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CP 2011-08-23
NOTICE OF CITY COUNCIL MEETING AND AGENDA AUGUST 23, 2011 DOUG STOVER MARSHA TUNNELL, Place 4 Mayor Mayor Pro Tem TIM BRANCHEAU, Place 1 BILLY FAUGHT, Place 5 BOB MAHALIK, Place 2 MARVIN FRANKLIN, Place 6 BRIANNA HINOJOSA-FLORES, Place 3 KAREN HUNT, Place 7 CLAY PHILLIPS, City Manager MEETING TIME AND PLACE: Call to Order 6:00 p.m. Council Chambers (Open to the Public) Executive Session Immediately Following 1st Fl. Conf. Room (Closed to the Public) Work Session Immediately Following 1st Fl. Conf. Room (Open to the Public) Regular Session 7:30 p.m. Council Chambers (Open to the Public) Notice is hereby given that the City Council of the City of Coppell, Texas will meet in Regular Called Session on Tuesday, August 23, 2011, at 6:00 p.m. for Executive Session, Work Session will follow immediately thereafter, and Regular Session will begin at 7:30 p.m., to be held at Town Center, 255 Parkway Boulevard, Coppell, Texas. As authorized by Section 551.071(2) of the Texas Government Code, this meeting may be convened into closed Executive Session for the purpose of seeking confidential legal advice from the City Attorney on any agenda item listed herein. The City of Coppell reserves the right to reconvene, recess or realign the Work Session or called Executive Session or order of business at any time prior to adjournment. The purpose of the meeting is to consider the following items: ITEM # ITEM DESCRIPTION 1. Call to order. ag082311 Page 1 of 5 ITEM # ITEM DESCRIPTION EXECUTIVE SESSION (Closed to the Public) 2. Convene Executive Session A. Section 551.071, Texas Government Code - Consultation with City Attorney and Section 551.072, Texas Government Code - Deliberation regarding Real Property. 1. Seek legal advice from the City Attorney concerning the settlement and land purchase agreements with the Billingsleys at Northlake. WORK SESSION (Open to the Public) 3. Convene Work Session A. Discussion regarding Household Hazardous Waste. B. Discussion regarding Oncor Transmission Lines along West Sandy Lake Road. C. Update on Municipal Elections for May 2012 with Dallas County. D. Discussion regarding Boards & Commissions Interview Preferences. E. Discussion of Agenda Items. REGULAR SESSION (Open to the Public) 4. Convene Regular Session. 5. Invocation. 6. Pledge of Allegiance. 7. Presentation by Carrollton Fire Department Chief John Murphy recognizing members of the Coppell Fire Department for their contributions during a mutual aid response to a confined space rescue, July 14, 2011. 8. Consider approval of a proclamation proclaiming August 26, 2011 as "Technology Day" in the city of Coppell and recognizing Coppell High School "hometown technology hero" Jodie Deinhammer for her achievements and being named as a Tech Titan of the Future - Math/Science Teacher Finalist, and authorizing the Mayor to sign. 9. Consider approval of a proclamation recognizing the month of September as “FALL PREVENTION AWARENESS MONTH,” and authorizing the Mayor to sign. ag082311 Page 2 of 5 ITEM # ITEM DESCRIPTION 10. Consider approval of a proclamation recognizing September 5-9, 2011 as “NATIONAL PAYROLL WEEK,” and authorizing the Mayor to sign. 11. Citizens' Appearances. CONSENT AGENDA 12. Consider approval of the following consent agenda items: A. Consider approval of minutes: August 9, 2011. B. Consider approval of an ordinance approving a negotiated settlement with Atmos Energy Corp., Mid-Tex Division, regarding the Rate Review Mechanism filing and finding the attached Tariffs implementing new rates within the corporate city limits of the City of Coppell are just and reasonable; and authorizing the Mayor to sign. C. Consider approval of a contract with Time Warner Cable in the amount of $120,453.00 for the burial of utilities in Old Town; as provided for in the CIP funds; and authorizing the City Manager to sign and execute necessary documents. END OF CONSENT 13. PUBLIC HEARING: To receive public comment concerning the proposed 2011-2012 Municipal Budget. 14. Consider approval of revisions to the written Fund Balance Policy of the City of Coppell. 15. Consider approval of an Ordinance of the City of Coppell, Texas, approving the establishment of a special revenue fund for the proceeds received from the Rolling Oaks Memorial Center operations, and authorizing the Mayor to sign. 16. PUBLIC HEARING: Consider approval of the designation of a reinvestment zone pursuant to Section 312.201 of the Property Redevelopment and Tax Abatement Act. The property to be considered for Reinvestment Zone designation is the property described as a portion of Block 2, Lot 2R-1 of the Park West Commerce Center Addition (34.572 acres) and located north of Airline Drive, west of Belt Line Road. ag082311 Page 3 of 5 ITEM # ITEM DESCRIPTION 17. Consider approval of an Ordinance designating Nefab Companies, Inc., Reinvestment Zone No. 65, and authorizing the Mayor to sign. 18. Consider approval of a Resolution approving a Tax Abatement Agreement between the City of Coppell and Nefab Companies, Inc., and authorizing the Mayor to sign. 19. City Manager's Report. A. Project Update and Future Agendas. 20. Mayor and Council Reports. A. Report by Mayor Stover regarding the Summer Music Series in August. B. Report by Councilmember Hunt regarding the Congressional Update by Congressman Marchant. 21. Public Service Announcements concerning items of community interest and no Council action or deliberation is permitted. 22. Council Committee Reports. A. Carrollton/Farmers Branch ISD/Lewisville ISD – Tunnell. B. Coppell ISD – Mahalik and Hinojosa-Flores. C. Coppell Seniors – Brancheau and Faught. D. Dallas Regional Mobility Coalition –Hunt. E. International Council for Local Environmental Initiatives (ICLEI) – Brancheau. F. Metrocrest Hospital Authority – Tunnell. G. Metrocrest Medical Foundation – Mahalik. H. Metrocrest Medical Services – Hinojosa-Flores. I. Metrocrest Social Services – Franklin. J. North Texas Council of Governments – Tunnell. K. North Texas Commission – Hunt. L. Senior Adult Services – Franklin. 23. Necessary action resulting from Executive Session. Adjournment. ____________________________________ Douglas N. Stover, Mayor ag082311 Page 4 of 5 ITEM # ITEM DESCRIPTION CERTIFICATE I certify that the above Notice of Meeting was posted on the bulletin board at the City Hall of the City of Coppell, Texas on this 19th day of August, 2011, at __________________. ____________________________________ Christel Pettinos, City Secretary DETAILED INFORMATION REGARDING THIS AGENDA IS AVAILABLE ON THE CITY'S WEBSITE (www.coppelltx.gov) UNDER PUBLIC DOCUMENTS, COUNCIL PACKETS. PUBLIC NOTICES STATEMENT FOR ADA COMPLIANCE The City of Coppell acknowledges its responsibility to comply with the Americans With Disabilities Act of 1990. Thus, in order to assist individuals with disabilities who require special services (i.e. sign interpretative services, alternative audio/visual devices, and amanuenses) for participation in or access to the City of Coppell sponsored public programs, services and/or meetings, the City requests that individuals make requests for these services forty-eight (48) hours ahead of the scheduled program, service and/or meeting. To make arrangements, contact Vivyon V. Bowman, ADA Coordinator or other designated official at (972) 462-0022, or (TDD 1-800-RELAY, TX 1-800-735-2989). ag082311 Page 5 of 5 KEY TO COUNCIL GOALS ICONS COPPELL VISION 2030 Sustainable City Government • Excellent City Services with high level of Customer Satisfaction • “Green” City Operations and Facilities • Excellent and Well-maintained City Infrastructure and Facilities • Top Quality City Workforce • Financial Resources to Support City Services Business Prosperity • Retention and Attraction of Businesses that generate revenues for the City • Major Retail and Top Quality Business Office Park along I-635 and SH 121 • Old Coppell as a Small Town Village • Community Commercial Centers • House Offices and Home-Based Businesses Community Wellness and Enrichment • Community Gathering Places • Recreation Programs and Services for all Generations • Expand Cultural Arts Amenities and Opportunities • Residents’ Wellness and Longevity • Community Education Programs and Support of Top Quality Schools • Multi-Use Trail Systems Connecting the City Sense of Community • Residents and Businesses Engaging and Contributing to the Coppell Community • Strong Community Events and Festivals • New Residents Welcome and Involved • Effective Community Partnerships • Future Civic Community Leaders’ Development Special Place to Live • Quality Housing for Family Generations • Beautiful Green City • Revitalizing Neighborhoods • Mobility within Coppell • Easy Access to Dallas-Fort Worth Regions AGENDA REQUEST FORM DATE: August 23, 2011 ITEM #: ES-2 EXECUTIVE SESSION A. Section 551.071, Texas Government Code - Consultation with City Attorney and Section 551.072 – Deliberation regarding Real Property. 1. Seek legal advice from the City Attorney concerning the settlement and land purchase agreements with the Billingsleys at Northlake. Agenda Request Form - Revised 02/04 Document Name: %exsessn AGENDA REQUEST FORM DATE: August 23, 2011 ITEM #: ES-3 WORK SESSION 3. Convene Work Session A. Discussion regarding Household Hazardous Waste. B. Discussion regarding Oncor Transmission Lines along West Sandy Lake Road. C. Update on Municipal Elections for May 2012 with Dallas County. D. Discussion regarding Boards & Commissions Interview Preferences. E. Discussion of Agenda Items. Agenda Request Form - Revised 02/07 %wksessn PARKS AND RECREATION DEPARTMENT ENVIRONMENTAL HEALTH DIVISION Interoffice Memorandum TO: Mayor and City Council FROM: Perri Kittles, Environmental Health Officer VIA: Brad Reid, Director of Parks and Recreation DATE: August 23, 2011 SUBJECT: Household Hazardous Waste Disposal Background: Household Hazardous Waste (HHW) disposal has been a growing concern for residents of Coppell. The program currently in place in Coppell for Household Hazardous Waste disposal consists of staff interaction with the resident upon each occurrence, assistance with the process for disposal and education regarding reduce, reuse, and recycle. Fortunately, staff is not aware of a major problem with Coppell residents illegally dumping HHW, and the numbers of residents taking advantage of HHW disposal are small compared to the number of existing households. Perhaps a contributing factor to this is that many residents utilize outside services for lawn care, pool maintenance, fence repairs and general home renovations and maintenance. The environmental awareness of our residents is surely another contributing factor in having reduced accumulations of HHW. Residential HHW is permissible in landfills, as the Environmental Protection Agency (EPA) has ruled that these amounts are very small and are not harmful. However, the EPA does encourage diversion when possible. A number of years ago the city participated in the Dallas County Household Hazardous Waste Program. The numbers of residents participating in the collection events were very low and the cost continued to increase, so staff began to look at alternatives to better meet the needs of our residents. Seven years ago the city began the current “voucher” system with the Upper Trinity Regional Water District, which allows residents to obtain permission to take most items to a collection center located at I-30 and Loop 820 in Fort Worth. Cost for this service is $58 per voucher. Over the past 12 months, the city has issued 89 vouchers to residents, which is an increase over past years. Often, residents call thinking they need a voucher, but after learning proper disposal methods many not, which is a cost savings for everyone. Residents have expressed a desire for an at-your-door service as they do not want to drive to a facility to dispose of HHW. A recent on-line survey indicated that 78% of the residents that took the survey would support a monthly increase in their water bill for an at-your-door service for HHW and electronics. Waste Management offers an At-Your- Door HHW service, and would add this service for Coppell residents for a per dwelling unit fixed fee of $.64 per month, which includes a 15% franchise fee. After the initial one-year term, the term of the Agreement shall automatically reflect the same contract end date as the existing Municipal Solid Waste and Collection Agreement executed on October 20, 2008, unless written notice of non-extension is provided by either party to the other not less than 60 days prior to the expiration of the initial term. Rates will be adjusted annually by the same percentage as the Consumer Price Index, and a fuel surcharge. The At-Your-Door service is by appointment only, and begins with a call to a call center where the process for removal is explained. A collection kit is shipped to each resident that schedules a service appointment. The kit is comprised of a heavy gauge plastic bag, instruction sheet, survey card, labels for unlabeled containers and a plastic tie for the bag. Electronics are to be placed beside the bag. Residents will then place the secured bag out for collection by 7:00 AM on the scheduled collection day. The bag is to be placed near the entrance door at the front of the house. Residents are instructed not to place the bag near an alley, the curb or street. Items not accepted include business or home business waste, ammunition, explosives, asbestos, or any material in unlabeled or leaking containers. Additional items not accepted include; radioactive materials, illegal or controlled substances, illegal or controlled drugs, controlled or non-controlled medications, biological waste, smoke detectors, fire extinguishers, pressurized cylinders, tires, appliances (larger than microwaves), waste in 6 gallons or larger container, trash, not more than 5 gallons of driveway sealer, and construction materials. In an effort to provide a user friendly HHW and electronics disposal service to our residents, staff recommends a change from the existing HHW drop-off facility in Fort Worth, to an at-your-door service provided by Waste Management for every resident of Coppell. Council Action Requested: Staff would like to hear questions or concerns about a change in the proposed method of Household Hazardous Waste (HHW) disposal, and obtain authority to move forward with developing an agreement with Waste Management to provide this service. Date: 5/3/2011 1:50 PM PST Responses: Completes Filter: No filter applied City of Coppell Household Hazardous Waste Online Survey Results Overview 1.How are you currently disposing of HHW materials? Put out with my trash 118 28% Use the city’s voucher service 21 5% Take it to local recycling centers 147 35% Other 176 41% 2.Would you support a $1.00 monthly increase on your water bill for an at-your-door service to remove HHW, universal waste and electronics? Yes 332 78% No 93 22% Total 425 100% 3.Would you use this monthly service? Yes 378 89% No 47 11% Total 425 100% 4.If yes, how many times each year, on average, would you expect to utilize this monthly service? 1-3 times per year 256 64% 4-6 times per year 116 29% More than 6 times per year 26 7% 5.Do you currently try not to accumulate HHW by using up what you purchase? Yes 375 88% No 50 12% Total 425 100% Page 1 of 2Zoomerang | City of Coppell Household Hazardous Waste Online Survey: Results Overvi... 5/3/2011http://app.zoomerang.com/Report/PrintResultsPage.aspx Products & Services | About Us | Support/Help | Zoomerang Forums © 2011 Copyright MarketTools Inc. All Rights Reserved. | Privacy Policy | Terms Of Use 6.Have you used the City of Coppell's Voucher Program for disposing of HHW? Yes 27 6% No 398 94% Total 425 100% 7.If yes, how often have you utilized this program on an annual basis? 1-3 times 28 93% 4-6 times 1 3% More than 6 times 1 3% 8.If no, then why have you not used the Coppell Voucher Program? Unfamiliar with the program 336 84% Obtaining the voucher is inconvenient 11 3% Program is too difficult to understand 5 1% Disposal center’s location is too far and inconvenient 25 6% All the above 42 11% Page 2 of 2Zoomerang | City of Coppell Household Hazardous Waste Online Survey: Results Overvi... 5/3/2011http://app.zoomerang.com/Report/PrintResultsPage.aspx 1 MEMORANDUM TO: Mayor and City Council VIA: Kenneth M. Griffin, P.E., Director of Engineering/Public Works FROM: Keith R. Marvin, P.E., Project Engineer DATE: August 23, 2011 RE: Oncor Transmission Lines along West Sandy Lake Road In the process of designing West Sandy Lake Road Improvements, we identified conflicts with six Oncor transmission poles along the south side of Sandy Lake Road. We then contacted Oncor transmission to discuss relocating those six poles. Transmission poles differ from distribution poles because we have to pay for the cost of the relocation transmission. Distribution poles are relocated at Oncor’s expense. Upon review, Oncor proposed to the City that we fund the removal of the entire de- energized transmission line in the amount of approximately $40,000.00. They would then remove the entire line from Denton Tap Road to North Coppell Road; thereby, eliminating the conflicts with the road project. In exchange for removal of the existing transmission lines, they have asked us to preserve a corridor along the south side of Sandy Lake Road for future construction of a new transmission line. This preservation would take the form of an easement or a license agreement dedicated by the City to Oncor within the Sandy Lake Road right of way. Oncor staff indicates that it is unlikely they will erect a future transmission line through this corridor; however, their desire is to preserve the right to do it. The benefit of removing that transmission line cleans up the corridor. The City’s cost of removing the lines and poles is less than the City’s cost of the relocation of the six poles needed to move forward with the entire project. The downside is that once the transmission lines are removed, citizens may object to the reinstallation of those lines at some point in the future. We want to make Council aware of the negotiations with Oncor and give you an opportunity to provide input on the decision. MEMORANDUM DATE: August 19, 2011 TO: Mayor and Council Clay Phillips, City Manager FROM: Christel Pettinos, City Secretary RE: May 2012 Municipal Election Update from Dallas County Dallas County Elections is hosting a follow-up meeting on Tuesday, August 23, 2011 to go over the final cost estimates for hosting our May 2012 Municipal Election. We will be given the specific parameters for participating, as well as the estimated cost figures for the limited number of polling locations. The cost will be approximately $2,800 more than we normally pay, but this will include the additional equipment and staff needed to conduct the election with the recent changes from SB 100. I will have more details to report on in Work Session. MEMORANDUM DATE: August 19, 2011 TO: Mayor and Council Clay Phillips, City Manager FROM: Christel Pettinos, City Secretary RE: Boards & Commissions Interview Preferences In your packet is a copy of the Interview Schedule for October for the Boards & Commission Interviews. Please review the calendar and select which Board or Commission you would like to interview. Number your choices and then return your copy to the City Secretary’s Office by Thursday, September 1, 2011. If you have any questions or concerns, please feel free to contact me. COPPELL COUNCIL CALENDAR OF EVENTSOCTOBER 2011 MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY 3 Park Board Meeting 4 National Night Out Park Board Youth Interviews (Service Ctr. 6pm) 5 Economic Development Meeting KCB Interview (1st Floor) 6 BOA Meeting Planning & Zoning Interview (2nd Floor) Library Board Youth Interviews (Library 6pm) 7 10 11 City Council Meeting 12 13 Library Board Meeting TML - Houston 14 17 BOA Interview (1st Floor) 18 Library Board Interview (1st Floor) Animal Services Board (2nd Floor) 19 Economic Development (2nd Floor) 20 P&Z Meeting/ KCB Meeting Special Council (2nd Floor) Conduct Review Board (2nd Floor) KCB Board Youth Interviews (Service Ctr. 5:30 pm) 21 24 25 City Council Meeting 26 27 28 Name _______________________________________________________ PLEASE INDICATE 4 CHOICES (e.g. 1, 2, 3 and 4) NAME OF BOARD/COMMISSION ___________ ANIMAL SERVICES & APPEALS ___________ BOARD OF ADJUSTMENT ___________ CONDUCT REVIEW/SPECIAL COUNSEL ___________ ECONOMIC DEVELOPMENT ___________ KEEP COPPELL BEAUTIFUL ___________ LIBRARY BOARD ___________ PLANNING & ZONING COMM. WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: Fire and Life Services August 23, 2011 7 ✔ PRESENTATION Presentation by Carrollton Fire Department Chief John Murphy recognizing members of the Coppell Fire Department for their contributions during a mutual aid response to a confined space rescue, July 14, 2011. See attached staff memo. (Fire Presentation - 1 AR COPPELL CITY COUNCIL MEETING: August 23, 2011 SUBJECT: PRESENTATION OF UNIT CITATION BAR AWARDS Purpose Recognize and present Coppell Fire Department team members with Carrollton Fire Rescue Unit Citation Bars for their collective actions during the July 13, 2011 “Confined Space Rescue” which resulted in the successful extrication of a construction worker who had fallen into a 55 foot deep pier shaft. About the Incident On the afternoon of July 13th, Carrollton Engine 112 and Medic 116 were dispatched to an initial report of a sick person at Good Elementary School. Upon arrival, Engine 112’s crew found that a worker had fallen into a 55 foot deep pier shaft and was trapped in the bottom of the 33 inch diameter shaft. The initial response was immediately upgraded to a “Technical Rescue” bringing Carrollton Truck 112 and Battalion 111 to the scene. The incident was quickly further upgraded with a request for the Coppell Fire Department‘s Technical Rescue team to assist CFR personnel. Coppell’s responding units included Rescue 122, Medic 122, Truck 123, Battalion 121, the Emergency Management Coordinator and Chiefs 122 and 124. Although verbal contact was maintained throughout the incident with the patient, it was difficult to obtain an accurate assessment of the patient’s injuries. Information provided, by the patient, prevented the option of just sending a rescue harness down to the patient by rope and having the patient implement a self initiated rescue scenario. Based on the known information, our joint team members set up a rigging tripod, which is designed to anchor the rescue rope system that was used to affect the patient’s rescue. Team members placed ground pads around the open pier shaft in order to stabilize the immediate area and prevent surface debris from falling into the open pier shaft and assisted with rope handling duties. Once the rescue rigging and rescue rope systems were fully in place, a CFR Captain was lowered, by rope, into the 55 feet deep shaft, where he secured a rescue harness onto the patient. The patient was brought to the surface one hour and twenty-one minutes from the initial arrival of the first crew. The patient was stabilized by Paramedics and then transport by CareFlite helicopter to Parkland Hospital. We are very proud to say that the patient is recovering at home. During the incident Coppell and Carrollton personnel provided incident support by establishing the following functional areas: Incident Command; Planning; Rescue Operations; Logistics; Safety; Rehabilitation; Medical Triage, Treatment and Transport; and Media Relations. Page 2 of 2 The manner in which the overall incident was brought to a successful conclusion is testimony to what shared service agreements can provide to our region. The cooperation, dedication and mutual support provided by all personnel on the scene was manifest in a highly successful joint operation. Working together our teams did an outstanding job. Without the assistance of Coppell team members our job would have been very difficult at best. Unit Citation Bar Award Carrollton Fire Rescue’s definition of a Unit Citation Bar is “an award given to a group or unit whose performance was an unequaled team effort in overcoming unusual obstacles in the completion of a difficult task that has resulted in the saving of life.” This “Rescue” was considered a very dangerous, high risk and low frequency incident and required very deliberate and delicate rescue actions in that the 33 inch diameter pier shaft’s walls were unsecured and could crumble at any time. Extreme care was taken during the rescuer’s descent into the pier shaft and during the ascent, with the patient, from the shaft so as to not create a cave-in onto the patient and rescuer. Coppell Fire Department team members responding to the incident included: Rescue 122: > Barry Bartolacci > Heather Dingfield > Jason Inman > Jeremy Broom Medic 122: > Monty Moon > Rene Rodriguez Truck 123: > Kerry Kinney > Jarrett Parr > David White > Charles Carter Battalion 121: > Matt Uppole Emergency Management: > Brad Simkins Deputy Chiefs: > Eric Greaser > Gregg Loyd WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: City Manager August 23, 2011 8 ✔ PROCLAMATION Consider approval of a proclamation proclaiming August 26, 2011 as "Technology Day" in the city of Coppell and recognizing Coppell High School "hometown technology hero" Jodie Deinhammer for her achievements and being named as a Tech Titan of the Future - Math/Science Teacher Finalist, and authorizing the Mayor to sign. Staff recommends approval. !Tech Day - 1 AR PROCLAMATION WHEREAS, the advancement of technology is vital to economic prosperity, quality of life and security in our nation, our state and our City; and WHEREAS, Milken Institute’s analysis on “America’s High-Tech Economy” and other studies have established clear correlations between the presence and size of the technology sector of a region’s economy and its overall economic growth rate; and WHEREAS, nationwide, the average high-tech industry worker earned 86 percent more than the average private sector worker and Texas ranks second only to California in high- tech employment with 474,100 tech industry workers; and WHEREAS, DFW is ranked in the definitive 2010 “Cyberstates” study by TechAmerica as one of the Top 5 US metropolitan areas in high-tech employment; and WHEREAS, with nearly 40% of the states high-tech jobs, DFW is the leading center for technology in Texas; and WHEREAS, in order to maintain and grow the technology business base in this region it is important to appreciate the importance of technology, to recognize key organizations and individuals contributing to technology and to capture the interest of our region’s young people in pursuing technology careers. NOW, THEREFORE, I, Douglas N. Stover, Mayor of the city of Coppell, do hereby proclaim August 26, 2011 as “Technology Day” in the city of Coppell and recognize Coppell High School “hometown technology hero” JODIE DEINHAMMER for her achievements and being named as a Tech Titan of the Future – Math/Science Teacher Finalist. IN WITNESS THEREOF, I have set my hand and caused the seal of the city of Coppell to be affixed this 23rd day of August 2011. ______________________________ Douglas N. Stover, Mayor ATTEST: ___________________________ Christel Pettinos, City Secretary WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: City Manager August 23, 2011 9 ✔ PROCLAMATION Consider approval of a proclamation recognizing the month of September as “FALL PREVENTION AWARENESS MONTH,” and authorizing the Mayor to sign. Staff recommends approval. !Fall - 1 AR PROCLAMATION WHEREAS, the city of Coppell in Denton and Dallas counties is home to more than 2,619 citizens age 55 and over (7.28% of population); and WHEREAS, older Texans are valuable members of our society who enhance our communities and personal lives; and WHEREAS, one out of three older Texans will fall this year; and WHEREAS, falls among older adults account for 40% of all nursing home admission and cost our state $1.8 billion dollars annually; and WHEREAS, the emotional, psychological and catastrophic costs that effect families and caregivers is immeasurable. NOW, THEREFORE, I, Douglas N. Stover, Mayor of the City of Coppell, do hereby proclaim that September 2011 to be "FALL PREVENTION AWARENESS MONTH" and urge everyone to take time during September of 2011 to learn about factors that contribute to falls and strategies that can lessen the chance that they will experience a fall. Our efforts can improve the lives of our older citizens and help pave the way for safer future generations. IN WITNESS THEREOF, I have set my hand and caused the seal of the City of Coppell to be affixed this 23rd day of August 2011. _________________________________ Douglas N. Stover, Mayor ATTEST: ___________________________ Christel Pettinos, City Secretary WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: City Manager August 23, 2011 10 ✔ PROCLAMATION Consider approval of a proclamation recognizing September 5-9, 2011 as “NATIONAL PAYROLL WEEK,” and authorizing the Mayor to sign. Staff recommends approval. !Payroll Wk - 1 AR PROCLAMATION WHEREAS, the American Payroll Association and its 23,000 members have launched a nationwide public awareness campaign that pays tribute to the more than 156 million people who work in the United States and the payroll professionals who support the American system by paying wages, reporting worker earnings and withholding federal employment taxes; and WHEREAS, payroll professionals in Coppell, Texas play a key role in maintaining the economic health of Coppell, carrying out such diverse tasks as paying into the unemployment insurance system, providing information for child support enforcement, and carrying out tax withholding, reporting and depositing; and WHEREAS, payroll departments collectively spend more than $15 billion annually complying with a myriad of federal and state wage and tax laws; and WHEREAS, payroll professionals play an increasingly important role ensuring the economic security of American families by helping to identify non-custodial parents and making sure they comply with their child support mandates; and WHEREAS, payroll professionals have become increasingly proactive in educating both the business community and the public at large about the payroll tax withholding systems; and WHEREAS, payroll professionals meet regularly with federal and state tax officials to discuss both improving compliance with government procedures and how compliance can be achieved at less cost to both government and businesses; and WHEREAS, the week in which Labor Day falls has been proclaimed National Payroll Week. NOW, THEREFORE, I, Douglas N. Stover, Mayor of the City of Coppell, do hereby proclaim the week of September 5-9, 2011 as "NATIONAL PAYROLL WEEK" IN WITNESS THEREOF, I have set my hand and caused the seal of the city of Coppell to be affixed this 23rd day of August 2011. ____________________________________________ Douglas N. Stover, Mayor ATTEST: _____________________________ Christel Pettinos, City Secretary AGENDA REQUEST FORM CITIZENS' APPEARANCES ORDINANCE NO. 2001-964 AN ORDINANCE OF THE CITY OF COPPELL, TEXAS, ESTABLISHING RULES, TIMES AND PROCEDURES FOR CONDUCTING CITY COUNCIL MEETINGS. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COPPELL, TEXAS, THE FOLLOWING ARE HEREBY ADOPTED AS THE RULES, TIMES AND PROCEDURES FOR CONDUCTING COUNCIL MEETINGS OF THE CITY COUNCIL OF THE CITY OF COPPELL, TEXAS: The City of Coppell Code of Ordinances, Article 1-10 "Rules, Times and Procedures for Conducting City Council Meetings," be, and the same is hereby, amended to read as follows: "ARTICLE 1-10 RULES, TIMES AND PROCEDURES FOR CONDUCTING CITY COUNCIL MEETINGS ". . . 1-10-6.2.1 CITIZENS APPEARANCE Persons wishing to speak on any matter other than an item scheduled for a public hearing on the agenda, must sign a register and list their residence address, provided by the City Secretary on a table outside the Council Chambers, and such persons may be heard only at the "Citizens Appearance" portion of a regular meeting or special meeting. Each speaker must state his or her name and address of residence. Presentations by individuals during the "Citizens Appearance" shall be limited to two (2) minutes each. An individual speaker's time may be extended for an additional two (2) minutes with the approval of a majority of the Council members present. There shall be a cumulative limit of twenty (20) minutes allotted of any regular or special Council meeting. Those persons who signed up to speak at the "Citizens Appearance" shall be called upon in the order that they have signed the provided register. No personal attacks by any speaker shall be made against any member of the Council, Mayor, individual, group or corporation (Charter Article 3, Section 3.12). Agenda Request Form - Revised 09/02 Document Name: %citapp.doc WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: City Secretary August 23, 2011 12/A ✔ PROCEDURAL Consider approval of minutes: August 9, 2011 Minutes of the City Council meeting held on August 9, 2011. Staff recommends approval. %minutes MINUTES OF AUGUST 9, 2011 The City Council of the City of Coppell met in Regular Called Session on Tuesday, August 9, 2011, at 5:30 p.m. in the City Council Chambers of Town Center, 255 Parkway Boulevard, Coppell, Texas. The following members were present: Doug Stover, Mayor Marsha Tunnell, Mayor Pro Tem Tim Brancheau, Councilmember Bob Mahalik, Councilmember Brianna Hinojosa-Flores, Councilmember (late arrival) Marsha Tunnell, Councilmember Billy Faught, Councilmember Marvin Franklin, Councilmember Karen Hunt, Councilmember Also present were City Manager Clay Phillips, City Secretary Christel Pettinos and City Attorney Robert Hager. 1. Call to order. Mayor Stover called the meeting to order, determined that a quorum was present and convened into Executive Session. Councilmember Hinojosa-Flores arrived prior to convening Executive Session. EXECUTIVE SESSION (Closed to the Public) 2. Convene Executive Session A. Section 551.071, Texas Government Code - Consultation with City Attorney and Section 551.072, Texas Government Code - Deliberation regarding Real Property. 1. Seek legal advice from the City Attorney concerning the settlement and land purchase agreements with the Billingsleys at Northlake. B. Section 551.072, Texas Government Code - Deliberation regarding Real Property. cm080911 Page 1 of 14 1. Discussion regarding land located south of Bethel Road and east of S. Coppell Road. Mayor Stover convened into Executive Session at 5:42 p.m. Mayor Stover adjourned the Executive Session at 6:03 p.m. and opened the Work Session. WORK SESSION (Open to the Public) 3. Convene Work Session A. Discussion regarding Police Department Alarm Fee Permits. B. Overview of RCC Consultants Public Safety Communication Consolidation Report. C. Discussion regarding Planning Department Application Fees. D. Discussion of Agenda Items. Mayor Stover adjourned Work Session at 7:29 p.m. and opened the Regular Session. REGULAR SESSION (Open to the Public) 4. Convene Regular Session. 5. Invocation. Pastor Clayton Coates with First Baptist Church led those present in the Invocation. 6. Pledge of Allegiance. Mayor Stover led those present in the Pledge of Allegiance. 7. Citizens' Appearances. cm080911 Page 2 of 14 1) Thomas Burrows, 138 Wynnpage, requested a change to the Code of Ordinances regarding grass height. 8. Consider approval of the following consent agenda items: A. Consider approval of minutes: July 26, 2011. B. Consider approval of an Ordinance for Case No. PD- 237R4-HC, QuikTrip, a zoning change from PD-237R3- HC (Planned Development-237 Revision 3-Highway Commercial) to PD-237R4-HC (Planned Development- 237 Revision 4-Highway Commercial), to attach a revised Detail Site Plan, including revised building and canopy elevations, to allow a 5,700-square-foot convenience store with eight (8) gas pump islands on approximately 2.3 acres of land located at the northeast corner of S. Belt Line Road and the proposed extension of Dividend Drive and authorizing the Mayor to sign. C. Consider approval of a 12-month extension to September 8, 2012 for the Carter Addition PH III, Replat/Final Plat, being a replat of Lot 1, Block 1 of the Carter Addition and a final plat of the remaining unplatted property to subdivide 20.28 acres of property into 24 single-family residential lots and two (2) common area lots located at 441 Carter Drive. D. Consider approval of the annual review of the written Investment Policy of the City of Coppell as provided by the Public Funds Investment Act, Chapter 2256, Texas Government Code. E. Consider approval of an Ordinance of the City of Coppell, Texas, amending the Code of Ordinances by amending Chapter 2, Article 2-3, Keep Coppell Beautiful Board, by amending Section 2-3-2 by providing for the appointment of two (2) Alternates to said board; providing a repealing clause; providing a severability clause; and providing for an effective date. F. Consider approval of accepting the resignation of Shannon Wentz from Keep Coppell Beautiful and recommending Richard Kelley to fill the vacancy. Item B was pulled to be considered separately. cm080911 Page 3 of 14 Action: Mayor Pro Tem Tunnell moved to approve Consent Agenda Items A, C, D, E carrying Ordinance No. 2011-1284, and F. Councilmember Mahalik seconded the motion; the motion carried 7-0 with Mayor Pro Tem Tunnell and Councilmembers Brancheau, Mahalik, Hinojosa-Flores, Faught, Franklin and Hunt voting in favor of the motion. B. Consider approval of an Ordinance for Case No. PD- 237R4-HC, QuikTrip, a zoning change from PD-237R3-HC (Planned Development-237 Revision 3-Highway Commercial) to PD-237R4-HC (Planned Development-237 Revision 4-Highway Commercial), to attach a revised Detail Site Plan, including revised building and canopy elevations, to allow a 5,700-square-foot convenience store with eight (8) gas pump islands on approximately 2.3 acres of land located at the northeast corner of S. Belt Line Road and the proposed extension of Dividend Drive and authorizing the Mayor to sign. At this time, Mayor Pro Tem Tunnell recused herself from the item due to a filed Conflict of Interest Affidavit. Action: Councilmember Faught moved to approve Consent Agenda Item B carrying Ordinance No. 91500-A-570. Councilmember Hinojosa-Flores seconded the motion; the motion carried 6-0 with Councilmembers Brancheau, Mahalik, Hinojosa-Flores, Faught, Franklin and Hunt voting in favor of the motion. At this time, Mayor Pro Tem Tunnell returned to the meeting. 9. PUBLIC HEARING: To receive public comment concerning the proposed 2011- 2012 Budget for the Coppell Crime Control and Prevention District. cm080911 Page 4 of 14 Presentation: Jennifer Miller, Director of Finance, made a presentation to the Council. Public Hearing: Mayor Stover opened the Public Hearing and advised that no one had signed up to speak. Action: Mayor Pro Tem Tunnell moved to close the Public Hearing concerning the proposed 2011-2012 Budget for the Coppell Crime Control and Prevention District. Councilmember Franklin seconded the motion; the motion carried 7-0 with Mayor Pro Tem Tunnell and Councilmembers Brancheau, Mahalik, Hinojosa-Flores, Faught, Franklin and Hunt voting in favor of the motion. 10. To approve the proposed 2011-2012 Budget for the Coppell Crime Control and Prevention District. Presentation: Jennifer Miller, Director of Finance, made a presentation to the Council. Action: Councilmember Franklin moved to approve the proposed 2011-2012 Budget for the Coppell Crime Control and Prevention District. Councilmember Brancheau seconded the motion; the motion carried 7-0 with Mayor Pro Tem Tunnell and Councilmembers Brancheau, Mahalik, Hinojosa-Flores, Faught, Franklin and Hunt voting in favor of the motion. 11. Consider approval of the certification of the 2011 anticipated collection rate for the period of July 1, 2011 through June 30, 2012, and the amount of excess debt collections during the period of July 1, 2010 through June 30, 2011. cm080911 Page 5 of 14 Presentation: Jennifer Miller, Director of Finance, made a presentation to the Council. Action: Councilmember Hunt moved to approve the certification of the 2011 anticipated collection rate for the period of July 1, 2011 through June 30, 2012, and the amount of excess debt collections during the period of July 1, 2010 through June 30, 2011. Councilmember Hinojosa-Flores seconded the motion; the motion carried 7-0 with Mayor Pro Tem Tunnell and Councilmembers Brancheau, Mahalik, Hinojosa- Flores, Faught, Franklin and Hunt voting in favor of the motion. 12. PUBLIC HEARING: Consider approval of Case No. PD-251-SF-12, Rosebriar Estates, a zoning change request from SF-12 (Single Family-12) to PD- 251-SF-12 (Planned Development-251-Single Family-12), to allow the development of six (6) single-family lots, with a minimum lot size of 12,000 square feet and three (3) common area lots on 2.8 acres of property located south of Sandy Lake Road between Dobecka Drive and Castlebury Court. At this time, Councilmember Brancheau recused himself from the items 12, 13, and 14 due to a filed Conflict of Interest Affidavit. Presentation: Marcie Diamond, Assistant Director of Planning, made a presentation to the Council. Public Hearing: Mayor Stover continued the Public Hearing and asked for the following people to speak: 1) Marcia Brancheau, 106 Dobecka, spoke against the item. 2) Renetta Hamilton, 118 Dobecka, spoke against the item. 3) Chris Burgy, 100 Dobecka, spoke against the item. 4) Brad and Michele McClew, 121 Dobecka, spoke against the item. cm080911 Page 6 of 14 Action: Mayor Pro Tem Tunnell moved to close the Public Hearing and deny Case No. PD-251-SF-12, Rosebriar Estates, a zoning change request from SF- 12 (Single Family-12) to PD-251-SF-12 (Planned Development-251-Single Family-12), to allow the development of six (6) single-family lots, with a minimum lot size of 12,000 square feet and three (3) common area lots on 2.8 acres of property located south of Sandy Lake Road between Dobecka Drive and Castlebury Court and waiving the application fees if the applicant reapplies. Councilmember Hunt seconded the motion; the motion carried 6-0 with Mayor Pro Tem Tunnell and Councilmembers Mahalik, Hinojosa-Flores, Faught, Franklin and Hunt voting in favor of the motion. 13. Consider approval of the Rosebriar Estates, Preliminary Plat, to allow the subdivision of 2.8 acres of property into six (6) single-family lots and three (3) common area lots on property located south of Sandy Lake Road between Dobecka Drive and Castlebury Court. Presentation: Marcie Diamond, Assistant Director of Planning, made a presentation to the Council. Action: Mayor Pro Tem Tunnell moved to deny the Rosebriar Estates, Preliminary Plat, to allow the subdivision of 2.8 acres of property into six (6) single- family lots and three (3) common area lots on property located south of Sandy Lake Road between Dobecka Drive and Castlebury Court. Councilmember Mahalik seconded the motion; the motion carried 6-0 with Mayor Pro Tem Tunnell and Councilmembers Mahalik, Hinojosa-Flores, Faught, Franklin and Hunt voting in favor of the motion. 14. Consider authorizing the Planning and Zoning Commission to be the Municipal Authority for the approval of the Final Plat for Rosebriar Estates, to allow the subdivision of 2.8 acres of property into six (6) single-family lots and three (3) common cm080911 Page 7 of 14 area lots on property located south of Sandy Lake Road between Dobecka Drive and Castlebury Court. Presentation: Marcie Diamond, Assistant Director of Planning, made a presentation to the Council. Action: Mayor Pro Tem Tunnell moved to deny authorizing the Planning and Zoning Commission to be the Municipal Authority for the approval of the Final Plat for Rosebriar Estates, to allow the subdivision of 2.8 acres of property into six (6) single-family lots and three (3) common area lots on property located south of Sandy Lake Road between Dobecka Drive and Castlebury Court. Councilmember Franklin seconded the motion; the motion carried 6-0 with Mayor Pro Tem Tunnell and Councilmembers Mahalik, Hinojosa-Flores, Faught, Franklin and Hunt voting in favor of the motion. Mayor Stover recessed the meeting at 8:54 p.m. for a short break. Mayor Stover reconvened the Regular Session at 9:04 p.m. At this time, Councilmember Brancheau returned to the meeting. 15. PUBLIC HEARING: Consider approval of the Bellacere Addition, Replat, to replat 1.96 acres of property into eight (8) single-family lots and two (2) common area lots located along the north side of Sandy Lake Road, approximately 150 feet east of Summer Place Drive. Presentation: Marcie Diamond, Assistant Director of Planning, made a presentation to the Council. Tom Whatley, applicant, was available for questions. cm080911 Page 8 of 14 Public Hearing: Mayor Stover opened the Public Hearing and advised that no one had signed up to speak. Action: Councilmember Franklin moved to close the Public Hearing and approve the Bellacere Addition, Replat, to replat 1.96 acres of property into eight (8) single-family lots and two (2) common area lots located along the north side of Sandy Lake Road, approximately 150 feet east of Summer Place Drive subject to the following conditions: 1) A Tree Removal permit is required prior to start of construction. 2) Park Development Fees in the amount of $1,285 per unit will be required prior to the filing of the replat. 3) Additional comments may be generated upon detailed engineering review. Councilmember Brancheau seconded the motion; the motion carried 6-1 with Councilmembers Brancheau, Mahalik, Hinojosa-Flores, Faught, Franklin and Hunt voting in favor of the motion. Mayor Pro Tem Tunnell voted against the motion. 16. Consider approval of the Royal Oaks, Final Plat, to subdivide 5.16 acres of property into 22 single-family lots on property located on the south side of Sandy Lake Road between Heartz Road and London Way. Presentation: Marcie Diamond, Assistant Director of Planning, made a presentation to the Council. Tommy Cansler, applicant, was available for questions. Action: Councilmember Faught moved to approve the Royal Oaks, Final Plat, to subdivide 5.16 acres of property into 22 single-family lots on property located on the south side of Sandy Lake Road between Heartz Road and London Way subject to the following conditions: cm080911 Page 9 of 14 1) A Tree Removal permit is required prior to start of construction. 2) Park Development Fees in the amount of $1,285 per unit will be required prior to the filing of the final plat. 3) Additional comments may be generated upon detailed engineering review. Councilmember Brancheau seconded the motion; the motion carried 6-1 with Councilmembers Brancheau, Mahalik, Hinojosa-Flores, Faught, Franklin and Hunt voting in favor of the motion. Mayor Pro Tem Tunnell voted against the motion. 17. PUBLIC HEARING: Consider approval of the Vaughan Addition, Lot 1R2, Block 1, Replat, being a replat of Lot 1R, Block 1, of the Vaughan Addition, to reduce the size of the lot from 1.2 acres to 0.3 acres, to allow the replatting of the 0.9 acres into Old Coppell Estates Addition, Lots 4R2 & 5R2, Block 1, on property located at 412 Bethel Road. Marcie Diamond, Assistant Director of Planning, requested that items 17 and 18 be considered together. Presentation: Marcie Diamond, Assistant Director of Planning, made a presentation to the Council. Sharon Vaughan, applicant, was available for questions. Public Hearing: Mayor Stover opened the Public Hearing and advised that no one had signed up to speak. Action: Mayor Pro Tem Tunnell moved to close the Public Hearing and approve: Item No. 17: Vaughan Addition, Lot 1R2, Block 1, Replat, being a replat of Lot 1R, Block 1, of the Vaughan Addition, to reduce the size of the lot from 1.2 cm080911 Page 10 of 14 acres to 0.3 acres, to allow the replatting of the 0.9 acres into Old Coppell Estates Addition, Lots 4R2 & 5R2, Block 1, on property located at 412 Bethel Road. And Item No. 18: Old Coppell Estates Addition, Lots 4R2 & 5R2, Block 1, Replat, being a replat of a portion of the Old Coppell Estates Addition, to incorporate approximately 0.9 acres of Lot 1R, Block 1 of the Vaughn Addition into Lots 4R & 5R, Block 1, Old Coppell Estates Addition, containing a total of approximately 1.4 acres of property, located west of Hearthstone Drive and north of W. Bethel Road, properties known as 357 & 361 Hearthstone Lane. Councilmember Hunt seconded the motion; the motion carried 7-0 with Mayor Pro Tem Tunnell and Councilmembers Brancheau, Mahalik, Hinojosa-Flores, Faught, Franklin and Hunt voting in favor of the motion. 18. PUBLIC HEARING: Consider approval of the Old Coppell Estates Addition, Lots 4R2 & 5R2, Block 1, Replat, being a replat of a portion of the Old Coppell Estates Addition, to incorporate approximately 0.9 acres of Lot 1R, Block 1 of the Vaughn Addition into Lots 4R & 5R, Block 1, Old Coppell Estates Addition, containing a total of approximately 1.4 acres of property, located west of Hearthstone Drive and north of W. Bethel Road, properties known as 357 & 361 Hearthstone Lane. Items 17 & 18 were considered together. Please see Item 17 for the minutes. 19. Consider approval of an Ordinance of the City of Coppell, Texas, ordering a Special Election to be held on November 8, 2011 to consider the continuation and adoption of one-fourth of one percent sales and use tax to provide revenue for maintenance and repair of municipal streets; and, to consider the continuation and the adoption of one-fourth of one percent sales and use tax for crime reduction programs for a ten (10) cm080911 Page 11 of 14 year period; providing for the publication and posting of notice; authorizing the City Manager to execute an Election Agreement and Election Services Contract with Dallas County Elections Department; and providing an effective date. Un decreto del municipio de la ciudad de Coppell, Texas en el cual se convoca una elección especial a llevarse a cabo el 8 de Noviembre del 2011 con el fin de someterse la continuidad y adopción de una cuarta parte del uno por ciento recaudado por el impuesto sobre ventas y uso, para contemplarse dicho ingreso como un recurso económico para el mantenimiento y reparación de las calles municipales; y a someterse la continuidad y adopción de una cuarta parte del uno por ciento recaudado por el impuesto sobre ventas y uso, para los programas de disminución de la criminalidad durante un plazo de diez (10) años, contemplándose la publicación y exhibición de la notificación; autorizándole al regente de la cuidad a ejecutar un convenio electoral y el contrato de servicios de notificación al electorado, con el departamento electoral del condado de Dallas; y contemplarse una fecha en la cual entrará en vigor. Presentation: Clay Phillips, City Manager, made a presentation to the Council. Action: Councilmember Faught moved to approve an Ordinance carrying Ordinance No. 2011-1285 of the City of Coppell, Texas, ordering a Special Election to be held on November 8, 2011 to consider the continuation and adoption of one-fourth of one percent sales and use tax to provide revenue for maintenance and repair of municipal streets; and, to consider the continuation and the adoption of one-fourth of one percent sales and use tax for crime reduction programs for a ten (10) year period; providing for the publication and posting of notice; authorizing the City Manager to execute an Election Agreement and Election Services Contract with Dallas County Elections Department; and providing an effective date. Councilmember Franklin seconded the motion; the motion carried 7-0 with Mayor Pro Tem Tunnell and Councilmembers Brancheau, Mahalik, Hinojosa-Flores, Faught, Franklin and Hunt voting in favor of the motion. cm080911 Page 12 of 14 20. City Manager's Report. A. Project Update and Future Agendas. A. City Manager Clay Phillips stressed the need for water conservation by citizens due to high temperatures. Mr. Phillips reminded everyone that a Public Hearing on the city budget is scheduled for the August 23rd council meeting. 21. Mayor and Council Reports. A. Report by Mayor Stover regarding the Summer Music Series in August. A. Mayor Stover reported that the Summer Music Series will continue on each Friday night in August at Town Center Plaza from 8-10 p.m. 22. Public Service Announcements concerning items of community interest and no Council action or deliberation is permitted. Councilmember Hunt reported that the Coppell Rotary Club is partnering with the Coppell Fire Department for a school supply drive, “Buy One, Give One”. Supplies may be dropped off at any of the Coppell Fire Stations. Mayor Pro Tem Tunnell reported that the program Coppell Reads has begun. This year’s book is “The Devil in the White City”. Copies are available at the library. Citizens are asked to pass the book on to a neighbor or friend when you are finished reading. Activities will be in October. 23. Necessary action resulting from Executive Session. Action: Councilmember Franklin moved to approve Resolution No. 2011-0809.1 authorizing the purchase of land described as Lots 1 through 7, inclusive, Block A, the Villages of Old Coppell from Kolberg Development LLC; authorizing the City Manager to execute all documents necessary to accomplish such purchase. Councilmember Hunt seconded the motion; cm080911 Page 13 of 14 the motion carried 7-0 with Mayor Pro Tem Tunnell and Councilmembers Brancheau, Mahalik, Hinojosa-Flores, Faught, Franklin and Hunt voting in favor of the motion. Adjournment. There being no further business to come before the City Council, the meeting was adjourned. ____________________________________ Douglas N. Stover, Mayor ATTEST: ____________________________________ Christel Pettinos, City Secretary cm080911 Page 14 of 14 WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: ȱ Finance August 23, 2011 12/B ✔ ORDINANCE Consider approval of an ordinance approving a negotiated settlement with Atmos Energy Corp., Mid-Tex Division, regarding the Rate Review Mechanism filing and finding the attached Tariffs implementing new rates within the corporate city limits of the City of Coppell are just and reasonable; and authorizing the Mayor to sign. Atmos requested to increase rates to generate an additional $15.7 million in revenues through the Rate Review Mechanism that replaced the more unfavorable GRIP ratemaking process. The original rate increase has been negotiated down to reflect a rate increase that will result in an increase in revenues of approximately $6.6 million to cover direct costs associated with the steel line replacement program. The average monthly residential gas bill will increase $0.31. Our consultants agree Atmos can justify an increase in rates to generate additional revenue and has recommended approval of the attached settlement. Staff recommends approval. $AtmosGas-1AR STAFF REPORT The City, along with approximately 154 other cities served by Atmos Energy Mid-Tex Division (“Atmos Mid-Tex” or “Company”), is a member of the Atmos Cities Steering Committee (“ACSC” or “Steering Committee”). On or about April 1, 2011, Atmos Mid-Tex filed with the City an application to increase natural gas rates pursuant to the Rate Review Mechanism (“RRM”) tariff approved by the City as part of the settlement of the Atmos Mid-Tex 2007 Statement of Intent to increase rates. This is the fourth annual RRM filing. The Atmos Mid-Tex RRM filing sought a $15.7 million rate increase. The City worked with ACSC to analyze the schedules and evidence offered by Atmos Mid-Tex to support its request to increase rates. The Ordinance and attached rate and RRM tariffs are the result of negotiations between ACSC and the Company to resolve issues raised by ACSC during the review and evaluation of ACSC’s RRM filing. The Ordinance resolves the Company’s RRM filing by authorizing supplemental revenue of $6.6 million to be recovered through the customer charge component of rates to cover direct incremental costs associated with a steel service line replacement program approved as part of last year’s rate adjustment. All other relief requested by Atmos Mid-Tex is denied. The ACSC Settlement Committee and ACSC legal counsel recommend that all ACSC Cities adopt the Ordinance implementing the rate change. RRM Background: The RRM tariff was approved by ACSC Cities as part of the settlement agreement to resolve the Atmos Mid-Tex 2007 system-wide rate filing at the Railroad Commission. Atmos Mid-Tex’s current action represents an extension to the three-year trial project known as the Rate Review Mechanism (“RRM”) process. The RRM process was created collaboratively by ACSC and Atmos Mid-Tex as an alternative to the legislatively authorized GRIP surcharge process. ACSC opposed GRIP because it constituted piecemeal ratemaking, did not allow any reasonableness review, and did not allow participation by cities or recovery of cities’ rate case expenses. The RRM process has allowed for a more comprehensive rate review and annual adjustment as a substitute for GRIP filings during the three-year trial period specified by the tariff. Purpose of the Ordinance: Rates cannot change and the Settlement Agreement with Atmos Mid-Tex cannot be implemented without passage of rate ordinances by cities. No related matter is pending at the Railroad Commission. The purpose of the Ordinance is to approve rate tariffs (“Attachment A”) that reflect the negotiated rate change pursuant to the RRM process and to ratify a Settlement Agreement recommended by the ACSC Settlement Committee and Executive Committee. As a result of the negotiations, ACSC was able to reduce the Company’s requested $15.7 million RRM increase to $6.6 million, allowing only incremental revenues necessary to cover direct costs associated with the steel service line replacement program approved by ACSC Cities 1327115/Atmos Mid-Tex RRM-4 Ordinance Staff Report 1 in 2010. Approval of the Ordinance will result in the implementation of new rates that increase Atmos Mid-Tex’s revenues effective September 1, 2011. Reasons Justifying Approval of the Negotiated Resolution: During the time that the City has retained original jurisdiction in this case, consultants working on behalf of ACSC cities have investigated the support for the Company’s requested rate increase. While the evidence does not support the $15.7 million increase requested by the Company, ACSC consultants agree that the Company can justify an increase in revenues of $6.6 million, a result consistent with Cities’ approval of a steel service line replacement program last year. The agreement on $6.6 million is a compromise between the positions of the parties. The Settlement Agreement of 2010 which included an extension of the RRM process, included an allowance for recovery of direct costs, excluding overheads, of the steel service line replacement program. Current year recovery factors of $00.15 for residential customers and $00.41 for commercial customers per month were authorized last year. The 2010 Settlement Agreement contemplated that the steel service line replacement program would be adjusted annually, but shall be capped at $00.44 cents for residential customers and $1.22 for commercial customers. The increase in this case is consistent with the caps contemplated last year for the steel service line replacement program, and nothing more. The alternative to a settlement of the RRM filing would be a contested case proceeding before the Railroad Commission on the Company’s current application, would take several months and cost ratepayers millions of dollars in rate case expenses, and would not likely produce a result more favorable than that to be produced by the settlement. The ACSC Settlement Committee recommends that ACSC members take action to approve the Ordinance authorizing new rate tariffs. Steel Service Line Replacement: Under pressure from the Railroad Commission to establish a comprehensive program to replace service lines that contain steel which is subject to corrosion and leaks, ACSC worked with Atmos Mid-Tex in 2010 to establish a risk based approach to steel service line replacement that accomplishes the following goals: 1. Replace all service lines throughout the Mid-Tex Region with the highest degree of risk within two years; 2. Coordination between ACSC city members and Atmos Mid-Tex to minimize disruption of rights of way without compromising safety; 3. To minimize and spread the rate impact on customers of the replacement program, the service lines with little relative risk of leaks should be replaced over a 10-year period; and 4. Current recovery of incremental (above and beyond normal maintenance and repair addressed in RRM proceedings) direct (excluding Atmos Mid-Tex overheads) cost of service line replacement should be permitted as an adder to customer charges. 1327115/Atmos Mid-Tex RRM-4 Ordinance Staff Report 2 Fulfillment of these goals in the 2010 case led to $00.15 and $00.41 added to residential and commercial customer charges, respectively. The annual customer charge adder to cover the steel service line replacement program may not exceed $00.44 and $1.22 for residential and commercial customers, respectively, prior to the entry of a Final Order in the next system-wide Statement of Intent rate proceeding. Changes to Customer Charges: The Settlement Agreement approved in 2010 contemplated that incremental revenues to cover future steel service line replacement costs would be recovered through customer charges. Consistent with that approach, the $6.6 million in additional revenues to be recovered following passage of the Ordinance is accomplished by increasing customer charges. The tariffs to be approved by the Ordinance set monthly customer charges at $7.50 and $16.75 for residential and commercial customers, respectively. The commodity portion of the commercial rate will decline slightly from existing rates. Explanation of “Be It Ordained” Paragraphs: 1. This paragraph approves all findings in the Ordinance. 2. This section adopts the attached tariffs (“Attachment A”) in all respects and finds the rates set pursuant to the attached tariffs to be just, reasonable and in the public interest. Note that only new tariffs or existing tariffs being revised are attached to the Ordinance. Existing tariffs not being changed in any way are not attached to the Ordinance. 3. This section requires the Company to reimburse ACSC for reasonable rate making costs associated with reviewing and processing the RRM application. 4. This section repeals any resolution or ordinance that is inconsistent with this Ordinance. 5. This section finds that the meeting was conducted in compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. 6. This section is a savings clause, which provides that if any section(s) is later found to be unconstitutional or invalid, that finding shall not affect, impair or invalidate the remaining provisions of this Ordinance. This section further directs that the remaining provisions of the Ordinance are to be interpreted as if the offending section or clause never existed. 7. This section provides for an effective date upon passage. 8. This paragraph directs that a copy of the signed Ordinance be sent to a representative of the Company and legal counsel for ACSC. 1327115/Atmos Mid-Tex RRM-4 Ordinance Staff Report 3 ORDINANCE NO. ______________ AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF COPPELL, TEXAS, (“CITY”) APPROVING A NEGOTIATED RESOLUTION BETWEEN THE ATMOS CITIES STEERING COMMITTEE (“ACSC” OR “STEERING COMMITTEE”) AND ATMOS ENERGY CORP., MID-TEX DIVISION (“ATMOS MID-TEX” OR “COMPANY”) REGARDING THE COMPANY’S FOURTH ANNUAL RATE REVIEW MECHANISM (“RRM”) FILING IN ALL CITIES EXERCISING ORIGINAL JURISDICTION; DECLARING EXISTING RATES TO BE UNREASONABLE; ADOPTING TARIFFS THAT REFLECT RATE ADJUSTMENTS CONSISTENT WITH THE NEGOTIATED SETTLEMENT AND FINDING THE RATES TO BE SET BY THE ATTACHED TARIFFS TO BE JUST AND REASONABLE; REQUIRING THE COMPANY TO REIMBURSE CITIES’ REASONABLE RATEMAKING EXPENSES; REPEALING CONFLICTING RESOLUTIONS OR ORDINANCES; DETERMINING THAT THIS ORDINANCE WAS PASSED IN ACCORDANCE WITH THE REQUIREMENTS OF THE TEXAS OPEN MEETINGS ACT; ADOPTING A SAVINGS CLAUSE; DECLARING AN EFFECTIVE DATE; AND REQUIRING DELIVERY OF THIS ORDINANCE TO THE COMPANY AND THE STEERING COMMITTEE’S LEGAL COUNSEL. WHEREAS, the City of Coppell, Texas (“City”) is a gas utility customer of Atmos Energy Corp., Mid-Tex Division (“Atmos Mid-Tex” or “ Company”), and a regulatory authority with an interest in the rates and charges of Atmos Mid-Tex; and WHEREAS, the City is a member of the Atmos Cities Steering Committee (“ACSC” or “Steering Committee”), a coalition of approximately 154 similarly situated cities served by Atmos Mid-Tex that have joined together to facilitate the review of and response to natural gas issues affecting rates charged in the Atmos Mid-Tex service area (such participating cities are referred to herein as “ACSC Cities”); and WHEREAS, pursuant to the terms of the agreement settling the Company’s 2007 Statement of Intent to increase rates, ACSC Cities and the Company worked collaboratively to 1327084/Atmos Mid-Tex RRM-4 Ordinance 1 develop a Rate Review Mechanism (“RRM”) tariff that allows for an expedited rate review process controlled in a three-year experiment by ACSC Cities as a substitute to the current GRIP process instituted by the Legislature; and WHEREAS, the City took action in 2008 to approve a Settlement Agreement with Atmos Mid-Tex resolving the Company’s 2007 rate case and authorizing the RRM Tariff; and WHEREAS, the 2008 Settlement Agreement contemplates reimbursement of ACSC Cities’ reasonable expenses associated with RRM applications; and WHEREAS, the Steering Committee and Atmos Mid-Tex agreed to extend the RRM process in reaching a settlement in 2010 on the third RRM filing; and WHEREAS, on or about April 1, 2011, the Company filed with the city its fourth annual RRM filing, requesting to increase natural gas base rates by $15.7 million; and WHEREAS, ACSC coordinated its review of Atmos Mid-Tex’s RRM filing by designating a Settlement Committee made up of ACSC representatives, assisted by ACSC attorneys and consultants, to resolve issues identified by ACSC in the Company’s RRM filing; and WHEREAS, independent analysis by ACSC’s rate expert concluded that Atmos Mid-Tex is unable to justify an increase over current rates except for undisputed costs of $6.6 million to cover the steel service line replacement program initiated in 2010; and WHEREAS, the ACSC Settlement Committee, as well as ACSC lawyers and consultants, recommend that ACSC Cities approve the attached rate tariffs (“Attachment A” to this Ordinance), which will increase the Company’s revenue requirement by $6.6 million to extend current recovery of incremental direct costs of the steel service line replacement program authorized by ACSC Cities in ordinances passed in 2010; and 1327084/Atmos Mid-Tex RRM-4 Ordinance 2 WHEREAS, the attached tariffs implementing new rates are consistent with the negotiated resolution reached by ACSC Cities and are just, reasonable, and in the public interest. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COPPELL, TEXAS: Section 1. That the findings set forth in this Ordinance are hereby in all things approved. Section 2. That the City Council finds the existing rates for natural gas service provided by Atmos Mid-Tex are unreasonable and new tariffs which are attached hereto and incorporated herein as Attachment A, are just and reasonable and are hereby adopted. Section 3. That Atmos Mid-Tex shall reimburse the reasonable ratemaking expenses of the ACSC Cities in processing the Company’s rate application. Section 4. That to the extent any resolution or ordinance previously adopted by the Council is inconsistent with this Ordinance, it is hereby repealed. Section 5. That the meeting at which this Ordinance was approved was in all things conducted in strict compliance with the Texas Open Meetings Act, Texas Government Code, Chapter 551. Section 6. That if any one or more sections or clauses of this Ordinance is adjudged to be unconstitutional or invalid, such judgment shall not affect, impair or invalidate the remaining provisions of this Ordinance and the remaining provisions of the Ordinance shall be interpreted as if the offending section or clause never existed. Section 7. That this Ordinance shall become effective from and after its passage with rates authorized by attached Tariffs to be effective for bills rendered on or after September 1, 2011. 1327084/Atmos Mid-Tex RRM-4 Ordinance 3 Section 8. That a copy of this Ordinance shall be sent to Atmos Mid-Tex, care of David Park, Vice President Rates and Regulatory Affairs, at Atmos Energy Corporation, 5420 LBJ Freeway, Suite 1862, Dallas, Texas 75240, and to Geoffrey Gay, General Counsel to ACSC, at Lloyd Gosselink Rochelle & Townsend, P.C., P.O. Box 1725, Austin, Texas 78767-1725. PASSED AND APPROVED this __________ day of ___________________, 2011. _________________________________ Douglas N. Stover, Mayor ATTEST: __________________________________ City Secretary APPROVED AS TO FORM: ___________________________________ City Attorney 1327084/Atmos Mid-Tex RRM-4 Ordinance 4 WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: Engineering August 23, 2011 12/C ✔ CONTRACT/BID or PROPOSAL Consider approval of a contract with Time Warner Cable in the amount of $120,453.00 for the burial of utilities in Old Town; as provided for in the CIP funds; and authorizing the City Manager to sign and execute necessary documents. This is a follow-up to the work session item taken on July 12, 2011 regarding the Old Town Aerial Crossings. Staff will be available to answer any questions. Funds are available in Street CIP for this contract. Staff recommends approval of this contract. Contract Time Warner Old Town-1 AR 1 MEMORANDUM TO: Mayor and City Council VIA: Kenneth M. Griffin, P.E., Director of Engineering/Public Works FROM: Keith R. Marvin, P.E., Project Engineer DATE: August 23, 2011 RE: Consider approval of a contract with Time Warner Cable in the amount of $120,453.00 for the burial of utilities in Old Town; as provided for in the CIP funds; and authorizing the City Manager to sign and execute necessary documents. On July 12, 2011 city staff brought forward a work session item for discussion on the burial of certain overhead utilities within the Old Town Coppell area. Working with the guidance we received during that meeting we negotiated this contract with Time Warner Cable for burial of all of their overhead facilities between Mitchell and Freeport. The estimated price for this burial is $120,453.00. All work associated with this burial will be done by Time Warner Cable, or their contractor. The location of the lines to be buried are identified on the included exhibit. This work is being done to enhance the appearance of the Old Town area. This will tie in with the necessary relocation of utilities as we move closer to beginning construction in the area. We are continuing to work with Oncor to negotiate a contract to bury their service line crossings as well. In the event the value of that contract exceeds the approval limit of the City Manager, we will bring an agenda item next meeting for approval as well. We recommend approval of this contract in the amount of $120,453.00 with Time Warner Cable for burial of utilities in the Old Town area. Staff will be available to answer any questions at the Council meeting. S:\CAD\In_Design\ST10-02 OLD COPPELL\dwg\OLD COPPELL DEV.dwg \ST10-02 AERIAL Aerial Crossing Burial Old Town Coppell City of Coppell Project ST10-02 Created in CIVIL3D 1 INCH = 1 MILE 0 1/2 11/2 S COPPELL RDmitchell sts coppell rdloch lnw bethel rd 1.Oncor Service Drop - $6,500 2.City Electrician - $800 Oncor Power 1.Oncor service drop to two houses - $6,500 2.City Electrician - $2,050 Oncor Power 1.Oncor Distribution - $40,000 2.Time Warner Cable - Part of $120,453 3.Verizon - to be removed as part of relocation Time Warner Cable Verizon 1.Oncor service drop to deli - $7,000 2.Time Warner Cable - Part of $120,453 3.Verizon - to be removed as part of relocation 4.City Electrician - $400 1.Oncor service drop - $6,500 2.City Electrician - $1,000 Oncor Power Time Warner Cable Verizon Oncor Power 1.Oncor service drop - $6,500 2.City Electrician - $400 Oncor Power Oncor Time Warner Cable 1.Oncor Distribution - $38,000 2.Time Warner Cable - Part of $120,453 Oncor Power 1.Oncor service to Farmers Market - To Be Removed Oncor Power 1.Oncor Distribution - $35,000 2.Time Warner Cable - Part of $120,453 Oncor Power Time Warner Cable 1.Oncor Distribution - $15,000 2.Time Warner Cable - Part of $120,453 Time Warner Cable Oncor Power 620 LOCH LN 416 W Bethel Rd 701 Coppell Rd 709 Coppell Rd 713 Coppell Rd 420 W Bethel Rd440 W Bethel Rd 446 W Bethel Rd 449 W Bethel Rd 456 W Bethel Rd460 W Bethel Rd 461 W Bethel Rd509 W Bethel Rd 512 W Bethel Rd 516 W Bethel Rd 540 W Bethel Rd544 W Bethel Rd 417 W Bethel Rd 708 Coppell Rd Time Warner Cable Time Warner Cable Time Warner Cable DALLAS COUNTY, TEXAS CITY OF COPPELL 11 MAINTENANCE CONSTRUCTION RELO AGREEMENT TIME WARNER NY CABLE LLC Project: City of Coppell, Bethel Road Relo C2011-048 This Maintenance Construction Relo Agreement (this, "Agreement") is made and entered into this 29th day of August, 2011 (the "Effective Date") by and between Time Warner NY Cable LLC., d/b/a Time Warner Cable (the "Company"), a Delaware limited liability company and its affiliates, with an office at 1565 Chenault St., Dallas, Texas, 75228; and City of Coppell (the "Party") and its affiliates with an office at 255 Parkway Blvd, Coppell, Texas. 75019. The "Company" and the "Party" ("Party) referred to individually) hereinafter will sometimes be referred to collectively as the "Parties." This Agreement is in response to a request from the Party (named above) to Time Warner Cable to relocate CATV utilities. The contact for the Party is Keith Marvin, City of Coppell, P.E., Civil Engineer, City of Coppell; and the contact for the Company is David Cheney, Time Warner Cable, Construction Supervisor. Following is the project description for the work to be performed by Time Warner Cable: Time Warner Cable will relocate aerial plant to underground; the project is located along Bethel Road from just east of South Coppell Road to Freeport Parkway, Coppell, Texas. The cost for this work is estimated at: $120,453.00 The fully executed agreement authorizes the work for the Party. You must return this signed agreement, before your work will be scheduled. If you agree to these terms, please sign below and return one signed agreement to Time Warner Cable, the mailing address and contact information is listed at bottom of page 3 of this agreement. Please retain one signed agreement for your records. This actual cost will be billed to you upon completion of the work. Your reference number and invoice number is C2011-048; this number is to be referenced on your check. By signing below, you warrant that you are authorized to bind the company or entity to the terms of this agreement. Upon receipt of your signed agreement, your work order will be released to our Construction Department for scheduling. Time Warner Cable Inc., through its North Texas Region, d/b/a Time Warner Cable, shall not be responsible to the extent its performance is delayed or prevented due to causes beyond its control, including but not limited to acts of God or the public enemy, terrorism, civil commotion, embargo, acts of government, any law, order, ordinance, regulation, or requirement of any government, fires, explosions, weather, quarantine, strikes, labor disputes, lockouts, and other causes beyond the reasonable control of Time Warner Cable. Page 1 of3 MAINTENANCE CONSTRUCTION RELO AGREEMENT TIME WARNER NY CABLE LLC Project: City of Coppell, Bethel Road Relo C2011-048 Please be advised that the price quoted in this agreement is only valid for sixty (60) days from effective date of this agreement. If this work request is cancelled after you have signed the agreement, you will be billed for any Engineering and Construction cost incurred after the date of signature that may include the cost to place and/or remove facilities. If we do not receive this signed agreement from you within fifteen (15) days from the effective date on agreement, we will assume that you do not want the work to be undertaken and the project will be cancelled. Should you have any questions or concerns regarding agreement terms, please contact Annette Eitt at 214-320-7415 or via email atannette.eitt@twcable.com. IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their respective duly authorized representatives. TIME WARNER NY CABLE LLC North Texas Region d/b/a Time Warner Cable 1565 Chenault St. Dallas, TX 75228 . Director of Construction CC: David Cheney, Construction Supervisor Obligatory Planner / Engineer Page 2 of3 ------------------------ MAINTENANCE CONSTRUCTION RELO AGREEMENT TIME WARNER NY CABLE LLC Project: City of Coppell, Bethel Road Relo C2011-048 City of Coppell Attn: Keith Marvin, P.E. 255 Parkway Blvd. Coppell, TX 75019 I agree to the terms of this agreement: Accepted (Signature): _________________ Print Name & Title: City or Business Name: Billing Address: City/State/Zip: ___________________ Telephone #: ____________________ Date: ********************* Time Warner Cable Mailing Address & Contact Information: Time Warner Cable Attn: Annette Eitt/Construction Department 1565 Chenault St. Dallas, TX 75228 (office phone) 214-320-7415 (email)annette.eitt@twcable.com Page 3 of3 WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: Finance August 23, 2011 13 ✔ PUBLIC HEARING To receive public comment concerning the proposed 2011-2012 Municipal Budget. Pursuant to the City Charter, a public hearing will be conducted by the City Council of the City of Coppell, Texas, to receive public comment concerning the proposed 2011-2012 Municipal Budget. At this hearing, taxpayers must have the opportunity to express their views on the proposed budget. $01PHBudget-1AR NOTICE OF PUBLIC HEARING PROPOSED 2011-2012 MUNICIPAL BUDGET A PUBLIC HEARING will be conducted by the City Council of the City of Coppell, Texas, to receive public comment concerning the Proposed 2011-2012 Municipal Budget. The Public Hearing will be held on August 23, 2011 at 7:30 p.m. in the Council Chambers at the City Hall, 255 Parkway Boulevard, Coppell, Texas 75019. A copy of the Proposed Budget will be on file for public view in the office of the City Secretary at City Hall, at the William T. Coz by Public Library, 177 N. Heartz Road, Coppell, Texas 75019 and on the City’s website. PUBLIC NOTICE STATEMENT FOR ADA COMPLIANCE The City of Coppell acknowledges its responsibility to comply with the Americans With Disabilities Act of 1990. Thus, in order to assist individuals with disabilities who require special services (i.e. sign interpretative services, alternative audio/visual devices and amanuenses) for participation in or access to the City of Coppell sponsored public programs, services and/or meetings, the City requests that individuals make requests for these services forty-eight (48) hours ahead of the scheduled program, service and/or meeting. To make arrangements, contact Vivyon V. Bowman, ADA. WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: Finance August 23, 2011 14 ✔ PROCEDURAL Consider approval of revisions to the written Fund Balance Policy of the City of Coppell. See attached memorandum. Staff recommends approval. $FundBalancPolicy-1AR Memorandum To: Mayor and City Council From: Jennifer Miller, Director of Finance Date: August 23, 2011 Reference: Consider approval of revisions to the written Fund Balance Policy of the City of Coppell. Financial policies provide the basic framework for the fiscal management of the City. The policies are intended to assist the City Council and City staff in evaluating current activities and proposals for future programs. Fund Balance policies are written guidelines that document sound financial management principles that will provide a stable financial base for the City. A fund balance policy improves the quality of decisions, identifies policy goals, and demonstrates a commitment to long-term financial planning, including a multi-year capital plan. Adherence to a fund balance policy signals to rating agencies and the capital markets that a government is well managed and should meet its obligations in a timely manner. Advantages: Mitigates current and future risks (budgeted revenue shortfalls and increased budgeted expenditure costs) Promote stability and continuity Provides flexibility Provides liquidity (when resources become available versus when the expenditure is incurred) Provides time to correct revenue and expenditure fluctuations Provides funds for unanticipated expenditures Provides for extraordinary one-time expenditures Promotes long term and strategic thinking Provides staff with a framework to work from and assures Council that any proposal brought forward by staff meets the policy guidelines Assures continuity in financial operations whether there is a change in council or management Reference: Consider approval of revisions to the written Fund Balance Policy of the City of Coppell, Page 2 The Governmental Accounting Standards Board passed GASB 54 in February 2009, effective for fiscal years ending after June 15, 2011. It had two primary purposes: 1) To provide new fund balance reporting classifications and 2) To redefine governmental fund types - primarily special revenue funds. GASB 54 eliminates the current reporting of fund balance as reserved, designated and unreserved and has replaced those terms with five new classifications: 1) Non Spendable, 2) Restricted, 3) Committed, 4) Assigned, and 5) Unassigned. It also provides for an order of spend down, should more than one category be available, for an expenditure. No changes are being made to funding levels or percentages, how fund balance will be monitored and reported or to how fund balance will be replenished. The only changes that are being made are those regarding the classifications of fund balance as defined by GASB 54. City of Coppell, Texas Fund Balance Policy 1. Purpose The purpose of this policy is to establish a key element of the financial stability of the City by setting guidelines and parameters for fund balance of the various funds used by the City of Coppell. Unassigned fund balance is an important measure of economic stability. It is essential that the City maintain adequate levels of unassigned fund balance to mitigate financial risk that can occur from unforeseen revenue fluctuations, unanticipated expenditures, and similar circumstances. Advantages of a fund balance policy are as follows: Enhances the quality of decisions by imposing order and discipline Promotes consistency and continuity in decision making Demonstrates a commitment to long term financial planning objectives 2. Definitions Fund Equity – A fund’s equity is generally the difference between its assets and its liabilities. Fund Balance – An accounting distinction is made between the portions of fund equity that are spendable and nonspendable. These are broken up into five categories: 1. Nonspendable Fund Balance – includes amounts that are not in spendable form or are required to be maintained intact. 2. Restricted Fund Balance – includes amounts that can be spent only for the specific purposes stipulated by external resource providers either constitutionally or through enabling legislation. 3. Committed Fund Balance – includes amounts that can be used only for the specific purposes determined by a formal action of the government’s highest level of decision making authority. Commitments may be changed or lifted only by the government taking the same formal action that imposed the constraint originally. 4. Assigned Fund Balance – comprises amounts intended to be used by the government for specific purposes. Intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority. In governmental funds other than the general fund, assigned fund balance represents the amount that is not restricted o r committed. This indicates that the resources in other governmental funds are, at a minimum, intended to be used for the purpose of that fund. 5. Unassigned Fund Balance – is the residual classification of the general fund and includes all amounts not contained in other classifications. Unassigned amounts are technically available for any purpose. 3. Policy Statement Committed Fund Balance The City Council is the City’s highest level of decision making authority and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is an ordinance or resolution approved by the Council at the City’s Council meeting. The ordinance or resolution must either be approved or rescinded, as applicable, prior to the last day of the fiscal year for which the commitment is made. The amount subject to the constraint may be determined in the subsequent period. Assigned Fund Balance The City Council has authorized the City Manager or Director of Finance as the officials authoriz ed to assign fund balance to a specific purpose as approved by this fund balance policy. Unassigned Fund Balance The unassigned fund balance for the General Fund of the City of Coppell will be maintained at a level sufficient to provide the required resources to meet operating cost needs, to allow for unforeseen needs of an emergency nature, and to permit orderly adjustment to changes resulting from fluctuation of revenue sources. 4. Order of Expenditure of Funds When multiple categories of fund balance are available for expenditure, the City will start with the most restricted category and spend those funds first before moving down to the next category with available funds. 5. Funding Levels The City establishes the following funding levels concerning fund balances in the various funds used by the City of Coppell: The annual budget shall be presented to Council, with each fund reflecting minimum ending funds balances as follows: General Fund 10% of the next years budgeted expenditures as required by City Charter, plus 60 days of expenditures (approximately 15%) Debt Service Funds An amount not to exceed one (1) month of next years budget for principal and interest Water and Sewer Fund 90 days of expenditures Self Insurance Fund The sum of the six largest months of claims for the most recent 24 month period or six months of average monthly claims since inception, whichever results in the lower balance. Cemetery Fund 60 days of expenditures Fund balances, which exceed the minimum levels established for each of the funds, may be appropriated as shown in the Financial Projections section of the City of Coppell’s Five Year Plan. Fund balances, which exceed the minimum levels established for each of the funds, may be appropriated for non-recurring capital projects or programs. The Council recognizes that any such funds should be appropriated for non-recurring expenditures as they represent prior year surpluses that may or may not materialize in subsequent fiscal years. The City of Coppell will exercise diligence in avoiding the appropriation of fund balance for recurring operating expenditures. In the event fund balance is appropriated for recurring operating expenditures to meet the needs of the community, the budget document shall include an explanation of the circumstances requiring the appropriation and the methods to be used to fund this operating expenditure in the future. 6. Monitoring and Reporting The City Manager and the Director of Finance shall annually prepare a report documenting the status of the fund balances with this policy and present to the Council in conjunction with the presentation of the Comprehensive Annual Financial Report and also in conjunction with the development of the annual budget. 7. Replenishment Should the fund balances fall below the targeted level, the Council must approve and adopt a plan to restore the balance to the targeted level within two (2) years. If restoration can not be accomplished within such period without severe hardship, then the Council will establish a different but reasonable time period. WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: Finance August 23, 2011 15 ✔ ORDINANCE Consider approval of an Ordinance of the City of Coppell, Texas, approving the establishment of a special revenue fund for the proceeds received from the Rolling Oaks Memorial Center operations, and authorizing the Mayor to sign. See attached memorandum. Staff recommends approval. $SRFRollingOaks-1AR Memorandum To: Mayor and City Council From: Jennifer Miller, Director of Finance Date: August 23, 2011 Reference: Consider approval of an Ordinance establishing a special revenue fund for the Rolling Oaks Memorial Center. The Governmental Accounting Standards Board passed GASB 54 in February 2009, effective for fiscal years ending after June 15, 2011. It had two primary purposes: 1) To provide new fund balance reporting classifications and 2) To redefine governmental fund types - primarily special revenue funds. Special revenue funds are used to account for proceeds of 1) specific revenue sources, 2) restricted or committed, 3) restricted to expenditure for specified purposes. The use of a Special revenue Fund is required by the GASB codification only if it is legally mandated. After a review of all the Special Revenue Funds used by the City of Coppell, it was found that Rolling Oaks Memorial Center is the only one that did not have the legal mandate. The purpose of the agenda item is to provide the legal basis on which to continue using a Spe cial Revenue Fund for the Center’s operations. ORDINANCE NO. _______________ AN ORDINANCE OF THE CITY OF COPPELL, TEXAS, APPROVING THE ESTABLISHMENT OF A SPECIAL REVENUE FUND FOR THE PROCEEDS RECEIVED FROM THE ROLLING OAKS MEMORIAL CENTER OPERATONS, AND AUTHORIZING THE MAYOR TO SIGN. WHEREAS, the City of Coppell constructed and opened the Rolling Oaks Memorial Center in 2008 and 2009; and WHEREAS, the City Council deems it to be in the public interest to establish a special revenue fund for the proceeds received from cemetery lot sales, niche sales, and other services provided by the Rolling Oaks Memorial Center NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COPPELL, TEXAS: SECTION 1. There is hereby established a special revenue fund to be known as “Rolling Oaks Memorial Center Fund” which shall be maintained in the City’s financial records as such. All proceeds received from cemetery lot sales, niche sales, and other revenue as designated shall be deposited as collected into the Rolling Oaks Memorial Center Fund. SECTION 2. Money in such fund shall be invested according to the City’s Investment Policy, and the revenue received from such investments shall become part of the fund. SECTION 3. Proceeds generated by the Rolling Oaks Memorial Center shall be used only for operation of the Center. DULY PASSED and adopted by the City Council of the City of Coppell, Texas, on the ____ day of ________, 2011. APPROVED: ___________________________ MAYOR ATTEST: ___________________________ CITY SECRETARY APPROVED AS TO FORM: ____________________________________________ CITY ATTORNEY WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: ȱ City Manager's Office August 23, 2011 16 ✔ PUBLIC HEARING Consider approval of the designation of a reinvestment zone pursuant to Section 312.201 of the Property Redevelopment and Tax Abatement Act. The property to be considered for Reinvestment Zone designation is the property described as a portion of Block 2, Lot 2R-1 of the Park West Commerce Center Addition (34.572 acres) and located north of Airline Drive, west of Belt Line Road. The Public Hearing Notice was published in the Citizens Advocate on Friday, August 12, 2011. The public hearing is for the designation of a reinvestment zone for Nefab Companies, Inc. Staff recommends approval. !Nefab Public Hearing Date: August 12, 2011 From: Mindi Hurley, Economic Development Coordinator RE: Nefab Companies, Ind. – Public Hearing Nefab Companies, Inc. is currently located at 700 W. Bethel Rd. The business has outgrown the current location and will relocate to 204 Airline Drive for expansion purposes. Nefab will occupy 102,000 sq. ft. at the new location and will employ 35 people. At their April 2011 meeting, the Economic Development Committee unanimously recommended a 75% abatement of business personal property for a period of 5 years. A public hearing must be held to create a Reinvestment Zone for a tax abatement. Reinvestment Zone No. 65 will be created for Nefab Companies, Inc. 204 Airline Drive is described as a portion of Block 2, Lot 2R-1 of the Park West Commerce Center Addition (34.572 acres), which is located north of Airline Drive and west of Belt Line Road. The public hearing notice was published in the Citizens’ Advocate on Friday, August 12, 2011, as required by Chapter 312 of the Texas Property Code. The public hearing will be held on August 23, 2011 to determine if the improvements in the zone are feasible, practical and of benefit to the land. NOTICE OF PUBLIC HEARING OF DESIGNATION OF REINVESTMENT ZONE A PUBLIC HEARING will be conducted by the City Council of the City of Coppell, Texas, in the Council Chambers, Town Center, 255 Parkway Boulevard, Coppell, Texas on the 23rd day of August, 2011, at 7:30 P.M., to consider designation of the property described as a portion of Block 2, Lot 2R-1, Park West Commerce Center (34.572 acres), located north of Airline Dr., west of Belt Line Rd., Coppell, Texas, Nefab Companies Inc., as a Reinvestment Zone under Chapter 312 of the Texas Property Tax Code. The Council will seek to determine whether the improvements sought to be made in the zone are feasible and practical and will be a benefit to the land included in the zone and to the City after the expiration of a tax abatement agreement to be entered into pursuant to Section 312.204 of the Texas Property Tax Code. At the hearing, interested persons are entitled to speak and present evidence for or against the designation. Citizens Advocate August 12, 2011 PUBLIC NOTICE STATEMENT FOR ADA COMPLIANCE The City of Coppell acknowledges its responsibility to comply with the Americans With Disabilities Act of 1990. Thus, in order to assist individuals with disabilities who require special services (i.e., sign interpretative services, alternative audio/visual devices, and amanuenses) for participation in or access to the City of Coppell sponsored public programs, services and/or meetings, the City requests that individuals make requests for these services forty-eight (48) hours ahead of the scheduled program, service and/or meeting. To make arrangements, contact Vivyon V. Bowman, ADA Coordinator or other designated official at (972) 462-0022, or (TDD 1-800-RELAY, TX, 1-800-735-2989). WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: ȱ City Manager's Office August 23, 2011 17 ✔ ORDINANCE Consider approval of an Ordinance designating Nefab Companies, Inc., Reinvestment Zone No. 65, and authorizing the Mayor to sign. City Council is scheduled to conduct a Public Hearing regarding designation of the reinvestment zone on August 23, 2011. Reinvestment Zone No. 65 will be designated for Nefab Companies, Inc. for their business personal property abatement. The real property is owned by Teachers Insurance Annuity Association of America. Staff recommends approval. !Nefab Ordinance Date: August 23, 2011 From: Mindi Hurley, Economic Development Coordinator RE: Nefab Companies, Inc. - Ordinance Nefab Companies, Inc. is currently located at 700 W. Bethel Rd. The business has outgrown the current location and will relocate to 204 Airline Drive for expansion purposes. Nefab will occupy 102,000 sq. ft. at the new location and will employ 35 people. At their April 2011 meeting, the Economic Development Committee unanimously recommended a 75% abatement of business personal property for a period of 5 years. In order to grant a tax abatement for business personal property, a reinvestment zone must be created. The boundaries for Reinvestment Zone No. 65 are designated by this ordinance. The 34.572 acre tract of land included in this zone is located north of Airline Drive and west of Belt Line Road. The legal description for the property is a portion of Block 2, Lot 2R-1 of the Park West Commerce Center Addition. The real property is owned by Teachers Insurance Annuity Association of America, but the zone is being created for the business personal property abatement proposed for Nefab Companies, Inc. 1 AN ORDINANCE OF THE CITY OF COPPELL, TEXAS ORDINANCE NO. _________ AN ORDINANCE OF THE CITY OF COPPELL, TEXAS, DESIGNATING REINVESTMENT ZONE NO. 65 (NEFAB COMPANIES, INC.); PROVIDING ELIGIBILITY OF THE ZONE FOR COMMERCIAL- INDUSTRIAL TAX ABATEMENT; CONTAINING FINDINGS THAT THE AREA QUALIFIES TO BE DESIGNATED AS A REINVESTMENT ZONE AND THE IMPROVEMENTS SOUGHT ARE FEASIBLE AND PRACTICABLE AND OF BENEFIT TO THE LAND AND THE CITY; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A REPEALING CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Coppell, Texas, has caused notice to be published in a newspaper having general circulation in the City and has delivered such notice to the presiding officer of the governing body of each taxing unit that includes in its boundaries real property described herein; and WHEREAS, the City Council of the City of Coppell, Texas, has conducted a public hearing on the designation of the area described herein as a reinvestment zone; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COPPELL, DALLAS COUNTY, TEXAS, THAT: SECTION 1: The City Council of the City of Coppell, Texas, finds that the area described herein will, if designated as a reinvestment zone, be reasonably likely to contribute to the retention or expansion of primary employment, or to attract major investment in the zone that will be of benefit to the property and contribute to the economic development of the City. The City Council further finds that the improvements sought are feasible and practicable and would be of benefit to the land to be included in the zone and to the City after the expiration of a tax abatement agreement. SECTION 2. Pursuant to the provisions of Section 312.201 of the Texas Tax Code, the property described in Exhibit “A” attached hereto and made a part hereof for all purposes is hereby designated as a reinvestment zone and for identification is assigned the name “Reinvestment Zone No. 65 Nefab Companies, Inc.”. 2 SECTION 3. The property within Reinvestment Zone No. 65 is eligible for commercial- industrial tax abatement effective on January 1, 2011. SECTION 4. If any article, paragraph or subdivision, clause or provision of this ordinance shall be adjudged invalid or held unconstitutional, the same shall not affect the validity of this ordinance as a whole or any part or provision thereof, other than the part so decided to be invalid or unconstitutional. SECTION 5. All provisions of ordinances of the City of Coppell, Texas, in conflict with the provisions of this ordinance be, and the same are hereby, repealed, and all other provisions not in conflict with the provisions of this ordinance shall remain in full force and effect. SECTION 6. This ordinance shall take effect immediately from and after its passage, as the law and charter in such cases provide. DULY PASSED by the City Council of the City of Coppell, Texas, on the ______ day of ___________________, 2011. APPROVED: DOUGLAS N. STOVER, MAYOR ATTEST: CHRISTEL PETTINOS, CITY SECRETARY APPROVED AS TO FORM: CITY ATTORNEY (PGS:05-18-11:49335) EXHIBIT “A” LEGAL DESCRIPTION OF LAND A portion of Block 2, Lot 2R-1, Park West Commerce Center (34.572 acres). WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: ȱ City Manager's Office August 23, 2011 18 ✔ RESOLUTION Consider approval of a Resolution approving a Tax Abatement Agreement between the City of Coppell and Nefab Companies, Inc., and authorizing the Mayor to sign. City Council is scheduled to conduct a Public Hearing regarding the designation of the reinvestment zone on August 23, 2011. The Coppell Economic Development Committee unanimously recommended approval of this abatement agreement request at their April 2011 meeting. Nefab Companies, Inc. will be leasing approximately 102,000 square feet of space at 204 Airline Drive. The terms of this agreement will be a 75% abatement on business personal property for a period of 5 years. Staff recommends approval. !Nefab Resolution Date: August 23, 2011 From: Mindi Hurley, Economic Development Coordinator RE: Nefab Companies, Inc. - Resolution Nefab Companies, Inc. is currently located at 700 W. Bethel Rd. The business has outgrown the current location and will relocate to 204 Airline Drive for expansion purposes. Nefab will occupy 102,000 sq. ft. at the new location and will employ 35 people. Reinvestment Zone Number 65 will be created by ordinance on August 23, 2011. The resolution and abatement that coincide with Reinvestment Zone Number 65 grant Nefab Companies, Inc. a 5 year, 75% tax abatement on business personal property. 1 RESOLUTION NO. ________________ A RESOLUTION OF THE CITY OF COPPELL, TEXAS, APPROVING THE TERMS AND CONDITIONS OF A TAX ABATEMENT AGREEMENT BY AND BETWEEN THE CITY OF COPPELL, TEXAS AND NEFAB COMPANIES, INC.; AUTHORIZING ITS EXECUTION BY THE MAYOR; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council has been presented a proposed Tax Abatement Agreement by and between the City of Coppell, Texas and Nefab Companies, Inc., a copy of which is attached hereto and incorporated herein by reference; and WHEREAS, upon full review and consideration of the Agreement, and all matters related thereto, the City Council is of the opinion and finds that the terms and conditions thereof should be approved, and that the Mayor should be authorized to execute the Agreement on behalf of the City of Coppell, Texas; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COPPELL, TEXAS, THAT: SECTION 1. The Agreement attached hereto having been reviewed by the City Council of the City of Coppell, Texas, and found to be acceptable and in the best interest of the City and its citizens, be, and the same is hereby, in all things approved, and the Mayor is hereby authorized to execute the Agreement on behalf of the City of Coppell, Texas. SECTION 2. The Council finds that the improvements proposed to be built upon the Premises described in the Agreement will enhance the economic vitality of the community through a combination of new capital investment, increased sales tax revenues, and the creation of additional job opportunities. SECTION 3. The tax abatement to be granted by the Agreement will not include inventory, and supplies. SECTION 4. The improvements proposed for the Premises will accomplish the tax abatement guidelines of the City of Coppell, Texas. 2 SECTION 5. The City Manager delivered to the presiding officer of the governing body of each taxing unit in which the property subject to the Agreement is located, a written notice that the City of Coppell, Texas, intends to enter into the Agreement. The notice given by the City Manager included a copy of the Agreement approved by this Resolution. SECTION 6. This Resolution and the Tax Abatement Agreement are hereby approved by the affirmative vote of the majority of the members of the City Council of the City of Coppell, Texas, at a regularly scheduled meeting of the City Council. SECTION 7. This Resolution shall become effective immediately from and after its passage. DULY RESOLVED AND ADOPTED by the City Council of the City of Coppell, Texas, on this the ______ day of ________________, 2011. CITY OF COPPELL, TEXAS ___________________________________________ DOUGLAS N. STOVER, MAYOR ATTEST: ___________________________________________ CHRISTEL PETTINOS, CITY SECRETARY APPROVED AS TO FORM: CITY ATTORNEY (PGS:05-18-11:49334) 3 EXHIBIT “A” (copy of Tax Abatement Agreement) Page 1 Tax Abatement Agreement City of Coppell and Nefab Companies, Inc. (49328) STATE OF TEXAS § § TAX ABATEMENT AGREEMENT COUNTY OF DALLAS § This Tax Abatement Agreement (the “Agreement”) is entered into by and between the City of Coppell, Texas (the “City”), and Nefab Companies, Inc. (the “Lessee”), acting by and through their authorized representatives. W I T N E S S E T H: WHEREAS, the City Council of the City of Coppell, Texas (the “City”), passed an Ordinance (the “Ordinance”) establishing Tax Abatement Reinvestment Zone No. 65 (the “Zone”) for the real property described in Exhibit “A” (the “Land”), for commercial/industrial tax abatement, as authorized by the Property Redevelopment and Tax Abatement Act, Chapter 312 of the Texas Tax Code, as amended (the “Tax Code”); and WHEREAS, the City has adopted guidelines for tax abatement (the “Tax Abatement Guidelines”); and WHEREAS, the Tax Abatement Guidelines contain appropriate guidelines and criteria governing tax abatement agreements to be entered into by the City as contemplated by the Tax Code; and WHEREAS, the City has adopted a resolution stating that it elects to be eligible to participate in tax abatement; and WHEREAS, in order to maintain and enhance the corporate commercial and industrial economic and employment base of the Coppell area, it is in the best interests of the taxpayers for the City to enter into this Agreement in accordance with said Ordinance, the Tax Abatement Guidelines and the Tax Code; and WHEREAS, Lessee has or intends to lease approximately 102,000 square feet of office and warehouse/distribution space at 204 Airline Drive, Coppell, Texas (hereinafter defined as the “Leased Premises”), to serve as an industrial crating and packaging facility, for a period of at least five (5) years (hereinafter defined as the “Lease”), and intends to locate and maintain Tangible Personal Property (hereinafter defined) at the Leased Premises; and WHEREAS, the development efforts of the Lessee described herein will create permanent new jobs in the City; and WHEREAS, the City Council finds that the contemplated use of the Improvements, and the other terms hereof are consistent with encouraging development of the Zone in accordance with the purposes for its creation and/or in compliance with the Tax Abatement Guidelines, the Ordinance adopted by the City, the Tax Code and all other applicable laws; and Page 2 Tax Abatement Agreement City of Coppell and Nefab Companies, Inc. (49328) WHEREAS, the City Council finds that the Improvements (hereinafter defined) sought are feasible and practicable and would be of benefit to the Land to be included in the Zone and to the City after expiration of this Agreement; and WHEREAS, a copy of this Agreement has been furnished, in the manner prescribed by the Tax Code, to the presiding officers of the governing bodies of each of the taxing units in which the Property is located; and WHEREAS, the City desires to enter into an agreement with the Lessee for the abatement of taxes pursuant to Chapter 312 of the Tax Code as amended; NOW, THEREFORE, in consideration of the mutual benefits and promises contained herein and for good and other valuable consideration, the adequacy and receipt of which is hereby acknowledged, including the expansion of primary employment, the attraction of major investment in the Zone, which contributes to the economic development of the City and the enhancement of the tax base in the City, the parties agree as follows: Article I Definitions Wherever used in this Agreement, the following terms shall have the meanings ascribed to them: “Bankruptcy or Insolvency” shall mean the dissolution or termination of a party’s existence as a going business, insolvency, appointment of receiver for any part of a party’s property and such appointment is not terminated within ninety (90) days after such appointment is initially made, any general assignment for the benefit of creditors, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against such party, and such proceeding is not dismissed within ninety (90) days after the filing thereof. “City” shall mean the City of Coppell, Texas. “Effective Date” shall mean the last date of execution of this Agreement. “First Year of Abatement” shall mean January 1, 2012. “Force Majeure” shall mean any contingency or cause beyond the reasonable control of a party including, without limitation, acts of God or the public enemy, war, riot, civil commotion, insurrection, adverse weather, government or de facto governmental action (unless caused by acts or omissions of such party), fires, explosions or floods, strikes, slowdowns or work stoppages. “Freeport Goods” shall have the same meaning as assigned by Section 11.251 of the Tax Code and Article VIII, Section 1-j of the Texas Constitution and located on the Property. Freeport Goods does not include “Goods in Transit” as defined by Tax Code, Section 11.253. Page 3 Tax Abatement Agreement City of Coppell and Nefab Companies, Inc. (49328) “Goods in Transit” shall have the same meaning assigned by Tax Code, Section 11.253. “Improvements” shall mean the existing building on the Land located at 204 Airline Drive, Coppell, Texas. “Land” means the real property described in Exhibit “A”. “Lease” shall mean the lease of the Leased Premises by Lessee for a period of not less than five (5) years commencing on the Lease Inception Date. “Lease Inception Date” shall mean the date the term of the Lease commences but not later than December 31, 2011. “Leased Premises” shall mean approximately 102,000 square feet of office and warehouse/distribution space in the Improvements. “Lessee” shall mean Nefab Companies, Inc. “Premises” shall mean collectively, the Land and Improvements, but excluding the Tangible Personal Property. “Tangible Personal Property” shall mean tangible personal property, equipment and fixtures (but excluding supplies, inventory, Freeport Goods and Goods in Transit) owned or leased by Lessee that is added to the Leased Premises subsequent to the execution of this Agreement. “Taxable Value” means the appraised value as certified by the Appraisal District as of January 1 of a given year. Article II General Provisions 2.1 The Lessee has or intends to enter into the Lease. The Lessee intends to locate and maintain Tangible Personal Property at the Leased Premises. 2.2 The Premises are not in an improvement project financed by tax increment bonds. 2.3 This Agreement is entered into subject to the rights of the holders of outstanding bonds of the City. 2.4 The Premises and Tangible Personal Property are not owned or leased by any member of the Coppell City Council or any member of the Coppell Planning and Zoning Commission, or any member of the governing body of any taxing units joining in or adopting this Agreement. Page 4 Tax Abatement Agreement City of Coppell and Nefab Companies, Inc. (49328) 2.5 Lessee shall before May 1, of each calendar year that the Agreement is in effect, certify in writing to the City that it is in compliance with each term of this Agreement. 2.6 The Land and the Improvements constructed thereon at all times shall be used in the manner (i) that is consistent with the City’s Comprehensive Zoning Ordinance, as amended, and (ii) that, during the period taxes are abated hereunder, is consistent with the general purposes of encouraging development or redevelopment within the Zone. Article III Tax Abatement Authorized 3.1 This Agreement is authorized by the Tax Code and in accordance with the City Tax Abatement Guidelines, and approved by resolution of the City Council. 3.2 Subject to the terms and conditions of this Agreement, the City hereby grants Lessee an abatement of seventy-five percent (75%) of the Taxable Value of the Tangible Personal Property for a period of five (5) consecutive years beginning with the First Year of Tax Abatement. The actual percentage of Taxable Value of the Tangible Personal Property subject to abatement for each year this Agreement is in effect will apply only to the Tangible Personal Property that is added to the Improvements. 3.3 The period of tax abatement herein authorized shall be for a period of five (5) consecutive years beginning with the First Year of Tax Abatement. 3.4 During the period of tax abatement herein authorized, Lessee shall be subject to all taxation not abated, including but not limited to, sales tax and ad valorem taxation on land, inventory and supplies. 3.5 The Lessee agrees to locate and maintain Tangible Personal Property at the Leased Premises with a Taxable Value of at least $1.7 Million Dollars ($1,700,000.00) as of the First Year of Abatement and as of January 1 of each calendar year thereafter during the term of this Agreement. 3.6 The term of this Agreement shall begin on the Effective Date and continue until March 1 of the calendar year following the sixth (6th) anniversary date of the First Year of Abatement, unless sooner terminated as provided herein. Article IV Improvements 4.1 Nothing in this Agreement obligates the Lessee to enter into the Lease and/or occupy the Leased Premises, but said action is a condition precedent to tax abatement pursuant to this Agreement. Page 5 Tax Abatement Agreement City of Coppell and Nefab Companies, Inc. (49328) 4.2 As a condition precedent to the initiation of the Lessee’s tax abatement pursuant to this Agreement, Lessee agrees to enter into the Lease on or before December 31, 2011. Lessee agrees and covenants to continuously lease and occupy the Leased Premises for a period of at least five (5) years commencing on the Lease Inception Date. 4.3 Lessee agrees to maintain the Leased Premises during the term of this Agreement in accordance with all applicable state and local laws, codes, and regulations. 4.4 The City, its agents and employees shall have the right of access to the Leased Premises during Lessee’s occupancy of the Leased Premises to inspect the Leased Premises at reasonable times and with reasonable notice to Lessee, and in accordance with Lessee’s visitor access and security policies, in order to insure that the use of the Leased Premises are in accordance with this Agreement and all applicable state and local laws and regulations (or valid waiver thereof). Article V Default: Recapture of Tax Revenue 5.1 In the event Lessee: (i) fails to occupy the Leased Premises in accordance with this Agreement or in accordance with applicable State or local laws, codes or regulations; (ii) has delinquent ad valorem or sales taxes owed to the City (provided Lessee retains its right to timely and properly protest such taxes or assessment); (iii) suffers an event of “Bankruptcy or Insolvency”; or (iv) breaches any of the terms and conditions of this Agreement which is not otherwise cured within the applicable cure period, then Lessee after the expiration of the notice and cure periods described below, shall be in default of this Agreement. As liquidated damages in the event of such default, the Lessee shall, within thirty (30) days after termination, pay to the City all taxes which otherwise would have been paid by the Lessee to the City without benefit of a tax abatement for the Tangible Personal Property, with interest at the statutory rate for delinquent taxes as determined by Section 33.01 of the Tax Code, as amended, but without penalty. The parties acknowledge that actual damages in the event of default termination would be speculative and difficult to determine. The parties further agree that any abated tax, including interest as a result of this Agreement, shall be recoverable against the Lessee, its successors and assigns and shall constitute a tax lien against the Tangible Personal Property, and shall become due, owing and shall be paid to the City within thirty (30) days after termination. 5.2 Upon breach by Lessee of any obligations under this Agreement, the City shall notify the Lessee in writing, who shall have thirty (30) days from receipt of the notice in which to cure any such default. If the default cannot reasonably be cured within a thirty (30) day period, and the Lessee has diligently pursued such remedies as shall be reasonably necessary to cure such default, then the City may extend the period in which the default must be cured. 5.3 If the Lessee fails to cure the default within the time provided as specified above or, as such time period may be extended, then the City at its sole option shall have the right to terminate this Agreement, by written notice to the Lessee. Page 6 Tax Abatement Agreement City of Coppell and Nefab Companies, Inc. (49328) 5.4 Upon termination of this Agreement by City, all tax abated as a result of this Agreement, shall become a debt to the City as liquidated damages, as set forth in Section 5.1 above, and shall become due and payable not later than thirty (30) days after a notice of termination is provided. The City shall have all remedies for the collection of the abated tax provided generally in the Tax Code for the collection of delinquent property tax. The City at its sole discretion has the option to provide a repayment schedule. The computation of the abated tax for the purposes of the Agreement shall be based upon the full Taxable Value of the Tangible Personal Property, without tax abatement for the years in which tax abatement hereunder was received by the Lessee, as determined by the Appraisal District, multiplied by the tax rate of the years in question, as calculated by the City Tax Assessor-Collector. The liquidated damages shall incur penalties as provided for delinquent taxes and shall commence to accrue after expiration of the thirty (30) day payment period. Article VI Annual Application for Tax Exemption It shall be the responsibility of the Lessee pursuant to the Tax Code, to file an annual exemption application form with the Chief Appraiser of the Appraisal District in which the eligible taxable property has situs. A copy of the exemption application shall be submitted to the City upon request. Article VII Annual Rendition The Lessee shall annually render the value of the Tangible Personal Property to the Appraisal District and provide a copy of the same to the City upon written request. Article VIII Miscellaneous 8.1 Notice. Any notice required or permitted to be delivered hereunder shall be deemed received three (3) days thereafter sent by United States Mail, postage prepaid, certified mail, return receipt requested, addressed to the party at the address set forth below or on the day actually received as sent by courier or otherwise hand delivered: If intended for Lessee, to: Attn: Wade Mullis, CFO Nefab Companies, Inc. 204 Airline Drive Ste 100 Coppell TX 75019 Telephone: 469-464-5330 email: wade.mullis@nefab.com Page 7 Tax Abatement Agreement City of Coppell and Nefab Companies, Inc. (49328) If intended for City, to: Attn: City Manager City of Coppell, Texas P. O. Box 478 Coppell, Texas 75019 Telephone: 972.304.3677 Facsimile: 972.304.3673 With a copy to: Peter G. Smith Nichols, Jackson, Dillard, Hager & Smith, L.L.P. 1800 Lincoln Plaza 500 N. Akard Dallas, Texas 75201 Telephone: 214.965.9900 Facsimile: 214.965.0010 Email: psmith@njdhs.com 8.2 Authorization. This Agreement was authorized by resolution of the City Council approved by its Council meeting authorizing the Mayor to execute this Agreement on behalf of the City. 8.3 Severability. In the event any section, subsection, paragraph, sentence, phrase or word herein is held invalid, illegal or unconstitutional, the balance of this Agreement shall stand, shall be enforceable and shall be read as if the parties intended at all times to delete said invalid section, subsection, paragraph, sentence, phrase or word. 8.4 Governing Law. This Agreement shall be governed by the laws of the State of Texas without regard to any conflict of law rules. Exclusive venue for any action under this Agreement shall be the State District Court of Dallas County, Texas. The parties agree to submit to the personal and subject matter jurisdiction of said court. 8.5 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and constitute one and the same instrument. 8.6 Entire Agreement. This Agreement embodies the complete agreement of the parties hereto, superseding all oral or written previous and contemporary agreements between the parties and relating to the matters in this Agreement, and except as otherwise provided herein cannot be modified without written agreement of the parties to be attached to and made a part of this Agreement. 8.7 Recitals. The determinations recited and declared in the preambles to this Agreement are hereby incorporated herein as part of this Agreement. Page 8 Tax Abatement Agreement City of Coppell and Nefab Companies, Inc. (49328) 8.8 Exhibits. All exhibits to this Agreement are incorporated herein by reference for all purposes wherever reference is made to the same. 8.9 Assignment. This Agreement shall be binding on and inure to the benefit of the parties to it and their respective heirs, executors, administrators, legal representatives, successors, and permitted assigns. This Agreement may not be assigned without the prior written consent of the City Manager. 8.10 Conditions Precedent. This Agreement is conditioned on and subject to the following: (i) the Lessee entering into the Lease on or before December 31, 2011; (ii) Lessee providing a fully executed copy of the Lease to the City. 8.11 Employment of Undocumented Workers. During the term of this Agreement, the Lessee agrees not to knowingly employ any undocumented workers and if convicted, by a final non-appealable conviction, of a violation under 8 U.S.C. Section 1324a (f), the Lessee shall repay the taxes abated herein as of the date of such final non-appealable conviction within 120 business days after the date the Lessee is notified by the City of such final non-appealable conviction, plus interest at the rate of 6% compounded annually from the date of such final non- appealable conviction until paid. 8.12 Right of Offset. The City may at its option, offset any amounts due and payable under this Agreement against any debt (including taxes) lawfully due to the City from the Lessee, regardless of whether the amount due arises pursuant to the terms of this Agreement or otherwise and regardless of whether or not the debt due the City has been reduced to judgment by a court. (Signature Page to Follow) Page 9 Tax Abatement Agreement City of Coppell and Nefab Companies, Inc. (49328) EXECUTED in duplicate originals the ____ day of _______________, 2011. CITY OF COPPELL, TEXAS By: ______________________________________ Douglas N. Stover, Mayor Attest: By: _______________________________________ Christel Pettinos, City Secretary Agreed as to Form: By:_______________________________ City Attorney EXECUTED in duplicate originals the ____ day of _______________, 2011. NEFAB COMPANIES, INC., By:_______________________________________ Name: Wade Mullis Title: CFO Page 1 Exhibit “A” to Tax Abatement Agreement City of Coppell and Nefab Companies, Inc. (49328) EXHIBIT “A” Legal Description of the Land A portion of Block 2, Lot 2R-1 of the Park West Commerce Center (34.572 acres). AGENDA REQUEST FORM DATE: August 23, 2011 ITEM #: 19 CITY MANAGER'S REPORT A. Project Update and Future Agendas. Agenda Request Form - Revised 09/027 Document Name: %manrep DATE: August 23, 2011 ITEM #: 20 AGENDA REQUEST FORM MAYOR AND COUNCIL REPORTS A. Report by Mayor Stover regarding the Summer Music Series in August. B. Report by Councilmember Hunt regarding the Congressional Update by Congressman Marchant. Agenda Request Form - Revised 09/02 Document Name: %mayorreport AGENDA REQUEST FORM DATE: August 23, 2011 ITEM #: 21 PUBLIC SERVICE ANNOUNCEMENTS CONCERNING ITEMS OF COMMUNITY INTEREST AND NO COUNCIL ACTION OR DELIBERATION IS PERMITTED Agenda Request Form - Revised 09/02 Document Name: %mayorreport AGENDA REQUEST FORM DATE: August 23, 2011 ITEM #: 22 COUNCIL COMMITTEE REPORTS A. Carrollton/Farmers Branch ISD/Lewisville ISD – Tunnell. B. Coppell ISD – Mahalik and Hinojosa-Flores. C. Coppell Seniors – Brancheau and Faught. D. Dallas Regional Mobility Coalition –Hunt. E. International Council for Local Environmental Initiatives (ICLEI) –Brancheau F. Metrocrest Hospital Authority –Tunnell. G. Metrocrest Medical Foundation – Mahalik. H. Metrocrest Medical Services – Hinojosa-Flores. I. Metrocrest Social Services – Franklin. J. North Texas Council of Governments – Tunnell. K. North Texas Commission – Hunt. L. Senior Adult Services – Franklin. Agenda Request Form - Revised 11/09 Document Name: %ccommreport AGENDA REQUEST FORM DATE: August 23, 2011 ITEM #: 23 NECESSARY ACTION RESULTING FROM EXECUTIVE SESSION Agenda Request Form - Revised 09/02 Document Name: %necessaryactionexec CERTIFICATE OF AGENDA ITEM SUBMISSION Council Meeting Date: August 23, 2011 Department Submissions: Item No. 7 was placed on the Agenda for the above-referenced City Council meeting by the Fire Department. I have reviewed the Agenda Request (and any backup if applicable) and hereby submit this item to the City Council for consideration. ____________________ Fire Department Item No. 12/C was placed on the Agenda for the above-referenced City Council meeting by the Engineering Department. I have reviewed the Agenda Request (and any backup if applicable) and hereby submit this item to the City Council for consideration. ____________________ Engineering Department Financial Review: I certify that I have reviewed all the items submitted for consideration on the Agenda for the above-referenced City Council Meeting and have inserted any financial comments where appropriate. ____________________ Finance Department City Manager Review: I certify that I have reviewed the complete Agenda and Packet for the above-referenced City Council Meeting and hereby submit the same to the City Council for consideration. ____________________ City Manager (or Deputy City Manager)