for the Town of Prosper to make sure the agreement was worded appropriately to be
included in the future TIRZ Financing Agreement. It was also reviewed and approved by Blue
Star’s attorney.
Attached Documents:
The following documentation is being provided for review:
1. Letter Agreement
2. Resolution
3. Town’s Thoroughfare CIP Master Plan
ENGINEERING
Prosper is a place where everyone matters.
Page 2 of 2
Town Staff Recommendation:
Town staff recommends that the Town Council: approve a Letter Agreement between the Town
of Prosper and Blue Star Land, LP, related to the proposed expenditures for SH 289
improvements to be included in future TIRZ Financing Agreement and 2) adopt Resolution No.
13-25 authorizing the Town Manager to execute the same.
-1-
LETTER AGREEMENT BY AND BETWEEN
THE TOWN OF PROSPER, TEXAS AND BLUE STAR LAND, L.P.
(Preston Road Median Openings and Turn Bays)
This Letter Agreement (the “Agreement”) is entered into by and between the Town of
Prosper, Texas, a municipal corporation (“Town”), and Blue Star Land, L.P., a Texas limited
partnership, Blue Star Allen Land, LP, a Texas limited partnership and 183 Land Corporation, a
Texas corporation (collectively, “BSL”).
RECITALS:
WHEREAS, the Texas Department of Transportation (“TxDOT”) has begun construction
of certain improvements (the “Project”) to State Highway 289/Preston Road (“Preston Road”)
some of which improvements are adjacent to and benefit property owned by BSL;
WHEREAS, in conjunction with the construction of the Project and based on the benefit
of the Project to the Town and BSL, BSL requested the construction of median openings and one
or more attached left turn bay(s) on Preston Road at the locations hereinafter described
(hereinafter defined as the “Property Median Openings”) as depicted in EXHIBIT A, attached
hereto and incorporated herein for all purposes;
WHEREAS, Mario Sinacola & Sons Excavating, Inc. (Sinacola) is constructing the
Project for TxDOT;
WHEREAS, TxDOT and Prosper have allowed BSL to enter a contract directly with
Sinacola to construct the Property Median Openings and BSL has agreed to pay Sinacola the cost
of the work to construct the Property Median Openings (“Property Median Opening Costs”) in
accordance with the cost schedule provided in EXHIBIT B;
WHEREAS, the Town Council adopted Ordinance No. 08-103 on October 28, 2008
designating Tax Increment Reinvestment Zone No. One (“TIRZ”) for the purpose of financing
for certain public improvements for the Gates of Prosper Development (“TIRZ Projects”);
WHEREAS, the Town and BSL entered into that certain Development and Financing
Agreement, dated March 25, 2008, as amended by that certain First Amendment to Development
and Financing Agreement dated May 17, 2011, as amended by that certain Second Amendment
to Development and Financing Agreement dated October 20, 2011, and as amended by that
certain Third Amendment to Development and Financing Agreement dated June 14, 2012
(collectively, the “Development and Financing Agreement”), to provide the financing for TIRZ
Projects;
WHEREAS, the Property Median Openings constitute eligible TIRZ Projects under
Chapter 311 of the Texas Tax Code, as amended;
-2-
WHEREAS, BSL has agreed to pay the Property Median Opening Costs conditioned
upon reimbursement pursuant to the terms of the Development and Financing Agreement; and
WHEREAS, the Town has investigated and determined that it would be advantageous
and beneficial to the Town and its citizens to participate in the construction of the Project and the
Property Median Openings as provided herein.
AGREEMENTS:
NOW, THEREFORE, in consideration of the covenants and conditions contained in this
Agreement, and other valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Town and BSL agree as follows:
1. Description of Project. The Project consists of the construction of certain
improvements to Preston Road, including without limitation, the location and construction of the
Property Median Openings, as more particularly depicted on Exhibit A.
2. Location of Median Openings. TxDOT has agreed to allow BSL to contract with
Sinacola to design and construct the Property Median Openings: (a) at the locations shown on
Exhibit A; and (b) in accordance with TxDOT design and construction standards.
3. Permit from TxDOT for Property Median Openings. The Town shall use
commercially reasonable efforts to apply for and obtain a permit from TxDOT to allow
construction of the Property Median Openings as described and contemplated hereby.
4. Reimbursement of Property Median Opening Costs. The Town acknowledges
that the Property Median Openings constitute eligible TIRZ Projects under Chapter 311 of the
Texas Tax Code, as amended. As such, the Town shall cause the Property Median Opening
Costs paid by BSL to be reimbursed to BSL under the Development and Financing Agreement
and TIRZ.
5. Default. In the event the Town fails to comply with any of the provisions of this
Agreement, BSL shall have the right to seek specific performance in addition to any other rights
and remedies, at law or in equity.
6. Miscellaneous.
a. Notice. Any notice required to be sent under this Agreement must be in
writing and may be served by depositing same in the United States Mail, addressed to the party
to be notified, postage pre-paid and registered or certified with return receipt requested, or by
delivering the same in person to such party via a hand-delivery service, Federal Express or any
courier service that provides a return receipt showing the date of actual delivery of same to the
addressee thereof. Notice given in accordance herewith shall be effective upon receipt at the
address of the addressee. For purposes of notice, the addresses of the parties shall be as follows:
-3-
If to Prosper, to: With a copy to:
Harlan Jefferson Peter G. Smith
Town Manager Nichols, Jackson, Dillard, Hager & Smith, LLP
Town of Prosper 1800 Lincoln Plaza
P.O. Box 307 Dallas, Texas 75201
Prosper, Texas 75078
If to Owner: With a copy to:
Blue Star Land, LP George Mitchell, SVP
One Cowboys Parkway 8000 Warren Parkway
Irving, Texas 75063 Building I, Suite 100
Attn: General Counsel Frisco, Texas 75034
b. Binding Effect. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns.
c. Entire Agreement. This Agreement contains the entire agreement of the
parties with respect to the matters contained herein and may not be modified or terminated
except upon the provisions hereof or by the mutual written agreement of the parties hereto.
d. Governing Law. The Agreement shall be governed by the laws of the
State of Texas, without giving effect to any conflicts of law rule or principle that might result in
the application of the laws of another jurisdiction; and exclusive venue for any action concerning
this Agreement shall be in the State District Court of Collin County, Texas. The parties agree to
submit to the personal and subject matter jurisdiction of said court.
e. Counterparts. This Agreement may be executed in a number of identical
counterparts, each of which shall be deemed an original for all purposes. A facsimile signature
will also be deemed to constitute an original if properly executed.
f. Authority to Execute. The individuals executing this Agreement on behalf
of the respective Parties below represent to each other and to others that all appropriate and
necessary action has been taken to authorize the individual who is executing this Agreement to
do so for and on behalf of the Party for which his or her signature appears, that there are no other
parties or entities required to execute this Agreement in order for the same to be an authorized
and binding agreement on the party for whom the individual is signing this Agreement and that
each individual affixing his or her signature hereto is authorized to do so, and such authorization
is valid and effective on the date hereof.
g. Savings/Severability. In case any one or more of the provisions contained
in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect any other provision thereof,
and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had
never been contained herein.
-4-
h. Miscellaneous Drafting Provisions. This Agreement shall be deemed
drafted equally by all parties hereto. The language of all parts of this Agreement shall be
construed as a whole according to its fair meaning, and any presumption or principle that the
language herein is to be construed against any party shall not apply. Headings in this Agreement
are for the convenience of the parties and are not intended to be used in construing this
document.
i. No Third Party Beneficiaries. Nothing in this Agreement shall be
construed to create any right in any third party not a signatory to this Agreement, and the parties
do not intend to create any third party beneficiaries by entering into this Agreement.
j. Attorneys’ Fees. In any legal proceeding brought to enforce the terms of
this Agreement, the prevailing party may recover its reasonable and necessary attorneys’ fees
from the non-prevailing party as permitted by Section 271.159 of the Texas Local Government
Code, as it exists or may be amended.
k. Incorporation of Recitals. The representations, covenants and recitations
set forth in the foregoing recitals of this Agreement are true and correct and are hereby
incorporated into the body of this Agreement and adopted as findings of the Town and BSL.
l. Exhibits. All exhibits to this Agreement are incorporated herein.
m. Term. The term of this Agreement shall commence on the last date of
execution and shall continue until the Parties have fully satisfied their respective obligations
hereunder, unless sooner terminated as provided herein.
(Signature page to follow)
-5-
EXECUTED on this _______ day of ______________________, 2013.
ATTEST:
Town Secretary
APPROVED AS TO FORM:
Town Attorney
TOWN OF PROSPER, TEXAS
By:
Ray Smith, Mayor
EXECUTED on this _______ day of ______________________, 2013.
BLUE STAR LAND, LP,
a Texas limited partnership
By: Blue Star Investments, Inc., a
Texas corporation, general partner
By: ____________________________________
Name: __________________________________
Title: ___________________________________
Blue Star Allen Land, LP, a
Texas limited partnership
By: Blue Star Investments, Inc., a
Texas corporation, general partner
By: ____________________________________
Name: __________________________________
Title: ___________________________________
183 Land Corporation, a
Texas corporation
By: ____________________________________
Name: __________________________________
Title: ___________________________________
-6-
STATE OF TEXAS §
§
COUNTY OF COLLIN §
This instrument was acknowledged before me on _____day of _______________, 2013, by
Ray Smith, Mayor of the Town of Prosper, Texas, a Texas home rule municipality, on behalf of said
municipality.
Notary Public, State of Texas
My Commission Expires:
STATE OF TEXAS §
§
COUNTY OF COLLIN §
This instrument was acknowledged before me on the _____ day of ______________,
2013, by ___________________, the ______ of Blue Star Investments, Inc., a Texas
corporation, general partner of Blue Star Land, LP, a Texas limited partnership, on behalf of said
entities.
Notary Public, State of Texas
My Commission Expires:
-7-
STATE OF TEXAS §
§
COUNTY OF COLLIN §
This instrument was acknowledged before me on the _____ day of ______________,
2013, by ___________________, the ______ of Blue Star Investments, Inc., a Texas
corporation, general partner of Blue Star Allen Land LP, a Texas limited partnership, on behalf
of said entities.
Notary Public, State of Texas
My Commission Expires:
STATE OF TEXAS §
§
COUNTY OF COLLIN §
This instrument was acknowledged before me on the _____ day of ______________,
2013, by ___________________, the ______ of 183 Land Corporation, Inc., a Texas
corporation, on behalf of said corporation.
Notary Public, State of Texas
My Commission Expires:
-8-
EXHIBIT “A”
(Description of Project/Depiction of Property Median Openings)
-9-
EXHIBIT “B”
(Property Median Opening Costs)
TOWN OF PROSPER, TEXAS RESOLUTION NO. 13-25
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF
PROSPER, TEXAS, HEREBY AUTHORIZING THE TOWN MANAGER
OF THE TOWN OF PROSPER, TEXAS, TO EXECUTE A LETTER
AGREEMENT RELATED TO THE PROPOSED EXPENDITURES FOR
SH 289 IMPROVEMENTS TO BE INCLUDED IN FUTURE TIRZ
FINANCING AGREEMENT, BETWEEN BLUE STAR LAND, LP, AND
THE TOWN OF PROSPER.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE
TOWN OF PROSPER, TEXAS:
SECTION 1: The Town Manager of the Town of Prosper, Texas, is hereby
authorized to execute, on behalf of the Town Council of the Town of Prosper, Texas, a
Letter Agreement related to the proposed expenditures for SH 289 improvements to be
included in future TIRZ Financing Agreement, between Blue Star Land, LP, and the
Town of Prosper, as hereto attached.
SECTION 2: This Resolution shall take effect immediately upon its passage.
RESOLVED THIS THE 26th of March, 2013.
_________________________
Ray Smith, Mayor
ATTEST TO:
_________________________
Harlan Jefferson
Interim Town Secretary
Town’s Thoroughfare CIP Master Plan
Richland Boulevard
Lover’s Lane
Page 1 of 2
To: Mayor and Town Council
From: Hulon T. Webb, Jr., P.E., Director of Development Services/Town Engineer
CC: Harlan Jefferson, Town Manager
Michael Bulla, CIP Project Manager
Re: Town Council Meeting – March 26, 2013
Date: March 18, 2013
Agenda Item:
Consider and act upon 1) a Memorandum of Understanding between the Town of Prosper and
Blue Star Land, LP, related to the proposed expenditures for a Wastewater Trunk Main to be
included in future Development Agreement and 2) adopting Resolution No. 13-26 authorizing
the Town Manager to execute the same.
Description of Agenda Item:
As part of the proposed Blue Star development west of the Dallas North Tollway, east of Legacy
Drive, south of Prosper Trail and north of Fishtrap Road, the Town’s Capital Improvement
Wastewater Trunk Main will need to be extended from Doe Branch Creek to serve the
development. Blue Star has recently completed the solicitation of proposals from engineers and
is now ready to begin the design of the project. In order to proceed with the design in a timely
manner, Blue Star has requested a Memorandum of Understanding (MOU) with the Town of
Prosper to outline the anticipated terms and obligations of a future Development Agreement
related to reimbursement of incurred design costs. The future Development Agreement will
solidify the terms and obligations of reimbursement for the design, as outlined in the MOU, and
include obligations of reimbursement for the construction of the Town’s Capital Improvement
Wastewater Trunk Main. It is anticipated that the Development Agreement will be provided to
the Town Council for consideration by the end of 2013.
Budget Impact:
The proposed expenditures for a Wastewater Trunk Main to be included in future Development
Agreement.
Legal Obligations and Review:
The Memorandum of Understanding was prepared by the Town Attorney. It was also reviewed
and approved by Blue Star’s attorney.
Attached Documents:
The following documentation is being provided for review:
1. Memorandum of Understanding
2. Resolution
3. Town’s Wastewater CIP Master Plan
ENGINEERING
Prosper is a place where everyone matters.
Page 2 of 2
Town Staff Recommendation:
Town staff recommends that the Town Council: 1) approve a Memorandum of Understanding
between the Town of Prosper and Blue Star Land, LP, related to the proposed expenditures for
a Wastewater Trunk Main to be included in future Development Agreement and 2) adopt
Resolution No. 13-26 authorizing the Town Manager to execute the same.
MEMORANDUM OF UNDERSTANDING (BLUE STAR LAND, LP-WASTEWATER FACILITIES) PAGE 1 OF 2
#622000
MEMORANDUM OF UNDERSTANDING
This MEMORANDUM OF UNDERSTANDING (“MOU”) is made and entered into this ___ day of February,
2013, by and between BLUE STAR LAND, LP, a Texas Limited Partnership, (“Blue Star”) and the TOWN OF
PROSPER, TEXAS, a Texas home-rule municipality, (“Town”).
Blue Star is the owner of approximately 1,650 ± acres of land, situated in the J.H. Durrett Survey,
Abstract No. 350, the Louisa Neatherly Survey, Abstract No. 962, the Collin County School Survey,
Abstract No. 147, John Yarnell Survey, Abstract No. 1038, Ben Renison Survey, Abstract No. 755, and the
Ed Bradley Survey, Abstract No. 86, Town of Prosper, Denton County and Collin County, Texas
(“Property”) that is currently without wastewater service.
Blue Star desires to proceed with the design of a Wastewater Trunk Main (“Wastewater Facilities”)
necessary to serve the Property in order to expedite development thereon.
The proposed Wastewater Facilities are currently located on Town’s Capital Improvement Plan and will
ultimately serve other properties owned by third parties in addition to the Property.
Blue Star has received proposals for the design of the Wastewater Facilities from four (4) reputable, as
determined by Blue Star, consulting civil engineering firms licensed to provide engineering design
services within the State of Texas.
With regard to the Wastewater Facilities, Blue Star agrees to be solely responsible for the payment of
any and all fees and expenses associated with the design and construction of the Wastewater Facilities,
including but not limited to, engineering design services, title work, appraisals, acquisition of all
necessary easements (the forms of which must be reasonably approved by Town), expert fees,
reasonable attorney’s fees and expenses, engineering fees and expenses, surveying fees and expenses,
permit application fees and expenses and any and all construction costs associated with the Wastewater
Facilities (“Blue Star’s Fees and Expenses Obligations”).
Town agrees that of Blue Star’s Fees and Expenses Obligations, the engineering fees and expenses,
surveying fees and expenses and permit application fees and expenses are eligible for reimbursement,
whether through financial reimbursement or wastewater impact fee credits due on the Property, or a
combination thereof (“Town’s Reimbursement/Credit Obligations”), at a future date provided that the
following conditions are met, in addition to any other reasonable and customary condition(s)
determined by Town:
1. Blue Star and Town execute one or more Development Agreement(s) (“Development
Agreement(s)”) that include, among other things, the terms and conditions for Blue Star’s
design and construction requirements for the Wastewater Facilities and Town’s
Reimbursement/Credit Obligations, with Blue Star acknowledging and agreeing that Town’s
Reimbursement/Credit Obligations must comply with Chapter 212, Subchapter C, Texas
Local Government Code, as amended.
2. Blue Star satisfies the terms and conditions of the Development Agreement(s).
MEMORANDUM OF UNDERSTANDING (BLUE STAR LAND, LP-WASTEWATER FACILITIES) PAGE 2 OF 2
#622000
3. Blue Star shall provide to Town, before incurring the same, Town’s Reimbursement/Credit
Obligations for Town’s review and agreement, which cannot be unreasonably withheld,
delayed, conditioned or denied, for Blue Star to incur the same in order to be eligible for
Town’s Reimbursement/Credit Obligations.
4. Town and Blue Star shall work together in good faith to enter a mutually agreeable
Development Agreement(s) within five (5) years following the execution of this MOU.
Blue Star and Town understand and agree that this MOU does not contain all matters upon which must
be addressed in the Development Agreement(s) in order for the transactions contemplated by this MOU
hereof to be consummated, but this MOU is binding as to the terms contained herein.
We the undersigned have read and understand this MOU.
Town: Developer:
Town of Prosper, Texas, Blue Star Land, LP,
a Texas home-rule municipality a Texas limited partnership
By: Blue Star Investments, Inc.,
a Texas corporation
By: ___________________________ Its: General Partner
Harlan L. Jefferson, Town Manager
Date: __________________________ By: _____________________________
Printed Name: ______________________
Its: ______________________________
Date: ____________________________
TOWN OF PROSPER, TEXAS RESOLUTION NO. 13-26
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF
PROSPER, TEXAS, HEREBY AUTHORIZING THE TOWN MANAGER
OF THE TOWN OF PROSPER, TEXAS, TO EXECUTE A
MEMORANDUM OF UNDERSTANDING RELATED TO THE
PROPOSED EXPENDITURES FOR A WASTEWATER TRUNK MAIN
TO BE INCLUDED IN FUTURE DEVELOPMENT AGREEMENT,
BETWEEN BLUE STAR LAND, LP, AND THE TOWN OF PROSPER.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE
TOWN OF PROSPER, TEXAS:
SECTION 1: The Town Manager of the Town of Prosper, Texas, is hereby
authorized to execute, on behalf of the Town Council of the Town of Prosper, Texas, a
Memorandum of Understanding related to the proposed expenditures for a Wastewater
Trunk Main to be included in future Development Agreement, between Blue Star Land,
LP, and the Town of Prosper, as hereto attached.
SECTION 2: This Resolution shall take effect immediately upon its passage.
RESOLVED THIS THE 26th of March, 2013.
_________________________
Ray Smith, Mayor
ATTEST TO:
_________________________
Harlan Jefferson
Interim Town Secretary
Town’s Wastewater CIP Master Plan
Page 1 of 2
To: Mayor and Town Council
From: Michael Bulla, CIP Project Manager
CC: Harlan Jefferson, Town Manager
Hulon T. Webb, Jr., P.E., Director of Development Services/Town Engineer
Frank E. Jaromin, P.E., Director of Public Works
Re: Town Council Meeting – March 26, 2013
Date: March 18, 2013
Agenda Item:
Consider and act upon Change Order #1 to Freese and Nichols, Inc., for the 2nd Upper Plane
30/24-Inch Treated Waterline Pipeline Project.
Description of Agenda Item:
On December 13, 2011, Town Council approved a design contract for the 2nd Upper Plane
30/24-Inch Treated Waterline Pipeline Project to Freese and Nichols, Inc. (FNI) for the sum of
$332,690.00. The contract included the design of approximately 11,150 feet of 30-inch treated
water pipeline extending from the Town’s pump station northwest to the intersection of Prosper
Tra il and Coit Road. The design also included approximately 4,300 feet of 24-inch treated water
pipeline extending from the intersection of Prosper Trail and Coit Road north to the existing 20-
inch waterline termination just south of Prosper Trail.
As the entire proposed 30-inch treated water pipeline, extending from the Town’s pump station,
crosses property currently held by Landplan, subsequent meetings with representatives of
Landplan resulted in a modification of the initial proposed route. The new alignment adds
approximately 3,150 LF to the original proposed water line. While the 20% increase in the scope
of the project meets the needs of the owner, the altered alignment will create additional fault
tolerance within the Town’s infrastructure by completing a portion of the CIP Master Plan not
scheduled for construction until 2017-2018.
Budget Impact:
The $30,000 for Change Order #1 is to be funded by the Water Impact Fee Fund. The
construction of the project is estimated to be $4,473,100 is to be funded by future 2013 CO
Bond Funds.
Legal Obligations and Review:
The Change Order is a standard document that does not require review or approval from the
Town Attorney.
ENGINEERING
Prosper is a place where everyone matters.
Page 2 of 2
Attached Documents:
The following documentation is being provided for review:
1. Change Order #1
2. Revised Opinion of Probable Construction Cost
3. Location Map
4. CIP Water Master Plan
Town Staff Recommendation:
Town staff recommends that the Town Council: approve Change Order #1 to Freese and
Nichols, Inc., regarding the 2nd Upper Plane 30/24-Inch Treated Waterline Pipeline Project.
1701 N MARKET STREET, SUITE 500, LB 51 | DALLAS, TEXAS 75202-2001 | TELEPHONE: 214-217-2200 | FAX: 214-217-2201
P:\convertFiles\93923\docx
Client: Town of Prosper
P.O. Box 307
Prosper, TX 75078
Attn: Mike Land
FNI Project No.: PRP12101
Client Contract Ref.: Professional
Services Agreement Dated December 12,
2011
Date: March 6, 2013
Project Description: 2nd Upper Pressure Plane 30/24-Inch Treated Water Pipeline
Description of Services Added:
The Town of Prosper and Freese and Nichols, Inc. have been coordinating with Landplan to develop a route
for the 30-inch waterline from the Custer Rd Pump Station to First Street. The goal of this coordination effort
was to find a pipeline alignment that worked with Landplan’s proposed development as well as the Town’s
distribution system. The original contract for this project included design and survey for 15,450 LF of pipe as
shown in the attached Figure 2. This alignment was developed based on best-available information
because no discussions had been had with Landplan prior to the scope development. The current agreed
upon alignment is 3,140 LF longer than the contract alignment and includes up to 3 additional easements.
Additionally, the new alignment is relatively near the Whitley Place development making it desirable to add
to the scope of the project 800 LF of 12-inch pipe and up to 2 additional easements to connect to the Whitley
Place waterlines, creating a looped system. The agreed upon alignment parallels the future First Street
ROW. The First Street roadway alignment has not been designed so Freese and Nichols, Inc. will utilize the
concept provided by Lanplan in our design. FNI will verify the horizontal curves meet Town design
standards and analyze existing plats to determine how the future right of way will tie into the existing ROW.
The requested additional amount for these design services is a cost plus not to exceed amount of $30,000.
This fee includes up to $19,100.00 for 3,940 LF of additional survey, $4,900.00 for up to 5 additional
easements and $6,000 for engineering for conceptual level roadway alignment analysis and Whitley Place
waterline connection details.
Deliverables:
All design changes including additional plan sheets and specifications will be incorporated into the
construction documents.
Compensation shall be adjusted as follows:
Special Services - Hourly Not To Exceed:
Landplan and Whitley Place alignment $30,000
TOTAL $30,000
Original Contract
Basic Services
Special Services
Total Contract
$210,550.00
$ 122,140.00
$332,690.00
Change Order #1 (Current Amendment)
Basic Services
Special Services
Total This Amendment
$0.00
$30,000.00
$30,000.00
Revised Total Contract
Basic Services
Special Services
Total Contract
$210,550.00
$152,140.00
$362,690.00
Schedule shall be adjusted as follows:
6/14/2013 – Advertise Construction Project
12/20/2013 – Construction Final Completion
CONTRACT CHANGE AUTHORIZATION FORM
Amendment #1
1701 N MARKET STREET, SUITE 500, LB 51 | DALLAS, TEXAS 75202-2001 | TELEPHONE: 214-217-2200 | FAX: 214-217-2201
P:\convertFiles\93923\docx
The above described services shall proceed upon return of this Contract Change Authorization.
Services will be billed as they are done. All other provisions, terms, and conditions of the agreement for
services which are not expressly amended shall remain in full force and effect.
A contract modification will be submitted.
This Contract Change Order Authorization will serve as contract modification.
FREESE AND NICHOLS, INC.: Town of Prosper:
BY: BY:
Jeff Payne, P.E. Harlan Jefferson
Print or Type Name Print or Type Name
TITLE: Principal TITLE: Town Manager
DATE: March , 2013 DATE:
First St
24''30''30''16''
6''6''
6''
6''
6''
6''
6''
6''8''
12''
12''6''
8''
12''
8''
8''
12''
12''
853
857CUSTER RDSHARED DRIVEWAY858
PRIVATEROAD5208
85493379RHEA
DARLING
PROSPER
VOWAN
STANDISH
DARLING
JAMES
MILLER
RAY
EVANS
DAMIANO
MILLER
DARLING
HRC
PROSPERPROSPER
PROSPER
FF
PROSPER
FF
PROSPER
DARLING
DAMIAMO
WILES
COOK
BROWN
HAMILL
WILES
BUHOLTZ
JAMES
DAMIANO
MOWRY
SKIDMORE
COOK NUGENT
MELVIN
RINCON
MELVIN
GAMMONS
NELSON
PROSPER
NELSON F&N JOB NO.DATE:SCALE:DRAFTED:FILE:Figure_2_LandplanRoute_REE.mxdPRP12101Town of Prosper, TexasMarch, 2013REEProposed Water Line0 600 1,200300Feet 7,200!I
Legend
Existing Sanitary Sewer
Prop 12" Waterline
Current Alignment
Contract Alignment 1701 North Market St., Ste. 500 LB 51Dallas, Texas 75202P:214-217-2200 F:214-217-2320FIGURE
2
Current Alignment is 3,140 ft longer than Contract Alignment.
Proposed 12-inchWhitley Place Alignment (Add'lScope Item) = 800 ft
Alignment parallel to future First St. ROW
March 13, 2013
ITEM DESCRIPTION QUANTITY UNIT UNIT PRICE TOTAL
A PVC WATERLINE W/DI FITTINGS
1 30" PVC Waterline (First Street)14,590 LF $165.00 $2,407,350.00
2 24" PVC Waterline (Coit Road)4,000 LF $132.00 $528,000.00
3 12" PVC Waterline (Whitley Place Drive Connection)800 LF $66.00 $52,800.00
B STEEL CASING PIPE
1 48" Steel Casing by Bore (Irving Waterline)100 LF $700.00 $70,000.00
48" Steel Casing by Bore (Creek Crossings)350 LF $700.00 $245,000.00
C APPURTENANCES
1 Trench Safety 18,940 LF $1.00 $18,940.00
2 30" Butterfly Valve 5 EA $12,000.00 $60,000.00
3 24" Butterfly Valve 2 EA $8,000.00 $16,000.00
4 20" Butterfly Valve 1 EA $6,000.00 $6,000.00
5 12" Gate Valve 1 EA $4,000.00 $4,000.00
6 Fire Hydrant Assembly and Valve*39 EA $4,000.00 $155,120.00
7 3" Combination Air Valve 12 EA $10,000.00 $120,000.00
8 2" Combination Air Valve 3 EA $7,500.00 $22,500.00
9 Seeding (100' wide)42.4 AC $3,700.00 $157,054.64
10 SWPPP Preparation and Implementation 1 LS $10,000.00 $10,000.00
SUBTOTAL:$3,872,770
CONTINGENCY 10%$387,280
SUBTOTAL:$4,260,050
MOBILIZATION 5%$213,010
PROJECT TOTAL $4,473,100
NOTES:
*Fire Hydrants placed every 500 LF for developed areas.
ESTIMATOR CHECKED BY ACCOUNT NO
JS JP PRP12101
Opinion of Probable construction cost
proposed water system improvements
town of prosper
2nd UPPER PLANE 30/24-INCH TREATED WATER PIPELINE
First St
24''30''30''16''
6''6''
6''
6''
6''
6''
6''
6''8''
12''
12''6''
8''
12''
8''
8''
12''
12''
853
857CUSTER RDSHARED DRIVEWAY858
PRIVATEROAD5208
85493379RHEA
DARLING
PROSPER
VOWAN
STANDISH
DARLING
JAMES
MILLER
RAY
EVANS
DAMIANO
MILLER
DARLING
HRC
PROSPERPROSPER
PROSPER
FF
PROSPER
FF
PROSPER
DARLING
DAMIAMO
WILES
COOK
BROWN
HAMILL
WILES
BUHOLTZ
JAMES
DAMIANO
MOWRY
SKIDMORE
COOK NUGENT
MELVIN
RINCON
MELVIN
GAMMONS
NELSON
PROSPER
NELSON F&N JOB NO.DATE:SCALE:DRAFTED:FILE:Figure_2_LandplanRoute_REE.mxdPRP12101Town of Prosper, TexasMarch, 2013REEProposed Water Line0 600 1,200300Feet 7,200!I
Legend
Existing Sanitary Sewer
Prop 12" Waterline
Current Alignment
Contract Alignment 1701 North Market St., Ste. 500 LB 51Dallas, Texas 75202P:214-217-2200 F:214-217-2320FIGURE
2
Current Alignment is 3,140 ft longer than Contract Alignment.
Proposed 12-inchWhitley Place Alignment (Add'lScope Item) = 800 ft
Alignment parallel to future First St. ROW
Page 1 of 1
To: Mayor and Town Council
From: Matthew B. Garrett, Finance Director
CC: Harlan Jefferson, Town Manager
Re: Town Council Meeting – March 26, 2013
Date: March 18, 2013
Agenda Item:
Consider and act upon Resolution No. 13-23, accepting the Independent Audit Report and
Comprehensive Annual Financial Report for the Fiscal Year Ended September 30, 2012, as
presented by Lori Herrick of Davis Kinard & Co, PC, Certified Public Accountants.
Description of Agenda Item:
The Town’s Charter, in compliance with Chapter 103 of the Local Government Code, requires
an independent audit be conducted annually. This will be the Town’s second audit conducted
by Davis Kinard & Co, PC. Staff has reviewed the audit and is forming a strategy to implement
the auditor’s recommended improvements.
The complete, formatted and bound Comprehensive Annual Financial Report (“CAFR”),
including finalized information in the introductory and statistical sections, will be delivered to
each Council member along with the Auditor’s presentation Tuesday night at the meeting.
Budget Impact:
The audit for the Town was conducted within budget.
Legal Obligations and Review:
N/A
Attached Documents:
Resolution 13-23
FY 2011-2012 CAFR with Independent Auditor’s Report and Completed Financial Sections
Board/Committee Recommendation:
N/A
Town Staff Recommendation:
Town staff recommends that the Council approve Resolution 13-23, accepting the Independent
Audit Report and Comprehensive Annual Financial Report for the Fiscal Year Ended September
30, 2012.
Prosper is a place where everyone matters.
Administration
TOWN OF PROSPER, TEXAS RESOLUTION NO. 13-23
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF
PROSPER, TEXAS, HEREBY ACCEPTING THE TOWN’S 2011-2012
FISCAL YEAR INDEPENDENT AUDIT REPORT AND
COMPREHENSIVE ANNUAL FINANCIAL REOPRT AS PRESENTED
BY DAVIS KINARD & CO, P.C., CERTIFIED PUBLIC ACCOUNTANTS
ON MARCH 26, 2013; AUTHORIZING PUBLICATION OF THE AUDIT.
WHEREAS, the Town Council is required by Section 7.18 of the Town Charter to call
for an Independent Audit to be made of all accounts of the Town at the close of each fiscal year, a
report of which is to be presented to the Town Council.
WHEREAS, Town Staff engaged Davis Kinard & Co. P.C. to complete the Town’s
Fiscal Year 2011-2012 Independent Audit.
WHEREAS, a copy of the Independent Audit and accompanying Financial Statements
for the 2011-2012 Fiscal Year were received and reviewed by Town Staff.
WHEREAS, the Town Charter requires that upon completion of the audit, a copy of
the audit shall be posted to the Town’s website and copies placed on file in the office of
the person performing the duties of Town Secretary, as a public record.
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 2011-2012 fiscal year financial audit as presented by Davis Kinard & Co., P.C., Certified
Public Accountants on March 26, 2013.
SECTION 2: A copy of the completed audit shall be published immediately on the
Town website and copies of the audit placed on file in the office of the person performing
the duties of Town Secretary, as a public record.
SECTION 3: This Resolution shall take effect immediately upon its passage.
RESOLVED THIS THE 26th day of March, 2013.
APPROVED:
______________________________
RAY SMITH, Mayor
ATTEST TO:
_________________________________________
HARLAN JEFFERSON, Interim Town Secretary
Page 1 of 1
To: Mayor and Town Council
From: Matthew B. Garrett, Finance Director
CC: Harlan Jefferson, Town Manager
Re: Town Council Meeting – March 26, 2013
Date: March 18, 2013
Agenda Item:
Consider and act upon Resolution No. 13–17 approving renewal of the tower site lease
agreement with TierOne Converged Networks.
Description of Agenda Item:
TierOne has operated wireless internet service antennas from one of the Town’s water towers
for five years. TierOne’s original agreement allows for three (3) additional five (5) year
renewals. TierOne gave notice of its intent to renew via email on January 23, 2013.
Budget Impact:
TierOne has been paying $18,000 annually under the original lease. Under the new terms the
TierOne obligation is $19,806 annually, which reflects a 10% increase. The increase will apply
for half of the current fiscal year adding $903 to anticipated revenues for FY 2013.
Legal Obligations and Review:
Rebecca Brewer drafted the Renewal Resolution
Attached Documents:
Renewal Resolution
Board/Committee Recommendation:
N/A
Town Staff Recommendation:
Town staff recommends that the Town Council
“Make a motion to approve Resolution No. 13–17 approving renewal of the tower site
lease agreement with TierOne Converged Networks”
Prosper is a place where everyone matters.
ADMINISTRATION
RESOLUTION – RENEWAL OF TOWER SITE LEASE AGREEMENT (TIERONE) PAGE 1 OF 2
#622992.1
TOWN OF PROSPER, TEXAS RESOLUTION NO. 13-17
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF
PROSPER, TEXAS, APPROVING THE RENEWAL OF THE TOWER
SITE LEASE AGREEMENT, BY AND BETWEEN THE TOWN OF
PROSPER, TEXAS AND TIERONE CONVERGED NETWORKS, INC.;
PROVIDING FOR AN EFFECTIVE DATE HEREOF.
WHEREAS, the Town Council of the Town of Prosper, Texas (“Town Council”)
authorized, by virtue of Resolution No. 07-096, the execution of that certain Tower Site
Lease Agreement (“Lease”), dated November 13, 2007, by and between the Town of
Prosper, Texas (“Town”) and TierOne Converged Networks, Inc. (“TierOne”), for the
location of a wireless internet antenna on the elevated water tower located at 1454 E.
First Street, Prosper, Texas; and
WHEREAS, a copy of the Lease is attached to Resolution No. 07-096, said
resolution being incorporated herein by reference for all purposes; and
WHEREAS, the Lease provides for an initial term of five (5) years with the option
to renew and extend (“Extension”) the Lease for three (3) additional five (5) year terms
upon the same terms and conditions thereof, including an increase in rent due the Town
by TierOne; and
WHEREAS, the Lease further provides that TierOne must request an Extension
by a date certain and receive the Town Council’s approval to effectuate any such
Extension; and
WHEREAS, the Town Council has investigated and determined that TierOne
timely submitted a request for an Extension of the Lease; and
WHEREAS, the Town Council has further investigated and determined that it is
in the best of the Town and its citizens to approve an Extension of the Lease for an
additional five (5) year term upon the same terms and conditions thereof, including an
increase in rent due the Town by TierOne.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE
TOWN OF PROSPER, TEXAS:
SECTION 1: Findings Incorporated. The findings set forth above are
incorporated into the body of this Resolution for all purposes.
SECTION 2: Approval of Extension. The Town Council hereby approves the
Extension of the Lease for an additional five (5) year term upon the same terms and
conditions thereof, including an increase in rent due the Town by TierOne.
RESOLUTION – RENEWAL OF TOWER SITE LEASE AGREEMENT (TIERONE) PAGE 2 OF 2
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SECTION 3: Effective Date. This Resolution is effective immediately upon its
passage.
DULY PASSED AND APPROVED BY THE TOWN COUNCIL OF THE TOWN
OF PROSPER, TEXAS on this 26th day of March, 2013.
____________________________
RAY SMITH, Mayor
ATTEST TO:
______________________________________
HARLAN JEFFERSON, Interim Town Secretary
Page 1 of 1
To: Mayor and Town Council
From: Matthew B. Garrett, Finance Director
CC: Harlan Jefferson, Town Manager
Re: Town Council Meeting – March 26, 2013
Date: March 18, 2013
Agenda Item:
Consider and act upon Resolution No. 13–24 approving the First Amendment to the tower site
lease agreement with TierOne Converged Networks, allowing for monthly rents and authorizing
the Town Manager to execute the same.
Description of Agenda Item:
The original and recently renewed TierOne Tower site lease agreement called for annual rent
payments. TierOne has historically paid rents monthly on the tower site lease agreement.
Annual payments would put a hardship on TierOne. TierOne and Town staff are requesting to
amend the renewed agreement to allow payments under this new term to be made monthly.
TierOne has already authorized the First Amendment document.
Budget Impact:
Annual payments would be equal to the sum of 12 monthly rent payments.
The budget impact from monthly rents is negligible with only small interest potential for early
lump-sum payments.
Legal Obligations and Review:
Rebecca Brewer drafted the Renewal Resolution
Attached Documents:
Resolution
with Attached Exhibit “A” - First Amendment Agreement
Board/Committee Recommendation:
N/A
Town Staff Recommendation:
Town staff recommends that the Town Council
“Make a motion to approve Resolution No. 13–24 approving the First Amendment to the
tower site lease agreement with TierOne Converged Networks, allowing for monthly
rents and authorizing the Town Manager to execute the same.”
Prosper is a place where everyone matters.
ADMINISTRATION
RESOLUTION – APPROVING FIRST AMENDMENT TO TOWER SITE LEASE AGREEMENT (TIERONE) PAGE 1 OF 5
#624168.1
TOWN OF PROSPER, TEXAS RESOLUTION NO. 13-24
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF
PROSPER, TEXAS, APPROVING THE FIRST AMENDMENT TO
TOWER SITE LEASE AGREEMENT, BY AND BETWEEN THE TOWN
OF PROSPER, TEXAS AND TIERONE CONVERGED NETWORKS,
INC.; AUTHORIZING THE TOWN MANAGER TO EXECUTE THE
SAME; PROVIDING FOR AN EFFECTIVE DATE HEREOF.
WHEREAS, the Town Council of the Town of Prosper, Texas (“Town Council”)
has investigated and determined that it is in the best interest of the Town of Prosper,
Texas (“Town”) and its citizens to approve the First Amendment to Tower Site Lease
Agreement (“First Amendment”), by and between the Town and TierOne Converged
Networks, Inc. and authorize the Town Manager to execute the same.
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE
TOWN OF PROSPER, TEXAS:
SECTION 1: Findings Incorporated. The findings set forth above are
incorporated into the body of this Resolution for all purposes.
SECTION 2: Approval of First Amendment/Authorizing Town Manager’s
Execution. The Town Council hereby approves the First Amendment, attached hereto
as Exhibit “A” and incorporated herein for all purposes, and authorizes the Town
Manager to execute the same.
SECTION 3: Effective Date. This Resolution is effective immediately upon its
passage.
DULY PASSED AND APPROVED BY THE TOWN COUNCIL OF THE TOWN
OF PROSPER, TEXAS on this 26th day of March, 2013.
____________________________
RAY SMITH, Mayor
ATTEST TO:
______________________________________
HARLAN JEFFERSON, Interim Town Secretary
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EXHIBIT “A”
RESOLUTION – APPROVING FIRST AMENDMENT TO TOWER SITE LEASE AGREEMENT (TIERONE) PAGE 3 OF 5
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